Friday, December 07, 2012

Supreme Court: business tax on fuel sales is unconstitutional

Gongwer Ohio is reporting:

The Ohio Supreme Court has ruled that the application of the commercial activity tax to motor vehicle fuel sales is unconstitutional.

The 6-1 ruling will only apply to fuel sales made after today’s decision.

The groups challenging the tax said it unduly diverted $140 million annually from public highway purposes to the state’s general revenue fund.

Justice Robert Cupp wrote in the court’s majority decision that the CAT on fuel sales violates the Ohio Constitution’s ban on using fuel tax revenue for non-highway purposes.

Justice Terrence O’Donnell dissented without opinion.

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