FC: Replies to reporter about Earthlink levying additional fees

From: Declan McCullagh (declanat_private)
Date: Wed Jun 04 2003 - 22:51:55 PDT

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    Date: Wed, 4 Jun 2003 08:00:28 -0400 (EDT)
    From: Scott  Bradner <sobat_private>
    To: declanat_private
    Subject: Re: FC: Query from reporter about Earthlink levying additional fees
    Cc: JJCookat_private
    In-Reply-To: <5.2.1.1.0.20030603230830.0413fe98at_private>
    
     > I was hoping you or one of
     > your readers might be able to explain this e-mail I got from Earthlink, my
    
    
    see http://famulus.msnbc.com/famulusgen/cnet06-03-163501a.asp?t=CNTEK
    
    Scott
    
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    From: "D McOwen" <dmcowenat_private>
    To: <declanat_private>, <politechat_private>
    Cc: <JJCookat_private>
    Subject: RE: Query from reporter about Earthlink levying additional fees
    Date: Wed, 4 Jun 2003 23:12:04 -0400
    Message-ID: <NCBBLLCKEFIGAFOKNBDLMELODKAA.dmcowenat_private>
    
    
    http://www.businessweek.com/technology/cnet/stories/1012879.htm
    By Jim Hu, Staff Writer, CNET News.com
    
    
    Earthlink ADSL Tax Table
    
    http://support.earthlink.net/mu/1/psc/img/walkthroughs/other/taxbilling/8233.psc.html
    
    ADSL Tax Table
    Resolution ID: 8233
    ----------------------------------------------------------------------------
    ----
    Question
    
    What are the taxes and/or fees that will be applied to my EarthLink bill?
    
    Answer
    
    Below are the estimated total monthly taxes and/or fees that will be applied
    to your EarthLink bill.
    
    These amounts include the state and local taxes and/or fees as well as the
    recovery of Universal Service Fund fees, and are subject to change.
    Taxes and fees applied to your bill are calculated using the address we
    currently have on file for you.
    Amounts are based on a monthly charge of $49.95 for DSL service.
    State Minimum Maximum
    Alabama $2.58 $2.58
    Alaska $0.66 $2.90
    Arizona $2.46 $3.90
    Arkansas $0.66 $0.66
    California $0.66 $0.66
    Colorado $0.66 $0.66
    Connecticut $2.58 $2.58
    District of Columbia $0.66 $0.66
    Delaware $0.66 $0.66
    Florida $1.42 $3.70
    Georgia $0.66 $0.66
    Hawaii $1.94 $1.94
    Illinois $3.06 $5.30
    Indiana $1.11 $1.11
    Kansas $2.36 $3.32
    Kentucky $0.66 $2.58
    Louisiana $1.62 $1.62
    Maine $0.66 $0.66
    Maryland $0.66 $0.66
    Massachusetts $0.66 $2.26
    Michigan $0.66 $0.66
    Minnesota $2.74 $2.74
    Mississippi $2.90 $2.90
    Missouri $2.18 $3.34
    Nevada $0.66 $0.66
    New Hampshire $2.90 $2.90
    New Jersey $2.58 $2.58
    New Mexico $2.79 $4.28
    New York $1.46 $2.41
    North Carolina $2.58 $2.58
    Ohio $0.66 $0.66
    Oklahoma $0.66 $0.66
    Oregon $0.66 $0.66
    Pennsylvania $0.66 $2.90
    Rhode Island $4.50 $4.50
    South Carolina $2.26 $2.90
    Tennessee $4.41 $4.91
    Texas $2.66 $3.30
    Utah $0.66 $0.66
    Vermont $0.66 $0.66
    Virginia $0.66 $0.66
    Washington $2.90 $3.51
    West Virginia $0.66 $0.66
    Wisconsin $3.16 $3.66
    
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    From: "Jim Harper" <jim.harperat_private>
    To: <declanat_private>
    Cc: <JJCookat_private>
    Subject: RE: Query from reporter about Earthlink levying additional fees
    Date: Wed, 4 Jun 2003 09:33:55 -0400
    
    Here's the deal on Earthlink passing through taxes:
    http://news.com.com/2100-1038_3-1012879.html
    
    I hope everyone knows that taxes are usually passed on to consumers, even if
    not explicitly.
    
