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OSCPA, CAT coalition files amicus brief in Grocers Association challenge of the CAT

A coalition of business groups led by OSCPA has filed a second amicus brief with the Ohio Supreme Court in support of the state’s position in Ohio Grocers Association v. Wilkins.

In the case originally filed in 2006, the Ohio Grocer’s Association, et al, filed suit against the state claiming that applying the CAT to off-site consumption of food is unconstitutional. Last year, the 10th District Court of Appeals ruled that the CAT is an excise tax and, therefore, cannot constitutionally be applied to grocery stores and fast food restaurants, among others. In the first amicus filing, OSCPA joined other business groups in successfully filing an amicus brief supporting acceptance of the case by the Supreme Court.

A total of five additional briefs were also filed in support of upholding the CAT. Those filers include The Ohio Business Roundtable, a coalition of education groups, a labor union alliance, a group representing political subdivisions and a coalition of anti-poverty interests. They join OSCPA, the Ohio State Medical Association, the Ohio Dental Association, the Ohio Manufacturers’ Association and the Ohio Chemistry Technology Council in support of the state’s contention that the CAT is not an excise tax but a business privilege tax.

With the 10th District's order on hold pending appeal, the $54.7 billion, two-year budget proposed by Gov. Strickland assumes that the state will continue to collect the grocers' share of the tax in fiscal years 2010 and 2011. That share of the tax is estimated to be worth about $188 million a year.

The Ohio Department of Taxation said that it is “business as usual” after the Court of Appeals decision. The Ohio Supreme Court's decision does not affect the stay granted by the Court of Appeals on Sept. 9, 2008, which remains in effect. This means there continues to be no change concerning the filing of returns and the payment of the tax.

OSCPA will continue to monitor the case as it is heard before the Court. For more information contact Amy Mignogna, OSCPA senior manager of governmental affairs.