Commercial Activity Tax filing deadline approaching

All Commercial Activity Tax (CAT) practitioners and taxpayers are reminded that the first quarter 2025 CAT return is due May 12, 2025.  

In 2023, the Ohio Society of CPAs advocated for an increase in the exemption amounts with a phase-in over two years.  The exemption doubles to $6 million in 2025 from $3 million in 2024. After this second round, nearly 90% of all Ohio-based businesses will no longer pay CAT (around 145,000 of the 163,000 CAT payers from 2023). 

Taxpayers are required to file and pay the CAT electronically via the Ohio Business Gateway at gateway.ohio.gov. 

If you anticipate having $6 million or less in taxable gross receipts in tax year 2025, the Ohio Department of Taxation (ODT) recommends that you cancel your CAT account. You may do so by visiting the Gateway at gateway.ohio.gov and selecting the CAT Cancel Account transaction.  

When canceling your account, please enter an effective date of December 31, 2024. If your account is closed as of that date, you will not be required to file a return for the first quarter of 2025. 

Visit the ODT’s website at tax.ohio.gov or contact them at 888.722.8829 with any questions regarding the CAT.