Proposal To Prohibit The Discriminatory Ad Valorem Taxation Of Interstate Telecommunications

The expansion of electronic commerce also raises certain state and local property tax issues. For instance, a number of states still have property tax statutes that impose larger tax burdens on telecommunication companies than on other companies. For many telecommunication companies, property taxes make up over one-half of their state and local tax burden. Thus, similar proposals such as the following will encourage investment in Internet infrastructure by prohibiting discriminatory state ad valorem property taxation of interstate telecommunications. This proposal, expanding the same protection against discrimination that federal law currently provides to railroads, airlines and other industries, is critical to interstate commerce.

The following questions have been addressed in this article:

What is the Impact of Discriminatory Property Taxation?
What similar proposals are necessary to prevent discriminatory property taxation of Internet?
Does a property tax imposed on a corporation’s inventory?


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