Ordinance amending the Business and Tax Regulations Code to revise how the Access Line Tax (“ALT”) applies to Voice Over Internet Protocol (“VoIP”) services to require collection and remittance of the ALT on VoIP services using the lower of the number of telephone numbers provided to a subscriber and the number of calls that the subscriber can make and/or receive at the same time using those telephone numbers.

This ordinance amends the Business and Tax Regulations Code to revise how the Access Line Tax (ALT) is applied to Voice Over Internet Protocol (VoIP) services. Currently, the ALT is applied to every 10-digit telephone number assigned to a VoIP subscriber, even if the subscriber cannot use all of them simultaneously. The amendment will change this to apply the tax based on the lower of either the number of telephone numbers provided or the number of simultaneous calls the subscriber can make/receive. This change is intended to align the tax more closely with actual service usage for VoIP customers. The ordinance specifies an effective date 30 days after enactment, with the tax application change operative after specific notification by the Tax Collector.

For residents and businesses using VoIP services, this ordinance may reduce the Access Line Tax if they are assigned more phone numbers than they can use simultaneously, aligning the tax with actual service capacity.

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