The State of New York denied a refund claim citing that line access charges were taxable as telephony or telephone services and did not qualify as interstate internet access charges. The taxpayer’s main argument was that the lines were a component part of the interstate internet access service that they provided. The State of New York stated that the internet access service charges were not taxable, but that was not the question at issue. The taxpayer’s purchase of line access from multiple vendors was not used in the provision of interstate telephone service, but merely in the provision of exempt internet access service. This created an issue where the purchases of the line services were not exempt as an interstate telephone service because use was considered consumed in the state as intrastate service. (Concentric Network Corporation, New York Division of Tax Appeals, Administrative Law Judge Unit, DTA No. 819533, January 20, 2005)