Taxpayer ran a service which converted customers’ incoming faxes to e-mails and their outgoing e-mails to faxes. Taxpayer filed claim against city for unlawful collection of Internet access tax under Internet Tax Freedom Act provision imposing a moratorium on the collection of taxes by state and local governments on purchases of telecommunications by providers of “Internet access.”
The Court of Appeal held that:
- Taxpayer’s service did not allow customers to “connect to the Internet” under Internet Tax Freedom Act;
- Taxpayer’s service did not provide a “homepage” or “electronic mail” under Internet Tax Freedom Act; and
- Taxpayer’s purchase of Direct Inward Dial (DID) telephone numbers was not a purchase of “Internet access.”