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PUC OKs 3.4% Tax Hike for Long-Distance Calls

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Telephone customers in Los Angeles and throughout the state will pay an increased tax of 3.4% on their long-distance calls within California, effective July 1, to help pay for basic telephone service for low-income households.

The Public Utilities Commission approved raising the current 2.5% surcharge, boosting the levy to 3.4 cents on $10 worth of intrastate calls.

The PUC said 1.5 million households now benefit from the subsidized service, called Lifeline, which cuts in half the basic monthly charge for local service.

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To qualify for Lifeline service, total income for a household of one or two people must not exceed $13,600. The limit rises to $16,000 with a third person and increases by $3,200 for each additional member.

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