The State's PUC No Longer Plans To Tax Text Messages

The State's PUC No Longer Plans To Tax Text Messages

The state’s public utilities commission is no longer planning to tax text messages. We reported last week that the California Public Utilities Commission had planned a January 10th vote on a proposal to create a monthly surcharge on texting plans to subsidize programs for low income state residents. However, an FCC ruling last week determined the proposal is unlawful. A statement by the California PUC read, “The Federal Communications Commission issued a declaratory ruling finding that ‘text messaging’ is an information service, not a telecommunications service, under the Federal Communications Act, which limits the state authority over information services. Prior to the ruling in court, the state has decided to drop the proposal. The previously proposed “text tax” faced strong opposition from industrial trade groups that represent companies like AT&T, Sprint and T-Mobile.

Additional information