Telecommunications Tax To Replace Existing Franchise Taxes In Georgia

Because of technology, accessing Georgia Tax ID Form has become a relatively straightforward process. All that a business or entity needs is to provide all the information required like the legal name of the entity, a designated responsible party, a valid legal address, email address and phone numbers. Always ensure that all information provided is correct and valid to receive the Tax ID the earliest time possible.

In Georgia, state lawmakers are proposing new taxes on phone lines, TV streaming and maybe online streaming services that include Netflix and Amazon Prime Video. The telecommunications tax will be an additional tax to the existing sales taxes on equipment to help defray the costs of building high speed internet lines that will serve 16% of rural Georgia that do not have internet access. The additional tax will add about $200million annually in new revenue.

The telecommunications tax will cover phone and TV services, internet phones and satellite TV’sthat are not currently being taxed. On the other hand, existing franchise taxes on communication services will be removed to be replaced by the new telecommunications tax. Whatever proceeds that will be generated from the new tax will be divided between the state and local governments.

According to Clint Mueller, a lobbyist from Association County Commissioners of Georgia, the new tax will even out the playing field. This will remove the fees and sales taxes that are being applied to bits and pieces of technology. However, it still unclear whether the telecommunications tax will be set at 5% rate and cover online streaming services.

Under the 1998 federal law called the Internet Tax Freedom Act, internet service providers are exempt from paying taxes. Meanwhile, states like Florida and Pennsylvania have started to levy taxes on video streaming services. Both Amazon and Netflix have not issued any comments regarding the telecommunications tax.

It is important for rural Georgia to be able to enjoy fast internet service so that they will enjoy the same conveniences of urban dwellers. For example, with internet access, a rural Georgia business or entity can easily download Georgia Tax ID Form to obtain a Tax ID without hassle.