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Satellite TV Firms File Suit Against Ohio Tax

By | June 27, 2003

      EchoStar Communications [Nasdaq: DISH] and Hughes Electronics’ [NYSE: GMH] DirecTV unit have filed a lawsuit against the state of Ohio for enacting a 6 percent sales tax on satellite TV service. The companies noted that the sales tax was not imposed on local cable TV services, even though satellite television companies compete with incumbent cable operators in Ohio.

      The suit seeks a declaratory judgment holding that the satellite-only tax is unconstitutional and requests a permanent injunction against enforcement of the tax.

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