home *** CD-ROM | disk | FTP | other *** search
- Newsgroups: comp.dcom.modems,fl.news
- Path: moses.gencon.com!sgb!bbbcfl!steven
- From: steven@bbbcfl.oau.org (Steven Bradley)
- Subject: Florida To Start Collection Of Tax On Online Computer Use
- Organization: The Better Business Bureau of Central Florida, Inc.
- Date: Tue, 5 Mar 1996 16:29:07 GMT
- Message-ID: <Dnsz4K.6JF@bbbcfl.oau.org>
- X-Newsreader: TIN [version 1.2 PL2]
-
- [ Article crossposted from oau.news,fl.news.comp.dcom.modems,fl.politics,fl.comp,alt.online-services,alt.online-services.compuserve,alt.online-services.genie ]
- [ Author was Steven Bradley ]
- [ Posted on Tue, 5 Mar 1996 15:04:29 GMT ]
-
-
- STATE TO START COLLECTING TAX ON COMPUTER ONLINE BILLS
-
- By Shirish Date of The Sentinel Staff
-
- Pay the telephone bill, and you help build public schools and colleges.
- Pay the online network bill, and you do not.
-
- The difference: Telephone services, but not computer online services,
- pay the 2.5 percent surcharge that pays for most school construction in
- Florida.
-
- That distinction promises contention soon, as lawmakers confront an issue
- that could someday hurt the program that provides much of the money for
- school and university construction in Florida.
-
- With new technologies such as electronic mail and cable television-based
- communication cutting into telephone use, Florida could face a shrinking
- tax base for money to build new schools, community colleges, and
- universities.
-
- The Public Education Capital Outlay fund represents nearly the entire
- construction budget for colleges and universities and a verying percentage
- of the building budgets of school districts.
-
- Telephone bills -- local and long distance -- currently account for 44
- percent of the so-called "gross receipts tax" base, which also covers
- electricity, natural gas, and other utilities.
-
- "The means by which people communicate and the equipment they will be
- using are changing so rapidly that the tax policy issues need to be
- addressed," said Larry Fuchs, director of the state Department of Revenue.
-
- For years, Revenue Department analysts didn't think the tax applied to
- online access fees. They changed their minds last fall after finding a
- section of the law that refers to "computer exchange services".
-
- "The Legislature hasn't changed the law since 1984," Fuchs said. "We
- just read if wrong, and now we're giving time for businesses to adjust."
-
- Starting July 1m the department plans to start collecting the 2.5
- percent tax on computer online access fees as well as a separate, 7
- percent sales tax on commercial access fees. Residential online customers
- would pay a 2.5 percent surcharge on their monthly bills. Commercial
- customers would pay 9.5 percent. So, for example, the tax would add 50
- cents to a monthly America Online bill of $20.
-
- Several legislators, lobbied by Associated Industries of Florida, a
- business group, hope to stop the tax by sponsoring bills exempting
- computer access fees.
-
- "All of use who use e-mail in our businesses, as I do, are interested
- in seeing that there isn't a tax liability sneak up on us," said Sen.
- Fred Dudley, a Cape Coral Republican.
-
- Randy Miller, a lobbyist for Associated Industries and former director
- of the Department of Revenue, said a tax on companies providing Internet
- access is unfair because it taxes a computer user twice: once on the
- phone line used to call the access number, and then for the access itself.
-
- "Never was it the intent to tax something that was already taxed",
- Miller said.
-
- Fuchs said a levy on access providers is no different from a sales tax
- on catalog products purchased over the phone. The Revenue Department has
- not tracked the number of computer service customers statewide so it's
- unclear how much tax money would result.
-
- Rough estimates of how much a tax on the access fees would generate
- range from $7 million to $12 million annually -- a pittance compared with
- the $503 million the tax brought in last year.
-
- But Fuchs said he worries what might happen because of the rapid changes
- in communications technology.
-
- Many computer users already have replaced long-distance phone calls and
- faxes with e-mail. And what if, as is currently supposed, cable
- television companies start providing telephone and computer access services
- to customers instead of just television, Fuchs asked. Would that revenue
- be subject to the gross receipts tax?
-
- Miller, who also represents the cable television industry, said that
- cable providers know that if they provide telephone services, the will have
- to pay telephone taxes, and that the PECO fund is not in danger.
-
- Still, Fuchs wants the Legislature to begin rewriting the
- Telecommunications Act now.
-
- Source: "The Orlando Sentinel", Orange County Edition.
- Saturday, March 2, 1996, Pages D-1, D-7.
-
- --
- Steven Bradley Better Business Bureau of Central Florida, Inc.
- Systems Administrator 1011 North Wymore Road, Suite 204
- Winter Park, Florida 32789
- steven@bbbcfl.oau.org (407) 621-3300 x310 Fax (407) 629-9334
- --
- Steven Bradley Better Business Bureau of Central Florida, Inc.
- Systems Administrator 1011 North Wymore Road, Suite 204
- Winter Park, Florida 32789
- steven@bbbcfl.oau.org (407) 621-3300 x310 Fax (407) 629-9334
-