Cell phones are a common fixture on college campuses and in local businesses.

In December 2003, Gov. Ed Rendell passed the Pennsylvania Gross Receipts Tax (GRT) on wireless services in Pennsylvania.

Pennsylvanians pay a 6 percent state sales tax in addition to local charges on wireless service. The gross receipts tax adds an additional 5 percent tax on wireless services.

The revenue from the tax goes to a general fund and is not designated for a specific fund, such as an education fund.

Steve Kniley, Pennsylvania Department of Revenue press secretary, said it was too early in the year to declare a budget surplus.

He said as of October there was a 2.4 percent overestimate, which is about $166 million.

The tax was passed as part of the budget package intended to balance the budget, and Kniley said there was not a provision to phase out the wireless tax.

Verizon Wireless spokeswoman Laura Merritt, said the tax has multiple effects.

"The industry and customers are paying more than their fair share compared with other states," she said. "Not only does it become a cost of service to the customer, it takes money away from the network infrastructure and other system enhancements in Pennsylvania."

Kniley said there has always been a gross receipts tax on wireless service.

"There has always been a gross receipts tax on conventional land lines. The distinction between the two is artificial," he said. "The same tax that had always been applied to landline phone calls is being applied to cell phones, too."

Sen. Bob Wonderling, R-Montgomery, is the primary sponsor of Senate Bill 1156, legislation that would repeal the gross receipts tax on Pennsylvania wireless services.

"Sen. Wonderling is very much pro-consumer," John Basial, Wonderling's counsel, said. "He believes Pennsylvania citizens are taxed on too many things already."

Basial said the tax was passed because of the budget shortfall in 2003.

"Pennsylvania is now in a budgetary surplus and it's no longer necessary," Basial said.

Jim Broussard is the chairman of Citizens Against Higher Taxes, the state's largest taxpayer group. The organization honored Wonderling for his co-sponsorship of Senate Bill 1156.

"The biggest problem [with the tax] is that when you put a tax on a fundamental part of doing business, it increases the cost for all businesses," Broussard said. "There's no distinction between how well you're able to handle the extra tax burden."

Sen. Jake Corman, R-Centre, supports the bill to repeal the gross receipts tax.

"Sen. Corman was a vigorous opponent of the tax in the first place," Don Houser, Corman's chief of staff, said. "Now, we're trying our best to repeal this tax."

The gross receipts tax depends on the amount of wireless service a customer has. The more minutes a customer has in his or her service plan, the greater the cost to the wireless provider.

Houser said the tax may deter businesses from coming to the state.

"This is Pennsylvania going out all on its own and putting wireless companies at a clear disadvantage with other states," Houser said.

Merritt said Verizon Wireless identifies the tax on the customer's bill as other charges and credits.

"If we don't make a successful transition to new technology, we will all be hurting," Broussard said.

Merritt said Pennsylvania is unique from other states in terms of the gross receipts tax.

According to Merritt, the states that have gross receipts tax have used the tax to replace another tax, but Pennsylvania has made it an additional fee.

Erin McGee, CTIA-The Wireless Association spokeswoman, said the tax has negative effects.

"Pennsylvania currently has the eighth highest rate on wireless taxes and fees," McGee said. "It puts a burden on all Pennsylvania residents."