Registration is now open for taxpayers wishing to elect centralized filing of the municipal net profits tax for the 2018 tax year. The change to optional centralized filings comes from the enactment of HB 49 this past summer. Taxpayers who register are required to file only one municipal net profit tax return (versus potentially 50 or more different returns that some taxpayers are filing) via the Ohio Business Gateway. From there, the Department of Taxation will distribute payments to the appropriate municipalities. For more details on HB 49, see our update from when the bill was signed into law on our blog here.
Taxpayers who intend to take advantage of centralized filings must register on or before the first day of the third month after year-end (March 1st for the calendar year taxpayers). The election can be submitted electronically via Ohio.gov’s registration portal.
Taxpayers are also required to notify all municipality in which business was conducted during the previous year, of their election. New taxpayers should only register and do not need to contact any municipalities.
Upon submitting the registration, taxpayers will not receive a net profit tax account number or confirmation letter until mid-January. Taxpayers can, however, call the Department of Taxation if a confirmation receipt is deemed necessary.
Sole proprietors and single-member LLCs are not eligible for election and should continue to file as standard.
Taxpayers should register before making any 2018 estimated payments or filing any returns.
If you have questions about this tax incentive, and how to take advantage of open enrollment, a member of the Barnes Dennig state and local tax team is available to help. Ask us a quick question here, and we’ll have someone reach out to you.