State & Local Tax Blog

Internet Access Ban In Effect 7 More Years — What About VOIP?

A couple of items caught my eye in this bill that was signed to extend the moratorium on taxing Internet access. One has to do with sales taxes and the other with state income taxes.

Here’s one provision that impacts sales taxes:

“Internet access” does not include voice, audio or video programming, or other products and services using Internet protocol for which there is a charge, regardless of whether the charge is bundled with charges for “Internet access.”

In other words, it looks like video downloading services,VOIP, etc. would not be federally defined as “Internet Access”. So it would then be open season by the states on these services.

We have a copy of the actual law, we can .pdf to you if you would like it. Just ask.

Leave a Reply

Your email address will not be published.

What You Should Do Next

Have a state or local tax issue or question? Need help? Want peace of mind? We can help! Sign up for a free "What's Next" call and let us get to work for you.