Following the recent enactment of Ohio’s biennial budget bill, Am. Sub. H.B. 33, Ohio’s tax rate on sports gaming receipts increased from 10% to 20% effective July 1, 2023.
This change impacts returns due on and after Aug. 15, 2023, which will report sports gaming receipts received in the month of July 2023 and thereafter.
Even though the enactment of this provision in the bill will be effective after the beginning of the tax period, the Ohio Supreme Court has long held that changes to the tax code can take place after a tax period has begun and can still be effective for the entire tax period. As such, all sports gaming receipts for July 1, 2023, and forward will be taxed at the new rate of 20%.
Questions should be directed to the Ohio Department of Taxation at 855.466.3921.