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

5703-9-21

Sales and use tax:  manufacturing

Revised to address necessary legislative updates.  Modernizes language to identify gender-neutral specific pronouns.  Attempts to clarify aspects within OAC 5703-9-21 with additional examples.

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. 

Commercial Activity Tax

Business Tax Division seeks comments on the following Commercial Activity Tax rules. All comments regarding the proposed rule changes should be sent to Benjamin Waterman, Division Counsel, at Benjamin.Waterman@tax.state.oh.us by May 24, 2018. 

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

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:

Excise & Energy Tax Division

All comments regarding these rules should be sent to Keven Kuhns, Division Counsel, Excise & Energy Tax Division, at keven.kuhns@tax.state.oh.us and CSI at CSIPublicComments@governor.ohio.gov by May 24 , 2018.  Click here for Business impact AnalysisClick here for CSI Alert.

Rule Number

Rule Title

Proposed Change

5703-15-10

Vending machines.

No Change

5703-15-11

Sales by railroad dining and club cars.

No Change

5703-15-12

Delivery of cigarettes for manufacturers’ agents.

No Change

5703-15-13

Monthly reports of cigarettes shipped by wholesale cigarette dealers.

Revised

5703-15-14

Monthly reports by cigarette dealers receiving cigarettes in Ohio.

No Change

5703-15-15

Applications for refund on unsaleable cigarettes.

No Change

5703-15-16

Cigarette wholesaler inventories and inventory returns.

Revised

5703-15-17

Storage of unstamped cigarettes by dealer.

Revised

 

Excise & Energy Tax Division seeks comments on this new Cigarette and OTP Rule. Click here for CSI Alert. Click here for Business Impact Analysis. All comments regarding this rule should be sent to Keven Kuhns, Division Counsel, Excise & Energy Tax Division, at keven.kuhns@tax.state.oh.us and CSI at CSIPublicComments@governor.ohio.gov by July 9, 2018.

Rule Number

Rule Title

Proposed Change

5703-15-23

Cigarette, other tobacco products taxpayers and master settlement agreement filers must file and pay electronically.

New

General Tax

Income, Pass-Through and Withholding Tax Division seeks comments on the following rule. All comments regarding this rule should be sent to Matthew Dodovich, Division Counsel, Income, Pass-Through and Withholding Taxes, at Matthew.Dodovich@tax.state.oh.us, and CSI at CSIPublicComments@governor.ohio.gov by July 9 , 2018.  Click here for CSI AlertClick here for Business Impact Analysis

Rule Number

Rule Title

Proposed Change

5703-1-15

Electronic software providers; approval and suspension.

New

Personal Income Tax

Income, Pass-Through and Withholding Tax Division seeks comments on the following rules.  All comments regarding these rules should be sent to Matthew Dodovich, Division Counsel, Income, Pass-Through and Withholding Taxes, at Matthew.Dodovich@tax.state.oh.us and CSI at CSIPublicComments@governor.ohio.gov by July 9 , 2018.  Click here for CSI Alert. Click here for 5703-7-10 Business Impact Analysis.  Click here for 5703-7-20 Business Impact Analysis.

Rule Number

Rule Title

Proposed Change

5703-7-10

Withholding on supplemental compensation for Ohio individual income tax purposes.

Revised.

5703-7-20

Electronic software providers; approval and suspension.

Rescind.

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:

Excise & Energy Tax

Click here for Business Impact AnalysisClick here for CSI Alert.

Rule Number

Rule Title

Proposed Change

5703-3-17

Average inventory value of merchandise of taxpayer using retail inventory method of accounting.

Rescind

5703-3-18

Tangible personal property tax; new taxpayers.

Rescind

5703-3-22

Tangible personal property tax; valuation of idle equipment.

Rescind

5703-3-23

Intangible personal property tax; repeal; effect of unrepealed sections.

Rescind

5703-3-24

Tangible personal property of nonprofit organizations.

Rescind

 

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

Rule Number

Rule Title

Proposed Change

5703-19-01

Liability for payment of the wine and mixed beverage tax.

Revised to eliminate B-2 license holder filing exemption.

Commerical Activity Tax

Click here for Rules Alert MessageClick here for Business Impact Analysis.

Rule Number

Rule Title

Proposed Change

5703-29-10

Nonprofit organizations and contributions.

No Change

5703-29-11

Commercial activity tax credit for unused franchise tax net operating losses.

Rescind.

5703-29-12

Temporary motor fuel exemptions from the commercial activity tax.

Rescind.

5703-29-13

Commercial activity tax definition of an agent.

No Change.

Corporate Franchise Tax

Rule Number

Rule Title

Proposed Change

5703-5-01

Definitions applicable to rules 5703-5-01 to 5703-5-05 of the Administrative Code.

Rescind

5703-5-02

Date as of which the value of a taxpayer’s issued and outstanding shares of stock is determined.

Rescind

5703-5-03

Dates on which a taxpayer’s taxable year begins and ends.

Rescind

5703-5-04

Changes of a taxpayer’s annual accounting period.

Rescind

5703-5-05

Taxes excludable in computing the corporate franchise tax under the net worth basis.

Rescind

5703-5-06

Combined reporting of the corporation franchise tax.

Rescind

5703-5-07

Allowance for expenditures to remove architectural barriers in determining the value of issued and outstanding shares of stock on the net income basis of the corporation franchise tax.

Rescind

5703-5-08

Books from which the value of issued and outstanding shares of stock is determined under the net worth basis of the corporation franchise tax.

Rescind

5703-5-10

Corporate franchise tax; accounts maintained under Statement of Financial Accounting Standards No. 106.

Rescind

Personal Income Tax

Rule Number

Rule Title

Proposed Change

5703-7-02

Applications for personal income tax refunds.

Revised.

5703-7-18

Nonresident “married filing jointly”.

Rescind.