Ohio Supreme Court Gives Green Light for Satellite TV Tax

It has been reported that the Ohio Supreme Court has upheld a state sales tax for satellite TV providers that cable competitors do not have to pay. The court has rejected arguments from the satellite industry that the tax is unfair and unconstitutional.

In the 5-2 decision released on Monday, the court ruled that the 2003 tax does not violate the US Constitution’s Commerce Clause, as the tax is based on differences between the nature of businesses and does not favor in-state interests as the expense of out-of-state interests.

It has been reported that Ohio has collected about $44 million a year since imposing the 5.5% sales tax on satellite TV as part of a budget-balancing tax package in 2003.

At the time, the legislator chose not to impose the tax on cable operators, which pays local franchise fees that range from 2-5%.

Ohio had drawn support in the case from 15 other states, the National Conference of State Legislators and the National Governors Association, among others.

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