You are not alone. The CAT is an annual tax imposed for the privilege of doing business in Ohio. The CAT is on taxable gross receipts from most business activities in Ohio. Most sales generated in the ordinary course of business are subject to the CAT. The CAT only applies to those gross receipts that are sitused (sourced) to Ohio. In other words, the sale is to another entity in Ohio.
Who is Subject to the CAT?
The CAT applies to most businesses including but not limited to the following:
- Retail
- Wholesale
- Service
- Manufacturing
- Other general businesses
The type of business organization does not matter. The following are subject to the CAT:
- Sole Proprietorships
- Partnerships
- LLC’s
- S corporations
- C corporations
- Disregarded entities
- Trusts
All these business are subject to the CAT if their taxable gross receipts are greater than $150,000 in the calendar year.
There are a few businesses that are exempt from the CAT. They include the following:
- Non-profit organizations
- Most governmental entities
- Some public utilities
- Dealers in intangibles that pay the Ohio dealers intangibles tax
- Financial institutions that pay the business franchise tax
- Insurance companies that pay the insurance premiums tax
Every company that falls into one of above taxable categories must register with the State of Ohio to pay the CAT. They can do this on the Ohio Business Gateway website. The Ohio Business Gateway offers electronic registration and filing tools for the CAT.
How do I Calculate my CAT?
|
Taxable Gross Receipts |
Annual Minimum Tax |
CAT |
|
$1 Million or less |
$150 |
No additional tax |
|
More than $1 million but less than or equal to $2 million |
$800 (paid Quarterly) |
.26% x (taxable gross receipts - $1 million) |
|
More than $2 million but less than or equal to $4 million |
$2,100 |
.26% x (taxable gross receipts - $1 million) |
|
More than $4 million |
$2,600 |
.26% x (taxable gross receipts - $1 million) |
When is my CAT due?
Annual Payers (less than $1 million in annual sales) the annual minimum tax of $150 is due 5.11.15.
Quarterly Payers (more than $1 million in annual sales)
2014 4Q is due 2.10.15
2015 1Q is due 5.11.15
2015 2Q is due 8.11.15
2015 3Q is due 11.10.15
For more information regarding the CAT, please visit the Ohio Department of Taxation's website here.
