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Namaste, Ohio sales tax is not owed on membership fees for instructor-led fitness classes

June 17, 2020

Ohio generally taxes gym, athletic club, and health spa memberships that allow members to use the facility for physical exercise. R.C. 5739.01(B)(3)(n) & (r). However, with the growing popularity of group fitness classes, the issue arose whether fees for unlimited access to instructor-led classes are taxable. The Ohio Department of Taxation recently answered this question… Read More

Law360: Security Co. Disputes ADT Fee Sourcing In Ohio High Court

May 1, 2020

Originally published on Law360 on April 28, 2020.  | PDF Download available by clicking here.  Watch the oral argument here. A security company that sells residential alarm service contracts to ADT told the Ohio Supreme Court on Tuesday that the contract fees shouldn’t be sourced to Ohio for tax purposes because ADT receives the contract benefits… Read More

Ohio Commercial Activity Tax – Ohio Board of Tax Appeals relies on federal income tax treatment of vehicle financing transactions for reversal of CAT assessment.

March 4, 2020

A common question in many Ohio commercial activity tax (CAT) audits is whether federal tax treatment may be relied upon. Although the statute says it should (R.C. 5751.01(K)), the Tax Commissioner is often reluctant to accept the federal treatment for CAT purposes – a gross receipts-based tax, not an income tax. The Ohio Board of… Read More

Ohio Drafts Rule Limiting Retroactive Consolidated Filing Elections

January 27, 2020

The Ohio Department of Taxation has proposed a regulation change that would prevent taxpayers from making a retroactive consolidated filing election for Ohio Commercial Activity Tax purposes (CAT). The rule change appears to be an attempt to limit the application of a recent BTA decision where a taxpayer was permitted to make a retroactive consolidated… Read More

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Ohio sales / use tax: Statute expanding oil & gas exemption applies retroactively to purchases of hydraulic fracturing equipment

December 31, 2019

The Tenth District Ohio Court of Appeals recently applied a statutory amendment clarifying the oil & gas exemption for Ohio sales & use tax retroactively. Interestingly, while this appeal was pending at the Board of Tax Appeals, the legislature amended the statute to clarify the scope of the exemption for fracking equipment. Although legislation is… Read More

Ohio sales / use tax: High-speed communication cable lines are now nontaxable real property improvements creating significant refund opportunity for taxpayers

October 28, 2019

The Ohio Board of Tax Appeals recently overturned precedent and held that the installation of industry-standard communication lines constituted nontaxable real property improvements rather than taxable business fixtures. Nationwide Mutual Insurance Co. v. McClain, Ohio BTA Case No. 2018-313 (October 22, 2019). Despite a previous ruling that the same type of cabling was a business… Read More