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Monday, December 22, 2014

Up to 35% of your cell phone bill may be taxes and fees

Not only will you see 9-1-1 fees, you’ll also find franchise taxes, utility sales taxes and mysteriously named surcharges like the MCTD, TRS or PUC.

On average, customers pay 17.1% of their bill in federal, state and local taxes and fees. But in some states, the average charges can run as high as 24% of the bill, according to a new report from the Tax Foundation.

Some city residents, meanwhile, end up paying even more: Up to 35%, thanks to per-line fees and other charges.

All in, wireless customers end up paying tax and fee rates that are about twice as much as the average sales tax rate on other goods and services, the Tax Foundation found.

Here’s how it breaks down: First, there’s the 5.82% federal charge, which is part excise tax and part Universal Service Fund charge.

After that, how much more you pay depends on where you live.

The highest combined state and local rates are found in Washington state (18.6%), Nebraska (18.5%), New York (17.7%), Florida (16.6%) and Illinois (15.8%).

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4 comments:

  1. Funny, that was one of the main reasons I changed from land line to cell. Didn't take long for the scumbag taxing authorities to catch up!

    ReplyDelete
  2. 911 should be a service we should be getting with the taxes we already pay. Geesh.

    ReplyDelete
  3. Anonymous said...
    Funny, that was one of the main reasons I changed from land line to cell. Didn't take long for the scumbag taxing authorities to catch up!

    December 22, 2014 at 1:02 PM

    That's what happens when you idiots keep voting for Democrats.

    ReplyDelete
  4. My bill for 2 lines is $50 a month!

    ReplyDelete

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