Illinois mobile phone customers are heavily taxed on their cell phone accounts, and providers are asking lawmakers for relief.
Scott Mackey, a Vermont-based consultant for the wireless communication industry, says there have been tax reforms. In Illinois, taxes and government-imposed fees amount to 21 percent of the bill, ranking the state 5th in the nation. Nebraska is No. 1. In some cases, taxes on telephone service- wired and wireless - have grown because cities scrapped vehicle sticker taxes, which are hard to collect, and replaced the revenue with utility and phone taxes, which are easier to collect. The switch didn't necessarily result in a tax increase on the people, but it placed a greater burden of collection on phone companies. Mackey says the tax structure should be re-evaluated, and perhaps the ban on taxation of internet service should be lifted so the communication tax burden doesn't fall entirely on phones.
