You're not alone. The Commercial Activity Tax (CAT) is an annual tax imposed for the privilege of conducting business in Ohio. It applies to taxable gross receipts in excess of $3M from most business activities within the state. Typically, most sales generated in the normal course of business are subject to CAT. However, it only applies to gross receipts that are sitused, or sourced, to Ohio, meaning the sale is made to an entity within the state.
The CAT applies to most businesses including but not limited to the following:
The type of business organization does not matter. The following are subject to the CAT:
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:
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.
|
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) |
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.