How To Register For Ohio Cat Tax

Ohio's Commercial Activity Tax (CAT) - General Data

The commercial activity tax (True cat) was enacted in Ohio Firm Bill 66 and beginning applied to taxable gross receipts received on and subsequently July 1, 2005. The True cat is a successor tax to Ohio's general business holding and corporate franchise taxes, both of which were phased out. The CAT is an annual privilege tax measured past gross receipts on business activities in Ohio. This revenue enhancement applies to all types of businesses: eastward.grand., retailers, service providers (such every bit lawyers, accountants, and doctors), manufacturers, and other types of businesses including rentals. The CAT also applies whether the business is located in Ohio or is located outside of Ohio if the taxpayer has plenty business organization contacts with this country. The CAT applies to all entities regardless of class, (due east.yard., sole proprietorships, partnerships, LLCs, and all types of corporations). A person with taxable gross receipts of more than $150,000 per calendar year is subject to this tax.

Taxable Gross Receipts - Gross receipts subject field to CAT include almost business types of receipts. Some examples of receipts that are not subject to the True cat include involvement, dividends, upper-case letter gains, wages and gifts. Receipts from sales to out-of-country purchasers are not subject to the CAT.

Registration - Taxpayers having over $150,000 in gross receipts from sales to customers in Ohio for the calendar year are required to file returns for the True cat. In society to file returns, a taxpayer must outset register for the CAT with the Ohio Department of Revenue enhancement.

Annual and Quarterly Filers - Almanac True cat taxpayers (those taxpayers with taxable gross receipts between $150,000 and $1 1000000 in a calendar year) must pay an annual minimum tax. The almanac minimum taxation is due on May 10th of the current tax year.

Taxpayers with annual taxable gross receipts in backlog of $one 1000000 must file returns on a quarterly ground. Quarterly taxpayers pay a rate component for taxable gross receipts in backlog of $1 one thousand thousand. The tax rate on receipts in excess of $i million is 0.26%. The almanac minimum tax is paid with the filing of the kickoff quarter return, which is due on May tenth.

Consolidated Elected Taxpayer Groups and Combined Taxpayer Groups - A consolidated elected taxpayer group is a taxpayer that has elected to file as a grouping including all entities that have either 50 percent or more common buying or 80 percent or more than common buying. A major benefit of making this election is that receipts received between members of the group may exist excluded from the taxable gross receipts of the group. This election is binding for eight agenda quarters.

Annual Minimum Tax –   The almanac minimum revenue enhancement is calculated equally follows:
•    $150 for taxpayers with taxable gross receipts of $ane 1000000 or less in the previous agenda twelvemonth;
•    $800 for taxpayers with taxable gross receipts betwixt $one meg and $two million;
•    $2,100 for taxpayers with taxable gross receipts between $ii meg and $4 million; or
•    $2,600 for taxpayers with more than $4 million in taxable gross receipts in the previous calendar year.

Tax Credits - Some credits that taxpayers can claim confronting the CAT include:
•    the nonrefundable jobs retention credit;
•    the nonrefundable credit for qualified inquiry expenses, or, the nonrefundable credit for a borrower's qualified enquiry and development loan payments;
•    the refundable motion picture production credit;
•    the refundable jobs creation credit, or the refundable job retention credit;
•    the Ohio historic preservation revenue enhancement credit (on a temporary basis).

Some Problems Nosotros've Seen – From the kickoff of enactment, and fifty-fifty through the present, many taxpayers are simply unaware that the taxation exists, or that they are subject to it. Another result is that some taxpayers file Cat returns that include all gross receipts and not but those to Ohio customers. And some do non take advantage of credits that can exist applied to the tax. Also, we have seen many cases where the taxpayer computes the taxation, then goes online and makes the payment, but never files the render. And, it normally takes Ohio over a year to ship out a find for the unfiled return, and by then, they have sent the taxpayer to collections, and filed liens. And finally, we have noticed that audits in this surface area are on the rise.

As you can see, this simple revenue enhancement is not always so simple.

Note: most of this information is available on the Ohio Department of Tax'due south website.

Thank you for all of your questions, comments and suggestions for future topics. As e'er, they are much appreciated. We may be reached in Dayton at 937-436-3133 and in Xenia at 937-372-3504. Or visit our website.

How To Register For Ohio Cat Tax,

Source: https://www.xacc.com/news-releases/general-news/823-ohio-s-commercial-activity-tax-cat-general-information.html

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