[Corin Stormhands]

I just got the following response from Delegate Nixon:

Corin,

I appreciate your email(s) but I'm afraid that you have been badly
misinformed as to the intent of HB-2880. This bill is part of a major
reform initiative that is designed to LOWER communications taxes for most
residents in Virginia. HB-2880 is the Communications Tax Simplication and
Fairness Act of 2005.

Virginia currently has the 2nd highest telephone tax rates of any state in
the country. The average tax rate for basic telephone service in Virginia
is 28% - double the national average of 14%. Worse yet is that the current
system of taxation unfairly taxes some services at a very high rate - while
others are not taxed at all. It also creates a competitive imbalance in
the marketplace between various providers. I'm sure that you've noticed
how complicated your phone bill is to read. That is because so much of the
bill is dedicated to explaining all the taxes that are tacked on to what
you have to pay.

HB-2880 repeals FOUR existing taxes and then lowers communications taxes to
a flat 5% rate across the board for communication services, including video
services (cable and satellite). Therefore, no matter where you live or how
you obtain your communication service everyone will pay the same low rate.
This legislation in fact adheres to a very important Republican principle -
to keep taxes low but fair and equitable for all.

I realize that you may still oppose this legislation but I wanted you to
know that the bill neither raises nor lowers the overall amount of tax
revenues for communications services in Virginia.

[Corin Stormhands]

Just wanted to point out that in further follow up, Delegate Nixon told me he is the chief patron of a bill to return the surplus to the taxpayers. He also mentioned the car tax.

But, as we suspected, he doesn't hold out much hope of the measures making it through the Senate.

[Doohickey]

VoIP and Satellite impose no additional infratructure burden on the Commonwealth.

VoIP services are delivered mostly thorugh cable, DSL and COTs lines - which are already taxed.

Satellite has no infrastructure at all, except that which I set up in MY yard or on MY house. If satellite subscribers should be taxed, then to be "fair" those who receive only broadcast channels should be taxed as well.

If he wants to lower the phone tax, I'm all for it. Spreading around to get a net increase in revenue is just underhanded.

[P8riot]

Dammit Corin,

I fired off a "concerned" note to Sam about that bill before I read his response to you. Now I've gotta buy him lunch.

[Flora McDonald]

Delegate Nixon:

"This bill is part of a major reform initiative that is designed to LOWER communications taxes..."

and

"...the bill neither raises nor lowers the overall amount of tax revenues for communications services..."

???