Good News on Telephone Taxes

This news in today: Gov. Timothy M. Kaine has signed legislation that updates and simplifies the state’s complex and outdated system of communications taxes. Virginia’s citizens currently pay the nation’s highest rate of combined state and local taxes for their telephone service — averaging 30 percent, more than twice the national average. The new law eliminates four existing communications taxes and replaces them with a low, five-percent rate across the board for all communications services.

Said Verizon President Robert W. Woltz Jr.: “This simplified communications tax system will benefit citizens by overhauling one of the most regressive taxes in Virginia, replacing it with a fair, equitable system that doesn’t discriminate among the various methods competitors use to deliver communications services.”

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3 responses to “Good News on Telephone Taxes”

  1. While I agree that there are beneficial changes to the tax code implemented in this bill, the bill is not truly equitable as it introduces new taxes on satellite radio services while not adding taxes on any similar services (i.e. internet radio, music downloads, terrestrial radio broadcasts, etc). It is a small point, but frankly when the President of Verizon is so excited about a bill I tend to get nervous.

  2. Tugboat Phil Avatar
    Tugboat Phil

    Like Craig, I will now pay tax on satellite TV. We live where cable is not an option and the only alternative is 2 channels from Virginia and 2 channels from NC. Tuning the antenna is required to switch from one to another. Thanks, Guvna!!

  3. Chris Brancato Avatar
    Chris Brancato

    My family essentially removed landline communication from our home. With each of us having a cell phone, it becomes unecessary. One less tax to pay.

    Won’t work for everyone, but works for us.

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