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.

What is a Consolidated Elected Taxpayer?

A consolidated elected taxpayer is a group of entities owned by a common owner. Consolidated elected taxpayers must meet and agree to all of the following requirements:

  • This group elects to include all members of the group having at least 80%, or all members having at least 50%, of the value of their ownership interest owned by common owners during all or any portion of the tax period.
  • Additionally, at the election of the group, all entities that are not incorporated or formed under the laws of a state or of the United States and that meet the elected ownership test, shall either be included in the group or all shall be excluded from the group meeting the selected ownership test (80% or 50%). Please see the cautionary note on the next FAQ before making an 80% or exclusion of all entities that are not incorporated or formed under the laws of a state or of the United States election.

Under this election, the group must agree to file as a single taxpayer for at least the next eight calendar quarters (two years) following the election as long as two or more of the members meet the requirements. Such election also requires entities in the group that may not have enough contacts (nexus) to also be included as part of the elected consolidated taxpayer group.

A major benefit of this election is that for most taxpayers, taxable gross receipts between members of the group are not subject to the CAT. (See Information Release CAT 2005-05, Application of Common Owners and Joint Ventures and Information Release CAT 2005-16, Examples of "Common Owners" and Joint Ventures).

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