Missouri To Tax Prepaid Cellphone Service To Fund 911 Calls

JEFFERSON CITY, Mo. (AP) — The cost of prepaid cellphone service will slightly increase in Missouri as the result of a new state law.

Under the law taking effect Tuesday, a 3 percent surcharge will be applied to the sale of prepaid wireless service to help fund 911 emergency call centers.

The new Missouri law also authorizes cities and counties to ask voters to replace their current 911 sales taxes or landline phone taxes with a new fee of up to $1 a month that would be charged both on landline and traditional wireless phone services.

Other laws taking effect Tuesday reduce the state’s individual income tax rate by one-half of a percentage point but offset that by reducing the state income tax deduction people can claim for taxes they pay to the federal government.