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Ohio Supremes Uphold 5.5% Satellite Tax
DirecTV, Echostar lawsuit dies with a 5-2 vote
by Karl Bode Thursday 30-Dec-2010 tags: legal · prices · business · consumers · DIRECTV · Dish Network
Back in 2003, the state of Ohio decided to pass a law that required satellite companies pay a 5.5 percent sales tax, though the law excluded cable operators -- who pay local franchise fees ranging from 2 percent to 5 percent. The state has collected about $44 million a year since imposing the tax, and satellite operators have been fighting the tax every year since. DirecTV and Echostar sued to have the taxes overturned, arguing that the tax amounted to local cable protectionism, since cable operators had local physical presences. The Ohio Supreme Court this week voted 5-2 against Echostar and DirecTV, Justice Terrence O'Donnell declaring the tax "does not favor in-state interests at the expense of out-of-state interests."


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