Tax Data Series: Corporation Franchise Tax

Corporate Franchise Tax: Number of Corporations and Reported Tax Liability, by Tax Base and Industry, Tax Year 2005

The attached tables show a total reported tax year 2005 Ohio corporate franchise tax liability after all credits of $845.3 million. The reported liability before credits (including litter tax) was $1.04 billion, but tax credits reduced the net liability by $199.5 million. A total of 93,225 corporations were represented on the 2005 returns, with 19,276 corporations paying the tax based on net income and 27,933 paying the tax based on net worth. The number of corporations paying the $50 or $1,000 minimum tax amounted to 46,016. However, 80 percent of the tax liability before credits was based on net income (compared to 76 percent in 2004) and 19 percent was derived from the net worth base (compared to 21 percent in 2004). The remainder of the tax was reported as liability under the minimum tax.

Tables CF-1A and 1B show the number of corporations and the reported total tax liabilities by tax base for each of nine broad industrial classifications. The largest total tax liability was reported by manufacturing corporations, which accounted for 33 percent of the total.

Tables CF-2A and 2B categorize the corporate returns by the size of the reported tax liability per return. The number of corporations and total tax liability are shown for each of the alternative tax bases for 18 tax liability classes.

Returns reporting over $500,000 in tax liability were responsible for 48 percent of the total reported liability even though they covered less than one percent of total corporations.

The data shown on these tables were compiled from returns filed for tax year 2005 with the Ohio Department of Taxation.

NOTE: These tables do not include data from the tax returns of financial institutions. Data from financial institution returns are shown on a separate table (CF-5).

View all the Corporate Franchise Tables CF 1-5 cf1-5ty05.pdf

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