Uncategorized

Ohio Real Property Tax – Ohio severely restricts school districts’ rights to challenge property values

Recently-enacted HB 126 significantly alters the rights and procedures for local school districts (among other government entities) to contest property valuations for real property taxes. The changes described below will affect current and future valuation complaints and appeals. Accordingly, this is an opportune time for property owners to review their approach to property taxes and... Read More

Ohio Income Tax – Ohio Jumps on Trend to Codify SALT Deduction Cap Workaround

Last year, this post explained that investors in Ohio pass-through entities (PTEs) may be able to avoid the $10,000 state and local tax (SALT) deduction cap using Ohio’s composite return election. Now a little over a year later, Ohio has ended any uncertainty and joined the growing number of states passing SALT Cap Workaround laws... Read More

Ohio Sales and Use Tax: Sales of mixed service including custom software and automated services purchased by bank needs further examination of purchaser’s true object. 

The Ohio Supreme Court recently addressed whether certain “account processing services” purchased by Cincinnati Federal Savings & Loan Co. were subject to Ohio sales / use tax. The services involved the use of software to automate maintenance of the bank’s accounting and financial records on an ongoing and real-time basis. The Court found that the... Read More

Deadline to Save on Your Real Property Taxes Approaching – It’s time to check if your property tax valuation is inflated.

Property owners and certain tenants may challenge the taxable value of their property for the 2021 tax year by filing a real property tax valuation complaint before March 31, 2022 to reduce their property taxes. For the first time, Ohio law allows certain commercial and industrial tenants, in addition to property owners, to file the... Read More

OSBA Sales & Use Tax Subcommittee 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 January 27, 2022. 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

Once-in-a-Lifetime Tax Incentive: Employee Retention Credit extended to Q3 and Q4 2021, and expanded for start-ups and struggling businesses.

On August 4, 2021, the IRS released additional guidance concerning the Employee Retention Credit (ERC) for Q3 and Q4 2021. See IRS Notice 2021-49. A notable expansion to eligible businesses includes any business started after February 15, 2020. Further, any employer experiencing a significant decline in quarterly gross receipts for Q1 to Q3 2021 will... Read More

Ohio’s Budget Bill tax changes aim to increase Ohio investment and reduce burdens on recovering businesses

Ohio’s Biennial Budget Bill (Am. Sub. H.B. 110) was signed into law by Governor DeWine on June 30, 2021. The bipartisan bill boasts substantial measures to boost school and scholarship funding, create incentives for investing in Ohio, provide relief to businesses hit hard by COVID-19, and even allow college student-athletes to benefit from their own... Read More

Ohio Sales / Use Tax: Who controls your trash? Critical contractual distinction determines tax exemption for waste haulers, creating potential refund opportunities.

The Ohio Supreme Court recently ruled that a waste-hauler was entitled to Ohio’s transportation-for-hire exemption from sales / use tax on trucks used to haul trash to customer-designated locations. In N.A.T. Transportation, Inc. v. McClain, the Court determined the waste had not been abandoned, distinguishing from a previous case, since these customers controlled the destination... Read More

Out-of-State Remote Workers may Create Substantial Nexus as COVID-19 Protections Expire

In response to the COVID-19 pandemic, as work-from-home became the norm, many states provided safe harbors such that remote workers teleworking in the state would not create nexus for corporate income tax and sales / use tax purposes. Thus, businesses with teleworking employees were not burdened with additional state tax obligations during the pandemic. Now... Read More

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