Amended Internet Tax Ban Will Not Include VoIP

Spritzer writes "Yesterday, the House Judiciary Committee approved an amendment to the Internet Tax Freedom Act of 1998 which would prevent the tax ban from expiring. However, the amendment also eliminates tax protection for VoIP services. 'The amendment, offered by committee Chairman John Conyers Jr., a Michigan Democrat, would extend the ban on Internet access taxes until Nov. 1, 2011. ... The Conyers amendment would allow nine states with Internet access taxes to continue them. It would also narrow the definition of Internet access, excluding services such as VoIP from the tax ban.'"

Comments

Read my lips

[seanadams.com]

NOT NO BAN on new taxes, EXCEPT NOT on voip, but NOT after 2011.

Exclude VOIP?

[e4g4]

Hmm - how does Voice Over Internet Protocol not constitute internet access? Will this then be applicable to things like Skype, and other hybrid (i.e. video/voice/chat) VOIP services that don't resemble POTS so strongly?

Re:Exclude VOIP?

[Beyond_GoodandEvil]

Hmm - how does Voice Over Internet Protocol not constitute internet access?
You looking at this the wrong way, this isn't about rational laws, this is about states seeing a decline in revenue due to people giving up their (taxed)landlines for VOIP(currently untaxed). So to keep the state coffers full, we slip in an exemption for VOIP so states can keep collecting money on phone service.

When is VOIP not VOIP?

[Captain Zep]

The idea that some internet based services are taxable and some aren't, when there's no reliable way to classify them makes for a rather broken system.

If pure VOIP starts getting taxed, then it'll just be adjusted so that it's not technically a VOIP service. E.g. is it VOIP if it includes video? What about in-game voice systems? What if it does some random surfing in the background at the same time? Is a system that sends voice clips via email a VOIP system? What if I'm exchanging music or sound effects - do they count as a 'voice'?

Z.

Whoa There Cowboys

[HBergeron]

This marks a particularly sad moment in the history of News for Nerds political activism.

While I agree that specifically allowing taxation of voip "for which there is a charge" (the language in the actual law) is a bad idea, it was a bad idea back in 2003 when it was included in the LAST internet tax renewal that became law. The voip language in the current bill is just a restatement of what has been law for 4 years. The fact that an editor here, particularly an editor who feels comfortable passing on political stories, is ignorant of a pretty important provision in one of the most prominent pieces of technology legislation (and a one page piece of legislation at that) does not give a lot of aid and comfort to those who support the tech community on these issues.

Now, if you want to complain about something, this new House bill, and the one currently in the Senate Commerce committee (Not the Wyden (author of the original internet tax ban) Senate bill S.156, or Eshoo House bill H.743) both include a revised definition that specifically only covers services offered by ISPs, opening up non-isp web services (net radio, youtube, joost) to taxation. Big surprise, these narrower definitions are the ones championed by Verizon and ATT and the now ironically named "don't tax the web" coalition.