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On March 15, 2022, the Ohio Supreme Court determined that the Ohio Board of Tax Appeals (BTA) must apply the true object test when determining whether a bank purchased nontaxable custom software or taxable services. The taxpayer was a bank that purchased computerized services which allowed the bank to run transactions on a daily basis…

The Ohio Department of Taxation recently issued an FAQ addressing the gross receipts calculation regarding remote sellers’ registration and tax remittance requirements. Following South Dakota v. Wayfair, Ohio required remote sellers to register with the Department and begin collecting sales tax if the seller had greater than $100,000 in gross receipts or at least…

The Ohio Supreme Court recently held that Cincinnati’s billboard excise tax is unconstitutional because the tax violated the First Amendment of the United States Constitution, finding that Cincinnati’s need to raise revenue by imposing the tax solely on a small number of billboard operators did not survive strict scrutiny.

In 2018, the Cincinnati City Council…

On August 17, 2021, the Ohio Department of Taxation finalized amendments to its rule governing the determination of resident status for personal income tax purposes. See our prior coverage of the draft (now finalized) rule here. The amendments are intended to modernize the factors to be considered – and to be disregarded – in…

Apple recently appealed an Ohio Commercial Activity Tax (CAT) assessment, alleging that the Department of Taxation improperly treated receipts from sales made through its app store as Apple’s receipts for purposes of determining its tax base under the CAT.  Ohio law allows agents to exclude gross receipts (other than commission) from the agent’s CAT base.…

The Ohio Department of Taxation recently proposed amendments to its rule governing the determination of resident status for personal income tax purposes.  The current rule identifies factors considered in making a determination of an individual’s domicile (e.g., the number of contact periods in Ohio during a taxable year and the individual’s activities in tax years…

The Ohio Supreme Court held that under the Commercial Activity Tax (“CAT”), Defender Security Company’s (“Taxpayer”) gross receipts from selling alarm monitoring service contracts to ADT Security Services, Inc. (“ADT”) should be sourced to the location where ADT itself receives the benefit from purchasing these contracts, rather than the location of the ultimate consumer of…