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
Church Administrative Offices Denied the Real Property Tax Exemption
January 6, 2010
Churches and other places of worship have had two available exemptions from Ohio real property taxes, but this may be changing. Property where public worship actually occurs is specifically exempt. However, since this public worship exemption does not encompass buildings used by churches for ancillary purposes, such as administrative offices, churches have historically been granted… Read More
New Sourcing Rules for Ohio Sales Tax Effective January 1, 2010
December 28, 2009
As part of Ohio’s participation in the Streamline Sales/Use Tax Project, Ohio was forced to switch to destination based sourcing for sales tax purposes. Now, since the governing rules have been relaxed, Ohio will revert back to origin sourcing for most sales effective January 1, 2010. The most significant change is with respect to delivery sales (i.e., mail order,… Read More
Snowbirds: Watch Out For Ohio’s “Contact Period” Test!
December 17, 2009
Ohio has adopted a unique test for determining who is considered an Ohio resident for individual income taxes. Based upon the number of “contact periods” an individual has in Ohio during a given year, a presumption is created as to the individual’s residency. A “contact period” occurs when an individual is in Ohio for any… Read More
Caution: Appealing to the Ohio Board of Tax Appeals
December 16, 2009
Again and again, we see taxpayers lose their right to appeal assessments issued by the Ohio Department of Taxation due to clerical and administrative errors. The requirements to perfect an appeal to the Ohio Board of Tax Appeals (BTA) are “finicky” to say the least, and taxpayers are not afforded any leniency in this regard. … Read More