WASHINGTON-Sens. Sam Brownback (R-Kan.) and Byron Dorgan (N.D.), backed by industry and cities, last week introduced legislation to simplify taxation of wireless carriers by local and state authorities.
Instead of having wireless calls taxed by multiple jurisdictions, the Mobile Telecommunications Sourcing Act would assign all state and local taxes to a customer’s place of primary use. That could be a residence or business address.
The current system is said to be an accounting nightmare for carriers and a drain on local governments.
“State and local taxing authorities would be relieved of burdensome audit and oversight responsibilities without losing the authority to tax wireless calls. And consumers would enjoy lower prices and fewer billing headaches,” said Brownback, a member-like Dorgan-of the Senate Commerce Committee.
Aides to the lawmakers said they will push for passage of the bill before Congress adjourns for the year on Nov. 19.
The legislation has the support of the National Governor’s Association, the National League of Cities and the Cellular Telecommunications Industry Association.
Joining Brownback and Dorgan at last Wednesday’s press briefing were Utah Gov. Mike Leavitt, chairman of the National Governors’ Association; Philadelphia Councilman Brian O’Neill, immediate past president of National League of Cities; and CTIA President Thomas Wheeler.
Lawmakers went to great pains to emphasize that the bill does not pre-empt the abilities of cities and states to tax wireless service providers.
