Quote:
Originally Posted by DRNewcomb
Looks like half the tax is city & state. I wonder what it would be for someone with an address in a low-tax state like Nevada.
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A little additional information. In the US, wireless consumers pay not only Federal taxes and fees, but also State and local taxes. These taxes are normally based on the location where the customer tells the wireless company that he lives, billing address, etc. rather than the location where the number is based or where it is most frequently used. Many State and local governments look on wireless phones as a luxury and a "cash cow" to be heavily taxed. Some of the worst locations for taxing wireless are Nebraska and Bossman's home State of Illinois, where the combined taxes and fees can run over 20%. By contrast the total taxes and fees in Nevada or Oregon are about 7%. Since most plans are now nation-wide, many people in high-tax States are now giving other addresses when signing up for service.
Here's a report on the subject.