    In relevant news, a U.S. House Judiciary Subcommittee approved H.R. 49, the
    "Internet Tax Nondiscrimination Act" on May 22.  It would permanently extend
    the existing ban on multiple or discriminatory taxes. It would also
    terminate the grandfathering of access taxes that existed in 1998, which is
    what probably allows the taxes queried about by Mr. Cook.
    
    Jim Harper
    PolicyCounsel.Com
    
    ---
    
    Date: Wed, 04 Jun 2003 00:35:56 -0700
    From: Graham Freeman <grahamat_private>
    To: declanat_private
    cc: JJCookat_private
    Subject: Re: FC: Query from reporter about Earthlink levying additional fees
    
    The "taxes" bit is probably the Federal Universal Service Fee (FUSF), which 
    is billed to ISPs by the ILECs (such as Verizon and SBC) and CLECs (such as 
    Covad).  Some ISPs are choosing to itemize these costs rather than include 
    it in their advertised prices.  You're probably seeing action now (rather 
    than before) in part because the FCC recently issued a ruling which fixed 
    the rate at a specific percentage (9.1%) as well as other things that I 
    don't completely understand, but in any event motivated the LECs to change 
    the way they recover these taxes, which in turn motivated various ISPs to 
    change the way they bill.
    
    Contact an Internet Service Providers' association for info from their 
    perspective, see <http://www.speakeasy.net/low/main.php?page=res_fusf> for 
    a barebones explanation, or check the FCC web site for more hard-to-digest 
    information than you can shake a stick at.
    
    There's a basic explanation of FUSF (at this URL: 
    <http://www.fcc.gov/wcb/universal_service/welcome.html>
    
    Graham Freeman
    http://www.jahiel.net/projects/solarwap
    
    
    ---
    
    Date: Wed, 04 Jun 2003 05:15:34 -0600
    To: declanat_private, politechat_private
    From: Charles Oriez <coriezat_private>
    Subject: Re: FC: Query from reporter about Earthlink levying additional
       fees
    Cc: "Cook, John J." <JJCookat_private>
    
    It appears that some locales are deciding to go after taxes that didn't 
    before. It could be a function of the struggling economy.
    
    http://coop.net/press_room/tax.php
    
    Coop.net is one of the major backbone providers in Colorado.  The Peoples 
    Republic of Boulder wants $170,644.35 in back taxes from them.  Since coop 
    provides connectivity to a significant percentage of the industry in 
    Colorado, this could have a significant impact on all of us unless they win 
    their appeal or choose to move their facility, and jobs, out of Boulder.
    
    
    Charles Oriez     coriezat_private
    39  34' 34.4"N / 105 00' 06.3"W
    **
    "Oh come now.  At least pretend to be scared.  The media spent millions 
    trying to psyche you up for this" - User Friendly, 08/01/01 on the Code Red 
    virus scare
    
    ---
    
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    Date: Wed, 04 Jun 2003 08:50:45 -0400
    To: declanat_private
    From: Robert Moskowitz <rgm-int@htt-consult.com>
    Subject: Re: FC: Query from reporter about Earthlink levying additional
       fees
    In-Reply-To: <5.2.1.1.0.20030603230830.0413fe98at_private>
    
    DSL.NET added taxes to my subscription long ago.
    
    The way I recall it, the RBOCs cried foul that they had to charge taxes, 
    but the ILEC DSL providers did not.  The RBOCs won and now I have to pay 
    taxes....
    
    
    ---
    
    Declan,
    
    I got the same notice from Earthlink so I went on a little google-hunt.
    
    I think that this might be the result of a project called the
    Streamlined Sales Tax Project.
    
    Here's their homepage:  http://www.streamlinedsalestax.org/
    
    It seems to be meeting with some success.  Here's where you can track
    which states have adopted the legislation:
    http://www.ncsl.org/programs/press/2003/political01.htm
    
    I'm attaching the pdf of the language proposed by the SSTP project since
    it's only 290K.
    
    Hopefully Mr.Cook or yourself can take it from here.
    
    (Please suppress my email address...I actually remembered to put
    CONFIDENTIAL in the subject line!  ;)
    
    
    
    
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