California's proposed text messaging tax: 5 things to know

FCC ruling could block controversial tax

FCC ruling could block controversial tax

WEBVTT ULSTAN, AND CONSUMERS ARE VERY UPSET ABOUT THIS PLAN. CALIFORNIANS ALREADY PAY SOME OF THE HIGHEST TAXES IN THE NATION, AND NOW THE PROSPECT OF PAYING EVEN MORE IS PRODUCING SOME BIG PUSHBACK. FOR MANY OF US, TEXTING IS A WAY OF LIFE. BUT WOULD YOU BE WILLING TO PAY A TAX FOR THOSE TEXTS? >> SOME PEOPLE WOULD BE OKAY WITH IT, AND SOME PEOPLE MIGHT NOT LIKE IT AS WELL. MIKE: ELIHU HERNANDEZ MANAGES THIS CRICKET WIRELESS STORE IN SACRAMENTO, WHERE CUSTOMER CASHMERE WORMLEY IS CERTAIN SHE DOESN’T WANT TO SEE A TEXTING TAX. >> A LOT OF PEOPLE WOULD BE UNHAPPY BECAUSE A LOT OF PEOPLE TEXT ON A DAILY BASIS. MIKE: LAST YEAR AMERICANS SENT MORE THAN 1.7 TRILLION TEXT MESSAGES. ACCORDING TO THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION. THE PLAN TO PUT A TAX ON TEXT MESSAGES WOULD COST ABOUT 70 CENTS FOR EVERY $10 OF TEXT REVENUES, ACCORDING TO THE PUBLIC UTILITIES COMMISSION, THAT WANTS TO USE THE MONEY TO HELP REDUCE PHONE RATES FOR LOW-INCOME CONSUMERS. BUT THE FCC CALLS TEXTING AN IMPORTANT INFORMATION SERVIC AND WANTS TO SCUTTLE THE TAX BUT NO MATTER WHO WINS THAT FIGHT, CALIFORNIANS DO PAY MORE FOR CONSUMER PRODUCTS LIKE THIS, HIGHER FEES TO RECYCLE BATTERIES, ALONG WITH USED TIRES AND ELECTRONIC WASTE. AND AT THE GAS PUMP WE PAY 12 CENTS A GALLON MORE, TO HELP WITH ROAD REPAIRS. BUT THAT’S NOT AL >> CALIFORNIA HAS PERFECTED ART FORM, IMPOSING ALL KINDS OF FEES, WHETHER IT’S A MATTRESS TAX OR A LUMBER TAX, ALL KINDS OF TAXES AND FEES, ON TOP OF T VERY HEAVIER BRICK -- THE VERY HEAVY REGULATION THAT WE HAVE. MIKE: THE HIGH COST OF LIVING IS ENOUGH TO MAKE SOME CALIFORNIANS RETHINK THEIR FUTURE HERE. >> IT’S JUST SUPER UNFORTUNATE. AND SO AS A CALIFORNIAN, I WOULD POTENTIALLY CONSIDER MOVING OUT. MIKE: REALLY, TO A LOWER-TAX STATE? >> YES. MIKE: WHERE WOULD YOU RATHER BE? >> I HAVE NO IDEA. I AM BORN AND RAISED IN CALIFORNIA, BUT MAYBE WASHINGTON OR EVEN OREGON. MIKE: WHILE CALIFORNIANS COMPLAIN ABOUT HIGHER TAXES, IN RECENT YEARS THEY HAVE SUPPORTED THEM AT THE BALLOT. >> CLEARLY THIS YEAR, THEY WER CONVINCED THE TAX ON GASOLINE AND DIESEL AND ON CAR RE

