Taxing Times Ahead for Rural Communities?

There follows an invitation FibreStream recently accepted to consult with the VOA as regards the potential imposition of business rates to WiFi and WiMAX networks.

As previously highlighted, this development threatens particularly to discriminate against rural communities by significantly impacting the costs and therefore viability of delivering broadband services to local residents and businesses, as the lower population density in rural areas makes wireless First Mile delivery solutions attractive from a Social Inclusion perspective.

FibreStream invites all interested parties in the wider community broadband constituency to tell us your concerns and opinions about this development which we will collate and share with VOA.

The consultation is scheduled to take place in the early part of February 2010.

Dear Sir,

LOCAL GOVERNMENT FINANCE ACT 1988 – NON-DOMESTIC RATING

TELECOMMUNICATION NETWORKS – WIFI AND WIMAX NETWORKS

The Valuation Office Agency (VOA) is an executive agency of HM Revenue and Customs (HMRC) with 21 Group Valuation Offices located throughout England and Wales (website: www.voa.gov.uk).

Each Valuation Officer has a statutory duty under part III of the 1988 Local Government Finance Act to compile and maintain non-domestic rating lists for all relevant non-domestic hereditaments.

The sites and any rateable infrastructure associated with wireless radio based networks (WiFi & WiMAX) are potentially relevant non-domestic hereditaments, which could be liable for non-domestic rates and accordingly will need to be valued and assessments entered in the appropriate rating lists in England or in Wales.

I am currently considering the appropriate levels of site rental values and assessments that should be adopted for Wireless Fidelity (WiFi) and Worldwide Interoperability for Microwave Access (WiMAX) installations.

Before I reach my final conclusions, I thought it would be beneficial to arrange a joint meeting to discuss the valuations with you and with the other WiFi and WiMAX operators. In particular I would like to discuss;

1. Variations of WiFi and WiMAX Equipment.
2. Identification and cost of rateable elements.
3. Site Rents – Details of recent transactions.
4. Locations and addresses of hot spots.

I would stress that it is in your interest to take part in these discussions and provide relevant information to allow the VOA to accurately determine the appropriate value of any rateable sites. In the absence of information from you and the other operators, the VOA will have no option but to estimate the valuations, which may lead to an excessive rates burden or underassessment, which may have to be corrected at a later date. The VOA is keen to avoid having to estimate as it is clearly in no one’s interest.

Also posted on www.fibrestream.co.uk