The Prince George’s County Council gave final approval to a plan that will substantially change how taxes are collected on phone lines, including how much money is collected.
On a 7-3 vote, the council approved the elimination of the 9% sales tax on phone lines to a $3.50 excise tax. On the one hand, it’s simpler; but opponents of the measure argued it’s also going to cost taxpayers more.
There was a time the sales tax generated around $50 million in revenue for the county, but last year, that number fell to about $13.5 million. The $3.50 flat fee is expected to produce more than $50 million again.
“This change would result in a drastic 269% tax increase, raising the county’s tax telecommunications burden from $14 million to nearly $52 million annually,” said Addison Pruitt, who lobbied against the bill on behalf of the trade group representing the wireless industry on Tuesday.
“The main concern with this bill is that the proposed flat fee would impose the same tax burden on all consumers, regardless of income level or the type of wireless plan they currently have,” Pruitt added.
Click here to read the rest of the article written by John Domen over at WTOP
