Telecom Tax Blog

    VoIP Tax Change in Wisconsin

    Posted on Tue, Oct 30, 2012 @ 01:55 PM

    Do you sell VoIP Services throughout the US?  If so, make sure you know the state by state taxability statutes.  One example of a change in policy from Wisconsin:  "Changes to the Taxability Status of Nomadic VOIP Service for Purposes of the Wisconsin Universal Service Fund".

    As a result of the same legislation that restricted the definition of the term telecommunications service to now exclude revenue derived from the sale of data and information services from WI USF assessment liability, VOIP providers are now equally required to contribute to the fund. To quote the text of the key statutory provision as a result of being amended by Senate Bill 13:

    “Contributions under this paragraph may be based only on the gross operating revenues from  the provision of broadcast services identified by the commission under subd. 2. and on intrastate telecommunications services in this state of the telecommunications providers subject to the contribution. Contributions based on revenues from interconnected voice over Internet protocol service shall be calculated as provided under s. 196.206(2)(b).”[1]

    “An entity that provides interconnected voice over Internet protocol service in this state shall make contributions to the universal service fund based on its revenues from providing intrastate interconnected voice over Internet protocol service. The revenues shall be calculated using the entity’s actual intrastate revenues, a provider-specific traffic study approved by the commission or federal communications commission, or the inverse of the interstate jurisdictional allocation established by the federal communications commission for the purpose of federal universal service assessments.”[2]

    Why spend your days managing this type of minutia?  As part of SureTax® Telecom, every rate and rule change is automatically updated and release notes are sent to you for your records.

    [1] Wisconsin Statutes § 196.218(3)(a)3m.

    [2] Wisconsin Statutes § 196.206(2).

    Tags: telecom tax, voip tax, telecom taxes, voip taxes

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