Judge: Satellite TV Tax Unconstitutional
A judge in the Ohio Court of Common Pleas, Franklin County, ruled Wednesday that a sales tax on satellite TV subscribers violates the U.S. Constitution’s Commerce Clause. After the decision, DIRECTV and EchoStar applauded the ruling saying the tide is turning on sales taxes that discriminate against satellite subscribers.

Ohio Judge Daniel Hogan’s decision established the satellite-specific taxes as unconstitutional and discriminatory as they undermine free and fair commerce between the states. In response, EchoStar and DIRECTV reiterated their positions that taxing satellite subscribers more than cable subscribers is “illogical (and) unfair because no group of consumers should be singled out for a heavier tax burden based solely on what technology they use, particularly when they are predominately rural or price-sensitive.”

Together the companies said Judge Hogan’s conclusions are not isolated, citing U.S. House Judiciary Committee Chair John Conyers’ (D-MI) recently introduced State Video Tax Fairness Act of 2007. The bipartisan-supported bill would prohibit states from taxing any pay-TV service differently from others.

“We believe state legislatures should heed Judge Hogan, Chairman Conyers, and an increasing number of public officials and eliminate discriminatory sales taxes for good,” the companies said in a statement.