Telecom Taxes - Effective after 7-15-2005
For a list of Frequently Asked Questions - click here
The following email notification was sent to the VoiceEclipse customer base on June 15, 2005.
Dear Valued Customer,
In the course of ongoing compliance with all Federal, State and local tax laws, VoiceEclipse
will begin collecting applicable taxes charged for communication services such as your VoiceEclipse VoIP phone service.
We want to provide you with a detailed description of the taxes that will be assessed moving forward,
as some are based on physical residency and the billing address you supplied when you signed up.
Beginning on your monthly recurring bill date, on or after JULY 15, 2005, the following taxes will be applied:
Customers with a NORTH CAROLINA service address will have a 6% local
sales tax assessed and applied to all services, except for any applicable
setup fees.
Customers with an ILLINOIS service address will have telecommunications
taxes assessed and applied to all services, except for any applicable setup fees,
determined by the city or county in which your billing address is found.
You will see these various tax items appear on all invoices beginning July 15th. If you should have any questions
regarding your monthly bill, please do not hesitate to contact us:
billing@voiceeclipse.com
Thank you for your continued use of the VoiceEclipse service!
Frequently Asked Questions
The following is a list of queries we have had regarding the new tax implementations. If you don't find your answers here, feel free to email us with any additional questions you may have: billing@voiceeclipse.com
What can I expect to pay in taxes if I am NOT in North Carolina or Illinois?
Nothing, as of now. Until June 1, 2006, there was a Federal Excise tax being assessed but a ruling has been made that make the tax not applicable to our service.
What can I expect to pay in taxes if I am in North Carolina?
A 6% state-wide tax will be added for those
with a billing address in North Carolina. For example, if you
have a billing address In North Carolina and had the $19.95 plan with no
other billiable services that month, then with
the 6% North Carolina (Local) Tax, your total bill would be: $21.15
What can I expect to pay in taxes if I am in Illinois?
In Illinois the range is 7.5% to 14.5% varying by county or city. For Cook County, the default rate won't
matter, as the city rates override that. For Chicago, the city rate is 14.5% for example.
Therefore, if your billing address was in Chicago, IL and you have the 19.95 VoiceEclipse package, here is
what you can expect to pay if you had not other billable services that month:
Local Tax (County/City)
|
$19.95
|
(VE Package)
|
x .145
|
(14.5% Local Tax)
|
|
$2.89
|
(Local Tax Charged)
|
|
TOTAL with Taxes
|
$19.95
|
(VE Package)
|
+ $2.89
|
(Local Tax Charged)
|
|
$20.55
|
TOTAL
|
|
...additionally, you would have to pay taxes on any other services other then one-time setup fees. Examples would
be any international calls, 411-Information, etc.
I already pay taxes on my Broadband Connection for the Internet. Aren't I getting taxed twice now?
You are, but on two separate services, from two entirely different companies both of which have to pay the
goverment taxes on their seperate services.
Whichever company you currently pay for your High-Speed Internet service is charged the telcom tax and
therfore has to collect that tax from you for that service. VoiceEclipse is a separate company, separate
service and is also charged with collecting taxes on their services.
The total tax you pay for telecom services is a defined percentage of your total bill. This amount is now
simply split between two service providers.
Where can I find more information at government websites regarding the taxation of telecom services?
The Illinois Law is explained here:
http://www.revenue.state.il.us/LegalInformation/regs/part495/
Note: The Illinois law provides for the additional taxes charged by the Municipality, which is explained in it's own way by every/any Municipality. Therefore, you should also inquire about your local municipality for further implementation of the tax. Municipalities have the right, under this law, to add to or supplant this tax with a higher amount.
North Carolina information:
http://www.dor.state.nc.us/taxes/sales/electricity.html
