Financial Institutions Tax (FIT)
The financial institutions tax (FIT) was enacted in Am. Sub. H.B. 510, which was passed by the 129th General Assembly. The bill also repealed the dealer in intangibles tax by providing that the tax is in effect only for tax years prior to 2014. In 2014, a taxpayer will be responsible for filing either a financial institutions tax report or the commercial activity tax return instead of the dealer in intangibles tax return. Taxpayers with dealer in intangibles tax liability for years prior to 2014 that have not filed all required returns should still file those returns with the department.
The FIT is a new tax for many corporations previously subject to the corporation franchise tax. Beginning with tax year 2014, and continuing for every tax year thereafter, the FIT is a business privilege tax that is imposed on financial institutions organized for profit and doing business in Ohio or otherwise having nexus in or with this state under the Constitution of the United States.
Financial institutions are defined for the purposes of the tax to include the following:
- Bank organizations, which are defined to include the same classes of institutions previously subject to the corporation franchise tax;
- Holding companies of bank organizations, except for diversified savings and loan holding companies and grandfathered unitary savings and loan holding companies or an entity that was a grandfathered unitary savings and loan holding company on January 1, 2012 (with some exclusions); or
- Nonbank financial organizations, which are defined to include persons, other than bank organizations or holding companies, that are engaged in business primarily as small dollar lenders.
The FIT is based on the total equity capital in proportion to the taxpayer's gross receipts sitused in Ohio, with situs based on either where a taxpayer's customers are deemed to benefit from the taxpayer's services or, in the case of some receipts, where the taxpayer's regular places of business are located.
About the FIT
Pursuant to Ohio Revised Code section 5726.03, FIT taxpayers are required to remit each tax payment and file each annual or estimated tax report electronically through the Ohio Business Gateway (OBG). Taxpayers who are not registered for the FIT must register first before filing any reports. Taxpayers are required to register under the reporting person and list all of the consolidated members.
You will need the following information for the reporting person as defined in Ohio Revised Code section 5726.01(N) to complete your registration:
- Legal name and trade name (DBA), if applicable.
- Primary address, mailing address, email address and phone number of company.
- Type of ownership and fiscal year end.
- Incorporation date, state of incorporation and country of incorporation.
- NAICS Code.
- Name, address, email address and phone number of contact person.
- Names, addresses and federal identification numbers (FEINs) of the consolidated members.
Your FIT account number will be issued upon completion of your application.
After accessing the OBG website, select 'Ohio Taxation - New Account Registration and Fuel Permit,' then select 'Financial Institutions Tax (FIT)' to start the registration process.
Other FIT Resources