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SS/taxveto.pr Contact: David Weaver, 301-217-6530
DUNCAN VETOES COUNCIL BILL TO
TAX WIRELESS TELEPHONE SERVICE For Immediate Release: May 23, 1996
Montgomery County Executive Douglas M. Duncan today vetoed a recently
passed County Council bill to impose a new tax on users of cellular and
wireless telephones, saying "the imposition of a new tax, particularly on one
of our fastest growing, high-tech industries, sends the wrong message at the
wrong time."
Duncan said if the tax is implemented, Montgomery County would be the
only jurisdiction in the region to impose a tax on cellular telephone lines.
"That is not the reputation we want, nor is it an appropriate action to take
if we want to continue to encourage high-tech businesses to locate in the
County," he added.
"Companies affected by this tax employ hundreds of employees in this
County and have invested millions of dollars worth of infrastructure, with
plans to expand existing facilities," said Duncan. "I am concerned that this
tax may make other jurisdictions more attractive to these rapidly growing
companies."
In transmitting his veto message to the Council, Duncan also noted, "We
must continue to hold the line on taxes and demonstrate to the citizens of
Montgomery County that we are capable of acting in a fiscally responsible
manner. At this time, we simply do not need the revenues estimated to be
generated by this new tax."
Under County law, the County Council could override the Executive's
veto, by the affirmative vote of six of its nine members.
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