When an Ohio business operates in multiple municipalities, they file a separate net profit tax return with each municipality. Under Ohio’s new budget bill (Am. Sub. H.B. 49), a business may elect to have the state of Ohio administer the business’ municipal tax. This would allow the business to file a single return for all the municipalities they need to file in. 

For clients filing in multiple Ohio municipalities this could result in a more simplified way to remit payments and file tax returns as it would all be centralized to the Ohio Business Gateway.  The deadline to elect in to the program is March 31, 2018 for the 2018 tax filing year. The rules do not apply to sole proprietorships, individuals and disregarded entities. 

In looking at our corporate client base we have determined that it is beneficial to elect into the program only if an entity is filing in 5 or more municipalities a year. If your business meets this threshold we will be contacting you in the coming weeks to get registered. If you aren’t filing in 5 or more Ohio municipalities then we won’t be making any changes at this time. 

There is a currently a lawsuit being brought against Ohio by more than 70 cities challenging the state’s right to administer the net profit tax. We will keep you updated as to how this lawsuit may affect the future of this program. 

Please feel free to reach out to one of our tax professionals with additional questions on this matter.