Justia Communications Law Opinion SummariesArticles Posted in Supreme Court of Mississippi
Mississippi Dept. of Revenue v. SBC Telecom, Inc. et al.
At issue in this appeal was the computation of the broadband credit limits that a taxpayer may use against its franchise-tax and income-tax liabilities. During the tax periods at issue, AT&T Mobility II, LLC, and BellSouth Telecommunications operated telecommunications enterprises and made significant investments in broadband technology developments throughout Mississippi, generating Broadband Investment Credits (Broadband Credits) under Mississippi Code Section 57-87-5. BellSouth Mobile Data, SBC Alloy Holdings, New BellSouth Cannular Holdings, New Cingular Wireless Services, SBC Telecom, and Centennial were all direct or indirect corporate owners of AT&T Mobility II. The taxpayers here each filed a separate franchise-tax return and were included as affiliated group members in the combined corporate income-tax return filed on behalf of the affiliated group. The Mississippi Department of Revenue (MDOR) determined that the broadband credits the taxpayers had claimed had been improperly applied to an amount greater than the credit cap of 50 percent of the taxpayers’ tax liabilities according to Mississippi Code Section 57-87- 5(3) (Rev. 2014). The MDR disallowed portions of the broadband credits claimed by the taxpayers and assessed additional franchise taxes, interest and penalties to the taxpayers separately on several dates between December 22, 2014, and May 20, 2015. The taxpayers argue that each taxpayer is jointly and severally liable for the total combined income-tax liability of the affiliated group, therefore making the income-tax liability of each taxpayer the same as the total combined income-tax liability of the affiliated group. The chancellor granted summary judgment in favor of the taxpayers and ruled that the taxpayer’s tax liabilities under Chapters 7 and 13 of Title 271 of the Mississippi Code was the aggregate of the taxpayer’s separate franchise-tax liability and the total combined income-tax liability of the affiliated group. The Mississippi Supreme Court affirmed the chancellor's ruling on the credit-computation issue. "The plain and unambiguous language of Section 57-87-5 clearly limits broadband credits that a taxpayer may take in any given year to 50 percent of the aggregate of the taxpayers’ franchise-tax liability and the total combined income-tax liability of the affiliated group." View "Mississippi Dept. of Revenue v. SBC Telecom, Inc. et al." on Justia Law
AT&T Corp. v. Mississippi Department of Information Technology Services
The Mississippi Department of Information Technology Services (ITS) issued a Request for Proposals (RFP) for telecommunications services. After vendors responded, ITS selected the proposal submitted by Telepak Networks, Inc., d/b/a C Spire (C Spire) for a statewide voice and data network. AT&T Corp. (AT&T) protested the award, arguing that ITS’s award of the contract to C Spire was erroneous because C Spire’s proposal did not match the specifications set forth in the RFP. ITS denied AT&T’s challenge, and it appealed. The Chancery Court of the First Judicial District of Hinds County affirmed, finding that ITS’s award of the contract to C Spire was not arbitrary and capricious or unsupported by substantial evidence. AT&T appealed. After review, the Mississippi Supreme Court held that the ITS decision that C Spire’s proposal matched the RFP’s specifications was supported by substantial evidence and was not arbitrary and capricious. Therefore, we affirm. View "AT&T Corp. v. Mississippi Department of Information Technology Services" on Justia Law
Cellular South, Inc. v. BellSouth Telecommunications, LLC
In February 2006, BellSouth Telecommunications, Inc., and BellSouth MNS, Inc., filed an ex parte motion for a protective order in the Chancery Court, seeking to protect certain documents. The documents fell into the following four categories: (1) an August 2005 proposal submitted by BellSouth to the Mississippi Department of Information Technology Services in response to the Department’s request for telecommunications products and services; (2) the Telecommunications Products and Service Agreement between BellSouth and the Department dated November 2005; (3) correspondence between BellSouth and the Department related to the first two documents; and (4) related BellSouth marketing materials. Following legislative amendments in 2015 to the Mississippi Public Records Act of 1983 and to Mississippi Code Section 25-1-100, CellularSouth sought production of the proposal and the contract between the Department and BellSouth. After review, the Supreme Court found the chancery court erred in its interpretation of the amended Mississippi Code Section 25-61-11 when it entered an order continuing to protect the contract from production. Furthermore, the Court held that, because the rights in question in the case sub judice were created by statute, the Public Records Act, as amended, governed this dispute. Accordingly, the Court reversed and remanded for further proceedings. View "Cellular South, Inc. v. BellSouth Telecommunications, LLC" on Justia Law