Ohio Tax Commissioner Joe Testa is urging all eligible Ohio businesses to not miss the chance to fix a tax problem they may not even be aware of.
On May 1, 2013, Ohio’s first-ever use tax amnesty program will end as will the opportunity for businesses to pay — with no penalty or interest — any unpaid use tax liability incurred since January 2009.
Testa says the goal of the amnesty has been to increase awareness and understanding of the use tax among business taxpayers. The effort has succeeded. Since the program began Oct. 1, 2011, businesses have paid more than $19.8 million in use tax owed.
The use tax is a complement to the sales tax – same tax rate; same tax base – but Testa says many business taxpayers aren’t even aware it exists. In general, the use tax comes into play when an out-of-state supplier does not collect Ohio sales tax. In those cases, the Ohio consumer is obligated to pay use tax.
Testa said the use tax is a growing issue with more businesses buying products and services from suppliers outside Ohio. “It can be complicated keeping track of what’s taxable and what’s not,” Testa said. “The amnesty has definitely helped businesses better understand the tax and pay off a lot of outstanding use tax debt.”
Businesses wanting amnesty must register for a use tax account and going forward, comply with use tax laws. A payment plan is available. All applications for amnesty received or postmarked May 1st or earlier will be considered.
For more information, visit the Ohio Department of Taxation web site – tax.ohio.gov – or call 1-800-304-3211.
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