Utah Tax Commission Won't Modify Tax Rule

摘要

The Utah State Tax Commission said it will not amend its existing tax code, as requested by Qwest Corp., and begin assessing corporate taxes on a statewide basis on cable companies that provide phone service in the state. Qwest had asked the State Tax Commission to consider whether cable companies such as Comcast Corp. that provide Internet protocol (IP)-based phone service should pay corporate taxes assessed by the state, similar to the taxes Qwest is required to pay. In its June 2008 petition, Qwest argued that the current tax scheme treats the two companies very differently, although they provide the same services. Qwest specifically requested the commission amend Rule 62 to provide that cable companies that "facilitate two-way communications" be included in the definition of unitary properties subject to assessment by the state tax commission. Among other things, Qwest argued during a hearing held in August before the tax commission that cable companies are not being assessed at a fair market value. Qwest said it was seeking "consistency, uniformity, expertise, and reduction of administrative burden."