Dyson On Why The Domain Name Fee Is Not A Tax

Computergram International, July 1, 1999

Last week Esther Dyson, interim chair of the Internet Corporation for Assigned Names and Numbers (ICANN) addressed the issue of the so-called "tax" on domain name registrations that is being proposed by ICANN. Currently it is set at $1 per registration and is payable by the registrars to ICANN, although obviously it effects the price those registrars charge their customers, the people who register domain names.

Dyson, speaking on a panel at last week's INet'99 conference in San Jose, asked rhetorically, "who should be funding ICANN?" She then provided the answer herself, "the people who benefit from it." She continued, "we're trying to price our services to the internet community" and she believes the ultimate beneficiary of ICANN's working well will be the domain name holder. She says "it's a fee based on usage; to us that's not a tax, it's a fee."

Opponents of ICANN quickly dubbed the fee a "tax" in part to indicate their opposition to it and to other aspects of ICANN's work. It became a central theme in the letter sent to Dyson and US Commerce secretary William Daley by Thomas Bliley, the Chair of the House Commerce Committee, who has launched an investigation into ICANN. Dyson has until July 6 to respond to Bliley's long list of questions and she said last week that she envisages congressional hearings towards the end of July, although the timetable is obviously not in her hands.