JK — California Backs Off Proposed 'Text Tax'
California's utility commission took back the proposal due to a recent FCC ruling.
Just kidding — California is backing off on a proposal to tax residents' text messages.
The state's public utility commission took back the proposal following a recent FCC decision that text messages should be classified as an information service, not a telecommunications service. California law says information services can't be taxed.
The proposed surcharge was expected to help fund programs that assist low-income residents. It reportedly would have been a monthly fee added to customers' cellphone bills, not a charge per text.
But at the time, a trade group that represents the wireless communications industry argued the tax was illegal, citing the recent FCC ruling.
The commission was set to vote on the proposal Jan. 10.
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