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. 

Excise & Energy

All comments regarding these rules should be sent to Keven Kuhns, Division Counsel, Excise & Energy Tax Division, at keven.kuhns@tax.state.oh.us by September 22, 2017.


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 Current Tangible Personal Property Tax Rules – Issued October 2017. All comments regarding these rules should be sent to Keven Kuhns, Division Counsel, Excise & Energy Tax Division, at keven.kuhns@tax.state.oh.us.


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

General

All comments regarding this rule should be sent to Kerrie Ryan, Division Counsel, at kerrie.ryan@tax.state.oh.us by November 13, 2017.


Rule Number

Rule Title

Proposed Change

5703-1-01

Information exchange with other states.

Amend for cosmetic changes and to add document retention provision.

5703-1-02

Information exchange with Kentucky.

Rescind – the Department is  statutorily required to share with other states under R.C. §5703.40 and has a reciprocal agreement in place in which all other states are signatories. This rule, specific to Kentucky,  is unnecessary.

5703-1-03

Information exchange with federal government.

Amend for cosmetic changes only.

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:

Commercial Activity Tax

All comments regarding the proposed rule changes should be sent to Benjamin Waterman, Division Counsel, at Benjamin.Waterman@tax.state.oh.us and CSI, at CSIPublicComments@governor.ohio.gov by August 25, 2017.  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.

General

All comments regarding these rules should be sent to Sarah Wise, Division Counsel, at sarah.wise@tax.state.oh.us, and CSI, at CSIPublicComments@governor.ohio.gov by August 25, 2017.  Click here for Rules Alert MessageClick here for Business Impact Analysis.


Rule Number

Rule Title

Proposed Change

5703-1-05

Certification of payment of taxes for purposes of dissolution of corporate charter or surrender of license.

Revised

Excise & Energy Tax Division

All comments regarding the proposed rule changes should be sent to Benjamin Waterman, Division Counsel, at Benjamin.Waterman@tax.state.oh.us and CSI, at CSIPublicComments@governor.ohio.gov by October 20, 2017.  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.

 

All comments regarding the proposed rule should be sent to Keven Kuhns, Division Counsel, at Keven.Kuhns@tax.state.oh.us and CSI, at CSIPublicComments@governor.ohio.gov by October 31, 2017.  Click here for Business Impact AnalysisClick here for CSI Alert.


Rule Number

Rule Title

Proposed Change

5703-11-05

Required Information for Aviation Fuel Dealers

 

Sales and Use Tax

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 8, 2017. Click here for Rules Alert MessageClick here for Business Impact Analysis.


Rule Number

Rule Title

Proposed Change

5703-9-30

Auctions and auctioneers.

No change.

5703-9-39

Interstate commerce.

Updated for corrections to grammar.

5703-9-40

Sales of personalty belonging to another.

Updated for corrections to grammar.

5703-9-41

Person engaged in advertising field.

Updated for clarity in sentence structure.

5703-9-42

Installation or sale of septic tanks.

No change.

5703-9-43

Books, manuals, bulletins, lists or similar materials.

No change.

5703-9-44

Bad debts.

Updated to address a court decision.

5703-9-45

Sales; alleged exempt sales; submission of additional evidence.

No change.

5703-9-46

Sales and use taxes:  automatic data processing, computer services, and electronic information services.

No change.

5703-9-48

Sales tax; purchases made with food stamp coupons.

Updated to address the implementation of the supplementation nutrition assistance program and the use of other forms of currency other than food stamp “coupons”.

5703-9-50

Registration using central registration system.

Updated to incorporate a form adopted by the Streamlined Sales Tax Governing Board.

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

Excise & Energy Tax Division seeks comments on Proposed Motor Fuel Electronic Filing Rules:

Equalization


Rule Number

Rule Title

Proposed Change

5703-25-33

Current agricultural use value of land table or tables.

No Change

5703-25-34

Use of prescribed agricultural use value of land tables by county auditor.

No Change

5703-25-35

Determination of current agricultural use taxable value of land and total taxable value of parcels in counties that completed sexennial reappraisals for tax year 1972 or later.

No Change

5703-25-36

Application of rules.

No Change

5703-25-45

Tax reduction factor; computation; minimum for schools.

No Change

5703-25-46

Tax reduction factor; certification; composite factor.

No Change

Municipal Tax

Click here for Business Impact Analysis.

Rule Number

Rule Title

Proposed Change

5703-41-01 

Filing of returns and payments by electronic means.

New

5703-41-02 

Joint economic development zones and joint economic development districts.

 

New

5703-41-03 

Change in taxable year and declaration of estimated taxes for short taxable years.

 

New