Without conducting a thorough analysis, I did find a few interesting notes in 47 U.S.C.S. 151:
47 U.S.C.S. § 151 contains a moratorium on taxes generally. However the statute contains a long list of exclusions. For instance, a state may tax if the state was already taxing internet services prior to the enactment Oct. 21, 1998. States that imposed a sales tax on internet service prior to that date can still charge the tax. Likewise, taxes enacted by state statute prior to November of 2003 and imposed upon internet services are grandfathered despite the moratorium. Telecommunications taxes appear to be subject to a loophole and can be imposed (although the statute is silent as to what qualifies as telecommunications). But perhaps most interesting is subsection (e) which allows a state to charge taxes to any internet provider who fails to offer customer (either for a fee or at no charge) screening software that is designed to permit the customer to limit access to material on the Internet that is harmful to minors. All WISPs would be wise to start offering some sort of net nanny type software so that the states dont jump on the opportunity to tax. Regards, Larry Yunker II, Esq. Barkan & Robon, Ltd. _____ From: indiana-boun...@wispa.org [mailto:indiana-boun...@wispa.org] On Behalf Of Steve Barnes Sent: Tuesday, October 20, 2009 11:46 AM To: Indiana WISP Discussion Subject: [Indiana] Sales Tax Here is the info I finally got from the state. Steve Barnes Manager PCS-WIN <http://www.pcswin.com/> RC-WiFi <http://www.rcwifi.com/> Wireless Internet Service Mr. Barnes: First, I apologize for the delay in responding to your e-mail. With regard to wireless Internet services, Indiana is precluded from taxing such services for sales tax under 47 U.S.C. s. 151 note. (the Internet Tax Freedom Act). Indiana did not enforce sales tax on purely Internet services prior to the enactment of this act; thus, Indiana is now precluded from taxing Internet services until at least 2014. If you have any questions, please feel free to contact me. Thank you, Jeff Raney Legal Division Indiana Department of Revenue ------------------------------------------- From: Steve Barnes[SMTP:st...@pcswin.com] Sent: Monday, October 05, 2009 3:01:34 PM To: DOR Webmaster Subject: AFSS - Legal Division Auto forwarded by a Rule Your Name: Steve Barnes Email Address: st...@pcswin.com Subject: Legal Division Your Comments: I am a small Wireless Internet Service Provider in Randolph CountyIndiana. I was told that due to this being a Internet Service and nottelephone or other communication that salestax does not need to becollected. I request a WRITTEN OPINION. -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
