April 10, 2014 Tax Advisor

 

Mandatory Electronic Filing and Changes to the Minimum Fee

A number of changes to the Ohio Commercial Activity Tax (CAT) became effective Jan. 1. Among those changes is the mandatory online filing of all originally filed CAT returns. Additionally, the minimum tax imposed under the CAT has been modified

Prior to 2014, taxpayers with more than $150,000 in Ohio taxable gross receipts were required to pay a $150 minimum tax (AMT).  Taxpayers also paid .26% on Ohio taxable gross receipts exceeding $1,000,000.

For tax years beginning on Jan. 1, The AMT is tiered and varies from $150 to $2,600.  CAT taxpayers will pay their AMT in accordance with the chart below.  Additionally, the standard CAT rate of .26% will apply to Ohio taxable receipts exceeding $1,000,000.  As a taxpayer’s Ohio taxable gross receipts increase, the benefit of the $1,000,000 exclusion is reduced until fully eliminated for taxpayers with more than $4,000,000 in Ohio taxable gross receipts.

Taxable Gross Receipts
Annual Minimum
Tax (AMT)
Commercial Activity Tax (CAT)
$1 Million or less  $150 No Additional Tax
More than $1 Million but
less than or Equal to $2 Million
 $800 .26% on Ohio taxable gross receipts
exceeding $1 Million
More than $2 Million but
less than or Equal to $4 Million
 $2,100 .26% on Ohio taxable gross receipts
exceeding $1 Million
More than $4 Million  $2,600 .26% on Ohio taxable gross receipts
exceeding $1 Million

Also beginning on Jan. 1, any taxpayer required to file an Ohio CAT return must file all originally filed CAT returns and remit the payment electronically through the Ohio Business Gateway at business.ohio.gov.  Certain amended returns and voluntary disclosure agreements may be filed on paper returns.

For questions on how these changes may affect your taxes, please contact us.

About the Authors

Robert M. Burak

CPA
Partner, Taxation Services

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