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Verizon drops DSL surcharge Customer gripes lead to decision not to
charge DSL subscribers a "supplier surcharge."
After hearing complaints from customers, Verizon Communications has dropped
plans to impose a supplier surcharge on its DSL service, the company said
Wednesday. CNET 9/7/6
Millions in city funds at risk as phone tax ends LOCAL LEVIES TIED TO FEDERAL VERSION WON'T BE VALID More than 110 California communities including San Jose could lose millions of dollars in city funds when a little-known federal long-distance phone-service tax ends next month. Mercury News 6/23/6
Cities are targeting cell phones and the internet as new revenue sources Cell phone and Internet sales taxes are becoming new technology income sources for governments looking to shore up their fiscal positions. Newspaper articles across the United States are reporting how state and local governments are seeking new technology-based revenue streams. As this is an era of rising costs, governments are looking to add income from sources previously left untapped - even non-governmental organizations (NGOs). CityMayors.com 6/23/6
New Cell Phone Tax Cell phone users in Sunnyside may notice an additional tax on their bill in August. The city council voted to approve it. KAPPtv.com
Phone tax measure qualifies for September ballot Corvallis voters will have a say on the so-called phone tax after all. On Wednesday, the Benton County Elections Office confirmed that a referendum calling for a citywide vote on the City Council decision last month had qualified for the September ballot. Opponents of the 5 percent business tax on telecommunication services providers, including cell phones, residential lines and long-distance companies, needed to collect the signatures of 1,684 registered Corvallis voters. Last week, they submitted 3,887 names. Gazette Times 6/23/6
Phone-tax hike on way to board It will cost more for Machesney Park residents to call somebody under a plan a village committee moved to the full board for consideration Monday night. If approved by the full board, an additional 5 percentage-point tax would be added to every phone bill in the village, the maximum level allowed by state law. Rockford Register Star 6/23/6
Feds cut off phone tax after 108 years A pesky, century-old tax on your phone bill is finally being put to rest. The Treasury Department said Thursday that it will no longer collect a 3% federal excise tax on long-distance calls and would refund about $15 billion to taxpayers. USA Today 5/26/6
US to repeal phone tax, refund billions The U.S. Treasury Department on Thursday conceded a legal dispute over the 3 percent federal excise tax on long-distance telephone service and said $13 billion would be refunded to taxpayers. Reuters 5/25/6
Government to Stop Collecting Long-Distance Telephone Tax The Internal Revenue Service today announced that it will stop collecting the federal excise tax on long-distance telephone service. The tax on telephone services was first imposed in 1898. The current rate is 3% of the charges billed for these services. The IRS announcement follows decisions in five federal appeals courts holding that the tax does not apply to long-distance service as it is billed today. IRS 5/25/6
FET PODCAST: Attorney Thomas K. Crowe discusses the implications for telecom agents of the recent discontinuance of the federal excize tax on long distance phone calls.
click right-arrow to listen with your computer speakers or right-click here to
download the MP3
Treasury Announces End to Long-Distance Telephone Excise Tax The U.S. Treasury Department today announced it is conceding the legal dispute over the federal excise tax on long-distance telephone service. The Department of Justice will no longer pursue litigation and the Internal Revenue Service (IRS) will issue refunds of tax on long-distance service for the past three years. Taxpayers will be able to apply for refunds on their 2006 tax forms, to be filed in 2007. U.S. Treasury Department 5/24/6