National League of Cities Urges House to Oppose Wireless Tax Bill

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Jul 13, 2011, 03:46 ET

WASHINGTON, July 13, 2011 /PRNewswire-USNewswire/ -- The National League of Cities, along with other public interest groups representing cities and counties, today sent a letter to members of the House of Representatives Judiciary Committee expressing strong opposition to the so-called Wireless Tax Fairness Act of 2011 (H.R. 1002). The bill is scheduled for mark-up by the full committee tomorrow. If enacted, the legislation would preempt state and local taxing authority at a time when most jurisdictions are facing severe budget shortfalls, as well as cutbacks and eliminations in federal assistance. Despite its name, the legislation unfairly provides more favorable tax treatment to one sector of the communications industry, while representing unwarranted federal intrusion into local authority.

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The letter was co-signed by the National Association of Counties, the United States Conference of Mayors, the International City/County Management Association, the Government Finance Officers Association and the National Association of Telecommunications Officers and Advisors.

Read a copy of the letter.

Highlights of the letter include:

"The bill would cause great damage to our system of federalism and the fiscal health of state and local governments while purporting to solve a problem – the supposed dampening effect of taxes on wireless service growth – that simply doesn't exist.

"The wireless industry is just one of many industries requesting that Congress preempt state and local taxing authority…If H.R. 1002 becomes law, Congress will continue to be flooded with demands from other industries, such as rental car and online travel companies, seeking exemption from state and local taxes.

"In order for states and local communities to continue to recover from the Great Recession, they must have at their disposal all the tools and resources available to balance their budgets, preserve and create jobs and provide essential services.... What this bill does is take away one of these tools – to tax the wireless industry – at the expense of other taxpayers and businesses."

The National League of Cities is the nation's oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans.

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SOURCE National League of Cities