Florida considering LAN tax
Spinner
Birmingham, UK
In Tallahassee a new taxation rule is being created that could ultimately lead to a state tax of 9% or higher on computer networks used in businesses. Un-suprisingly the response by business lobby groups has been of complete outrage at the prospect. This new rule originates from a legislative directive handed down two years ago, which aimed to modernize how the state taxes communication systems.
Original Report:
http://www.geeknews.net/index.php?info=389
"Most of Florida communications case law stems from the rotary dial era," says David Bruns, spokesman for the state Department of Revenue.
Reforms passed in 2001 simplified how communications taxes were collected and presented to taxpayers.
But how to define -- and whether to tax -- new sorts of communication devices was left somewhat unclear in the legislation, Bruns says.
The proposed rule pushes the definition of communications systems to include local area networks, or LANs, as well as wide area networks, or WANs, which connect computers across distances. Practically any office with two computers will have a local area network.
Associated Industries knew a rule was coming, says Simon. "What did surprise the business community was the extent and reach of the rule," says the lobbyist.
That brings them under the purview of the proposed rule, which includes computer networks as "substitute communications systems" -- subject to a 9.17 percent state tax, plus local option taxes.
In Orange County, the local tax typically runs between 5.5 percent and 6.5 percent. That would bring the total tax to between 14-15 percent.
Original Report:
http://www.geeknews.net/index.php?info=389
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Comments
They can try to impose it but voters/users will knock it down.