Cities will benefit from AT&T settlement

Independence, Blue Springs, Grain Valley, Sugar Creek and Oak Grove were among more than 300 Missouri cities to have reached settlements that total $65 million for back gross receipts telephone taxes from AT&T.
St. Louis Circuit Judge Edward Sweeney gave preliminary approval Friday to a class action settlement involving the municipalities.
A final approval hearing is scheduled before Sweeney on Nov. 2.
Meanwhile, cities may either approve the settlement or opt out. If the settlement gets final approval, cities should get their checks in late December.
Under the class-action settlement, Independence would receive more than $2.4 million, Blue Springs would receive close to $570,000 and Grain Valley nearly $116,000.
Sugar Creek would receive close to $104,000 and Oak Grove’s take would be slightly more than $11,000.
In addition, Kansas City would receive $10.7 million and Lee’s Summit $1.4 million.
The settlement stems from a 2004 lawsuit where cities sued over gross receipts taxes on AT&T landline service.
The cities had argued that AT&T was underpaying telephone business taxes by excluding certain revenue items.
AT&T argued that the ordinances setting up the taxes did not cover certain revenue categories and that the company should not have to pay on those items.
The settlement says AT&T will not have to pay on access charges.