News Release
February 4, 2001 - Columbus, Ohio
- Use Tax Facts
What Ohio taxpayers should know about their use tax
responsibilities
COLUMBUS -- Ohio Tax Commissioner Tom Zaino
today outlined some general guidelines for taxpayers who, for
the first time, are being asked to pay any state use tax they
owe when filing the 2000 Ohio Income Tax return.
"This is new to most people and we know there will be some
confusion," Zaino said. "We’re also aware that, being the
first year, taxpayers didn’t have the opportunity to keep
track of their purchases. It will take time for people to get
up to speed. We’ll adjust our expectations of taxpayers
accordingly."
Taxpayers most commonly owe use tax when they buy from a
catalog or internet retailer who collects no tax. The use tax
is equal to the sales tax in the county where the taxpayer
lives. The use tax ensures a ‘level playing field’ for Ohio
retailers who are required to charge and collect the sales
tax.
Commissioner Zaino says the guidelines are meant to help
taxpayers understand what the Ohio Department of Taxation
(ODT) is expecting from them with this new approach to
collecting an old tax, "Our main goal is to educate people
about the tax. We trust and expect people to make a good
faith effort to pay what they owe." Ohio is the 17th state to
include a use tax line or form with the income tax return.
USE TAX GUIDELINES
WHEN USE TAX APPLIES:
- Use tax is owed on any purchase from an out-of-state
retailer (usually catalog or internet) who collects no tax.
- ODT is focusing on purchases where no
tax was collected or paid.
ENFORCEMENT:
- ODT is asking taxpayers to honestly report and pay what
they owe. In this first year, a good faith effort will
largely satisfy ODT scrutiny.
- If ODT gains information that someone owes but has not
paid the tax, that person will be contacted by letter and
asked to pay. If they don’t, they’ll be subject to paying the
tax, a penalty equaling 15% of tax owed, and interest.
A tip for avoiding errors!
Taxpayers should report and pay only the
amount of use tax they calculate on the
Use Tax Worksheet included in the Ohio
Individual Income Tax booklets.
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For more information contact:
Gary Gudmundson, Communications Director
Ohio Department of Taxation
(614) 644-6903
Taxpayers most commonly owe use tax when they buy from a
catalog or internet retailer who collects no tax. The use tax
is equal to the sales tax in the county where the taxpayer
lives.