Norwalk : Utility Tax Broadened to Cellular Phone Users

The City Council decided this week to extend the city’s utility-user tax to residents who have cellular phones. The 8% tax already applies to electric, gas and home telephone bills.

Officials estimated that 3% to 4% of Norwalk’s 96,000 residents use cellular phones. The tax will be assessed on the average $37 basic monthly service charge for the cellular phones. City officials estimate the tax will generate $102,000 to $136,000 each year. Cellular phone users can expect to see the tax on their phone bills in about 90 days.

Council members said they hope the new tax will generate enough money to grant full or partial exemptions on utility-user taxes paid by low-income residents, who make up 6.5% of the city’s households. These residents pay about $205,000 annually in utility-user taxes.

Officials will review the revenue figures from the tax on cellular phones in six months before deciding whether to approve the exemption for low-income residents.