The state telephone tax varies by state and is collected by telephone companies from the customer or end user in the case of radio access lines; the amount of the tax is separately stated on billings to the customer. The receipts, after deduction of the company's collection costs, are typically remitted to the county and/or the State Treasurer.
Local funds are often used for the county emergency services communication system. State tax receipts may be deposited in a 911 services account (to fund the state program and to assist counties in implementing enhanced 911 services.
The state tax usually applies only to switched access lines; without a separate tax on wireless telephone communications. Further, some argue that wireless communications should pay the same county tax rate that is paid by switched line customers when the same level of enhanced service is available for these users. Such service may occur when the technology is developed that will permit the location of mobile callers.
