As the battle rages on over whether or not performance fees should be placed on radio broadcasters, the musicFIRST Coalition is taking umbrage with National Association of Broadcasters’ (NAB) President and CEO David Rehr calling the fees a "tax." musicFIRST says that Rehr and representatives of the NAB have been publicly calling the payment of royalties a tax "in an effort to confuse members of Congress and others." The issue was brought to a head when, at a recent U.S. Senate Commerce Committee hearing on the Future of Radio, Senator John Sununu (R-NH) asked W. Russell Withers of the NAB Radio Board why he referred to performance fees as a tax when the word tax implies that the government would be collecting the money.

So, to clear up the confusion, musicFIRST sent Rehr an American Heritage College Dictionary, which defines tax as: "A contribution for the support of a government required of persons, groups, or businesses with the domain of that government."

"As an elected member of the Detroit City Council I deal with tax issues all the time," said Martha Reeves of Martha and the Vandellas and a founding member of musicFIRST. "A performance right is not a tax. It is fair compensation for artists and musicians who, through their voices, their inspiration, and their hearts and souls, bring music to life on the radio. It is compensation earned by artists and musicians that is long overdue."

"It seems that the NAB will do anything to avoid paying artists," added John Simson, Executive Director of SoundExchange and also a member of musicFIRST. "They tried calling royalties a ‘tax’ years ago when they moved heaven and earth to avoid paying songwriters, but they lost that one."

NAB EVP Dennis Wharton responded by saying, "Radio broadcasters currently pay nearly $500 million a year to songwriters and music publishers. Now, in an effort to bail out a failing business model, the Recording Industry Association of America is seeking a tax on local radio to the tune of billions of dollars. It is undeniable that free airplay of music on America's hometown radio stations generates millions of dollars in annual revenue for both artists and the foreign-owned record labels. This proposed massive transference of wealth into the legal coffers of RIAA to fund more litigation against college kids and grandmothers would be unfair, unwise and unwarranted."

Last week, a bipartisan resolution was introduced in the House of Representatives by Reps. Gene Green (D-TX) and Mike Conaway (R-TX) to recognize the promotional value of airplay on terrestrial radio and oppose the performance fees.