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Florida Proposes Taxing Local LANs

Vellmont writes "From the state that brought you the 2000 presidential election debacle, now comes the proposal to tax your LAN. The Orlando Business Journal is reporting that the the state of Florida is thinking about putting a 9% tax on LANs within the state. Exactly what they will be taxing isn't clear, since the tax amounts to 9% of... something. Will taxing the electrical wires within your home be next?"

23 of 637 comments (clear)

  1. Fark says it best... by Wakko+Warner · · Score: 5, Funny

    [FLORIDA]. What more can you say about a state that can't even figure out voting?

    --
    "Remember when the U.S. had a drug problem, and then we declared a War On Drugs, and now you can't buy drugs anymore?"
    1. Re:Fark says it best... by killthiskid · · Score: 5, Interesting
      The proposal has its roots in a legislative directive handed down two years ago. It aimed to modernize how the state taxes communications.

      This ranks right up there with Minnesota regulating VOIP like a normal telephone service.

      Why the hell do law makers seem to think that every new technology needs to regulated to hell, or treated like some form of existing technology??? The internet LIVES the way it does today because it happened so damn fast than lawmakers couldn't keep up...

      The proposed rule pushes the definition of communications systems to include local area networks, or LANs, as well as wide area networks, or WANs, which connect computers across distances. Practically any office with two computers will have a local area network...
      That brings them under the purview of the proposed rule, which includes computer networks as "substitute communications systems"

      A substitue comm system? They must have needed a catch all to ensure they could screw every penny of tax of everything out there. Would this cover two tin cans with a string between them? I'd hate to see that go to court, I'm sure they'd rule it taxable.

      I can understand the need for a 'tax' on very much public infrastructures like a massive telephone land line system or cable systems... but why would you need to tax someone extra for laying out 4 pair wire? Do in house telephone systems get covered? Do you have to have a certain type of equipment to 'qualify'?

    2. Re:Fark says it best... by fmileto · · Score: 5, Funny

      I believe a H. Simpson captured it in the phrase "Florida. That's America's wang."

    3. Re:Fark says it best... by scoove · · Score: 5, Interesting

      Why? Because they can and it makes them feel important.

      Don't mean to be redundant, but there's a very good (not good good, but "explains things" good) reason they do: they're paid to do so.

      Minnesota imposed VoIP regulations to protect the incumbant carriers. ILECs are aggressive at lobbying and throw a lot of money around during election time. (After all, they've got to spend some of that money the fleeced you on your business line somewhere).

      Florida's proposal is bizarre. Granted, the ILEC tax model is old, though they're still finding creative ways to pump back money to the old boy network like re-inventing the rural telephone fund to tax broadband service and give the money back to ILECs in exchange for their promise to think about rural customers occasionally. (In an odd twist, our company which provides service to half a state in fly-over-country, would be taxed in order to give the money to ILECs who don't offer broadband! Go figure...). But this Florida one even has me puzzled. It's as loopy as use tax (sales tax for sales that a state does not have legal jurisdiction for, and then creates a tax on using products, but exempts you if you paid in-state sales tax, meaning the only people that pay use tax are interstate purchases which didn't pay sales tax. How's that for simple?)

      Since nobody wants to cut budgets in state gubmints, it makes you wonder what's next. Don't be surprised if we see:

      - a simple "per-foot" tax on cable. We'll have to have 14-page exemption forms for farmers who have long rural distances to run between the barn and the house, of course.

      - a MIPS tax, socking it to the rich suckers who can afford that top-of-the-line processor (sort of a PC SUV tax)

      - CPU cycle credits: download and run GUBMINT.EXE in the background, allowing the state's tax computers to load share when your PC is idle, and get a $25 annual rebate on your LAN tax. (Of courses, the state will hire consultants from Intuit to write spyware that measures your LAN length and other taxable details and reports back thru the exe program).

      Come on, public servants. Certainly you can find more creative ways to part us from our hard-earned money while you play solitare all day at the DMV!

      *scoove*

  2. Which state? by Anonymous Coward · · Score: 5, Funny

    From the state that brought you the 2000 presidential election debacle

    Would that be Texas?

    1. Re:Which state? by Anonymous Coward · · Score: 5, Funny

      Don't blame us, we tried to keep him home.

  3. Who the hell is going to enforce this? by Bones3D_mac · · Score: 5, Funny

    Are they going to audit anyone with a computer and an email address?

    --


    8==8 Bones 8==8
  4. About that rate. by Black+Parrot · · Score: 5, Funny


    > Exactly what they will be taxing isn't clear, since the tax amounts to 9% of... something.

    Clearly, they'll charge you 94,371.84 bytes per megabyte.

    Presumably you can pay by simply sending them a big e-message.

