Some Cities And States Increase Cell Phone Tax

The wireless industry says it's being unfairly taxed. According to a Web site they're sponsoring, Texas ranks sixth in the nation for cell phone taxes. For Texans, those taxes are now about 20 percent of your total cell phone bill.

Many cities and states are increasing these taxes because of the loss of tax revenue from land lines. However, City of Lufkin officials haven't seen a big drop in land line revenue.

"We estimate about $285,000 dollars. Ninety-seven percent of that comes from land line franchise fees. So you're looking at six, seven thousand dollars a year is all we collect," says Doug Wood with the City of Lufkin.

To find out more about federal, state, and local taxes on cell phones, visit .