Businesses encouraged to register for muni net profits tax

Written on Oct 26, 2017

The Ohio Department of Taxation (ODT) on Oct. 19 began allowing businesses to opt in to centralized filing and state administration of the municipal net profit taxes, and suggests OSCPA members encourage their organizations and clients to do so. The centralized collection option officially kicks in Jan. 1, 2018.

Here’s how to do so electronically:

1. Go to www.tax.ohio.gov/MunicipalTax.aspx.
2. Click on the registration link.
3. Open and save the Excel spreadsheet.
4. Select the “Enable Editing” square, then the “Enable Content” square.
5. Select Step 1, “Start Muni Registration.”
6. Follow the instructions in the browser window.

Further guidance is available via the ODT website.

Ohio’s biennial budget bill, House Bill 49, passed in June, enacted optional centralized collection of municipal net profits taxes through the Ohio Business Gateway (OBG). 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. ODT is currently working with commercial software vendors so that tax practitioners will be able to upload taxpayers’ information directly into the OBG.

ODT will process all the centrally filed returns and distribute tax payments to the appropriate municipalities. The Department will 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.

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