The Ohio Commercial Activity Tax (CAT) will undergo changes beginning January 1, 2025. 

For calendar year 2025, the exclusion amount will increase from $3 million to $6 million. Taxpayers with $6 million or less in taxable gross receipts in 2025 will not be required to file a return with the Department of Taxation.

The CAT rate of 0.26% remains unchanged and will continue to apply to gross receipts over $6 million in 2025 and thereafter.

A taxpayer with $3 million or less in taxable gross receipts during 2024 and anticipating having $6 million or less in taxable gross receipts during 2025 will file a final return to report taxable gross receipts for 2024. A taxpayer that anticipates having $6 million or less in taxable gross receipts in 2025 should cancel its account effective December 31, 2024. The final CAT return is due February 10, 2025. If this taxpayer exceeds the exclusion amount in a subsequent calendar year, they must reactivate their CAT account and resume filing and paying the CAT at that time.

While these changes may relieve filings and payments of the Ohio CAT, many additional states impose similar types of taxes. RubinBrown State and Local Tax (SALT) professionals can help answer your questions or evaluate the impact these and other taxes may have on your business. Please contact one of the SALT professionals or your primary RubinBrown contact for assistance. 

 

Published: 12/18/2024

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