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CAT 2014-03 - Petroleum Activity Tax: Sampling  - Issued January 2014 

The Ohio General Assembly has recently enacted the Petroleum Activity Tax (PAT). This proposed rule provides taxpayers with the guidelines the Tax Commissioner will use when sampling is used in auditing a taxpayer’s records. Prior to adopting this rule, ODT is seeking public comment on the draft of this rule. Public comment should be made before January 31, 2014 to Laura Stanley by e-mail at or by calling her at (614) 644-5764.

DRAFT Rule 5703-XX-02 Sampling.

(A) As authorized pursuant to division (G) of section 5736.09 of the Revised Code, the Tax Commissioner hereby prescribes sampling methods for the tax imposed under section 5736.02 of the Revised Code that the commissioner may use in lieu of a complete examination of records. The sampling methods include, but are not limited to, the following:

(1) Statistical sampling. Statistical methods of sampling are those procedures that utilize random selection and are capable of projecting population values with a known reliability; and

(2) Non-statistical sampling. Non-statistical sampling includes methods such as block sampling.

(B) The commissioner shall make a good faith effort to reach agreement with the supplier to select the most appropriate sampling methodology.

(1) The failure of the commissioner to reach an agreement with the supplier does not preclude the commissioner from sampling.

(2) In accordance with section 5736.12 of the Revised Code, a supplier that keeps records electronically is required to provide those records electronically to the Department of Taxation upon the commissioner’s request.