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State Cellphone Taxation Up
With VoIP off-limits and landlines dying...
by Karl Bode 07:15PM Tuesday May 10 2005
From 2000 to 2004, US landlines dropped from 167 million to 132 million, while cellphones grew from 108 million to 182 million. CNN/Money notes how a growing number of states have started imposing new cellphone taxes to help make up for that lost revenue, particularly since they haven't been allowed to tax VoIP. The phone industry has launched StopAddingToMyBill.com to fight the moves.

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lazarus_

join:2002-08-31
Resolute, NU

1 edit

Providers get rid of the "network access fee"

Sales reps already say that fee is a government tax. (here in Canada anyways), so now providers can kill that tax, and their sales people will no longer be lying..
--
Facts are meaningless; you can use facts to prove anything that's even remotely true! Facts, schmacks

TheSaint

join:2002-01-25
Hanover Park, IL

Re: Providers get rid of the "network access fee"

They could be a bit more honest themselves and just list the wholesale price they have to pay the government for the various "fees" they pass on to the consumer. I wonder how much of it is padded with additional "markup". Still, that doesn't dispute the fact that cell phone taxes are already much too high as it is.
--
The only thing necessary for the triumph of evil is for good men to do nothing. --- Edmund Burke
Kill your TV, then Internet Explorer: »www.mozilla.org

wireles voip

@ny325.fios.verizon.n
This is ripe for something that will be under high powered wifi voip that doesn't subscribe to any 'tax' local, state of federal.. but its scope would be quite limited at first, companies would need to see s sustainable business model first..
There is a tax revolt on POTS lines going on to the tune of over 10 million voice lines already between the major carriers of voip today
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1
wonder if FIOS is taxable, if they pull the POTS line from your house when you subscribe that means your phone is technicly VOIP and isnt taxable except for the 911 fee.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
Taranis

join:2001-12-06
Mount Vernon, WA

The phone industry is guilty as anyone..

This is nothing but a PR move from the Phone Companies. When was the last time anyone's see a phone company pay its own taxes instead of passing them off to the consumer?

nixen
Rockin' the Boxen
Premium
join:2002-10-04
Alexandria, VA

1 recommendation

Re: The phone industry is guilty as anyone..

said by Taranis:

This is nothing but a PR move from the Phone Companies. When was the last time anyone's see a phone company pay its own taxes instead of passing them off to the consumer?
Umm... when, in the history of commerce for profit, has any seller not ulitmately passed along the cost of doing business to their customers?

-tom
--
"Some people have morals, standards and ideals about quality, but I'm an American: I couldn't care less." --Tony Pierce (paraphrased)
lesopp

join:2001-06-27
Land O Lakes, FL

Re: The phone industry is guilty as anyone..

Agreed, but lets look at it this way. When, in the history of commerce for profit, has any seller not ultimately passed along the cost of doing business to their customers, until after the customer was contractually obligated for service based on a bait and switch pricing scenario.
moonpuppy

join:2000-08-21
Glen Burnie, MD

Baltimore City does it....

Baltimore City charges $3.00 per cell phone or pager account. This is nothing more than a luxury tax.

And this has been a windfall in that the city now has a surplus for the first time in years (yet the school system seems to "misplace" millions of dollars a year. )
kaila

join:2000-10-11
Lincolnshire, IL

Re: Baltimore City does it....

It's the municipality (local) tax which is outrageous in my case. Mine adds 9.9% to my sprint bill every month. The state (Illinois) adds a flat .75 cents.

rideboarder
welcome to the social
Premium
join:2003-07-28
Snohomish, WA

Re: Baltimore City does it....

up here in washington state they calculated the total tax to about 25%, one of the highest in the nation, if not the highest.

LinuxJunkie

join:2005-01-19
Cyberspace

Pot Calling the Kettle Black?

quote:
The phone industry has launched StopAddingToMyBill.com to fight the moves.
Unless they're referring to the cell phone providers, the POTS service providers have a lot of balls if they're running a campaign called "stop adding to my bill" considering they're the ones who have mastered the art of hiding rate increases in bullshit "taxes" such as the Universal Service Recovery tax.

Karl Bode
News Guy
join:2000-03-02
kudos:39

Re: Pot Calling the Kettle Black?

I think the "regulatory recover "unfee" originated in the wireless industry....

