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
Cases
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
The Ohio Supreme Court encountered a relatively unique situation in Giddens v. Testa, 2016-Ohio-8412. The two shareholders of Redneck, Inc., who resided in Missouri, received large dividends in 2008, at which time Redneck was taxed as an S corporation. However, the taxpayers showed the dividends were Redneck’s earnings and profits from when the corporation was... 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
Under R.C. 5747.212, Ohio personal income tax is imposed on capital gains realized by out-of-state investors who hold a 20% or greater interest in a pass-through entity or closely held C-corporation doing business in Ohio. Per the statute, the nonresident investor’s gain is apportioned to Ohio according to the three-year average of the entity’s Ohio... Read More
R.C. 5739.01(JJ)(3) provides an exception to otherwise taxable employment services for leased employees provided under a contract “that specifies that each employee covered under the contract is assigned to the purchaser on a permanent basis.” In A.M. Castle and Company v. Testa, Ohio BTA Case No. 2013-5851 (March 9, 2015), the taxpayer received leased employees... Read More
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
By: STEVEN A. DIMENGO, DAVID W. HILKERT, AND RICHARD B. FRY III Buckingham, Doolittle & Burroughs, LLP Akron, Ohio Messrs. Dimengo and Hilkert represented the taxpayer in the case that is the subject of this article. This article appears in and is reproduced with the permission of the Journal of Multistate Taxation and Incentives, Vol. 21,... Read More