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.

Is software exempt from personal property tax?

The Ohio Department of Taxation is taking the position that all software is tangible personal property and, therefore, taxable. This not only covers canned (off-the-shelf) software, but customized software as well. This position has been stated in several recent final determinations to taxpayers, and there are several cases pending before the Board of Tax Appeals where software is at issue.

If the ultimate result of pending litigation is that all software is, indeed, deemed to be part of the taxable personal property tax base, the department will alter its previous policy in the tax year immediately following the court decision and assess all software on a prospective (on-going) basis.

For more information regarding personal property tax and software, please review information release PP 2004-01, Taxation of Software, issued Feb. 14, 2004.