Next month, the California Public Utilities Commission will vote on a proposed tax on text messages. This tax would be part of the telecommunications tax that already exists for phone calls, and some regulators in the state say the same tax should apply to texts. This is because texting may be considered a form of telecommunications due to the nature of using a phone to do so.
The tax is meant to help raise funding for programs to help those who cannot afford basic communication devices, through what are known as Public Purpose Programs. The tax that is already in place is used by these programs to subsidize them, which would help low income earners afford such devices. Because more people in the state are texting rather than calling, these Public Purpose Programs are seeing a dip in funds by almost a third. The budget for subsidizing such programs has risen in recent times as well, so lawmakers in the state are considering these kinds of options to revitalize the money flow to the programs.
Unfortunately for residents of the state, this means a surcharge on their devices could be added as a flat fee. It is unclear at this time how this proposal will go over with people living in California, but most predict an unwelcome reception. The Public Utilities Commission hopes that this tax will raise around $44.5 million annually. Cell phone companies are already gearing up to battle the proposal, some stating that texting is more in line with an exchange of information similar to emailing, and should not be subject to the tax.
