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: Sprint Nextel shareholders approve Softbank deal

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

Forget oil, Russia goes crazy for cryptocurrency

August 16, 2017

Standing in a warehouse in a Moscow suburb, Dmitry Marinichev tries to speak over the deafening hum of hundreds of computers stacked on shelves hard at work mining for crypto money.

Researchers clarify mystery about proposed battery material

August 15, 2017

Battery researchers agree that one of the most promising possibilities for future battery technology is the lithium-air (or lithium-oxygen) battery, which could provide three times as much power for a given weight as today's ...

Signs of distracted driving—pounding heart, sweaty nose

August 15, 2017

Distracted driving—texting or absent-mindedness—claims thousands of lives a year. Researchers from the University of Houston and the Texas A&M Transportation Institute have produced an extensive dataset examining how ...

0 comments

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.