I. NON-TAXABLE SERVICES -
A. Personal / Professional Services:
Checkfree Services Corp. v. Harris, Ohio BTA Case No. 2019-43 (October 10, 2024) on appeal before Ohio Supreme Court (Case No. 2024-1569). The BTA held that...more
The Ohio Board of Tax Appeals held that certain financial authorization services, Debit Authorization as described below, are not taxable automatic data processing processing (“ADP) or electronic information services (“EIS”)....more
12/12/2024
/ Appeals ,
ATMs ,
Automated Systems ,
Bank Service Providers ,
Debit and Credit Card Transactions ,
Non-Taxable Service Transactions ,
Payment Systems ,
Remand ,
Sales & Use Tax ,
Tax Appeals ,
Tax Exemptions
Generally, in Ohio, sales of tangible property are taxable unless an exemption exists, whereas services are generally nontaxable unless specifically enumerated as taxable under the Ohio Revised Code. However, Ohio has many...more
In Ohio, sales of tangible personal property are presumed taxable unless an exemption exists. On the other hand, services are presumed nontaxable unless specifically enumerated as taxable under Ohio’s Revised Code. Many of...more
Preparing for significant changes to Ohio commercial activity tax for 2024 – Majority of taxpayers will no longer be subject to CAT following increases in annual exclusions.
Ohio’s Budget Bill (H.B. 33) significantly...more
1. EXEMPTIONS -
A. Equipment Used in Production of Crude Oil and Natural Gas:
Stingray Pressure Pumping, LLC v. Harris, Slip Opinion No. 2023-Ohio-2598. Reversing the BTA, the Court determined five categories of...more
I. EXEMPTIONS -
A. Transportation for Hire:
Battle Axe Construction v. McClain, Ohio BTA Case No. 2022-559 (October 11, 2022). Exemption denied for truck not used primarily to transport property belonging to others....more
2/17/2023
/ Bad Debt ,
Income Taxes ,
IRS ,
Policies and Procedures ,
Sales & Use Tax ,
State and Local Government ,
Tax Audits ,
Tax Liability ,
Tax Litigation ,
Tax Returns ,
Taxation
The OSBA Sales/Use Tax Subcommittee Report discusses recent developments concerning the scope of taxable services, as well as the federal preemption of taxation on internet services which were previously taxable in Ohio....more
The OSBA Sales/Use Tax Subcommittee Report discusses recent developments concerning the scope of taxable services, as well as the federal preemption of taxation on internet services which were previously taxable in Ohio....more
9/27/2021
/ Advertising ,
Employment Tax ,
Excise Tax ,
Responsible Person Liability ,
Sales & Use Tax ,
Suppliers ,
Tax Legislation ,
Tax Liability ,
Tax Litigation ,
Tax Refunds ,
Transportation Contracts ,
Vendors ,
Waste Disposal
The Ohio Supreme Court recently ruled that a waste-hauler was entitled to Ohio’s transportation-for-hire exemption from sales / use tax on trucks used to haul trash to customer-designated locations. In N.A.T. Transportation,...more
I. EXEMPTIONS -
Resale Exemption -
Domokur Aviation Services, LLC v. McClain, Ohio BTA Case No. 2019-694 (September 15, 2020). Applying the Supreme Court’s decision in Pi in the Sky, LLC v. Testa, 155 Ohio State 113,...more
9/28/2020
/ Aircraft ,
Aviation Industry ,
Construction Industry ,
Fitness ,
For-Profit Corporations ,
Gym Memberships ,
IRS ,
Personal Care Products ,
Resale Exemption ,
Sales & Use Tax ,
State and Local Government ,
Technology Sector
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
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
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
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
Ohio Supreme Court rejects taxes on draft beer tap maintenance and cleaning–limits scope of taxation on janitorial-type services....more