Personal Property Tax

County Bulletin

TO: ALL COUNTY AUDITORS Bulletin No. 242

FROM: Edgar L. Lindley, Tax Commissioner

DATE:  January 14, 1976

RE: Personal Property Tax Releases

The Ohio Revised code sets forth several requirements which must be met by all domestic corporations desiring to dissolve and by all foreign corporations desiring to surrender their Ohio license. Two of these requirements include: 1) a release or certificate from the Tax Commissioner certifying that all franchise, sales, use and highway use taxes have been paid or guaranteed, and 2) a release or certificate from the Treasurer of each county in which the corporation has personal property certifying that all personal property taxes have been paid. Similar releases and certificates must be obtained from other agencies of the State.The Ohio Secretary of State is responsible for administering the laws with respect to the dissolution of corporations and the surrender of Ohio licenses. Persons making inquiries to your offices regarding the steps necessary to dissolve a corporation or to surrender a corporate license should be referred to the Secretary of State, 30 E Broad St., Columbus, Ohio 43215, for complete instructions.The Tax Commissioner is responsible for issuing the certificate for the payment of all franchise, sales, use and highway use taxes. The attached Form No. D-5, Application for Certificate of Payment of Ohio Taxes, has been prescribed to insure prompt handling. The Tax Commissioner Rule TX-7-03, which is printed on the reverse side of the application form, sets forth the steps applicants must follow in order to obtain this certificate.The county officials are responsible for determining that all personal property taxes have been paid and the County treasurer is responsible for issuing the personal property tax release. It has been a policy of the Department of Taxation to examine the personal property tax returns of every corporation desiring to dissolve or surrender its license and, when said returns were acceptable, issue release letters to that effect to the County Auditors involved and to the applicant. In the majority of instances, our examination proved that no assessment-changes were necessary; further, many of the corporations under examination by the department had already obtained their personal property tax releases from the County Treasurer. Therefore, as of January 1, 1976, the Department of Taxation will no longer automatically examine the personal property tax returns of every corporation desiring to dissolve or to surrender its license.If, upon examining the personal property tax returns, your offices determine that additional assistance is necessary prior to the issuance of the tax release, the department will, upon your request, conduct a further examination. These requests for assistance must be forwarded in writing by your office to the department’s district office having jurisdiction of the personal property tax return and must include the corporate name, address, charter number and the name and address of the person representing the corporation. In the event the corporation files an Inter-County Return of Taxable Property, the request for assistance should be forwarded to the Ohio Department of Taxation, Personal Property Section, P. O. Box 530, Columbus, Ohio 43216. Upon completion of the investigation, the Department of Taxation will notify the County Auditor, County Treasurer and the applicant of the results.When a personal property tax release is requested for purposes other than the dissolution of a corporation or the surrender of an Ohio license, it is the responsibility of the county officials to determine that all personal property taxes have been paid and of the County Treasurer to issue the tax release. The department will provide assistance where essential, upon request. Written requests should be submitted in the same manner as described above.

STATE OF OHIO DEPARTMENT OF TAXATIONSealAPPLICATION FOR CERTIFICATE OF PAYMENT OF OHIO TAXES(For Corporate Dissolution or Withdrawal Form Ohio)SEE REVERSE SIDE

Name of Corporation _______________________________________________________________
                                               (As Recorded with the Ohio Secretary of State)

Address __________________________________________________________________Date of Incorporation/Qualification___________________________Ohio Charter (License) No.____________________Federal Employer Identification No. __________________________State of Incorporation ________________________Type of Corporation: For Profit  Cooperative  Not for Profit Location of Accounting Records _______________________________________________________________________

Name, address and telephone number of person to whom inquiries may be made _____________________


Mail Certificate to: ________________________________________________________________________

Date business activity ceased or will cease? _________________Date stock Retired or will be Retired?_____________________

Type of business activity and product sold _____________________________________________________________________

Personal Property Tax return was filed ____________________________________ in _________________________________

(Year) (County)

Corporation Franchise Taxes have been paid through _________________________________

(Year)

Was a Combined Franchise Tax Report filed for any tax year after 1971? Yes  No 

If yes, list parent corporation’s name, charter, F.E.I. Nos. _________________________________________

Ohio Employer Withholding Tax returns have been filed through ___________________________________________________

(Month/Year)

If none filed, explain _____________________________________________________________________________________

Address of all business locations in Ohio List all Sales or Use Tax Account Numbers

(Vendors License, Seller’s Use, Consumer’s Use,

__________________________________ Direct Pay, Highway Use)

____________________________   ____________________________
____________________________   ____________________________
____________________________   ____________________________

Name and Address of Successor (if any) ___________________________________________________________________________

SIGNATURE AND TITLE OF PERSON MAKING APPLICATION DATE

COMPLETE ALL THE INFORMATION REQUESTED ABOVE AND MAIL FOUR (4) COPIES TO:

OHIO DEPARTMENT OF TAXATION, ATTN: CORPORATE DISSOLUTION SECTION, P.O. BOX 2476, COLUMBUS, OHIO 43216.

