Monday, May 23, 2005 / (202) 484-5221 or
STATES CONTINUE TO IMPOSE UNEQUAL TAXES AND FEESON TELECOMMUNICATIONS SERVICES
Study released today details state-by-state tax burden on telecommunications consumers and providers
WASHINGTON, D.C. – State and local taxes imposed on telecommunications services continue to more than double the average tax levied on general business, according to a new study released today by the Council On State Taxation (COST).
The study, which shows that the average state and local effective tax rate on telecommunications services is 14.17% compared to 6.12% for general business nationwide, is designed to help policymakers better understand the true weight of taxes on telecommunications providers and customers in their states and localities.
“Tax laws in the states are antiquated and take money out of the pockets of every American telecommunications consumer,” said Stephen Kranz, Tax Counsel for COST and an advocate of tax simplification. “The fact that we require telecommunications providers to file over 170 tax returns per day demonstrates that the time for unequivocal tax reform is long past.”
In 2004, the average telecommunications provider filed an average of 47,921 returns, compared to 7,501 returns for the average general business – a reflection of the factthat telecommunications firms have 6,683 more taxing jurisdictions with which to contend and that these taxing jurisdictions impose multiple taxes on telecommunications providers and customers.
While a handful of states have taken steps to simplify their telecommunications tax structures, much broader reform is needed to reduce the high level of telecommunications taxation and administrative weight imposed by state and local governments.
Data Available on State-by-State Basis
The COST study gives national perspective on the tax load that telecommunications consumers and providers must bear, and it also details the state and local telecommunications taxes and administrative costs imposed in each state. It is clear from this study that state and local tax laws impose high levels of industry-specific taxation on telecommunications services and need to be revisited by policymakers at every level.
The Council On State Taxation is a non-profit association based in Washington, D.C. COST’s objective is to preserve and promote equitable and nondiscriminatory state and local taxation.
Order info:Media may obtain a copy of the study by contacting Stephen Kranz at or at (202) 484-5221. The general public may order a copy of the study at or by calling (800) 248-3248 and referring to CCH Offer # 0-4400-301.
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