Thursday, June 01, 2006

Talk Ain't Cheap! Can You Hear Us Now?

Here in Illinois, the average monthly cell phone tax is above the national average, close to 19 percent every month. One recent survey and study says Illinois ranks No. 10 in the nation in cell phone taxes. Nebraska is No. 1 at almost 25 percent. So, the average monthly cell phone tax per month in Illinois is at least 10 percent above the average sales tax! Who ever said, "talk is cheap"? Of course, in addition to taxes, you are also charged about $1 to maintain cell phone 911 service.

According to Illinois and Chicago departments of revenue, it is estimated that in 2005 Illinois collected $330 million in cell phone taxes. The City of Chicago collected $68 million.

Local governments tax cell phone bills just like they have always taxed home (land-line) phones, however,there is a difference - wireless isn't a "regulated utility."


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