Posted on Wednesday, January 6th, 2010 by Amanda Franz, CPA
The Ohio Commercial Activity Tax was fully phased-in as of March 31, 2009. For those taxpayers with Ohio gross receipts between $150,000 and $1 million, the tax is $150. For taxpayers with Ohio gross receipts over $1 million, the tax is $150 plus a .26% tax of any Ohio gross receipts over $1 million.
Several key changes include:
1. The Ohio personal property tax has been completely phased out. For most businesses the final report was the 2009 personal property tax report.
2. The Ohio franchise tax has been completely phased out. The filing of 2009 franchise tax report was the final report for both C-corporations and S-corporations.
The Ohio Department of Taxation (“the Department”) has provided guidance on several changes to the due date of the minimum tax. Beginning 2010, the $150 annual minimum tax will be due no later than May 10th of each year with the annual return for calendar year taxpayers or with the first quarter return for calendar quarter taxpayers, a change from the original February 9th which will benefit most taxpayers.
The Department also provided some consistency for quarterly CAT filers. Quarterly CAT returns are now due the 10th day of the second month following the end of the quarter or May 10th [January 1 – March 31 quarter], August 10th [April 1 – June 30 quarter], November 10th [July 1 – September 30 quarter] and February 10th [October 1 – December 31 quarter].
The Department also changed the date to cancel a CAT account. That date has been moved to May 10th of the tax year. If a CAT account is cancelled by May 10th, the taxpayer is not subject to the annual minimum tax.
See the Department’s information release CAT 2009-01 – http://tax.ohio.gov/divisions/communications/information_releases/CAT/cat_2009_01.stm
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