Oregon wants to tax prepaid phones

KOIN:

By JONATHAN J. COOPERAssociated Press    SALEM, Ore. (AP) -- The Kitzhaber administration plans to charge a 75-cent-a-month tax on prepaid mobile phones, despite the objections of Verizon and T-Mobile and a possible court fight.    People who use other cellphones, or land lines, already pay the tax. It raises $80 million a year to support 9-1-1 services.    Emergency responders tried to persuade the Legislature to make the change last year, but the idea of a tax increase went nowhere.    Now, the state tax department tells The Associated Press that legislative lawyers have determined the department already has the authority to levy the tax.    It is not clear when the tax would take effect. But big mobile-phone carriers are crying foul. They fear they won't be able to collect from prepaid customers and will wind up paying the tax themselves.(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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