Ohio commercial activity tax – NASCAR hits Roadblock as broadcast and media revenue sitused to Ohio based upon viewership data

For Ohio commercial activity tax (CAT), gross receipts from certain intellectual property, such as trademarks, trade names, patents and copyrights, are sitused to the location where the purchaser uses or has the right to use the property. R.C. 5751.033(F). NASCAR’s revenue from the broadcast of its races “encompassed territory both inside and outside of Ohio.”... 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 September 2, 2021. Complaints may be filed beginning August 3, 2021. Additionally, the statutory restriction for filing only one complaint in a 3-year valuation period... Read More

SALT Cap Workaround – Ohio provides PTE investors who elect workaround with income tax benefit.

Individuals are limited to deducting $10,000 ($5,000 for married filing separate) of state and local taxes (SALT) on their Federal income tax. Generally, income earned by pass-through entities (PTE) is taxed at the investor level, meaning business owners lose a valuable Federal income tax deduction for state taxes paid on income earned by businesses they... 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