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Senate Finance Committee Votes to Repeal Cell Phone Tax
HARRISBURG -- Pennsylvania
Senator Rob Wonderling (R-24) announced today that the Senate Finance Committee
voted to approve Senate Bill 691, a measure to phase out the double tax on cell
phones and interstate land lines over a five-year period. Senator Wondering
originally introduced the bill on June 9, 2004.
"Today, we are taking steps
to right a wrong by eliminating an unnecessary and burdensome tax that has not
only made it more difficult for people to afford to use a cell phone, but has
discouraged the wireless industry from further investing in the state," said
Wonderling.
The gross receipts tax on
cell phones imposed an additional 5 percent fee on cell phone bills beginning
January 1, 2004. The 5 percent gross receipts tax was in addition to a 6
percent sales tax on monthly calls making Pennsylvania one of the highest cell
phone tax rates in the nation.
"Thanks to the efforts of
Senator Jane Earll and Representative Mario Scavello and their excellent staffs,
we were able to move this important legislation forward," said Wonderling.
Under the measure, the 5 year
phase-out goes into effect beginning in 2007 reducing 1 percent each year with
the entire tax being repealed by 2011.
According to the Wireless
Association, Pennsylvania has over 7 million cell phone users.
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