November 3, 2005 - CAT Registration Deadline is
November 15: Businesses Can Go Online to Meet
COLUMBUS, Ohio -- Companies doing business
in Ohio are being urged to register by the November 15
deadline for the new Commercial Activity Tax (CAT). The
tax on business is being phased in over five years while two
other business taxes – the corporation franchise and tangible
personal property taxes – are being phased out for most
Ohio-based companies with more than $150,000 in taxable gross
receipts in a calendar year and out-of-state companies doing
business in Ohio must register for the tax under provisions
of the state’s most recent two-year budget bill which took
effect July 1.
“We anticipate most Ohio business taxpayers will register on
time. For most, this means they must register by
November 15,” Ohio Tax Commissioner William W. Wilkins
stated. “We’ve worked to make the process as easy as
possible by setting up two options for online registration.
Taxpayers can register either through the Ohio
Business Gateway (obg.ohio.gov) or the Ohio
Department of Taxation (ODT) Web site (tax.ohio.gov).”
Wilkins says there is a one-time fee for registration of $15
for online registration or $20 for a paper registration.
Businesses with multiple member companies pay the fee for
each company but no more than $200. The fee is given as a
full credit when the taxpayer files its first return.
(Scannable paper registration forms are available by calling
ODT at 1-800-282-1782.)
The CAT is a broad-based, low-rate tax on a business’ gross
receipts. It applies to both in-state and out-of-state
businesses and, in general, is based on gross receipts from
the sale of property or the benefit of services received in
Ohio. For the first semi-annual period from July 1 to
December 31, 2005, the CAT rate will be 0.06 percent on gross
receipts in excess of $500,000.
The first return is due February 10, 2006. In addition to
excluding businesses with taxable gross receipts of less than
$150,000, the CAT does not apply to certain other businesses
such as nonprofit organizations, financial institutions,
insurance companies and some of their affiliates.
Financial and insurance companies will continue to be liable
for the corporation franchise tax with no phasing out of the
ODT has sent out two mailings alerting businesses to the CAT
requirements and this week began an advertising campaign
reminding businesses in and outside of Ohio of the
Businesses with CAT questions are encouraged to visit
tax.ohio.gov or call 1-888-722-8829.
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For more information, contact Gary Gudmundson, Communications
Director, at (614)