Don’t Overlook CAT Filing Requirement

Ohio has an annual tax levied for the privilege of doing business in the state, which is called the commercial activity tax (CAT).

This tax is measured by gross receipts from business activities in Ohio, and businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register for the CAT, file all the applicable returns, and make all corresponding payments.

Firm Director Patrick McClary, who manages the tax department, advises clients not to overlook this often-missed filing requirement.

The CAT applies to most businesses, including but not limited to retail, wholesale, service, manufacturing and other general businesses regardless of the type of business entity.

For example, sole proprietorships, partnerships, LLCs, S-corporations, corporations, disregarded entities, trusts, and all other type of associations with taxable gross receipts of more than $150,000 in the calendar year are subject to the CAT.

The 2012 quarterly returns will be due on May 10 (first quarter), August 10 (second quarter), November 13, (third quarter) and February 11, 2013, (fourth quarter).

For annual taxpayers, the $150 annual minimum tax is due on May 10 with the 2011 Commercial Activity Tax Annual Return and 2012 Minimum Tax Payment Return.