Telecom Ruled Ineligible for $900,000 State Sales Tax Refund

A telecommunications company won’t get a sales and use tax refund of more than $900,000 because providing free phones to customers doesn’t satisfy tax exemption eligibility, a West Virginia appeals court said.

Shenandoah Personal Communications LLC claimed that it was eligible for the direct use tax exemption because the free phones provided to customers it acquired from another company were used for communication that was integral to the company. The court disagreed, finding that the phones were used for marketing instead, which falls outside of the exemption granted by W. Va. Code § 11-15-2.

The former Sprint affiliate ...