Become a fan of Slashdot on Facebook

 



Forgot your password?
typodupeerror
×
Businesses Government The Almighty Buck United States Verizon

New Law Could Make Verizon Pay a Decade's Worth of Taxes It Avoided (arstechnica.com) 98

Verizon has avoided paying local taxes on telecom equipment in many New Jersey municipalities over the past decade, but a proposed state law would force the company to pay back taxes for all the payments it didn't make. Ars Technica reports: The bill, filed on May 23 by Assemblyman John Burzichelli (D. Paulsboro), "would force Verizon to pay local taxes on telephone poles, lines, land, and other equipment that the telecom giant has refused to fork over in an increasing number of New Jersey municipalities, starving them of tens of millions of dollars a year in tax revenue," The Philadelphia Inquirer reported. As of 2015, Verizon had reportedly stopped paying the tax in more than 150 of the 565 municipalities in New Jersey.

The tax Verizon has avoided ranges from $15,000 to more than $1 million a year for each municipality, taking revenue away from local budgets or forcing residents and other businesses to cover the shortfalls. Despite not paying tax in many cities and towns, local officials point out that Verizon "continues to benefit from the use of municipalities' poles, utility lines, and switching facilities even when it no longer pays taxes," a 2015 Inquirer article said.
"The tax dispute centers on a 1997 amendment to state tax law that required 'business personal property' payments from landline phone companies that provide 'dial tone and access to 51 percent of a local telephone exchange,'" the report adds. Verizon said in 2008 that it would stop paying the tax because it said its market share had dropped below the 51 percent threshold. In reality, Verizon's share was closer to 90 percent.
This discussion has been archived. No new comments can be posted.

New Law Could Make Verizon Pay a Decade's Worth of Taxes It Avoided

Comments Filter:
  • I'm not a big fan of property taxes. Ostensibly on most of what's taxed the business has already paid a use or sales tax on. The revenue generated from it is taxed and so on. Still if other businesses are taxed uniformly then Verizon obviously owes the money. Unfortunately it's a drop in the bucket and won't fix anything because the bloated municipalities won't put it to anything meaningful except paying for over-generous pensions or debt.

    • by ShanghaiBill ( 739463 ) on Tuesday June 04, 2019 @06:24PM (#58710136)

      I'm not a big fan of property taxes.

      I am a big fan.

      Compared to the alternatives, property taxes are progressive, more fair, and have fewer perverse incentives.

      Property taxes are especially efficient when implemented as land-value taxes, which Milton Friedman described as "the least bad tax". And Milton Friedman was never wrong about anything.

      Property taxes should be higher. Income taxes should be lower. Payroll taxes should be eliminated.

      • by Anonymous Coward

        All that does is encourage people to illegally pack 35 "family members" into a single unit dwelling.

        • by ShanghaiBill ( 739463 ) on Tuesday June 04, 2019 @07:44PM (#58710380)

          All that does is encourage people to illegally pack 35 "family members" into a single unit dwelling.

          Land-value taxes encourage the efficient use of land, so less will sit idle, and more will be turned into houses and apartment buildings.

          Property taxes tend to be progressive, since the rich have a greater percentage of their wealth in land. Payroll taxes tend to be regressive. Their elimination will encourage people to work, and encourage employers to hire. So a shift from payroll taxes to property taxes, will mean the 35 Filipinos living next door will have more money for housing, not less

          Why economists love property taxes and you don't [bloomberg.com].

      • I'm not a big fan of property taxes.

        I am a big fan.

        You are neither a farmer nor a retiree.

  • by brxndxn ( 461473 ) on Tuesday June 04, 2019 @06:12PM (#58710104)

    Verizon also should be forced to pay back all of the infrastructure tax breaks they got for rolling out the Fios network and then abruptly giving up on it so they could prioritize wireless. They were given billions of tax dollars to build fiber infrastructure throughout the US.. then they stopped building it.. then they sold it to Frontier in some 'Toys R Us' style structure.

    Also, hanging all of Verizon's board of directors for the past 20 years would be nice along with crucifying most of their management. Maybe I'm a little harsh - but I couldn't think of anything appropriate enough.

    • Also, hanging all of Verizon's board of directors for the past 20 years would be nice along with crucifying most of their management. Maybe I'm a little harsh - but I couldn't think of anything appropriate enough.

      Maybe we could give them to China as part of any future trade pact, on the condition that they not be granted passports?

  • What exactly is being taxed? What the hell is, "business personal property"? Is that not an inherent contradiction, with property being owned by business OR persons? How does a business have "personal" property? Why are municipalities taxing the equipment of the State-regulated utilities providing them with phone service?

    All else aside, this tax is a bad idea. A profoundly and foolishly greedy idea intended to extract more revenue from already over-taxed residents (Verizon is just going to bill cust

The Tao is like a glob pattern: used but never used up. It is like the extern void: filled with infinite possibilities.

Working...