Nick
10-27-05, 06:56 AM
An Ohio judge recently granted partial summary judgment in
favor of DirecTV and EchoStar in their suit challenging the
constitutionality of an Ohio sales tax imposed on satellite
TV service but not on cable offerings.
Judge Daniel T. Hogan of the Court of Common Pleas in
Columbus ruled that the five percent sales tax discriminates
against satellite TV companies.
Also, cable companies originally lobbied state lawmakers
that a tax on satellite TV would compensate town governments
for loss of franchise fees paid by cable operators. However,
the judge ruled that the sales tax on satellite TV could not be
justified as "compensating" for the loss of franchise fees that
cable companies pay (municipal) governments to use public
rights-of-way.
The judge did rule in favor of the state on several alternative
theories presented by the satellite TV companies. Nonetheless,
DirecTV and EchoStar said they are pleased with the result, and
the court ruling represents an important step forward in their
multi-state challenge to taxes on satellite TV programming.
DirecTV and EchoStar brought suit in 2003 challenging the
constitutionality of the Ohio sales tax, and have brought
similar constitutional challenges to tax issues in Florida,
Kentucky, North Carolina and Tennessee.
www.SkyReport.com - reprinted with permission
favor of DirecTV and EchoStar in their suit challenging the
constitutionality of an Ohio sales tax imposed on satellite
TV service but not on cable offerings.
Judge Daniel T. Hogan of the Court of Common Pleas in
Columbus ruled that the five percent sales tax discriminates
against satellite TV companies.
Also, cable companies originally lobbied state lawmakers
that a tax on satellite TV would compensate town governments
for loss of franchise fees paid by cable operators. However,
the judge ruled that the sales tax on satellite TV could not be
justified as "compensating" for the loss of franchise fees that
cable companies pay (municipal) governments to use public
rights-of-way.
The judge did rule in favor of the state on several alternative
theories presented by the satellite TV companies. Nonetheless,
DirecTV and EchoStar said they are pleased with the result, and
the court ruling represents an important step forward in their
multi-state challenge to taxes on satellite TV programming.
DirecTV and EchoStar brought suit in 2003 challenging the
constitutionality of the Ohio sales tax, and have brought
similar constitutional challenges to tax issues in Florida,
Kentucky, North Carolina and Tennessee.
www.SkyReport.com - reprinted with permission