Tax Alert


The following is the text of a tax alert that, as providers of Internet services, you should be aware of. Your help is needed to keep this tax from being implemented. Please read this alert and ask your subscribers to let the Governor know that this tax would be bad for business.

More information regarding this subject is available from Associated Industries of Florida's Home Page (http://aif.com)

Internet Tax Alert

SOURCE: Jodi L. Chase
Senior Vice President & General Counsel
Associated Industries of Florida

May 8, 1996

If you are based in Florida and you use the Internet, your services will be taxed beginning July 1, unless you can convince Governor Lawton Chiles to sign SB 624!

In the Fall, the Florida Department of Revenue decided that Internet services are subject to Florida's gross receipts tax and sales tax. Florida's tax collectors decided to begin collecting this tax from users on July 1 of this year unless the Florida Legislature passed a law exempting such services from taxation. Well, the Legislature did its job and passed SB 624 which includes a tax exemption for Internet services. Unfortunately, they also included tax exemptions for other businesses in SB 624. As a result of the other tax exemptions, the Lt. Governor has said that it is a sure fire target for Governor Lawton Chiles' veto pen.

WE MUST CONVINCE THE GOVERNOR NOT TO VETO THIS BILL IF WE WANT TO AVOID A 10% INCREASE IN INTERNET ACCESS CHARGES!

Please write letters to:

The Honorable Governor Lawton Chiles
The Capitol, Plaza Level
Tallahassee, Florida 32399

Or e-mail your letters to badtax@aif.com and we will deliver them to the Governor's Office for you. In your letter, please ask the Governor to allow SB 624 to become law because of its impact on Internet usage. This will take a massive effort involving hundreds or thousands of letters in order to convince the Governor to allow the Internet tax exemption to become law. Please take this notice and send it to everyone you know who uses the Net.

If you are in another state, don't be fooled. Florida is a bellwether state which means the other state legislatures look to Florida for revenue sources. If Florida is allowed to tax the Internet, then the Internet will be taxed in other states soon.

AIF is a member organization that represents businesses before the Legislature. We were able to pass the bill, but now you must help us have the bill signed into law.

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