Internet Tax in Washington: Cmty. Telecable of Seattle, Inc. v. Dep't of Exec. Admin.WARNING: This article includes the trial and the appellate court decisions regarding this case. The Supreme Court of Washington rendered a final decision in 2008, which reverse the court of appeal's holding and reinstated the trial court's holding. For the Supreme Court case, see the summary titled: Taxation of Internet Service Providers in Seattle.
Comcast (Plaintiff/Respondent) sued the City’s Department of Executive Administration (Defendant/Appellant and hereafter "The City"), for a refund of the tax and declaratory relief, contending that the tax was illegal under Washington’s Internet Tax Moratorium and the federal Internet Tax Freedom Act.
The trial court denied the City's motion for summary judgment and granted Comcast’s cross-motion for summary judgment. The City appealed. The Washington State Court of Appeals (the second level appellate court) held that the tax was not barred by the Washington Internet Tax Moratorium and that the tax was exempt from the federal Internet Tax Freedom Act’s (ITFA) moratorium on taxes on Internet access under a grandfather clause. The Washington State Court of Appeals further held that the tax was not discriminatory under the federal Internet Tax Freedom Act. Accordingly, the court reversed the summary judgment of the trial court.
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