Internet Tax Freedom Act - Internet Service Providers
In 1998, Congress passed a Federal law (Internet Tax Freedom Act) imposing a moratorium on
state and local taxation of Internet access. When the moratorium was issued a few states were
already taxing Internet access and they were allowed to continue to do so under a grandfather
clause in the bill. The states that are allowed to continue applying state and local taxes to Internet
access services are: New Mexico, North Dakota, Ohio, South Dakota, Texas, Wisconsin and
certain 'home-rule' cities in Colorado.
Changes for 2005
A new law made effective November 2, 2005 extends the Act and provides additional tax
reductions to telecommunications services associated with Internet access.
Key points:
As of November telecommunications services that are "purchased, used or sold by a provider of
Internet access for the provision of Internet access" are now allowed the same exemption from
state and local taxes as the Internet access.
QWEST products include:
ATM
DIA
Digital Switched Service (DSS)
DSL
Frame Relay
ISDN PRI
IQ Networking
Mega Central
Private Line
Uniform Access Solutions
VoIP Integrated Access
CTG3 - www.ctg3.com - (800) 775-9312
ITFA Certificate of
Exemption
Filing your Internet Tax
Freedom exemption is
easy. Just click on the
download button and you
will be guided through
the process. Remember
that in order to get credits
for taxes paid in the past,
you will need to file your
exemption as quickly as
possible!
