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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

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 by April 30, 2021.

Rule Number

Rule Title

Proposed Change(s)

5703-29-06

Transfers of property into the state.

No change.

5703-29-08

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

No change.

 

Personal Income Tax

The Income, Pass-Through and Withholding Tax Division proposes the following rule changes.All comments regarding the proposed rule changes should be sent to TaxRules@tax.state.oh.us by April 30, 2021. 

Rule Number

Rule Title

Proposed Change(s)

5703-7-09

Taxpayers reporting of school district of residence.

The proposed changes to the rule require taxpayers to indicate their school district of residence, or their full-year non-residency, using school district numbers prescribed by the Tax Commissioner. This is simplified from the current version of the rule, which has several tests related to income to determine the proper school district of residence.

5703-7-16

Personal income tax: determination of resident status.

The proposed changes seek to modernize the factors that can, and cannot, be considered when determining a taxpayer’s residency status. The proposed updates also increase the rule’s readability, clarity, and brevity.

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 by April 30, 2021.

Rule Number

Rule Title

Proposed Change(s)

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.

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.

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.

 

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

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

The Business Tax Division proposes the following sales tax rule changes. 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)
5703-9-15 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.

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

The Business Tax Division proposes the following Cigarette Tax rules.   Click here for BIA

Rule Number Rule Title Proposed Change(s)
5703-15-21 Sale of tobacco or other tobacco products or vapor products between licensed other tobacco product or vapor product distributors. Adds provisions for vapor products.
5703-15-23 Cigarette, other tobacco products, vapor products taxpayers and master settlement agreement taxpayers must file and pay electronically. Adds provisions for vapor products.

Tax Equalization

The Division of Tax Equalization proposes the following  rules. 

Rule Number

Rule Title

Proposed Change

5703-25-01

Public notice of any proposed change in rules.

No Change

5703-25-05

Definitions.

No Change

5703-25-06

Equalization procedures.

No Change

5703-25-07

Appraisals.

No Change

5703-25-08

Procedure prior to actual appraisal.

No Change

Additional Resources

Additional Resources