Municipal Net Profit Tax


Under Am. Sub. H.B. 49, what responsibilities do municipal corporations have related to the state-administered municipal net profit tax?

In addition to providing certain taxpayer information to the Department upon a taxpayer’s election to opt-in with the Department, a municipal corporation (including a JEDD or JEDZ) must do the following by January 31st:

  1. Certify the tax rate in effect as of January 1st. See R.C. 718.80(C)(1).
  2. Provide the name and mailing address of up to two persons to whom the municipal corporation requests that the commissioner send taxpayer information, including tax return information and monthly distribution reports.  See R.C. 718.84(D).

Additionally, if a municipal corporation changes its tax rate during the year, the municipal corporation must certify the new rate to the tax commissioner at least 60 days prior to the effective date of the new rate.