Business Tax Amnesty

Business Tax Amnesty

News from the Ohio Department of Taxation

Lots of questions are coming in to our office right now pertaining to all small businesses operating in Ohio. We feel it important to review the highlights pertaining to the current:

Business Tax Amnesty

There are currently two amnesty programs:

• From October 1, 2011 to May 1, 2013, the state will offer Use Tax Amnesty for use tax due on purchases made by businesses on or after January 1, 2009.

• From May 1 to June 15, 2012, the state will offer General Tax Amnesty for most business taxes.

What is Use Tax?

Use Tax was passed into law in the 1930’s as a companion tax to sales tax. In general, a business either pays sales to a vendor or remits use tax to the department of taxation for taxable purchases of tangible personal property or certain services. If you have paid Ohio sales tax on an item, then you do not owe Ohio Use Tax.

What is General Tax Amnesty?

General Tax Amnesty will be available for any business with overdue liabilities in any of the following taxes: Commercial activity, corporation franchise, sales tax, cigarette or other tobacco products, intangible property and employer withholding. General Tax Amnesty also applies to taxes owed by individual taxpayers. During the general tax amnesty, taxpayers can pay unreported and underreported tax delinquencies with NO penalties and one half of the interest charges for taxes due and payable through May 1, 2011.

What is the use tax rate?

Use tax rate is the same as the sales tax rate. You can look up rates by county using the department’s website