Marketplace facilitators making interstate sales collect Ohio sales tax based upon the consumer’s destination
August 19, 2020
Sourcing sales is critical to determine the appropriate jurisdiction and tax rate for Ohio sales tax collection purposes. Recently, the Ohio Department of Taxation revised Information Release ST 2009-03 to reflect that sales facilitated by “marketplace facilitators” are sourced to the destination of the sale – i.e., the location where the consumer receives the tangible… Read More
PPP loan forgiveness will not result in increased Ohio commercial activity taxes
July 30, 2020
To provide some taxpayer relief in the wake of COVID-19, Ohio is excluding forgiven PPP loan amounts from Ohio’s commercial activity tax (CAT). While generally debt forgiveness is treated as taxable gross receipts for CAT purposes under R.C. 5751.01(F), forgiven PPP loans will be specifically excluded under recently passed H.B. 481. The Ohio General Assembly… Read More
Supreme Court Upholds Cleveland Municipal Income Tax on Nonresident’s Stock Option Income
July 6, 2020
A former Ohio resident could not avoid Cleveland municipal income tax even after retiring and moving to Florida. The Ohio Supreme Court held income generated from employee stock options received as compensation while employed in Cleveland were properly taxed by the City, even though the employee had retired and moved out-of-state before she exercised the… Read More
Ohio sales tax no longer to be imposed on internet access services due to federal restrictions.
June 24, 2020
Beginning July 1, 2020, federal law will permanently prohibit state sales tax on internet access services under the Internet Tax Freedom Act (ITFA). Although Ohio was amongst seven states previously exempt from the federal prohibition, these states cannot tax internet access charges starting July 1, 2020. Ohio will continue to impose sales tax on automatic… Read More