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TAX RULES

The Ohio Revised Code grants rule-making authority to the Ohio Department of Taxation to adopt new rules. Additionally, the Department may review, amend and rescind current rules. The Department of Taxation posts draft rules here for an initial comment period. Some rules are then submitted to the Common Sense Initiative (CSI) for further review and comment. Finally, draft rules are submitted to the Joint Committee on Agency Rule Review (JCARR) for final review and ultimate publication as updated rules in the Ohio Administrative code (the Final Rules). In compliance with Ohio Revised Code section 121.95, please click here to access the Department’s inventory of regulatory rules.  Please see below to track progress of current draft/proposed rules.

 

DRAFT RULES

Sales and Use Tax

The Business Tax Division proposes the following new rule. All comments regarding the proposed rule should be sent to The Ohio Department of Taxation at TaxRules@tax.state.oh.us by April 24, 2020.  If an interested party would like to comment after April 24, 2020, please contact the Department at TaxRules@tax.state.oh.us to express your desire to comment on the rule.

Rule Number

Rule Title

Proposed Change(s)

5703-9-63

Oil and Gas Industry

New Rule

Excise Tax

The Business Tax Division proposes the following Motor Fuel and Horse Racing rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us by June 15, 2020.


Rule Number

Rule Title

Proposed Change(s)

5703-13-07

International Fuel Tax Agreement” taxpayers must file and pay electronically.

Verbiage changes to increase readability and clarify the language. Click for link to current language, here .

5703-23-01

Filing and payment of horseracing tax.

Verbiage changes to increase readability, fix any typos, and clarify the language. Click for link to current language, here .

Commercial Activity Tax

The Business Tax Division proposes the following Commercial Activity Tax rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us by July 13, 2020.

Rule Number

Rule Title

Proposed Change(s)

5703-29-03

Sampling

No change.

5703-29-04

Excluded Person- Consolidated Elected and Combined Taxpayer Groups

No change.

5703-29-05

Commercial Activity Tax Taxpayers Must File and Pay Electronically

Updated to correct cross reference and remove outdated language.

5703-29-16

Qualified Distribution Center

Updated Revised Code cross references based on Am. Sub. H.B. 197.

Petroleum Activity Tax

The Business Tax Division proposes the following Petroleum Activity Tax rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us by July 13, 2020.

Rule Number

Rule Title

Proposed Change(s)

5703-37-01

Records Retention Policy

Updated to reflect change to “calculated gross receipts” in Revised Code.

5703-37-02

Sampling

No change.

5703-37-03

Supplier Must File and Pay Electronically

Updated to correct cross references and typo.

 

Draft Rules submitted to the Common Sense Initiative

The Common Sense Initiative was established by Executive Order 2011-01K and placed within the Office of the Lieutenant Governor. Under the CSI, state agencies, including the Ohio Department of Taxation, are required to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community (as defined by revised code 107.52, and provide an opportunity for the affected public to provide input on the rules. 

In this section you will find proposed rules, business impact assessments and any additional documentation:

Sales and Use Tax

TaxRules@tax.state.oh.us and CSIPublicComments@governor.oh.us by June 22, 2020. Click here for Tax AlertClick here for BIA .

5703-9-10 

Motor vehicles, off-highway motorcycles, and all-purpose vehicles; tax payment or exemption claim required for certificate of title.

Updated to reflect the names of the forms in their most recent version.

Commercial Activity Tax

The Business Tax Division Proposes the following rule changes.  All comments regarding the following proposed rule should be sent to TaxRules@tax.state.oh.us and CSIPublicComments@governor.oh.us by June 22, 2020. Click here for Tax Alert. Click here for BIA.


Rule Number

Rule Title

Proposed Change

5703-29-02

Application of common owners and joint ventures

Updated to provide standard for retroactive consolidation and other clarifications

5703-29-19

Changes in ownership

Updated to reference Ohio business gateway and delete outdated language

 

 

 

 

 

 

 

Excise Tax

The Business Tax Division proposes the following Cigarette and Other Tobacco Products rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us and gov by June 25, 2020. Click here for BIAClick here for Tax Alert.

Rule Number

Rule Title

Proposed Change

5703-15-08

Sales of packages of cigarettes for which tax indicia are not available.

No Change.

 

Proposed Rules Submitted to JCARR

The Department of Taxation files rule proposals with the Joint Committee on Agency Rule Review (JCARR) to begin the legislature's rule-review process. Generally, 41-65 days after the original file date, JCARR schedules the Department of Taxation to appear before a meeting concerning the rule proposal.

In this section you will find rules currently under the review of the Joint Committee on Agency Rule Review:

Excise Tax

Rule Number

Rule Title

Proposed Change

5703-15-02

Notice relative to license revocation proceeding.

No Change

5703-15-03

Use of stamp applying machines or other devices.

No Change

5703-15-05 

Discount on sales of tax stamps.

No Change

 

The Business Tax Division proposes the following Cigarette and Other Tobacco Products rules.

Rule Number

Rule Title

Proposed Change

5703-15-06

Denial of discount in stamp purchases.

No Change

5703-15-09

Tax rate on long cigarettes capable of being cut into parts.

No Change.

Commercial Activity Tax

The Business Tax Division proposes the following rule changes.

Rule Number

Rule Title

Proposed Change

5703-29-09

Option for quarterly taxpayers to make estimated payments.

Updated to conform rule to statutory language, eliminate outdated/inapplicable provisions, and update examples.

5703-29-21

Pre-income tax trusts, explained with revocation procedures.

Updated citations to Revised Code and statutory due dates.

Property Tax

The Business Tax Division proposes the following Property Tax rules.

Rule Number

Rule Title

Proposed Change

5703-3-01 

Property excepting oil, gas and water production plants.

No Change

5703-3-02

Oil, gas and water production plants.

No Change

5703-3-03 

Filing of balance sheets; effect of repeal and reduction of listing percentage.

Amend

5703-3-04

Dates for listing taxable personal property.

Amend

5703-3-05

Consolidated returns by corporations and joint returns by husband and wife.

Rescind

Personal Income tax

The Personal Income Tax Division proposes the following rule changes.  

Rule Number

Rule Title

Proposed Change(s)

5703-7-01

Determination of NAICS Codes for the Ohio Business Income Deduction.

NEW

5703-7-02

Applications for personal income tax refunds.

Typo fix

5703-7-03

Documentation to Support a Taxpayer’s Joint Filing and Residency Credits

NEW

5703-7-04

Option to filing of declaration of estimated income tax returns by farmers and fishermen.

Verbiage changes to increase readability and clarify the language. Click for link to current language, here.

5703-7-06 

Personal income tax form required for withholding purposes.

Adds the requirement that employee provide their school district income tax number and district name when completing their IT 4, and makes verbiage changes to increase readability and clarify the language. Click for link to current language, here.

5703-7-07

Requirements for requesting inspection of income tax returns.

Minor cosmetic changes.

5703-7-08

Deduction of disability and survivorship benefits.

Clarifies what income qualifies for Ohio’s disability and survivor benefits deduction, and makes verbiage changes to increase readability. Click for link to current language, here.

Additional Resources

Additional Resources