Local News
State tax on pre-paid cell phones challenged 
05:49 PM CDT on Thursday, July 24, 2008
A state tax on wireless phone service is being challenged by those who claim it unfairly burdens the poor and the elderly. It's a 50-cent fee on pre-paid cell phones and calling cards.
The money pays for the statewide 9-1-1 emergency system, but some say the way it is collected is unfair.
At age 84, Tennis Coach George Wunderlick loves to challenge young players. But as a senior citizen on a fixed income, he faces his own challenges -- like how to pay for cell phone service on a limited budget.
That's why he now uses a pre-paid cell phone that allows you to buy minutes as needed.
"My wife used to have a regular phone. It cost about $50 a month. My TracPhone cost $7 or $8 a month something like that," he said.
The savings on pre-paid cell phones and calling cards make them popular among the low income and the elderly. But now some consumer groups say the savings is being chipped away by a 50-cent tax charged every time the user buys minutes. On average that's once a week and Wunderlick calls it unfair.
"That means the tax is going to hit them four times as hard as it does a regular person," he said.
A debate is underway over the amount and way the fee is collected.
"I think a much fairer and I proposed this yesterday so that if you have a $5 or $10 card -- you're paying 10 cents," explains State Representative Eddie Rodriguez. He's leading the effort to change how the fee's formula for those pre-paid cell phone users.
There is no argument that the law may need to be modified.
"We think it ought to be applied fairly in a non discriminatory manner," said Paul Mallett, the executive director of the State Commission on Emergency Commission.
But changes will not be made by the commission. Instead it is likely to be tackled when the Legislature meets in January.
George Wunderlick and others who use pre-paid cell phones want it resolved once and for all.
"It's a necessity for life. It's a life threatening necessity not to have this cell phone," he said.
The 50-cent tax was created in 1997 to pay for the statewide 9-1-1 emergency system before pre-paid phones and calling cards were sold.
Recently two companies challenged the charge and filed for a refund of more than $2-million combined, raising the issue.
More headlines
News, Photos & More
KVUE on your Desktop: Get traffic, radar and up-to-the-minute headlines on your desktop.
Keep Up: Have KVUE headlines delivered to your RSS reader.
Find out what's happening: Check our Events calendar to find events near you.
Most popular KVUE.com stories
Most E-mailed News
Popular Stories






You must be logged in to contribute. Log in | Register Now!
You are logged in as screenname | Log Out
You are logged in, but do not have a "screen" name. Update Your Profile