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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 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.
Apr 04, 2019

Ohio opportunity (zones) comes knocking

State Sen. Kirk Schuring, R-Canton has sponsored legislation authorizing a nonrefundable income tax credit equal to 10% of a taxpayer’s investment in an Ohio opportunity zone.
Apr 04, 2019

ODT reminder: Municipal net profit tax estimated payment deadline is April 15

Taxpayers who have elected to have the Department of Taxation administer the municipal net profit tax for their companies must file declarations and make estimated payments directly via the Ohio Business Gateway.
Mar 28, 2019

Register by April 1 to file municipal net profit tax

Ohio businesses that have a taxable year that begins on February 1st, and want to file their 2019 municipal net profit tax with the Ohio Department of Taxation, must register on or before, April 1st on the Gateway.
Feb 28, 2019

Ohio mulls gas tax hike

The state's gas tax has remained at 28 cents per gallon since 2005, but legislators are discussing an 18-cent increase to address the condition of Ohio's roads and bridges.