Ohio Appeals Court Strikes Down Grocery Tax

By: Associated Press
By: Associated Press

Columbus, Ohio (AP) -- An appeals court in Ohio says a state tax levied on grocery store sales is unconstitutional.

The state's 10th District Court of Appeals ruled Tuesday that taxes on grocery store sales violate a state constitutional prohibition on taxes on food that's not eaten where it's sold.

The Commercial Activities Tax went into effect in 2005 as part of a comprehensive tax overhaul package that also included reductions in personal income taxes.

The tax on grocers amounted to 26 cents per $100 in sales over $1 million.

The Ohio Grocers Association filed a lawsuit against the state in 2006.

Tuesday's ruling overturns a decision by a Franklin County judge that upheld the tax.

(Copyright 2008 by the Associated Press. All rights reserved.)

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