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GOP Legislators Draft Legislation to Avoid Future Text Taxes

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Although a federal ruling recently put the kibosh on a California plan to tax text messages, Republicans in the Assembly want to make sure it doesn’t happen again.


“Government policies have already made California unaffordable for far too many, and becoming the first state in the nation to tax texting would only make things worse.”Assemblyman Kevin Kiley
Assemblyman Kevin Kiley (R-Rocklin) announced his intention to prohibit the California Public Utilities Commission from taxing or applying fees to text messages. He will introduce such legislation in the new year.
Seven Republican assemblymembers plan to sign on as co-authors, including Assemblyman Jim Patterson (R-Fresno).
“Text messaging is integral to modern communication, especially for young people, and should remain tax free,” Kiley said in a statement. “Government policies have already made California unaffordable for far too many, and becoming the first state in the nation to tax texting would only make things worse.”

CPUC Proposes, Withdraws Tax

Carla Peterman

The CPUC, the state agency which regulates cell phone services among other duties, planned to vote on whether to impose such a tax at its Jan. 10 meeting. When the news broke, it received negative reaction from politicians, pundits, and residents.
On Dec. 12, the Federal Communications Commission issued a ruling that text messages could not be subject to taxation, because texting is an information service, not a telecommunication service. CPUC does have authority over the latter, but not the former.
Commissioner Carla Peterman brought forth the resolution. After the FCC ruling, she withdrew her proposal. However, she is wrapping up her six-year term on the commission. Incoming governor Gavin Newsom is expected to announce her replacement when he takes office next month.
“You can bet I’ll keep a watchful eye on them for future shenanigans,” Patterson tweeted following the FCC announcement.
Peterman was not available for comment.
“While I am glad that the CPUC has withdrawn its proposal — for now — it is important that the Legislature act to prevent the agency from imposing any text tax in the future,” Kiley said.

Advocacy Group Supported Surcharge

The community advocacy group Greenlining Institute supported CPUC’s authority to impose a surcharge on text messaging but is not outright opposed to Kiley’s bill.
“I support the assemblymember’s desire to protect consumers. Unfortunately, there has been so much misinformation on this policy. This law could do more harm than good. We are more than willing to work with the assemblymember,” Greenlining telecommunications policy director Paul Goodman said.
Goodman disagreed with the characterization from the FCC that the CPUC lacked the authority to impose what he called a surcharge.
“It’s a line pushed by industry. It’s inaccurate,” Goodman said.
As Greenlining saw it, the charge on texting would help low-income families with telecommunication needs.
“It is good public policy. This money is collected to provide services to low-income families — to help build infrastructure to make sure everyone has access to quality services,” Goodman said.

Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email