NOVEMBER 21, 2005

ISSUE 1090


CITRUS BOX TAX SUIT SETTLED

The Florida Citrus Commission approved a settlement of the lawsuit in which six of the state's largest citrus growers and the Florida Department of Citrus agreed to drop claims for against the other and to accept a May U.S. Supreme Court decision in favor of the Citrus Department.

The growers had filed the lawsuit in September 2002, challenging the state taxes on oranges and grapefruit sold for juice, which are mostly used to fund orange juice advertising campaigns.

The lawsuit claimed the citrus taxes violated the First Amendment because it amounted to a government agency forcing the growers to support speech, advertising in this case, that they did not support. After a series of court challenges, the U.S. Supreme Court ruled that the advertising represented "government speech" that is immune from First Amendment challenges.


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