Domestic Taxes

House to take up wireless tax bill next week

A March report, for instance, found that residents in nine states pay at least 13 percent in state and local taxes on their cell phones. Studies have also shown that the average wireless consumer all told pays 16.3 percent in taxes.

The House bill would freeze any new state or local taxes that would only be levied on wireless services.

“By freezing wireless taxes and fees, we hope to spur additional consumer driven development in wireless broadband and to increase access to advanced wireless networks,” Lofgren said in a March statement.

“The exorbitant taxes on wireless customers are not only unfair, they are counter-intuitive, adding yet another costly impediment to the success of so many American businesses,” Franks added.

A companion bill in the Senate, which has yet to be considered by the Finance Committee, has around a dozen sponsors.

A group of local government officials has opposed the bill, saying it ties their hands at a time when localities are facing budget shortfalls.

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