From: "Norm Coltri" <[email protected]>
To: <[email protected]>
Date: Wed, Dec 13, 2006 2:36 PM
Subject: D-A Converter Docket

Norman R. Coltri, PE
19 White Birch Trail
Medford, New Jersey 08055

The Honorable John M. R. Kneuer
NTIA
Department of Commerce
1401 Constitution Ave.
Washington, DC 20230

RE: Docket 060512129-6129-01
Coupon program for Digital-to-Analog Converter Boxes

Dear Administrator Kneuer:

After reviewing the many filings on this issue, I felt compelled to submit these late comments.

A concern expressed on the coupon program is that the cost of Digital-to-Analog converter boxes may exceed the value of the $40.00 coupon. In an attempt to control costs and to make the transition as painless as possible, particularly for the lower income citizens, it is suggested that a way be explored to exempt the purchase of these devices from state and local sales tax. With a program that possibly could reach $1,500,000,000, at a tax rate of 7%, 105 million dollars would be diverted from the purchase of converter boxes to the state and local treasuries. This extra cost would be borne by the purchaser to the extent that it exceeded the coupon value, or the coupon may not be allowed to be used to pay sales tax even if the total purchase price is under $40.00

As the purchase of converter boxes is not an optional purchase, they should be exempt from sales tax. If this exemption can be established at the Federal level it would apply to all purchases, otherwise an effort should be made with each state and municipality that collects sales tax to list these items as exempt.

Sincerely,

Norman R. Coltri