February 17, 2010

A tax on radio tunes could soon limit your listening options.

Local radio stations are fighting a proposed performance tax. The tax would make stations pay to play songs. Some artists and recording labels are lobbying congress to pass the bill as the industry struggles from the recession. But stations say they would simply have to stop playing as many songs.

"The Buzz" Program Director Dusty Hayes has been in radio for 30 years, but he says a radio tax could end his career.

"To see it all go away because of a silly bill in congress, is gonna hurt," said Hayes.

The bill would make stations pay to play songs. Some of the money would go to record labels and some of the money would go to artists.

"When you're not relying on radio like you used to... yeah, that performance tax probably looks better to you," said Hayes.

But radio stations say new artists need the radio publicity.

"Taylor Swift, every time she accepts an award she thanks radio," said Hayes.

"For 80 years we've had a relationship with the recording industry that they provide us free music and we provide them free air time," said Entercom Radio Wichita General Manager Jackie Wise.

Stations say a tax could force them to cut services they provide listeners, such as news and weather. The charge may also cut down on the number of songs you hear when you turn on the radio.

"Why would we pay the recording industry to play new artists when we don't know if our listeners are going to like it or not?" said Wise.

Wise says the Entercom Wichita stations alone would have to pay nearly $1.5 million per year if the performance tax bill becomes law.

"I probably wouldn't have a job... I mean, it's that simple," said Hayes.

Several local artists also say they believe the tax would be damaging, as they use radio time for promotion. But supporters say artists and labels deserve money when stations play their songs. The tax could also help support struggling record companies.

Several Kansas lawmakers have formed a resolution against the proposed tax. The bill is currently making its way through congress in Washington.