Virgin Mobile, TracFone Target 911 Tax In Texas High Court

Law360, Dallas (October 17, 2012, 2:39 PM EDT) -- TracFone Wireless Inc. and Virgin Mobile USA Inc. on Wednesday told the Texas Supreme Court they’re entitled to a refund of a state tax on their prepaid cellphones because a fee for emergency services applied only to traditional wireless plans.

The companies say a 1997 law imposing a $0.50 monthly fee on cellphone users to fund the state’s 911 services didn’t contemplate the business model for prepaid phones and should never have been charged. They contend a 2009 revision to the law, specifically addressing prepaid phones,...
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