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.

Are "gross receipts" and "taxable gross receipts" the same?

No. "Gross receipts" reflect the total amount realized, without deduction for the cost of goods sold or other expenses incurred, in a transaction or transactions that contribute to the production of gross income including the fair market value of any property and any services received, and any debt transferred or forgiven. Gross receipts include, but are not limited to:

  • All amounts received from the sale, exchange, or disposition of property to or with another;
  • All amounts received from the performance of a service;
  • All amounts received from rents or another's use or possession of property or capital; or
  • Any combination of the above.

"Taxable gross receipts" means gross receipts sitused (sourced) to Ohio, based on the following:

  • Gross rents and royalties from real property located in Ohio;
  • Gross rents and royalties from personal property in Ohio to the extent the personal property is located or used in Ohio;
  • Gross receipts from the sale of electricity and electric transmission and distribution services in the manner provided under section 5733.059 of the Revised Code;
  • Gross receipts from the sale of real property located in Ohio;
  • Gross receipts from the sale of personal property if the property is received in Ohio by the purchaser. In the case of delivery of personal property, the place at which such property is ultimately received after all transportation has been completed shall be considered the place where the purchaser receives the property. Direct delivery in this state, other than for purposes of transportation, to a person or firm designated by a purchaser constitutes delivery to the purchaser in this state, and direct delivery outside this state to a person or firm designated by a purchaser does not constitute delivery to the purchaser in this state, regardless of where title passes or other conditions of sale;
  • Gross receipts from the sale, exchange, disposition, or other grant of the right to use trademarks, trade names, patents, copyrights, and similar intellectual property to the extent that the receipts are based on the amount of use of the property in this state;
  • Gross receipts from the sale of transportation services by a motor carrier in proportion to the mileage traveled by the carrier during the tax period in this state to the mileage traveled by the carrier everywhere;
  • Gross receipts from the sale of all other services, and all other gross receipts not otherwise addressed in the proportion that the purchaser's benefit in this state with respect to what was purchased bears to the purchaser's benefit everywhere with respect to what was purchased.

If the situsing provisions do not fairly represent the extent of a person's activity in this state, the person may request, or the tax commissioner may require or permit, an alternative method. Such request by a person must be made within the applicable statute of limitations set forth in this chapter. (See Information Release CAT 2005-17, "Taxable Gross Receipt" Defined).

Cautionary note: Gross receipts received from sales to nonprofit organizations in this state or from this state, its agencies, its instrumentalities, and its political subdivisions are taxable gross receipts.