Hello Everyone,
We purchase 10Gig waves for transport out of our datacenter and are trying
to figure out why the taxes on the circuits are so much. We are paying
around 60% additional in taxes and fee's on top of the cost of the circuit.
Ofcourse when we were negotiating pricing , it seemed like a great price
until we got our first bill, they forgot to mention that we would be paying
such fees.
It seems like these taxes would be for companies who would be using
transport services for voice, but we are all data. Is there any way to get
a tax exempt status? How come the same fee's do not apply to dark fiber? We
are in process of getting dark fiber to replace the transport circuits but
its going to take quite some time as we have a few more years on some of the
contracts. The dark fiber we do have there is no taxes at all. Can anyone
shed any light on this?
All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State.
Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can
Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history.
In regards to Dark Fiber.....
Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws.
Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State).
Regards.
Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, Fl 33155
Tel: 305 663 5518 x 232
Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net
I had to deal with this with an upstream once that was taxing me. Finally got it all worked out after sending in copies of the law and getting the CEO involved. However a year or two later I started to get taxed again when the company was bought out. Had to resend copies of the law (Fed and State) over to them again. I also had the full conversation with the previous CEO so I sent that over as well as he was now a VP under the new company.
Do to how much of a hassle I had to go through, I am guessing they still keep charging tax on other clients that probably should not have been!
Sincerely,
Mark Keymer
Typically you have to file once a year with the companies to let them know
you are tax exempt. As your company status may change.
Carlos Alcantar
Race Communications / Race Team Member
1325 Howard Ave. #604, Burlingame, CA. 94010
Phone: +1 415 376 3314 / carlos@race.com / http://www.race.com
How do we get tax-exempt status though, with ""ITFA / ITNA Exemption" like
faisel said?
There is no 'Certification' required for it..
All it requires is a 'declaration'....
1st Step.... Contact the Tax Dept. of your Carrier and ask them for the ITFA/ITNA exemption form.
You might get a hard time from the Front line.. but get to a Supervisor...
once you have the form, all you need to to is fill it out and sign it.
Regards.
Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, Fl 33155
Tel: 305 663 5518 x 232
Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net
I believe you don't need to pay FUSC charges if you're not the end-user of
the circuit.
Frank
499 from the fcc for federal as well as any local certs as that is state
to state. Note once you get your 499 you are required to file with them,
and pay the taxes. At the end of it you need to start charging your end
users tax's and filing them.
Carlos Alcantar
Race Communications / Race Team Member
1325 Howard Ave. #604, Burlingame, CA. 94010
Phone: +1 415 376 3314 / carlos@race.com / http://www.race.com