Original
Message 1/20
Date: 03-Sep-03 @ 04:24 PM -
Tax on LANs ?
Mad mad world......
Today's focus: The LAN tax
By Jeff Caruso
The state of Florida is mulling a rule that could result in
taxation of computer networks - both WAN and LAN.
The rule is taking businesses by surprise, according to a story
in the Orlando Business Journal:
The article says the state would tax networks 9.17%, and local
districts could add their own tax to it. What exactly would be
taxed? Either the lease payments or annual depreciation of
network equipment, according to the article.
The unusual proposal is apparently coming out of Florida's
struggles to figure out taxation of communications networks when
those networks are more than just plain old telephone service.
Taxing LANs, however, seems to be taking things a little too
far. If you're going to do that, why not tax the PCs and servers
connected to them? And do you also tax cable modems and home
networks?
To be sure, the Orlando Business Journal article indicates that
Florida officials are right now just floating this idea to see
how much businesses hate it. Hopefully, through this process
will come a meaningful discussion of what in communications
networks can be taxed - and what shouldn't.