Connect with us

Business News

Congress proposes to ban internet access taxes forever

The Internet Tax Freedom Act has kept the internet free from taxation for nearly 17 years, now Congress is pulling together a plan to make it permanent.

Published

on

congress

congress

Internet Tax Freedom Act to become permanent

Imagine if you were taxed on the volume of emails that you received and sent, or by the traffic to your business website? Thankfully Congress put a law in place back in 1998 that has kept that from happening.

bar
The Internet Tax Freedom Act was created to foster the growth of the internet at a time when it was relatively new, by prohibiting any level of government from imposing discriminatory taxes on internet access. This law also prevented taxation on electronic commerce, meaning that if you reside in Texas and buy a book online from Powell’s Books in San Francisco, you cannot be taxed on that purchase by both states.

State and local taxation permanently banned

However the law placed only a temporary moratorium, and has been renewed several times over the past 17 years with only minor adjustments. In June of this year, the House passed its version of the Permanent Internet Tax Freedom Act (H.R. 235) to permanently ban state and local taxation on the Internet.

The Senate had lagged on their version known as the Internet Tax Freedom Forever Act (S.431) but was extended by a continuing resolution into next week. Members of a House-Senate conference committee approved a permanent extension of the Internet Tax Freedom Act as stated in section 922 of their December 9th House Report accompanying the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644).

Sales tax debate continues

Congress is expected to finalize the permanent ban by the end of the year, by amending language in support of the PITFA to the larger legislation. Any states that were grandfathered in due to having taxes in place prior to 1998 will be required to phase out their taxation over the next few years.

The sales tax debate will continue as the moratorium applies only to the internet access taxes. The conference report recommends a temporary extension until June 30, 2020, for multiple and discriminatory taxes on electronic commerce. Vendors and purchasers may still have to deal with the issue of remote sales tax in another five years.

Lobbyists fighting hard to keep it untaxed

Meanwhile three major telecommunication associations including the National Cable & Telecommunications Association, CTIA – The Wireless Association, and the United States Telecom Association are urging the Senate to support this permanent legislation to “ensure that every American can afford to participate in the digital economy…” in their December 14, 2015 letter to members of the U.S. Senate.

As representatives of the largest fixed and mobile broadband providers including Comcast and Verizon, these lobbyists also warned that expiration of the ITFA would likely increase cost of broadband access in part to “an imminent threat” due to the Federal Communications Commission’s reclassification of broadband services as a Title II telecommunications service in February of 2015.

The good news for business

What’s most interesting about these groups’ support of the legislation is that the ITFA was at the forefront of last year’s debate regarding their reclassification as part of the FCC’s net neutrality order, and requires that Internet providers treat all web traffic equally – no blocking of lawful content or services, no throttling and no paid prioritization.

In the long run, this legislative change will help keep the cost of doing business online down for new and small business owners.

Debbie Cerda is a seasoned writer and consultant, running Debra Cerda Consulting as well as handling business development at data-driven app development company, Blue Treble Solutions. She's a proud and active member of Austin Film Critics Association and the American Homebrewers Association, and Outreach Director for science fiction film festival, Other Worlds Austin. She has been very involved in the tech scene in Austin for over 15 years, so whether you meet her at Sundance Film Festival, SXSWi, Austin Women in Technology, or BASHH, she'll have a connection or idea to help you achieve business success. At the very least, she can recommend a film to watch and a great local craft beer to drink.

Business News

Bay Area co-living startup strands hundreds of renters at dire time

(BUSINESS NEWS) They’re blaming COVID for failing as a co-living space, but it looks like trouble was well established even before now.

Published

on

Person packed a bag and walking away from co-living space.

Over the last few years, “co-living” startups have become increasingly common in tech-rich cities like San Francisco. These companies lease large houses, then rent individual bedrooms for as much as $2,000 per month in hopes of attracting the young professionals who make up the tech industry. Many offer food, cleaning services, group activities, and hotel-quality accommodations to do so.

But the true value in co-living companies lies in their role as a third party: Smoothing over relations, providing hassle free income to homeowners and improved accountability to tenants… in theory, anyway. The reality has proved the opposite can just as easily be true.

In a September company email, Bay Area co-living startup HubHaus released a statement that claimed they were “unable to pay October rent” on their leased properties. Hubhaus also claimed to have “no funds available to pay any amounts that may be owed landlords, tenants, trade creditors, or contractors.”

This left hundreds of SF Bay Area renters scrambling to arrange shelter with little notice, with the start of a second major COVID-19 outbreak on the horizon.

HubHaus exhibited plenty of red flags leading up to this revelation. Employees complained of insufficient or late payment. The company stopped paying utilities during the spring, and they quietly discontinued cleaning services while tenants continued to pay for them.

Businesses like HubHaus charge prices that could rent a private home in most of the rest of the country, in exchange for a room in a house of 10 or more people. PodShare is a similar example: Another Bay Area-based co-living startup, whose offerings include “$1,200 bunk beds” in a shared, hostel-like environment.

