At a news conference following the event, Gov. Warner expressed optimism on the future of the discussions. "How can we find a way to work together on issues related to taxation of communications services?" he said. "We want something that is fair, equitable, predictable and more simple. It's a big challenge."
Tauke noted that there is a "new world in telecommunications, not bound by jurisdictional lines.... We want something that is predictable, workable, easy to administer and fair to all in the industry."
Warner said the group "outlined some principles" with the goal toward "how can we make this system work more productively.... We need a model that can be used across the country."
Government leaders joined industry groups in light of growing recognition that tax reform was needed for the changing telecommunications industry as well as concern over a spate of recent court and regulatory decisions and proposed legislative "fixes" that could reduce local taxing authority. Local and state governments collect a myriad of taxes and fees from the telecommunications industry, which include providers of local and long-distance telephone and wireless services, cable, broadband, Internet, voice over Internet, and other data services.
NLC is on record in opposing any effort to preempt local government from collecting or administering revenues or that could reduce net revenues.
Warner said today that the participants committed to develop a framework over the next several months that would address the full range of issues. He stressed the importance of addressing local concerns in the ongoing discussions. In addressing the revenue question, Warner said, "Local governments must continue to provide core services that our citizens have come to expect."
