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US WEST COMMUNICATIONS v. CITY OF EUGENE

(CC 16-98-01463; CA A105859; SC S49254).

81 P.3d 702 (2003)

336 Or. 181

US WEST COMMUNICATIONS, INC., Petitioner on Review, v. CITY OF EUGENE, an Oregon municipal corporation, Respondent on Review.

Supreme Court of Oregon, En Banc.

Decided December 18, 2003.

Attorney(s) appearing for the Case

David R. Goodnight, of Dorsey & Whitney LLP, Seattle, Washington, argued the cause for petitioner on review. On the briefs were Lawrence Reichman, Elizabeth Schwartz, and Julia E. Markley, of Perkins Coie LLP, Portland.

Jerome S. Lidz, of Harrang Long Gary Rudnick P.C., Eugene, argued the cause for respondent on review. With him on the briefs were William F. Gary, Eugene, and Linda J. Kessell.

KISTLER, J.

The primary question this case presents is whether a city may impose more than a seven-percent privilege tax on telecommunications carriers. We agree with the Court of Appeals that it may. We disagree, however, with the Court of Appeals' decision to reach a subsidiary issue—whether the statutes governing the Public Utility Commission (PUC) preempt cities from regulating telecommunications carriers. Accordingly, we affirm the Court of Appeals decision...

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