Wyoming Proposes Prepaid Tax

tax

One of the nice things about using prepaid services is that many states don’t have a separate tax like postpaid accounts do. In fact, around 24 states have absolutely no tax on prepaid services, while the remaining 26 states have minimal taxes. However, Wyoming legislature is currently contemplating adding a 1.5% tax for prepaid cell phones and phone cards. The bill will be voted in next year and if passed will start in 2016. According to the Wyoming News article I read, this tax will go to help fun 911 services, the same as the annual 75-cent fee that postpaid customers pay per line. It’s estimated that this 1.5% tax would result in an additional $500,000 revenue for the state. “I think we can all appreciate how expensive 911 services are,” Laramie County Commissioner Amber Ash said to Wyoming News. “And we’ve found that the 911 tax, in and of itself, is not enough to take care of all the upgrades.” Postpaid services are becoming more and more common, with roughly 23% of Wyoming consumers utilizing these services, according to the research firm Ovum. They further estimate that by 2016, the number will be closer to 30% of consumers. The Wyoming Legislature will consider the proposal on this tax in the upcoming 2015 session, which begins Janury 13. Fore more information, check out the full article here.]]>

Posted in