New York and Missouri officials are considering efforts to impose new taxes on cell phones, using the money to expand 911 systems. Making sure that the local 911 call center is operational is about as vital as vital government services go. So vital that I would think it would be a better use of other taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. dollars, rather than deferring upgrades until a new tax is enacted.
The stories caught my eye because New Yorkers and Missourians already face pretty high wireless taxes (3rd highest and 7th highest, respectively). This might be an issue of not wisely using existing taxes paid by wireless users, although I’d have to learn more.
More on cell phone taxes in this report, a chart from which is reproduced below. For details about taxes in each state (including Missouri’s state, local, and business taxes on cell phone bills), see here (PDF).
| State | Average State-Local Tax Rate | Combined Federal-State-Local Rate | Rank |
|---|---|---|---|
| Alabama | 7.45% | 12.50% | 38 |
| Alaska | 6.69% | 11.74% | 42 |
| Arizona | 11.97% | 17.02% | 14 |
| Arkansas | 11.07% | 16.12% | 16 |
| California | 10.67% | 15.72% | 19 |
| Colorado | 10.40% | 15.45% | 22 |
| Connecticut | 6.96% | 12.01% | 41 |
| Delaware | 6.25% | 11.30% | 45 |
| Florida | 16.57% | 21.62% | 4 |
| Georgia | 8.57% | 13.62% | 29 |
| Hawaii | 7.75% | 12.80% | 37 |
| Idaho | 2.20% | 7.25% | 48 |
| Illinois | 15.85% | 20.90% | 5 |
| Indiana | 9.84% | 14.89% | 23 |
| Iowa | 7.91% | 12.96% | 35 |
| Kansas | 13.34% | 18.39% | 9 |
| Kentucky | 10.42% | 15.47% | 21 |
| Louisiana | 6.28% | 11.33% | 44 |
| Maine | 7.16% | 12.21% | 40 |
| Maryland | 12.23% | 17.28% | 11 |
| Massachusetts | 7.81% | 12.86% | 36 |
| Michigan | 7.27% | 12.32% | 39 |
| Minnesota | 9.38% | 14.43% | 26 |
| Mississippi | 9.08% | 14.13% | 27 |
| Missouri | 14.23% | 19.28% | 7 |
| Montana | 6.03% | 11.08% | 47 |
| Nebraska | 18.64% | 23.69% | 1 |
| Nevada | 2.08% | 7.13% | 49 |
| New Hampshire | 8.18% | 13.23% | 32 |
| New Jersey | 8.87% | 13.92% | 28 |
| New Mexico | 10.52% | 15.57% | 20 |
| New York | 17.78% | 22.83% | 3 |
| North Carolina | 9.43% | 14.48% | 25 |
| North Dakota | 10.68% | 15.73% | 18 |
| Ohio | 7.95% | 13.00% | 33 |
| Oklahoma | 10.74% | 15.79% | 17 |
| Oregon | 1.81% | 6.86% | 50 |
| Pennsylvania | 14.08% | 19.13% | 8 |
| Rhode Island | 14.62% | 19.67% | 6 |
| South Carolina | 9.52% | 14.57% | 24 |
| South Dakota | 12.02% | 17.07% | 13 |
| Tennessee | 11.58% | 16.63% | 15 |
| Texas | 12.43% | 17.48% | 10 |
| Utah | 12.16% | 17.21% | 12 |
| Vermont | 8.50% | 13.55% | 30 |
| Virginia | 6.56% | 11.61% | 43 |
| Washington | 17.95% | 23.00% | 2 |
| West Virginia | 6.23% | 11.28% | 46 |
| Wisconsin | 8.34% | 13.39% | 31 |
| Wyoming | 7.94% | 12.99% | 34 |
| District of Columbia | 11.58% | 16.63% | – |