Tax News

CCH (cch.taxgroup.com) reports:

The Court of Common Pleas for Franklin County, Ohio, has ruled that the Ohio commercial activity tax (CAT) does not violate the state constitution. The court held the CAT is a franchise tax, which is a type of excise tax, which is imposed on the privilege of doing business in the state, and is not an excise tax that is "levied or collected upon the sale or purchase of food." A group of taxpayers, led by the Ohio Grocers Association, had challenged the CAT on the basis that it was really an excise tax imposed on the sale of food, food ingredients, and packaging, and thus violated Secs. 3(C) and 13 of Article XII of the Ohio Constitution.