California's proposed text messaging tax: 5 things to know

FCC ruling could block controversial tax

California regulators are considering a plan to charge a fee for text messaging on mobile phones to help support programs that make phone services more accessible.News of the tax proposal has caused an uproar. Here are five things to know about the proposed text tax: 1) Who wants to tax text messages and why?The California Public Utilities Commission made the proposal. The CPUC said the surcharges are “used to support public programs like 911 service; the CPUC’s LifeLine program, which subsidizes phone rates for low income consumers; and the Deaf and Disabled Telecommunications Program, which provides special equipment for the deaf and hard-of hearing.” 2) How much would the tax be?The CPUC said the tax would amount to about 70 cents for every $10 of text revenues.3) Who is fighting the tax?Many consumers are very upset about the proposal to tax text messages.“It would be a bummer honestly,” said Cashmere Wormley, a customer at a Cricket Wireless store in Sacramento. “I would probably make more phone calls."The Cellular Telecommunications Industry Association, or CTIA, which represents the wireless industry, is also opposed. In a statement to KCRA 3, Jamie Hastings, CTIA’s senior vice president of external affairs, wrote:"We hope that the CPUC recognizes that taxing text messages is bad for consumers. Consumers exchanged 1.77 trillion messages in 2017, making text messages one of the most common and effective means of communication for Americans. Taxing this service would burden those who rely on and use this service each and every day.”4) Is the text tax a sure thing?No. A new ruling by the Federal Communications Commission could scuttle the proposed texting tax. Earlier this week, the FCC classified texting as “information services” rather than "telecommunications services." So, the future of the text messaging tax is unclear. 5) Are Californians overtaxed?The Golden State already has $14.5 billion in a rainy-day fund, and California is also projecting a $14.8 billion budget surplus for next year. But, the state has a very high cost of living. “We have the highest income tax rate in America and the highest sales tax rate in America,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association. Californians also pay higher than average fees to recycle batteries, used tires and electronic waste. At the gas pump, Californians pay 12 cents a gallon more; tax revenue that goes into road repairs.

SACRAMENTO, Calif. (KCRA) —

California regulators are considering a plan to charge a fee for text messaging on mobile phones to help support programs that make phone services more accessible.

News of the tax proposal has caused an uproar.

Here are five things to know about the proposed text tax:

1) Who wants to tax text messages and why?

The California Public Utilities Commission made the proposal.

The CPUC said the surcharges are “used to support public programs like 911 service; the CPUC’s LifeLine program, which subsidizes phone rates for low income consumers; and the Deaf and Disabled Telecommunications Program, which provides special equipment for the deaf and hard-of hearing.”

2) How much would the tax be?

The CPUC said the tax would amount to about 70 cents for every $10 of text revenues.

3) Who is fighting the tax?

Many consumers are very upset about the proposal to tax text messages.

“It would be a bummer honestly,” said Cashmere Wormley, a customer at a Cricket Wireless store in Sacramento. “I would probably make more phone calls."

The Cellular Telecommunications Industry Association, or CTIA, which represents the wireless industry, is also opposed.

In a statement to KCRA 3, Jamie Hastings, CTIA’s senior vice president of external affairs, wrote:

"We hope that the CPUC recognizes that taxing text messages is bad for consumers. Consumers exchanged 1.77 trillion messages in 2017, making text messages one of the most common and effective means of communication for Americans. Taxing this service would burden those who rely on and use this service each and every day.”

4) Is the text tax a sure thing?

No.

A new ruling by the Federal Communications Commission could scuttle the proposed texting tax.

Earlier this week, the FCC classified texting as “information services” rather than "telecommunications services."

So, the future of the text messaging tax is unclear.

5) Are Californians overtaxed?

The Golden State already has $14.5 billion in a rainy-day fund, and California is also projecting a $14.8 billion budget surplus for next year. But, the state has a very high cost of living.

“We have the highest income tax rate in America and the highest sales tax rate in America,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association.

Californians also pay higher than average fees to recycle batteries, used tires and electronic waste. At the gas pump, Californians pay 12 cents a gallon more; tax revenue that goes into road repairs.

California's proposed text messaging tax: 5 things to know

FCC ruling could block controversial tax

GET LOCAL BREAKING NEWS ALERTS

1) Who wants to tax text messages and why?

2) How much would the tax be?

3) Who is fighting the tax?

4) Is the text tax a sure thing?

5) Are Californians overtaxed?

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