Taxes on mobile phones are “significantly higher than many other...
Taxes on mobile phones are “significantly higher than many other common consumer items” and are often hidden or obscured by state and local governments, said an analysis from the Tax Foundation. The average U.S. wireless consumer pays taxes and fees…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
of 16.26 percent, of which state and local charges average 11.21 percent. Twenty-three states have average state-local wireless taxes and fees in excess of 10 percent, and with federal taxes, some cellphone subscribers pay more than 20 percent in taxes. States favor the taxes because they can raise revenue in a relatively hidden way, the study said. Universal Service Fund charges are modest in most states but particularly excessive in Nebraska and Kansas, where they exceed 4 percent of wireless bills. In Nebraska, the combined federal, state and local average rate is 23.69 percent, and in Florida, Illinois, New York, and Washington it exceeds 20 percent. Notably among local jurisdictions, Baltimore imposes a $4 a line monthly tax on wireless users, on top of federal and state charges. Montgomery County, Md., imposes a $3.50 a line monthly tax. These per-line charges are especially burdensome on low-priced “family share” plans, the study said.