Corporation Franchise Tax
Corporate Franchise Tax: Number of Corporations and
Reported Tax Liability, by Tax Base and Industry, Tax Year
Tax year 2010 is the final year of a five-year phase-out of
the corporate franchise tax for most corporations. The
phase-out was enacted in 2005 under landmark Ohio tax reform
legislation (Am. Sub. House Bill 66, 126th General Assembly).
For most corporations, there is no franchise tax beginning in
tax year 2010. However, the following types of corporations
will continue to be subject to the franchise tax: banks and
other financial institutions (who remain subject to the
13-mill net worth tax reflected in Table CF-5); certain
affiliates of financial institutions that are engaged in
financial institution-related activities; certain affiliates
of insurance companies that are engaged in insurance-type
activities; and securitization companies.
The attached tables reflect non-financial institution
taxpayers that remain subject to the corporate franchise tax.
Their total tax liability before tax credits was $22.3
million. Tax liability after credits was $12.0 million. There
were a total of 1,060 such corporations, with 103 of them
paying the tax based on net income and 237 paying the tax
based on net worth. The number of corporations paying the $50
or $1,000 minimum tax amounted to 720.
Tables CF-1A and 1B show the number of corporations and the
reported total tax liabilities by tax base for each of five
industrial sectors, and an “all other” category.
Tables CF-2A and 2B categorize the corporate returns by the
size of the reported tax liability per return. The number of
corporations and total tax liability are shown for each of
the alternative tax bases for ten tax liability classes.
Returns reporting over $500,000 in tax liability were
responsible for approximately 58 percent of the total
The data shown on these tables were compiled from returns
(form FT-1120) filed for tax year 2010 with the Ohio
Department of Taxation.
NOTE: These tables do not include data from the tax returns
of financial institutions. Data from financial institution
returns are shown on a separate table (CF-5).