I just received my "special election" ballot in the mail regarding Measure 02-54, the cell phone tax that will apparently cause the decline of western civilization. Or so the opponents of the tax would have you believe.
It's a fairly simple measure. Since the city has lost franchise fee revenue as more and more people switch from land lines to cell phones, the city council came up with this tax as a way to even out the cost burden to basically anyone with a phone. This measure calls for a 5% flat tax on all landline and cell phone calls. This is the same franchise fee already found on our electric, cable, water and garbage utility bills. It is not 5% of the total wireless bill; extras like ringtones, email and downloads will not be taxed.
The opponents of the tax are making claims that are intentionally misleading. The first is that this tax will affect landline service in addition to the 7% franchise fee already billed by the company. This is absolutely false. This 5% tax will
replace the existing 7% fee. If you only have a landline, your bill will actually decrease a smidge. The revenue from this tax will go into the general fund, but initially, the funds will be diverted to the fire department.
Opponents also state that internet phone service (Skype, Vonage, etc.) will be taxed. Wrong again. The measure clearly states that this tax will
not apply to any internet-based services whatsoever.
The same letter expressed concern that this measure would cause great hardship to lower income residents of Corvallis. While an argument could be made that having no phone service whatsoever is, indeed, a hardship, the same cannot be said for wireless service. If someone is in a position where they need to really scrimp and save, then cell phones (and cable TV and DSL and so on) should be eschewed in favor of cheaper alternatives.
Most irritating is the voters' pamphlet argument by the Taxpayers Association of Oregon that suggests "Cell phone tax hurts senior citizens and the disabled." The paragraph states that seniors and disabled citizens use cell phones as an emergency device for when they need to call for help. Well, there's no reason for them to stop carrying cell phones for emergencies. Even without any wireless service at all, any cell phone with a charged battery can be used to dial 911. It doesn't matter if you picked it out of the trash and can't afford the cheapest Verizon plan out there; 911 is always available.
The taxpayers of Corvallis may or may not have to shell out this wireless tax, but either way, we all have to foot the bill for this $25,000 special election. So you might as well vote, right? The deadline is September 19th. Consider it practice for November.