@jbtaylor on tech

I'm a spokesman for Sprint. This personal site is where I share news stories and my views about our company, our phones and other devices. I also write a bit about tech policy, the wireless industry and life in Washington, D.C.

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Searching taxes

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Sprint on New York Tax Dispute: Our Customers Pay Every Penny Owed

Today, the New York Attorney General filed a lawsuit against Sprint alleging that the company failed to collect and remit enough taxes from its New York customers. 

On average, New Yorkers pay about 23 percent of their wireless bill in taxes and fees -- this tax rate is about 40 percent higher than the average tax rate in the U.S. on wireless services. 

Yet it's not enough for New York. They believe Sprint's customers should pay even more in taxes, alleging that these consumers should pay tax on services Sprint doesn't not believe are taxable under New York law.

In response to the claims made by the Attorney General, Sprint issued the following statement to media:

"This complaint is without merit and Sprint categorically denies the complaint's allegations. We have collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law. With this lawsuit, the Attorney General's office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. We intend to stand up for New York consumers' rights and fight this suit."

Wireless Taxes Take a Bigger Bite than Ever Before

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via flickr.com

CTIA, the wireless association, has released a study which breaks down wireless taxes by state. The study ranks the states by the combined Federal, state and local taxes wireless customers pay.

The results are stunning.

Out of the 50 states and the District of Columbia, residents of only 3 states pay less than 10 percent of their wireless bill in taxes. Put differently, most all of us pay at least 10 percent of our wireless bills, not for wireless service, but for taxes.

Residents of Nebraska, Washington, New York, Florida and Illinois have it the worst. They pay more than a fifth of their wireless bill in taxes.

Let me be clear: I understand that governments need to collect taxes in order to provide services. I'm certainly not against taxes, but I think they should be distributed fairly.

By any measure, wireless service is taxed a relatively high level compared to other services. My personal view is that the politicians are hoping you won't notice.

And the truth is, you probably won't. If your state senator voted to raised taxes on your wireless service would you know?

Or more to the point, do you even know how much of your wireless service bill goes to paying taxes?