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
Ohio Sales and Use Tax Audits – What to Expect!
February 3, 2010
With the addition of 85 agents to the Ohio Department of Taxation’s (the “Department”) Audit Division (representing a 32% increase), half of which are assigned to sales and use tax, audits in this area are certain to substantially increase in the coming years. As Ohio attempts to capture revenue, you should understand the process and… Read More
Sales and Use Tax Nexus – Renting an Out-Of-State Warehouse
January 21, 2010
Much attention is given to the presence of an employee or agent in a state when analyzing whether a business has nexus for sales and use tax collection purposes on its sales. This generally causes other nexus creating activities to be overlooked. One such activity is renting a warehouse or other storage space in a… Read More
Are You Filing An Ohio Use Tax Return?
January 13, 2010
Like other states, Ohio’s use tax is complementary to its sales tax, with tax being imposed upon the storage, use, or consumption of tangible personal property in Ohio and the receipt of the benefit of a taxable service, to the extent sales tax has not been paid. The reality is that every Ohio resident and business operating in Ohio… Read More