In the wake of the Covid-19 pandemic, the Ohio General Assembly passed H.B. 197 to provide tax relief to Ohio citizens through deadline extensions and flexible tax policy. One provision gave employers flexibility to withhold...more
Most states have recently passed laws requiring marketplace facilitator to collect tax on e-commerce sales by remote sellers made through the marketplace’s platform. Ohio, for example, broadly defines a marketplace...more
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...more
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...more
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...more
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...more
Following enactment of the Families First Coronavirus Response Act and the CARES Act, Buckingham’s team of tax attorneys have been helping clients survive these difficult and unprecedented times in America. Below are some of...more
4/3/2020
/ CARES Act ,
Charitable Deductions ,
Coronavirus/COVID-19 ,
Financial Stimulus ,
Net Operating Losses ,
Paycheck Protection Program (PPP) ,
Payroll Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Exemptions ,
Tax Relief
A common question in many Ohio commercial activity tax (CAT) audits is whether federal tax treatment may be relied upon. Although the statute says it should (R.C. 5751.01(K)), the Tax Commissioner is often reluctant to accept...more
3/4/2020
/ Car Dealerships ,
Commercial Activity Tax ,
Corporate Taxes ,
Financing ,
GAAP ,
Gross Receipts Tax ,
Hyundai ,
Income Taxes ,
Secured Debt ,
State Taxes ,
Tax Appeals
The Ohio Department of Taxation has proposed a regulation change that would prevent taxpayers from making a retroactive consolidated filing election for Ohio Commercial Activity Tax purposes (CAT). The rule change appears to...more
The Tenth District Ohio Court of Appeals recently applied a statutory amendment clarifying the oil & gas exemption for Ohio sales & use tax retroactively. Interestingly, while this appeal was pending at the Board of Tax...more
12/31/2019
/ Amended Legislation ,
Crude Oil ,
Fracking ,
Income Taxes ,
Natural Gas ,
Oil & Gas ,
Remand ,
Retroactivity ,
Sales & Use Tax ,
Sales Tax ,
State and Local Government ,
State Taxes ,
Tax Appeals ,
Tax Exemptions
The Ohio Board of Tax Appeals recently overturned precedent and held that the installation of standard internet cable lines constituted nontaxable real property improvements rather than taxable business fixtures. Nationwide...more
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....more
10/22/2019
/ Abuse of Discretion ,
Affiliates ,
Commercial Activity Tax ,
Corporate Taxes ,
Gross Receipts ,
Gross Receipts Tax ,
Intercompany Transactions ,
Nissan ,
Retroactive Application ,
Tax Appeals ,
Tax Audits ,
Tax Commissions
Buckingham Tax Attorneys Steve Dimengo and Rich Fry recently obtained a favorable ruling from the 9th District Court of Appeals for their client in Karvo Paving Co. v. Testa, 2019-Ohio-3974. This victory enables highway and...more
10/7/2019
/ Appeals ,
Construction Industry ,
Construction Workers ,
Department of Transportation (DOT) ,
General Contractors ,
Highways ,
Lessor ,
Property Owners ,
Property Ownership ,
Public Projects ,
Real Estate Transfers ,
Remand ,
Roads ,
Sales & Use Tax ,
Tax Appeals ,
Tax Exemptions ,
Tax Refunds
The report highlights the recent changes to Ohio law requiring out-of-state sellers and marketplace facilitators to collect tax on sales into the state, as well as recent cases decided by the Ohio Board of Tax Appeals....more
9/20/2019
/ Appeals ,
Department of Taxation ,
E-Commerce ,
Economic Presence Nexus ,
Farms ,
Income Taxes ,
Manufacturers ,
Online Marketplace ,
Out-of-State Companies ,
Sales & Use Tax ,
Suppliers ,
Tax Abatement ,
Tax Exemptions ,
Tax Legislation ,
Tax Liability ,
Tax Litigation ,
Tax Penalties ,
Tax Planning ,
Vendors
Recently, the Ohio Board of Tax Appeals (BTA) denied a taxpayer’s sales tax refund in part because it could not consider the taxpayer’s improperly submitted evidence. In Environmental Quality Management Inc. v. McClain, BTA...more
9/6/2019
/ Client Representation ,
Department of Taxation ,
Document Requests ,
Evidence ,
Final Determinations ,
Income Taxes ,
Notice of Appeal ,
Sales & Use Tax ,
Sales Tax ,
Tax Appeals ,
Tax Litigation ,
Tax Refunds ,
Unlicensed Practice of Law
Nexus for Ohio sales / use tax collection expands effective August 1, 2019 to include out-of-state sellers and marketplace facilitators that deliver at least $100,000 of sales or 200 transactions to Ohio. Ohio’s General...more
We are approaching one year since the U.S. Supreme Court overruled 50 years of precedent to eliminate the “physical presence” bright-line rule for substantial nexus in its South Dakota v. Wayfair decision. Most states have...more
Vendors selling out of state but not collecting sales tax are on a path to suffering severe financial loss. The tax liability could be astronomical – enough to devastate a business – as high as 10% or more of total sales for...more
6/10/2019
/ Business Taxes ,
Corporate Taxes ,
Income Taxes ,
Interstate Commerce ,
Out-of-State Companies ,
Sales & Use Tax ,
Tax Assessment ,
Tax Audits ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Vendors
A Q&A guide to remote sellers’ exposure to sales and use tax in Ohio after the US Supreme Court’s decision in South Dakota v. Wayfair, Inc. in 2018. This Q&A addresses issues including nexus for remote sellers, taxability...more
Ohio’s efforts to substantially simplify its municipal income tax regime – a much-needed reform – is permitted to move forward. Ohio instituted municipal income tax reform, which took effect with the 2018 tax year, permitted...more
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...more
This Report highlights recent cases interpreting the scope of the resale exemption, employment services, and building maintenance and janitorial services. In particular, the recent case concluding that employment services are...more
1/24/2019
/ 501(c)(3) ,
Aircraft ,
Appeals ,
CEOs ,
Charitable Deductions ,
Charitable Donations ,
Deductible Expenses ,
Equipment Tax ,
Exports ,
Farms ,
Janitorial Services ,
Legitimate Business Purpose ,
Manufacturers ,
Promotional Items ,
Sales & Use Tax ,
Services ,
Staffing Agencies ,
State Tax Tribunals ,
Storage Contracts ,
Tax Commissions ,
Tax Exemptions ,
Tax Litigation ,
Tax Refunds ,
Transportation Contracts
The Ohio Supreme Court has held that services provided by a staffing agency (Seaton Corp) to a manufacturer were not taxable when the staffing agency provides on-site management. The controversy centered on whether Seaton...more
Ohio Supreme Court rejects taxes on draft beer tap maintenance and cleaning–limits scope of taxation on janitorial-type services....more
The 10th District Court of Appeals has heard oral arguments to decide the fate of Ohio’s efforts to reform municipal income tax for businesses and enact a centralized filing system. Last year, Ohio enacted H.B. 49, which...more