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46 °F Forecast | Road Cams Tuesday, May 11, 2004 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA Newspaper in Education Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find a Rental Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Email Story to a Friend April 24, 2004 Daniel Brand talks on his cell phone Friday while loading supplies into his coffee shop at the Rogue Community College administration building in Medford. The city is considering a new tax on cell phone use. Mail Tribune / Bob Pennell Cell-phone tax idea causes a buzz By MEG LANDERS Mail Tribune When Medford resident John Green heard the city is considering a new tax on cell phone use, he didn’t buy into it. "I pay property tax," said Green, a cell phone user. "They (the city) should have enough to pay for everything," he said, adding that he’d prefer the city look elsewhere for revenue. "I think Oregon needs to get a sales tax just like California," he said. The Medford City Council Thursday gave city staff the thumbs up to investigate a "privilege fee" for cell phone, landline phone and cable users. Like most cities, Medford already taxes landline phone and cable television services. But the city has lost more than $200,000 in annual revenue as residents make fewer landline phone calls, relying instead on cell phones that aren’t taxed by the city. Advertisement The problem is how to make up the loss. The city is considering a 2 percent fee for cell phone, land phone and cable use, which the companies pass on to their customers. For example, on a $200 cell phone bill the fee would be $4; on a $50 cable bill, $1; and on a $50 Qwest bill, $1 — totaling $6 per month. Lynn Casad of Medford said that’s about what her tax for those services would come to. "Six bucks is considerable," she said. "I wouldn’t mind doing something, but that’s high." She said if such a fee was approved she would like to see it designated for something specific so it didn’t get swallowed up in the city’s general fund, which is used to pay for a variety of things from police protection to parks and recreation services. Finance Director and Deputy City Manager Jef Faw told the council Thursday that residents are increasingly relying on cell phones and bypassing landline phones altogether. "We’ve lost ... 14 to 15 percent of our total telephone franchise fee," he said. Eugene began charging a 2 percent privilege tax on landline phone bills, cell phone providers and its local cable TV franchise in 1997. The city annually collects $1 million, which is designated for technology upgrades. The League of Oregon Cities is assessing the statewide interest among cities for taxing cell phone bills. Portland, Pendleton, Salem and Gresham have expressed interest so far, said Faw. As Casad suggested, Faw proposed that the council consider dedicating the revenue to a specific purpose so residents can feel more comfortable knowing how the money is being spent. Councilman Jason Anderson was concerned about creating another tax. "I think we’re going to hear from our constituents if this passes," he said. Councilwoman Claudette Moore, however, supports the idea because she said those hardest hit would tend to be people who could afford it. Rogue Community College student and Medford resident Richard Hawkins, 21, said it’s not a very student-friendly tax because students don’t have the extra money to spare. "That one or two bucks — that’s me getting a bowl of rice," he said. "I don’t want to support that." Daniel Brand of Medford, who pays $40 per month for his cell phone, shrugged at the idea. "I’m never into paying more money for things, but I guess they gotta do what they gotta do," Brand said. City staff will continue to look into the proposal and its implications and report back at a council meeting. Reach reporter Meg Landers at 776-4481 or e-mail [email protected] Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2004 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback ADVERTISERS A D V E R T I S E R S RESOURCES Oregon Road Conditions & Cams SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Food for Thought Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities Prime Times