Municipal Net Profit Tax

Municipal Net Profit Tax: Table of Contents

Registration is Now Open - Click Here

The enactment of HB 49 provides business taxpayers the option, beginning with the 2018 tax year, to file one municipal net profit tax return through the Ohio Business Gateway (the Gateway) for processing by the Department of Taxation. The Department will handle all administrative functions for those centrally-filed returns and will distribute payments to the appropriate municipalities. The Department will also handle audits and appeals.

About the Municipal Net Profit Tax

Registration

Taxpayers must make an election to file with the Department on or before the first day of the third month of their taxable year. For example, taxpayers that operate on a calendar year basis are required to opt-in to file with the commissioner on or before March 1, 2018 for taxable year 2018. The election will remain in effect until terminated by the taxpayer.

Taxpayers can make the election to file with the commissioner two ways:

  1. Electronically through the Department’s registration portal.

    You are able to submit one spreadsheet to register multiple taxpayers. After completing the first registration, along with Schedule A and B (if applicable), select “Exit Form.” You will then be returned to page 1 of the registration form where you can begin entering information for the next taxpayer. All data will be loaded into a single spreadsheet that can be saved and sent to the Ohio Department of Taxation.
  2. By submitting a paper registration form – Form MNP-R available at http://www.tax.ohio.gov/Forms.aspx.

Taxpayers opting-in with the Department of Taxation prior to February 2018 will not immediately receive a municipal net profit tax account number or registration confirmation letter.  Municipal net profit tax account numbers will be generated in mid-February 2018 and registration confirmation letters will be mailed at that time.  If you’d like to confirm receipt of your registration prior to February, please contact the Department at 1-844-238-0403.

In making the election, the taxpayer must register with the Department and also notify all municipal corporations that the taxpayer conducted business in during the previous year unless the taxpayer is a new business. Contact information for cities and villages can be found here:  http://www.tax.ohio.gov/municipalities/municipal_income_tax_forms.aspx.  New businesses need only register with the Department.

Taxpayers who are not registered with the Department for the municipal net profit tax must register first before filing any return or making any payments.

The administration of the tax for periods prior to taxable year 2018 and for periods which the taxpayer has not opted-in with the Department will be handled by the applicable municipal corporations or third-party administrators.

Note: Sole proprietors and disregarded entities are not eligible to opt-in with the Department and should continue to file with municipalities.

Filing Due Dates

Estimated Payment Due Dates

  • Payments of estimated combined tax liability for the current year are due as follows:
    • 22.5% must be paid by the fifteenth day of the fourth month of their taxable year.
    • 45% must be paid by the fifteenth day of the sixth month of their taxable year.
    • 67.5% must be paid by the fifteenth day of the ninth month of their taxable year.
    • 90% must be paid by the fifteenth day of the twelfth month of their taxable year.
  • If the due date falls on a weekend or holiday, the report or payment is due the next business day.

Annual Filing Due Date

  • Annual tax returns are due the 15th day of the fourth month following the end of the taxpayer’s taxable year.
    • If the due date falls on a weekend or holiday, the report or payment is due the next business day.

Click here for the due date table.