Taxing VoIP http://snapvoip.blogspot.com/
Looks like we will be paying more for VoIP services in the year 2011. Yes cities and municipalities are feeling the pinch, which is much more than a pinch now that with broadband almost everyone going VoIP route. So get ready for paying more for your Vonage, Skype etc.
"Cities rely on the tax revenue generated (by telecoms) to provide critical services to their citizens," says Cheryl Leanza, an attorney for the National League of Cities setting up ways to tax VoIP. (that was in 2005 when US VoIP revenue was some thing like $1.7 billion. the prediction for 2007 was $4.6 but the actual VoIP Revenue for 2007 hit $16.8 Billion), which represents 18,000 cities across the USA. These taxes account for roughly 2% to 21% of your monthly phone bill depending on where you live and I know a bunch of people who does not even have a traditional phone line.
So it is time to catch Comcast and the likes with a yearly contract.
Via VoIP Watch
Showing posts with label VoIP Tax. Show all posts
Showing posts with label VoIP Tax. Show all posts
Monday, December 13, 2010
Monday, May 4, 2009
Vonage "VOIP Tax" Turned Down Again By Court
VoIP Tax
For over a decade, several states have sought to tax Vonage and other VoIP suppliers, as well as their customers, to states' Universal Service Fund. But all these taxing attempts have been overturned or denied by citing a 2003 landmark ruling by federal Judge Michael Davis of Minnesota.
The latest comes in the way of the 8th U.S. Circuit Court of Appeals turning down an appeal by the Nebraska Public Service Commission to compel Vonage users to pay taxes on their service.
In his earlier ruling, Judge Davis said, "Congress has expressed a clear intent to leave the Internet free from undue regulation so that this growth and exploration may continue. Congress also differentiated between 'telecommunication services,' which may be regulated, and 'information services,' which, like the Internet, may not."
Source
For over a decade, several states have sought to tax Vonage and other VoIP suppliers, as well as their customers, to states' Universal Service Fund. But all these taxing attempts have been overturned or denied by citing a 2003 landmark ruling by federal Judge Michael Davis of Minnesota.
The latest comes in the way of the 8th U.S. Circuit Court of Appeals turning down an appeal by the Nebraska Public Service Commission to compel Vonage users to pay taxes on their service.
In his earlier ruling, Judge Davis said, "Congress has expressed a clear intent to leave the Internet free from undue regulation so that this growth and exploration may continue. Congress also differentiated between 'telecommunication services,' which may be regulated, and 'information services,' which, like the Internet, may not."
Source
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