(The petition to the FCC was not truly calling for a modem tax (in the sense that the old rumors and hoaxes used to alarm us about), but the following efforts look pretty much like what was predicted. Virginia is not actually involved--this week it's Washington state and Florida. These come from Jim Warren's excellent mailing list on government and online services. You can find out how to subscribe at the end.--Andy) From <http://www.businessweek.com> NEW TOLLS ON THE INFO HIGHWAY? States see big revenues in cyberspace Business Week: February 12, 1996 Department: Government For cybernauts in Spokane, Wash., it was a rude awakening. On Jan. 15, revenue-hungry town officials proposed a 6% tax on gross receipts of Internet access providers. Spokane City Councilman Chris B. Anderson, a foe of burdensome business taxes, blew his stack. ``This is a money grab on an embryonic industry that's only now becoming viable,'' he says. That afternoon, Anderson contacted local Net service companies to mount a defense, and one firm set up a Web site for users to blast the plan. The mayor's office and city council were flooded with E-mail and phone calls. Grassroots reaction was so strong Spokane decided to delay the new levy pending further study. A happy ending? No, just the beginning. The Spokane eruption is likely to repeat itself in cities and states across the country as local treasurers increasingly eye online services as a new source of cash. Business on the Net has mushroomed from nil two years ago to an estimated $200 million today, and state and local tax collectors from Washington to Texas to Florida are trying to devise ways to make sure they don't lose tax revenue as commerce migrates from the real to the virtual world. NOT SO FAST. ``You can't ignore the growth of online communications,'' says Duston J. Jensen, tax manager of Spokane's cross-state rival, Tacoma, which recently was able to apply an existing telecommunications tax to its Internet-access providers. ``The Net is here.'' Not so fast, says the nascent online industry, which has grown explosively over the past two years amid little regulation. Company officials are outraged at what they see as clumsy attempts to hobble cyberspace with ill-suited tax rules. The government has to be careful not to do ``something that's going to kill this business,'' says Bruce J. Reid, director of state taxes at Microsoft Corp. ... [The copyrighted article goes on to cite a number of similar tax threats in other jurisdictions around the nation. --jim] &&&&&&&&&&&&&&&&&&&& One of Many: Florida Wants an Additional "Telecommunications Tax" on ISPs It's not enough that there are already state and federal taxes on telephone use. Date: Fri, 23 Feb 1996 12:51:20 -0500 From: •••@••.••• (George Pilat) [excerpting •••@••.•••] ... the Florida Department of Revenue is presently ... attempting to have Internet providers (and all Florida BBS's, as well) charge a "telecommunications tax" for their computer services. The Florida Department of Revenue is attempting to say that Internet providers (and BBS's) are telecommunications companies and, as such, should be collecting the additional tax from their customers. This could add up to 17.5% on the existing fees. It seems to me, this goes directly against what President Clinton and Vice-president Gore have been promoting - reasonable priced (pronounced: cheap) Internet access for America (NII). We are not standing idle, while this is taking place ... A group has been formed called COST (Committee On State Taxation). There are some heavy hitters. A few of the members are: Microsoft, Prodigy, GE, GTE, IBM, Compuserve, AOL and IntNet.net <smile> just to mention a few. Anyone that would like further information may contact Suzanna Pilat (•••@••.•••) or vist the web site: http://www.intnet.net/Tax.html The web site will be updated as more information becomes available. &&&&&&&&&&&&&&&&&&&& Yet Another Industry Group Discovers They Better Get Involved -- Finally People keep thinking that if they ignore government, it will ignore them. How absolutely idiotic and naive. Those who don't get involved, get screwed. Date: Sun, 18 Feb 1996 12:46:50 -1000 (HST) From: •••@••.••• (Daniel Cohen) ***************************************************** AOP OPPOSES FLORIDA TAXATION OF ONLINE SERVICES ***************************************************** The Association of Online Professionals has joined with the Florida Chamber of Commerce to fend off an attack by the state Department of Revenue that could cripple Florida's online services industry and damage the state financially. "The state already collects tax on these services, but is looking for additional revenues by double-taxing them," notes AOP Executive Director Dave McClure. "Taxes are collected for every telephone call made to an online service, and corporate income taxes are paid on subscription fees." "The direct effect will be to drive thousands of online services in Florida out of business," says McClure. "These are small, entrepreneurial Internet Service Providers and BBS systems that will not be able to pass this tax on to their subscribers and still stay competitive, not to mention the additional administrative burden on these companies." "The state is sending a message to technology companies to stay out of Florida, and is punishing its own residents for making use of online technologies." The tax sends an anti-business message, agrees Blake A. Wilson, executive vice president of the Florida Chamber of Commerce. "High-tech companies that want to grow and expand in Florida will turn their backs on the Sunshine State ... as a place that is living in the Dark Ages when it comes to business climate if this tax prevails." Earlier this year, the Department of Revenue used a 12-year-old statute taxing teletype services as justification for a 9.5 percent tax on all online services. Following complaints by the Florida Chamber of Commerce and the business community, the Revenue Department withdrew collection of the tax, but has announced that it will begin collection again on July 1 of this year unless the Florida legislature votes otherwise. The 9.5 percent sales and gross receipts tax would apply to all subscriptions, fees and electronic transactions in or from the state of Florida. Provisions that allow local governments to add their own taxes could push the rate as high as 17.5 percent. The Florida Chamber of Commerce has organized a drive to keep the tax from becoming law. Already in discussion with the Department of Revenue, the Chamber will begin lobbying the state legislature when it convenes in three weeks. The AOP has joined with the Chamber, working with AOP members and other online professionals to alert Florida residents and motivate them to write their legislators. The Florida tax situation is being watched closely by other states hoping to implement online taxes. California, Georgia and Illinois are among the state considering similar measures. ACT NOW It is imperative that the State of Florida understand the chilling effect that this tax will have on the online industry there. The state needs to understand that this will not only cripple the industry there, but will lead to a great loss of revenues to the state from business that goes elsewhere, industry trade shows that avoid the state and other related losses. Florida also needa to know that online professionals will not vacation in a state that is unfriendly to them. PLEASE POST THIS INFORMATION AND FORM TO ALL OF YOUR SUBSCRIBERS AND ENCOURAGE THEM TO USE IT. GIVE THIS THE WIDEST POSSIBLE DISTRIBUTION, PARTICULARLY WITHIN FLORIDA. AOP is working with the FLorida Chamber of commerce to collect fax and e-mail messages that can be presented to the state legislature. Please take the time to fill this out and send it, and encourage your subscribers to do the same. Florida professionals, your future is at stake. [For info about what you can do to help, try •••@••.••• . --jim] To add or drop GovAccess, email to •••@••.••• ('Subject' ignored) with message: [un]subscribe GovAccess YourEmailAddress (insert your eaddr) For brief description of GovAccess, send the message: info GovAccess Past postings are at ftp.cpsr.org: /cpsr/states/california/govaccess and by WWW at http://www.cpsr.org/cpsr/states/california/govaccess . Also forwarded to USENET's comp.org.cpsr.talk by CPSR's Al Whaley. ~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~-~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~ Posted by Andrew Oram - •••@••.••• - Moderator: CYBER-RIGHTS (CPSR) Cyber-Rights: http://www.cpsr.org/cpsr/nii/cyber-rights/ ftp://www.cpsr.org/cpsr/nii/cyber-rights/Library/ CyberJournal: (WWW or FTP) --> ftp://ftp.iol.ie/users/rkmoore Materials may be reposted in their _entirety_ for non-commercial use. ~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~-~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~
