We have good news and bad news for you today…
The good news is that talking on your wireless phone costs 80% less than it did 10 years ago. The bad news is that taxes on wireless services have soared to over 20% of a total wireless bill in some states. This tax rate is up to four times higher than for goods and services - even for alcohol and cigarettes!
Just how high are wireless taxes, fees and surcharges? We did a little research and came up with a top 10 states that carry the highest state, local and federal wireless tax burden for its consumers.
Having a wireless phone in these states can be certainly be hazardous to your wealth…
Source: Scott Mackey (Partner: Kimbell, Sherman, Ellis)
* Note: As of October 2006, the FCC adjusted the safe harbor assumption from 28.5% to 37.1%. On a quarterly basis, the FCC adopts adjusted contribution factors. Thus, the above reflects the effective federal USF contribution rate as of July 1, 2007.