The “Text Tax” is dead! The California Public Utilities Commission (CPUC) pulled their proposal to tax text messaging by placing texts under their public purpose program surcharge and user fee. BizFed members mobilized, sending in letters of opposition to the CPUC. The proposed plan would have been to include text messaging as a telecommunications service and therefore subject to longstanding taxes on voice calls and other services.
The CPUC was forced to pull their proposal because of a December 12th decision by the Federal Communications Commission (FCC) to classify text messaging as an informational service and not telecommunications. CPUC Commissioner Peterman withdrew the proposed motion following the FCC decision, which was announced via the official CPUC twitter account.
Although this is a major victory for the business community, we will continue to look out for any efforts by the CPUC to further tax business and individual consumers on their usage of informational services including text messaging.
We want to thank all of our members that stepped up and wrote letters to the CPUC on short notice. We made a quick and swift call to action and all of your great work made all the difference!