PAT 2014-03 - Petroleum Activity Tax: Sampling - Issued January 2014; Updated February 2014; Updated June 2014
The Ohio General Assembly recently enacted the Petroleum Activity Tax (PAT). This rule provides taxpayers with the guidelines the Tax Commissioner will use when sampling is used in auditing a taxpayer’s records. This rule is now final and effective.
Rule 5703-37-02 Sampling.
(A) As authorized pursuant to division (G) of section 5736.09 of the Revised Code, the Tax Commissioner hereby prescribes sampling methods for the tax imposed under section 5736.02 of the Revised Code that the commissioner may use in lieu of a complete examination of records. The sampling methods include, but are not limited to, the following:
(1) Statistical sampling. Statistical methods of sampling are those procedures that utilize random selection and are capable of projecting population values with a known reliability; and
(2) Non-statistical sampling. Non-statistical sampling includes methods such as block sampling.
(B) The commissioner shall make a good faith effort to reach agreement with the supplier to select the most appropriate sampling methodology.
(1) The failure of the commissioner to reach an agreement with the supplier does not preclude the commissioner from sampling.
(2) In accordance with section 5736.12 of the Revised Code, a supplier that keeps records electronically is required to provide those records electronically to the department of taxation upon the commissioner’s request.