Oregon proposes local cell phone tax

Major cell phone lobbyists have launched a campaign opposing a proposed law for Oregon municipalities to collect a 5 percent cell phone tax.

Late last week, the Cellular Telecommunications & Internet Association sent letters to major Oregon lawmakers urging they defeat the tax. The proposed tax had been introduced earlier this year.

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Already, about 17 percent of a typical U.S. cell phone bill covers state taxes and federal fees--an increase of 3 percentage points more than in 2003. At a recent industry gathering, Steve Largent, chief executive of major wireless lobbyists CTIA, warned of a new blitz of state and municipal cell phone laws in the works. The patchwork of regulations and the new line items on cell phone bills will slow growth and development of better cell phones and services, Largent said.

"While this may amount to a windfall for Oregon cities, it is certainly a sizable tax increase for your constituents," Largent wrote to Oregon lawmakers on Friday. "Utility-type tax proposals like the one being considered in Oregon only serve to punish consumers who have opted to become wireless subscribers."

[bob blob]

hey

why don't they put a tax on email while they're at it?

[CliffClaven1]

Cell Phone Tax

This is another way for a neighboring state to get into one's wallets!
Take a Gander what Washington State has done to it's tax payers today on the gas tax!!!
I thought communism was dead, but it was resurrected with this latest Governor.
People vote NO, just to have it dismantled or worked around.
I am sure they (Wa) will be reading this current Oregon action looking for another source of revenue!!
"Soon to be a former resident of the N.W." thanks to it's out of control ways.....!

Watch Out!

This considered tax by Oregon is but the tip of the iceberg. As the internet and cellphone technologies converge, there will be dollar signs in the eyes of the politicians nationwide. Constantly wanting to spend more money, they will attempt to apply taxes and "user fees" to internet content as it applies to cellular usage, which we all know is more and more prevalent. Oregon already has instituted taxes that were earlier voted down by the populace, and they have a history of fighting federal regulation, i.e. the "Death with Dignity" act, state healthcare, the PERS public retirement system (which has cost taxpayers untold billions and is responsible for the huge budjet deficit in Oregon).
This tax cannot pass. I urge all Oregonians to contact their legislators and kill this bill. I urge those from other states to carefully watch their legislation to be sure a tax like this doesn't gain a foothold in their state. This can severely retard IT growth, both locally and nationally.

Not the first

The story is incorrect in implying that the Oregon statute would be the first to allow this. Washington State has had a local option telecommunications tax that has applied to cellphone charges since the 1980's. Seattle has imposed a 6% tax under this provision, without any apparent impact in cellphone adoption rates.