It's being called a new twist on the issue of Internet taxes, but Utah - and a few other states - are very close to imposing taxes on companies laying Internet and other telecommunications cable along interstate highways, ZDNet News is reporting.
Utah Governor Michael Levitt is recommending a $1,000-per-mile annual tax, having rejected a state right-of-way task force call for a one-time, $500-per-mile tax. ZDNet News says some observers believe other ideas being mulled include a tax as high as $250,000 per mile.
Telelcom industry watchers fear this kind of idea could make their products, Net related and otherwise, far more expensive. United States Telephone Association government affairs director Mike Wendy says the association's members generally believe in "fair and reasonable compensation" for governments overseeing rights of way, but he also tells ZDNet News that value-based assessments plus fees well above costs equals "mak(ing) our products more expensive."
Nancy Gibbs, executive director of the Utah Rural Telecom Association, says any plans like the per-mile charges would make it cost prohibitive to expand Internet access to many rural areas. ZDNet News says Gibbs has met with Utah state lawmakers and discovered potential fees are in a high state of flux for now.
Other states said to be considering this or similar ideas include Arkansas, Florida, Kentucky, and Minnesota, ZDNet News says.
