Tax Rules: Final: 5703-29
5703-29-06 Transfers of Property Into the
(A) This rule provides the circumstances when a
taxpayer/purchaser will be required to include the value of
property that is transferred into this state within one year
from the receipt of the property outside of this state
pursuant to section 5751.013 of the Revised Code.
(B)(1) Subject to paragraph (B)(2) of this rule, the value of
property brought into this state within one year after it is
received outside this state does not have to be included as a
taxable gross receipt by the purchaser. However, upon audit,
the tax commissioner may require the value of such property
to be included as a taxable gross receipt if the commissioner
finds that such transfer within one year was intended in
whole or in part to avoid the commercial activity tax.
(2) The commissioner may identify and post on the department
of taxation’s website one or more descriptions of transfers
that the commissioner deems are intended to avoid the
commercial activity tax. If a transfer is one so described,
the taxpayer must include the value of the property
transferred as a gross receipt for that tax period in which
the transfer is made. The property shall be valued at its
fair market value at the time of transfer. The taxpayer may
file a refund claim if the taxpayer believes that it can show
that the acquisition and subsequent transfer was not intended
in whole or in part to avoid the commercial activity tax.
(C) No penalty shall be imposed by the commissioner under
paragraph (B)(1) of this rule. A penalty may be imposed by
the commissioner under paragraph (B)(2) of this rule.
Promulgated under: 5703.14
Authorized by: 5703.05