Ohio Sales and Use Tax

Recent Legislation Affecting Ohio Sales and Use Tax

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

Update to Consumer Use Tax Amnesty Program Payment Plan

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

Maximizing Ohio’s Sales/Use Tax Exemptions

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

Ohio State Bar Association Sales/Use Tax Subcommittee Report for September 9, 2011

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

Do Not Expect Leniency from the Ohio Board of Tax Appeals for Financial Hardship

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

Ohio Use Tax Liability, Reporting, Compliance and Enforcement Issue

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.

Maximizing the Manufacturing Exemption from Ohio Sales/Use Tax: Part 2 – When is a Product “Complete”?

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

Ohio Sales/Use Tax: Maximizing the Packaging Exemption for Food Processors and Retailers (and perhaps Wholesalers)

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