Municipal Net Profit Tax

Important Information for Municipal Corporations:

Requirements for Municipal Corporations

  1. Certification of Tax Rate – On or before January 31st of each year, each municipal corporation (including JEDDs and JEDZs) imposing a tax must certify to the tax commissioner the tax rate in effect as of January 1st of that year. If there is a tax rate change after January 31st that takes effect that year, the municipal corporation must certify the new rate to the commissioner not less than 60 days before the effective date of the new rate.
  2. Provide Contact Information – On or before January 31st of each year, every municipal corporation having taxpayers that opted-in with the commissioner pursuant to R.C.718.80 must provide the name and mailing address of up to two persons who will receive information from the commissioner.
  3. Provide Tax Credit Information - On or before January 31st of the first year in which a taxpayer is eligible to receive a credit, each municipal corporation must provide to the commissioner a copy of the tax credit agreement and a copy of the ordinance/resolution authorizing the agreement for any credits granted pursuant to R. C. 718.15 or 718.151.
  4. Provide Taxpayer Information - If any taxpayer from the municipal corporation opts-in with the Department, the taxpayer and the Department will notify the municipal corporation and the municipal corporation must submit the following to the commissioner:
    1. The amount of net operating loss the taxpayer is entitled to carry forward to a future tax year.
    2. The amount of net operating loss carryforward utilized by the taxpayer in prior years.
    3. Information regarding tax credits granted by the municipal corporation, including: the amount of credits, whether the credits may be carried forward to future tax years, and the duration of such carryforward.
    4. Amount of any overpayments the taxpayer elected to carry forward.
    5. Any other information the municipal corporation deems relevant in order to effectuate the commissioner’s efficient administration of the tax on the municipal corporation’s behalf (for example, a revenue sharing agreement or approved alternate apportionment method).
    This information can be reported on form MNP-TTI, Municipal Net Profit Tax Transfer of Taxpayer Information, and sent to the Department. The form is included in this booklet and is also available on the Department’s website at: http://www.tax.ohio.gov/Forms.aspx

Timing of Information

In order to have the most up-to-date taxpayer information, the municipal corporation should send the taxpayer information outlined in Item 4 above as follows:

  • For taxpayers that have already filed a final return with the municipal corporation, submit the information on the prescribed form MNP-TTI within 90 days of being notified of the taxpayer’s opt-in with the Department.
  • For taxpayers that have not yet filed a final return with the municipal corporation, submit the prescribed form MNP-TTI within 90 days of being notified of the taxpayer’s opt- in with the Department and indicate that the taxpayer has not yet filed their final return. Once the taxpayer files their final return, submit the taxpayer information to the commissioner using form MNP- TTI within 45 days, but not later than the first day of the last month of the taxpayer’s fiscal year.

Submitting Information to the Department

Municipalities can register to upload files through the Department’s FTP GoAnywhere server. This will allow the municipalities to securely share taxpayer information with the Department.  Multiple documents can be securely uploaded at one time.

A step-by-step guide on how to register and upload files is included in this booklet. The Department also plans to develop a local government portal that will allow municipalities to enter login credentials to submit information to the Department and to receive reports and other taxpayer information securely. When that portal is developed, the Department will provide additional information.

 

Requirements for JEDDS and JEDZs

JEDDs and JEDZs have the same reporting requirements as all other municipal corporations (see preceding section, Requirements for Municipal Corporations). In addition, proposed Ohio Administrative Code (O.A.C.) Rule 5703-41-02 requires the board of directors for each JEDD and JEDZ to do the following:

  1. Provide the commissioner a signed copy of the contract and a map of the JEDD or JEDZ within 30 days of the effective date of the rule or within 30 days of the effective date of the contract, whichever comes later.
  2. Provide the commissioner a signed copy of any amendment to the contract within 30 days of the effective date of the rule or within 30 days of the effective date of such amendment, whichever comes later.
  3. Notify the commissioner if a contract is renewed, terminated, or canceled, or if any change is made to the map of the JEDD or JEDZ at least 30 days prior to the effective date of the renewal, termination, cancelation, or change.
  4. Notify the commissioner which municipal corporation is charged with administering, collecting, and enforcing the municipal net profit tax on behalf of the JEDD or JEDZ and provide the commissioner a copy of the agreement and any amendments to the agreement as follows:
    1. Provide a copy of the signed agreement within 30 days of the effective date of the rule, or within 30 days of the effective date of the agreement, whichever comes later.
    2. Provide a copy of any signed amendment to the agreement within 30 days of the effective date of the rule, or within 30 days of the effective date of such amendment, whichever comes later.