Most states impose corporate income taxes on the net income of telecommunications providers. All neighboring states impose these taxes on most, if not all, providers. The same holds true for the other major states shown in the table. As previously noted, a dwindling number of states impose gross receipts taxes on telecommunications providers. Few of New York's neighboring states impose these taxes.
New Jersey imposes a per unit basis gross receipts tax on the intrastate receipts of LECs.
Pennsylvania imposes a 5 percent tax on the receipts of all providers of intrastate services. As for other major states, California, Illinois, Michigan and Texas do not impose gross receipts taxes. Florida imposes a 2.5 percent gross receipts tax on intrastate, interstate and international services. Ohio's 4.75 percent tax applies only to the receipts of LECs. Most states impose sales or excise taxes on sales of telecommunications services.