Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Who is subject to the municipal income tax under Chapter 5745?

The Chapter 5745 municipal income tax applies only to the following taxpayer companies:

·         electric light companies, and

·         local exchange telephone companies.

An electric light company or a telephone company is a “taxpayer” within the meaning of Chapter 5745 if pursuant to Chapter 5745 the electric light company or telephone company is subject to taxation by any Ohio municipality for the taxable year. An electric light company or a telephone company is subject to the Chapter 5745 municipal income tax in each Ohio municipality that has enacted an income tax and in which the company has property, payroll or sales during the taxable year. An “electric light company that is not an electric company” is a taxpayer within the meaning of Chapter 5745 only if the company has taxable nexus and elects to be a Chapter 5745 taxpayer.

Companies other than electric light companies and local exchange telephone companies having taxable nexus with an Ohio municipality that has enacted an income tax must file and pay municipal income tax in accordance with Ohio Revised Code (R.C.) Chapter 718 and the ordinances and regulations of each such municipality with which the company has nexus.