If you have any questions pertaining to any of these blog posts, please contact [email protected]

Upcoming Events

October 25, 2017 : Ohio Society of CPAs Clev. Account. Show Steven A. Dimengo: “Sales Tax Compliance/Internet Tax”

November 10, 2017 : Ohio Society of CPAs Columbus Accounting Show Richard B. Fry

Maximizing the Manufacturing Exemption from Ohio Sales/Use Tax: Part 1 – The Commitment of Raw Materials

May 28, 2010

Generally, all property primarily used or consumed during the manufacturing operation is exempt from Ohio sales and use tax. Therefore, the scope of the manufacturing exemption is determined by the beginning and end of the taxpayer’s “manufacturing operation”. A manufacturing operation commences upon the commitment of raw materials, which occurs at the earliest point where:… Read More

Ohio CAT: Considerations for Combined and Consolidated Groups

April 28, 2010

Entities having “substantial nexus” with Ohio and more than 50% common ownership are required to file Ohio Commercial Activity Tax (“CAT”) returns as a combined taxpayer, unless an election to file as a consolidated group is made.  A group may elect to file CAT returns as a consolidated taxpayer if the group has at least… Read More

Watch Out For That Alleged “Business Fixture”, I Mean Bunker, In Front Of The Green!

April 5, 2010

In light of the Ohio Supreme Court’s decision in Funtime v. Wilkins (2004), 105 Ohio St.3d 74, the Ohio Department of Taxation (the “Department”) seems to have an increased interest in auditing golf courses for Ohio sales/use taxes. In Funtime, the Ohio Supreme Court held, in sum, that an item permanently affixed to real property… Read More

When “Sales Tax Included” Is Not Actually Included…

March 19, 2010

Many contracts for the purchase of tangible personal property include a lump sum purchase price and a phrase such as “all tax included” or “includes applicable sales tax”. However, this language is not sufficient to protect a consumer from collection of unpaid sales tax by the Ohio Department of Taxation (the “Department”). The Department has… Read More

Ohio CAT: Identifying Businesses with “Bright-Line” Nexus

March 4, 2010

The Ohio Department of Taxation (the “Department”) is focused on increasing registration and compliance with the commercial activity tax (the “CAT”), which replaced Ohio’s corporate franchise, personal property and personal income taxes (although the final phase-out of the personal income tax has been delayed). As part of the Department’s addition of 100 revenue generating employees,… Read More

Using New Sourcing Rules to Minimize Ohio Sales Tax

February 16, 2010

As explained in a previous post, Ohio changed its sourcing rules effective January 1. Now, intrastate sales of tangible personal property (“TPP”) are generally sourced by origin (vendor’s location where order is received), and interstate sales are sourced generally by destination (consumer’s location).  More importantly, incremental use tax is not owed to the Ohio County… Read More