    --
    Sheesh, evil *and* a jerk. -- Jade
  5. what they are taxing... by ih8apple · · Score: 5, Informative

    according to this article: "Computer networks would be taxed at that percent on either annual lease payments or depreciation."

  6. Nobody Expects... by Lawrence_Bird · · Score: 5, Funny

    The Lanquisition!

    NOBODY expects the LANquisition! Our chief weapon is surprise...surprise and fear...fear and surprise.... Our two weapons are fear and surprise...and ruthless efficiency.... Our *three* weapons are fear, surprise, and ruthless efficiency...and an almost fanatical devotion to the IRS.... Our *four*...no... *Amongst* our weapons.... Amongst our weaponry...are such elements as fear, surprise.... I'll come in again.

  7. Misses the point of communications taxes... by MadCow42 · · Score: 5, Insightful

    The original intent of most communications taxes was to subsidize the government's cost for the publically provided communications infrastructure... if the gov't is going to be supplying me with a free GigaBit ethernet LAN, then sure, they can tax it's use.

    Get with the program people... sounds as wacky as Seattle's proposed tax on espresso!

    MadCow.

    --
    I used to have a sig, but I set it free and it never came back.
  8. Don't fret, folks. by Dirtside · · Score: 5, Funny

    This is all just an attempt to take back the coveted title of The Doofus State from California. We reacquired it thanks to our upcoming election. (If Schwarzenegger wins, it's Total Recall, I suppose.)

    --
    "Destroy science and religion. Science would re-emerge exactly the same; but not religion." - Penn Jillette, paraphrased
  9. Recount! by SuperBanana · · Score: 5, Funny
    Exactly what they will be taxing isn't clear, since the tax amounts to 9% of... something

    If it's by the byte, for heavily black/jewish democratic networks 1MB= 1024kB. On republican networks 1MB will = 1000kB.

    Oh...and will they count hanging patch cords? What about ones that are plugged in, but haven't fully clicked into the port, and fall out during counting?

    God help Florida users if the government learns of half versus full duplex...

  10. Good luck by shogarth · · Score: 5, Interesting
    So you get a bunch of legistators in a room and they decide to implement a tax based on lease payments or depreciation. Good luck to them.

    There are some amazingly difficult terminology problems for them to define:
    • For calculating depreciation, what is the lifespan of the cable plant? Does fiber have a longer lifespan than copper? If so, how much longer?
    • Is the labor cost of installing the cable plant taxed or just the materials?
    • What is the lifespan of a switch/router? How about a VPN server? A NAT box? A firewall?
    • Are servers included as part of the LAN? If so, how do you differentiate between a "server" and a "desktop?"
    • If you are leasing, do you get taxed on the service/support component or just the equipment costs?
    • Since vendors don't report these sales to the municipality, how in the Hell are they going to enforce this?
  11. Re:Maybe I have missed somthing... by DAldredge · · Score: 5, Interesting

    Because it is easier than cutting spending.

  12. Here's a good reason WHY this is being attempted. by SilentMajority · · Score: 5, Insightful

    Here's why you'll start seeing more crazy-sounding initiatives like this "lan tax":

    1. Outsourcing jobs overseas = massive amounts of lost taxes for USA. Since IT jobs were hit the hardest and California was the hottest IT area, it doesn't take a genius to figure out one substantial reason why they're in a budget crisis (which is a taste of things to come for our federal budget).

    2. Huge tax cuts without requirements on how it should be spent = lost tax revenues that might not be spent at all or spent in ways that improve the economy. This is kinda like giving a total stranger $100K and expecting him to spend it in ways that help you while not giving him any expectations on how to spend it (i.e. he can spend it all on building offshore infrastructure to move even more US jobs overseas!).

    3. Our president's failure to build consensus in the UN to attack Iraq and then being exposed for making false justification statements means that other countries are less willing to send their young soldiers to die in Iraq. This means more of OUR taxes going to pay for this ongoing fiasco which will likely INCREASE the odds of future terrorist attacks & boycotts against US-made products.

    4. and so on including our mounting budget deficit which is like running up a huge credit card bill with mounting interest that YOU and I must pay later with...you guessed it--more freaking taxes than EVER given the aging demographics of babyboomers and their impact on social security, medicare and reduced collection of income taxes from them as they retire.

    NOTE: $100K is roughly how much VP. Cheney will save in taxes in one year due to the Bush tax cuts. Since that money has to come from somewhere, many of our brave soldiers sacrificing their lives in Iraq will receive PAY CUTS of around $200/month.

    Don't be surprised if you find important services like public schools and homeland security facing massive budget cuts in the future--it doesn't HAVE to happen but I don't see a way out if we continue managing our government in the most idiotic way I've seen in decades.

