Beware the little green taxman

In space - but should they be taxed?

California tax officials have come up with a new idea that could bring in millions of dollars in revenue - taxing orbiting satellites owned by California-based companies.

Tax collectors in Los Angeles County say eight satellites belonging to the Hughes Electronics company should be classified as 'movable property'.

They should therefore be taxed like similar items - boats, construction equipment, or even costumes for travelling shows, the officials argue.

County tax assessor Rick Auerbach points out that in 1976 a touring ice skating company was ordered to pay taxes on its costumes, even though it rarely put on shows in California.

Space parking

Hughes Electronics lawyers do not agree.

'Movable property'

They maintain the satellites are in a fixed orbit above the earth's equator, and therefore cannot be considered as movable property.

Brian Paperny, a company executive, is quoted by the Los Angeles Times as saying Hughes is "very concerned with the concept of a tax being assessed on a stationary object 22,300 miles away from the Earth, which is residing in a fixed parking slot."

The satellites are launched from Florida or French Guyana, and never pass over California territory.

Graveyard

They remain in a fixed orbit for 10 to 15 years before they run out of fuel and are moved to a space graveyard.

No officials have as yet suggested a space cemetery tax.