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News Release from Comptroller Susan Combs

Contact: Allen Spelce or R.J. DeSilva
512-463-4070

For Immediate Release
February 5, 2007

Statement From Texas Comptroller Susan Combs


Texas Comptroller Susan Combs today issued the following statement regarding Texas Attorney General Greg Abbott's action against Sprint:
"I am delighted that the Attorney General is taking positive, proactive steps to protect Texas consumers against Sprint's premature and legally questionable attempt to collect the revised franchise tax from its customers by charging a 'Texas Margin Fee Reimbursement.' First, the Legislature has not authorized such a reimbursement. Second, Sprint is charging its customers more tax than the company will be required to pay. And third, Sprint is asking for 'reimbursement' of a tax the company will not owe until 2008. We've contacted Sprint and they have not responded to our request. Whether it is a giant corporation or a small business, no company is permitted to overcharge its customers under the guise of a state tax."

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