In addition to providing certain taxpayer information to the Department upon a taxpayer’s election to opt-in with the Department, a municipal corporation (including a JEDD or JEDZ) must do the following by January 31st:
Certify the tax rate in effect as of January 1st. See R.C. 718.80(C)(1).
Provide the name and mailing address of up to two persons to whom the municipal corporation requests that the commissioner send taxpayer information, including tax return information and monthly distribution reports. See R.C. 718.84(D).
Additionally, if a municipal corporation changes its tax rate during the year, the municipal corporation must certify the new rate to the tax commissioner at least 60 days prior to the effective date of the new rate.
Business taxpayers have a choice for the net profit tax. Those making the election will be subject solely to the Department of Taxation's administration of the net profit tax beginning with the year of election. These municipal net profit tax returns can be filed using the Gateway or through another electronic method approved by the Tax Commissioner. Taxpayers may only opt-in for the municipal net profit tax. The Department does not administer municipal withholding tax or municipal individual income tax.
As JEDD and JEDZ information, including parcel numbers and maps, is provided to the Department in accordance with O.A.C. 5703-41-02, the Department will share this information with the Department of Administrative Services (DAS). DAS developed a new look-up feature for JEDD and JEDZ addresses available here.
Municipal Corporations can certify tax rates and authorized contacts in the Local Government Portal. Tax rates and contacts must be certified by January 31st each year. If you do not have access to the Local Government Portal, please contact the Business Tax Division at 844-238-0403.
Municipal Corporations can verify tax rates and authorized contacts in the Local Government Portal. If you do not have access to the Local Government Portal, please contact the Business Tax Division at 844-238-0403.
Municipal Corporations can update tax rates and authorized contacts in the Local Government Portal. If you do not have access to the Local Government Portal, please contact the Business Tax Division at 844-238-0403.
The municipality, JEDD, or JEDZ should submit the appropriate information to the Department as soon as possible. Please contact the Business Tax Division at 1-844-238-0403 to discuss submission methods or for additional questions.
Both R.C. 718.15 and 718.151 require a municipal corporation and taxpayer to enter into an agreement specifying all of the conditions of the credit, prior to the municipal corporation passing an ordinance granting a credit. The Department is asking for a copy of that agreement in addition to the ordinance.
Yes, JEDDs and JEDZs are considered “municipal corporations” for purposes of the municipal net profit tax and have the same responsibilities as municipal corporations under the law (e.g., JEDDs and JEDZs must provide taxpayer information to the Department, certify the tax rate, and provide contact information). Also, the Department adopted administrative rule 5703-41-02 which requires JEDDs and JEDZs to provide additional information to the Department. Please see information release “MNP 2017-01: Information for JEDDs and JEDZs” at the following webpage for more details: Municipal New Profit Information Releases.
There is no need for municipalities to send the Department a copy of the ordinance/resolution adopting the new provisions of Ohio Revised Code Chapter 718.
The Department will distribute tax collected from taxpayers that opt-in with the Department to the municipalities through OAKS similar to the distributions made for municipal income tax on electric light companies and telephone companies.
The election for administration by the Department automatically renews each year unless the taxpayer notifies the Department that it is terminating the election. The taxpayer must terminate the election by the first day of the third month of the taxpayer's taxable year.
The Ohio Business Gateway has been programmed to not allow late opt-ins. The taxpayer will receive an error and can switch their opt-in to the following tax year. If the Department receives a late paper registration (opt-in), the Department will contact the taxpayer to let them know the registration is invalid for the current tax year, but that it can be processed for the next tax year.
Any notification provided to the municipality that sufficiently identifies the taxpayer and their election to opt-in with the Department satisfies the notification requirement.
Taxpayers should notify municipalities, in which they conducted business during the previous taxable year, of their election to opt-in with the Department on or before the first day of the third month after the beginning of the taxpayer's taxable year. As a courtesy, the Department will also provide municipalities a listing of taxpayers who have recently registered with the Department.
By registering with the Department on or before the deadline, the taxpayer has made a valid election and the municipality should act accordingly. As a courtesy, the Department will also provide a listing of taxpayers who have recently registered with the Department.
The notification forms received from taxpayers are for the municipality's use. Municipalities are required to submit to the Department the taxpayer information outlined in R.C. 718.80(C)(2). The Department has prescribed form MNP-TTI - Municipal Net Profit Tax Transfer of Taxpayer Information form for municipalities to provide the required information.
