Ohio Gov. John Kasich recently announced that the state will notify employers who have overpaid Ohio Commercial Activity Tax, rather than relying on the employer to notice the overpayment. The state previously kept any overpayment if the employer did not request a refund.

Ohio Notifies Employers of CAT Refund

Kasich and Tax Commissioner Joe Testa estimated that at least 3,500 Ohio employers are due refunds totaling nearly $14 million. Their audit is ongoing, so those numbers could rise.

“The idea is not that we’re just taking money out of the treasury and just willy-nilly giving it to people,” Kasich said at a press conference announcing the plan. “What we’re doing here is
the really important work of saying you shouldn’t overpay and then we keep your money and not tell you about it. That’s just a rip-off. There’s no other way to describe it other than a governmental rip-off.”

Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register online and file CAT tax payments. The tax is only applied to receipts that are properly sourced to Ohio, but many businesses simply pay the tax on all gross receipts. Barnes Dennig has helped numerous clients recognize such overpayment and request refunds. The state now will do the same.

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