Wireless Companies Take Tax Fight to Court

9 years 6 months 3 weeks ago March 02, 2007 Mar 2, 2007 Friday, March 02 2007 Friday, March 02, 2007 3:11:48 PM CST in News
Source: (Copyright 2007 The Associated Press All Rights Reserved.)
KANSAS CITY (AP) - Wireless companies have sued hundreds of Missouri cities in the past month, claiming they're paying taxes that they shouldn't be. Local laws enacted in the 1940s and 1950s allow cities to levy taxes and fees on telephone customers. Wireless companies contend they don't sell telephones, while cities argue that at least part of a wireless call travels over regular phone lines. The Missouri Municipal League estimates cities take in $50 to $60 million in taxes from traditional landline customers every year. The group believes cell phones could generate $75 million more. A Verizon Wireless spokeswoman says cellular technology wasn't around when the laws were enacted.

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