Challenge to Ohio’s COVID-19 Remote Worker Withholding Statute Dismissed

In the fall 2020, Ohio passed a law giving employers flexibility to withhold income taxes as if employees were still working at the office, even if they were working remotely in a different municipality due to COVID-19. See H.B. 197. It essentially provided administrative relief to employers because they are not required to withhold tax... Read More

Significant Real Property Tax Savings Available for Property Owners Affected by COVID-19

Yesterday, Governor DeWine signed S.B. 57 into law, which allows property owners to reduce their 2020 property tax bills by filing a special “COVID-19 Complaint” with the county due by August 25, 2021. Complaints may be filed beginning July 26, 2021. Additionally, the statutory restriction for filing only one complaint in a 3-year valuation period... Read More

Ohio Domicile: Taxpayer could have prevailed with simple affidavit

In a recent Board of Tax Appeals Case, taxpayers contested the Department’s assessment of personal income taxes for 2014-16, asserting that they were not Ohio residents. See Anthony R. Joy & Robin E. Miller, (et. Al.), v. Jeffrey A. Mcclain, Ohio BTA Case No. 2020-239. However, the taxpayers made two critical mistakes that ultimately resulted in... Read More

Ohio CAT – Ohio Supreme Court holds sale of intangible contract rights sitused outside Ohio

Ohio Commercial Activity Tax – Ohio Supreme Court applies market-based sourcing and grants taxpayer refund by situsing intangible revenue to purchaser’s physical locations.  Situsing gross receipts often becomes a contentious issue in Ohio Commercial Activity Tax (CAT) audits partially due to the lack of guidance applying Ohio’s market-based sourcing statute. The Ohio Supreme Court has... Read More

OSBA Sales & Use Tax Subcommittee Report Highlights Recent Cases

Click here to view the Sales & Use Tax Subcommittee Report that Steve and Rich presented to the Ohio State Bar Association’s Taxation Law Committee on September 24, 2020. The OSBA Sales/Use Tax Subcommittee Report discusses recent developments concerning the scope of taxable services, as well as the federal preemption of taxation on internet services which... Read More

Ohio clarifies SBA Economic Injury Disaster Loan (EIDL) grants are taxable gross receipts for CAT Purposes

In a previous post, we noted that forgiven Paycheck Protection Program (PPP) loan amounts are excluded from Ohio’s commercial activity tax (CAT) to provide taxpayer relief during the COVID-19 pandemic. H.B. 481. However, the Ohio Department of Taxation has indicated this relief does not extend to EIDL advance grants and other county-issued relief grants. Recently,... Read More

Ohio bills seek to repeal law giving cities flexibility for remote worker withholdings

In the wake of the Covid-19 pandemic, the Ohio General Assembly passed H.B. 197 to provide tax relief to Ohio citizens through deadline extensions and flexible tax policy. One provision gave employers flexibility to withhold income taxes as if employees were still working at the office, even if they were working remotely in a different... Read More

Sales Tax Collection: Broad Marketplace Facilitator Laws Could Capture Unwary Taxpayers

Most states have recently passed laws requiring marketplace facilitator to collect tax on e-commerce sales by remote sellers made through the marketplace’s platform. Ohio, for example, broadly defines a marketplace facilitator as any entity that operates a marketplace and facilitates payment processes for goods or services. R.C. 5741.01(W). This definitions covers the usual suspects, such... Read More