LOS ANGELES — Tweeting, Facebooking, Skyping smartphone users are costing U.S. states and cities revenue as taxes rooted in old-fashioned telephone service fail to keep up with the Internet era.
In Phoenix, Ariz., the loss of $1.3 million in telephone tax revenue translates to the cost of training and equipping 10 police officers, said Mario Paniagua, the budget and research director. In Springfield, Illinois, a $200,000 shortfall in telecommunications revenue is keeping the library from extending hours.
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