Legal Resources - Tax Rules

Tax Rules

The Ohio Revised Code grants rule-making authority to the Ohio Department of Taxation to adopt new rules. Additionally, the Department may review, amend and rescind current rules. The Department of Taxation posts draft rules here for an initial comment period. Some rules are then submitted to the Common Sense Initiative (CSI) for further review and comment. Finally, draft rules are submitted to the Joint Committee on Agency Rule Review (JCARR) for final review and ultimate publication as updated rules in the Ohio Administrative code (the Final Rules). Please see below to track progress of current draft/proposed rules.

Draft Rules

Sales and Use Tax

All comments regarding this rule should be sent to Laura Stanley, Division Counsel, Sales and Use Tax Division, at laura.stanley@tax.state.oh.us.


Rule Number

Rule Title

Proposed Change

5703-9-49

Corporate officer liability.

The Department has re-written the existing rule by shifting its focus from the position held, to the responsibilities and activities that Ohio Supreme Court and Board of Tax Appeals cases have found to be indicative of a responsible party. 

Draft Rules submitted to the Common Sense Initiative

The Common Sense Initiative was established by Executive Order 2011-01K and placed within the Office of the Lieutenant Governor. Under the CSI, state agencies, including the Ohio Department of Taxation, are required to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community (as defined by revised code 107.52, and provide an opportunity for the affected public to provide input on the rules. 

In this section you will find proposed rules, business impact assessments and any additional documentation:

Sales and Use Tax

Business Tax Division seeks comments on the following Sales Tax rules. All comments regarding the proposed rule changes should be sent to Laura Stanley, Division Counsel, at Laura.Stanley@tax.state.oh.us and CSI at CSIPublicComments@governor.ohio.gov by December 21, 2018.  Click here for CSI Alert.  Click here for Business Impact Analysis.

Rule Number

Rule Title

Proposed Change(s)

5703-9-51

County and transit authority rates and boundary database.

No Change.

5703-9-52

Delivery charges.

No Change.

5703-9-53

Rate changes; application of effective date to services.

No Change.

5703-9-54

Taxability Matrix.

Removed specific wording of Section 328 of the Streamlined Sales and Use Tax Agreement and provided a reference to the most recent Agreement.

5703-9-55

Sales and use tax, change in state tax rate.

No Change.

5703-9-56

Streamlined sales and use tax - review and approval of certified automated system software and liability relief.

No Change.

5703-9-57

Relief from liability for certified service providers where the consumer claims exemption.

No Change.

5703-9-58

Sales and use tax, relief of liability for purchasers.

No Change.

5703-9-59

Sales and use tax, transactions involving optional computer software maintenance contracts.

No Change.

5703-9-60

Consumer's use tax amnesty payment plan.

No Change.

5703-9-61

Electronic filing and payment of "Consumer's Use Tax".

Removal of the use of the Telefile system for the consumer’s use tax.

Excise Tax

All comments regarding this rule should be sent to TaxRules@tax.state.oh.us and CSI at CSIPublicComments@governor.ohio.gov  by April 23, 2019.  Click here for CSI notificationClick here for Business Impact Analysis.

Rule Number

Rule Title

Proposed Change

5703-15-18

Suspension of discount for selling cigarettes below cost.

Revised

5703-15-20

Licensing cigarette manufacturers and importers and registration of other tobacco products manufacturers, importers, and brokers.

Revised

5703-15-21

Sale of other tobacco products between licensed other tobacco product distributors.

Revised

5703-15-22

Sale of unstamped cigarettes between licensed cigarette wholesalers.

No Change

Proposed Rules Submitted to JCARR

The Department of Taxation files rule proposals with the Joint Committee on Agency Rule Review (JCARR) to begin the legislature's rule-review process. Generally, 41-65 days after the original file date, JCARR schedules the Department of Taxation to appear before a meeting concerning the rule proposal.

In this section you will find rules currently under the review of the Joint Committee on Agency Rule Review:

Commercial Activity Tax

Click here for Tax Alert.  Click here for Business Impact Analysis.


Rule Number

Rule Title

Proposed Change

5703-29-14

Commercial activity tax definition of “cash discounts”.

Revise - update language to eliminate use of “deduction” and replace with “exclusion.” Update referenced code sections to conform to current code. Add price adjustments to definition of “cash discount” to clarify application of this rule and add examples to illustrate the change.

5703-29-15

Highway transportation services – bright-line presence and situsing.

No change

5703-29-16

Qualified distribution center.

Revise - minor change to conform example to current practice

5703-29-17

Situsing of certain services for purposes.

No change

5703-29-18

Records retention requirements.

No change