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January 31, 2013Tax Foundation: Americans Pay 17.2% in Cell Phone Taxes

Tax Foundation:  State and Local Governments Impose Hefty Taxes on Cell Phone Consumers:

U.S. wireless consumers pay an average 17.18% in taxes and fees on their cell phone bill, including 11.36% in state and local charges, according to a newly released study that identifies and calculates wireless taxes and fees.

In Nebraska, the combined federal-state-local average rate is 24.49%, and in six other states (Washington, New York, Florida, Illinois, Rhode Island, and Missouri) it exceeds 20%. Twenty-six states have average state-local wireless taxes and fees in excess of 10%, and taking into account the infamous federal telephone excise tax (dating to the Spanish-American War and partly repealed in 2006), cell phone subscribers in seven states pay more than 20 percent in taxes. (See the table for a full list.)

Table: Taxes and Fees on Wireless Service, July 2012

State

State-Local Rate

Combined Federal-State-Local Rate

Rank

U.S. Simple Average 

10.15%

15.97%

 

U.S. Weighted Average

11.36%

17.18%

 

District of Columbia 

11.62%

17.44%

(17)

Nebraska    

18.67%

24.49%

1

Washington   

18.62%

24.44%

2

New York    

17.85%

23.67%

3

Florida    

16.59%

22.41%

4

Illinois    

15.94%

21.76%

5

Rhode Island   

14.68%

20.50%

6

Missouri    

14.29%

20.11%

7

Pennsylvania   

14.13%

19.95%

8

South Dakota   

13.13%

18.95%

9

Kansas    

13.11%

18.93%

10

Arizona    

12.98%

18.80%

11

Maryland    

12.77%

18.59%

12

Utah     

12.67%

18.49%

13

Texas    

12.15%

17.97%

14

Alaska    

12.09%

17.91%

15

Tennessee   

11.63%

17.45%

16

Arkansas    

11.54%

17.36%

17

Oklahoma    

11.48%

17.30%

18

New Mexico   

11.08%

16.90%

19

North Dakota   

10.96%

16.78%

20

California   

10.95%

16.77%

21

Indiana    

10.86%

16.68%

22

Colorado    

10.82%

16.64%

23

Kentucky    

10.54%

16.36%

24

South Carolina  

10.07%

15.89%

25

Minnesota   

9.53%

15.35%

26

Mississippi   

9.23%

15.05%

27

New Jersey   

8.91%

14.73%

28

Georgia    

8.78%

14.60%

29

North Carolina  

8.51%

14.33%

30

New Hampshire  

8.21%

14.03%

31

Vermont    

8.10%

13.92%

32

Ohio     

8.04%

13.86%

33

Iowa     

7.95%

13.77%

34

Massachusetts  

7.85%

13.67%

35

Wyoming    

7.79%

13.61%

36

Michigan    

7.69%

13.51%

37

Hawaii    

7.53%

13.35%

38

Alabama   

7.49%

13.31%

39

Connecticut   

7.41%

13.23%

40

Maine    

7.27%

13.09%

41

Wisconsin   

7.24%

13.06%

42

Louisiana   

7.21%

13.03%

43

Virginia    

6.60%

12.42%

44

West Virginia  

6.38%

12.20%

45

Delaware    

6.28%

12.10%

46

Montana    

6.09%

11.91%

47

Idaho    

2.28%

8.10%

48

Nevada    

2.13%

7.95%

49

Oregon    

1.85%

7.67%

50

January 31, 2013 in Tax, Think Tank Reports | Permalink

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Comments

Correction, only some Americans pay cell taxes, just like only some American pay income taxes. The rest get a free ride, courtesy of those who do pay.

The Obama Phone Government Benefit Program -- Free Cell Phone + 250 Free Minutes Every Month.Eight million people have already signed up!

(You had to know that I was going to bring this up.)

Posted by: Woody | Jan 31, 2013 10:46:47 AM

How in the world did Oregon end up at 50???? When did we ever arrive at last place for any tax. Except sales taxes that is. Now I am sure the State will move quickly to rectify the injustice of it all.

Posted by: George | Jan 31, 2013 1:46:07 PM

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