NANOG,
We've recently signed contract of colocation + IP transit with a local provider in Northern Virginia.
Co-location services is okay but we found something unusual on our IP transit invoices.
- Va Personal Property Tax Recovery (1.8%)
- Cost Recovery Surcharge (3%)?
We've talked with our providers but they told us:
> we use a tax engine that provides the taxes/rates to our services. If you would like further language on them, please let me know and I will have some one send that over.
Has anyone else ran into this? If this is a legit "surcharge"?
Also, IP transit isn't a property, why is there a "Property Tax" for IP transit?
Hi Siyuan,
If it's not written in to your contract, it's a breach of contract. Either way it's a deceitfully imposed surcharge, not a state tax. Virginia does not tax the sale of services like transit and colo. More, the only personal property tax I've heard of in Virginia is on motor vehicles.