Information Release

PAT 2014-01 - Petroleum Activity Tax: Licensing  - Issued January, 2014 

The purpose of this information release is to provide guidance to suppliers that are subject to the petroleum activity tax (PAT). Please review PAT 2013-01 for more information on who qualifies as a supplier subject to the PAT.

All suppliers that will be subject to the PAT as of July 1, 2014 must apply for a license with the Tax Commissioner on or before March 1, 2014. A person that becomes a supplier after March 1 must obtain a license within thirty days of engaging in the distribution or importation of motor fuel into Ohio for consumption. Initial licensing will begin in mid-February, 2014 through the Ohio Business Gateway at business.ohio.gov. Additionally, all suppliers are required to renew their licenses annually on or before March 1.

Please subscribe to the PAT tax alerts at http://www.tax.ohio.gov/ohtaxalert.aspx to ensure that you receive the most up-to-date information regarding the licensing application.

Fees

The following license fees apply to suppliers: 

Importers: Applicants that solely import or cause the importation of motor fuel for sale, exchange, or transfer in this state  $300                                  
Distributors (i.e., Rack/Refinery): Applicants that sell, transfer, exchange, or otherwise dispose of motor fuel to a point outside of the distribution system  $1,000
Applicants that operate as both an importer and a distributor  $1,000

Information Needed to Register for the PAT

The following information is required on the application.

• Legal name of the entity;
• Trade name or D/B/A;
• NAICS Code;
• The entity type;
• Primary address;
• Mailing address;
• E-mail address;
• Whether the applicant operates as a distributor (i.e., rack/refinery), importer, or both;
• The type of fuel the applicant intends to sell;
• Personal responsibility information (The PAT imposes personal liability to officers or employees who are responsible for filing the returns and making the payments); and
• Federal identification number (or social security number if operating as a sole proprietor).

Revocation/Cancelation of a License

Additionally, the Commissioner may revoke a supplier’s license if such person files a false return, fails to file their returns, or fails to pay their liability. A supplier should cancel its license when it ceases being a supplier. However, a supplier may not cancel an account if such account has outstanding tax liability, including penalty and interest.

Penalty For Failing to Register

A supplier, who engages in distributing, importing, or causing the importation of motor fuel for consumption in this state without obtaining a license within the appropriate time, may be subject to civil or criminal sanctions.

Commercial Activity Tax Account

Beginning on July 1, 2014, receipts from the sale, transfer, exchange, or other disposition of motor fuel will be excluded from the definition of gross receipts for purposes of the commercial activity tax (CAT). As we have previously discussed, the suppliers of motor fuel will begin paying the replacement PAT. Regardless, a supplier may remain subject to the CAT for many reasons. For example, a supplier’s business model may include other gross receipts that are not excluded from the definition of gross receipts for purposes of the CAT. Should a supplier need to cancel their CAT account, such supplier will need to submit a CAT CR to appropriately cancel this account. If the supplier is a member of a group, such supplier may need to fill out a CAT AR to remove the member from the group.

Please contact the  Department at 1-888-722-8829 with questions regarding this release.