April 18, 2007
New bi-partisan poll finds 75% of Texas Voters support repealing the outdated State Telecommunications Infrastructure Fund (TIF) fee
New bi-partisan poll finds Texans Favor Elimination of Unfair TIF Fee
Austin, TX – The results of a new statewide survey released today by consumer advocacy group MyWireless.org shows that 75% of Texas voters support eliminating the Telecommunications Infrastructure Fund (TIF) fee. Findings show that a repeal of the outdated fee has broad support from more than two-thirds of both Texas Democrats and Republicans.
This strong bi-partisan support among Texas voters for the elimination of the TIF fee follows the recent unanimous vote in the Texas State House of Representatives to repeal the fee by 143-0. Forty-seven Democratic and Republican House members co-sponsored HB 735, the legislation authored by Rep. Joe Straus of San Antonio. HB 735, and its companion bill, SB 294, by Sen. Tommy Williams of The Woodlands, are now pending in the Senate Finance Committee.
In 1995, the Texas Legislature established the TIF fee as a “temporary” 1.25% surcharge on all landline and wireless phone services, to pay for the delivery of broadband Internet technology to schools, libraries, hospitals and other public institutions. Now nearly 12 years later, the TIF has been fully funded by this surcharge and has served its intended purpose admirably. The TIF fee reached its statutory revenue cap of $1.5 billion in 2003, when the Texas Legislature voted to extend the fee, but to instead divert all revenues into the state’s general fund. Today, the 1.25% TIF fee on communication services continues, costing Texas consumers every month.
“Texas has the fifth-highest wireless tax rate in the nation, at over 16% in state and local monthly taxes and fees,” said Kimberly Kuo, Executive Director of MyWireless.org. “There is no better time than the present to lighten that heavy burden, especially when the state has a healthy budget surplus. 17 million wireless Texans are paying excessive and outdated taxes just for communicating. The repeal of this unfair 1.25% fee would save Texas consumers about $200 million in the first year alone. Wireless and landline telephone services should be affordable and accessible for all Texans,” Kuo said.
“The Texas State House unanimously demonstrated its commitment to fiscal fairness and accountability by voting to eliminate the outdated TIF fee,” said Kuo. “Governor Perry has indicated support for the repeal of the TIF fee, and now Lieutenant Governor Dewhurst and Texas Senators have a golden opportunity to deliver meaningful tax relief to all Texas telecommunications consumers by eliminating the TIF fee.”
The statewide poll was conducted by Baselice & Associates, Inc., of Austin, and surveyed 1,001 registered voters in Texas via phone between April 1-4, 2007.
MyWireless.org has joined together in a diverse coalition of Texas businesses and consumers to support legislation to repeal the 1.25% TIF fee in the state. To learn more about MyWireless.org or to join the coalition’s efforts to repeal Texas’ Telecommunications Infrastructure Fund fee, please visit www.MyWireless.org/issues/texas.