City warns of Alltel’s improper tax billing

In August, the state Supreme Court ruled that a state law enacted last year to shield telephone companies from the tax – and associated lawsuits – was unconstitutional. The city tax is collected from Alltel, Nextel, Cingular, Sprint and AT&T.

Starting this month, Alltel began billing the 6 percent tax to residential customers – a practice allowed under federal law, according to a city news release issued Tuesday.

For more than 30 years, Springfield has levied the tax of gross receipts on companies that supply telephone and telecommunications services. Annual collections of about $2.5 million are deposited into the city’s general revenue fund to pay for basic government services and public works.

City officials who have received reports that Alltel is billing customers living outside Springfield emphasize that the tax only applies to those living inside the city. Customers outside the city who are being improperly billed for the tax should contact Alltel customer service at the number listed on their bill to have the fee removed.

City attorneys have asked Alltel’s general counsel to stop collecting the tax from customers living outside city limits, according to the release.

For more information, contact Springfield Assistant City Attorney Nancy Yendes at (417) 864-1645.