Legislators Oppose New 911 Phone Tax Hike by State Agency

Business Wire, July 15, 2008

AUSTIN, Texas -- Two Texas state legislators today called on the state agency that manages the 911 system statewide to discontinue collection of a monthly tax it has imposed on prepaid cell phones used by hundreds of thousands of low-income, elderly and rural consumers.

Last month the Commission on State Emergency Communications voted in a controversial and heavily criticized move to apply a monthly tax of $.50 to every purchase of a prepaid cell phone or prepaid minutes.

The Texas Consumer Association and the Gray Panthers of Texas registered their strong objections to the Commission's action, stating that many older Texans and low-income residents rely upon the affordable prepaid phones to stay connected to family members and to seek and maintain employment. The groups are concerned that any increase in cost, in these difficult economic times, may adversely affect these vulnerable Texans.

State Rep. Eddie Rodriguez of Austin and State Rep. Rafael Anchia of Dallas have joined the grassroots groups in opposition to the new tax.

"I strongly urge the CSEC, at its July Board meeting, to consider repealing this fee as it applies to prepaid phone use until the Legislature can consider a more equitable solution to the problem," wrote Rep. Rodriguez. He further noted in his letter that his "district includes a significant number of low income residents who face daily challenges such as paying for escalating gas and food costs."

Rep. Anchia, in his letter to the Commission, stated, "Since the legislation was enacted, the use of prepaid phones has greatly increased among low income and elderly Texans. Many of these residents are living on a limited or fixed income and are struggling in today's challenging economy." He continued, "I hope the CSEC will refrain from collecting this fee from prepaid cell phone users."

The Commission is scheduled to meet in Austin, Texas on Friday, July 25th to further consider the new tax on prepaid cell phones.