Snyder and Associates

 

Tax Byte

Mandatory Changes in Ohio's CAT

(Commercial Activity Tax that is, not a feline of any variety)

In 2005, the State of Ohio introduced the Commercial Activity Tax, referred to as the CAT tax (yes, it’s a little redundant), with the intent of making the taxes applied to businesses more equitable across the various forms of business.  At that time, the State eliminated the Ohio Franchise and Ohio Personal Property taxes, which only impacted a segment of the business community, and replaced them with a tax on the gross revenue of all businesses (the CAT tax), which applied to nearly all segments.

 

The CAT returns are due annually on or before May 10th of each year. In the past, businesses with gross receipts under $1,000,000 could mail a paper return and pay the $150 annual fee.  Larger businesses are required to file and pay electronically every quarter.

 

Effective for returns filed after January 1, 2014 ALL returns must be filed either electronically on the Ohio Business Gateway, or via the State’s Telefile option. The Telefile option will be available for commercial activity filers beginning April 16, 2014 and is reported to be quick and easy. The electronic filing requires the taxpayer to have an online Ohio Business Gateway account established at http://business.ohio.gov/.

 

If you want more specific detail, click this link Information Release CAT 2014-01 or give us a call.

http://www.tax.ohio.gov/commercial_activities/information_release/index_cat/cat_2013_03/cat_2014_01.aspx


As always, we appreciate your confidence in us and your referrals.

 

Linda Sheridan, CPA, CVA

 

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