Verizon to pay back taxes to cities

A number of communities in Southeast Missouri may get a windfall of cash from Verizon Wireless.

The money comes from a partial settlement in a class-action lawsuit filed by the Missouri Municipal League against six wireless phone services for back taxes. The suit, filed in 2001, sought to make wireless providers pay the same taxes and licensing fees as phone companies using land lines.

The wireless companies said because cell phones are "commercial mobile radio services," they were not subject to such taxes.

Cape Girardeau will receive $82,500, Jackson $76,595.08 and Scott City $11,304.55.

According to Cape Girardeau city attorney Eric Cunningham, several cities pursued separate agreements to put an end to the six-year lawsuit. In addition to paying back taxes and agreeing to pay annually in the future, Verizon agreed not to lobby to change state tax legislation for up to five years. Sprint and AT&T are negotiating similar agreements, Cunningham said.

Verizon also agreed to pay $5 million in attorney fees.

To be eligible for the money, each city must file a claim no later than Nov. 19.

The Cape Girardeau City Council voted unanimously Monday to accept the agreement.

According to the Missouri Municipal League, the checks won't be in the mail until 30 days after the being finalized in St. Louis County Circuit Court. That hearing is set for Dec. 20. As long as no city files an appeal, the payments should be postmarked before Feb. 21.

City manager Doug Leslie said the money would go into the general fund.

Many Missouri cities tax a percentage of the companies' gross receipts and will receive two years' back taxes. The city of Cape Girardeau charges a flat-rate license fee, which is capped at $27,500. In the settlement agreement, cities with flat licensing fees will be paid for the last three years.

pmcnichol@semissourian.com

335-6611, extension 127

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Who gets what

Verizon has agreed to pay back taxes to the following cities:Cape Girardeau: $82,500

Jackson: $76,595.08

Scott City: $11,304.55

Sikeston: $113,153.57

Caruthersville: $24,769.69

Chaffee: $24,807.31

Charleston: $16,686.87

Dexter: $73,576.24

Hayti: $7,646.85

Marble Hill: $2,811.87

New Madrid: $13,970.05

Perryville: $35,478.71

Poplar Bluff: $180,911.02

St. Louis: $3,369,15.02 ($1,945,269.71 paid earlier, under protest)