Mobile Issues | Wireless Freedom | Wireless Innovation
Wireless Service Taxes
In recent years, wireless users have become a favorite target for new state and local taxes. Today, state and local taxes and fees average more than 15 percent of consumers' cell phone bills. That's double the cost of ordinary sales taxes.
Why we care
- Wireless is unfairly taxed at higher rates. Unfortunately, given ongoing state budget troubles, the rush to tax wireless consumers is becoming even more pronounced. Across the country, cities have been rewriting utility regulations to expand the list of taxable wireless services. And some cities have successfully persuaded courts to impose new "business license taxes" on wireless services at rates as high as 10 percent. (By comparison, other business license taxes are typically about one percent.)
- Mobile broadband helps bridge the digital divide. According to the Pew Internet and American Life Project, one in three African Americans and Hispanic Americans use mobile devices to access the Internet daily - more than many other U.S. communities. Wireless is key to closing the digital divide and can help our country become a truly connected nation, but consumers must be able to afford the technology.
Our point of view
- Wireless is an economic success story. The development of cell phones and other services is one of the great successes in America's economy, creating jobs and wealth. It also provides a lifeline for Americans without traditional phone service.
- Regressive taxes hurt consumers.
- Excessive taxation could deter innovation. This rush to tax mobile consumers also discourages use of wireless broadband options that can be vital to expanding options for tele-work and reducing greenhouse emissions.
Our bottom line
Wireless users already pay more than their share in taxes. Officials should help ease this unnecessary burden rather than add to it.


