Internet Tax in Tacoma cancelled

["E. Allen Smith" <EALLENSMITH@ocelot.Rutgers.EDU>]

	An excellent case of considering regulatory arbitrage effects.
	-Allen

>     _________________________________________________________________
>   webslingerZ
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>         TACOMA, WASH. CITY COUNCIL REPEALS TAX ON INTERNET PROVIDERS
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>      Copyright &copy 1996 Nando.net
>      Copyright &copy 1996 Reuter Information Service
      
>   TACOMA, Wash. (Sep 4, 1996 01:17 a.m. EDT) - Tacoma City Council
>   members voted Tuesday to exempt Internet service providers from a 6
>   percent telecommunications tax that had attracted nationwide
>   attention.
   
>   With only one dissenting vote, the council approved the exemption at
>   the urging of Mayor Brian Ebersole, who said Tacoma's reputation as a
>   good place to do business outweighed the estimated $200,000 in annual
>   revenue the city stands to lose.
   
>   The tax had been imposed on Internet companies in March by Tacoma's
>   tax and license department as part of a broader levy that affects
>   users of cellular telephones, pagers and other equipment who get
>   billed at addresses within the city, about 30 miles south of Seattle.
   
[...]

>   Tacoma is one of many cities and states who have seized on the rapid
>   growth of the Internet as a potential for raising needed tax revenues.
   
>   West Virginia, Tennessee, Texas, New York and Ohio have similar taxes
>   in place, and California, Florida, New York and Washington state are
>   considering them.
   
[...]

>    Copyright &copy 1996 Nando.net