Ahead of the Senate hearing on “Offshore Profit Shifting and the U.S. Tax Code,” I released a report reminding us that contrary to the perception created by these types of political spectacles, corporations pay a...
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- New Podcast on the Legal Fight over Telephone Taxes
New Podcast on the Legal Fight over Telephone Taxes
This week I spoke with attorney Timothy Mathews of the law firm Chimicles & Tikellis for the Tax Policy Podcast. We discussed the case of Ardon v. City of Los Angeles, in which the plaintiff is challenging an illegally collected telephone tax in the California courts.
While it hasn't made a lot of headlines nationally, the case could have a big impact on Angelenos, according to the LA Daily News' Kelly Cavanaugh:
Ardon is the lead plaintiff in a class action lawsuit challenging L.A.'s telephone users tax, which appears on your phone bill every month. If he wins the case, Ardon and virtually every Angeleno with a home phone could be able to demand a refund, and the city could be on the hook for as much as $750 million.
Tim emphasizes in the interview that the case is only challenging the collection of part of that total, but because the case has been hung up on a challenge to its class-action status, they're only now going through the evidentiary process that will determine how much of the total is subject to their challenge.
For more on the case, see Tax Foundation Fiscal Fact No. 234, "Permitting Class Refund Actions Protects California Taxpayers Against Illegal Taxes: Ardon v. City of Los Angeles" and a recent blog post updating the most recent developments here.
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