Broadcasting Telecasting (Jul-Sep 1960)

1 1 % by Mrs. Eugene Katz, wife of the president of The Katz Agency. Because of the radio-tv stations, the entire transaction must be approved by the FCC. WSAZ was founded in 1923 and operates on 930 kc with 5 kw daytime and 1 kw nighttime. WSAZ-TV. on ch. 3, began operating in 1949. Both stations are affiliated with NBC. The transaction was negotiated through Vincent J. Manno, New York broker. Changing hands ANNOUNCED ■ The following sales of station interests were announced last week, subject to FCC approval: ■ KYSN Colorado Springs. Colo.: Sold by Kenneth E. Palmer, John C. Hunter and Robert Donner Jr. to KYSN Broadcasting Co. for $300,000. KYSN Broadcasting owners comprise Donald Harding, formerly with CBS Chicago; William Firman, eastern sales manager, CBS Radio Network; Robert Meskill, general manager, WKID Urbana, 111., and Jerry Glynn, vice president, AM Sales Co., Chicago. Same group owns WKID. Mr. Hunter is a major stockholder in KOWB Laramie, Wyo. KYSN is on 1460 kc with 1 kw daytime and 500 w nighttime. Hamilton, Landis & Assoc. was the broker. ■ KGHS International Falls, Minn.: Sold by H.S. George to Dan Ganter for $45,000. Mr. Ganter is an employee of KTRI Sioux City, Iowa. KGHS is 100 w on 1230 kc. Broker was Blackburn & Co. L.A. broadcasters win city tax exemptions The city council of Los Angeles has adopted an amendment to the municipal code exempting broadcasters from the city's gross receipts tax. The amendment gives radio and tv stations, studios and networks tax exemption for receipts not only from time sales but also from revenues derived from the production and packaging of programs or commercials or providing any element of a program or commercial, including services or facilities. The announcement of the exemption was made by Deane F. Johnson of the Los Angeles law firm of O'Melveny & Myers in a report to the Southern California Broadcasters Assn. on Thursday (Aug. 11). The exemption, which puts Los Angeles broadcasters on a parity with the city's newspaper publishers, does not extend to revenue from syndicated programs or commercials produced on film or tape, Mr. Johnson stated. This is the so-called motion picture tax which applies primarily to the motion picture studios and which is limited to a maximum of $1,500 a year regardless of total volume, he said. Neither does the tax exemption extend to pay tv operations, when and if they enter the Los Angeles scene. Income from the rental of station facilities for use outside of radio and tv programming and broadcasting, such as rental of a station's studio to a phonograph recording company, would not be tax exempt, Mr. Johnson reported. Nor would income a station might derive from operating a commissary for its employes or from a soft drink or cigarette vending machine be tax free. But all normal broadcasting operations will be, he said. Although the Los Angeles gross receipts tax dates back to the mid-40's, no attempt to apply it to broadcasters occurred until 1955 following court decisions which, for the first time, ? mitted the right of municipalities to tax certain aspects of broadcasting operations under certain conditions. Previously broadcasting had been held to b= an interstate operation not subject to municipal taxation or regulation. Since that time, the broadcasters of the city have been attempting to secure an exemption similar to that which the newspapers got in 1949 when the cit\attempted to apply the ordinance to them. Faced with the twofold problem of securing exemption from the tax in the future and from its retroactive application to years not barred by the statute of limitations, the L.A. broadcasters have been successful on both counts, Mr. Johnson stated. The amended ordinance grants them exemption in the future and the city attorney has assured them that he will not attempt any retroactive application. NAB committees set five Sept. meetings Four NAB committee meetings will be held in Washington in September. A fifth. Freedom of Information Subcommittee, will meet in New York. The Washington dates follow: Sept. 8. Tv Music Advisory; Sept. 14, Editorializing; Sept. 19. Convention; Sept. 26, Video Tape. The New York meeting will be held Sept. 26. A member of the NAB Policy Committee will attend each of the Washington meetings. The committee is headed by Clair R. McCollough, Steinman Stations. Other members are G. Richard Shafto, WIS-AM-TV Columbia. S. C. and Merrill Lindsay. WSOYAM-FM Decatur, 111. Outistanding Exclusive Properties Excellent daytime facility in prosperous medium market. Operating in the black under absentee ownership. Needs owner-operator to develop full potential. $85,000 cash required. Terms can be negotiated. SOVTHMEST Majority interest in powerful daytimer located in a top fifty growth market. This market has been one of the fifteen that has experienced the greatest growth during the past decade. 29% down and terms. Exclusive. SOUTHIIXST Fulltime facility in small southern market. Operating profitably. This one is best for owner-operator. 29% down and terms. NEGOTIATIONS— FINANCING— APPRAISALS Inc. RADIO-TV-NEWSPAPER BROKERS WASHINGTON, D. C: James W. Blackburn— Jack V. Harvey— Joseph M. Sitrick— Washington Building, Washington, D.C.— ST 3-4341. MIDWEST: H. W. Cassill— William B. Ryan— 333 North Michigan AvenueChicago, Illinois— Financial 6-6460. SOUTHERN: Clifford B. Marshall— Stanley Whitaker— Robert M. Baird— Healey Building, Atlanta, Georgia — JAckson 5-1576. WEST COAST: Colin M. Selph— California Bank Building— 9441 Wilshire Boulevard— Beverly Hills, California — CRestview 4-2770. 70 (THE MEDIA) BROADCASTING, August 15, 1960