Indiana state senators are considering legislation, HB 1475, that would double the point of sale 911 tax for prepaid wireless customers, assessing a levy of $1.00 for every retail transaction. This increased rate would be four times greater than what was paid just two years ago.
If passed, HB 1457, the Indiana 911 Board would get the authority to hike the tax for prepaid wireless customers by 0.10$ without any legislative approval. Below is a copy of the letter that ATR sent to Indiana senators, urging them to oppose HB 1457:
March 19, 2015
Dear Member of the Indiana Senate
On behalf of Americans for Tax Reform and our supporters across Indiana, I urge you to reject House Bill 1475, legislation that would increase taxes and fees on Indiana residents. HB 1475, which will soon come to the Senate floor, would target Indiana residents who utilize pre-paid wireless services and impose drastically increased costs.
HB 1475 would double the point of sale 911 tax for prepaid wireless customers, assessing a levy of $1.00 for every retail transaction. This increased rate would be four times greater than what was paid just two years ago. Worse, HB 1475 would give the Indiana 911 Board authority to hike the 911 tax for prepaid wireless customers another $0.10 without legislative approval. It’s never a good idea to give taxing authority to an unelected body. Under current law, legislative approval is required for any 911 tax increase and it is best for Indiana taxpayers that it stays that way.
HB 1475 also increases the 911 tax on standard billed, postpaid, wireless customers from $0.90 to $1.00. That represents a 10% increase from the current rate and a 100% hike from what the rate was just two years ago. HB 1475 also includes provisions to aid the 911 Board’s goal of taxing low-income Indiana residents who receive federal Lifeline benefits.
Over 20 federal tax increases, along with a host of costly regulations, have been imposed by Washington on Indiana residents in recent years. The last thing Hoosiers need are higher taxes at the state level. As such, I urge you vote “No” on HB 1475. Americans for Tax Reform will continue to follow this issue closely throughout session and will be educating your constituents as to how you vote on this important matter. If you have any questions, please contact Patrick Gleason, ATR’s director of state affairs, at (202) 785-0266 or [email protected].
Grover G. Norquist
President, Americans for Tax Reform