Nebraska had the highest average overall cellphone tax in America at 24.49 percent (18.67 percent of that is state and local), and Oregon had the lowest at 7.67 percent (with just 1.85 percent charged by state and local governments).
The study notes that cellphone use is taxed at a much higher rate than other consumer items, even alcohol or cigarettes. It noted that the highest sales tax in the country is 9.43 percent in Tennessee, but the highest state and local taxes for cellphone service are almost twice as high.
"State and local governments should not single out one product for stealth tax increases as they are doing with wireless services," said Joseph Henchman, Tax Foundation vice president for legal and state projects.
"Scholars from across the political spectrum have criticized telecom taxes as burdensome, regressive and stifling consumer choice," said Tax Foundation economist Scott Drenkard.