Court sides with satellite TV providers in battle over tax

Author: Associated Press
Published:
MGN

TALLAHASSEE, Fla. (AP) – A Florida appeals court is ruling that the state’s communication services tax treats satellite TV providers unfairly.

The 1st District Court of Appeal ruled Thursday that the tax is unconstitutional because cable TV companies are taxed at a different rate than satellite TV companies. The lawsuit was filed by DirecTV and the company that operates the DISH Network.

The Florida Legislature first passed the communication services tax back in 2001. The ruling comes at the same time that legislators are considering a bill to cut the overall tax rate for both cable companies and satellite companies by the same amount.

The Department of Revenue had argued that the tax was fair because cable companies also pay local taxes authorized under the law.

But the court ruled that there was no guarantee that local governments would charge that tax.

The ruling was decided by a 2-1 margin.

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