Six organizations representing local governments submitted a letter to the entire U.S. House of Representatives opposing the Wireless Tax Fairness Act of 2011 (HR 1002). The groups argue that the act preempts state and local taxing authority at a time when jurisdictions nationwide are facing severe budget shortfalls and scaled back federal assistance. This latest letter follows up on a July 2011 letter submitted to the House Judiciary Committee expressing opposition to the act.

The act would impose a 5-year prohibition on any new wireless taxes. The groups submitting this letter argue that this prohibition represents an unwarranted federal intrusion into their taxing authority, since it would impose preferential tax treatment on one specific industry. In addition to the potential loss of a source of tax revenue, the groups argue that the act would damage the system of federalism in an attempt to solve a problem that state and local governments believe does not exist.

The groups conclude by arguing that as state and local governments begin to emerge from the Great Recession they will need all tools available for raising revenue, and that since the wireless industry is just one industry that has requested special treatment from Congress this act could be the first in a long list of state and local preemptions.