Iowa Court: VoIPs must be taxed same as phone companies - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa Court: VoIPs must be taxed same as phone companies

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The Iowa Supreme Court says companies that provide phone service through the Internet must be taxed the same as traditional telephone service providers.

The court ruled 6-0 Friday that Voice over Internet Protocol providers operate "telephone lines" even if their service is provided through a broadband network. Therefore, justices say those companies are subject to annual property tax assessments based on the amount of cable and wire they use to provide the service.

The ruling rejected a challenge from Cable One, Inc., an Arizona-based company that provides cable, internet and VoIP service in the Sioux City area.

Cable One challenged two years of Iowa Department of Revenue assessments totaling $1.4 million, arguing they didn't apply because the company doesn't operate a telephone line.

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