atcomsystems.ca/forum Forums Wiring - Telecom Carriers - Trunks & Services Telecom Service & Providers Buggy Whip Tax

This has made a lot of news lately. It's usually headlined as "We're still being taxed to fund the Spanish American War." Here is an excerpt reportedly from a Seattle paper. I thought it would be interesting to hear some thoughts on this one.

Back in 1898, Congress passed a levy of one cent per telephone call to help raise money to fund the Spanish-American War. The tax, while temporary, has been on-again, off-again throughout the years, and was reinstated in 1990. Now it is three percent (3%) of your overall telephone bill. And some people are refusing to pay it.

Telephone companies are required to attempt to collect the federal excise tax, but since they have no enforcement power, they cannot force you to pay it. So anyone who protests paying the federal tax to their phone company will receive a corresponding reduction on their telephone bill. But the law requires the companies to report such protesters to the Internal Revenue Service.

Interesting. How do I find it on my bill so I can refuse to pay it.

Here in Pa. we pay a tax on liqour for the Johnstown Flood, that was only 105 years ago, I've been to Johnstown, it looks pretty well restored to me. I doubt they are getting any of those funds.
Mark

I thought that would be a good question for our new Moderator. I have NOT pulled any case law, but I believe it falls under 49.4291-1, title 26; 1996 of the Federal Regs and states that the phone companies have no power to compel payment.

I think https://www.hanguponwar.org tells how to avoid payment but I haven't read the site to know how accurate it is.

This would be a good question to ask the FCC (Federal Communications Commission). Just give them a call and ask them what the ruling is for the Federal Tax. You could also call the PUC Public Utilities Commission and ask them as well or email them. I will put a few links for you to research.

FCC:
Email:
[email protected]
or call: 1-888-225-5322

PUC
Fill in this form for info:
https://www.floridapsc.com/apps/dockets/recordsrequest/
Or call toll free to New Hampshire location:
1-800-852-3793

Let me know what you find out.