Tax Data Series

Corporation Franchise Tax

Corporate Franchise Tax:  Number of Corporations and Reported Tax Liability, by Tax Base and Industry, Tax Year 1998

The attached tables show a total reported Ohio corporate franchise tax liability for tax year 1998 of $913.1 million. The reported liability before credits (including litter tax) was $981.1 million, but tax credits reduced the net liability by $68.0 million. A total of 112,001 corporations were represented on the 1998 returns, with 28,251 corporations paying the tax based on net income and 37,371 paying the tax based on net worth. The number of corporations paying the $50 minimum tax amounted to 46,379. However, about 72 percent of the tax liability before credits was based on net income (compared to 73 percent in 1997) and about 28 percent was derived from the net worth base (compared to 27 percent in 1997). 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 38 percent (compared to 40 percent in 1997) 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 1998 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).