A Maryland tax court said two of the state's largest jurisdictions can legally collect mobile-phone taxes. The court rejected a petition from four mobile operators to overturn Baltimore's $3.50 per month fee on mobile and landline phones and Montgomery County's $2 fee. T-Mobile, Verizon, Sprint and Cingular said the fees amounted to sales taxes, which only states are allowed to charge. "A flat tax on a telephone line, which does not vary depending on customer usage, is an excise tax rather than a sales tax under Maryland law," the court said.
To read more about Maryland's tax court upholding mobile-phone fees:
- check out this article from AP