The ordinance authorizes a $3,660,000 settlement with TPx Communications over allegations of under-collecting taxes owed under the Access Line Tax Ordinance. As part of the settlement, TPx must adhere to specific tax collection and remittance practices going forward, unless laws change significantly.
Ordinance authorizing settlement of the lawsuit filed by the City and County of San Francisco ex rel. Roger Schneider against U.S. Telepacific Corp., dba TPx Communications (“TPx”) for $3,660,000; the lawsuit was filed on January 29, 2020, in San Francisco Superior Court, Case No. CGC-20-582552; entitled City and County of San Francisco ex rel. Roger Schneider v. AT&T Corporation, et al.; the lawsuit involves allegations that TPx and other telecommunications companies knowingly under-collected and under-remitted amounts due under the Access Line Tax Ordinance in violation of the California False Claims Act; other material terms of the settlement are that TPx will collect and remit access line taxes in a certain manner in the future absent a material change in the law.
How it got here
The legislation originated from a lawsuit settlement involving U.S. Telepacific Corp. regarding underpayment of access line taxes.
The City and County of San Francisco, ex rel. Roger Schneider, filed a lawsuit against U.S. Telepacific Corp. and other telecommunications companies for under-collecting and under-remitting access line taxes.
Supervisor Fielder requested that the settlement matter be considered urgent and presented to the full Board as a Committee Report.
The Government Audit and Oversight Committee recommended the ordinance for settlement of the lawsuit to the Board of Supervisors.
The Board of Supervisors passed the ordinance on first reading, authorizing the settlement of the lawsuit for $3,660,000.
The Board of Supervisors finally passed the ordinance, completing the legislative process for the settlement.
The Mayor approved the ordinance, finalizing the settlement agreement with TPx Communications.
Reconstructed from attached documents & the official record
The ordinance authorizes a $15.4 million settlement with AT&T over allegations of underpayment of access line taxes. It also requires AT&T to collect and remit these taxes correctly in the future, unless laws change significantly.