PhoenixDown
FIOS is Awesome
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1
Reviews:
·Verizon FiOS

Thier figures of off...

At least by my bill.

My plan is $39.99 + $0.50 for text messages. My taxes, surcharges and BS are 32%

$40.49 My Plan + text messages for the month

$1.75 REGULATORY PROGRAMS FEE
$1.34 UNIVERSAL CONNECTIVITY CHARGE
$1.56 TELECOM EXCISE TAX
$0.30 LOCAL WIRELESS SURCHARGE
$0.38 MCTD SURCHARGE
$1.42 FEDERAL TAX
$0.87 NY CITY UTILITY G.R. SUR
$1.20 ST WIRELESS COMM SURCHARGE
$3.98 SALES TAX

$12.80 Tax Total
32% Tax
--
www.pulsetoday.com -- marketing forums!

Tomek
Premium
join:2002-01-30
Valley Stream, NY

Re: Thier figures of off...

My plan is $39 as well (no SMS) and I get bill of around $50. $10 or 20% of my total bill is taxes/fees.
That's outrageous. Why not impose ONE official tax, like FEDERAL TELECOM TAX with a specific rate and then let government split it among their agencies. When I got my first bill in America, it took CSR about an hour to go over every individual tax/fee on the POTS bill.
--
Semper Fidelis
rradina

join:2000-08-08
Chesterfield, MO

Re: Thier figures of off...

Why not impose ANY TAX. If the tax is truly used to manage the regulation of that particular product, fine. I don't like it but fine. You can't tell me that it costs 30+% to regulate a product. That's bull.

Fatal Vector

@aol.com

Re: Thier figures of off...


It's because they know you will pay it because you are addicted to the wireless phone. You'll squawk about more property, income and sales taxes, so, to keep up their level of spending (god forbid they actually STOP spending what they dont have) They add these taxes and charges to your phone bill. Untill and unless the american popu;lation really makes a big deal about this kind of stuff, they will keep soaking you. You notice all these taxes are now on things they know you are loathe to do without.

They know you, sucker, better than you know yourself. And Joe box of rocks will just keep paying and paying, just like your elected "representatives knew he would.

toby
Troy Mcclure

join:2001-11-13
Portland, OR
said by PhoenixDown:

At least by my bill.

My plan is $39.99 + $0.50 for text messages. My taxes, surcharges and BS are 32%

$40.49 My Plan + text messages for the month

$1.75 REGULATORY PROGRAMS FEE
$1.34 UNIVERSAL CONNECTIVITY CHARGE
$1.56 TELECOM EXCISE TAX
$0.30 LOCAL WIRELESS SURCHARGE
$0.38 MCTD SURCHARGE
$1.42 FEDERAL TAX
$0.87 NY CITY UTILITY G.R. SUR
$1.20 ST WIRELESS COMM SURCHARGE
$3.98 SALES TAX

$12.80 Tax Total
32% Tax
Half of those aren't taxes, they are "fees" that the phone company charges you.

PhoenixDown
FIOS is Awesome
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1

Re: Thier figures of off...

Perhaps but I honestly dont care... its still an added expense.
--
www.pulsetoday.com -- marketing forums!
Brisk6

join:2003-07-11
Colorado Springs, CO
Prepayers don't pay any tax, other than sales tax. (7.4% here)
Though the minutes are pricey enough that they likely cover the 14.85% that they say I should be paying.
In any case, landline taxes are still much, much higher based on percentage. I pay only 14.88 base for my home phone, but the taxes are 10.22, or 68.7%. Telcos, states, feds, there's plenty of blame to go around.

PhoenixDown
FIOS is Awesome
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1

Gov site for official ny city / state tax?

I want to verify exactly what taxes are applicable and what the %'s are. Does anyone know where to find this for NYC?
--
www.pulsetoday.com -- marketing forums!
Skippy25

join:2000-09-13
Hazelwood, MO

1 edit

Re: Gov site for official ny city / state tax?

This is from »www.stopaddingtomybill.com/analy···p20.aspx

Top 20 Most Taxing States
Some states are worse than others when it comes to how much they tax wireless consumers. Below is a ranking of the top 20 states in which wireless consumers are paying the most taxes and fees for their service.

