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Prince George's County Council introduces excise tax on telecommunications to bolster school funding
Summary
Council members introduced CB 18-2025 to replace the county's telecommunications sales tax with a $3.50-per-line monthly excise tax, directing most revenue to the public school system; committee staff projected roughly $51 million in 2026 and the Government Operations and Fiscal Policy committee reported the bill favorably with amendments.
Prince George's County Council members introduced CB 18-2025, a measure to repeal the county's existing telecommunications sales tax and replace it with a flat $3.50-per-month excise tax per line, with 90 percent of net proceeds earmarked for operating expenditures for the county public school system and the remainder available for administrative costs, approved school capital projects or debt service.
The bill was presented in first reading and referred to the Committee of the Whole. Council Member Watson summarized the Government Operations and Fiscal Policy committee's review, and David B. Jupe of the Office of Management and Budget told the committee the proposal would raise about $51 million in the 2026 budget under the office's estimate.
Why it matters: County staff reported that the county's telecommunications tax revenue has fallen sharply as usage patterns changed; the committee record cited prior receipts around $50.1 million in earlier years and a recent decline to about $13.5 million, which proponents say the excise structure would arrest or reverse.
Details and debate: The GOP committee director told members that an excise tax differs from a sales tax because it is a flat dollar amount rather than a percentage of price. The presentation noted comparable jurisdictions that adopted excise taxes generally maintained or grew revenue while Prince George's County saw declines tied to changes such as texting and bundled services. The committee received opposition comments from CTIA and Verizon, according to the staff report.
County staff and the county executive's office supported the measure during committee review and the Office of Law provided technical amendments. Council Member Harrison moved a favorable recommendation and Council Member Hawkins seconded; the Government Operations and Fiscal Policy Committee reported the bill out with an amended recommendation (committee tally reported as 3 yes, 1 no, 1 abstain).
Next steps: The bill remains in the Council's legislative process and will return for further committee and floor consideration per the referral to the Committee of the Whole.
Sources: Committee report and presentations to the Government Operations and Fiscal Policy Committee as presented by Council Member Watson and OMB staff.
