Tax Data Series

Corporation Franchise Tax

Corporate Franchise Tax:  Number of Corporations and Reported Tax Liability, by Tax Base and Industry, Tax Year 1994

These corporate franchise tax tables show a total reported Ohio corporate franchise tax liability for tax year 1994 of $701.6 million. The reported liability before credits was $721.9 million, but tax credits reduced the net liability by $20.3 million. A total of 113,877 corporations were represented on the 1994 returns, with 26,169 corporations paying the tax based on net income and 41,738 paying the tax based on net worth. The number of corporations paying the minimum tax amounted to 45,970. However, about 69 percent of the tax liability before credits was based on net income (compared to 64 percent in 1993) and about 31 percent was derived from the net worth base (compared to 36 percent in 1993). The remainder of the tax was reported as liability under the minimum tax.

Specifically, tables CF-1A and 1B show the number of corporations and the reported total tax liabilities by tax base for each of nine broad industrial classifications. The largest total tax liability was reported by manufacturing corporations, which accounted for about 47 percent of the total.

And, tables CF-2A and 2B categorize the corporate returns by the size of the reported tax liability per return. The number of corporations and total tax liability are shown for each of the alternative tax bases for 18 tax liability classes.

Returns reporting over $500,000 in tax liability were responsible for about 36 percent (compared to 34 percent in 1993) of the total reported liability even though they covered only 0.2 percent of total corporations.

The data shown on these tables were compiled from returns filed for tax year 1994 with the Ohio Department of Taxation. NOTE: These tables do not include data from the tax returns of financial institutions. Data from financial institution returns are shown on a separate table (CF-5).