Ohio Department of Taxation

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The Ohio Department of Taxation collects and administers most of Ohio's state taxes, along with several local taxes. Taxes collected include, but are not limited to: cigarette tax, estate tax, individual income, and inheritance tax. In addition, it oversees real property taxes throughout the state. ODOT distributes the revenue it collects to school districts, local governments, and libraries statewide.

The mission of the Ohio Department of Taxation is to help Ohio taxpayers comply with their tax responsibilities, and to do this in a fair way. DOT expects to provide quality service to all taxpayers, and to apply the law fairly in all cases.

Personal property tax has been phased out, and the listing percentage is now zero. The final returns for all general business taxpayers were those due in 2008. Personal property tax for telephone and inter-exchange telecommunications companies ended with the 2010 filings. Outstanding tangible personal property tax from the past is still considered owed to the state.

The Ohio Department of Taxation refers to the sales tax as a "trust" tax, meaning that a consumer pays the tax to a retailer and trusts that the retailer will remit that tax payment to the state. Ohio has a basic state tax rate and additional local tax rates, levied by counties and regional transit authorities. As of this writing, the total combined rate of state, county, and transit authority taxes may not exceed 8.5%.

The consumer use tax rate is equal to the state and local sales tax rate. Some out-of-state sellers have registered with the State of Ohio and collect and remit use tax. Individual taxpayers are responsible for filing use tax returns on purchases if sales tax was not collected.

ODOT advises Ohio vendors who make taxable sales in other states to register with those states and collect their use taxes. The department makes it clear that it may audit vendors and disclose information about interstate sales to all interested states.

Ohio has been an associate member of Streamlined Sales Tax since 2005.

Ohio Sales and Use Tax Exemption Certificates

Ohio allows businesses to make tax-free purchases, provided the purchases are for resale or to be incorporated into a product for sale. To qualify for the exemption, the buyer must provide the seller with a valid exemption certificate. It is the responsibility of the vendor to ensure all customer exemption certificates are accurate and up-to-date.

The consumer must provide the seller with complete documentation to fulfill the exemption certificate requirements. Paper certificates require the consumer's signature in order to be valid.

Ohio accepts the Uniform Sales and Use Tax Certificate created by the Multistate Tax Commission for purchases for resale or incorporation into a product for sale. The Buckeye State also accepts the Streamlined Sales Tax System Certificate of Exemption in place of certain forms, and to notify vendors and sellers of direct payment authority.

Create an exemption certificate for Ohio or any other state with Avalara CertExpress.

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