2004 LEGISLATIVE PROGRAM - TELECOMMUNICATIONS

Staff Contact: Ken Pokalsky

Following is The Business Council's 2004 Legislative Program. It identifies priority issues to be addressed by the Committees and Councils during 2004.

Mission Statement

Actively promote regulatory and tax reform to encourage increased investment and competition in New York's telecommunications and information technology industries.

Tax Issues

• Amend the gross receipts and sales taxes on telecommunications services to conform to national, uniform sourcing rules for determining which jurisdiction a transaction occurs for tax purposes and clarify the tax treatment of charges for telecommunications aggregated with nontaxable charges for telecommunications.



• Support legislation that would apply existing statutory reductions of section 183-3 of the tax law to all telecommunication carriers. Current law penalizes corporations that pay dividends on the par value of capital stock in the amount of six percent or more and have more than one million access lines.



• Support the consolidation & simplification of remittance filings to streamline local tax payments.



• Continue expansion of the current Section 115 (12A) sales and use tax exemption for telecommunications equipment to include testing, training, billing and other ancillary equipment, and energy required for providing telecommunication services.



• Oppose legislation which increases or imposes new surcharges on telecommunications companies and their customers which fund social programs, and state or local government.



• Support legislation that eliminates the Gross Receipts Tax (GRT) - section 186a of Article 9 of the NYS Tax Law applicable to revenues of utilities subjected to the supervision of the Public Service Commission.



• Support legislation which would reform Article 9 taxation and reduce the tax burden on telecommunication customers.



• Property taxes paid by New York's telecommunication corporations are excessive when compared to parallel corporations in other states and other corporations within New York. Given the adverse impact of this disparity on New York's competitive position, we support appropriate legislation to ameliorate this unfair burden borne by telecommunication corporations and their customers to achieve equity and parity with other state's in the country.



• Support legislation which immediately removes all telecommunication services from taxation under gross earnings (§184 of the New York State Tax Law).



• Support an investment tax credit to provide companies with a deduction for leased equipment.

Policy Issues

• Assure full recovery of expenses incurred by PSC-regulated entities in response to the 9/11 terrorist attacks, including costs related to provision of emergency utility service, site cleanup, personnel expenses and the replacement of buildings, facilities and equipment, as well as costs necessary to enhance the security of utility services.



• Support legislation which makes it a felony for interfering with a person's ability to connect with an emergency service provided by intentionally damaging a telephone line.



• Oppose legislation that attempts to secure Anti-Joint Bidding legislation. Support legislation which provides for "Joint-Bidding."



• Support legislation that would set a uniform statewide process for municipal review of the siting and construction of wireless service facilities.



• Oppose legislation that would allow a municipal corporation to recover damages caused by acts of nature or similar unforeseen circumstances from telecommunication, wireless and cable companies.



• Oppose legislation that would restrict consumer access to "10-10 dial around" long distance services or require additional disclosure of such long distance rates by telecommunications and local exchange carriers.



• Support legislation that would establish an effective and cost-efficient statewide wireless emergency telecommunication system.



• Oppose legislation that would regulate service quality standards of telecommunication corporations.



• Support policies that promote unfettered access to multi-tenant buildings and the public right-of-way.
  
  
• Support legislation that exempts telephone utility trucks from the definition of "motor truck" so as to exclude drivers from being forced to comply with hours of service regulations prescribed by the commissioner of transportation.
  

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