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Municipal Tax Issues

Municipal tax reform brings simpler compliance

OSCPA’s top legislative priority for years has been achieving meaningful reforms to Ohio’s municipal tax structure—the most complicated in the nation. In 2017, OSCPA worked with Ohio leaders and the Municipal Tax Reform Coalition to pass additional, pro-business reforms that reduce costs and red tape, making it easier for taxpayers to comply with filing requirements.

Ohio Tax Reform
Business taxpayers who file net profits returns in more than one municipality can opt in to file one central return through the Ohio Business Gateway and make estimated quarterly payments.

Centralized Filing FAQ

When is registration open?Open

Effective for taxable years beginning on or after Jan. 1, 2018, taxpayers subject to a municipal net profit tax may elect to file and pay on a centralized basis at http://www.tax.ohio.gov/MunicipalTax.aspx or by filing Form MNP R. Registration has been available with ODT since October 2017.
What is the deadline to register?Open or Close

The taxpayer must register with ODT by the fifteenth day of the fourth month of the taxpayer’s taxable year (April15 for calendar year filers).
Where do filings and payments take place?Open or Close

An electing taxpayer must file any tax return, estimated taxes, or extension through the Ohio Business Gateway (OBG). Payments must also be made through the OBG. The ODT is also exploring the option of allowing taxpayers to file and pay through the Modernized e-File (MeF) program.
Who needs to be notified other than ODT?Open or Close

Taxpayers making the election must also notify each municipal corporation in which the taxpayer conducted business during the previous taxable year by sending Form MNP MN to each municipality. There are two versions of Form MNP MN, one for tax preparers and one for taxpayers. A new business making an election does not have to notify any municipalities of its election.
If a business elects to participate, how long is the commitment?Open or Close

Once the election has been made by the electing taxpayer, it automatically renews year to year unless the taxpayer terminates the election by filing a form with the tax commissioner by the first day of the third month of any taxable year.
Have additional questions?Open or Close

Please visit https://www.tax.ohio.gov/MunicipalTax/FAQ.aspx

Latest news on municipal income tax reform:

Apr 10, 2025

Reminder: ODT offering extended phone support hours through April 15

As the April 15 income tax filing deadline approaches, the Ohio Depart of Taxation is extending the hours of the personal income and school district income tax phone lines to assist with any last-minute questions.
Apr 03, 2025

Save the date: OSCPA April Town Hall to feature ODT panel

Mark your calendar for the next OSCPA Town Hall on Thursday, April 24 at noon. The event will feature a panel of experts from the Ohio Department of Taxation offering a recap of the tax season and a look at what’s ahead.
Mar 28, 2025

Sponsors give testimony on flat tax legislation

Legislators presented sponsor testimony to the House Ways & Means Committee March 26 on HB 30, phasing down over two years the state income tax to a flat rate of 2.75% on nonbusiness income. Business income would remain at its current flat rate of 3%.
Mar 21, 2025

Centralized filing option available for the municipal net profits tax

Ohio businesses with a taxable year beginning Jan. 1 that want to file their 2025 municipal net profits tax with the Ohio Department of Taxation, must register on or before April 15 on the Ohio Business Gateway.
Jun 21, 2024

DOD releases Opportunity Zones Tax Credit application

The Ohio Department of Development (DOD) recently announced the release of the program application for the July 2024 round of the Ohio Opportunity Zones Tax Credit.