- 11 - requisite. See Webster's Third New International Dictionary 1510 (1986). The language in Wometco's franchise agreements does not, as of December 31, 1985, mandate, make indispensable, or make necessary the rebuilds in issue. Wometco's rebuilds that occurred after December 31, 1985, and before January 1, 1991, may reflect sound business decisions by Wometco in order to maintain the competitiveness of its cable television systems and to facilitate eventual renewal of the franchise agreements. As of December 31, 1985, however, Wometco was not required by specific contract to undertake the six rebuilds. In interpreting the supply or service transition rule, Wometco relies heavily on discussions that occurred on June 24, 1986, on the floor of the U.S. Senate as part of the congressional debate over provisions of the Tax Reform Act of 1986 as follows: Mr. FORD: * * * I simply want to make sure that those agreements to build and rebuild cable systems under cable franchise are treated as transition property under the supply or service contract rule. * * * Was it the intention of the Finance Committee to include cable television franchise agreements within the service and supply contract rule? Mr. PACKWOOD: The Senator is correct. The committee intends that cable television franchises generally do qualify as “supply or service contracts” for purposes of section 202(d)(3) relating to transition rules. * * * 132 Cong. Rec. 15039 (1986).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011