Municipal Net Profit Tax

Municipal Net Profit Tax

The enactment of HB 49 provides business taxpayers the option, beginning with the 2018 tax year, to file one municipal net profit tax return through the Ohio Business Gateway (the Gateway) for processing by the Department of Taxation. The Department will handle all administrative functions for those centrally-filed returns and will distribute payments to the appropriate municipalities. The Department will also handle audits and appeals.

Important Information for Municipal Corporations (click here)

Important Information for Taxpayers

Registration

Taxpayers can make the election to file with the Department through the Ohio Business Gateway.

Active Municipal Net Profit Tax Accounts:

(NOTE: This list is not all-inclusive as it only contains taxpayers that have given the Department permission to publish their information)

Tax Year 2018 registration is closed for calendar year taxpayers.  Taxpayers must make an election to file with the Department on or before the first day of the third month of their taxable year. For example, taxpayers that operate on a calendar year basis are required to opt-in to file with the commissioner on or before March 1, 2018 for taxable year 2018. The election will remain in effect until terminated by the taxpayer.

Taxpayers who are not registered with the Department for the municipal net profit tax must register first before filing any return or making any payments.

The administration of the tax for periods prior to taxable year 2018 and for periods which the taxpayer has not opted-in with the Department will be handled by the applicable municipal corporations or third-party administrators.

Note: Sole proprietors and disregarded entities are not eligible to opt-in with the Department and should continue to file with municipalities.

Notification Requirements for Taxpayers

Upon making the election to file with the Department, taxpayers must provide written notification to all municipal corporations that the taxpayer conducted business in during the previous year unless the taxpayer is a new business.  New businesses need only register with the Department.

Methods of Notification to Municipalities

The Department prescribed forms to guide taxpayers through the notification process.

  • Taxpayer Notification Form - Form MNP-MN, Municipal Net Profit Tax – Municipality Notification Form, is available here for taxpayers to complete and submit to the municipalities.
  • Tax Preparer Notification Form -  Form MNP-MNTP, Municipal Net Profit Tax – Municipality Notification Form, is available here. This form would be used in the instance when the tax preparer has multiple taxpayers, in any given municipality, that have all elected to opt-in with the Department.
  • Alternative Methods – Taxpayers may provide either a copy of the registration filed with the Department or the registration confirmation letter the taxpayer received from the Department.

Any of these notification methodologies satisfies the statutory requirements to notify a municipality of a taxpayer’s intention to file with the Department.

In addition, upon registration, the taxpayer is asked whether they grant the Department permission to list their company’s information (name, address, FEIN) on the Department’s website. This will allow municipal corporations to self-serve to see who has opted-in. Only those taxpayers that agree to this limited waiver of confidentiality will be listed. Additionally, authorizing the Department to include a company’s information on the website does not relieve the taxpayer of their responsibility to notify the municipalities.

Filing Due Dates

Estimated Payment Due Dates

  • Instructions for Declaration of Estimated Payments
  • Payments of estimated combined tax liability for the current year are due as follows:
    • 22.5% must be paid by the fifteenth day of the fourth month of their taxable year.
    • 45% must be paid by the fifteenth day of the sixth month of their taxable year.
    • 67.5% must be paid by the fifteenth day of the ninth month of their taxable year.
    • 90% must be paid by the fifteenth day of the twelfth month of their taxable year.
  • If the due date falls on a weekend or holiday, the report or payment is due the next business day.

Click here for the estimated payment due date table.

Annual Filing Due Date

  • Annual tax returns are due the 15th day of the fourth month following the end of the taxpayer’s taxable year.
    • If the due date falls on a weekend or holiday, the report or payment is due the next business day.

Click here for the due date table.

Other Municipal Net Profit Tax Resources: