Ohio Supreme Court OKs State's Satellite TV Tax

[The Straight Story]

Ohio Supreme Court OKs State's Satellite TV Tax

The Ohio Supreme Court has upheld a state sales tax for satellite TV providers that cable competitors don't have to pay.

COLUMBUS, Ohio (AP) - The Ohio Supreme Court has upheld a state sales tax for satellite TV providers that cable competitors don't have to pay.

The 5-2 decision released Monday rejects a challenge by satellite providers raising fair competition issues. The court ruled that the 2003 tax didn't violate U.S. commerce law because the tax is based on differences between the nature of the businesses and doesn't favor in-state interests at the expense of out-of-state interests.

The case was brought by DirecTV Inc. and EchoStar Satellite Corp. The satellite industry has challenged similar tax discrepancies in several other states, and attorneys said earlier that the Ohio ruling either way would likely be appealed to the U.S. Supreme Court.

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