Stinkysteve
07-14-2004, 12:14 PM
Just what we all need, another hidden fee on our telephone bills!
Story here
http://www.internetweek.com/breakingNews/showArticle.jhtml?articleID=23900472
New Hampshire Plans To Tax IM, Chat Rooms
By InternetWeek.com
The New Hampshire Department of Revenue Administration is proposing a 7 percent tax on Internet and telephone services. The tax would include chat rooms, Web mail, voice mail, and instant messaging.
The proposal adds specific references to Internet services under the New Hampshire's telecommunications tax. The current tax applies to two-way communications. State officials assert that extending the tax to encompass Internet services simply updates the tax to account for advances in technology.
The state telecommunications tax dates back to 1990. In an official statement, Department of Revenue spokesperson Val Berghaus said, "It's not the position of the department that it's applying the law to new things. Rather that it's clarifying that the law did apply to these things even though they were not expressly stated in 1990."
Speaking to USA Today, Carol Miller, president of the New Hampshire Internet Service Providers Association, claimed that the proposed tax would be a huge burden to providers, forcing them to separate Internet services from basic Internet connections.
"They have traditionally taxed the phone line service, the actual line," said Miller. "Now they are looking at taxing Web mail, chat, instant messaging, and wireless Internet. We think this is far beyond the scope of what the tax was meant for."
New Hampshire was one of approximately 12 states allowed to continue levying a state telecommunications services tax after approval of the federal Internet Tax Freedom Act in 1998. The six-year-old federal act imposes a temporary moratorium on taxing Internet access services. New Hampshire's tax on two-way telephone services, both wireless and land line service, as well as broadband and DSL Internet connection services predates the federal act.
The proposal is subject to a public hearing a state legislative committee must review it before approval. State Representative Michael Harrington opposes the new tax and stated that if the changes are approved by committee he will seek to overturn them by filing a bill.
Story here
http://www.internetweek.com/breakingNews/showArticle.jhtml?articleID=23900472
New Hampshire Plans To Tax IM, Chat Rooms
By InternetWeek.com
The New Hampshire Department of Revenue Administration is proposing a 7 percent tax on Internet and telephone services. The tax would include chat rooms, Web mail, voice mail, and instant messaging.
The proposal adds specific references to Internet services under the New Hampshire's telecommunications tax. The current tax applies to two-way communications. State officials assert that extending the tax to encompass Internet services simply updates the tax to account for advances in technology.
The state telecommunications tax dates back to 1990. In an official statement, Department of Revenue spokesperson Val Berghaus said, "It's not the position of the department that it's applying the law to new things. Rather that it's clarifying that the law did apply to these things even though they were not expressly stated in 1990."
Speaking to USA Today, Carol Miller, president of the New Hampshire Internet Service Providers Association, claimed that the proposed tax would be a huge burden to providers, forcing them to separate Internet services from basic Internet connections.
"They have traditionally taxed the phone line service, the actual line," said Miller. "Now they are looking at taxing Web mail, chat, instant messaging, and wireless Internet. We think this is far beyond the scope of what the tax was meant for."
New Hampshire was one of approximately 12 states allowed to continue levying a state telecommunications services tax after approval of the federal Internet Tax Freedom Act in 1998. The six-year-old federal act imposes a temporary moratorium on taxing Internet access services. New Hampshire's tax on two-way telephone services, both wireless and land line service, as well as broadband and DSL Internet connection services predates the federal act.
The proposal is subject to a public hearing a state legislative committee must review it before approval. State Representative Michael Harrington opposes the new tax and stated that if the changes are approved by committee he will seek to overturn them by filing a bill.