Judge upholds NY tax suit against Sprint Nextel

July 2, 2013

A New York judge has refused to dismiss the state attorney general's lawsuit claiming back sales taxes and triple damages from Sprint.

State Supreme Court Justice O. Peter Sherwood says the state has a valid basis for claims under state tax law, which imposes a 4 percent tax on aggregated mobile communications services.

The suit seeks $100 million in unpaid taxes since 2005 and the damages. Attorney General Eric Schneiderman says Sprint Nextel Corp. has improperly withheld about 25 percent of its monthly access fees for mobile calling plans from taxation based on the theory it doesn't owe taxes on the interstate portion.

Sprint said Monday that it will appeal and fight for New York consumers already paying some of the nation's highest wireless taxes.

Explore further: Senate shows support for Internet sales taxes

Related Stories

NY top court OKs tax on online sellers like Amazon

March 28, 2013

New York's highest court has ruled the state can collect sales tax from out-of-state retailers, rejecting claims by Amazon.com and Overstock.com that the tax violates the U.S. Constitution's Commerce Clause.

Sprint to listen to Dish offer

May 21, 2013

Wireless company Sprint Nextel Corp. says it can now let Dish Network Corp. see its books and talk with Dish to see whether its competing offer to buy Sprint is better than its current deal with Japan's SoftBank.

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...

No lens? No problem for FlatCam

November 23, 2015

How thin can a camera be? Very, say Rice University researchers who have developed patented prototypes of their technological breakthrough.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.