The Maryland General Assembly is considering legislation, the ‘Telecommunications Tax Reform Commission Moratorium’ (HB 563/SB 567), that would temporarily put a stop to any new taxes and fees on consumers’ landline, wireless and cable bills. The legislation would also create a task force of state and local government and communications companies to review the high rates of taxation on telecommunications services. The legislation would also create a task force of state and local government and others to review the high rates of taxation on telecommunications services. The group would then make recommendations to the legislature for ways to fix the broken tax systems which Marylanders now face.

To put the legislation in perspective:

• On average, Maryland consumers pay more than 17% in monthly federal, state and local wireless taxes and fees, the 11^th highest wireless tax rate in the nation.
• In many jurisdictions, consumers pay regressive and discriminatory tax rates that are double that of the sales tax on general goods and services. For example, in Montgomery County, landline and wireless customers pay $3.50 per line in local taxes and FIOS and cable customers pay 8% for Franchise Fees and PEG fees. The City of Baltimore is even worse with $4 per line for landline and wireless service. These local taxes are among the highest in the Nation.
• Under the current system, consumers could be paying different tax rates for the same service, depending on which company is providing that service.

Tell Annapolis to Freeze Wireless Taxes

Local governments are strongly opposing any effort to put even a temporary stop to their ability to impose even higher taxes on wireless and other telecommunications consumers. The proposed moratorium is simply a “time-out” and will not impact the tax revenues local governments are currently collecting. The goal of the legislation is to keep these excessive taxes from getting higher until a new, fairer system can be put in place.

We really need your help! If you live in Maryland, we encourage you to speak up now and let the Senate Budget and Taxation Committee and the House Ways and Means Committee members know that you support this time-out on telecom taxes as they work to make the system fairer to you.