Information Release

CAT 2013-02 - Commercial Activity Tax: Taxable Gross Receipts from the Sale of Motor Fuel Used on Public Highways - Issued February, 2013; Updated May, 2013; Updated December, 2014

On December 7, 2012, the Ohio Supreme Court decided in Beaver Excavating Co, et. al. v. Testa, Slip Opinion No 2012-Ohio-5776 that the tax collected with regards to taxable gross receipts relating to motor fuel used on public highways must be dedicated for highway purposes.

As such, for the time period of December 7, 2012 through June 30, 2014, taxpayers impacted by this decision must track those receipts relating to motor fuel used on public highways separately from all other taxable gross receipts for purposes of reporting to the Department.

A mechanism was designed for taxpayers to report their bifurcated receipts. Beginning with the commercial activity tax (CAT) return due on August 10, 2013 and ending with the tax return due August 10, 2014 (1)(2)(3), a taxpayer is required to indicate on its return the portion of the taxpayer’s receipts attributable to motor fuel used for propelling vehicles on public highways, railways, and waterways. Please note, a taxpayer that reports such receipts may not utilize the statutory estimation procedure.

Please contact the Department with any questions at 1-888-722-8829.

(1) Because August 10, 2013 falls on a non-business day, pursuant to section 1.14 of the Revised Code, the return due date was extended to August 12, 2013

 (2) Because August 10, 2014 falls on a non-business day, pursuant to section 1.14 of the Revised Code, the return due date was extended to August 11, 2014.

(3) If a person is an annual taxpayer, such person will need to appropriately account for its taxable gross receipts relating to motor fuel used on public highways on its annual return due May 10, 2015. Because May 10, 2015 falls on a non-business day, pursuant to section 1.14 of the Revised Code, the return due date is extended to May 11, 2015.