Hattis Law Files Lawsuit Against California Board of Equalization to Revoke Illegal Mobile Phone Sales Tax

November 19, 2015

Today Hattis Law filed a lawsuit against the California Board of Equalization to revoke Regulation 1585, an illegal sales tax on mobile phones bundled with service contracts that has cost California consumers hundreds of millions of dollars in overpaid taxes. (Read the Complaint Bekkerman et. al. v. California Board of Equalization.)

Most Californians have paid too much for their mobile phones due to this unlawful sales tax invented by the Board in 1999. Regulation 1585 imposes a sales tax on “phantom” commission payments which wireless carriers do not pay to their corporate owned or controlled stores. Every Californian who has purchased a mobile phone with a service contract in a carrier-owned store (e.g., the Verizon Wireless store, the AT&T store, the T-Mobile store, the Sprint Store) has been a victim.

Hattis Law filed this lawsuit on behalf of four California consumers to challenge and revoke the Board’s wrongfully enacted and illegal Regulation 1585. Once the Court revokes the regulation, Hattis Law intends to prosecute a class action lawsuit to pursue refunds on behalf of millions of California consumers who have been forced to bear the brunt of this unlawful tax.

Hattis Law’s co-counsel in the case are the Law Offices of Tony Tanke, and Jeffrey Burke of the Burke Law Group.