Information Release

CAT 2005-03 - Excluded Person -- Consolidated Elected and Combined Taxpayer Groups - December, 2005

This rule clarifies whether a consolidated elected taxpayer or combined taxpayer group must register and pay the commercial activity tax when total taxable gross receipts fall below one hundred fifty thousand dollars. This rule is now final and effective. Please direct any questions to the Commercial Activity Tax Division of the Ohio Department of Taxation at 1-888-722-8829.

Rule 5703-29-04 Excluded Person – Consolidated Elected and Combined Taxpayer groups.

(A) A consolidated elected taxpayer group is formed by an election pursuant to section 5751.011 of the Revised Code. To make the election, the group must register as such a taxpayer. Even if the group’s total taxable receipts are below $150,000, with or without taking into account gross receipts excluded because they are from other members of the group, the group must still pay the flat (minimum) tax of $150.  

(B)(1) A combined taxpayer group exists pursuant to the requirements of section 5751.012 of the Revised Code.  This group is not formed by an election. Accordingly, if the group’s total taxable receipts are below $150,000, such group is not required to register or pay the flat (minimum) tax.  

(2) Within 30 days of having taxable gross receipts of $150,000 or more, such combined taxpayer group must register for, and is subject to, the commercial activity tax.