Local cities will receive portion of $50M phone company settlement

AT&T will be paying out more than $50 million in back taxes following a lawsuit that dealt with the revenue base of the local gross receipts tax on telephone companies. Staff photo by George Anderson

Several Missouri cities will be receiving a total of $50 million in back taxes from AT&T including Kennett, Holcomb, Senath, and Cardwell, due to the settlement on the AT&T landlines lawsuit that dealt with the revenue base of the local gross receipts tax on telephone companies.

According to Missouri officials, under the settlement AT&T will pay approximately $50 million in back taxes and, in the future, pay approximately 35 percent more in local gross receipts taxes. The officials added that each affected city will have to adopt an ordinance accepting the settlement and file a form agreeing to the claim amount.

Cities could receive checks for the back taxes by the end of the year, the officials noted.

Local cities have been awarded different amounts that include Kennett receiving $192,496.62, Holcomb receiving $1,400.83, Senath receiving $21,527.96, and Cardwell receiving $3,452.20, according to documentation on the mocities' Web site.

Kennett Mayor Roger Wheeler, Sr., said that the funds, when received, will go to the general revenue fund.

"I hope the city will be conservative with the funds and put them in a contingency fund to use wisely," Wheeler said.

Cardwell City Clerk, Mary Vaughn, noted that the City of Cardwell has received no notification of receiving the funds at this time. She added that once notification is received the city will develop a plan to use the funds.