February 1, 2006 - CAT First Return Deadline
is Feb. 10: Businesses Can Go Online for Smooth
COLUMBUS, Ohio - – Ohio business taxpayers
have fewer than ten days to go before the due date of the
inaugural return of the state’s new business tax, the
Commercial Activity Tax (CAT). The CAT’s first filing
deadline is Friday, Feb. 10.
The Ohio Department of Taxation (ODT) is encouraging
businesses to file their CAT returns online through the Ohio
Business Gateway (obg.ohio.gov) to save time
and avoid a last-minute mailing crunch.
Taxpayers who do not know the extent of their taxable gross
receipts by the filing deadline can file an estimated return.
That option requires a tax payment based on at least 85% of
the actual, taxable gross receipts. The remainder is due on
the next scheduled return. The first filing period for CAT
covers the period July 1 through Dec. 31, 2005.
The CAT is a tax for the privilege of doing business in Ohio.
It is being phased in over the next five years as two other
business taxes, the corporation franchise and tangible
personal property, are phased out.
“It’s fair, and it encourages capital investment,” Ohio Tax
Commissioner William W. Wilkins said of the CAT. He also
described it as a broad-based tax.
Businesses with taxable gross receipts of $150,000 or more
must pay the CAT. To date, more than 260,000 businesses and
individuals have registered with ODT. Although the
registration deadline was Nov. 15, 2005, businesses and
individuals who have not registered can still do so. ODT has
not been imposing penalties on late registrants but may do so
in the future. The penalty is $100 per month to a maximum of
People with questions about the CAT may visit the ODT web
site at tax.ohio.gov and look under “What’s
New” for the latest CAT information, or may call
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For more information, contact Gary Gudmundson, ODT
Communications Director, at (614)644-6896.