Briefs: Virginia telecom flat-tax plan advances

January 24, 2006

Virginia's proposed flat tax on telecommunications services was passed by a committee Monday and could reach the full House of Delegates later this week.

The proposed tax plan would replace various local levies with a 5-percent statewide tax on telecom services and would create taxes on Internet Protocol telephony, satellite television and long distance.

The measure breezed through the House of Delegates Finance Committee on a 15-7 vote. If passed by the full House, the bill will move on to the state Senate.

The Washington Post said Tuesday that Virginia is the first state to try to develop a tax plan for so-called emerging communications technology and that the bill is being closely watched by the U.S. communications industry.

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