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Thursday, September 27, 2007


Cellular phone service provider Verizon has agreed to pay nearly $30 million to settle a long-running tax dispute with Missouri municipalities, according to the St. Louis Post-Dispatch. Numerous Missouri cities filed suit against Verizon and other cell phone companies in 2001, claiming the companies were failing to pay local taxes on phone service. The companies argued cell phones weren’t subject to the taxes, most of which were enacted before the existence of cellular technology.

At the urging of the cell phone industry, the Missouri General Assembly passed legislation in 2005 that sought to derail the lawsuit. However, the Missouri Supreme Court later declared the law unconstitutional. Verizon is the first company subject to the suit to settle. The other companies are AT&T, Sprint Nextel, US Cellular, T-Mobile and Alltel.

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