WASHINGTON-The Missouri Senate approved legislation setting a 5-percent cap on wireless taxes, while putting an end to a slew of lawsuits filed by cities to recover back taxes from mobile-phone carriers.
The House last month passed a different version of the bill-sponsored by Rep. Shannon Cooper (R)-which would ultimately keep wireless taxes at a maximum 3 percent. As such, it is unclear whether the House and Senate can agree on a compromise and what that measure would look like before the end of the legislative session. State lawmakers could decide the matter by Friday.
The mobile-phone industry, which is battling wireless taxes in cities and states across the nation, took a different tack in Missouri than it has in other states. Cellular carriers support the legislation because it limits wireless taxes and rids service providers of lawsuits lodged against them by a couple dozen of the 600 municipalities in the state.
Local officials oppose the legislation because they feel they will lose a major source of revenue. But backers of the measure contend it creates more certainty and stability for cities in light of the growth of wireless usage and decline in demand for landline telephone service.
