As we’ve been telling you over the past few weeks, the state of Ohio is about to step up its efforts to enforce its use tax law. To help businesses better understand and comply with Ohio’s use tax law, Rea & Associates recently created the Ohio Use Tax Resource Center, an online resource center. As far as we know, it’s the only resource center of its kind available to Ohio businesses.
Note: Ohio has established a tax amnesty program since this post was originally created.
The resource center explains when use tax is due, how businesses can comply, shares the use tax experiences of businesses and answers commonly asked questions about the tax. The center also includes a pre-recorded webinar that visitors may access.
So what is use tax? Use tax is a tax that wasn’t paid, but should have been, on taxable property or services a business purchased. It is a complement to the state’s sales tax, and most often occurs when a business purchases goods in-state, out-of-state or over the internet, and the retailer does not collect Ohio tax. Use tax applies to all businesses, regardless of size, that purchase taxable property or services.
The Ohio Department of Taxation has already identified 380,000 businesses that do not have use tax accounts. The agency will begin contacting businesses to enforce compliance soon, but Ohio business owners have the opportunity to lessen their tax liability if they come forward voluntarily before the state contacts them.
No one likes to receive an unplanned tax bill, so don’t let Ohio’s use tax sneak up on you. Learn more by visiting the Ohio Use Tax Resource Center.