Hello. I have two questions. First we are a wireless high speed ISP. Back in the dialup days there was never sales tax collected on dialup internet access. However someone at our indiana tax office said that Internet access providers have to collect sales tax on the internet access fees? I asked around to other providers and no one else is charging sales tax on there services either. I was always under the impression Internet access did not collect sales tax on its services. I was told this when I inquired about sales tax on voip services. We are going to offer some packages bundled with free voip services and wanted to know if we had and how to collect sales tax on the voip portion if it was free. They said tax is due on all communication services including Internet access as well. Are we all in the wrong here? can anyone share any light on this? Also a last note on the voip. We already pay state and federal sales tax on all usage so since we pay tax already for all usage billed to us that including the end user why should we have to collect sales tax from them as well, we already pay it?

Tax law can be confusing especially when you are dealing with communications and the internet. I don't have the knowledge to answer your question. You may want to speak with an attorney who has extensive knowledge in this area so that you get the correct information so you don't subject yourself to liability. You can locate one through the attorney locator on Lawinfo's home page at http://www.lawinfo.com/. Some do offer free consultations.