AT&T settles tax cases for $65 million

Monday, June 29, 2009 | 8:42 a.m. CDT; updated 12:33 p.m. CDT, Monday, June 29, 2009

ST. LOUIS — A St. Louis Circuit judge has given preliminary approval to a $65 million settlement between AT&T and hundreds of Missouri local governments.

More than 300 cities sued the telephone company in 2004, claiming AT&T was not paying enough gross receipts taxes by excluding certain types of revenue. St. Louis County also sued as it is the only county in the state that imposes those taxes.

AT&T argued that the laws creating those taxes didn't cover those types of revenue.

Under the class-action settlement, approved Friday, the company will pay the back taxes and will pay those in the future. It signed a separate $4.6 million settlement with St. Louis County.

A final approval hearing is scheduled for Nov. 2. Cities can either accept the settlement or opt out.


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