Level of Taxation on Wireless Consumers

State-Local Total
New York 16.23% 21.71%
Florida 16.12% 21.60%
Washington 16.04% 21.52%
Illinois 15.57% 21.05%
Nebraska 15.13% 20.61%
Texas 14.19% 19.67%
Rhode Island 14.07% 19.55%
Pennsylvania 13.57% 19.05%
California 13.18% 18.66%
District of Columbia 12.57% 18.05%
South Dakota 12.01% 17.49%
Tennessee 11.57% 17.05%
Missouri 11.12% 16.60%
Arizona 11.06% 16.54%
North Dakota 10.94% 16.42%
Wyoming 10.67% 16.15%
Kansas 10.32% 15.80%
Utah 10.25% 15.73%
Arkansas 10.21% 15.69%
Kentucky 9.98% 15.46%
(Source: Scott Mackey, State Tax Notes, July 19, 2004)

Just found this link here that shows all states.
»www.stopaddingtomybill.com/docum···down.pdf

PhoenixDown
FIOS is Awesome
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1
Reviews:
·Verizon FiOS
sorry but I was looking to find out what the specific applicable taxes were and what percentages, the site was good but doesnt give you that kind of granularity.

Thank you though.
--
www.pulsetoday.com -- marketing forums!
Newegg
Comcast steals modems

join:2004-11-14
Norcross, GA

Start taxing VOIP also

So I guess if I go all VOIP they going to tax that too.
--
"Anonymity is power on the Internet." -Me
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Start taxing VOIP also

Eventually.... yes they will.

rawgerz
The hell was that?
Premium
join:2004-10-03
Grove City, PA

1 edit

86 million new wow..

and i never owned one!:D
thats like 2/3rds of the population and cell phones are still $40-70 a month? common
ive recently looked at the rates for verizon and i was APPALLED! do they want EVERYONE to talk after 9:01PM??
and theres still no affordable internet via cell plans and thats still the best reason it would appeal to me, if verizon could offer $39(and they could tax $5 on it for all i care) 2mb/128-256 with no caps i would rush into buy one.. its still virgin territory
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john131971

join:2003-05-05
Louisville, KY

Re: 86 million new wow..

and that would truely change the game!
neftv

join:2000-10-01
Broomall, PA

revolt people

Call, email, your local reps. Tell them to stop it with the taxes already.
Unless your happy with paying these taxes that will end up costing more than the service itself one day then go back and sit on your couch and drink your beer.

xpbx
220, 221, Whatever It Takes.
Premium
join:2000-11-08

the peasants are revolting...

king: "yeah, they stink on ice"
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD

Most people

Send the billing address to some where that gets less taxes.

PhoenixDown
FIOS is Awesome
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1

Re: Most people

Thats really not a bad idea... I can get my paper invoice surpressed so yeah. How does Mexico sound? What are the taxes there, a few pesos?
--
www.pulsetoday.com -- marketing forums!

Notorious

join:2001-03-30
Brooklyn, NY

Unreal

My plan is 75 bucks, after taxes, 97. Talk about getting mugged.

viperpa33s
Why Me?
Premium
join:2002-12-20
Bradenton, FL

Taxation without representation

I hate taxes just as much as the next guy, probably even more so. It's just history repeating itself, taxation without representation. Then you have the people who want everything in the world, so how do they expect the government to pay for it?

•••

plk
Premium
join:2002-04-20
united state

What a cash cow for our govt

Around 1990, before the cell phone really took off and before dial up internet, the number of lines were smaller. I don't remember the number. I just know how much area code splitting was going on in the 90's.
So, this has been a gravy train for the govt and now they are addicted to it. I wonder if the founding fathers thought....freedom of speech...... but we can always tax it to death. (I know, that's a stretch)
Never the less and just guessing, I would assume over 100 million lines have been added in the past 15 years.

Mean while we are exporting jobs, importing cheaper labor, and driving down wages. But that's another forum.

Anyone know the phone line statistics for around 1990?
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Soul_Seeker

join:2005-05-10
Dubuque, IA

No Cell Phone Here

I don't have a cell phone and really do not see a need for one in the near future.

Lord Wanker

join:2001-10-23
Montreal, QC

Just suck it up.

Just consider all of these cell phone taxes as a "Disturbing the Peace by jabbing away" fine and a "down payment on the accident damage I am going to cause by driving while trying to handle my micro sized cell phone" fee.
--
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Its never too late to think......think about it.