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CenturyLink sues cities including Columbia over tax [Columbia Daily Tribune (MO)](Columbia Daily Tribune (MO) Via Acquire Media NewsEdge) Columbia is among the 117 Missouri cities named as defendants in lawsuits filed by CenturyLink claiming that local governments are improperly levying taxes on the Louisiana-based telecommunications provider and calling for cities to refund tax payments. In its petition, CenturyLink argues that Missouri cities are levying taxes intended for local telephone service providers on revenue the company earns for products it argues are beyond the realm of what could be considered local telephone service. Those include directory, voicemail and long-distance calling services. A lawsuit filed this month in Boone County Circuit Court also names city Finance Director John Blattel in his official capacity with the city, as well as Ashland, Centralia and Hallsville and the city clerks for each of those three cities in their official capacities. Columbia levies a 7 percent license tax on annual gross receipts of "every person engaged in the business of supplying telephone service in the city." Ashland, Centralia and Hallsville levy similar taxes. In February, CenturyLink started making monthly, under-protest tax payments to the city of Columbia, which as of the time of the filing of CenturyLink's petition totaled nearly $69,000. Columbia City Counselor Nancy Thompson said yesterday that city officials had not yet reviewed CenturyLink's petition and declined to comment on the lawsuit. CenturyLink's lawsuits were filed as Missouri cities fight out a class-action lawsuit they filed against CenturyLink in St. Louis County Circuit Court seeking delinquent tax payments from the company. Richard Sheets, deputy director of the Missouri Municipal League, said the organization is beginning to explore ways it can assist Missouri cities in protecting themselves from CenturyLink's lawsuits. He said the legal dispute between Missouri cities and CenturyLink resembles disputes raging throughout the country as telecommunications technology quickly advances and antiquated tax systems struggle to keep up. "I kind of see it as now we're confronting new technology," Sheets said. In 2005, the Missouri General Assembly passed a bill that would lower local taxes on landline providers while allowing local governments to increase taxes on wireless providers. As part of the passage of the law, local governments would not be able to sue telecommunications companies for back tax bills. In accordance with the new state law, the Columbia City Council passed an ordinance lowering that tax rate to 3 percent, but the tax cut was repealed when the Missouri Supreme Court deemed the new state law unconstitutional. This article was published in the Friday, May 31, 2013 edition of the Columbia Daily Tribune with the headline "Lawsuit targets cities' tax: CenturyLink sues Columbia, others." [copyright] 2013 Columbia Daily Tribune . All rights reserved. This material may not be published, broadcast, rewritten or redistributed. (c) 2013 ProQuest Information and Learning Company; All Rights Reserved. |