April 25, 2005

The mobile-phone industry has urged a key state lawmaker in Oregon to oppose a bill that would impose up to a 5 percent tax on wireless services and other telecom offerings.

"Utility-type tax proposals like the one being considered
in Oregon only serve to punish consumers who have opted to become wireless subscribers because of lower prices and innovative service offerings, said CTIA President Steve Largent in an April 20 letter to Sen. Ryan Deckert (D), chairman of the Senate Revenue Committee.

"If enacted, this bill would require the average Oregon wireless consumer to pay about $30 per year in new taxes. While this may amount to a windfall for Oregon cities, it is certainly a sizable tax increase for your constituents."

The bill would allow telecom carriers to keep 3.25 percent of taxes collected.

The cell-phone industry is fighting local and state taxes in other parts of the country as well.

Source: RCR News