TELECOM Digest OnLine - Sorted: Telecoms to fight Patrick tax proposal

Telecoms to fight Patrick tax proposal

Monty Solomon (
Sun, 25 Feb 2007 01:01:44 -0500

, Message 3 of 10
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By Peter J. Howe, Globe Staff | February 24, 2007

Chronic bitter enemies -- cable television and telephone companies --
yesterday found something they could agree on: Both industries hate
Governor Deval L. Patrick's plans to hit them with an estimated $78
million in new local property taxes as part of Patrick's crackdown on
alleged corporate tax loopholes.

Telecom companies and industry trade groups are gearing up to try to
block Patrick's proposal to repeal a state law dating to 1915 that
exempts telecommunications companies from paying local taxes on their
poles, wires, and other network equipment placed along municipal

Patrick said it made no sense that in some municipalities electric
companies pay local taxes on wires and gear that are installed on the
same telephone poles as telecom equipment. In communities where
Verizon Communications Inc. jointly owns poles with either NStar or
National Grid Group PLC, the electric company pays tax on its half of
the pole, but Verizon doesn't.

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