Important Changes to the Ohio Commercial Activity Tax

Maria Gordon

Tax Supervisor – SALT

For tax years beginning January 1, 2024 there are big changes to the Ohio Commercial Activity Tax (“CAT”). For one thing, the CAT annual minimum tax is being eliminated. More importantly, the receipts exclusion is increased from $1 million to $3 million for 2024 and will be increased to $6 million for 2025. Taxpayers having 2024 calendar year Ohio gross receipts of $3 million or less will no longer be subject to the CAT. The CAT rate remains unchanged at 0.26% and will apply to Ohio gross receipts in excess of $3 million.

What does this mean for your business? If you expect your 2024 Ohio gross receipts to be under $3 million, you must close your CAT account. Failure to close the account could result in non-filing notices. You may close the CAT account online by visiting the Ohio Business Gateway. Select the CAT Cancel Account transaction and indicate a closure date of December 31, 2023.

Remember to file your final CAT return for tax year 2023! CAT filing deadlines are:

Ohio is just one of many states that imposes a tax on gross receipts. Cray Kaiser can help your business evaluate the impact of these types of taxes on your business. Contact us by calling 630-953-4900 and one of our State and Local Tax professionals will be happy to provide assistance.

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