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California extends tax on phones to fund high-speed internet

California Broadband
Posted at 4:00 PM, Oct 08, 2021
and last updated 2021-10-08 19:00:34-04

SACRAMENTO, Calif. (AP) — Californians could have higher cellphone bills because of two new laws signed by Gov. Gavin Newsom. The laws Newsom signed Friday make sure California will keep collecting a tax on phone bills.

They also let the state collect more of the tax. The money pays for building high-speed internet connections in unserved areas of the state.

The laws do not increase the tax. But it makes it easier for state regulators to change how the tax is collected. That could lead to higher rates for cellphone users. Currently, landline users pay more of the tax than cellphone customers.