Re: Cost Recovery Surcharge & Va Personal Property Tax Recovery for IP Transit
On Jan 6, 2020, at 10:30, William Herrin <bill@herrin.us> wrote:
- Va Personal Property Tax Recovery (1.8%)
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.
Hi Bill, It’s called “business tangible personal property tax”, and it’s technically levied by the counties, not by the state (although authorized by the legislature, as all local government activities must be in a Dillon’s Rule state). Loudoun’s page on this (chosen at random because I live here... and can see The Cloud’s Cloud from my house) is at https://www.loudoun.gov/1556/Business-Tangible-Personal-Property-Tax -r
On Wed, Jan 8, 2020 at 2:58 AM Rob Seastrom <rs-lists@seastrom.com> wrote:
It’s called “business tangible personal property tax”, and it’s technically levied by the counties, not by the state (although authorized by the legislature, as all local government activities must be in a Dillon’s Rule state).
Loudoun’s page on this (chosen at random because I live here... and can see The Cloud’s Cloud from my house) is at https://www.loudoun.gov/1556/Business-Tangible-Personal-Property-Tax
Which when you crunch the numbers works out more or less to the sales tax they didn't pay when they bought that equipment online. Got it. Did this tax change unpredictably, or am I still safe saying it's deceitful to add a fee for it on top of the advertised and contracted service price? Regards, Bill Herrin -- William Herrin bill@herrin.us https://bill.herrin.us/
On 1/8/20 11:30 AM, William Herrin wrote:
Did this tax change unpredictably, or am I still safe saying it's deceitful to add a fee for it on top of the advertised and contracted service price?
IMO, there's no reason to expect this tax to be directly passed on to an end customer just like there's no reason to expect the company's income tax to be directly passed on to the end customer. It's a cost of doing business and needs to be included in the up-front negotiated rates. Sales tax is somewhat special in that regard as it occurs right at the point of purchase and is, in some areas at least, REQUIRED to be itemized to the customer. If it's not in the contract, I'd try to get out of it. -- Brandon Martin
participants (3)
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Brandon Martin -
Rob Seastrom -
William Herrin