Res 1171-59 I~ESOL~TION NO. 1171.
~ RESOLUTION 01~
CI~ OF DE~ B~CH, ~A~ B~CH CO~,
FL0~I~, ~Q~T~G ~T ~ 10~ ~~L
~CISE ~ ON ~C~ ~ LONG D~T~CE
~0~ S~VICE BE DISCONT~.
~, the ~ongPess now in session ~s the Federal
t~ st~ct~e ~er ~eview, ~d
~~, the telephone is a household utility ~o~
with gas, electricity ~d water, ~d telephone service is ~e o~
~ne of ~ese necessities which ls subject tea federal excise tax,
~d
~~, ~e fedePal excise t~ beg~ as a w~ ~eP-
ge~2 t~ ~_~d al~ou~ conditions ~ve since c~ed, the t~ ~e-
~ins in effect.
NOW ~0~, BE IT ~0L~
1. ~e Honorable Spess~d L. Holland, Honorable
George A. S~the~s, ~d Honorable Paul G. Rogers be ~ they here-
by ~e respectively requested to vote to discontimue ~e 10% feder-
al e~ise t~ on local ~d long dist~ce telephone semite on
basis that it is discr~to~ ~d contr~ to the best interests
of the public.
2. C~tes of t~s resolution be fo~arded to the Hono~-
able ~ess~d L. Holland, Honorable George A. S~the~s ~d Honorable
Paul G. Rogers.
P~S~ ~ ~0~ at a re~l~ meeting ~f the City
Co,oil of ~e City of Del~ay Beach, this 23rd day of Feb~u~, 1959.
A~T:
F!or~ds cu~to,~er.~ of Southern ~.ell ~d more than $11.4
miltio~ In red, era! e~ci~e tawe~ on telephone nerv~ce ~n 19~8,
T~e average ~ayme~t ~er customer amo~mte~ to .~16.~0. Souther~
~ell c,?~tom~-~ o~r +he South ~a!4 the Federal Exc~..~e Tax
Co~.~,...~ctors ~ly._~.. ~ '/:~gO m~ll~on. Telephone service i~ 'ta~e~ ,.,o~.~ the
r~e of 10 Der cem~ ~or We~er~! E~c!se To~ purposes.
TeleDhome service J~ the only househo!~ utility on whlch a
W~era! Ewc~e tax ~ lev~ed. T~ telephone com~aD~es i~ Flor~,~a
collect the tax from their cu~temer~ a~ turn ~% over
ta~ collectors.
The Bxci~e Tax on telephone ~erv~ce was ~n. tended many years
ago to he e temvorary t~.x hu* has ~ever been removed It was
reduced to the 10 ~er cen~ rate in 19<~.
Telephone u~ers cop~.der ~t ~n ~f~fr omo ~cr~m~.natory
tax because ~t s~ngles out one ~ez:nevt oC the ~ub!~c -- in fact,
one ~e~ment o~ household util~.ty ~er~ who already hear their
~are o~ ot~er Wedera!, State and local t~xat~on. Exe~e t~xes
~re us~al!y ~nnl~ed to ~uch luxury ~.tems as furs,
co,medics, l~uor, tobacco, cabaret bills, nr~v~ee club d~]es ~nd
t~e l~ke ~v~ of course t'~e telephone '~o~ay ~ pot ~. luxury but
a nece~ ry.
There ~,~s~ ~ !eei~tlatf. ve orooosal before Co~?re~ in
that would mske the telephone exc~.~e taw n Der~nanent ~art of the
Federal ~n~ the q~ate t~x ~tr~ct~]res, b~cau~e ~ wou!~ tr~nsfer
certain oart- of the r~venue from t~e tax to the st~te~ whf. cb
meet certa~.n condft!ons. Thfs ~,ioul~ ~ave the effect of embed~.ng
a d~sc~m ...... tory t~x Der,~anently ~n'~o Fe(~eral ~ ~tate tax
~tructures.
The ~a. tfonal ~,s.~oc~tiov of Railroad. and Ut~!ity Comm~ss~on-
ers reeept!y a~opted a resolution favoring reo~].. I~ ~ were
re~ealed, the customers ~,~ou!d ~et al! t~ae r~li~f directly and
~mmediste!y.