Information Release

CAT 2006-01 - Applicable Excise Tax Rates for Purposes of the Commercial Activity Tax; Issued January, 2006; Revised February, 2007

The purpose of this release is to provide taxpayers with the effective excise tax rates for purposes of the commercial activity tax (“CAT”). This release is updated to reflect an increase in the Cuyahoga County, Ohio cigarette excise tax, effective February 1, 2007. The rates below are the most current rates known to the department as of February, 2007. Taxpayers are advised to verify the rates before relying on this release in order to compute any exclusions from their taxable gross receipts pursuant to divisions (F)(2)(q), (F)(2)(r), and (F)(2)(s) of section 5751.01 of the Revised Code.

OHIO & FEDERAL EXCISE TAX RATES

PRODUCT

FEDERAL

STATE

CUYAHOGA COUNTY, OHIO

Cigarettes (Pack of 20 )

$.39

$1.25

$.345

Cigarettes (Pack of 25)

$.48

$1.56

$.356

Other Tobacco Products (in pounds)

*

17% of the wholesaler’s price **

N/A

Beer (in gallons)

$.58

$.18

$.16

Wine greater than 1/2%, but less than 14% alcohol (in gallons)

$1.07

$.32

$.32

Wine greater than 14%, but less than 21% alcohol (in gallons)

$1.57

$1.00

$.32

Vermouth less than 21% alcohol (in gallons)

*

$1.10

$.32

Mixed Beverages with less than 21% alcohol (in gallons)

*

$1.20

$.32

Apple Cider with greater than 1/2%, but less than 6% alcohol (in gallons)

$.226

$.24

$.24

Naturally Sparking with less than 21% alcohol (in gallons)

$3.40

$1.50

$.32

Artificially Carbonated

$3.30

$1.50

$.32

Wine with greater than 21%, but less than 24% alcohol (in gallons)

$3.15

N/A

N/A

Hard Liquor (in gallons)

$13.50

$3.38

$3.00

Motor Fuel – (in gallons)

$.244

$.28

N/A

Motor Fuel – Gasoline (in gallons)

$.184

$.28

N/A

* For the federal excise tax rates on these or any of the above products, please consult the website of the Bureau of Alcohol, Tobacco, and Firearms and Explosives at www.atf.gov.

** As a safe harbor, retailers who wish to exclude the portion of excise taxes paid on other tobacco products, but do not know the price the wholesaler paid for the products may calculate this exclusion by taking eighty per cent of the price paid to the wholesaler for the purchase of the other tobacco products, multiplied by seventeen per cent. It is important to note that, in determining this exclusion, retailers must base their calculation on their purchase price from the wholesaler, and not their selling price to the consumer or another retailer.