TVBizwire

Cable Operators Win Key Decision as Ohio Supreme Court Declares Satellite Sales Tax Legal Dayton Daily News

Cable-television operators won a major victory on Monday when the Ohio Supreme Court ruled that a sales tax on satellite-TV customers doesn't violate the interstate commerce law, reports the Dayton Daily News.

Satellite-TV customers must pay a 5.5% sales tax, imposed as part of a budget-balancing tax package in 2003, the story says. But the state Legislature decided not to apply the tax to cable-TV operators, which instead pay local franchise fees in the 2% to 5% range.

Cable companies had argued that the satellite tax leveled the field, while satellite-TV companies had said the tax is an unfair burden and hinders fair competition, the article notes.