Telecom Stuck With Washington Business Tax on Free Mobile Service (1)

Assurance Wireless failed to convince a Washington state appeals court that it is entitled to a $3.9 million refund of retailing business and occupation taxes on free wireless services for low-income consumers.

The company, formerly known as Virgin Mobile, provides low-income consumers with subsidized cellphone service under the Federal Communication Commission’s Lifeline program, administered by the Universal Service Administration Company. USAC reimburses Assurance $9.25 for each customer who has used the service within the last 30 days.

The state Revenue Department properly assessed B&O taxes on the funds Assurance received for its participation in the program, the ...