    I feel sorry for the poor soul who'll get elected as our president next because he's gonna have an almost impossible task on his hands (he'll need to take massive and very unpopular action to fix this mess being created by the current politicians).

  13. Re:Maybe I have missed somthing... by Anonymous Coward · · Score: 5, Funny

    Because we need to build multi-billion dollar missile defense systems that don't even work to protect us from terrorists who don't even own sophisticated missile systems. It's all very logical, really.

  14. Re:Maybe I have missed somthing... by jc42 · · Score: 5, Insightful

    Because it wasn't taxed yet

    Where do you live?

    Around here, when we were first permitted to get to the Internet via a phone line, there was already a tax on every phone bill. Then the cable folks supplied Internet service, and part of every cable bill is a tax. I've bought a few wires (thin ethernet first, then the hub that the vendors have forced on us for the last few years, all to connect a few home computers, and part of every purchase is a tax.

    We need electricity to run our computers, and part of every electric bill is - you guessed it - a tax.

    So what they're talking about is a special, higher tax for those of us on the Net. Every little bit of the net has been taxed right from the start; they just want networks taxed even higher than any other sort of comm or power equipment.

    --
    Those who do study history are doomed to stand helplessly by while everyone else repeats it.
  15. Ok Florida by Anonymous Coward · · Score: 5, Funny

    you can pass the crack pipe back to SCO now.

  16. It's been taxed several times. by The+Monster · · Score: 5, Insightful
    Because it wasn't taxed yet
    Huh? I must have missed something. You mean they don't collect sales tax on hubs, switches, routers, Cat 5 cable & sundries? You mean that the people who install that stuff don't pay income tax? Where the WAN is traversing copper owned by the telcos, is it exempt from the special taxes they're already paying?

    This reminds me of the bizarre logic that was used by advocates of the 'Intangibles' tax we collect here in KS. They said that if you invested your money in farm land

    Gotta include the farmers if you want something passed in the Land of Ahs
    you'd pay property taxes on it, but if you just put it in the bank and 'clipped coupons'
    That's populist code for the idle rich, who don't do 'honest work', which is apparently defined as something that gets you smelling like the cattle that outnumber the humans in this state, never you mind that without investors, there aren't any new jobs created for people to honestly, or even 'dishonestly' work (by using their brains instead of their muscles)
    you don't pay them, so it's only fair to tax intangibles too.

    This reasoning completely ignores the fact that the capital that your investment goes to is already subject to property tax, and taxing intanbibles qua intangibles is double taxation, just as taxing computer networks is as well.

    Before anyone clicks on the Reply to This link to pipe up that it's double taxation on the telcos too... yes, it is. It's an extra tax they pay in exchange for having a government-mandated monopoly. They pass that tax along to their captive customer base, which is oblivious to the fact that businesses don't pay taxes, they collect them.

    --

    [100% ISO 646 Compliant]
    SVM, ERGO MONSTRO.

  17. Re:Maybe I have missed somthing... by L0neW0lf · · Score: 5, Funny

    Because senior citizens rarely use LANs, so the AARP and won't bitch about it much. ;) Don't you know ANYTHING about how Florida works?

    --

    Never look down your nose at others. Someday, someone is bound to see your boogers.
  18. Many regulations solve real problems by coyote-san · · Score: 5, Insightful

    Don't be so quick to dismiss all regulations as unnecessary interference. Some are nothing but lobbyists freezing out the competition, but others addressed real problems.

    The bottom line is if it walks like a duck and quacks like a duck and is being baked with an orange glaze and served to hungry diners, it's a duck. Paypal is a bank and the sooner it is treated as one the better off everyone will be -- too many people have been burned by arbitrary and opaque dispute resolution policies. VoIP that replaces conventional phone service *is* phone service and the users need to have the same protections (e.g., against unauthorized wiretaps, arbitrary charge dispute resolutions, etc.) as regular phone service users, etc.

    --
    For every complex problem there is an answer that is clear, simple, and wrong. -- H L Mencken
  19. Re:Maybe I have missed somthing... by TotallyUseless · · Score: 5, Insightful
    Even worse, this has nothing to do with being on the 'net, as in internet. From what I can tell, even if your network isn't connected to the internet, you are still liable for the LAN tax. I fail to understand what it is that they even think they are trying to tax. This is one of the most outgrageous tax plans I've ever heard of. It's reasoning for existence doesn't even have a basis in reality. How can they tax you for sending packets internally? The whole thing sounds like it was cooked up by one of those people that doesnt even know what a network, much less the internet is.

    'Oh, so they have the internet on computers now do they?'

    I think that quote about sums up this plan.

    --

    Time for some tasty Shiner Bock!