Following the end of consequences for the tax system?
A decision by the Federal Court this week, the Baltimore impose a phone company via the Internet could be pushed to consider other jurisdictions similar charges, a city lawyer and lobbyist for the industry said yesterday.
Wednesday, U.S. District Judge J. Frederick Motz issued an opinion VONAGE Inc. said on Voice over Internet Protocol - VoIP - phone service, must pay, Baltimore City’s telecommunications monthly fee $ 3.50 per line like any other customer service telephone d ‘ stuff.
VoIP converts voice signals, a digital telephone, data on the Internet. VONAGE had argued that by the city four years, because it is an “Information Services” rather as a telecommunications company.
It is a position in the court. Last month, a federal judge in Nebraska on page VONAGE exemption of a state fee. And a few years ago, a Minnesota court accepted the argument and decided it was not VONAGE regulation of the state.
But the conclusion that Motz VONAGE-Service “includes use of a” telecommunications “and is therefore subject to the city, the tax was implemented in 2004 to help ensure that the budget of Baltimore. produces approximately $ 26.2 million the first year. Verizon and Comcast voluntarily pay tax on their VoIP services, the city said.
The Federal Communications Commission has hesitated to classify VoIP as data service or a telecommunications service as well as regulate. So far, the Agency would be required, VoIP, access providers of 911 regulations, protect customer information, phone numbers and make an essential contribution to a federal funds.
These companies are not the same rules as for traditional telecom companies, by state authorities. A law of Maryland last year to ensure that it would explicitly apologize VoIP utility companies to monitor the Commission.
And while taxes are not the same thing as regulation, representatives of VoIP concerned about an association is insured, “said one analyst.
In a statement yesterday, spokesman Michael VONAGE Zema, “said New Jersey, the company was disappointed by the decision of Baltimore and verify their legal status.
“VONAGE undertakes for Low-Cost-service consumer and Maryland Baltimore City customers,” wrote Zema. “The $ 3.50 fee, the city of Baltimore frustrated that goal.”
A year ago, VONAGE which has never turned a victory, said he lost was facing bankruptcy, after conducting a violation of Verizon Communications Inc. and a judge ordered to halt most operations. VONAGE consistently the case in October, after an appellate court upheld most of the judgement.
The company went to the disclosure of the number of customers it has in Baltimore, Maryland, or if its website says it has 2.5 million subscribers connected to the national level. This corresponds to about 0.6 percent of the market for voice, “said Jim coal Berger, director of VoIP-commerce group D of the Coalition.
Baltimore probably more on attorneys’ fees, as they can once again in the short term, “said Berger coal.
If VONAGE appeal, the case becomes a matter of national attention, “said lawyer Ralph E. David Baltimore, represented VONAGE against the city.” If VONAGE loses the right resources, then consider other towns and countries to the USA, where VONAGE offer this service would probably try to collect a similar fee. ”
Vermont economist and lobbyist Scott Mackey, said the phone tax laws are too old and outdated apply to providers of VoIP, so it is unlikely that the mass effort to make this tax. But more recent regulations, such as Baltimore and Montgomery County, both also for wireless operators have an integrated modern flexibility
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