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Supreme Court OKs taxing satellite TV higher than cable

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Satellite-television service can be taxed at a higher rate than cable TV, the Florida Supreme Court decided Thursday.

Satellite companies had challenged the state’s 16-year-old Communications Services Tax (CST), which now taxes cable service at 4.92 percent and satellite at 9.07 percent.

Those concerns, led by DirecTV, said that difference was unconstitutional and asked for a refund.

But the high court reversed the 1st District Court of Appeal’s 2-1 decision, which said that taxing the two services differently is unconstitutional.

Then-1st DCA Judge Simone Marstiller, in her dissent, had said there is no discriminatory purpose in the CST because satellite and cable providers are not “similarly situated entities.”

“There is no evidence from the text of the statute that it was enacted with a discriminatory purpose,” said Thursday’s opinion by Justice Peggy A. Quince and joined by the other justices. New Justice C. Alan Lawson didn’t participate in the decision.

“Consequently, the (satellite TV companies) are not entitled to a refund of the taxes paid,” it added.

During oral argument last year, Justice Barbara Pariente had noted that “in the end, we’re really talking about the customer that either gets screwed or helped … It all gets passed on.”

A spokesman for AT&T, which now owns DirecTV, declined comment.

The case is Florida Department of Revenue, et al. vs. DirecTV Inc., et al., no. SC15-1249.

Before joining Florida Politics, journalist and attorney James Rosica was state government reporter for The Tampa Tribune. He attended journalism school in Washington, D.C., working at dailies and weekly papers in Philadelphia after graduation. Rosica joined the Tallahassee Democrat in 1997, later moving to the courts beat, where he reported on the 2000 presidential recount. In 2005, Rosica left journalism to attend law school in Philadelphia, afterwards working part time for a public-interest law firm. Returning to writing, he covered three legislative sessions in Tallahassee for The Associated Press, before joining the Tribune’s re-opened Tallahassee bureau in 2013. He can be reached at jim@floridapolitics.com.

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