Beginning January 1, 2013, businesses with Ohio taxable gross receipts between $150,000 and $1 million will be subject to a minimum Commercial Activity Tax (CAT) of $150. For taxable gross receipts in excess of $1 million, the tax rate will continue to be .26 percent.
If your business files quarterly CAT returns, you will be required to apply the full $1 million exclusion from gross receipts to the first quarter and carry forward any unused exclusion to future quarters in the same calendar year. Currently, taxpayers apply only $250,000 of the exclusion to each quarter and carry over any unused amount to future quarters. Note that the amount of exclusion has not changed – only the method of applying it.
Please contact your Schenck account director if you need assistance filing your Ohio CAT returns.