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Wonderling Signals End to Cell Phone Tax
HARRISBURG -- Senator
Rob Wonderling (R-24) reintroduced legislation this week to repeal the cell
phone tax imposed on Pennsylvania’s wireless telephone customers last year.
Wonderling explained that in
January of 2004 the state levied a 5% gross receipts tax on cell phone bills in
addition to the 6% sales tax that was already charged. He sponsored Senate Bill
691 this session to eliminate the gross receipts tax on mobile
telecommunications services in the state.
“Nearly 20 percent of every
cell phone bill is for taxes,” Wonderling said. “Pennsylvania holds the
distinction of having one of the highest cell phone tax rates in the country.”
As Chairman of the Senate
Communications and Technology Committee, Wonderling is concerned that doubling
the tax on wireless service is not only going to make it more difficult for many
people to afford cell phones, but is discouraging the wireless industry from
expanding in our state and investing in new technology.
“Repealing the gross receipts
tax on cell phones is critical to support technological progress, promote worker
productivity and create jobs in the telecommunications industry,” Wonderling
said. “The industry is developing innovative technologies that will allow for
seamless wireless internet access from personal computers and hand-held devices
that will benefit health care workers, transportation companies, government
agencies and many other businesses.”
With about 6 million users,
cell phone customers account for a significant portion of Pennsylvania’s
population. In addition, the wireless industry employed more than 6,000
Pennsylvanians in 2003, with a payroll of nearly $300 million, according to the
State Bureau of Labor Statistics.
“This gross receipts tax
hurts everyone who uses cell phones,” Wonderling said. “If we want to encourage
economic development and remain competitive, we need to repeal the tax on
wireless service.”
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