Sprint v. Dep’t of Revenue
The Department conducted an audit of Sprint finding their transmission services for its SprintNet X 25 and Frame Relay network were “network telephone services” subject to retail sales tax under statutory law. Sprint paid the assessment and filed a refund claim with the superior court. The superior court granted Department’s motion for summary judgment. Sprint appeals.
The Department argues that the statute is clear and that the services fall under “network telephone services.” Sprint wishes the court to interpret the statute with the subsequent amendments and taking into account contemporaneous federal regulations.
The court stated that the legislature’s intent in regards to this statue clearly meant to broadly define network telephone service. Additionally the statute has clear exclusions, which does not include those at issue in this case.
While amendments existed, the court is not in favor of retroactivity. They held that Sprint did not overcome the strong presumption in favor of prospective application. Thus, they find no err by the trial court and affirm.