Vonage Adds Sales Tax and Directed Share Program

This morning, I noticed a new cryptic message on the Vonage website which reads:

On or about May 1, 2006, we will begin charging sales tax to customers in several states across the US. Some state and local governments are requiring that we assess sales taxes on your internet phone service. These charges may be a flat fee or a percentage of your charges and may change from time to time without notice.

The states charging tax will be:
Arkansas, Colorado, Connecticut, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota,North Carolina, North Dakota, Nebraska, Nevada, New Jersey, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah and West Virginia.

In other Vonage news, they will be offering certain customers a chance “to reserve shares of common stock for sale at the IPO price in a Directed Share Program”. For more information, see www.vonageipo.com.

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