From Deseret News archives:
States fear tax effects of voice-over-Net services
Phone plans could cost locals billions in lost revenues
Rep. Chris Cannon, R-Utah, who for years has tried to block taxes on Internet access because he says they would stifle its growth, is among those looking at the controversy.
And he believes in protecting the emerging Internet phone services.
Cannon, chairman of the House Judiciary Subcommittee on Commercial and Administrative Law, notes that several states are already attempting to regulate and possibly tax them. But, he said, "I call into question whether VoIP" shorthand for "Voice over Internet Protocol" "should be subject to state taxation."
He added, "Prompt action is necessary to promote rather than to undermine the development of this technology."
During a hearing on Capitol Hill, chaired by Cannon, Internet phone service companies agreed with that stance but the states protested.
Stephen M. Cordi, assistant comptroller of Maryland representing an association of the 50 states' tax administrators, said, "It is expected that up to one-third of traditional voice traffic would migrate to VoIP within five years."
He said that "would have a substantial detrimental revenue impact on states and political subdivisions. It would, in fact, constitute a de facto repeal by the Congress of an entire category of taxes on which states and localities have long relied."
Cordi also such an exemption "would discriminate against other providers of voice communications services using technologies that are subject to tax."
But John J. Langhauser, chief counsel of AT&T's consumer services group, which has launched an Internet phone service called AT&T CallVantage, said, "Imposing today's inflated access charges on nascent VoIP providers would severely impede growth." He called for light-handed regulation.
However, he said the companies realize they still "must meet important social policies. Providing access for the disabled, enabling public safety (911) response and cooperating with lawful requests for information from law enforcement are issues that the industry can and is working to resolve."
James Kirkland, senior vice president of Covad Communications, said Internet phone services could offer revolutionary improvements, if regulation does not interfere.
Comments
- Dixie campus briefs 1:10 a.m.
- Westminster campus briefs 1:09 a.m.
- UVU campus briefs 1:07 a.m.
- Utah Utes campus briefs 1:07 a.m.
- Visit to paradise nightmarish for Ags 12:32 a.m.
- Utes struggling to shake starts 12:31 a.m.
- Cougars' execution flawless 12:30 a.m.
- Utah Jazz fall apart against Kings 12:17 a.m.
- 3A football: Tigers pull away 12:12 a.m.
- Editorial: 'Immigrant' children needy 12:12 a.m.
- Gay advocates trek to LDS office
207 - Dirk does dirty work in Dallas
190 - Lobo suspended
171 - Speed has never been BYU's game
136 - Cougars crush hapless Cowboys
128 - House passes health care bill
111 - RSL rallies to advance
102 - Prep football: San Juan vs. S. Sevier
102 - Thousands protest health bill
100 - Provo company innovating engines
98
Why do so many people live so close to refineries in Utah and elsewhere?
NASA's Stardust probe continues to bring new knowledge about the nature...
Nothing proposed would keep young adults from learning of the reality of sex,...
the only "decent" team we played we lost to? I guess that Air Force isn't a...
I am watching the game again, and it is awesome!!!
I can't help but laugh inside when I read comments from YBU/TCU fans who...
(from the independant) I like Dennis Miller.... and Bill Maher, although I...
As a BYU alumnus, I can't justify to myself ever donating another dollar to...
Not a chance. Don't get me wrong they are both studs, but if Asiata wasn't...
Titan Fan, sorry that some of your best players got hurt. I hope they...
So sad how fear based so many are.
Will the Jazz even make the playoffs this year. The way they are playing it...


You can be the first to comment on this story.