CAT 2009-01 - Commercial Activity Tax: Change in Due Dates for the Annual Minimum Tax, Annual Returns, Quarterly Returns and Deadline for Cancellation of Accounts – Issued September 2009
The purpose of this information release is to inform taxpayers of the modifications that occurred in Am. Sub. H.B. 1, which take effect October 15, 2009 with regard to the due dates of the $150 annual minimum tax, annual and quarterly returns, and the deadline for cancelling commercial activity tax (“CAT”) accounts.
Annual Minimum Tax Due Date Change
All CAT taxpayers are subject to the $150 annual minimum tax for the privilege of conducting business in Ohio. Since 2007, that tax has been due in February of each year for the privilege year. The General Assembly, in Am. Sub. H.B. 1, moved the due date for that pre-paid tax from February to May of each year. As such, beginning in calendar year 2010 and for each year thereafter, the $150 annual minimum tax will be due no later than May 10th of each year with the annual tax return for calendar year taxpayers or with the first quarter return for calendar quarter taxpayers.(1)
For example, assume a business is registered for the CAT as a calendar year (or annual) taxpayer, and, thus reports its receipts on an annual basis. For calendar year 2009, the taxpayer will file the annual CAT return (form CAT 12) by May 10, 2010. On that report, the taxpayer will report its taxable gross receipts for the 2009 calendar year and along with that report will pay the annual minimum tax of $150 for the 2010 privilege year. Alternatively, if the business is a calendar quarter taxpayer, the taxpayer will pay the $150 annual minimum tax as part of the first quarter 2010 return (rather than the fourth quarter 2009 tax return as was previously required). That return will also be due on or before May 10, 2010.
Quarterly CAT Return Due Date Changes
In addition to changing the due date for the $150 annual minimum tax, the General Assembly also changed the quarterly due dates for CAT returns for purposes of consistency. Previously, the quarterly CAT returns were due on the fortieth (40th) day after the end of each tax period. Am. Sub. H.B. 1 changed the due dates for the quarterly CAT returns to the tenth (10th) day of the second month following each tax period. The chart below shows the new due dates for each filing period.
Filing Period Filing Due Date
January 1 – March 31 May 10th
April 1 – June 30 August 10th
July 1 – September 30 November 10th
October 1 – December 31 February 10th
Cancellation of CAT Accounts
Previously, a taxpayer had until February 10th of the privilege year to cancel their account for that year without being subject to the annual minimum tax for that year. In Am. Sub. H.B. 1, however, coinciding with the due date for the $150 annual minimum tax, the General Assembly moved the cancellation date from February 10th to May 10th of the privilege year to cancel their account.
Please direct any questions regarding this release or any other CAT-related matters to the CAT Division of this Department at 1-888-722-8829.
(1) Pursuant to R.C. 1.14, if the due date occurs on a weekend or holiday the annual minimum tax along with the applicable return is due on the following business day.