Changes are coming to Ohio’s commercial activity tax (CAT). Some of the key points are listed below. You can read more about the legislation on the Ohio Department of Taxation’s website.
Effective January 1, 2024
- Elimination of annual minimum tax, if you file a final return by May 10, 2024, and have $3 million or less in taxable gross receipts
- Taxable gross receipts over $3 million will be subject to a 0.26% flat rate
- If businesses do not cancel their CAT accounts, they will be moved to filing quarterly
Effective January 1, 2025
- Elimination of annual minimum tax if you have $6 million or less in taxable gross receipts and cancel your account by February 10, 2025
- Taxable gross receipts over $6 million will be subject to a 0.26% flat rate
Please reach out if you have any questions about the appropriate next steps or the impact this legislation will have on your business.