Tax Rules: Final: 5703-9
5703-9-13 Sales and use tax; return reporting
periods
(A) Vendor's sales tax returns:
(1) Vendors licensed under section 5739.17 of the Revised
Code are required to file returns and remit tax due each
month unless the tax commissioner authorizes filing at less
frequent intervals as provided in paragraph (A)(2) of this
rule.
(2) Vendors that do not hold a permit to sell alcoholic
beverages will be authorized to file returns and remit tax
due on a semiannual basis if their average monthly sales tax
collections are less than two hundred dollars.
(3) Notwithstanding paragraph (A)(2) of this rule, the
commissioner may require any vendor that fails to timely file
returns and remit tax due to file returns and remit tax on a
monthly basis.
(B) Seller's use tax returns:
(1) Sellers required to register under division (A) of
section 5741.17 of the Revised Code are required to file
returns and remit tax due in the same manner as vendors under
paragraph (A) of this rule.
(2)(a) Sellers registered voluntarily under division (B) of
section 5741.17 of the Revised Code are required to file
returns and remit taxes due on a calendar year basis.
Additionally, such seller shall file a return and remit tax
collected for any month in which the seller has collected an
accumulated amount of state and local use taxes of one
thousand dollars or more.
(b) If at any point in a calendar year the seller has
collected over eighteen thousand dollars of tax, the seller
shall thereafter be required to file on a monthly basis
unless the seller can substantiate to the commissioner that
its future tax collections are expected to be less than one
thousand dollars per month.
(C) Direct pay returns:
(1) Holders of direct pay permits issued pursuant to section
5739.031 of the Revised Code are required to file returns and
remit tax due each month unless the tax commissioner
authorizes filing at less frequent intervals as provided in
paragraph (C)(2) of this rule.
(2) Holders of direct pay permits will be authorized to file
returns and remit tax due on a quarterly basis if their
average monthly liability is less than five thousand dollars.
(D) Consumer’s use tax returns:
(1) Business consumers:
(a) Business consumers that file returns pursuant to section
5741.12 of the Revised Code are required to file returns and
remit tax due each month unless the tax commissioner
authorizes filing at less frequent intervals as provided in
paragraph (D)(1)(b) of this rule.
(b) Business consumers will be authorized to file returns and
remit tax due on a quarterly basis if their average monthly
liability is less than five thousand dollars.
(2) Individual consumers:
(a) Individuals that do not file consumer’s use tax returns
under paragraph (D)(2)(c) of this rule and whose use tax
liability in the current calendar year is anticipated to be
not more than one thousand dollars may file and remit the tax
due in any year either on their income tax return for that
year by the due date of that return or on a voluntary payment
return form for the calendar year.
(b) Individuals that report and remit tax under paragraph
(D)(2)(a) of this rule that make either an extraordinary
individual purchase on which the tax exceeds seven hundred
fifty dollars or a purchase of a motor vehicle, titled
watercraft or titled outboard motor, on which tax is neither
collected by a vendor nor, in the case of a motor vehicle,
titled watercraft or titled outboard motor, paid by the
consumer to the clerk of courts, must separately report and
remit tax on that purchase using a voluntary payment return
form for the calendar quarter in which the purchase was made.
Any such extraordinary purchase shall not be considered in
calculating the tax liability for the current calendar year
under paragraph (D)(2)(a) of this rule.
(c) Except as provided in subparagraph (d) of paragraph
(D)(2) of this rule, individuals whose annual tax liability
is greater than one thousand dollars or any other individuals
that the commissioner requires to obtain a consumer’s use tax
account or voluntarily obtain such an account shall file
returns in the same manner as business consumers under
paragraph (D)(1) of this rule.
(d) The tax commissioner may, by agreement with any
individual taxpayer required to file monthly consumer’s use
tax returns, authorize an alternate method of filing if that
method will make the individual’s tax reporting more accurate
and expeditious.
(E)(1) As used in this rule, returns filed on a semiannual
basis will be for the reporting periods January through June
and July through December. Returns filed on a quarterly basis
will be for the reporting periods January through March,
April through June, July through September and October
through December.
(2) Except as otherwise provided in this rule, any sales tax,
seller’s use tax, direct pay, or consumer’s use tax return,
including a voluntary payment return, must be filed on or
before the twenty-third day of the month following the end of
the reporting period.
(3) The tax commissioner shall establish a filing interval
for each newly registered vendor, seller, direct pay holder
or consumer’s use tax account holder within a reasonable
amount of time of setting up the account and shall inform the
vendor, seller, direct pay holder or consumer of that filing
interval. Except as provided in paragraph (B)(2) or (D)(2) of
this rule, unless the taxpayer is notified by the
commissioner of an alternate filing period the filing period
shall be monthly.
(F) Partial returns may be required for any taxpayer
reporting on a semiannual or quarterly basis as a result of a
tax rate change that becomes effective during a reporting
period. The partial returns are necessary to separate the two
tax rates in effect during the reporting period.
(G) For purposes of computing any applicable penalty,
interest, and additional charges, unreported sales or use tax
that was not but should have been reported pursuant to
paragraph (A) to (D) of this rule shall be considered due on
the filing date of the tax return for such unreported tax as
determined using the filing basis authorized under those
paragraphs.
(H) Notwithstanding the provisions of paragraphs (A) and (B)
of this rule, the returns must be filed and tax due remitted
on a monthly basis for any vendor or seller that elects to
employ a certified service provider, as defined in division
(C) of section 5740.01 of the Revised Code, or that uses a
certified automated system, as defined in division (B) of
section 5740.01 of the Revised Code.
(I) Any holder of an active vendor’s license, seller’s use
tax account, direct pay account or consumer’s use tax account
shall file returns according to the filing schedule
established under this rule for every filing period,
regardless of whether there is tax liability for that period.
(J) The tax commissioner shall calculate the “average monthly
liability,” as that term is used in paragraphs (A)(2),
(C)(2), and (D)(2) of this rule, using the liability of the
vendor, seller, direct pay holder or consumer’s use tax
account holder for a previous period of not less than one
year and not more than two years.
(K)(1) The tax commissioner may require any vendor, seller,
direct pay holder or consumer to use a different filing
period than required by paragraphs (A), (B)(1), (C), or (D)
of this rule if the commissioner finds that it would result
in improved compliance or increased administrative
efficiency.
(2) Any vendor, seller, direct pay holder or consumer may
file a request with the tax commissioner to change their
reporting period. The commissioner may agree to the request
if the commissioner finds the alternate filing period would
improve compliance or increase administrative efficiency.
(3) Whenever the commissioner changes a filing period for a
vendor, seller, consumer or direct pay holder, the
commissioner shall determine the date on which the change in
filing period takes effect.
(L) Except as provided in division (B)(2) of this rule,
nothing in this rule shall be construed to have any impact on
whether a vendor, seller, direct pay holder or consumer is
required to make remittances by electronic funds transfer or
to make accelerated payments of tax liability.
Effective: 9-25-05
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5739.031, 5739.17, 5740.01, 5741.12, 5741.17
Prior effective dates: 8-10-64, 1-1-83, 7-13-92