The nonprofit Tax Foundation found Illinois residents pay the highest taxes on their cell phone plans than any other state in the country. Adam Hoffer, director of Excise Tax Policy at the Tax Foundation, said wireless service prices have dropped because of increased competition but this price reduction for customers hasn’t been felt because taxes on such services keep increasing.
“Cell phone bills have come down in price. That has really helped a lot of people and it has facilitated greater communication amongst families,” said Hoffer. “That’s awesome, that’s a huge win and we should celebrate it.”
Hoffer said every state in the country taxes wireless voice services. They do not tax data or internet usage.
“The taxes themselves have continued to climb relatively gradually,” said Hoffer. “But, because the tax amount has been growing, and the wireless fees have been falling, the percentage of your wireless bill that has taxes has been growing and growing overtime.”
Hoffer said over a third of Illinois residents’ wireless bills each month are just taxes. A typical American household with four phones on a “family” plan paying $100 per month for taxable wireless services would pay nearly $294 per year in taxes, fees and government surcharges.
**Story Courtesy of Illinois Radio Network**
