Ohio State and Local Tax Updates March 2019

Ohio Board of Tax Appeals (BTA) affirms assessment against convenience store operator

March 27, 2019

The Ohio Board of Tax Appeals (BTA) affirmed an assessment against a convenience store operator. In this case, the taxpayer argued that the audit method used in the assessment had been flawed. He claimed the tax commissioner had failed to consider manufacturer rebates, and hadn’t properly accounted for unsold inventory, theft, waste, and breakage. But the BTA ruled that using the mark-up method was necessary because the operator hadn’t kept complete records. Nor did he prove that the taxable sales were calculated improperly. (Dkt. No. 2018-296)


Ohio expands sales and use tax exemption for certain items used in manufacturing

March 27, 2019

Attention manufacturers: The Ohio Department of Taxation has expanded the sales and use tax exemption for certain items used in manufacturing. This includes items used during laundry and dry-cleaning services, such as machinery, equipment, and cleaning detergents and solvents. The exemption now also includes equipment and supplies used to clean processing equipment in a continuous dairy product manufacturing operation. Machinery and equipment used for research and development are now also eligible for the exemption. The changes took effect March 24.


Ohio partially denies property tax exemption for public worship building

March 20, 2019

A property tax exemption for an Ohio building to be used for public worship and, purportedly, for charitable purposes was partly denied. The Ohio Board of Tax Appeals (BTA) upheld the tax commissioner’s denial of exempting the building’s 2nd and 3rd floors. The taxpayer had said the floors would be used as transitional and emergency housing for at-risk women, human trafficking victims and displaced families. But the BTA ruled that the applicant’s assertion lacked substance, because there were no specific plans for exempt use. (Dkt. No. 2018-1171)


Ohio affirms tax assessment against going-out-of-business taxpayer

March 20, 2019

The Ohio Board of Tax Appeals (BTA) affirmed the sales tax assessment against a going-out-of-business taxpayer. It had contended that the purchase mark-up analysis used by the tax commissioner didn’t account for “excessive use of inventory due to the employees’ knowledge of the store closing.” The BTA disagreed, noting that the use of that methodology was necessary due to the taxpayer’s failure to keep complete, accurate records. Plus, no evidence was in the record to support the taxpayer’s claims of theft, waste and inventory loss, it said. (Dkt. No. 2018-1589)


Ohio landscaper contests use tax assessment for his purchase of ATV

March 13, 2019

An Ohio landscaper contested the use tax assessment for his purchase of an ATV. He argued that it came equipped with accessories to facilitate his business as a commercial plant-vegetable seller and was, thus, tax-exempt. But the OH Board of Tax Appeals upheld the original assessment. It noted that the OH Supreme Court has held that the purchase of equipment for transporting materials in an agriculture business doesn’t qualify for an exemption. And it ruled that the purchase of equipment and tools for his landscaping business also is taxable. (Dkt. No. 2018-1033)


“Unauthorized practice of law” cited in valuation complaint

March 6, 2019

The Ohio Board of Tax Appeals (BTA) has cited the “unauthorized practice of law” in a case involving a property tax complaint against a valuation. The BTA ruled that the individual representing the property owner in the case involving a county board of revision (BOR) wasn’t licensed as an attorney in OH. Nor was he one of the enumerated persons authorized to file complaints under the OH tax code. As a result, his filing constituted the unauthorized practice of law, the BTA said. Thus, he didn’t properly vest jurisdiction in the BOR. (Dkt. No. 2018-1325)


Ohio nonprofit’s request for a public worship tax exemption denied

March 6, 2019

The nonprofit used the property as a Christian-based daycare, with weekly Bible classes for school-age children. It argued to the OH Board of Tax Appeals (BTA) that, as an entity within a larger ministry, the property should qualify for the exemption under the OH tax code. However, the BTA found no error in the tax commissioner’s earlier denial. It noted that, to qualify for the exemption, the property can’t be merely supportive of, or incidental to, public worship. (Dkt. No. 2017-1086)

© 2019

Scroll Up