August 3, 2012

Inside The Beltway 08/03/12

Following on a New York State suit filed against Sprint regarding an alleged $30 million in unpaid sales taxes connected to it wireless services, the U.S. Securities and Exchange Commission issued a subpoena for more information regarding those state and local taxes. Industry reports say the complaint centers on what proportion of a flat-rate calling plan can be taxed by the state in which a customer lives. While New York posits wireless carriers need to “collect and pay” sales tax based on the total monthly charge, Sprint says a state only can tax calls originating and terminating in that particular state. A statement from Sprint says in part: “Sprint is cooperating with the SEC in regards to its inquiries and we believe our practices with respect to state and local taxes on mobile wireless services are in compliance with applicable law. Because the New York Attorney General’s lawsuit and complaint is without merit, Sprint filed on June 14, 2012, to have the case dismissed and intends to continue defending the matter vigorously. The Attorney General's office claims New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. We intend to stand up for New York consumers' rights and fight this lawsuit”…The first meeting of the Advisory Committee for the 2015 World Radiocommunication Conference (WRC-15 Advisory Committee) is set for Aug. 9 at 9 a.m. at FCC headquarters. Earlier today, FCC Chairman Julius Genachowski named Scott Blake Harris as chair and Diane J. Cornell as vice chair of this committeem tasked with providing advice, technical support and recommended proposals on matters relating to the WRC-15.