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California extends tax on phones to fund high-speed internet

Damian Dovarganes/AP

In this June 5, 2020, file photo, AT&T workers deploy fiber optic lines for a cell phone tower station in the Chinatown neighborhood of Los Angeles. California Gov. Gavin Newsom signed a pair of bills on Friday Oct. 8, 2021, that extend a state tax on phone bills to pay for high-speed internet connections in unserved areas of the state. The laws don't increase the tax, but makes it easier for regulators to change how the tax is collected, which could increase the tax for cell phone customers.

By: Associated Press

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.

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California extends tax on phones to fund high-speed internet

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