California commission pulls plan to tax text messages

California is ditching a plan to place a tax on text messages following a ruling by the Federal Communications Commission (FCC).

California regulators on Friday withdrew the proposal, citing a new rule from the FCC that said text messages are an "information service," not a ‚Äútelecommunications service,‚ÄĚ according to CNN.

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The federal Telecommunications Act limits state authority over information services, according to a post on the ruling from the California Public Utilities Commission (CPUC).

The CPUC proposed the fee last week, suggesting the money could be used to fund phone service for low-income residents.

The proposal drew backlash from trade groups and wireless carriers, who said that it would be akin to placing a tax on conversations and could have created inequity between wireless carriers and messaging apps like WhatsApp.

The CPUC was set to vote on the proposal in January.