Yikes! Telephone Tax Was Illegal?

by Jack

Heard on the street: The City of Chico may be liable for an illegal tax imposed on it’s citizens a number of years ago. It has something to do with the City not having the legal authority to impose a city-wide tax on something regulated by the FCC.

You’ve probably heard about the proposed “cell phone tax” which if adopted will lower one utility tax and imposes another for the city to come out with a higher tax overall. However, the word is the original (phone) tax was illegal and a class action suit could be pending. If found to an illegal tax I would imagine a refund would be due everyone who has every paid it, and that could possibly run into the millions. But, at the moment my sources were unable to provide further details. I also heard the Chico Taxpayers Association has more on this on their CTA blog. I haven’t had a chance yet to meet with the members for the details.

Currently the City is having trouble cutting $900,000 to balance the budget, can you imagine what a class action lawsuit would do if it reversed many years worth of an illegal tax? If they were hit with several million in a class action lawsuit I’m pretty sure the City would have to file bankruptcy.

It’s been reported that the citizens in Chula Vista, CA. are suing over the same thing, is Chico next?

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10 Responses to Yikes! Telephone Tax Was Illegal?

  1. Libby says:

    Fine. Whatever. Contract for the filling of your own pot holes. And the only kids who get to play sports have parents who can pay the coach themselves.

    Pathetic.

  2. Joseph says:

    Maybe this might finally motivate people to stop electing politicians like Schwabbie, Hokum and The Grundler, and instead elect people who are fiscally responsible!

  3. juanita says:

    Jack, it IS illegal – could you change that headline? The reason they need pass this measure is that the current law is, in their words, “out of date,” it doesn’t allow them to take a cell phone tax, and they are anyway. AT&T collects it, and I think a couple of other “providers,” and hand it over to the city of Chico, just like they got SUED FOR in Chula Vista. And Don Sipple is suing cities all over California about this.

    Libby, I already do what you suggest, and I still pay the city. We need major restructuring Downtown, not more taxes.

    I find it interesting that Libby thinks it’s okay for the government to break the law.

  4. J Soden says:

    The power to tax is the power to destroy. Not sure who said that, but appropriate.

    Today’s version: The power to tax incorrecly is the power to destroy the $pendthrift$ in office.

  5. Toby says:

    Libby it is fascinating/scary how your mind works.

  6. Joseph says:

    The City of Chico may be liable for an illegal tax imposed on it’s citizens…

    Just shows how morally bankrupt our local politicians are and that they are thieves to the nth degree!

    What they should do is apology profusely to the public and promise to refund the money WITH INTEREST!

    Also, since this tax is illegal those who imposed it on us should be going to jail.

    Instead, they are such liars and thieves and con artists that they are going to convince the public that they are doing the public a favor by offering to lower the tax when in fact they are increasing the amount of tax most people will pay!!!!

    Talk about conning the people!

    These Chico politicians are amazing con artists!

    And of course the local media is either complicit or are clueless as they regurgitate what the local dictators tell them, i.e. see how wonderful we are offering to lower your phone tax.

  7. Joseph says:

    Jack, just what kind of bizarro world are we living in here?

    We have a city council that is trying to pass off a tax increase on an illegal tax as a tax decrease!!!!

    Now Jack, you have a lot of pull here. I bet if you marched down to the city council for their next meeting and got up there and told these rapscallions to apologise for this illegal tax, refund the money, promise never to do it again, and get rid of this ridiculous tax increase they plan to put on the ballot it would all be a done deal!

  8. Post Scripts says:

    Joseph, thank you for your trust. For that I will let you in on a little secret. I am on the board of the Butte Taxpayers Alliance and we are doing exactly what you suggest. We’re also very supportive of the Chico Taxpayers Association that has joined the fight to stop the new taxes along with the BTA. We shall all be lobbying the Council quite heavily to make the appropriate changes. We’re also backing very competent fiscal managers as candidates on the November ballot and if all goes well we should see a change from the irresponsible spenders to very intelligent management. The City of Chico has been without responsible leadership for too long and this current budget crisis proves it.

  9. Joseph says:

    I tell you Jack, we just can’t afford these rapscallions on the city council and in the bureaucracy.

    For years they’ve had tens of millions of RDA dollars to squander but now that the state has cut out that nonsense those days are over.

  10. Libby says:

    You fail to take my point. You’re not grousing about an illegal tax, you are grousing about a tax, just like always, and it’s pathetic.

    If you don’t like the way they spend the money, go raise some hell. That makes some sense.

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