New taxes on Sacramento communication services, from the Bee
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New tax rate takes effect for communication services
Published: Friday, Dec. 12, 2008 | Page 2B
Starting today, a new tax rate on communication services kicks in for Sacramento residents.
City voters passed Measure O, the "Utility User Tax Reduction and Fairness Measure," in November. The measure lowers the overall tax rate on communication services, from 7.5 percent to 7 percent. But it expands the tax base to include new technologies such as text messaging and broadband phone services that were not taxed under the old system.
Under Measure O, a 7 per- cent tax will be applied to several services, including directory assistance and voicemail service; paging services; and custom calling features such as call waiting and caller identification.
Exempt are Internet access and digital downloads such as e-mail or digital books, music, ringtones or games.
Russ Fehr, city treasurer, said the amount someone is taxed will vary depending on what types of services he or she has.
- Bee staff
Comments (9) | Recommend (0)
New tax rate takes effect for communication services
Published: Friday, Dec. 12, 2008 | Page 2B
Starting today, a new tax rate on communication services kicks in for Sacramento residents.
City voters passed Measure O, the "Utility User Tax Reduction and Fairness Measure," in November. The measure lowers the overall tax rate on communication services, from 7.5 percent to 7 percent. But it expands the tax base to include new technologies such as text messaging and broadband phone services that were not taxed under the old system.
Under Measure O, a 7 per- cent tax will be applied to several services, including directory assistance and voicemail service; paging services; and custom calling features such as call waiting and caller identification.
Exempt are Internet access and digital downloads such as e-mail or digital books, music, ringtones or games.
Russ Fehr, city treasurer, said the amount someone is taxed will vary depending on what types of services he or she has.
- Bee staff