“Internet Service Providers currently pay taxes, as do many other businesses. Telecommunications services and public utility services also pay taxes, but generally higher rates. The Internet Tax Freedom Act does not change any of that,” said ACI President Steve Pociask.
“As a result, reclassifying broadband to a Title II regulation opens ISPs to higher rates of state taxes that are only applicable to public utility and regulated telecommunications services. These taxes include gross receipts taxes and property taxes, which are generally much higher for public utilities, compared to property taxes on other business.
“There should be no confusion that reclassifying will subject ISPs to increased property and gross receipts taxes,” he said.