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1 Scott Mackey, et al., Wireless Taxes and Fees in 2017 1 (2017)

handle is hein.taxfoundation/wiretx0001 and id is 1 raw text is: 








Wireless Taxes and Fees in 2017


FISCAL
FACT
No. 567
Nov. 2017


Scott Mackey
Managing Partner,
Leonine Public Affairs LLP


Joseph  Bishop-Henchman Scott Drenkard
Executive Vice President      Director of State Projects


The Tax Foundation is the nation's
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
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@2017 Tax Foundation
Distributed under
Creative Commons CC-BY NC 4.0
Editor, Rachel Shuster
Designer, Dan Carvajal
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Key Findings

   *  A typical American household  with four wireless phones paying $100 per
      month  for wireless voice service can expect to pay about $221 per year in
      wireless taxes, fees, and surcharges - down from $223 in in 2016.

   *  Nationwide, taxes make  up 18.5 percent of the average U.S. customer's
      wireless bill. Washington has the highest wireless tax rates in the country at
      25.58 percent, followed closely by Nebraska at 25.10 percent, New York at
      24.64 percent, Illinois at 24.59 percent, and Pennsylvania at 22.32 percent.

   *  Since 2008, average wireless monthly bills have dropped from just under $50
      per month to $41.50  per month - a 17 percent reduction - while wireless
      taxes have increased from 15.1 percent to 18.5 percent - a 22 percent
      increase.

   *  Many  states impose a much larger tax on wireless service than the sales
      tax imposed on the purchase of other goods and services. States with large
      disparities include Alaska (8.8 times), Nebraska (2.7 times), Pennsylvania (2.5
      times), Maryland (2.2 times), South Dakota (2.2 times), Florida (2.2 times),
      New  York (2.2 times), Rhode Island (2.2 times), and Illinois (2.1 times).
   *  Connecticut, Louisiana, Oklahoma, Utah, and West  Virginia increased 911
      fees in 2017. States are under pressure to fund upgrades to next generation
      911 (NG911)  programs.

   *  In 2017, state Universal Service Fund (USF) rates increased in Alaska, Indiana,
      Kansas, New  Mexico, Utah, and Wisconsin. South  Carolina expanded
      the scope of its USF surcharge to include wireless service. California and
      Wyoming   lowered the rates of their state USF surcharges.
   *  At the end of 2016, over 66 percent of all poor adults had only wireless
      service, and 51 percent of all adults were wireless only. Excessive taxes and
      fees, especially the regressive per line taxes like those imposed in Chicago
      and Baltimore, impose a disproportionate burden on low-income  consumers.
      Chicago's per-line tax increases to $5 per month per line as of January 1,
      2018.


202.464.6200
taxfoundation.org

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