As a former Bay Area resident, it’s hard not to be angry about these stories. But they have been the unfortunate reality since long before the pandemic. Many urbanites across the country cannot afford to opt out of a shared living situation, and these business models only exacerbate the race to the bottom of city living standards.

HubHaus capitalized on this situation and took advantage of their tenants, who were simply looking for an affordable place to live in a market where that’s increasingly hard to find.

They’ve tried to place the blame for their failure on COVID-19 — but all signs seem to indicate that they had it coming.

Continue Reading

Business News

Las Vegas’ largest dispensary gets massive Infinity Wall expansion

(BUSINESS NEWS) Las Vegas’s largest dispensary is getting a big, expensive makeover, thriving while other brick-and-mortar shops are struggling.

Published

on

Planet 13, Las Vegas's largest dispensary, set to get a huge expansion.

Have you ever heard of an Infinity Wall? If I were you, I’d check it out right now because it’s utterly mesmerizing.

An 80-foot version of this wall is just one of the new features that Planet 13 (or The Company) announced it will be implementing in Las Vegas’ largest dispensary, The SuperStore, this past Monday. In addition to the futuristic entertainment feature (I honestly can’t get over that thing), they will be doubling the sales floor and expanding the dispensary to ~23,000 sq. ft. For reference, the entire Planet 13 SuperStore complex is 112,000 sq.ft.

Why expand an already massive dispensary during a pandemic, when most brick and mortar stores are suffering? Well, according to Larry Scheffler, Co-CEO of Planet 13, The Superstore is actually thriving beyond belief.

“We are achieving record sales even with Las Vegas at ~50% tourist occupancy. As Las Vegas returns to normal and this industry continues to grow, we anticipate that this will be first of many expansions we will undertake to keep up with demand.”

The expansion adds 40 points of sale to uphold the outstanding customer service reputation Planet 13 has. If you do have to wait, you have a state-of-the-art entertainment system to enjoy. It’s win-win for any and all visitors.

The CapEx cost of the expansion between is $1.5 – $2.5 million. The project is expected come to completion by the end of Q1 2021.

Las Vegas has become a sort of cannabis mecca. After all, it’s home to MJBizCon, the industry’s largest networking event attended by thousands from around the world. And the popularity and overall acceptance makes it an easy choice for any cannabis aficionados. The SuperStore, like most things in Las Vegas, is huge, glamorous, and caters to tourists.

I have no doubt that when the city bounces back from the pandemic, this new-and-improved dispensary will be a must-visit destination.

Continue Reading

Business News

The future of work from home will be a hybrid, says Google CEO

(BUSINESS NEWS) Google is looking to adapt a more flexible, long-term hybrid work model for their employees, which includes partially working from home and partially being on-site.

Published

on

Work from home woman at a laptop.

Google, the world’s largest search engine company (yes I know they do other things), is positing that the corporate office will look completely different post-COVID-19.

In September Google’s CEO, Sundar Pichai said that the organization was making changes to its offices that would better support employees in the future. This includes “reconfiguring” office spaces to accommodate “on-sites”, days when employees who regularly work from home will come into the workplace. The move comes after Google was one of the first major tech companies to announce that employees could possibly work from home through next summer.

“I see the future as definitely being more flexible,” Pichai said during a video interview for Time 100, “We firmly believe that in-person, being together, having that sense of community, is super important for whenever you have to solve hard problems, you have to create something new,” he said. “So we don’t see that changing, so we don’t think the future is just 100% remote or something.”

It was reported that Google’s decision to work remotely into mid-2021 was originally in part to help employees whose children might be learning remotely during the coronavirus pandemic. Pichai said that several factors went into the decision, stating that improving productivity was a major concern.

“Early on as this started, I realized it was going to be a period of tremendous uncertainty, so we wanted to lean in and give certainty where we could,” Pichai said. “The reason we made the decision to do work from home until mid of next year is we realized people were trying hard to plan… and it was affecting productivity.”

Pichai also mentioned that the decision would help the firm embrace the reality that remote working wasn’t going anywhere once things returned to normal. A recent survey at Google found that 62% of employees felt they only need to be in the office on occasion, while 20% felt they didn’t need to be in the office whatsoever. While the work from home trend had already been growing over the past several years, the pandemic accelerated that movement greatly.

With housing costs surging in the San Francisco area, where Google headquarters resides, many employees have been forced to move outside of the city to afford a mortgage. This caused many to commute long hours into the office, something Pichai realized was a problem.

“It’s always made me wonder, when I see people commuting two hours and away from their families and friends, on a Friday, you realize they can’t have plans,” Pichai said. “So I think we can do better.”

It’s too early to tell whether or not Pichai’s vision of a “hybrid model” will be adopted by other companies when the pandemic ends. One thing is for certain though—work will never be what is pre-COVID-19.

Continue Reading

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!