Fri, Nov 27 2009
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Published January 11, 2008 09:13 pm - If it rings like a phone and it conveys voice like a phone, it’s probably a phone, said Brian Head, Joplin city attorney. Settlements hold back taxes from cell-phone companies By Melissa Dunson
mdunson@joplinglobe.com If it rings like a phone and it conveys voice like a phone, it’s probably a phone, said Brian Head, Joplin city attorney. And the courts agreed, encouraging settlements between cell-phone companies and numerous Southwest Missouri cities on years of back taxes owed. City councils of Joplin, Webb City, Carl Junction, Carthage, Neosho, Monett and Aurora all recently passed ordinances approving settlements with national cell-phone companies for two years of back taxes. The cell-phone companies sued the cities in an effort to recoup taxes they paid under protest. The companies asserted the cities didn’t have the right to tax wireless phone service, arguing their business was radio signals, not telephone signals. “There was a lot of debate on both sides, but it was a ridiculous point,” Head said. Joplin Head said Verizon Wireless agreed to pay Joplin $170,000 through the settlement reached in October, U.S. Cellular will pay $500,000 as of December, and AT&T/Cingular will pay $1.25 million due to the council’s action Jan. 7. Sprint/Nextel has reached a settlement with Joplin, Head said, but it has not been approved yet. Carthage Lynn Campbell, Carthage city clerk, said the council will approve a proposed AT&T/Cingular settlement for $169,147 at the Jan. 22 meeting. Verizon settled in October for $31,408 and U.S. Cellular settled for $48,485 in December. Campbell said Carthage had not received a settlement from Sprint/Nextel yet. She said Carthage is giving 5 percent of its settlement money to the Missouri Municipal League for its help in the lawsuit. Webb City Steve Garrett, city administrator at Webb City, and Troy Salchow, city attorney, said the council approved a settlement Jan. 7 with AT&T Mobility for $202,000. Verizon settled in October for $31,000, and U.S. Cellular settled in December for $57,000. 
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