The Prince George’s County Council voted 7-3 to pass a bill Tuesday that aims to increase county revenue by $51 million for the 2026 fiscal year by raising taxes on telecommunications services.

This bill seeks to provide a stable source of annual income for the county by imposing a $3.50 excise tax per telephone line each month, according to a presentation on March 13 by Nathaniel Tutt, the director of the council’s government operations and fiscal policy committee.

Council liaison Sakinda Skinner said on March 13 that the office of Acting County Executive Tara Jackson recommended passing the bill.

“This wouldn’t be the first time you guys have heard the sense of urgency and the need for generating some form of revenue in light of the fiscal climate that we are in and the fiscal climate that we will be facing as well in the future,” Skinner said.

At the March 13 meeting, David Juppe, a manager at the county’s management and budget office, said the bill would increase telecommunications prices from about $17 per person per year to about $30.

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Ninety percent of the revenue generated from the tax would go toward Prince George’s County Public Schools’ operating budget, according to Juppe. The remaining amount would be allocated to school renovation projects and repaying previous construction debt, Juppe told the council.

This bill repeals an existing 9 percent sales tax on telecommunications within the county, according to Juppe. The revenue generated from this tax has declined in recent years. In 2007, the county made about $50 million from the existing tax, but the revenue declined to $13.5 million in 2024, Juppe said.

The county’s proposed 2025 budget estimates the previous telecommunications tax rate will only generate $14 million in revenue, according to Juppe. This bill increases the projected telecommunications tax revenue for the 2026 fiscal year budget by $37.6 million, Juppe said.

Representatives from several companies and organizations spoke against the bill Tuesday, saying it would be unfair to residents to increase service costs.

Candice Austin, Verizon’s director of state government and local affairs, said implementing the excise tax amid rising costs for other essential goods could limit financial flexibility for residents.

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“Strong wireless connectivity is essential for county residents,” Candice Austin said. “The proposed flat tax rate could force some county residents, particularly those with lower income, to reduce or eliminate their wireless service, furthering the digital divide.”

President and CEO of the Prince George’s County Chamber of Commerce Alexander Austin said the bill would also negatively impact local small businesses that operate multiple telephone lines.

“This tax could translate into hundreds of dollars in added annual costs and at a time when small businesses are still navigating the financial shockwaves of rising inflation,” Alexander Austin said.

The passage of the telecommunications tax bill comes amid a $171 million shortfall in the county’s 2025 fiscal year operating budget.

While this bill increases taxes for residents, it will provide more revenue stability within the county, officials said.