[Satellite TODAY 12-29-10] Cable companies won a major court battle Dec. 27 when the Ohio Supreme Court issued a ruling that the state’s 5.5 percent sales tax on satellite TV services does not violate constitutional interstate commerce laws.
    The deal is a defeat for U.S. satellite TV companies, which argued that the sales tax is unfair and hinders competition. The satellite industry also claimed that the ruling prevents the state from collecting millions in tax revenue from cable customers while penalizing satellite customers. Cable argued that the tax promotes competition and levels the playing field.
    The sales tax on satellite TV was imposed as part of a budget-balancing tax package in 2003. The tax does not apply to cable operators, which pay local franchise fees ranging from 2 to 5 percent.