Registration opens for muni net profit tax

Written on Oct 19, 2017

OSCPA staff report

The Ohio Department of Taxation announced Oct. 19 it has opened registration for businesses to ‘opt-in’ for centralized filing and state administration of the municipal net profit tax for the 2018 tax year.

As it does so, Ohio Tax Commissioner Joe Testa is emphasizing the importance of feedback from CPAs and other interested parties.

“The challenges are going to be very different for them, depending on their business or clients,” Testa said on the latest episode of OSCPA Spotlight. “They might be in one city, or they might have a client that's a business that's all over the state. Depending on that, their perspective and questions and issues are going to be somewhat different. So, the more input we get from all those perspectives in helping their clients to file the better.”

Ohio’s biennial budget bill, House Bill 49, passed this past summer, will enact optional centralized collection on municipal net profits taxes through the Ohio Business Gateway. Businesses that opt-in will have the advantage of filing one municipal net profit tax return that encompasses every municipality in which they are required by law to report. The Department of Taxation will process all the centrally filed returns and distribute tax payments to the appropriate municipalities. The Department will also be responsible for all administrative functions, including appeals and audits.

Businesses that operate as a sole proprietor or single-member LLC are not eligible, and should continue their current method of filing.

ODT is seeking input to maximize the utility of the new system both for businesses and municipalities. The Business advisory group, comprised of OSCPA members, is identifying top priorities for taxpayer simplicity, while the Municipalities working group, comprised of six cities and RITA, is working on how best to coordinate data exchange.

Watch the episode above now to hear Testa’s thoughts on the importance of CPA input, both about their business and in testing the new system.

Registration is available now by filling out and submitting a paper registration form, and it will be made available online soon. For more information, visit www.tax.ohio.gov, or call 844.238.0403.

3 comments

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  1. Roger Shank | Oct 23, 2017
    This does not work???
  2. Roger Shank | Oct 23, 2017
    R E Shank| Oct 23, 2017  his entire effort has ended up useless as is typical with politicians.  Why would you limit the Schedule C and single member LLC.  All of your effort for the last three years has been worthless plus all the legal challenges. 
  3. R E Shank | Oct 23, 2017
    This entire effort has ended up useless as is typical with politicians.  Why would you limit the Schedule C and single member LLC.  All of your effort for the last three years has been worthless plus all the legal challenges. 

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