Ohio State and Local Tax Updates September 2020

Update to sales tax as applied to Internet-providing equipment

A new release from the Ohio Dept of Taxation updates 2004 information on applying sales tax to the purchase of equipment used to provide Internet services. It addresses post-2004 business model changes, for example, an Internet service provider that operates concurrently as an Internet service vendor and a telecommunications service vendor, mobile telecommunications service vendor, or satellite broadcasting service vendor. The scope of the sales tax exemption in light of these business model changes is explained.

Unreported income billing notices are being sent to Ohio taxpayers

The OH Dept. of Taxation began mailing CP2000 income tax billing notices for tax years 2015 through 2018 on Sept. 3. The notices apply to taxpayers with unreported income who haven’t filed an amended OH Individual Income Tax Return after resolving an IRS CP2000 audit. The notice includes 1) the type and amount of unreported income identified by the IRS on Tax Form 1040, and 2) the total amount of additional tax due and interest owed to the dept. Those who agree with the notice’s determination need NOT file an amended return but can pay online, by phone or by check.

MNPT return filing deadline looming

Sept. 15 is the deadline for Ohio business taxpayers to file their May 2020 fiscal year-end municipal net profit tax (MNPT) returns. Taxpayers are required to file and pay the MNPT electronically via the Ohio Business Gateway at  or through the state’s Modernized e-File.

Ohio Manufacturing Mentorship program for teens goes live

Ohio’s new Manufacturing Mentorship program for teens has gone live. The program, enacted by House Bill 166, introduces young people to manufacturing careers and is meant to build a workforce pipeline for manufacturing jobs. According to the OH Manufacturers’ Association, it enables 16- and 17-year-old students to work in manufacturing without enrollment in a “bona fide educational program.” Participating employers must provide the minor with required training and assign mentors who’ll closely supervise the teens’ workplace activity. Other requirements apply. Read the program fact sheet and review a compliance checklist.

Ohio regulations governing the Motion Picture Tax credit change

The amendments, effective Aug. 28, revise, among other things, application eligibility requirements and the steps to apply for the Ohio Motion Picture Tax credit. The credit provides a refundable tax credit of 30% on production cast and crew wages plus other eligible in-state spending. Under the changes, the application fee is increased to 1% (previously 0.5%) of the credit’s estimated value up to a maximum of $10,000. The amendments also provide updated and new definitions related to the new requirements and a description of the application process.

 

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