Texas Owes Virgin, TracFone $2.3M Over Improper 911 Tax

Law360, Houston (April 5, 2013, 4:59 PM EDT) -- Texas’ highest court on Friday ruled that the state owes TracFone Wireless Inc. and Virgin Mobile USA Inc. a $2.3 million refund for emergency services fees levied on the companies’ prepaid cell phones, because the tax did not apply at the time of collection.

The Texas Supreme Court held that a 1997 law imposing a $0.50 monthly fee on cell phone users to fund the state’s 911 services only authorizes the state to assess the tax on subscribers who pay a monthly bill.

“In this case,...
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