Legal Question in Constitutional Law in California

Re: States rights to Tax the airways

The Federal government controls broadcast rights through the Federal Communications Commission (FCC) and Federal laws control where there is a conflict with state laws, so in a sense you are correct -- a state government cannot tax the signal you receive. However, it can tax the service which enables you to convert that scrambled signal into a viewable picture. This taxing authority is also what enables the states to impose taxes on cellular phone usage.

I presume (but don't know for sure) that cable television systems are taxed; if that is the case, then satellite broadcasters would arguably enjoy an unfair edge over their competition if they were allowed to remain untaxed.

The Federal government also has the authority to allow states to tax something which would otherwise be subject to only Federal regulation. In such situations, each state can decide whether to impose such taxes. I don't know exactly what laws and regulations the FCC and Congress have enacted re: satellite television, but this might also be a way the state could successfully impose such a tax.