01/16/2024

Review Ohio Commercial Activity Tax Modifications for 2024

The changes went into effect Jan. 1, 2024

Beginning Jan. 1, 2024, noteworthy changes in the Commercial Activity Tax (CAT) landscape will reshape the tax responsibilities of Ohio CAT taxpayers. 

Here's what you need to know:

• The CAT annual minimum tax is eliminated.
• The exclusion amount is increased from $1 million to $3 million.
• Annual filing is eliminated after the 2023 annual return.
• Taxpayers with taxable gross receipts of $3 million or less per calendar year will no longer be subject to the CAT in 2024.

Assess Your Annual CAT Receipts

The Ohio Department of Taxation strongly urges taxpayers to evaluate their annual CAT receipts. Those anticipating taxable receipts below $3 million in 2024 are encouraged to cancel their CAT account immediately, with an effective date of Dec. 31, 2023 (which you can backdate).

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.