Re: Cost Recovery Surcharge & Va Personal Property Tax Recovery for IP Transit

[Siyuan Miao <aveline () misaka io>]

Tried again and failed again. Perhaps it's time to go to CoreSite directly
and cancel the contract.

> Cost Recovery Surcharge (CRS) is to recover costs charged to <REDACTED>
by the infrastructure providers to comply with government regulatory
requirements and proceedings, including costs associated with
administration and support, compliance and reporting obligations. This also
includes additional charges for Federal Regulatory Fees to recover direct
and indirect costs associated with government programs including regulatory
fees and expenses assessed by the FCC, such as fees to fund
telecommunications services for the speech and hearing-impaired, North
American Numbering Plan administration, FCC Regulatory Assessment and other
regulatory fees. The CRS rate is 3.0%. VA Property Tax Recovery (PTR) helps
to recover costs assessed on network facilities operators and related
charges incurred from our underlying carriers, including government
property tax assessments, franchise fees, right-of-way fee costs, network
security and infrastructure management. The PTR rate is 1.8%.

Thanks guys for helping us figure this out.

On Mon, Jan 6, 2020 at 11:56 PM Siyuan Miao <aveline () misaka io> wrote:

> I've checked my contract and there's a line:
>
> > If <redacted>’s costs to provide services to Customer increase due to
> reasons beyond <redacted>’s control, including annual escalations imposed
> by facility providers (often referred to as “Facility Cost Recovery
> Surcharges”), <redacted> has the right to increase the fees paid by
> Customer to cover such costs.
>
> > If any local, state, national, international, public or quasi-public
> governmental entity or foreign government or its political subdivision
> imposes any taxes (excluding taxes based on <redacted>’s net income or
> capital or any property taxes), fees, surcharges, or other charges or
> impositions on <redacted> as a result of <redacted>’s sale of Services or
> Customer’s use of Services, Customer shall pay any such impositions
> (“Additional Charges”) and indemnify <redacted> from any liability or
> expense associated with the Additional Charges. Taxes that arise in any
> jurisdiction, including, without limitation, value added, consumption,
> sales, use, excise, access, bypass, franchise, or other taxes, fees,
> duties, charges or surcharges, however designated, imposed on, incident to,
> or based upon the provision, sale or use of the Service.
>
> Though, I don't think it's okay to pay CRS and property tax for IPT
> service.
> Will try to negotiate with them again.
>
> Honestly, it's my first time to see these BS. We never have any similar
> issues with other providers.
>
> On Mon, Jan 6, 2020 at 11:29 PM William Herrin <bill () herrin us> wrote:
>
> > On Mon, Jan 6, 2020 at 6:40 AM Siyuan Miao <aveline () misaka io> wrote:
> >
> > > NANOG,
> > >
> > > We've recently signed contract of colocation + IP transit with a local
> > > provider in Northern Virginia.
> > >
> > > Co-location services is okay but we found something unusual on our IP
> > > transit invoices.
> > >
> > > - Va Personal Property Tax Recovery (1.8%)
> > >
> > > - Cost Recovery Surcharge (3%)?
> > >
> > > We've talked with our providers but they told us:
> > >
> > > > we use a tax engine that provides the taxes/rates to our services. If
> > > you would like further language on them, please let me know and I will have
> > > some one send that over.
> > >
> > > Has anyone else ran into this? If this is a legit "surcharge"?
> > > Also, IP transit isn't a property, why is there a "Property Tax" for IP
> > > transit?
> >
> > Hi Siyuan,
> >
> > If it's not written in to your contract, it's a breach of contract.
> > Either way it's a deceitfully imposed surcharge, not a state tax. Virginia
> > does not tax the sale of services like transit and colo. More, the only
> > personal property tax I've heard of in Virginia is on motor vehicles.
> >
> > Regards,
> > Bill Herrin
> >
> > --
> > William Herrin
> > bill () herrin us
> > <https://bill.herrin.us/>
> > https://bill.herrin.us/