A Taxing Time at the FCC

Now that most of the election season is behind us, it is back to work in Washington, and at the FCC. On November 9, look for a ruling on whether IP telephony is an interstate service and as such, can be held exempt from state and local regulation, as well as local and state taxes.

Now that most of the election season is behind us, it is back to work in Washington, and at the FCC. On November 9, look for a ruling on whether IP telephony is an interstate service and as such, can be held exempt from state and local regulation, as well as local and state taxes.

FCC Chair Michael Powell is on record favoring recognition of IP telephony as an interstate service. And with his tenure as well as that of the Republican majority on the FCC just about assured for the next four years, Powell's influence will be powerful.

Later this month, the FCC will hear related arguments on how far states can go in taxing and regulating VoIP. A November 17 hearing will take place on Minnesota's protest of a decision ruling that Vonage's IP telephony service is an interstate information service not subject to Minnesota telephony regulations.

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