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
State Tax Administrators Teaming Up
December 14, 2009
Clearly, state tax enforcement is becoming more aggressive and complex. Not only are state revenue agencies utilizing the Internet more and more to search for and identify businesses directing sales activities towards their respective states, but these agencies are also entering into agreements to share information with each other. Ohio is a member of at… Read More
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