Re: MetroE and Telephone Taxes

[Jared Mauch <jared () puck nether net>]

> On Feb 29, 2016, at 7:20 PM, Sam Norris <Sam () SanDiegoBroadband com> wrote:
>
> Hey all,
>
> My provider here in SoCal is charging me 8% or so telephone taxes on our MetroE
> products.  This seems fishy to me and I can't find any cut and dry rules about
> private Ethernet / MetroE being under these rules.  The same provider selling
> internet / DIA has no taxes whatsoever.
>
> Anyone out there getting charged ULS and other telephone taxes on MetroE
> circuits?  Or can anyone point me to somewhere that shows that it shouldn't be
> charged telephone taxes?  Assume there are no voip calls traversing these
> circuits.  I believe ULS is Federal, the other 3-5% is CA taxes on CLECs.

First of all, you should be consulting with an accountant and/or lawyer.

Regarding internet service itself, the tax free status was recently made
permanent.

http://www.lexology.com/library/detail.aspx?g=d241fbfa-3f0a-4ecd-ae9a-7af255319062

The related bill:

https://www.govtrack.us/congress/bills/114/hr644

IANAL, and I’m not your accountant either.

- Jared