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Taxes in Illinois

I don't know if you will get a straight answer from anyone. There is suppose to be a law already passed that bans taxes on internet access. The taxes on the digizip bill could be internet access taxes or it could be the taxes that digizip should be paying but are passed on to you. Like cellphone carriers passing on their taxes and making you, the consumer, pay your share and their's.

reply to x303
You'll pay about $6/month in taxes with Digizip here in Illinois.

reply to x303
Is Illinois one of the states grandfathered in under the Internet access tax moratorium bill just signed by Bush? If not, then no access taxes can be charged. However, Digizip is based in New York where everything is taxed. If they are passing along any NY state taxes to you Illinois customers, they are dead wrong. If you have your Long Distance service provided by Digizip, they may be charging you taxes on that. Just make sure they aren't double taxing you for LD phone service.

This wouldn't be as large an issue if the taxes were set forth along with the monthly DSL charge before you signed up for DSL through Digizip. It's a pretty nasty surprise for everyone who thought they were going to pay $49.99/mo. inclusive of all charges. Which is everyone who signs up. Particularly, when Cyberonic, also based in New York, charges $49.99/mo. *PERIOD* for the same service (though, 1 static IP instead of 5).

We tax based upon the current tax rates for local, city, state, and federal depending on YOUR location not ours. We have 2 tax companies that advise us on tax issues.

We would rather not tax as well.

Still, there is a difference between voluntary and mandatory compliance, wishful thinking on the part of the state/county/local entity and the law. There is no allowable access tax unless you are one of the states that have been grandfathered in. Posturing aside, the state, county, municipal entities have no authority to impose, or collect, an access tax prohibited by the federal government. Telephony fees/taxes don't apply to DSL service. Sales taxes don't apply to DSL service. So what fees/taxes are you charging Illinois residents for Digizip/MCI ADSL? It isn't all just CYA advice/tactics, and/or simply a pass-through of business expenses for which the subscriber is not legally liable, is it? It wouldn't be just a profit center like the Telco "Regulatory Recovery Fee", would it? Or, double taxation of telephony network access?

Anyone working on getting some relief for subscribers?

SSPW; nosegay.

I will get clarification on tax. We would like taxes to go away too. As I said in previous posts we pay 2 tax companies that specialize in telecom to handle our taxes. I would like not to pay them thousands of dollars, its a headache.

Any progress on the tax front?

reply to gregschneide
So...I guess we shouldn't expect an answer any time soon?

So absolutely TYPICAL!!!

FROM OUR BILLING COMPANY:

No new taxes can be billed, however, states that have previously been billing taxes on access fees can continue to do so...

This doesn't make sense. Illinois did not charge the tax before. Only with Digizip did I have to pay the tax.

reply to x303

By law though, Digizip cannot back charge you for taxes. They either have to build it into their retail price or absorb the fees. There are laws in place to protect consumers against this type of behavior. This applies to them charging your for state and local taxes. I contacted my village (Park Ridge, IL) as well as the state of Illinois and neither collect any taxes from Digizip.

Legally they cannot pass these taxes along to the consumer. I had my attorney send a letter to my current ISP along with a letter a letter from accountant stating as much. The dropped the taxes and refunded me for all back taxes they had billed me. They knew what they were doing was wrong and just hope that people don't question it.

Keep in mind that this does not apply to the FUSF charge--only to state and local taxes.

Yea, Im charged $7 in taxes, living in Florida. Would like to see this get resolved...

reply to drmorley
Can you post a copy of the letter, with all personal information removed from it? A buddy of mine is a lawyer, but I'd like to save him some work since he would be working for free. But, I'd like to forward a copy to the IL Attorney General's office too.