Nexus Around the Nation

With 2015 underway, here is a review of recent nexus developments around the nation. New Jersey – The New Jersey Division of Taxation issued a technical bulletin to expound the recent enactment of click-through nexus. J.S.A. 54:32B-2(i)(1) was amended to create a rebuttable presumption that remote sellers are engaged in solicitation in New Jersey, and... Read More

Ohio Income Tax: An Individual May Now Spend Up to 7 Months In Ohio, But Still Be Taxed As A Nonresident Under the Bright-Line Residency Test

Qualifying as a nonresident for Ohio income tax purposes, which can significantly reduce tax owed on investment and business income, has gotten easier. Ohio residents are taxed on all their income, subject to a resident credit for income taxed by other states. Conversely, nonresidents are only taxed on their Ohio-sourced income. For a nonresident, pension... Read More

The ABCs of Ohio’s Back-to-School Sales Tax Holiday

Back-to-school shopping just got a little better for Ohio taxpayers due to the recent enactment of Senate Bill 243 which exempts the purchase of clothing and school supplies from Ohio sales / use tax for three days in August 2015. Ohio’s “sales tax holiday” will occur on August 7 – 9 and is expected to... Read More

Welcomed Ohio Municipal Income Tax Reform To Be Implemented For 2016 Tax Year

Updating our previous post, Gov. Kasich signed H.B. 5, the Ohio Municipal Income Tax Reform Bill, into law on December 19, 2014. The Bill requires Ohio municipalities imposing an income tax to update their ordinances to comply with certain uniformity provisions contained in Chapter 718 of the Ohio Revised Code for the 2016 tax year.... Read More

BTA Expands Its Definition of “Responsible Party” In Two Recent Cases

On September 23, 2014, we posted about the expansion of who qualifies as a “responsible party.” In that case, Wilson v. Testa, the Board of Tax Appeals found an “investment partner” was a responsible party. Recently, the Board of Tax Appeals again expounded upon its definition of “responsible party” in Gillan v. Testa, Ohio BTA,... Read More

Spending Bill Extends Ban on Internet Tax, Again

An extension until October 1, 2015 of a ban on taxing Internet access was included in the $1.1 trillion government funding bill passed by the House and the Senate. The Internet Tax Freedom Act (ITFA) is often misunderstood as prohibiting tax on sales made via the Internet, but it actually only prohibits tax being imposed... Read More

Transportation for Hire: Truck Exemption Disallowed Due to Lack of Evidence

In Arcaro v. Testa, Ohio BTA Dkt. No. 2014-432 (10/22/2014), the Ohio BTA affirmed the Tax Commissioner’s determination that denied the objections to a use tax assessment based on the taxpayer’s untaxed purchase of a 2013 truck. The taxpayer argued the purchase was exempt from payment of use tax based on R.C. 5739.02(B)(32), which provides... Read More

Quick Service Restaurants (QSR) Sales Tax Compliance Report: New Options to Consider During a Sales Tax Audit

The Ohio Department of Taxation (“Department”) recently held a series of interested party meetings concerning sales tax compliance for Quick Service Restaurants (“QSRs”), which have received increased scrutiny from the Department recently, and issued a 154-page report intended to provide guidance by discussing the applicable sales tax statutes for predetermined and prearranged agreements for sales... Read More