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Ohio 2008 Personal Property Tax Return Reminders
As a reminder, the 2008 Ohio personal property tax return will be the final return.
As a result of tax reform and the phase-out of the tangible personal property tax, the 2008 personal property tax return will be the last required to be filed. Under current law, taxpayers do not have a tangible personal property tax return filing requirement beginning in tax year 2009 and thereafter.
The extended due date for filing the 2008 tax return is Monday, June 16 because June 15 falls on a Sunday. As with the initial deadline, the division or the county auditor must receive the appropriate tax return by the end of business on June 16. Any granted extension must accompany the tax return.
Please review all calculations, particularly the calculations involving the 2008 listing percentage of 6.25 percent.
If Form 920 is required to be filed with a county auditor, one-half of the tax due must accompany the return. The second half of the single-county tax, and the full amount of inter-county tax, will be due September 20. If a Form 945 is filed, the individual counties will bill the amounts directly.
Ohio Commercial Activity Tax - Ohio Department of Taxation Reports Heavy Tax Notifications
In the month of May, the Ohio Department of Taxation CAT Division sent out approximately 20,000 CAT notices. It is anticipated that over the next few weeks an additional 3,000 will be mailed weekly. Most notices are for the following errors:
Form CAT 12 is the return most often not filed. Form CAT 12 is the year-end reconciliation and minimum CAT payment return. For example, in February 2008, form CAT 12 was due for the 2007 registered annual CAT taxpayers. The taxpayer would have reported their 2007 annual Ohio sales and remitted their 2008 $150 minimum tax.
In May, there were approximately 1,600 CAT refund claims pending. Most of the refund claims were filed by taxpayers as a result of taxing everywhere sales vs the correct Ohio sales only.
Ohio Commercial Activity Tax Reminder: Filing Frequency, Ownership and Filing Election Changes
If there are changes with the taxing entity Commercial Activity registration information, a separate form is required to be filed. For example, the following information changes will require an Ohio Department of Taxation Ohio Commercial Activity form be promptly filed:
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Ownership Changes
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Acquisition of a New Company
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Change Filing Election (i.e. Consolidated, Combined, Separate)
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Filing Frequency Change (i.e. Annual vs. Quarterly)
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Mailing Address Change
Please refer to the following forms for additional detail and assistance in filing:
The above changes can also be made on the Ohio Business Gateway web site.
Ohio Sales Tax - Delivery Charge and Refund Change
Ohio House Bill 429, effective July 1, 2008, states that a vendor does not have to refund the sales tax on the part of the price consisting of a delivery charge if the delivery charge is not refunded to the consumer.
Under prior law, whenever a vendor refunded the "full price" on which the sales tax had been paid, the vendor had to also refund the full amount of the tax paid. The "price" includes, among other items, any delivery charges charged by the vendor, including transportation, shipping, postage, handling, crating, and packing the property.
Ohio Sales Tax - Mandated Electronic Filing for all Taxpayers Expected to Pass the Ohio Legislature
Currently, there is an electronic filing requirement for taxpayers collecting more than $75,000 of Ohio sales tax. Ohio House Bill 562 includes language that would mandate all Ohio sales tax filers change their filing method to electronic (i.e. Ohio Business Gateway) The $75,000 collection threshold would be irrelevant.
The current language, included as part of the capital budget/corrections bill, gives the Ohio Tax Commissioner the authority to grant special permission for paper return filings. Ohio House Bill 562 is currently in conference committee, but the provisions expected to change are not expected to impact this upcoming compliance requirement.
The conference committee is expected to delay the effective date to January 1, 2009.
Summit County Sales Tax Rate Increase
Effective July 1 2008, the Summit County sales tax rate will increase to 6.50%. The current sales tax rate is 6.25%.
Click Here for more information on this sales tax increase.
For more information, contact Theresa Mullen, State and Local Tax Leader, at 330-497.2000 or one of our tax partners:
Ronald J. Manse, CPA
Corporate Tax & Succession Planning
Scott T. Warburton, CPA/PFS
Corporate, Individual & Estate Tax Planning
Gregory F. McNulty III, CPA, JD
Individual Tax & Estate Planning
John C. Finnucan, CPA, MSA, JD, MT
Individual & Corporate Tax & Estate Planning
David L. Groves, CPA
Corporate & International Tax Planning
Daniel R. Riemenschneider, CPA, CMA
Corporate & Individual Tax Planning
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