A former Ohio resident could not avoid Cleveland municipal income tax even after retiring and moving to Florida. The Ohio Supreme Court held income generated from employee stock options received as compensation while employed in Cleveland were properly taxed by the City, even though the employee had retired and moved out-of-state before she exercised the... Read More
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Recently, the Ohio Board of Tax Appeals (BTA) denied a taxpayer’s sales tax refund in part because it could not consider the taxpayer’s improperly submitted evidence. In Environmental Quality Management Inc. v. McClain, BTA No. 2018-1194 (August 8, 2019), the taxpayer sought a refund for sales tax paid on software used by non-Ohio employees. The... Read More
We are approaching one year since the U.S. Supreme Court overruled 50 years of precedent to eliminate the “physical presence” bright-line rule for substantial nexus in its South Dakota v. Wayfair decision. Most states have already responded to Wayfair by enacting “economic nexus” laws requiring remote sellers to collect sales tax. This includes larger states,... Read More
Welcome to TaxTalk–a video series where Buckingham Partners Steven A. Dimengo and Richard B. Fry discuss hot topics, new developments and tax law you need to know. Buckingham Partner, Rich Fry discusses current issues concerning the proposed Ohio Budget Bill for FY2018-2019 (H.B. 49), which was recently passed by the Ohio House and is now... Read More
The Ohio Board of Tax Appeals (BTA) ruled in favor of Great Lakes Bar Control, Inc. (“Great Lakes”) that maintaining draft beer dispensing services are not subject to Ohio sales tax. Great Lakes Bar Control, Inc. v. Testa, BTA Case No. 2016-34 (Apr. 14, 2017). Great Lakes was represented by Buckingham attorneys Steve Dimengo, Matt... Read More
Ohio’s manufacturing exemption (R.C. 5739.011) is available for property primarily used to produce tangible personal property for sale. Of course, the manufacturer wants to exempt its property as soon as possible, which begins when the manufacturer’s raw materials are “committed.” A common misunderstanding is that raw materials must be transformed in some way, such as... Read More
Buckingham attorneys Steven A. Dimengo and Richard B. Fry III explain Ohio tax changes on the horizon with sales tax to become even more significant. Gov. Kasich’s quest to lower the Ohio personal income tax rate continues in his latest proposed biennium budget, even in the face of Ohio’s tax revenue falling short of estimates. If... Read More
The Ohio Supreme Court recently held that the bright-line presence nexus standard for Ohio Commercial Activity Tax (“CAT”) does not violate the U.S. Constitution. Many taxpayers have pending audits or appeals at the Board of Tax Appeals regarding this nexus issue. What should these and other CAT taxpayers do now? First, it is expected the... Read More
In a 5-2 decision, the Ohio Supreme Court found that the $500,000 gross receipts in Ohio standard for creating substantial nexus for the commercial activity tax (CAT) is constitutional. “We hold that given the $500,000 sales-receipts threshold, the burdens imposed by the CAT on interstate commerce are not ‘clearly excessive’ in relation to the legitimate... Read More