- Associated Press - Thursday, August 13, 2015

LOS ANGELES (AP) - Los Angeles could pay up to $92.5 million to settle a lawsuit that said it illegally collected a telephone tax.

The Los Angeles Times (http://lat.ms/1f9GgoX ) says a judge on Thursday granted preliminary approval of a settlement.

The class-action suit, filed nearly nine years ago, contended a tax LA collected from telephone users was illegal because it was levied on services that weren’t subject to federal tax.

The settlement will grant refunds on telephone taxes paid during about a 2 ½-year period that ended in 2008.

A cap of $92.5 million was set. It’s unclear how many people and businesses are eligible for refunds or how many would apply for them.

The court order says about 1.6 million residents and 560,000 businesses were registered with the city during the period.

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Information from: Los Angeles Times, http://www.latimes.com/

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