Columbus, Ohio (AP) -- The Ohio Supreme Court has ruled that the state can levy a broad-based business tax on the sale of food by grocers.
The 6-1 ruling Tthursday saves the cash-starved state budget from what could have been a $188 million hole without the commercial activities tax applied to food that's sold and taken off store premises to eat.
The Ohio Grocers' Association argued earlier this month that the tax shouldn't be levied on food sales because the state constitution bans sales taxes on food taken elsewhere to be consumed.
The association says the business tax acts like a sales tax because its amount depends on how much food is sold.
The court rejected that argument.
(Copyright 2009 by the Associated Press. All rights reserved.)
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