Internet Tax Bill Strikes Again

GHoosdum

Two of the authors of the Federal bill that bans taxes on internet services are engaged in an argument with a report which states that the law allows for some instances of taxes on internet services. The authors claim that was never the intent.

The report found that the federal tax ban doesn't apply to "acquired services." That refers to high-speed communications capacity over fiber optic cables which Internet service providers purchase and use to deliver Internet access to their customers.

The report said the law defines "nontaxable Internet access" as the service of providing Internet access to an end user or a customer. "It does not extend to a provider's acquisition of capacity to provide such service," the report said. That means state and local governments can tax purchases of acquired services, depending on state law, the report said.

Wyden and Allen disputed this finding.

"The plain language of the statute, as well as the relevant legislative history, reflect a clear legislative intent to ban Internet access taxes at both the retail and wholesale level," Allen said in a statement.

Source: Morningstar

jradmin

The US Goverment would suck money from a dead rat if they could. I expect them to either amend this law or be mindful that internet prices could go up if states impose taxes on ISP's themselves.