Senate Bill Would End Internet Access Taxes

It’s all very confusing. Whether or not you pay taxes on your high-speed Internet connection has everything to do with how you connect — phone line, cable or digital — as well as what state you live in.

While each service is comparable in access to the Internet, only telephone data lines are charged access taxes in 18 states, a tax that a bill pending in the Senate would repeal permanently.

Sen. George Allen (R-VA), sponsor of the bill, told the New York Times that it is unfair to charge a tax on one form of Internet access but not others. "You're giving the advantage to one technology over another," Allen said. "It's discriminatory taxes."

A similar bill to eliminate Internet access taxes passed the House in September, despite protests mostly from cash-strapped state and local governments who see the taxes as important revenue sources.

The battleground for Internet broadband customers has become hotly competitive in the past five years. Cable companies hold about two-thirds of the market and phone companies control the other third, the Times reported. Phone companies say the additional taxes hurt their ability to compete with cable broadband providers.

Allen’s bill would prohibit all taxes on Internet access, including digital subscriber lines while giving state and local governments three years to phase out the Internet taxes, the Times reported.

You may like these other stories...

K2 Enterprises has announced its 2014 technology awards in 27 categories. The only clear message may have been that there was no clear message in a field marked by many good ideas, but no unanimous winners.The company, which...
We're all about QuickBooks this morning. First, read this late-breaking news from John Stokdyk, editor of AccountingWEB (U.K.), who is attending the QuickBooks Connect conference in San Jose, California. Then, for more...
Technology—specifically internet technology—has a record of disrupting tried-and-true methods of operation in ways that we often don't foresee. Look no further than the recent HBO announcement that they *gasp...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.