Jump to content

California to Consider Taxing Text Messages in 2019


Geee

Recommended Posts

california-to-consider-taxing-text-messages-in-2019

California regulators are currently contemplating whether residents would have to pay a fee on text messages from their cellphones.

The proposed tax would help fund programs in the state that provides low-income Californians with phone service and will be discussed further during the January 2019 meeting by the California Public Utilities Commission.

The rational from California regulators is this: Text messaging uses the same cell towers as phone calls, yet do not face similar fees—particularly in the era where voice calls have dropped precipitously over the last number of years.:snip:

Link to comment
Share on other sites

4 hours ago, Geee said:
california-to-consider-taxing-text-messages-in-2019

California regulators are currently contemplating whether residents would have to pay a fee on text messages from their cellphones.

 

 

California GOP Pushes Back on Plan to Tax Texts

FCC deals blow to tax plan but backers undeterred

Susan Crabtree
December 14, 2018

California Republicans, still smarting from their big midterm losses at the polls, are ridiculing a plan by Democratic-dominated state regulators to tax text messaging on all mobile phones—a proposal drawing fire from Silicon Valley's wireless industry and business groups.

(Snip)

Tech industry and business groups are fighting the tax at the state and federal level.

The Bay Area Council, the California Chamber of Commerce, and the Silicon Valley Leadership Group, all of which are working to stop the new tax, calculated that it could costs consumers $44.5 million a year.

The groups said they are worried that some regulators want the new tax to be applied retroactively for five years, which they said was "an alarming precedent" that could result in a $220 million bill on consumers.

The tax won't likely be applied to each text message but instead as a flat surcharge that appears as another fee line on wireless bills.

(Snip)

The industry also said such a tax would put them at a competitive disadvantage with messaging services such as Facebook Messenger and WhatsApp, which would not be required to pay the tax.

On Wednesday, the FCC in a 3-1 decision agreed with the wireless industry, dealing a setback to the California texting tax proposal. The ruling was aimed at protecting consumers from text-messaging spam but may also prevent California consumers from getting hit with the proposed new tax.

(Snip)

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 1721768165
×
×
  • Create New...