Legal Resources - Tax Rules

Tax Rules

This section of our Web site includes information on the current and proposed rules of the Department of Taxation, found in chapter 5703 of the Ohio Administrative Code.

Key rule resources

  • Regulatory reform —The regulatory reform Web site allows interested parties to comment on proposed rule changes.
  • Register of Ohio — The Register is a publication of the Legislative Service Commission that provides public notice and information about state agency rule-making proceedings.
  • Joint Committee on Agency Rule Review (JCARR) — This legislative committee reviews administrative rules before they become effective.
  • Final rules — A complete list of the Department of Taxation's rules, as compiled by the department, is found here.
  • Ohio Administrative Code — The Ohio Administrative Code, as compiled by Lawriter LLC at the direction of the Legislative Service Commission, is found here.

Proposed Rules

General Provisions
Click here for the Proposed Rule Alert Message

  • 5703-1-01 - Revised to comport with the LSC drafting manual and to update the provisions.
  • 5703-1-02 - Rescind
  • 5703-1-03 - Revised to comport with the LSC drafting manual

Business Tax Division Seeks Comments on Proposed Rule Changes

Executive Order 2011-01K and Senate Bill 2 of the 129th General Assembly, require state agencies to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community, and provide an opportunity for the affected public to provide input on the rules.

As part of the Department’s five-year rule review process, the Business Tax Division proposes the following rule changes:

Rule Number - Proposed Change
5703-29-03 - No Change.
5703-29-04 - Removed unnecessary reference to alleviate confusion.

All comments regarding the proposed rule changes should be sent to Laura Stanley, Division Counsel, Commercial Activity and Excise Taxes, at laura.stanley@tax.state.oh.us by October 3, 2014.

 

Common Sense Initiative

The Common Sense Initiative was established by Executive Order 2011-01K and placed within the Office of the Lieutenant Governor. Under the CSI, state agencies, including the Ohio Department of Taxation, are required to draft rules in collaboration with stakeholders, assess and justify an adverse impact on the business community (as defined by SB 2 of the 129th General Assembly), and provide an opportunity for the affected public to provide input on the rules. 

In this section you will find proposed rules, business impact assessments and any additional documentation:

Motor Vehicle Fuel Tax
Click here for the Proposed Rule Alert Message
Click here for the Business Impact Analysis filed with CSI (Comment period CLOSED)

Excise and Energy Tax
Click here for the Proposed Rule Alert Message
Click here for the Business Impact Analysis filed with CSI (Comment period CLOSED)

As part of the Department’s five-year rule review process, the Excise & Energy Tax Division proposes the following rule changes:

Rule Number - Proposed Change
5703-15-02  - Revised to correct citations to the Ohio Rev. Code.
5703-15-03  - Revised to remove references to meter impression and unutilized portions of this rule.
5703-15-04  - Revised to remove references to meter impressions and the Treasurer of State.
5703-15-05  - Revised to remove references to meter impressions.

Joint Committee on Agency Rule Review

The Department of Taxation files rule proposals with the Joint Committee on Agency Rule Review (JCARR) to begin the legislature's rule-review process. Generally, 41-65 days after the original file date, JCARR schedules the Department of Taxation to appear before a meeting concerning the rule proposal.

In this section you will find rules currently under the review of the Joint Committee on Agency Rule Review:

Income Tax

Click here for the Proposed Rules Alert Message
Click here for the Business Impact Analysis filed with CSI (Comment Period closed)

  • 5703-7-20—Electronic software providers; approval and suspension.

Sales & Use Tax Seeks Comments on Proposed Rule Changes
As part of the Department’s five-year rule review process, Sales & Use Tax proposes the following rule changes:

Rule Number - Proposed Rules Changes

  • 5703-9-06—No change.
  • 5703-9-07—This rule is revised to include a list of the documentation the Department requires in order to efficiently process a refund claim. 
  • 5703-9-08—H.B. 483 amended R.C. 5739.05 to allow the tax commissioner to enter into prearranged agreements using either a test check method or any other method agreed to by the vendor and tax commissioner. The revisions reflect the changes to that provision.
  • 5703-9-09—Rescind. This rule is not needed. Cumulative returns are covered by R.C. 5739.12(A)(1). 
  • 5703-9-10—The rule is revised to delete the requirement that the clerk of courts send a copy of exemption certificates to the Department and to delete current subsections (E) and (F) as these requirements are contained in R.C. 4505.06. 
  • 5703-9-28—This rule is revised to reflect changes made by H.B. 59 which repealed the exemption for magazine subscriptions.

All comments regarding the proposed rule changes should be sent to Phyllis Shambaugh, Counsel, Sales & Use Tax, at phyllis.shambaugh@tax.state.oh.us by September 19, 2014. COMMENT PERIOD CLOSED.

Horseracing Tax
Click here for the Proposed Rule Alert Message
Click here for the Business Impact Analysis filed with CSI (Comment period ends October 24, 2014)

  • 5703-23-01 —Filing and payment of horseracing tax.