Owensboro Municipal Utilities is required to begin applying school and sales taxes to their point-to-point (PtP) network service, though officials voted Thursday to lower the rates for that service in order to keep customer’s bills effectively the same.
During their commission meeting, OMU officials said that pursuant to a recent audit, the utility must now apply school and sales taxes to PtP services. Therefore, the commission agreed that rates for all levels of PtP services be adjusted to offset the tax increase to customers.
“We believe that it makes sense for us to adjust those rates downward so we are basically leveling out,” said General Manager Kevin Frizzell. “When we increase the taxes, we are lowering the rate so the customer’s bill will stay effectively the same.”
The changes will go into effect Feb. 1. No other telecommunication services required taxes to increase.
schedules have been reviewed and found to be sufficient in
recovering the appropriate cost of services and are competitive with current market conditions.
Affected customers will be notified either by letter or email.
The PtP service connects one location to another, such as one branch to a different bank branch. PtP provides a dedicated, high-speed connection for secure data transfer.
