Legal Resources - Tax Rules

Tax Rules

The Ohio Revised Code grants rule-making authority to the Ohio Department of Taxation to adopt new rules. Additionally, the Department may review, amend and rescind current rules. The Department of Taxation posts draft rules here for an initial comment period. Some rules are then submitted to the Common Sense Initiative (CSI) for further review and comment. Finally, draft rules are submitted to the Joint Committee on Agency Rule Review (JCARR) for final review and ultimate publication as updated rules in the Ohio Administrative code (the Final Rules). Please see below to track progress of current draft/proposed rules.

Draft Rules

Excise & Energy Tax Division

All comments regarding the proposed rule changes should be sent to Benjamin Waterman, Division Counsel, at Benjamin.Waterman@tax.state.oh.us by January 27, 2017.

Rule Number

Rule Title

Proposed Change

5703-19-01

Liability for payment of the wine and mixed beverage tax.

Revised to eliminate B-2 license holder filing exemption.

5703-17-01

Definitions.

No Change.

5703-17-03

Measuring bottle content.

No Change.

Commercial Activity Tax

All comments regarding the proposed rule changes should be sent to Benjamin Waterman, Division Counsel, at Benjamin.Waterman@tax.state.oh.us by January 27, 2017.

Rule Number

Rule Title

Proposed Change

5703-29-10

Nonprofit organizations and contributions.

No Change

5703-29-11

Commercial activity tax credit for unused franchise tax net operating losses.

Rescind.

5703-29-12

Temporary motor fuel exemptions from the commercial activity tax.

Rescind.

5703-29-13

Commercial activity tax definition of an agent.

No Change.

Draft Rules submitted to the 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 any adverse impact on the business community (as defined by revised code 107.52, 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:

Excise & Energy Tax Division

All comments regarding these rules should be sent to Keven Kuhns, Division Counsel, Excise & Energy Tax Division, at keven.kuhns@tax.state.oh.us, and CSI, at CSIPublicComments@governor.ohio.gov, by January 27, 2017.

The Excise & Energy Tax Division proposes changes to the following rules due to the repeal of the Ohio tangible personal property tax:

Rule Number

Rule Title

Proposed Change

5703-3-06

Consolidated returns by incorporated dealers in tangibles.

Repeal

5703-3-07

Returns by fiduciaries on behalf of taxpayer.

Repeal

5703-3-09

Returns by fiduciaries on property of nonresidents.

Repeal

5703-3-10

Tangible personal property tax; true value of depreciable assets; application of true value or 302 computation.

No Change

5703-3-11

Tangible personal property tax; true value or 302 computation.

No Change

5703-3-12

Tangible personal property tax; true value; exhaustion method; presumed disposals

No Change

5703-3-13

Tangible personal property tax; replacement allowance; hotels.

Repeal

5703-3-14

Designation of person to make return of leased property.

Repeal

5703-3-15

Allowances of reserves against accounts receivable.

Repeal

5703-3-16

Computation and assessment of average value of inventories.

Repeal

     

Click here for Rules Alert message. Click here for the BIA submitted to CSI

Sales and Use Tax

All comments regarding these rules should be sent to Laura Stanley, Division Counsel, Sales and Use Tax Division, at laura.stanley@tax.state.oh.us, and CSI, at CSIPublicComments@governor.ohio.gov by March 29, 2017. Click here for Rules Alert Message. Click here for Business Impact Analysis.

The Business Tax Division proposes changes to the following rules:

Rule Number

Rule Title

Proposed Change

5703-9-07

Application for refund of sales and use taxes.

Updated to account for removal of line numbers from the Refund Claim Form.  Clarifies information necessary to be included with a waiver by the consumer.

5703-9-26

Sourcing ancillary services and internet access.

No change.

5703-9-28

Sales and use tax: newspapers and magazines.

No change.

5703-9-31

Florists

Revised for out-of-date language and sourcing information.

5703-9-32

Sales and ue tax: morticians funeral transactions.

No change.

5703-9-33

Photographers.

No change.

5703-9-34

Sign manufacturers, sign painters and sales agents.

No change.

5703-9-35

Purchasers, as a liquidator of closed institutions, by superintendents of insurance, banks, and building and loan associations.

Updating the name of the Superintendent of Banks of Ohio.

5703-9-36

Sales and use tax, negative equity in motor vehicle sales and leases.

No change.

5703-9-37

Tire retreading and repairs.

No change.

5703-9-38

Photostats.

Updating out-of-date language.

Proposed Rules Submitted to JCARR

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:

Excise & Energy Tax

Excise & Energy Tax Division seeks comments on Proposed Motor Fuel Electronic Filing Rules: