THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Friday, July 15, 1994                  TAG: 9407140150
SECTION: PORTSMOUTH CURRENTS      PAGE: 03   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
                                             LENGTH: Short :   45 lines

CITY COUNCIL IMPOSES NEW TAX ON MOBILE PHONE CUSTOMERS

If you own a car phone and you live in Portsmouth, those first few calls you make will be taxed.

The city is charging all city mobile phone customers a 10 percent tax on the first $30 of their bill. That means for customers who don't use their phone often and pay the basic fee, they'll also be paying an additional $2 in taxes. For customers who make a few phone calls, their tax bill will be slightly higher.

The City Council approved the tax 4-3. Vice Mayor Johnny M. Clemons and council members Bernard C. Griffin and James T. Martin opposed the tax.

``This seems to be a nuisance tax we put on the citizens and then tell them we didn't raise taxes,'' Martin said. ``It's not projected in the budget and it won't cause any hardship if we don't pass it.''

Only one citizen came to the public hearing to oppose the tax.

Evelyn D. Manley said she is a senior citizen on a fixed income. She said her phone bill is $20 a month and the new tax would cost he an additional $2. She owns her cellular phone for safety reasons, she said.

``I have the phone in case my car breaks down,'' Manley said. ``My phone is my protection, it's not for pleasure.''

Manley suggested that the council tax bills that exceed $30, rather than tax those with minimum bills.

Councilman James C. Hawks, who voted to approve the tax, said Manley is the exception. Most people who own car phones, he said, can afford to pay the tax, which will be limited to $3.

Norfolk is the only other city in the region that taxes car phones. That city brings in about $200,000 annually from the tax, Portsmouth officials said. Portsmouth can expect to bring in $50,000 to $70,000 a year, which would be used to help repay the city's long term debts, officials said.

Newport News is considering the tax, which was approved by the General Assembly last year.

KEYWORDS: PORTSMOUTH CITY COUNCIL by CNB