Transport Fee's (Taxes and random telecom fee's)
Hello Everyone, We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State. Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history. In regards to Dark Fiber..... Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws. Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State). Regards. Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, Fl 33155 Tel: 305 663 5518 x 232 Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net On 9/14/2012 10:29 AM, A. Pishdadi wrote:
Hello Everyone,
We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
I had to deal with this with an upstream once that was taxing me. Finally got it all worked out after sending in copies of the law and getting the CEO involved. However a year or two later I started to get taxed again when the company was bought out. Had to resend copies of the law (Fed and State) over to them again. I also had the full conversation with the previous CEO so I sent that over as well as he was now a VP under the new company. Do to how much of a hassle I had to go through, I am guessing they still keep charging tax on other clients that probably should not have been! Sincerely, Mark Keymer On 9/14/2012 8:15 AM, Faisal Imtiaz wrote:
All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State.
Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history.
In regards to Dark Fiber..... Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws.
Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State).
Regards.
Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, Fl 33155 Tel: 305 663 5518 x 232 Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net
On 9/14/2012 10:29 AM, A. Pishdadi wrote:
Hello Everyone,
We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
Typically you have to file once a year with the companies to let them know you are tax exempt. As your company status may change. Carlos Alcantar Race Communications / Race Team Member 1325 Howard Ave. #604, Burlingame, CA. 94010 Phone: +1 415 376 3314 / carlos@race.com / http://www.race.com -----Original Message----- From: Mark Keymer <mark@viviotech.net> Date: Friday, September 14, 2012 9:53 AM To: "nanog@nanog.org" <nanog@nanog.org> Subject: Re: Transport Fee's (Taxes and random telecom fee's) I had to deal with this with an upstream once that was taxing me. Finally got it all worked out after sending in copies of the law and getting the CEO involved. However a year or two later I started to get taxed again when the company was bought out. Had to resend copies of the law (Fed and State) over to them again. I also had the full conversation with the previous CEO so I sent that over as well as he was now a VP under the new company. Do to how much of a hassle I had to go through, I am guessing they still keep charging tax on other clients that probably should not have been! Sincerely, Mark Keymer On 9/14/2012 8:15 AM, Faisal Imtiaz wrote:
All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State.
Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history.
In regards to Dark Fiber..... Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws.
Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State).
Regards.
Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, Fl 33155 Tel: 305 663 5518 x 232 Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net
On 9/14/2012 10:29 AM, A. Pishdadi wrote:
Hello Everyone,
We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
How do we get tax-exempt status though, with ""ITFA / ITNA Exemption" like faisel said? On Fri, Sep 14, 2012 at 4:23 PM, Carlos Alcantar <carlos@race.com> wrote:
Typically you have to file once a year with the companies to let them know you are tax exempt. As your company status may change.
Carlos Alcantar Race Communications / Race Team Member 1325 Howard Ave. #604, Burlingame, CA. 94010 Phone: +1 415 376 3314 / carlos@race.com / http://www.race.com
-----Original Message----- From: Mark Keymer <mark@viviotech.net> Date: Friday, September 14, 2012 9:53 AM To: "nanog@nanog.org" <nanog@nanog.org> Subject: Re: Transport Fee's (Taxes and random telecom fee's)
I had to deal with this with an upstream once that was taxing me. Finally got it all worked out after sending in copies of the law and getting the CEO involved. However a year or two later I started to get taxed again when the company was bought out. Had to resend copies of the law (Fed and State) over to them again. I also had the full conversation with the previous CEO so I sent that over as well as he was now a VP under the new company.
Do to how much of a hassle I had to go through, I am guessing they still keep charging tax on other clients that probably should not have been!
Sincerely,
Mark Keymer
On 9/14/2012 8:15 AM, Faisal Imtiaz wrote:
All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State.
Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history.
In regards to Dark Fiber..... Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws.
Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State).
Regards.
Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, Fl 33155 Tel: 305 663 5518 x 232 Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net
On 9/14/2012 10:29 AM, A. Pishdadi wrote:
Hello Everyone,
We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
There is no 'Certification' required for it.. All it requires is a 'declaration'.... 1st Step.... Contact the Tax Dept. of your Carrier and ask them for the ITFA/ITNA exemption form. You might get a hard time from the Front line.. but get to a Supervisor... once you have the form, all you need to to is fill it out and sign it. Regards. Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, Fl 33155 Tel: 305 663 5518 x 232 Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net On 9/14/2012 7:25 PM, A. Pishdadi wrote:
How do we get tax-exempt status though, with ""ITFA / ITNA Exemption" like faisel said?
