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Portland AT&T customers to get refunds from wrongly collected energy tax

October 16, 2019

Cell phone bill taxes-edit1a

The only thing that comes close to the chaos that is tax law is a telephone bill. Especially a cell phone bill.

In addition to the phone charges — Remember those? That's when you use your device to talk to another person. — there are, among lots of other line items, things such as data charges, text charges and, of course, taxes.

My monthly mobile phone bill is six pages long. One of those pages, thankfully sent digitally, is full of taxes and user fees. That's an excerpt of some them in the photo at the top of this post.

The taxes change periodically, but I must confess I don't worry about them if they are about the same each month.

In fact, I hadn't looked at them for a while until I heard about what happened to some wireless customers in Portland, Oregon.

Tax transfers common: AT&T passed along to some of its customers a 1 percent Clean Energy Surcharge that the City of Portland instituted earlier this year.

The money goes to the Portland Clean Energy Community Benefits Fund, which was created by a local ballot measure and is expected to bring between $54 million and $71 million to boost green jobs and other environmental projects.

Even though it's annoying to consumers, all sorts of business taxes generally flow down the distribution chain, eventually ending up in the final charges paid by consumers.

At least in Portland's case, it's a tax approved by voters for what most believe to be worthy eco-friendly goals.

So sounds good, right?

It would be except for one thing.

AT&T doesn't actually have to pay this new corporate tax.

To borrow a reaction from the U.S. Department of Energy Secretary, "Oops."

Wrongly collect energy fee: The Portland law assessing the 1 percent energy surcharge exempts utilities such as AT&T.

Like the many taxes on my bill here in Austin, Texas, the charge wasn't that much.

An employee of The Oregonian newspaper and its digital outlet OregonLive reported being charged 23 cents in April, 7 cents in May and 5 cents every month after until September.

That person, like so many of us who are used to seeing various phone bill taxes, probably knew of the Clean Energy Surcharge, which was the description shown on the bill, and really didn't think much more about the added, albeit fluctuating, taxes.

But AT&T should have known better. It didn't.

"The city only recently notified us that we are exempt from the tax," said AT&T via a statement on the matter, according to The Oregonian. "We will be issuing refunds to our customers."

It also could be issuing more.

Class action lawsuit filed: A class action lawsuit has been filed in Multnomah County Circuit Court alleging AT&T engaged in unlawful trade practices and unjust enrichment due to the charges.

"In an effort to profit and to obtain an unfair advantage over its competitors, AT&T misled thousands of Oregon customers into paying unlawful five cent surcharges that AT&T was not permitted to collect," according to the lawsuit. "AT&T only said it would refund the money it wrongfully collected from Oregon customers after AT&T got caught."

The legal action is seeking $200 for each wrongly charged customer in penalties and interest as required by Oregon's unlawful trade practices act.

The bottom line here for all of us, regardless of which wireless carrier we use, is that we need to pay attention to our bills and those pesky taxes. In fact, such attention is a good idea for all accounts.

Not only could it save you some improperly charged fees, taxes or other items, but it will ensure that no one is using your identity to buy things on your account.

You also might find these items of interest:

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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