Beaver Excavating Co. v. Testa
Annotate this CaseAppellants, contractors and engineers, filed a declaratory judgment action against Appellee, the tax commissioner of Ohio, seeking a judgment declaring that the Ohio commercial activity tax (CAT), as it related to motor-vehicle-fuel sales, violated Ohio Const. art. XII, 5a. The trial court granted summary judgment for the tax commissioner. The appellate court affirmed, applying the rationale of Ohio Grocers Ass'n v. Levin, concluding that the background and history of Section 5a did not support the contention that the CAT was a tax "relating to" motor vehicle fuel sales. The Supreme Court reversed, holding that the expenditure of the CAT revenue that was derived from motor-vehicle-fuel sales were "related to" fuels used for propelling motor vehicles on a highway, within the meaning of Section 5a, and consequently, the excise tax violated the Ohio Constitution to the extent that the revenue raised was used for purposes other than those specified in Section 5a.
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