Commercial Activity Tax

Taxpayer permitted to correct fatal mistake by retroactively making consolidated election for Ohio commercial activity tax and excluding intercompany receipts from tax.

The Ohio Board of Tax Appeals recently allowed a taxpayer to retroactively elect to be taxed as a consolidated taxpayer for Ohio commercial activity tax, even after an audit had commenced. Nissan North America, Inc. v. McClain, Ohio BTA Case No. 2016-1076 (October 9, 2019). Even though Nissan failed to elect consolidated status when it... Read More

Out-of-state businesses with little-to-no connection with Ohio owe commercial activity tax based upon their customers’ subsequent shipment of products to Ohio.

Ohio’s 10th District Court of Appeals affirmed the Board of Tax Appeals’ decision upholding commercial activity tax (CAT) assessments issued to a Georgia business with no activities in Ohio and minimal (if any) direction towards the state’s market. The Court held that application of the Ohio CAT’s market-based situsing principals to the taxpayer’s, Greenscapes Home... Read More