The Ohio Commercial Activity Tax (CAT) is a tax imposed on the gross receipts of businesses operating within the state. Introduced in 2005, the CAT replaced the Ohio Corporate Franchise Tax for most businesses. It is a broad-based tax designed to apply to a wide range of business activities, ensuring that all businesses contribute to the state’s revenue.
Any business with taxable gross receipts of over $150,000 per calendar year is required to file the Ohio Commercial Activity Tax. This includes sole proprietorships, partnerships, corporations, and other business entities operating in Ohio. Businesses below this threshold are not required to register or pay the CAT. Understanding whether your business meets the filing threshold is crucial for compliance with Ohio’s commercial activity tax regulations.
How to File Ohio Commercial Activity Tax?
Filing the Ohio Commercial Activity Tax involves submitting specific forms and adhering to state guidelines. Businesses must file Form CAT 1, the Registration Application for Commercial Activity Tax, to register with the Ohio Department of Taxation. Once registered, businesses file Form CAT 12, the Annual Commercial Activity Tax Return, and Form CAT 1/10 for quarterly filings if their taxable gross receipts exceed $1 million annually. The Ohio Business Gateway provides an online platform for filing these forms, ensuring a streamlined and efficient process. Alternatively, businesses can file by mail, sending the completed forms to the designated address.
The primary forms used for filing the Ohio Commercial Activity Tax are Form CAT 1 for registration, Form CAT 12 for annual returns, and Form CAT 1/10 for quarterly filings. These forms require detailed information about the business’s gross receipts and other relevant financial data. Accurate completion of these forms is essential to ensure proper filing and compliance.
How to Pay Ohio Commercial Activity Tax?
Payments for the Ohio Commercial Activity Tax can be made through several methods. The Ohio Department of Taxation offers an online payment portal via the Ohio Business Gateway, allowing businesses to pay electronically using electronic funds transfer (EFT) or credit card. Payments can also be made by check or money order and mailed with the completed tax return forms. In-person payments are accepted at designated Ohio Department of Taxation offices.
Ohio Commercial Activity Tax Exemptions
Certain exemptions and credits may apply to the Ohio Commercial Activity Tax, potentially reducing the tax burden for qualifying businesses. For example, businesses with taxable gross receipts under $150,000 are exempt from the CAT. Additionally, specific credits, such as the Jobs Retention Tax Credit and the Jobs Creation Tax Credit, can reduce the overall tax liability for eligible businesses. Reviewing the Ohio Department of Taxation’s guidelines is essential to identify any applicable exemptions or credits.
Ohio Commercial Activity Tax Due Dates
Timely filing and payment of the Ohio Commercial Activity Tax are crucial to avoid penalties and interest. Annual returns (Form CAT 12) are due by May 10th of each year, while quarterly returns (Form CAT 1/10) are due by the 10th day of the month following the end of each calendar quarter (April 10, July 10, October 10, and January 10). If the due date falls on a weekend or holiday, the deadline is extended to the next business day.