DirecTV and other satellite TV companies challenged the constitutionality of Florida’s Communications Services Tax, alleging it benefitted cable companies over satellite companies and so violated the Commerce Clause of the U.S. Constitution by favoring in-state businesses over out-of-state businesses. The trial court disagreed, upholding the constitutionality of the law. But the First District Court of Appeal overturned the trial court, ruling the tax law was unconstitutional. The state Department of Revenue and Florida’s cable industry appealed that decision by the1st DCA to this Court.

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