Commercial Activity Tax {CAT}

[ACE]

Any Sole proprietorship,S or C corporation, LLC, Partnership must register with the State of Ohio if you are to have gross receipts of $150,000 per year. Starting this year {2005}

The registration must be received by Nov 15,2005, the cost is $20.00 if by mail or $15.00 if done over the web. This will be credited back to you on your first years tax.

There are penalties if you do not register By Nov 15,2005.

If you have questions call 1-888-722-8829 or e-mail by visiting tax.ohio.gov and click on the contact us link.

Out of state business may also be required to pay this tax,it is a privelage tax to do business in Ohio.

 

[Lawrence]

Ohio - always trying to run commerce out of the state.

What a shame. I guess they didn't learn when they tripled the toll road fees for trucks 5 years ago.

Lawrence,
Expediters Online.com


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[greg334]

> Any Sole proprietorship,S or C corporation, LLC,
>Partnership must register with the State of Ohio if you are
>to have gross receipts of $150,000 per year. Starting this
>year {2005}
>
> The registration must be received by Nov 15,2005, the cost
>is $20.00 if by mail or $15.00 if done over the web. This
>will be credited back to you on your first years tax.
>
> There are penalties if you do not register By Nov 15,2005.
>
> If you have questions call 1-888-722-8829 or e-mail by
>visiting tax.ohio.gov and click on the contact us link.
>
> Out of state business may also be required to pay this
>tax,it is a privelage tax to do business in Ohio.

I am just wondering if forcing "foreign" corporations (and not registered in OHIO) who only pass through pay a tax for "privilage" using Federal paid highways that falls under a part of interstate commerce will sue in federal court due to the violation of the interstate commerce regulations have been established through the federal goverment and been decided already in the courts?

 

[davekc]

Welcome to the Buckeye
I quess another reason why it is considered the communist state.

NY and IL aren't far behind


Davekc

 

[dukesadog]

Just dont buy anything within the state, I would send letters/email to whomever the state senators/congressmen are and tell them you,your family,your pets,relatives, will no longer make any purchases from any retail establishments in Ohio..ever.

If enough people do that then everything in tax they have gained by the new law will be lost in salestax revenue that they no longer receive, making the lawmakers look like bafoons to the residents...

If it was me I would make up a great big T-shirt stating Dont buy "it" in Ohio.

dukesadog

 

[tiredofsittn]

i think dukes on to something!!!!!!

 

[ACE]

I brought this this information to the site so people would be aware of the this new tax registration. So they would not get penalized.

This tax is to replace a number of other taxes.

The state sales tax was lowered by .5%. effective July 1,2005.

The franchise tax on coporations is being eliminated.

Personal property tax on inventory and machinery is being eliminated.

Nobody likes a new tax but this one will help stimulate the growth of business in Ohio. By removing the above taxes which are outdated and complicated and restricated the investment in new machinery.

Most of this is being done over a 5 year period.

This is an attempt to make the tax system easier for business.

 

[davekc]

As of today, I am not that educated on this tax bill since I don't live in Ohio.
For owner operators grossing over $150,000, they are getting hit with two taxes. Personal income tax and this new commercial tax.
I may be wrong but that seems counterproductive to spurring business growth.
Any business that is over that $150,000 gross faces a new tax that they are not paying now.
We have trucks plated in TN and FL and just pay the IRP renewal fees.
Depending on the truck, that is $700 to $800 per year.

To be fair, sales taxes are slightly higher, but no income tax.

I am one that just doesn't support additional taxes of any kind. Most of the intented proceeds never end up going to where they were designed.
Just my take.

Davekc

 

[dukesadog]

There used to be a company in Georgia ( Underwood Trucking) that hauled exclusively for Lithonia Lighting and old man Underwood would give out gift cards if you didn't buy anything in the state of Lousianna. He also had a strict never buy fuel there ever rule.

Seems he had some run in's over that old buy fuel here or else thing from years ago.

I would be willing to bet that in time the CAT tax will be ruled un-constitutional and refunds will have to be made....just like the Florida law 1990-94 where they charged people coming into the state 2000.00 for new plates at the DMV but the locals paid 16.00..they had to pay everyone back..

Thing about this new tax is they cant seem to explain to anyone what it really means or how it works according to the OOIDA article.

dukesadog

 

[tiredofsittn]

just like this flat tax everyones talking about, its good if you have taxes held out of your check, really good, but if your an ic like we all are its bad. they are saying it simplyfing things but i think its more to it. lots of companies are starting to use ics,and think of all the immigrant labor that dont pay taxes.i think they said 21% flat tax on everything, cars, houses, food, when i file every year i show depreceation on my truck and other write offs and really dont pay any taxs at the end of the year, but if they pass this that 21% is going to hurt.

 

[tiredofsittn]

also about the cat tax, ace said property and franchise tax would be eliminated. state sales tax would be lowered, well thats good if you live in ohio but it says any body working in or through ohio not just living there.

 

[kwexpress]

KW Express
o/o till i die

SO what people just own more than one corporation and make 149,999.99 under each just to say piss on you

 

[Broompilot]

Serious question, is that 150K gross revenue in Ohio or all 50 states and Canada??? If it is the later than I do not see how it can be inforceable since they (Ohio) did not collect in the boundries of their juristiction....

If your a resident of that state than possibly yes if your an out of state'r than how could they do this??? Please explaine this question.

 

[ACE]

Broompilot
It is only within Ohio.
So most I/C's will not have made the $150,000 threshold with in Ohio.

 

[JohnMueller]

I am not sticking up for Ohio and their new CAT tax. I live in, and work in Ohio. Many other states have similar "Ad Valorem" (property, etc...) type taxes that most independent contractors or owner operators are not aware of. Arkansas, Kansas and Kentucky immediately come to mind. These taxes are based on all kinds of criteria, not simply revenues produced in their states but also miles run, age of equipment, value of equipment, even tire size - and so on. The carriers are generally required to file and pay these taxes. Most carriers do not pass on these additional taxes to their independent contractors/owner-operators.
Having been in the trucking industry and dealt with regulatory issues specifically for quite a number of years, I have seen various taxes come and go. I am hoping that this new CAT will be short-lived. If you are based in Ohio, write your congressman and let them know your feelings. I've believe that OTA (Ohio Trucking Association) is going after this new tax. Will be interesting to see if progress can be made in eliminating this "tax".

HotFr8Recruiter