The good news about telecom taxes is that they won’t be going up this session. The bad news is that they won’t be going down. Texas has some of the highest telecommunications taxes in the nation. We’ve made progress recently in reducing those taxes, but there is still plenty of room for improvement.
Our recent policy perspective, Telecommunications Taxes in Texas, explains where we should go next to reduce these taxes and improve the competitiveness and efficiency of the telecommunications market in Texas.
Texas still needs to: reduce not only the local telecommunications franchise tax, but also franchise taxes for electricity, cable and natural gas lines; eliminate sales taxes on telecom manufacturing equipment; change the way property taxes are appraised on many of the legacy telecom providers; and reduce the overall taxes on consumers’’ telephone bills.
This post was first published by the Texas Public Policy Foundation.
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