T-Mobile Whacked for $55M in Back Taxes

CLAYTON, Mo. (CN) – T-Mobile will pay $55 million to settle a class action over back taxes. The money will be divvied out to St. Louis County and 200 cities statewide.

     This is the last in a series of tax lawsuits filed since 2001 against cellular companies and AT&T for landline service. The companies, including T-Mobile, argued that the landline taxes did not apply to cellular service. The total amount to be paid to the various municipalities, including the T-Mobile settlement, is estimated to be between $400 million and $450 million.
     T-Mobile can pass $42 million of the judgment on to customers, the settlement states. Attorneys will split $3.09 million of the settlement.
     St. Louis County Court Judge Bernhardt Drumm gave the settlement preliminary approval. A hearing for final approval is set for Oct. 19.

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