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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

Personal Income Tax

The Income, Pass-Through and Withholding Tax Division proposes the following rule changes.

Rule Number

Rule Title

Proposed Change

5703-7-01

Determination of NAICS Codes for the Ohio Business Income Deduction

Repealed as a result of changes in Am. Sub. H.B. 110.

Excise Tax

The Excise Tax Division proposes the following rule changes.  All comments regarding the proposed rule changes should be sent to TaxRules@tax.state.oh.us by July 30, 2021

Rule Number Rule Title Proposed Change(s)
5703-13-06 International registration plan, audits and hearings. The rule is being amended to bring the IRP audit and appeals processes in line with most current version of the International Registration Plan and the appellate process used for contesting tax assessments.

 

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:

Commercial Activity Tax

The Business Tax Division proposes the following Commercial Activity Tax rule changes.  All comments regarding the proposed rule changes should be sent to TaxRules@tax.state.oh.us and the Common Sense Initiative csipubliccomments@governor.ohio.gov  by August 17 2021.  Click here for Tax AlertClick here for BIA.

Rule Number

Rule Title

Proposed Change(s)

5703-29-06

Transfers of property into the state.

No change.

 

Financial Institutions Tax

The Business Tax Division proposes the following Financial Institutions Tax rule change. All comments regarding the proposed rule change should be sent to TaxRules@tax.state.oh.us  and the Common Sense Initiative at csipubliccomments@governor.ohio.gov by August 17, 2021. Click here for Tax Alert.  Click here for BIA.

Rule Number Rule Title Proposed Change(s)
5703-33-01 Electronic filing of annual or estimated tax reports and tax payments. Exempts de novo bank organizations from the electronic filing requirement.

Highway Use Tax

The Excise Tax Division proposes the following rule changes.  All comments regarding the proposed rule changes should be sent to TaxRules@tax.state.oh.us and csipubliccomments@governor.ohio.gov by June 30, 2021Click here for Tax Alert.

Rule Number

Rule Title

Proposed Change(s)

Business Impact Analysis

5703-13-03

Maintenance of records for purposes of reporting fuel use tax.

The proposed changes to this rule incorporate documentation and audit procedures from the International Fuel Tax Association (IFTA) agreement. The changes are intended to modernize the list of acceptable records, as well as increase readability and clarity.

 BIA - 5703-13-03

5703-13-04

Single-trip permits.

The proposed changes to this rule increase the “single-trip” permit fee and incorporate the requirements of a permit service to authorize single-trip permits. The fee increase is required by R.C. 5728.03 to reflect changes in the tax rate on motor fuel. The permit service requirements are currently in Ohio Adm.Code 5703-13-05, which is proposed to be rescinded.

BIA - 5703-13-04

5703-13-05

Permit services authorized to issue single-trip permits.

This rule being proposed to merge with 5703-13-05, and thus is being rescinded.

BIA-5703-13-05

Sales and Use Tax

The Business Tax Division proposes the following new rule. All comments regarding the proposed rule changes should be sent to TaxRules@tax.state.oh.us  and CSIPubliccomments@governor.oh.gov by May 5, 2021.  Click here for tax alertClick here for BIA.

Rule Number

Rule Title

Proposed Change(s)

5703-9-63

Oil and Gas Industry

New Rule

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:

Commercial Activity Tax

The Business Tax Division proposes the following Commercial Activity Tax rule changes:  

Rule Number

Rule Title

Proposed Change(s)

5703-29-08

Request for member of a combined taxpayer group to file separately.

No change.

Sales and Use Tax

The Business Tax Division proposes the following sales tax rule changes.  Click here for tax alertClick here for BIA.

Rule Number Rule Title Proposed Change(s)
5703-9-15 Sales and use tax; coupons, coupon books and gift certificates. This rule is being updated to remove and modify outdated references in definitions, add examples and address gift cards distributed pursuant to an awards, loyalty or promotional program.

Additional Resources

Additional Resources