Florida Mulls Implementation Of VoIP And Home Network Tax

by Glen Shapiro, LawAndTax-News.com, New York

28 June 2004

Following the failure earlier this year of Florida's House of Representatives to pass legislation postponing the enforcement of a tax on businesses and individuals using non-traditional communication methods, such as Voice over Internet Protocol (VoIP), officials from the state revenue department last week held a meeting to discuss the logistics of implementing such a tax, and the likely targets.

The statute, which had been on the books for nearly 10 years, was originally aimed at businesses which chose to employ satellite and other technologies to bypass the local telephone networks. However, experts have warned that the bill is worded so broadly that, in addition to VoIP, it could also take in networked computers and two-way radios.

The Florida Senate passed a bill preventing collection of the tax until 2006. However, Johnnie Bird, Speaker for the Florida House of Representatives, refused to hear the bill.

Speaking to Wired.com following Tuesday's meeting at the Florida Department of Revenue, which was attended by around 200 people, Chris Hart, spokesman for technology industry organization, ITFlorida observed that:

"The tax language is so broad that virtually any communication technologies in your home or office could be subject to this tax. It's difficult to imagine a more anti-technology, anti-business tax. It directly attacks the efficient use of information technology."

Recommended