States forbidden to tax newspapers’ ink, paper

States cannot tax the paper and ink used in publishing newspapers, the Supreme Court ruled today. By an 8-1 vote, the Justices struck down such a Minnesota tax as unconstitutional. Writing for the court, Justice Sandra Day O’Connor said the tax violates free-press rights protected by the Constitution’s First Amendment. “Differential taxation of the press places such a burden on the interests protected by the First Amendment that we cannot countenance such treatment unless the state asserts a counterbalancing interest of compelling importance that it cannot achieve without differential taxation,” O’Connor said. She said Minnesota authorities had produced no sue ‘compelling” interest. Minnesota’s “use” tax was levied only on ink and paper used by publishers. Other businesses that use thos products were not subject to the Non-publishers pay a state retail sales tax on goods they produce, and publishers are exempt from that sales tax. The _tax was challenged in 1975 by The Minneapolis Star and Tribune Co., which at the time published The Minneapolis Tribune and The Minneapolis Star newspapers. Last year, the Star was merged with the Tribune and ceased to exist as a separate paper. For a 17-month period beginning Jan. 1, 1974 the publishing company paid $874,265.04 in taxes on the ink and paper it consumed. Its suit sought a refund of that money and a halt to further imposition of the tax. Today’s Supreme Court ruling means the publishing company will receive its sought-after refund