For over a decade, several states have sought to tax Vonage and other VoIP suppliers, as well as their customers, to states' Universal Service Fund. But all these taxing attempts have been overturned or denied by citing a 2003 landmark ruling by federal Judge Michael Davis of Minnesota.
The latest comes in the way of the 8th U.S. Circuit Court of Appeals turning down an appeal by the Nebraska Public Service Commission to compel Vonage users to pay taxes on their service.
In his earlier ruling, Judge Davis said, "Congress has expressed a clear intent to leave the Internet free from undue regulation so that this growth and exploration may continue. Congress also differentiated between 'telecommunication services,' which may be regulated, and 'information services,' which, like the Internet, may not."
Monday, May 04, 2009