Are You Maximizing the Ohio Sales and Use Tax Exemption for Packaging Equipment and Materials?
December 11, 2009
Ohio provides a very broad packaging exemption for retail vendors and manufacturers, among others. Packaging material is exempt from Ohio sales and use tax if it restrains movement of the enclosed contents in more than one plane of direction. Further, the exemption is not limited to packaging in which the product is delivered to the… Read More
Voluntary Disclosure, a Procedure to Minimize Delinquent State Tax Obligations
December 9, 2009
As state tax attorneys, we commonly encounter situations where a company has a state tax obligation with a foreign state without even being aware that such an obligation exists – for instance, through the presence of an agent or representative performing installation or repair services on the company’s behalf, attendance at a trade show or… Read More
Ohio Board of Tax Appeals Budget Cut By 42%
December 8, 2009
In the budget enacted by Ohio’s General Assembly for the 2010 and 2011 biennium, the amount appropriated to the Ohio Board of Tax Appeals (“BTA”) was reduced by 41.9% from the BTA’s actual FY 2009 expenditures. As a result, the BTA was forced to reduce its staff, including cutting its attorney examiners in half. The… Read More
Ohio Department of Taxation Increasing Audit Staff
December 7, 2009
As provided for in the current state budget, the Department is hiring approximately 100 “revenue producing employees,” most of which are expected to be auditors. The Department’s goal is to have these new employees largely in place and trained by mid-2010, hopefully resulting in an increase in revenue for fiscal year 2011. This influx of… Read More
Are You Paying Ohio Sales Tax on Leased Employees?
December 4, 2009
Otherwise taxable “employment services” are exempt if the personnel are assigned to the purchaser on a permanent basis under a one-year contract. This does not mean the individuals must work for the purchaser forever (or even continuously during the one-year term), but only that each leased employee is intended to be used for an indefinite period of… Read More
Ohio Supreme Court Upholds CAT as Applied to Food Sellers
The Ohio Grocers Association sought a declaratory judgment that the Commercial Activity Tax (CAT) violated Ohio’s constitutional prohibition against excise taxes levied or collected upon the sale or purchase of food for off-site consumption. Commencing in 2005, Ohio’s tax landscape changed substantially by phasing out the personal property and corporate franchise taxes, while phasing in the CAT. Essentially, the… Read More