Friday, March 21, 2008
Utah's cell-phone taxes roam near top of national list - Salt Lake Tribune
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The freedom to speak on the spell come ups with a price: Utah's cell-phone users pay the 11th-highest taxations in the nation. In a new study released by Tax Analysts, Beehive State ranks high, but have seen a recent decrease in taxations for cell phones. "The good news is that the Beehive State Legislature is moving in the right direction," said survey writer George C. Scott Mackey, an economic expert who stands for the six biggest cell-phone companies in the nation. Currently, a Beehive State cell-phone user with a $60 monthly program would pay just more than than $7 a calendar month in taxes. Mackey states the Legislature necessitates to travel further, and subject cell telephones to only gross sales taxation and 911 fees. The move would assist cell-phone companies vie against cable, Internet and other Web-based content suppliers as people increasingly get to breaker the Web, download music and ticker pictures on their cell phones. "By any measure, radio service was targeted for a disproportional share of taxation additions when compared to broad-based consumption taxes," he composes in the report. "If states and vicinities prevail in imposing prejudiced taxations on radio suppliers and customers, they will unwittingly drive consumers to buy services sold by suppliers not subject to those taxes."
Beehive State complaints a state gross gross sales tax, which the Legislature voted to increase .05 percentage next year, and a local sales tax. Right now, Advertisement
they number about 6.7 percent. In improver to the gross sales tax, cell-phone users pay for 911 and poisonous substance control services both statewide and locally. While Mackey states the cell-phone companies he stands for hold with those fees, they differ with others. In Utah, cell telephones are charged an further 3.5 percentage public utility tax, reduced from 4 percentage in 2007. That taxation do the fees charged to radio users the same as users of landlines, said Roger Tew, policy and taxation analyst for the League of Cities and Towns. He acknowledges that Beehive State have a high state sales-tax rate, which adds to the overall revenue enhancement on cell phones, but said equity was the larger issue. "We eliminated the differentiation between the two," said Tew, a former Beehive State taxation commissioner. "Why should cell-phone users have got got got no taxation and landline users have a tax?"
Mackey understands that argument, but states that neither radio nor landline users should have to pay the further taxes. He said the statement falls back to right of manner issues, where landline users paid further taxations because the telephone lines were located on public land. With cell-phone companies, most towers are on private land, and they pay rent for most towers on municipal land, he said. "What is the justification of having any higher taxations for any telecommunications company?" Mackey asked. Tew said instead of getting into such as issues, the state decided to do taxations equal between landlines and wireless. "What we've done is that we have got a relatively rational policy on revenue enhancement of cell phones," Tew said. "It doesn't substance if it's a cell telephone or a landline."
smcfarland@sltrib.com
Labels: cell phone, cell phone users, cell phones, freedom, price utah, tax analysts, taxes
