Cell Phone Taxes Increase

By Sean Stillmaker in News on Feb 19, 2011 10:00PM

Even if you stay under your minutes your cell phone bill still seems astronomical. Cell phones are taxed higher than alcohol and cigarettes, and continue their upward trend. Oddly Illinois does not take the cake. Instead the Cornhusker State of Nebraska places first taxing users 23.69 percent.

The Tax Foundation released its list of wireless consumer taxes across the country. The average consumer pays 16.26 percent in taxes, but we know Illinois is not an average state.

We place fifth taxing users 20.90 percent, a slight increase since we last reported. Illinois taxes are comprised of the state telecommunication tax, municipal tax, a wireless 911 fee, plus sales tax and a federal Universal Service Fund tax.

But some states throw in odd ball taxes onto cell phone bills. Wisconsin taxes users 1.56 percent for a police and fire protection fee. Utah taxes users .15 percent to fund its poison control center.

The USF tax currently sits at 5.05 percent, despite changing over the years. In 2009 it raked in over $7 billion. It's used to fund projects establishing communication links to low income residents in underserved areas. The money raised will now be used to create broadband internet access in those underserved areas. The fund has been called "the most abused and obsolete pork programs," which should be terminated.