On Fri, Sep 14, 2012 at 4:23 PM, Carlos Alcantar <carlos@race.com> wrote:
Typically you have to file once a year with the companies to let them know you are tax exempt. As your company status may change.
Carlos Alcantar Race Communications / Race Team Member 1325 Howard Ave. #604, Burlingame, CA. 94010 Phone: +1 415 376 3314 / carlos@race.com / http://www.race.com
-----Original Message----- From: Mark Keymer <mark@viviotech.net> Date: Friday, September 14, 2012 9:53 AM To: "nanog@nanog.org" <nanog@nanog.org> Subject: Re: Transport Fee's (Taxes and random telecom fee's)
I had to deal with this with an upstream once that was taxing me. Finally got it all worked out after sending in copies of the law and getting the CEO involved. However a year or two later I started to get taxed again when the company was bought out. Had to resend copies of the law (Fed and State) over to them again. I also had the full conversation with the previous CEO so I sent that over as well as he was now a VP under the new company.
Do to how much of a hassle I had to go through, I am guessing they still keep charging tax on other clients that probably should not have been!
Sincerely,
Mark Keymer
On 9/14/2012 8:15 AM, Faisal Imtiaz wrote:
All Communication Circuits are subject to Communication Taxes, as per Tax laws of that State.
Having said that... if this communication circuit is carrying Internet Traffic, you can contact the Carrier and Ask them to provide you the forms so that you can Claim "ITFA / ITNA Exemption" ...(if you are not in a grandfathered state) Google for "Internet Tax Freedom Act" and review the Wikipedia article for more details and history.
In regards to Dark Fiber..... Active Circuits = i.e. circuits where signaling is provided by the Carrier are considered to be Communication Circuits and are subject to Communication taxes, as per the State Laws.
Dark Fiber is considered to be an asset purchase .. i.e. like leasing Office Space/ Automobile / or Machinery... and as such the Lease Payments are subject to Sales Taxes only (again, details may vary from State to State).
Regards.
Faisal Imtiaz Snappy Internet & Telecom 7266 SW 48 Street Miami, Fl 33155 Tel: 305 663 5518 x 232 Helpdesk: 305 663 5518 option 2 Email: Support@Snappydsl.net
On 9/14/2012 10:29 AM, A. Pishdadi wrote:
Hello Everyone,
We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
I believe you don't need to pay FUSC charges if you're not the end-user of the circuit. Frank -----Original Message----- From: A. Pishdadi [mailto:apishdadi@gmail.com] Sent: Friday, September 14, 2012 9:30 AM To: NANOG Subject: Transport Fee's (Taxes and random telecom fee's) Hello Everyone, We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
499 from the fcc for federal as well as any local certs as that is state to state. Note once you get your 499 you are required to file with them, and pay the taxes. At the end of it you need to start charging your end users tax's and filing them. Carlos Alcantar Race Communications / Race Team Member 1325 Howard Ave. #604, Burlingame, CA. 94010 Phone: +1 415 376 3314 / carlos@race.com / http://www.race.com -----Original Message----- From: Frank Bulk <frnkblk@iname.com> Date: Friday, September 14, 2012 9:07 PM To: "'A. Pishdadi'" <apishdadi@gmail.com>, "nanog@nanog.org" <nanog@nanog.org> Subject: RE: Transport Fee's (Taxes and random telecom fee's) I believe you don't need to pay FUSC charges if you're not the end-user of the circuit. Frank -----Original Message----- From: A. Pishdadi [mailto:apishdadi@gmail.com] Sent: Friday, September 14, 2012 9:30 AM To: NANOG Subject: Transport Fee's (Taxes and random telecom fee's) Hello Everyone, We purchase 10Gig waves for transport out of our datacenter and are trying to figure out why the taxes on the circuits are so much. We are paying around 60% additional in taxes and fee's on top of the cost of the circuit. Ofcourse when we were negotiating pricing , it seemed like a great price until we got our first bill, they forgot to mention that we would be paying such fees. It seems like these taxes would be for companies who would be using transport services for voice, but we are all data. Is there any way to get a tax exempt status? How come the same fee's do not apply to dark fiber? We are in process of getting dark fiber to replace the transport circuits but its going to take quite some time as we have a few more years on some of the contracts. The dark fiber we do have there is no taxes at all. Can anyone shed any light on this?
participants (5)
-
A. Pishdadi -
Carlos Alcantar -
Faisal Imtiaz -
Frank Bulk -
Mark Keymer