County Reduces Telephone Tax
Posted By J.T. on August 17, 2009
Harrisonville, Missouri - in the early 1990’s, per state statute and the approval of Cass County voters, the County Commission of Cass County authorized the execution of service agreements with various telephone companies for expanded 911 emergency telephone services. Section 190 of the Missouri statutes authorized county commissions to impose an emergency telephone tax up on voter approval.
Specifically, it states, “The governing body is hereby authorized to levy the tax in an amount not to exceed fifteen percent of the tariff local service rate”.
The legislation defines “Tariff rate” as “the rate or rates billed by a service supplier to a service user as stated in the service supplier’s tariffs, approved by the Missouri public service commission, which represent the service supplier’s recurring charges for exchange access facilities or their equivalent, exclusive of all taxes, fees, licenses or similar charges whatsoever. ”
Currently, Cass County has been collecting the maximum of 15% of the tariff local service rate, as defined in statute. However, the County Commission has realized that the 911 fund was being adequately funded and that a slight reduction should be considered.
“The Commission wants to make sure that we are only assessing what we need,” stated Associate Commissioner Brian Baker. “Our Presiding Commissioner, Gary Mallory, reviewed the budget numbers, and proposed that we lower this tax to 11.5%. The Commission unanimously agreed.”
Baker noted that it is not a huge reduction, but we want to really make sure government lives within its means. “It means going from approximately $1.20 to .92 cents per phone bill on your land-line charge in terms of the county tax. It may not seem big, but in this day and age…small savings are important.”
However, the Commission also wanted to make sure citizens understand that that this tax is only applied to land-lines and that cell phones are not treated the same. “Unfortunately, you will see a 911 fee on your cell phone bill but that is a fee from the cell-phone companies. That fee you see on your cell phone is a 911 fee for the company and government does not get any percentage of that cell phone charge. State law does not allow us to treat cell phones the same - this needs to change soon,” commented Presiding Commissioner Gary Mallory. “It is really a truth-in-advertising issue…and it needs to be fixed.”
The County Commission says that as long as land-lines stay intact and people pay for land-lines then 911 funding will be stable. However, if consumers start canceling land-lines, and going strictly to cell phones, then funding will drop because cell phones are not included in that tariff-law. “It is important to keep in mind that you will see a 911 charge from your cell-phone providers, but it is deceiving because that funding does not really go to our 911 system,” commented Baker.
“The Missouri legislature has been debating this issue for years,” stated Baker. “I supported legislation to treat all communication devices the same, but there has not been a will to address the issue. I am fully aware that people can get ‘nickel and dimed’ with their phone plans and providers, but 911 access and support seems like a real service to people. I think the legislature needs to examine the issue closely so that we do not have a break-down in the system. We have to think long-term.”
The Commission stated the tax reduction should start September 1 after phone companies are notified of the change.
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