The introduction of the microprocessor, a single chip with all the circuitry that formerly occupied large cabinets, led to the proliferation of personal computers after 1975. Because each state and many localities can impose cell phone taxes, and because they can be imposed as a percentage or as a flat rate, there are numerous taxes which vary widely.
For computers generally referred to as PCs, see IBM Personal Computer and IBM PC compatible.


Notable among local jurisdictions, Baltimore, Maryland imposes a $4 per line per month tax on wireless users on top of federal and state charges. Researchers have found it difficult to create a database of cell phone taxes, and cell phone companies have encountered similar problems in calculating the taxes. That period has also seen a fall in landline telephones, with 34 percent of households now only using wireless phones. This trend toward cell phones has not gone unnoticed by state and local governments, many of which have targeted wireless services for higher taxes.


According to Tax Foundation, this can be a serious problem for cell phone businesses because they collect the taxes from subscribers and can be held legally accountable for any mistakes—both over-collection and under-collection.



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