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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:

Jul 26, 2018

ODT to abate gateway-related penalties and interest

Ohio Tax Commissioner Joe Testa on Wednesday said the Ohio Department of Taxation will not assess a penalty or charge additional interest to those it can verify have been impacted by recent issues with the Ohio Business Gateway.
Jul 26, 2018

Reminder: Next muni tax deadline is Aug. 1

Ohio businesses that have a taxable year that begins on June 1 and want to file their 2019 municipal net profit tax return with the Ohio Department of Taxation must register by midnight, Aug. 1.
Jul 19, 2018

Sales tax ‘holiday’ returns Aug. 3-5

Learn what items will be exempt from sales and use tax.
Jul 19, 2018

Reminder: CAT return due Aug. 10

The Ohio Department of Taxation this week issued a reminder to all commercial activity tax (CAT) practitioners and taxpayers that the second quarter 2018 CAT return is due Aug. 10.
Jul 05, 2018

OSCPA files second amicus brief to support muni tax reforms

The Ohio Society of CPAs and other business groups on Monday filed an amicus brief detailing further arguments for the need for the centralized collection and administration of the municipal net profits tax.