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equal to 50% of the taxpayers Ohio small business income up to $250,000 ($62,500 MFS & $125,000 MFJ).
Ohio small business investor income means the portion of a
taxpayers adjusted gross income that is business income apportioned or allocated to Ohio.
Schedule C Income Schedule E Income from S Corporations, partnerships and rentals. Schedule F
Ohio Use Tax - Are you one of the 300,000+ Companies without an account?
What is use tax?
When no sales tax is charged on taxable goods or
services
Internet purchases Out of state purchases In state purchases
Sales tax is charged on the front-end by the seller. Use tax is due on the back-end by the purchaser, when the sales tax collection process breaks down.
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pallets, shelving, tags, cranes/lifts/pulleys, tables/platforms, tooling, conveyors, boxes, containers, transport to or from storage, etc. are taxable if used before the manufacturing process begins.
manufacturer. When all processes that change or alter its state or form or enhance its value are finished, even though the item subsequently will be tested to ensure its quality or be packaged for storage or shipment.
If the product will be further manufactured by the same
manufacturer at a different manufacturing facility, the product is still in-process and is not completed.
Can be numerous manufacturing processes in same plant,
handling equipment that moves the product between the production machines, and any equipment, such as tanks, shelves, or racks, that temporarily store or hold the product in between production machines are exempt.
Items after manufacturing and before packaging are outside of the exemption, and may be taxable of no other exemption applies.
Consumables - Catalysts, solvents, water, acids, oil, and similar consumables that interact with (but not become part of) the product and that are an integral part of the manufacturing operation.
Temporary Storage looking for items that serve as a placeholder only. Holding for the next machine in the process in line is ok, waiting for a month (which is not needed for curing or the like) is too long thats regular storage and is taxable.
Exempt - Power
The power itself, the generation or extraction of the power, and anything used to get the power there, are exempt.
Electricity, coke, gas, water, steam, and similar substances. Producing or extracting those substances. Machinery, equipment, and other tangible personal property
used to treat, filter, pump, alter voltage, or otherwise make the substance suitable for use in the manufacturing operation.
Wiring to get power to the machines on the mfg. floor or to the
facility.
Exempt - Reclamation
Machinery, equipment, and other tangible personal property that treats, filters, cools, refines, or otherwise renders water, steam, acid, oil, solvents, or similar substances used in the manufacturing operation reusable, provided that the substances are intended for reuse and not for disposal, sale, or transportation from the manufacturing facility.
It has to be the same manufacturing facility.moving things
Monitoring items that display conditions of/in the machinery are exempt. Recordkeeping devices are taxable.
consumables (acid).
This is a separate manufacturing process. Machines used to sharpen blades or other tooling
Inventory Control
Recordkeeping testing? Ordering/Billing
manufacturing
Storage lockers for clothes, tools, etc..
manufacturing operation
Tangible property to be incorporated into realty (business
collection, lighting, etc..) except in special limited areas where such control is essential for production to occur).
Note that keeping things from entering the exterior environment is a separate exemption.
machinery (eyeglasses, gloves, earplugs, first aid supplies, fire extinguishers, etc..)
Research and Development (there is a separate exemption
for this)
Vehicles that are registered for operation on highways.
Questions?
Contact Information
Chad A. Bice, CPA Tax Director, Director, State & Local Tax. Direct Dial: 740-454-3198 chad.bice@reacpa.com Christopher Axene, CPA Federal Tax Planning Direct Dial: 614-923-6558 chris.axene@reacpa.com
Questions?