Contractors Back Ohio Supreme Court’s Commercial Activity Tax Decision

There is great news today for Ohio residents as well as the many contractors that keep our roadways in shape!  The Ohio Supreme Court has ruled that Commercial Activity Tax revenue derived from motor fuel sales must be used for the construction and maintenance of highways and bridges.  In a lawsuit heard by the Court last July, a group of businesses contended that Ohio was violating the state constitution by directing approximately $140 million collected via the CAT on motor fuel sales to non-highway purposes including local governments and schools.  Here is an excerpt from today’s news release:

COLUMBUS, Ohio – Saying it validates both the Ohio Constitution and the will of Ohioans, members of the state’s heavy-construction industry strongly support today’s Ohio Supreme Court decision that the Commercial Activity Tax (CAT) revenue derived from motor-fuel sale receipts must be spent in furtherance of highway purposes such as bridge maintenance and construction.

“We are pleased that the Supreme Court of Ohio affirmed the will of Ohio’s citizens when they voted in 1947 to restrict the use of revenue from any excise tax related to motor fuel to only the purposes of maintenance and construction of highways and bridges,” said Ohio Contractors Association President Chris Runyan. “Excise taxes like the commercial activity tax, which directly burdens the price of motor fuel, rightly should be a source of funding for this part of our society’s infrastructure that drives economic prosperity and quality of life. The Court’s decision confirms that right and memorializes it as a constitutional mandate. We are pleased the Supreme Court affirmed this right in today’s ruling. It is a victory for Ohio citizens and the rule of law.”

Read the complete text of today’s news release here.

 

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