TracFone Proposes Alternative to Pre-emption Petition Barring Local Lifeline Taxes
As an alternative to granting TracFone’s petition to pre-empt state laws imposing local taxes on Lifeline, the company said in comments posted Monday in docket 11-42 that the FCC could pass rules prohibiting states from requiring eligible telecom carriers to…
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collect the taxes. “TracFone is mindful of the fact that any attempt to preempt state laws invites challenge and that the Commission may be reluctant to exercise its preemption authority in this situation,” the company said. As in its Oct. 23 emergency petition seeking pre-emption (see 1501120019), TracFone cited a monthly $1.75 per customer 911 tax approved by Alabama and a monthly 50-cent 911 tax approved by Alabama. The Department of Agriculture prohibits local taxation of Supplemental Nutrition Assistance Program food stamps benefits, TracFone said. Alabama and Indiana officials didn't comment.