What are the components of telecommunications taxes collected by state and local governments?
How much of these revenues could be affected by the enactment of S. 150, the Internet Tax Nondiscrimination Act (ITNA)? Based on information from industry representatives, state and local governments, and federal statistical sources, CBO estimates that state and local governments currently collect more than $20 billion annually from taxes on telecommunications services. These taxes fall into two broad categories: business taxes and transactions taxes. Business taxes include property taxes, corporate income taxes, sales taxes on business inputs, and capital stock taxes. They account for about one-third of the taxes telecommunications companies pay annually (about $7 billion), and do not appear to be directly affected by S. 150 (version MGR.6). The remaining two-thirds (at least $13 billion) are known broadly as transactions taxes and include gross receipts taxes, sales and use taxes, 911 fees, state universal service fund (USF) fees, and other taxes that are levied on telecommunications
