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join:2002-12-06
Nirvana
 ·AT&T Southwest
| Re: PASS IT ON: Please Don't Tax My Internet Acces said by mitchelllll  :
The Internet Tax Non-Discrimination Act (S.150), ensures that states may not tax consumers for access to the Internet.
I switched to SBC's 6mbs DSL service in September. I just noticed a 7% itemized tax on my 99.95 Expert Plus account ($7 extra).
It seems Texas had stipulated its own Internet Access tax in 1999 -- even after the congressional ban on it (well, Bush was governor at the time). Here's the tax rule:
quote:
Internet Access Service. After October 1st of this year (1999), sales taxes will not be due on the first $25 of a monthly charge for access to the Internet. The monthly exemption will apply regardless of the billing period used and regardless of whether access charges are billed separately or bundled with other services. Significantly for business taxpayers in particular, the exemption will apply to the total amount paid for Internet access, whether billed in a lump sum or separately for each user. Thus, when access is purchased for multiple users, only the first $25 of the total monthly charge will be exempted - not $25 for each user.
I'm thinking SBC has always charged the 7% tax here in Texas (don't know about elsewhere). I don't recall Charter cable ever charging an access tax. Even worse, it doesn't appear that SBC subtracts the $25 exempted in the ruling above.
Question: Has Texas been in violation of the Internet Access Tax ban since 1999 until This month??? |
