The court of appeals held that cellphone prepaid service providers were obligated to collect and remit a fee. The fee, imposed by a 1997 statute, required wireless providers to collect 50 cents per month from each subscriber. A 2010 statute assesses the fee on prepaid wireless customers. The two statutes are either ambiguous, meaning they must be construed narrowly in favor of the taxpayer, or they are unambiguous, meaning prepaid customers are impermissibly double-taxed. The court of appeals' judgment is reversed. Texas Supreme Court, No. 11-0473, 04-05-2013.
Tracfone Wireless Inc. v. Commission on State Emergency Communications
Tx. Sup. Ct.
April 9, 2013