Reminder: Muni tax deadline is March 1

Written on Mar 01, 2018

OSCPA staff report

Today is the deadline for businesses with a calendar year-end to opt in and notify the cities in which they operated last year if they plan to centrally file municipal net profits taxes for the 2018 tax year (make quarterly estimated payments in 2018 and file the tax return in 2019).

Click here to opt in now with the Ohio Department of Taxation. More details about this new filing and payment option are spelled out in ODT’s Taxpayer Information Guide.

Also by March 1, businesses that intend to file centrally must notify each municipal corporation in which the taxpayer conducted business during the previous taxable year, on Form MNP-MN. The tax commissioner has prescribed two versions of the form: one for tax preparers and the other for taxpayers.

For calendar year filers, the first quarterly estimated tax payment for 2018 will be due on April 17, with the 2018 annual return due in April of 2019. Businesses not operating on a calendar year have more time; they must register by the first day of the third month of their fiscal year.

Hundreds of businesses have already opted in to the system. That will continue thanks to a court decision announced Feb. 21 throwing out a city lawsuit and denying an injunction that would have halted registration.

Franklin County Common Pleas Court Judge David Cain ruled the Ohio Constitution “makes it clear that the general assembly has the power to pass laws that limit the power of municipalities to levy taxes.”

Close to 150 cities had filed two lawsuits – later merged into one by the court – claiming the municipal income tax reforms passed into law last year as part of Am. Sub. House Bill 49 were unconstitutional. An appeal to last week’s ruling is expected.

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