Verizon Wireless S.D. tax suit thrown out

WASHINGTON-A South Dakota judge granted a state request to throw out a suit filed by Verizon Wireless that challenged a new tax on mobile-phone companies.

Circuit Court Judge Lori Wilbur issued her ruling from the bench last Tuesday. The 4-percent tax on gross receipts, passed last March, is designed to help balance the state budget.

Verizon Wireless, the nation’s No. 1 mobile-phone operator, and other cell-phone operators are facing similar taxes as financially strapped states look for revenue to erase budget deficits.