MCI Communications Services, Inc. v. City of Eugene

MEMORANDUM **

Appellants MCI Communications Services, Inc. and MCIMetro Access Transmission Services LLC (collectively “MCI”) appeal the district court’s dismissal of their complaint for lack of subject matter jurisdiction, arguing that the court erred in concluding that the City’s telecommunications registration fees are “taxes” for purposes of the Tax Injunction Act, 28 U.S.C. § 1341 (“TIA”). 1 MCI argues that the court also erred dismissing its challenge to the “non-fee” provisions of the City’s telecommunications ordinance as being inextricably entwined with MCI’s challenge to the fee provisions. We have jurisdiction of MCI’s appeal pursuant to 28 U.S.C. § 1291 , and we affirm in part and vacate and remand in part.

We review de novo the district court’s Rule 12(b)(1) dismissal of plaintiffs’ challenges to the City’s telecommunications ordinance. Wilbur v. Locke, 423 F.3d 1101, 1109 (9th Cir.2005).

1. The district court dismissed MCI’s claim for declaratory and injunctive relief against enforcement of Eugene, Oregon’s Ordinance No. 20083 for lack of jurisdiction because it concluded that the fee of two percent of gross revenue charged to telecommunications providers owning…