nanog mailing list archives

Re: Transport Fee's (Taxes and random telecom fee's)


From: Faisal Imtiaz <faisal () snappydsl net>
Date: Fri, 14 Sep 2012 11:15:10 -0400


All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State.

Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history.

In regards to Dark Fiber.....
Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws.

Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State).

Regards.

Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, Fl 33155
Tel: 305 663 5518 x 232
Helpdesk: 305 663 5518 option 2 Email: Support () Snappydsl net

On 9/14/2012 10:29 AM, A. Pishdadi wrote:
Hello Everyone,

We purchase 10Gig waves for transport out of our datacenter and are trying
to figure out why the taxes on the circuits are so much. We are paying
around 60% additional in taxes and fee's on top of the cost of the circuit.
Ofcourse when we were negotiating pricing , it seemed like a great price
until we got our first bill, they forgot to mention that we would be paying
such fees.
It seems like these taxes would be for companies who would be using
transport services for voice, but we are all data. Is there any way to get
a tax exempt status? How come the same fee's do not apply to dark fiber? We
are in process of getting dark fiber to replace the transport circuits but
its going to take quite some time as we have a few more years on some of the
contracts. The dark fiber we do have there is no taxes at all. Can anyone
shed any light on this?





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