Corporation Franchise Tax
Corporate Franchise Tax: Number of Corporations
and Reported Tax Liability, by Tax Base and Industry, Tax
The attached tables show a total reported Ohio corporate
franchise tax liability for tax year 1996 of $867.2 million.
The reported liability before credits (including litter tax)
was $886.7 million, but tax credits reduced the net liability
by $19.5 million. A total of 114,551 corporations were
represented on the 1996 returns, with 29,356 corporations
paying the tax based on net income and 40,096 paying the tax
based on net worth. The number of corporations paying the
minimum tax amounted to 46,096. However, about 74 percent of
the tax liability before credits was based on net income
(compared to 74 percent in 1995) and about 25 percent was
derived from the net worth base (compared to 25 percent in
1995). The remainder of the tax was reported as liability
under the minimum tax.
Tables CF-1A and 1B show the number of corporations and the
reported total tax liabilities by tax base for each of nine
broad industrial classifications. The largest total tax
liability was reported by manufacturing corporations, which
accounted for about 50 percent of the total.
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 18 tax liability classes.
Returns reporting over $500,000 in tax liability were
responsible for about 40 percent (compared to 40 percent in
1995) of the total reported liability even though they
covered only 0.2 percent of total corporations.
The data shown on these tables were compiled from returns
filed for tax year 1996 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).