RE: [smartBridges] Taxing Monthly Access

[Dave Covert]

Actually, in Texas, labor is taxable as well... a business partner of mine got bit on an audit several years ago for not taxing the labor, even tho he was told he didn't need to (lesson: charge tax, ask questions later). For the first $25 thing we just have two line items on the statement. One that says 'Tax exempt access' and one that says 'Access'. All customers get the same 'Tax expemt' line, the second line depends on the customer's service level.   For New Mexico, check this out: http://www.ncsl.org/programs/fiscal/intertax.htm or maybe you could ask these guys: http://www.nmia.com/agreemnt.pdf   According to http://www.cbo.gov/showdoc.cfm?index=4434&sequence=0    'The Internet Tax Freedom Act (ITFA) currently prohibits state and local governments from imposing taxes on Internet access until November 1, 2003. The ITFA, enacted as Public Law 105-277 on October 21, 1998, also contains an exception to this moratorium, sometimes referred to as the "grandfather clause," which allows certain state and local governments to tax Internet access if such tax was generally imposed and actually enforced prior to October 1, 1998.'   Those Grandfathered are: '...10 states (Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas, Washington, Wisconsin) and several local jurisdictions in Colorado, Ohio, South Dakota, Texas, Washington, and Wisconsin are currently collecting such taxes ...'   Dave Home Wireless -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]On Behalf Of Gloria Vester Sent: Sunday, October 26, 2003 10:59 AM To: [EMAIL PROTECTED] Subject: RE: [smartBridges] Taxing Monthly Access In Texas, the first $25 of Internet access is not taxed, everything over that is, which makes billing a nightmare.  The labor is not taxed, but the equipment is.  I guess each state is different.   Gloria   -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Bobby Bounds Sent: Sunday, October 26, 2003 10:56 AM To: [EMAIL PROTECTED] Subject: [smartBridges] Taxing Monthly Access   Who is charging state tax for monthly access fees? What should be the standard? Charge tax or don't charge tax. Here in New Mexico we have a 'gross receipts tax' and really screwed up tax laws. This gross receipts tax gets applied to almost everything. Also, should the setup fee be taxed?     Bobby Bounds Airwave Internet, LLC