Washington Justices Will Review Telecom’s Business Tax Loss

The Washington Supreme Court will review whether Assurance Wireless was 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, asked the high court to review an appeals court ruling that the funds it received for participating in the Federal Communication Commission’s Lifeline program were subject to tax because they were treated as sales.

The program, administered by the Universal Service Administration Co., provides low-income consumers with subsidized cellphone service. USAC reimburses Assurance $9.25 for each customer who has used the service within the ...