Florida Considers Tax on Home Networks

State officials are said to be considering a call for a tax on home computer networks consisting of more than one machine. The proposal springs from a 1985 state law first intended to tax those few businesses using internal networks rather than the local phone company.

The Florida Department of Revenue met June 22 to begin determining whether that law can apply to wired homes and just who would be subject to the tax, according to a published report. The law was expanded in 2001 to tax any system used for voice or data communication tying multiple users by switching or routing technology – but analysts say it's so broad it could apply to networked computers, wireless services, two-way radios, and even faxes.

"The tax would be applicable to the costs of operating such a substitute communications system, not to the purchase of the system's components," said Wired. "In some cases, it appears the tax would be collected by the providers of communications services such as wireless companies or voice-over-IP firms. The tax would be added to the user's bill and then turned over to the Department of Revenue."

Self-employed graphic artist Linda Kellman told the magazine she and others like her get hit with such "insane taxes," but that this idea "would be the last straw. Can I outsource my network to a more sensible state, do you think?" She added that her accountant told her that, if her tax filing includes deductions for repair or maintenance of her two computers and one printer, "those costs will be subject to state communications taxes."