Pennsylvania House lawmakers to vote on whether to eliminate 2 taxes on cellphones
Pennsylvania House lawmakers are expected to vote this week on whether to get rid of a pair of taxes on cellphones.
"These are really essential devices and ought to be exempt," said Rep. Ben Waxman, D-182.
That's the thinking behind the proposal to exempt cellphone use from a 6% sales and use tax, as well as a 5% gross receipts tax.
Waxman is a chief sponsor of the proposal.
"It's about $100 over the course of a year for someone who just has a single plan at the lowest level. Obviously, most families have many more devices than that, so the amount then increases," he said.
Waxman said the Shapiro administration estimates $124 million would remain with Pennsylvania households by eliminating the taxes. But at a committee meeting last week, some Republicans worried if the state can afford to lose those dollars in the years to come.
"It's fine this year when we have a surplus, but it's pretty obvious moving forward we're not going to have one," said Rep. Keith Greiner, R-43.
This proposal also does not address a separate request from Gov. Josh Shapiro to hike the state's monthly surcharge on phone use from $1.65 to more than $2 to help pay for 911 services.
The proposal comes as lawmakers and the governor's office are working to hammer out a new budget. Senate Republicans have said a budget passed by House Democrats already could leave the state financially challenged in years when tax revenue isn't as good.