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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:

May 02, 2019

Big changes to BID, other tax provisions on the table

The Ohio House Finance Committee on May 2 accepted several tax changes to the amended version of Ohio’s biennial budget, chief among them to significantly cut the benefits from Ohio’s Business Income Deduction.
Apr 25, 2019

Reminder: Next muni tax deadline is May 1

Ohio businesses with a taxable year that begins on March 1 that want to file their 2019 municipal net profit tax return with the Ohio Department of Taxation must register by midnight, May 1.
Apr 18, 2019

Reminder: CAT return due May 10

The Ohio Department of Taxation this week issued a reminder to all commercial activity tax (CAT) practitioners and taxpayers that the first quarter 2019 CAT return is due May 10.
Apr 09, 2019

With new SALT limit, IRS explains tax treatment of state and local tax refunds

The IRS has clarified the tax treatment of state and local tax refunds arising from any year in which the new limit on the state and local tax (SALT) deduction is in effect.
Apr 05, 2019

OSCPA prevails in latest municipal tax reform battle

Ohio’s 10th District Court of Appeals this week unanimously denied a motion for reconsideration collectively filed by over 160 cities seeking to overturn laws that enabled sweeping, pro-taxpayer municipal income tax changes.