The following changes to Ohio sales and use tax were enacted pursuant to H.B. 508 effective September 6, 2012: Sales Tax owed on the Acquisition of Interests in Certain Pass-Through Entities: The definition of a “taxable sales” will now include transfers of ownership interests in a pass-through entity if the entity is not engaged in... Read More
Ohio Sales and Use Tax
Prior to the enactment of Am. Sub. H.B. 153 last year, the Ohio Department of Taxation (Department) had taken the controversial position that the full face value of a gift card distributed to customers without additional charge, as a part of a promotional program, was included in the “price” when redeemed subject to Ohio sales... Read More
As originally proposed, the Ohio Department of Taxation’s administrative rule (O.A.C. § 5703-9-60) required taxpayers wishing to take advantage of the payment plan under the Ohio use tax amnesty program to make $1,000 minimum monthly payments and obtain two personal guarantors, or a surety bond, to secure the amount owed under the payment plan. However,... Read More
Click here to view Steve’s January 20, 2012 report presented to the Taxation Section of the Ohio State Bar Association as Chair of the Sales/Use Tax Subcommittee.
Ohio’s sales/use tax rate on purchases of taxable property and services can be quite significant, ranging from 5.75% to 7.75%. Are you taking advantage of the following broad exemptions? Leased employees provided for an indefinite period under the appropriately worded contract. Manufacturing exemption and its expansive rules with respect to the beginning and end of... Read More
Click here to view Steve’s report presented to the Taxation Section of the Ohio State Bar Association as Chair of the Sales/Use Tax Subcommittee. Of particular interest is the recent legislation (Am. Sub. H.B. 153) providing for, among other things, Ohio’s consumer use tax amnesty program. Additionally, the Report discusses recent BTA decisions that narrowly construe the... Read More
In Cottonwood, Inc. v. Levin, Ohio BTA No. 2009-K-5 (April 19, 2011), the Tax Commissioner assessed a struggling business deficient sales tax, interest and penalties. The taxpayer appealed to the Ohio Board of Tax Appeals (“BTA”) requesting a waiver of the interest and penalties, but without challenging the tax, based upon the fact that the... Read More
We have partnered with LexisNexis® Tax Law Community! On April 27, 2011, our first Podcast aired. Click here to hear our commentary related to Ohio Use Tax Liability and the Ohio Department of Taxation’s increased enforcement thereof.
As described in Part 1 of this article, the scope of the manufacturing exemption from Ohio sales and use tax is determined by the beginning and end of the “manufacturing operation.” A product being manufactured is complete, thereby ending the manufacturing process, when all the processes that alter the product’s state or form or enhance its... Read More
An often over-looked and underutilized exemption from Ohio sales and use tax is the so-called “packaging exemption”. To claim this exemption, the business must engaged in one of several enterprises, including manufacturing or making retail sales. This exemption is available for packaging materials and equipment, which are defined broadly. Further, since packaging material includes any... Read More