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 AOP OPPOSES FLORIDA TAXATION OF ONLINE SERVICES
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The Association of Online Professionals has joined with the
Florida Chamber of Commerce to fend off an attack by the state
Department of Revenue that could cripple Florida's online
services industry and damage the state financially.

"The state already collects tax on these services, but is
looking for additional revenues by double-taxing them," notes
AOP Executive Director Dave McClure.  "Taxes are collected for
every telephone call made to an online service, and corporate
income taxes are paid on subscription fees."

"The direct effect will be to drive thousands of online 
services in Florida out of business," says McClure.  "These are
small, entrepreneurial Internet Service Providers and BBS
systems that will not be able to pass this tax on to their
subscribers and still stay competitive, not to mention the
additional administrative burden on these companies."

"The state is sending a message to technology companies 
to stay out of Florida, and is punishing its own residents 
for making use of online technologies."

The tax sends an anti-business message, agrees Blake A. Wilson,
executive vice president of the Florida Chamber of Commerce. 
"High-tech companies that want to grow and expand in Florida 
will turn their backs on the Sunshine State ... as a place 
that is living in the Dark Ages when it comes to business 
climate if this tax prevails."

Earlier this year, the Department of Revenue used a 12-year-old
statute taxing teletype services as justification for a 9.5
percent tax on all online services.  Following complaints by
the Florida Chamber of Commerce and the business community,
the Revenue Department withdrew collection of the tax, but
has announced that it will begin collection again on July 1 of
this year unless the Florida legislature votes otherwise.

The 9.5 percent sales and gross receipts tax would apply to all
subscriptions, fees and electronic transactions in or from the
state of Florida.  Provisions that allow local governments to
add their own taxes could push the rate as high as 17.5 percent.

The Florida Chamber of Commerce has organized a drive to keep 
the tax from becoming law.  Already in discussion with the 
Department of Revenue, the Chamber will begin lobbying the
state legislature when it convenes in three weeks.

The AOP has joined with the Chamber, working with AOP members
and other online professionals to alert Florida residents and
motivate them to write their legislators.

The Florida tax situation is being watched closely by other 
states hoping to implement online taxes.  California, Georgia 
and Illinois are among the state considering similar measures.



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ACT NOW TO OPPOSE FLORIDA TAX!
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It is imperative that the State of Florida understand the
chilling effect that this tax will have on the online industry 
there.

The state needs to understand that this will not only cripple
the industry there, but will lead to a great loss of
revenues to the state from business that goes elsewhere,
industry trade shows that avoid the state and other related
losses.  Florida also needa to know that online professionals
will not vacation in a state that is unfriendly to them.

PLEASE POST THIS INFORMATION AND FORM TO ALL OF YOUR
SUBSCRIBERS AND ENCOURAGE THEM TO USE IT.  GIVE THIS THE
WIDEST POSSIBLE DISTRIBUTION, PARTICULARLY WITHIN FLORIDA. 

AOP is working with the FLorida Chamber of commerce to collect
fax and e-mail messages that can be presented to the state
legislature.  Please take the time to fill this out and send
it, and encourage your subscribers to do the same.

Florida professionals, your future is at stake.

Cut and send the following:
===============================================================
Association of Online Professionals and
Florida Chamber of Commerce:
Please deliver this to the Florida 
Deparment of Revenue:





To:    Florida Department of Revenue

FLorida Needs to Grow and Prosper. . .Do Not Tax Our
Online Services or the Internet!



Name:      ____________________________________________ 
Company:   ____________________________________________
Phone:     ____________________________________________
Fax:       ____________________________________________

Signature:  ____________________________________________

Comments:   ____________________________________________
            ____________________________________________
            ____________________________________________
            ____________________________________________ 

Fax this form to 1-800-425-5002, or e-mail it to: 
fccpolicy@supernet.net


-- 

 Jerry Russell
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| Jerry Russell, Staff at FLORIDA ONLINE. 3815 N US 1, #59, Cocoa, FL 32926  |
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|                                jerry@digital.net                           |
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