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Challenge to KY wireless tax moving forward

Discussion in 'Southern US Wireless Forum' started by Fire14, Jan 18, 2007.

  1. Fire14

    Fire14 Easy,Cheap & Sleazy
    Senior Member

    Sep 27, 2002
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    Union County NJ
    My Phone:
    Wireless Provider(s):
    It sounds like the carriers biggest concern, is if this goes thru, they can't charge the customers the taxes they have to pay. I never liked the "Gross Income Tax fee" that carriers can collect from customers. How is that fair, the customer pays taxes the companies are suppose to pay the Goverment, could you imagine all companies being able to do this?

    Industry challenge to Kentucky wireless tax can move forward

    A stay has been lifted in the mobile phone industry’s challenge to a Kentucky wireless tax. A federal court has blocked the tax from being enforced.

    Industry’s suit and the tax itself have been on hold since December 2005 when the U.S. District Court in Frankfort, Ky., granted industry’s motion for preliminary injunctive relief and suspended legal proceedings pending the outcome of a truth-in-billing case before the 11th U.S. Circuit Court of Appeals. The 11th Circuit last July overturned a Federal Communications Commission’s ruling that pre-empted states from regulating line items on consumers’ bills. The court later rejected FCC and industry requests for the case to be reheard.

    With the 11th Circuit case over—though industry next month will ask the Supreme Court to review the appellate decision—the suit in Kentucky can now proceed. At the same time, the injunction preventing the tax from kicking in will remain intact. The tax was to have become effective Jan. 1, 2006.

    The nation’s major mobile phone operators argue that the 2005 Kentucky law banning operators from passing onto subscribers a 1.3-percent gross receipts wireless tax represents illegal wireless rate regulation. Congress in 1993 said states could not regulate wireless rates.

    The wireless industry hopes to get help from Congress this year on the tax front. Sens. John McCain (R-Ariz.) and Jim DeMint (R-S.C.) introduced legislation in Congress that would mandate a three-year moratorium on new discriminatory wireless taxes by states.

  2. UFO

    UFO Bronze Senior Member
    Senior Member

    Jun 27, 2006
    Likes Received:
    Hampton Roads, VA
    My Phone:
    Palm Centro
    Wireless Provider(s):
    Sprint and alltel
    I do think all companies do it one way or another. Gas companies raise the sale price of gas. Wal-Mart marks up some of their prices. It always gets passed along to the consumer. But I do agree that you might be crossing that fine line when you just pass along a tax fee like that to the consumer when it's a tax on the company.

    Wasn't SunCom the provider that use to have the 'Truth in Wireless' advertising campaign. Where if your plan was $49.99 or whatever, your bill said $49.99. That was one good idea they had. I never signed up for SunCom so I'm not sure if they actually followed through with that but I liked what I heard about it.

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