New Study Decries Complex State, Local Telecom Taxes"

WASHINGTON -(Dow Jones)- U.S. state and local telecommunications taxes averaged 14.17% in 2004, more than double the average tax on general businesses, according to a new study released Wednesday.

The Council on State Taxation study is designed to highlight the group's call to simplify and reduce telecommunications taxes and related paperwork.

"The state and local tax laws continue to impose high levels of industry specific taxation on telecommunications services," according to a summary of the study.

"While some states have begun the process of reforming the state and local tax structure, much more is needed to reduce the high level of telecommunications taxation and administrative burden," the group said.

The study found a telecommunications provider filed an average of 47,921 tax returns, compared to 7,501 returns for the average general business.

The average state and local effective tax rate on telecommunications services of 14.17% in 2004 compared to 6.12% for general business nationwide, the study found.

"Tax laws in the states are antiquated and take money out of the pockets of every American telecommunications consumer," Stephen Kranz, tax counsel for the Council on State Taxation, said in a statement.

-By Rob Wells, Dow Jones Newswires; 202-862-9272; Rob.Wells@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 25th May 2005