ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, December 3, 1994                   TAG: 9412050080
SECTION: BUSINESS                    PAGE: A8   EDITION: METRO 
SOURCE: CLAUDINE WILLIAMS
DATELINE:                                 LENGTH: Medium


CONTEL CELLULAR FINDS THIS PROBLEM TAXING

When James Grisso opened his cellular-telephone bill this week, he was a bit surprised.

Included was a letter from Atlanta-based Contel Cellular Inc. saying Roanoke had begun imposing a tax on the phone service. Grisso knew for sure that was wrong; he's the city's finance director.

It was Roanoke County's Board of Supervisors that in June amended its utilities service tax to charge cellular-phone customers 10 percent of their monthly bills, up to $3. The tax took effect with September billings.

Contel evidently had failed to recognize in its mailings that some zip codes, such as 24012, 24014 and 24018, include sections of both Roanoke and Roanoke County.

"People are paying a tax they may not have to pay," Grisso said. "I think a lot of people who live in the city but have an overlapping zip code will be charged the tax."

Roanoke County has received about 50 calls about the insert, said Wayne Compton, commissioner of revenue.

"People are telling us that they are not getting cooperation from the phone company," Compton said.

But Friday, Contel Sales Manager Hiram McDaniel said customers who had been incorrectly taxed will receive credit on their next bill.

The company will send a letter to clarify that it is the county that's imposing the tax, he said. Also, Contel customers who were billed by mistake can call the customer service department in Atlanta at (800) 333-4004.

Contel's competitor, Cellular One, sent its customers a form asking them to indicate whether they live in the city or the county, said Jake Casey, regional manager. Customers who said they lived in the city were not charged. Those who did not respond were charged the tax, he said.



 by CNB