Springfield sues DOR, sets new telephone rate

Missouri cities face an April 1 deadline to adopt new telecommunications tax rates or risk voiding existing phone taxes. That deadline was approved last year as part of House Bill 209.

But the department has not received all necessary tax information and has posted on its Web site a deadline extension to May 15. Some cities are concerned, though, that the extension could be challenged in court and, if tax rates are not set by April 1, any revenue could be invalidated later.

Springfield City Council held an emergency meeting Thursday morning to set a 3 percent telephone tax rate, down from the city’s previous 6 percent rate, in case the deadline extension is determined to be wrong.

“We wanted to make sure we had it in our ordinance, so that we didn’t have any chance of making this tax void,” said Louise Whall, director of public information for Springfield. “This is millions and millions of dollars a year for municipalities across the state.”

The city of Springfield receives about $2.5 million in telephone fees and taxes annually. That money goes into the general operating fund to provide basic government services, such as public works and public safety.

Other Missouri cities in the suit include Kansas City, Florissant, Kirkwood, Aurora, Monett, Clayton, Rock Hill, Ellisville and Olivette. A hearing on the suit is scheduled for 3 p.m. today in Cole County Circuit Court, where the case was filed.[[In-content Ad]]