Out-of-state phone calls will cost residents 3 percent more from now on under a new village telecommunications tax.
The tax, an expansion of the village’s utility tax base, will be applied to all out-of-state calls originating in the village, said Jeffrey Rowitz, director of finance. Using the number of out-of-state calls during the last year as an indicator, the tax is expected to generate about $55,000 per year, he said.
The new tax is allowable under a law passed by state legislators this summer giving municipalities the right to impose a telecommunications tax of up to 5 percent on out-of-state calls. The law was part of a compromise to help municipalities recoup some of the funds they had been collecting under the state’s income tax surcharge.