The Ohio Board of Tax Appeals recently allowed a taxpayer to retroactively elect to be taxed as a consolidated taxpayer for Ohio commercial activity tax, even after an audit had commenced. Nissan North America, Inc. v. McClain, Ohio BTA Case No. 2016-1076 (October 9, 2019). Even though Nissan failed to elect consolidated status when it... Read More
CAT
Ohio’s 10th District Court of Appeals affirmed the Board of Tax Appeals’ decision upholding commercial activity tax (CAT) assessments issued to a Georgia business with no activities in Ohio and minimal (if any) direction towards the state’s market. The Court held that application of the Ohio CAT’s market-based situsing principals to the taxpayer’s, Greenscapes Home... Read More
The Ohio Board of Tax Appeals recently decided two cases that affect Ohio’s Commercial Activity Tax (CAT): SMK Industries v. Testa and Defender Security v. Testa. Both decisions reviewed the CAT’s rules for situsing sales. SMK Industries reiterated Ohio’s “ultimate destination” rule for sourcing sales of tangible personal property under R.C. 5751.033(E), while Defender Security... Read More
Gross receipts from sales of tangible personal property are sitused to Ohio if the goods are received by the purchaser in Ohio. R.C. 5751.033(E). The statute provides that the property is sitused to the place where it “is ultimately received after all transportation has been completed”. In Greenscapes Home and Garden Products, Inc. v. Testa,... Read More