No. Because a taxpayer's opt-in automatically renews until terminated by the taxpayer, municipalities should only have to provide this information once per taxpayer, unless the taxpayer terminates their election to opt-in and then opts back in during another taxable year.
Currently, the Department accepts form MNP TTI via paper or through the Local Government Portal. A paper form can be submitted via mail, secure FTP, fax, or secure e-mail. There is also a file generator available on the Department’s website that can be used to upload the information through the Local Government Portal.
Please complete form MNP-TTI - Municipal Net Profit Tax Transfer of Information and provide it to the Department indicating the taxpayer did not have a filing requirement in your municipality. If the municipality takes no action, it may receive follow up requests from the Department for the taxpayer's information, as the Department obtains the list of municipalities from the taxpayer.
Form MNP-TTI has a check box that municipalities should use to indicate that the taxpayer has not yet filed its final return with the municipality. Municipalities should check this box and return the form within 90 days. Once the taxpayer files its final return, the municipality has 45 days from the filing of the final return, but not later than the first day of the last month of the taxpayer's fiscal year to submit the taxpayer's information to the Department.
Municipalities should submit updated information to the Department any time a figure has changed, in accordance with R.C. 718.92, from that which was originally reported.
The Gateway created a new menu choice for municipal net profit tax services provided to those taxpayers who opted-in with the Department. The Department does not own or make any changes to the former municipal net profit tax function on the Gateway.
No. Taxpayers that elect to opt-in with the Department will submit their payments to the Department, through either the Gateway or the Treasurer of State.
The Department will apply penalties in accordance with R.C. 718.89.
The Department has advised taxpayers to request a refund of any estimated payments erroneously remitted to a municipality and make an estimated payment to the Department.
If the taxpayer is using the Gateway, the taxpayer is only able to make payments for years it has opted-in. The Department would send the check back to the taxpayer and notify the taxpayer that they need to make the payment with the municipality.
The Department will provide monthly distributions through direct deposit similar to payments received for the municipal income tax for electric light companies and telephone companies.
No. R.C. 718.83 requires the Department to provide monthly distributions directly to the municipality.
Under R.C. 718.85(B), amounts received for the municipal net profit tax are credited to the municipal income tax fund.
Interest accruing to the municipal income tax fund will be distributed in accordance with R.C. 718.83(A).
Reports will be provided to the contacts certified by the municipality under R.C. 718.84(D).
The Department will provide the information outlined in R.C. 718.84 in May and November of each year.
The Department provides opt-in reports to authorized recipients through the Local Government Portal. If you do not have access to the Local Government Portal, please contact the Business Tax Division at 844-238-0403.
The Department will provide the information outlined in R.C. 718.84 in May and November of each year.
No. Though Am. Sub. H.B. 49, as enacted, required the Department to collect an administrative fee of 0.5% from municipal corporations, the fee was ruled unconstitutional by the Ohio Supreme Court. See Athens v. McClain, Slip Opinion No. 2020-Ohio-5146.
Upon request, the Department will list a tax-sharing district separately on its forms to assist your municipal corporation with tax distributions. If your municipal corporation is party to a tax-sharing agreement (other than a JEDD or JEDZ) and needs to have the revenue collected from taxpayers operating in a certain area earmarked to comply with the terms of the tax-sharing agreement, you must fill out form MNP TS, Request to List Tax-Sharing District, available on the Department’s website at https://www.tax.ohio.gov/Forms.aspx.
The Department will distribute tax collected in tax-sharing districts to a designated city or village and that city or village will need to distribute the tax collections according to the terms of the agreement. Please see information release “MNP 2018-03: Tax-Sharing Districts” at the following webpage for additional information: https://www.tax.ohio.gov/MunicipalTax/informationreleases.aspx.
Taxpayers that have opted-in with the Department should contact the Business Tax Division at 1-844-238-0403 for assistance.
The Department only has the authority to administer the tax for taxpayers that opt-in with the Department.
For taxpayers opted-in with the Department, we will send a billing notice, followed by an assessment, and certify the assessment to the Ohio Attorney General for collection, if necessary.
The municipality retains responsibility for prior tax year administration.
Municipalities can refer the taxpayer to the Department for audit under R.C. 718.84(F).
The Business Tax Division and Revenue Accounting Division are responsible for the review and accumulation of data and distribution of reports. The Department will adjust staffing levels accordingly for future needs.