What is the Commercial Activity Tax?

The commercial activity tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business activities in Ohio.  Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register for the CAT and file all applicable returns.

Tax payers with gross receipts between $150,000 and $1,000,000 are required to file on an annual basis.  The 2014 Commercial Activity Annual Return and 2015 Minimum Tax Payment Return is due May 11, 2015.  The return can be filed via the Ohio Business Gateway or Telefile (1-800-697-0440).

Taxpayers with gross receipts in excess of $1,000,000 are required to file and pay on a quarterly basis via The Ohio Business Gateway.  The quarterly filing due dates are May 11, 2015 (first quarter), August 11, 2015 (second quarter), November 10, 2015 (third quarter) and February 10, 2016 (fourth quarter).  These taxpayers must also make annual minimum tax payments based on their previous year taxable gross receipts.  The annual minimum tax is due with the 1st quarter filing as follows:

 

Taxable Gross Receipts                                                            Annual Minimum

$1 million or less                                                                         $150

$1 million but less than or equal to $2 million                       $800

More than $2 million but less than $4 million                        $2,100

More than $4 million                                                                    $2,600

 

If you would like more information on how the Commercial Activity Tax affects your business please contact Dave Rodgers, at drodgers@claruspartners.com or 614-545-9100 x34.

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