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Minny Vs. Vonage
Battle continues despite FCC ruling
by Karl Bode Sunday 21-Nov-2004 tags: VoIP
Despite the FCC just ruling that states have no regulatory control over VoIP, Vonage still has to go to court to fight off a money grab by the State of Minnesota. Minnesota, if you recall, began the whole state regulation debate by suggesting Vonage should be regulated (and taxed) just like telco's in the state, despite have no actual physical presence there.

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GO BLUE1
Greed Is Good
Premium
join:2004-03-08
IN YOUR MIND

confused

is this the price for doing buisness at state level.how can they be taxed at state level if federal says other wise?
--
WOLVERINE
geroxx
Premium
join:2004-11-06
Apo, AP

Re: confused

Don't worry.... California will be next in line...

It seems that states often cut their own throats when they are in the red.

Sad really...

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: confused

said by geroxx:

It seems that states often cut their own throats when they are in the red.
Bureaucrats have an uncanny ability to smell money no matter where it comes from. It takes legislators with balls to prevent them from actually taking it.
--
Hey Fast Eddie... you're next!
mjcrocket
Mjc

join:2000-12-02
Abingdon, MD
said by GO BLUE1:

is this the price for doing buisness at state level.how can they be taxed at state level if federal says other wise?
The FCC ruling DID NOT address the issue of states taxing VoIP companies. In fact the FCC Press Release very clearly states that these companies are still subject to the various states commercial laws to include taxing!!

The following is a quote from the FCC Press Release:

The Commission’s order does not express an opinion about the applicability to Vonage of general laws in Minnesota governing taxation, fraud, commercial dealings, marketing, advertising and other business practices.

»hraunfoss.fcc.gov/edocs_public/a···12A1.doc

GlenQuagmire
Giggidy Giggidy Giggidy Goo
Premium
join:2004-02-16
Grand Rapids, MI

WTF

It seems to me that the Republicans are getting their way these days. I think the FCC is no different. Hell will freeze over before states can tax VOIP.

Neil
Stop All The Downloadin

join:2003-08-20
New York, NY

Re: WTF

knock on wood!
netscape 6

join:2002-03-07
Constantine, MI

Re: WTF

or punch on pow! blocks

Neil
Stop All The Downloadin

join:2003-08-20
New York, NY

Re: WTF

hehehe

that's an AFRO block. Yay for hacked ROMs!
netscape 6

join:2002-03-07
Constantine, MI

Re: WTF

One time I played the nude bros. hack trhough just to see peach nude in full 8-bit glory, but she was fully clothed

Neil
Stop All The Downloadin

join:2003-08-20
New York, NY

Re: WTF

Was that the one that had penises instead of goombas? I had that, it was stupid.

Anyhow the ending of SMB is dissapointing, no matter which version you play
netscape 6

join:2002-03-07
Constantine, MI

Re: WTF

said by Neil:

Was that the one that had penises instead of goombas? I had that, it was stupid.

Anyhow the ending of SMB is dissapointing, no matter which version you play
it had normal goombas, but why does mario have to go spread eagle when he dies?

woody7
Premium
join:2000-10-13
Torrance, CA
one of the 'repubs' long standing mantras is 'states' rights, as long as it isn't against something they want.....such as to be perceived as low or no taxes.......
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BlooMe

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: WTF

said by woody7:

one of the 'repubs' long standing mantras is 'states' rights, as long as it isn't against something they want.....such as to be perceived as low or no taxes.......
There's nothing wrong with one level of government forbidding another from imposing or increasing taxes. Taxes are still way too high in this country and something needs to be done to reduce them. Any sort of law which prevents any kind of new taxation is by definition good for everyone.
--
Hey Fast Eddie... you're next!

woody7
Premium
join:2000-10-13
Torrance, CA

Re: WTF

I agree!
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BlooMe
SBC ST

join:2003-08-05
Strongsville, OH

1 edit

DirecTv State Tax

I'm not sure if this is quite the same, but what about when my DirecTv got taxed in Ohio? Supposedly because the Sat's are in space they aren't subject to terrestrial laws and could'nt be taxed. No physical presence of DirecTv exists in my state (expect the equip I own). Could that same arguement be used? (either way)

edit: in response to first poster, GO BUCKEYES!
Boggyboy

join:2003-08-16
Niceville, FL

Re: DirecTv State Tax

How about "Just Say NO!" Vonage has no actual "presence" in the state. How could Minnesota even begin to collect?
rradina

join:2000-08-08
Chesterfield, MO

They aren't taxing Vonage, they are taxing YOU...

Minnesota isn't taxing Vonage, they are taxing the residents of Minnesota. Vonage is simply being asked to collect the tax and forward it to the state.

If Minnesota can't live without telephone tax revenue, then they should figure out a different way to raise money.

Have you ever travelled and not had to fork over unreasonable hotel/motel/airport/taxi taxes? It would be one thing if these fees were actually used in some way to pay for the services I consume while travelling but it's quite another when the hotel/motel tax goes to pay for a new stadium/light rail system or whatever.

It's the same sad story with utility taxes. Many towns are addicted to utility taxes to meet general revenue needs.

Vonage should just send a note to its Minnesota customers and tell them that they should write to their state congress. If not, Vonage may have to stop doing business in Minnesota.

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