Plaintiffs filed a class action complaint last May against Wal-Mart Stores Inc. in the U.S. District Court for the Northern District of Ohio alleging that Wal-mart “systematically shortchanges customers who return products to a store located in an area with a lower sales tax than the store from which the product was originally purchased byRead More
Events & Webinars
The Ohio Supreme Court delivered a significant blow to individuals claiming nonresident status for Ohio personal income tax under the bright-line residency statute. Cunningham v. Testa, 2015-Ohio-2744. The Ohio statute provides that an individual is irrebuttably presumed to be a nonresident if the individual satisfies three requirements: (1) maintains an abode outside Ohio for theRead More
Ohio’s biennium budget bill for FY 2016-2017 provides for expanded sales/use tax nexus and further income tax reductions. (Am. Sub. H.B. 64). Gov. Kasich made extensive use of his line-item veto ahead of the signing, striking 44 provisions from the bill. Several vetoes removed targeted benefits the legislature included for large businesses or industries, suchRead More
In a previous post, we discussed the increased scrutiny quick service restaurants and others with large reported carry-out orders are facing for under collecting Ohio sales tax. These restaurants under audit must be extremely careful before allowing the Ohio Department of Taxation to conduct a test check or sample audit, as a taxpayer who enters intoRead More
Although included in the version passed by the Ohio General Assembly, Governor Kasich vetoed click-through nexus provisions from Ohio’s Budget Bill signed Sunday night. Similar laws have been enacted in several other states presuming sales/use tax nexus to exist if a company enters into agreements with instate “affiliates” or representatives to refer sales, including viaRead More
Generally, a contractor’s purchase of tangible personal property to be incorporated into real property is taxable. However, a contractor’s material purchases are not taxable when incorporated into: Real property under a contract with, or that is accepted for ownership by, the United States (including its agencies) or the state of Ohio or a political subdivisionRead More
Depending on the nature of the project, contractors may claim an Ohio sales / use tax exemption on material purchases using several different exemption certificates. If installing a business fixture (i.e., permanent attachment to real property that primarily benefits the specific business operated on the premises), the contractor, acting as a retail vendor in thisRead More
In Bay Mechanical & Elec. Corp v. Testa, the Ohio Supreme Court recently denied an Ohio sales tax exception based upon the taxpayer’s failure to provide sufficient evidence to support the permanent assignment of the personnel at issue. The Court integrated prior decisions in clarifying the required support for claiming the exception. As an exception or exemption toRead More
Generally, Ohio sales and use tax is not imposed upon tangible personal property used or consumed directly in agricultural activities. R.C. 5739.02(B)(42)(n). Similar to the manufacturing exemption, the following items purchased by persons engaged in farming, agriculture, horticulture or floriculture are exempt from Ohio sales / use tax: Items to be incorporated into tangible personalRead More
Leased employees often come under scrutiny during Ohio sales tax audits. While many arrangements are exempt from sales tax, businesses should be proactive in documenting the transaction to properly evidence the exemption. Click here to view the outline from the presentation by Steven A. Dimengo and Phyllis Shambaugh (Ohio Department of Taxation Legal Counsel, SalesRead More
