Municipal Net Profits Tax: Act now before the registration deadline

By Greg Saul, Esq., CAE, OSCPA tax policy director 

The Ohio Department of Taxation this week released a tax alert reminding businesses on a calendar fiscal year who want to file their 2022 municipal net profits tax with ODT, must register on or before, April 15. 

The registration deadline was previously March 1, but it was extended with the recent enactment of House Bill 228, an OSCPA-backed measure that updated ODT’s centralized collection process. Members can use this Registration Generator Tool to register their business or clients. 

House Bill 228 also requires ODT – rather than the taxpayer – to notify cities when a business has opted in or out.  Centralized collection of the municipal net profits tax has been available since 2018, but 2022 is the first tax year that businesses will benefit from the new law changes. 

Businesses that choose to file the municipal net profits tax with ODT will file up to four declaration of estimated payments and only one return that will cover all municipalities. 

Members who use one of the following commercial software vendors can file and pay through the IRS Modernized e-File (MeF) system. Here’s the list of 2021 MeF Approved Vendors. 

If you need assistance, please contact the Ohio Department of Taxation at MNPTax@tax.state.oh.us or call the Business Tax Division at (844) 238-0403.