Verizon Wireless and has finally settled disputes with several hundred municipalities in Missouri over tax rates charged to wireless carriers. Several carriers have been arguing that city governments were trying to implement a new tax, which under state law requires the approval of the people, but local authorities have argued that the fees they are trying to charge carriers are the same taxes long paid by wired phone companies.

Under the terms of the settlement Verizon Wireless has agreed to pay back taxes of nearly $30 million to several hundred municipal governments throughout the state. The carrier also agreed to tax rates ranging from between less than 1% to 11% of their customers' bills. The carrier passes these fees on to customers as surcharges on their bills. Of the $30 million Verizon is obligated to pay, the carrier has put aside $12.5 million in an escrow account. Local governments had asked for another eight years worth of back taxes, but Verizon Wireless has avoided those charges.

Meanwhile, Sprint Nextel has reached an agreement with the city of St. Louis, but still has more than 150 suits to settle with other local governments around the state. Under the terms of its agreement with St. Louis, the carriers tax rate will decrease to 7.5%, from 10%.

Sprint Nextel says it still disputes the legality of the local governments attempts to tax wireless carriers, but spokesman John Taylor told the Dow Jones Newswire "We also recognize that it's in the interest of our customers, our shareholders and the cities to resolve these disputes on terms that are reasonable and fair."

AT&T is also involved in many of the same suits, but has yet to reach a settlement.