Tax Law Updates | New Proposed Legislation
December 30, 2010
House Panel Approves Cell Tax Fairness Act
Cell Tax Fairness Act of 2009
H.R. 1521, 9/15/2010
The House of Representatives Judiciary Committee’s Subcommittee on Commercial and Administrative Law has voted by unanimous consent to endorse Rep. Zoe Lofgren’s Cell Tax Fairness Act to the full Judiciary Committee.
The bipartisan bill would provide for a 5-year moratorium on any new discriminatory wireless tax or fee. A typical consumer already pays 15.2% in federal, state, and local taxes on their cell phone bill as compared to 7.1% for most other taxable goods and services.
The bill defines “new discriminatory tax” as a tax imposed on mobile services, providers, or property that is not generally imposed on other types of services or property, or that is generally imposed at a lower rate.
Further, the legislation is meant to cease tax increases for the next five years. It does not apply to federal taxes, fees associated with 911 emergency services, nor fees for the Universal Service Fund. The bill has the support of the wireless industry, which hopes that the House of Representatives will pass the legislation before going on recess.
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