State and Local Tax Issues

As you may remember from our July e-newsletter, Ohio recently created a new small business investment tax credit. New details of the program have now emerged and quick action may be required to take advantage of this tax credit which begins Monday, November 14^th.

What is InvestOhio?

Through the program, individuals who invest up to $10 million in eligible small businesses

may receive a 10 percent income tax credit if the investment is held for two years.

The credit is a non-refundable personal...

Ohio recently enacted legislation creating two tax amnesty programs that may affect you or your business. 

Use Tax Amnesty Program

The first program is a change to the Ohio Use Tax Education Program. In case you are unaware, here is a quick refresher on Ohio use tax.

Use tax is a tax on the storage, use or other consumption of tangible personal property and certain taxable services in Ohio. The use tax is a complement to the sales tax.   In general, if you have paid Ohio sales tax on an item,...

Here is what you need to know:

Ohio Use Tax Education Program (UTEP)
Under the program, the Department plans to aggressively identify and contact use tax non-filers beginning in the second half of 2011, informing them of their responsibility to remit use tax.  These businesses, once notified through the UTEP, will be able to: (1) register and begin remitting use tax prospectively; and (2) clear up past use tax liabilities by entering into an agreement to pay use tax plus applicable interest on...

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...

Effective January 1, 2010, Ohio has made a few changes to the way sales of tangible personal property and taxable services are sourced. According to the Ohio Department of Taxation, the purpose of sourcing is to determine the location of the sale for sales tax purposes. If a sale is taxable, the sourcing of the sale will determine the appropriate jurisdiction’s tax rate for the seller to charge.

Below is guidance on the Ohio sales tax sourcing rules.

1. Ohio vendors who sell tangible personal...