Cost Recovery Surcharge & Va Personal Property Tax Recovery for IP Transit

Mon Jan 6 15:29:07 UTC 2020

On Mon, Jan 6, 2020 at 6:40 AM Siyuan Miao <aveline at misaka.io> wrote:

> NANOG,
>
> We've recently signed contract of colocation + IP transit with a local
> provider in Northern Virginia.
>
> Co-location services is okay but we found something unusual on our IP
> transit invoices.
>
> - Va Personal Property Tax Recovery (1.8%)
>
> - Cost Recovery Surcharge (3%)?
>
> We've talked with our providers but they told us:
>
> > we use a tax engine that provides the taxes/rates to our services. If
> you would like further language on them, please let me know and I will have
> some one send that over.
>
> Has anyone else ran into this? If this is a legit "surcharge"?
> Also, IP transit isn't a property, why is there a "Property Tax" for IP
> transit?
>

Hi Siyuan,

If it's not written in to your contract, it's a breach of contract. Either
way it's a deceitfully imposed surcharge, not a state tax. Virginia does
not tax the sale of services like transit and colo. More, the only personal
property tax I've heard of in Virginia is on motor vehicles.

Regards,
Bill Herrin

-- 
William Herrin
bill at herrin.us
<https://bill.herrin.us/>
https://bill.herrin.us/
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