OMG! California Proposes Taxing Text Messages

CALIFORNIA – Avoiding phone calls may be a thing of the past if a proposed tax on texting is approved. California regulators are considering a tax to text messages to increase funds for programs that bring connectivity to underserved residents, CNN reported.

A new surcharge proposed by the California Public Utilities Commission (CPUC) would add a monthly fee to cell phone bills that include text messaging services. So, Californians wouldn't be charged on a per-text basis (phew!). Most carriers offer a flat fee option for texting and already charge a similar fee for other services included in the bill, Fox News reported.

The proposed tax would likely have little to no impact on consumers, a CPUC spokesperson told KTVU. Although a fee may be assessed for texting, current fees for voice calls would likely be reduced.

However, industry groups aren't buying it, and the proposal has seen plenty of pushback.

Business groups including the California Chamber of Commerce countered that the new charges for wireless customers could actually total about $44.5 million a year, according to Mercury News. They said under the regulators' proposal, the charge could be applied retroactively for five years, and could amount to a bill of more than $220 million for California consumers.

"It's a dumb idea," Jim Wunderman, president of the Bay Area Council business-sponsored advocacy group, told CNN. "This is how conversations take place in this day and age, and it's almost like saying there should be a tax on the conversations we have."

The plan encountered an obstacle Wednesday after the Federal Communications Commission (FCC) ruled text messages aren't subject to the utility agency's authority, FOX reported. The FCC categorizes text messages as "information services" similar to emails, and not "telecommunication services" like phone calls. The CPUC now faces an uphill battle ahead of a scheduled vote on the measure next month, the news station said.

The CPUC has not yet commented on the FCC's decision but is scheduled to meet next on Jan. 10 in San Francisco, Fox reported.

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