An excellent case of considering regulatory arbitrage effects. -Allen
_________________________________________________________________ webslingerZ _________________________________________________________________ TACOMA, WASH. CITY COUNCIL REPEALS TAX ON INTERNET PROVIDERS __________________________________________________________________________ Copyright © 1996 Nando.net Copyright © 1996 Reuter Information Service
TACOMA, Wash. (Sep 4, 1996 01:17 a.m. EDT) - Tacoma City Council members voted Tuesday to exempt Internet service providers from a 6 percent telecommunications tax that had attracted nationwide attention.
With only one dissenting vote, the council approved the exemption at the urging of Mayor Brian Ebersole, who said Tacoma's reputation as a good place to do business outweighed the estimated $200,000 in annual revenue the city stands to lose.
The tax had been imposed on Internet companies in March by Tacoma's tax and license department as part of a broader levy that affects users of cellular telephones, pagers and other equipment who get billed at addresses within the city, about 30 miles south of Seattle.
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Tacoma is one of many cities and states who have seized on the rapid growth of the Internet as a potential for raising needed tax revenues.
West Virginia, Tennessee, Texas, New York and Ohio have similar taxes in place, and California, Florida, New York and Washington state are considering them.
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