The Alabama Public Service Commission (PSC) on Tuesday announced yet another tax cut for consumers, eliminating a tax on landline telephone service.
The specific tax that was cut provided funding for the state Dual Party Relay system, which was created by legislation in 1988. Cutting the tax will not end the system.
This comes after the PSC in 2018 announced major breaks for Alabama Power and Spire customers across the state in conjunction with President Donald Trump’s tax cuts.
The PSC currently collects $0.15 per month for each telephone line, which equates to $1.80 each year for consumers. Over time, the fund has stockpiled sufficient funds to continue to provide funding for the essential services for a minimum of 8 years. As a result, the commission has voted to eliminate the collection of this tax.
The Dual Party Relay fund has contributed greatly to improving lives of the hearing impaired in Alabama. The PSC, in a press release, noted that it appreciates the value of the service provided by the fund and is committed to ensuring the fund continues to operate in the future. This has been a tax on landlines, and considering the proliferation of cell phones, it now seems to disproportionally affect more of Alabama’s rural and senior citizens.
Commission President Twinkle Andress Cavanaugh said, “We removed the tax today because a tax set aside for a certain purpose should not continue to be collected when the need has been met. The Dual Party Relay fund provides a great service to our hearing impaired community, but we also have a responsibility to the taxpayer paying for the service.”
“Many say that once a tax is implemented, it will never go away,” Cavanaugh continued. “Today we proved them wrong and cut a tax!”
“As long as the Duel Party Relay Fund is able to effectively fund its’ mission, the Commissioners see no reason to allow the operation of the tax to continue,” Commissioner Jeremy Oden explained.
Commissioner Chip Beeker added, “We made the decision to remove this tax all together from the bills of the taxpayer. The removal of this tax will still allow the Dual Party Relay fund to operate effectively, but we also have a responsibility to the taxpayers in our State and the need for this tax has been met. Any time that we can cut taxes for the taxpayers in our State, we take delight in doing so.”
All three commissioners are Republicans.
Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn
