Legal Resources - Tax Rules

Tax Rules

The Ohio Revised Code grants rule-making authority to the Ohio Department of Taxation to adopt new rules. Additionally, the Department may review, amend and rescind current rules. The Department of Taxation posts draft rules here for an initial comment period. Some rules are then submitted to the Common Sense Initiative (CSI) for further review and comment. Finally, draft rules are submitted to the Joint Committee on Agency Rule Review (JCARR) for final review and ultimate publication as updated rules in the Ohio Administrative code (the Final Rules). In compliance with Ohio Revised Code section 121.95, please click here to access the Department’s inventory of regulatory rules.  Please see below to track progress of current draft/proposed rules.

Draft Rules

Sales and Use Tax

The Business Tax Division proposes the following new rule. All comments regarding the proposed rule should be sent to The Ohio Department of Taxation at TaxRules@tax.state.oh.us by April 24, 2020.  If an interested party would like to comment after April 24, 2020, please contact the Department at TaxRules@tax.state.oh.us to express your desire to comment on the rule.

Rule Number

Rule Title

Proposed Change(s)

5703-9-63

Oil and Gas Industry

New Rule

 

The Business Tax Division proposes the following rule changes. All comments regarding these rules should be sent to TaxRules@tax.state.oh.us by February 5, 2020.

Rule Number

Rule Title

Proposed Change(s)

5703-9-02

Maintenance of records.

No Change.

5703-9-03

Sales and use tax; exemption certificate forms.

Updated to reflect a modified form.

5703-9-04

Use tax; taxable use of tangible personal property manufactured for sale or purchased for resale.

No Change.

5703-9-05

Transactions where tangible personal property is or is to be stored.

Updated to address spacing issues and a typographical error.

5703-9-06

Imposition of tax on transportation services.

No Change.

5703-9-08

Sales and use tax; authority to predetermine (prepay) or prearrange sales tax.

Updated to reflect the correct cross reference in the Revised Code.

5703-9-10

Motor vehicles, off-highway motorcycles, and all-purpose vehicles; tax payment or exemption claim required for certificate of title.

Updated to reflect the names of the forms in their most recent version.

5703-9-11

Returned merchandise and rejected services.

Updated to reference an interconnected statute.  Additionally, an outdated cross-reference was deleted from the text.

5703-9-12

Exchanged merchandise.

Updated to provide guidance on treatment of sales tax of items exchanged in a jurisdiction with a different sales tax rate.

Excise Tax

The Business Tax Division proposes the following Cigarette and Other Tobacco Products rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us by April 27th, 2020.

Rule Number

Rule Title

Proposed Change

5703-15-06

Denial of discount in stamp purchases.

No Change

5703-15-08

Sales of packages of cigarettes for which tax indicia are not available.

 

No Change.

5703-15-09

Tax rate on long cigarettes capable of being cut into parts.

No Change.

Property Tax

The Business Tax Division proposes the following Property Tax rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us by April 27th, 2020.

Rule Number

Rule Title

Proposed Change

5703-3-01

Property excepting oil, gas and water production plants.

No Change

5703-3-02

Oil, gas and water production plants.

No Change

5703-3-03

Filing of balance sheets; effect of repeal and reduction of listing percentage.

Amend

5703-3-04

Dates for listing taxable personal property.

Amend

5703-3-05

Consolidated returns by corporations and joint returns by husband and wife.

 

Rescind

Draft Rules submitted to the Common Sense Initiative

The Common Sense Initiative was established by Executive Order 2011-01K and placed within the Office of the Lieutenant Governor. Under the CSI, state agencies, including the Ohio Department of Taxation, are required to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community (as defined by revised code 107.52, and provide an opportunity for the affected public to provide input on the rules. 

In this section you will find proposed rules, business impact assessments and any additional documentation:

Financial Institutions Tax

The Business Tax division seeks public comments on the following Financial Institutions Tax rule changes.  All comments regarding these rules should be sent to TaxRules@tax.state.oh.us  and CSIPubliccomments@governor.oh.gov by March 31, 2020. Click here for Business Impact Analysis.  Click here for TAX Alert.

Rule Number

Rule Title

Proposed Change

5703-33-01

Electronic filing of annual or estimated tax reports and tax payments

Updated citation to Revised Code to refer to correct R.C. section where OBG is defined, correct “website” and correct web address

5703-33-03

Notification of change in ownership or applicability of chapter

Updated to indicate that account changes may be made via the Ohio business gateway and updated form name and form revision dates

Excise Tax

As part of the Department’s five-year rule review process, the Business Tax Division proposes the following Cigarette and Other Tobacco Products rules. All comments regarding the proposed rules should be sent to TaxRules@tax.state.oh.us and CSIPublicComments@governor.oh.us  by March 31, 2020.   Click here for Business Impact Analysis. Click here for TAX Alert.

5703-15-04

Sales of stamps on credit.

No Change

Proposed Rules Submitted to JCARR

The Department of Taxation files rule proposals with the Joint Committee on Agency Rule Review (JCARR) to begin the legislature's rule-review process. Generally, 41-65 days after the original file date, JCARR schedules the Department of Taxation to appear before a meeting concerning the rule proposal.

In this section you will find rules currently under the review of the Joint Committee on Agency Rule Review:

Excise Tax

Rule Number

Rule Title

Proposed Change

5703-15-02

Notice relative to license revocation proceeding.

No Change

5703-15-03

Use of stamp applying machines or other devices.

No Change

5703-15-05

Discount on sales of tax stamps.

No Change

Sales and Use

Click here for TAX Alert

Rule Number

Rule Title

Proposed Change

5703-9-62

Physical Fitness Facilities

New Rule

Commercial Activity Tax

Click here for TAX Alert.

Rule Number

Rule Title

Proposed Change

5703-29-09

Option for quarterly taxpayers to make estimated payments.

Updated to conform rule to statutory language, eliminate outdated/inapplicable provisions, and update examples.

5703-29-20

Situsing receipts from periodic payments for mobile property.

No Change.

5703-29-21

Pre-income tax trusts, explained with revocation procedures.

Updated citations to Revised Code and statutory due dates.

Financial Institutions Tax

Click here for TAX Alert.

Rule Number

Rule Title

Proposed Change

5703-33-02

Captive Finance Companies

No change

5703-33-04

Pawn shops and pawnbrokers

No change

5703-33-05

Reporting of total equity capital

Updated to provide guidance on law changes from Am.Sub.H.B. 166 (limitation to total equity capital based on 14% of total assets)

5703-33-06

General situsing provision

No change