Ohio Supreme Court Rules In Favor of Taxpayer that Tax Commissioner Retained Jurisdiction Over Administrative Appeal

The Ohio Supreme Court recently ruled in favor of the taxpayer in Crown Communications, Inc. v. Testa, 2013-Ohio-3126, who we represented. The Tax Commissioner failed to provide proper instructions to the taxpayer as to how to appeal a final assessment. Rather than appealing to the Board of Tax Appeals, which is the normal appeal procedure... Read More

Ohio Governor Vetoes Click-Through Nexus

Although included in the version passed by the Ohio General Assembly, Governor Kasich vetoed click-through nexus provisions from Ohio’s Budget Bill signed Sunday night. Similar laws have been enacted in several other states presuming sales/use tax nexus to exist if a company enters into agreements with instate “affiliates” or representatives to refer sales, including via... Read More

Republican Leaders Agree on Ohio Tax Plan

With both the House and Senate controlled by Republicans, significant changes to Ohio’s tax landscape were certain to occur after Gov. Kasich unveiled his proposed budget for the upcoming biennium beginning July 1, 2013. After yesterday’s announcement that Republican legislatures have reached an agreement, the specifics of those changes are becoming more clear, reflecting a... Read More

Northeast Ohio State and Local Tax Conference

Steve and Rich will be participating in the inaugural Northeast Ohio State & Local Tax Conference on July 25, 2013 in Independence, Ohio. The Conference, presented by The University of Akron’s George W. Daverio School of Accountancy and The Ohio Society of CPAs, will be beneficial for a wide variety of professionals, including CPAs, tax... Read More

Ohio Sales/Use Tax: Exempt Purchases of Property Incorporated into Real Property

Generally, a contractor’s purchase of tangible personal property to be incorporated into real property is taxable. However, a contractor’s material purchases are not taxable when incorporated into: Real property under a contract with, or that is accepted for ownership by, the United States (including its agencies) or the state of Ohio or a political subdivision... Read More

Ohio Commercial Activity Tax Sourcing Rules Provide Planning Opportunities

Generally, taxable receipts for the Ohio commercial activity tax are sourced to where tangible personal property is “ultimately received” or the benefit of services are received. R.C. 5751.033. However, evidenced by guidance published by the Ohio Tax Commissioner, these locations are not always clearly discernable. O.A.C. § 5703-29-17 (sourcing services). Information Release 2005-17 (revised April... Read More

Multistate Taxation: New York’s Highest Court Upholds Click-Through Nexus Law Amid Facial Constitutional Challenge

“Click-through nexus” laws generally attribute the presence of in-state representatives who refer sales to an out-of-state retailer, including via web links, in exchange for a commission for determining sales tax nexus. See e.g., New York Tax Law § 1101(b)(8)(vi). New York was the first state to enact such a “click-through nexus” or Amazon law. Predictably,... Read More

Multistate Taxation: Marketplace Fairness Act Gaining Momentum

On April 22, 2013, the U.S. Senate voted to take up the Marketplace Fairness Act of 2013 for debate and amendment. Notably, President Obama came out in support of the bill. While several hurdles remain, including passage by the Republican-controlled House of Representatives, this is step towards federal legislation permitting states to force remote sellers, i.e.,... Read More

Ohio Board of Tax Appeals Accepts Taxpayer’s Retroactive Valuation of Personal Property

Upon remand from the Ohio Supreme Court, the Board of Tax Appeals recently ruled in favor of a taxpayer’s valuation of its personal property using a different method than the statutorily prescribed “302 Computation.” The taxpayer presented a retrospective appraisal report prepared after the relative tax valuation dates. The BTA accepted the taxpayer’s valuation as... Read More

Last Chance: Ohio Consumer Use Tax Amnesty

Ohio use tax amnesty ends May 1, 2013. Amnesty is a great opportunity to minimize past liability for a consumer’s untaxed purchases avoiding penalty, and in some cases, interest, while commencing prospective compliance. More details for the program can be found here. To qualify, the company cannot have received a prior use tax assessment. All... Read More