Special to the Director's Cut Blog
By Doug Whiteman, Associated Press
COLUMBUS, Ohio - The Ohio Supreme Court has rejected a challenge to a state sales tax that applies to satellite TV but not cable.
The Ohio Department of Taxation says Monday's ruling is not surprising because similar tax discrepancies have been upheld in other states.
Ohio's highest court ruled 5-2 against satellite companies that complained the tax is unfair. The court affirmed a lower court's decision that the tax does not amount to unconstitutional discrimination because it's based on the different nature of the companies' business activities.
Tax department spokesman John Kohlstrand says the tax generated $54 million for financially struggling Ohio in the most recent fiscal year.
Attorneys for the satellite industry indicated earlier that an appeal was likely.