TX-7-03 CERTIFICATION OF PAYMENT OF TAXES FOR PURPOSES OF DISSOLUTION OF CORPORATE CHARTER OR SURRENDER OF LICENSE.

Rule TX-7-03 is hereby enacted effective December 31, 1975, to read as follows:

Domestic corporations, foreign corporations, and those not-for-profit corporations organized pursuant to Chapter 1729. of the Ohio Revised Code, or organized or operating in a manner similar to that authorized by Chapter 1729. of the Ohio Revised Code pursuant to the law of another state or country, which desire to dissolve their charter or surrender their license to transact business in this state must furnish the Secretary 'of State with the receipts, certificates, or other evidence enumerated in Sections 1701.86(H) or 1703.17(C) of the Ohio Revised Code. Such enumeration includes a receipt, certificate or other evidence showing that:

(a) all franchise taxes have been paid or adequately guaranteed through the year in which the request is made, and(b) all sales, use and highway use taxes have been paid or adequately guaranteed, and(c) all personal property taxes accruing up to the date of request for dissolution have been paid.

Under the provisions of Section 1702.47(G), Ohio Revised Code, non-profit corporations desiring to dissolve their charter must furnish the Secretary of State with the receipts, certificates or other evidence enumerated therein. Such enumeration includes a receipt, certificate or other evidence showing that:

(a) all sales, use and highway use taxes have been paid or adequately guaranteed, and

  1. all personal property taxes accruing up to the date of request for dissolution have been paid. If the corporation has no personal property in this state subject to taxation, an affidavit to that effect may be filed in lieu of the receipts or other evidence of tax payment.

Form No. D-5, Application for Certificate of Payment of Ohio Taxes, is prescribed by the Tax Commissioner for the purpose of obtaining a combined certification for sales, use, highway use and franchise taxes. Corporations desiring to dissolve their charter or surrender their license must make application on this form and furnish all of the required information. Forms may be obtained from and should be filed with the Department of Taxation, with allowance for at least thirty (30) days for processing.

To avoid delay, any delinquent sales, use, highway use and franchise tax returns or reports should accompany the application together with separate certified checks or money orders in payment for each of the taxes due thereon. Failure to initially submit all necessary information, tax returns, and/or payments may result in tax audits and will delay issuance of the desired certificate.

Corporations having a license or charter to conduct business in Ohio, or owning or using all or part of their capital or property in Ohio, on the first day of January of any calendar year are subject to the Ohio corporation franchise tax for such calendar year.

However, in the event a corporation undergoing dissolution has ceased all business activities in Ohio, completed the retirement of all outstanding shares of stock, the liquidation and distribution of assets, the filing of application Form D-5 with the Department of Taxation, and all other steps toward dissolution, except those steps precluded-by the fact that the certificates herein provided for have not been issued, so that it remains licensed or chartered with the Secretary of State on the following first day of January solely because the certificates applied for prior to that date have not been issued, the basic franchise tax liability of such corporation for the subsequent year shall be the minimum fee of $50.00.

For the purpose of guaranteeing the payment of any franchise, sales, use and highway use taxes which may be due from a pending audit or assessment, either a cash bond or surety bond issued by a bonding agency licensed to do business in Ohio may be posted with the Tax Commissioner by the applicant. The amount shall be determined by the Tax Commissioner. Such bond shall- remain in force until all taxes have been paid, whereupon a written notice to that effect shall be provided by the Tax Commissioner.

Upon determining that all sales, use, highway use and franchise taxes have been paid or adequately guaranteed, the Tax Commissioner will issue a combined certificate (Form No. D-2) to the applicant. Failure to pay or adequately guarantee any of these taxes will prevent issuance of this certificate.

It is the responsibility of the applicant to obtain a personal property tax release certificate from the County Treasurer of each county in which the applicant had taxable personal property. It is the responsibility of the county officials to determine that all personal property taxes -have been paid.