Los Angeles Imposes Tax on VoIP Phone Service
Los Angeles voters have imposed a 9 percent tax on Internet phone calls, known as VoIP (Voice over Internet Protocol). VoIP calls had been tax-free in the city. Voters also enacted a 1 percentage point reduction in the tax on all other phone calls, from 10 percent to 9 percent. Most phone calls are still made over traditional wireline or wireless phones, but Internet phone service is a rapidly growing segment of the telephone market.