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 L.A. Telephone Tax Class Action Lawsuit Proceeds in Court
By Kimberly Mirando
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A unanimous ruling by the California Supreme Court has allowed a class action lawsuit to proceed against the city of Los Angeles that will potentially refund hundreds of millions of dollars in telephone taxes to residents.
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The L.A. telephone tax class action lawsuit was filed in 2006 against the city of Los Angeles for allegedly illegally charging taxes on telephone users’ phone bills. During the years at which the class action lawsuit is aimed, the city charged telephone users a 10% tax on their phone bills. City voters later approved the tax, but lowered it to 8%.
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The ruling — which upheld the right of citizens to bring class action lawsuits against municipal governments for collection of allegedly illegal taxes — will affect similar lawsuits filed against Los Angeles County and the cities of Long Beach and Chula Vista. Like the L.A. phone tax class action lawsuit, the lawsuits claim the governments in those jurisdictions illegally taxed telephone users.
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A lawyer representing L.A. taxpayers in the phone tax class action lawsuit said that as a result of the California Supreme Court’s ruling, “It’s possible we will consider bringing actions against other jurisdictions.
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Updated August 3rd, 2011
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