Cell Phone Tax Hike Considered for Ballot

The city is considering a measure for the March 2004 ballot that would increase taxes for some cellular phone users.

Currently, the city imposes its 7.5% utility tax only on calls by cell phone users with an Oakland address that begin or end in the city.

New standards in the Federal Mobile Telecommunications Sourcing Act of 2000 would allow the city to collect taxes on an Oakland customer’s entire bill, said Bill Noland, Oakland’s interim finance director.

But because that would be tantamount to a tax increase, Proposition 218 requires the city to ask voters for approval. Because it would be considered a general tax, the measure would only require a simple majority to pass, according to the city attorney’s office.