2014 Updates to Ohio CAT Tax

The 2013 Commercial Activity Tax Annual Return (CAT) and the 2014 Annual Minimum Tax Return (AMT) are due on May 12, 2014 for annual taxpayers.¹ Taxpayers with taxable gross receipts in excess of $1 million are required to file and pay on a quarterly basis and to make the annual minimum tax payment. Likewise the AMT and first quarter CAT quarterly payments are due on May 12, 2014.  The remaining payments are due as follows: Aug. 11, 2014 (second quarter), Nov. 10, 2014 (third quarter) and Feb. 10, 2015 (fourth quarter).  However there are some changes to the CAT tax that affect what will be paid and how in 2014.

Am. Sub. H.B. 59 of the 130th General Assembly passed in 2013 made substantive changes to the CAT tax.²  All CAT taxpayers pay an AMT which is due with calendar year taxpayers' annual returns and with quarterly taxpayers' first quarter returns, both of which are due on or before May 10th of each year.³  Previously, the AMT for all CAT taxpayers was $150. For tax periods beginning on January 1, 2014 and thereafter, the AMT will become a tiered structure, and taxpayers will pay an amount that corresponds with their overall commercial activity in the previous calendar based on that year's taxable gross receipts. Those taxpayers with $1 million or less in taxable gross receipts for the prior year will pay $150 AMT. The AMT for taxpayers with total taxable gross receipts of more than $1 million but less than or equal to $2 million will pay $800; AMT for taxpayers with taxable gross receipts more than $2 million but less than or equal to $4 million, it is $2,100; and AMT for taxpayers with taxable gross receipts in excess of $4 million, it is $2,600.⁴

The Ohio Department of Taxation now requires all CAT taxpayers to file and pay electronically.⁵  The Department press releases are designed to encourage CAT taxpayers to use the Ohio Business Gateway.  The return forms have been available since March 12, 2014 on the Ohio Business Gateway.  CAT taxpayers can also use the Telefile system in place for the payment of other Ohio business taxes at (800) 697-0440, option 3 for CAT.  Telefile for the CAT tax will be available after April 16, 2014.  To use the Telefile system the following is needed: a touch-tone telephone, CAT account number, FEIN or SSN, 2013 taxable gross receipts (bifurcated to separate taxable gross receipts not from motor fuel and taxable gross receipts from motor fuel), and banking information.

Am. Sub. H.B. 510 enacted by the 129th General Assembly in December 2012 repealed the dealer in intangibles tax by providing that the tax is in effect only for tax years prior to 2014. Depending on the taxpayer's Ohio business activity, in 2014 a taxpayer will be responsible for filing either a financial institution tax return or a commercial activity tax return instead of the dealer in intangibles tax return. Taxpayers with dealer in intangibles tax liability for years prior to 2014 that have not filed all required returns should still file those returns with the Department.⁶

For more information on CAT tax please visit: http://www.tax.ohio.gov/commercial_activities.aspx or call the Ohio Department of Taxation, CAT Division at 888-722-8829.