Ancient Telephone Tax Repealed – Three Year Refund Due Consumers

In a widely-heralded and very long-sought victory for CAGW and all taxpayers, the Treasury Department announced last May that it would stop collecting the excise tax on long distance telephone service. Known as the Spanish-American War Tax, this "temporary" tax on phone service, considered a luxury at the time, has survived for 108 years, far surpassing its raison d’etre, which lasted just four months. You can apply for a refund of the payment of that tax from 2003-2006 when you file your 2006 tax return next year.