Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Can I pass the CAT on to my customers?

The CAT is not a transaction tax like the sales and use tax. Instead, the CAT is a tax that is considered a cost of doing business in this state, and you may include it like other overhead costs (e.g., employee wages) in the part of the total price you charge your customers. Because the CAT is not a transactional tax imposed on your customers, the CAT is not part of the sales and use tax base. In addition, the law does not permit the CAT to be separately billed or invoiced to another person, except in the case where a lessor may invoice the CAT based on an estimate of the total tax costs during the tax period, and such invoice must be done pursuant to a written lease agreement.