Frequently Asked Questions Tool
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 receipts are excluded from gross receipts?
- Interest income except interest on credit sales;
- Dividends and distributions from corporations, and distributive or proportionate shares of receipts and income from a pass-through entity as defined under section 5733.04 of the Revised Code;
- Receipts from the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code, without regard to the length of time the person held the asset;
- Proceeds received attributable to the repayment, maturity, or redemption of the principal of a loan, bond, mutual fund, certificate of deposit, or marketable instrument;
- The principal amount received under a repurchase agreement or on account of any transaction properly characterized as a loan;
- Contributions received by a trust, plan, or other arrangement, any of which is described in section 501(a) of the Internal Revenue Code, or to which Title 26, Subtitle A, Chapter 1, Subchapter (D) of the Internal Revenue Code applies;
- Compensation received or to be received for services rendered for an employer, including health insurance premiums, reimbursements for medical or education expenses, or on account of a dependent care spending account, legal services plan, or any similar employee reimbursement;
- Proceeds received from the issuance of the taxpayer's own stock, options, warrants, puts, or calls, or from the sale of the taxpayer's treasury stock;
- Proceeds received on the account of payments from insurance policies, except for proceeds from business interruption insurance;
- Gifts or charitable contributions received, membership dues received by trade, professional, homeowners', or condominium associations; and payments received for educational courses, meetings, meals, or similar payments to a trade, professional, or other similar association; fundraising receipts received by any person when any excess receipts are donated or used exclusively for charitable purposes;
- Damages received as the result of litigation in excess of amounts that, if received without litigation, would be gross receipts;
- Property, money, and other amounts received or acquired by an agent on behalf of another in excess of the agent's commission fee, or other remuneration;
- Tax refunds and other tax benefit recoveries; any CAT reimbursements received by a member of a combined taxpayer group or a consolidated elected taxpayer group from either:
- Other members of the same group; or
- Non-members that do not meet the ownership test.
- This does not apply to unrelated third parties.
- Pension reversions;
- Contributions to capital;
- Sales or use taxes collected as a vendor on behalf of the taxing jurisdiction from a consumer; and any taxes that are required to be collected by a taxpayer and remitted to a third party taxing jurisdiction on behalf of the customer;
- Federal and state excise taxes on cigarettes, other tobacco products, motor fuel, beer, wine or other intoxicating liquor;
- Receipts realized by a motor vehicle dealer from the sale or other transfer of a motor vehicle to another motor vehicle dealer (transferee) for the purpose of resale but only if the sale or other transfer was based upon the transferee's need to meet a transferee's specific customer's preference for a motor vehicle;
- Receipts from a financial institution for services provided to the financial institution in connection with loans or credit accounts, if such financial institution and the recipient of such receipts have at least fifty per cent of their ownership by common owners;
- Receipts realized from administering anti-neoplastic drugs and other cancer chemotherapy, biologicals, therapeutic agents, and supportive drugs in a physician's office to patients with cancer;
- Funds received or used by a mortgage broker that is not a dealer in intangibles, other than fees or other consideration, pursuant to a table-funding mortgage loan or warehouse-lending mortgage loan;
- Property, money, and other amounts received by a professional employer organization, as defined in section 4125.01 of the Revised Code, from a client employer, as defined in that section, in excess of the administrative fee charged by the professional employer organization to the client employer;
- In the case of amounts retained as commissions by a horse racing permit holder under Chapter 3769 of the Revised Code, an amount equal to the amounts specified under that chapter that must be paid to or collected by the tax commissioner as a tax and the amounts specified under that chapter to be used as purse money;
- Qualifying distribution center receipts (See Information Release CAT 2006-07, Qualified Distribution Centers);
- Receipts of an employer from payroll deductions relating to the reimbursement of the employer for advancing monies to an unrelated third party on an employee's behalf;
- Cash discounts allowed and taken;
- Returns and allowances;
- Bad debts from receipts upon which the tax imposed by this chapter. Bad debts mean any debts that have become worthless or uncollectible, have been uncollected for at least six months, and may be claimed as a deduction under the Internal Revenue Code or that could be claimed as such if the taxpayer kepts its accounts on the accrual basis. "Bad debts" does not include uncollectible amounts on property that remains in the possession of the taxpayer until the full purchase price is paid, expenses in attempting to collect any account receivable or for any portion of the debt recovered, and repossessed property;
- Any amount realized from the sale of an account receivable to the extent the receipts from the underlying transaction giving rise to the account receivable were included in the gross receipts of the taxpayer;
- Any receipts directly attributed to providing public services pursuant to sections 126.60 to 126.605 of the Revised Code, or any receipts directly attributed to a transfer agreement or to the enterprise transferred under that agreement under section 4313.02 of the Revised Code;
- Any person that owns, leases, or operates real or tangible personal property constituting or located within a uranium enrichment zone may apply to the tax commissioner to have the uranium enrichment zone certified for the purpose of excluding qualified uranium receipts under division 5751.01(F)(2)(gg) of the Revised Code;
- Amounts realized by licensed motor fuel dealers or licensed permissive motor fuel dealers from the exchange of petroleum products, including motor fuel, between such dealers, provided that delivery of the petroleum products occurs at a refinery, terminal, pipeline, or marine vessel and that the exchanging dealers agree neither dealer shall require monetary compensation from the other for the value of the exchanged petroleum products other than such compensation for differences in product location or grade. Division 5751.01(F)(2)(hh) of the Revised Code does not apply to amounts realized as a result of differences in location or grade of exchanged petroleum products or from handling, lubricity, dye, or other additive injections fees, pipeline security fees, or similar fees. As used in this division, "motor fuel," "licensed motor fuel dealer," "licensed permissive motor fuel dealer," and "terminal" have the same meanings as in section 5735.01 of the Revised Code;
- In the case of amounts collected by a licensed casino operator from casino gaming, amounts in excess of the casino operator’s gross casino revenue. In this division, “casino operator” and “casino gaming” have the meanings defined in section 3772.01 of the Revised Code, and “gross casino revenue” has the meaning defined in section 5753.01 of the Revised Code;
- Any receipts for which the tax imposed by this chapter is prohibited by the Constitution or laws of the United States or the Constitution of Ohio;
- Real estate broker’s gross receipts includes only the portion of any fee for the service of a real estate broker, that is retained by the broker and not paid to an associated real estate salesperson or another real estate broker.
- Temporary exclusions:
- Receipts from the sale of fuel by a refinery to a terminal that is intended to be used as motor fuel; (expired June 30, 2007).
- Receipts from the sale of motor fuel from a terminal to a motor fuel dealer, excluding motor fuel that is not subject to taxation under Chapter 5735 of the Revised Code; (expired June 30, 2007).
- Receipts from the sale of motor fuel upon which the tax under Chapter 5735 of the Revised Code has been imposed; (expired June 30, 2007).
- Amounts received from the sale of property delivered into or shipped from a qualified foreign trade zone area. (expired Dec. 31, 2006).
(See Information Release CAT 2005-17, "Taxable Gross Receipt" Defined).