Municipal Net Profit Tax


What is the state-administered municipal net profit tax?

Municipal net profit taxes have historically been administered by each municipal corporation that imposes a tax, or a third-party administrator working on behalf of the municipal corporation.  If a business operates in multiple municipal corporations, the business would have to file a tax return for each municipal corporation in which it does business.  Am. Sub. H.B. 49 (the budget bill) of the General Assembly’s 132nd Session provided for a state-administered alternative to such filing.  Under the changes made by the budget bill, a business may elect to have the Ohio Department of Taxation (the Department) administer the business’ municipal net profit tax—meaning the business may choose to file a single return with the Department that covers the business’ total tax liability to all municipal corporations.