Tax News

CCH (cch.taxgroup.com) reports:

Communications services sold by communications services providers to Internet Service Providers (ISPs), which were used by ISPs to provide Internet access service, were subject to Florida's communications services tax. Florida was not barred from enforcing its communications services tax on these services by the Internet Tax Freedom Act (ITFA) because Florida satisfied the grandfather provision. The grandfather provision applied to Florida because, prior to 1998, the year in which the ITFA became law, Florida imposed tax on telecommunication services that were purchased, used, or sold by a provider of Internet access to provide Internet access.
Technical Assistance Advisement, No. 07A19-001 , Florida Department of Revenue, July 24, 2007, ¶205-087
Other References:
Explanations at ¶80-115