Shaking things up in state and local tax
Shaking things up in state and local tax
On September 26, 2022, the Ohio Court of Common Pleas in Morsy v. Dumas, held that Cleveland’s municipal income tax on remote workers was unconstitutional on an “as applied” basis. The taxpayer lived in Pennsylvania and was employed by a company located in Cleveland, Ohio.
Prior to the COVID-19 pandemic, Morsy would stay in…
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…
On February 7, 2022, the Ohio Court of Appeals upheld the constitutionality of a statute providing that, during the duration of a stay-at-home order issued by the Governor related to the COVID-19 pandemic, and for thirty days after its end, any day on which an employee works from home because of the order shall be…
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.…
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay is joined by Tony Long, Director of Tax and Economic Policy at the Ohio Chamber of Commerce. During their conversation, they cover highlights from Ohio’s latest legislative session, review details of the state’s budget and reference…
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 Board of Tax Appeals found that banking software was subject to sales tax in Cincinnati Federal Savings & Loan v. McClain, Case No. 2018-2247 (December 22, 2020). The banks purchased software for their online banking system. After initially paying tax on the purchases, the banks filed refund claims, claiming that the software…
