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New taxes levied on cellphones

Well gee, just a long as something is being taxed, right? That seems to be the way things are going according to Techdirt. This is sad and to be honest, is it really needed?

State and local governments, reeling from declines in taxes from land-line phone service, are imposing new taxes on cellphone users, according to a story published Monday in USA Today.

The paper said the new charges will increase cellphone bills $2 to $10 a month.

Some of the new taxes USA Today reported:

* Last week, Alexandria, Va., joined 31 other of the state’s 39 cities in levying cellphone taxes, approving a $3-a-month tax.

* Baltimore enacted a $3.50 cellphone tax last September.

* The Oregon legislature has a 5 percent tax proposal up for consideration and Missouri is looking at a 3 percent or 4 percent tax.

The FCC reports the number of wired phones lines fell from 167 million in 2000 to 132 million in 2004. Cellphones grew from 108 million to 182 million during that time. Cellphone revenue grew from $56 billion to $102 billion, while land-line revenue dropped to $197 billion from $228 billion, according to figures from the Telecommunications Industry Association. [Read the rest]

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