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New Law Protects Phone Service for Low-Income Mainers

New Law Protects Phone Service for Low-Income Mainers

Photo: 560 WGAN Newsradio


AUGUSTA, Maine (AP) – A phone service helping 48,000 low-income Mainers will be exempt from certain taxes and fees under a new law.

Republican Gov. Paul LePage signed Republican Sen. David Woodsome’s bill into law on June 25. The law goes into effect in January.

The law aims to protect discounted and free phone services that are offered by landline and wireless carriers and subsidized by the federal government.

Maine Revenue Services in 2016 said the federal subsidy should face prepaid wireless fees and a six percent service provider tax similar to sales tax.

Carriers appealed that decision. The Telecommunications Association of Maine testified carriers would face passing on the tax to low-income customers.

Maine Public Advocate Barry Hobbins and advocacy groups like AARP said Mainers on fixed incomes would be hurt.

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