A Brighter Way
A Brighter Way
Use tax is a tax on the storage, use or consumption of a tangible personal property and certain taxable services in Ohio. It is a complement to Ohio sales tax. Generally, if you have paid Ohio sales tax on an item, you do not owe Ohio use tax. However, if you have not paid Ohio sales tax, then you may have the responsibility to remit Ohio use tax. In fact, 96 percent of Ohio use tax audits result in use tax liability.
The Ohio Department of Taxation is increasing its efforts to enforce Ohio use tax, and has initiated the Use Tax Education Program or UTEP. During the summer of 2011, the department will begin contacting Ohio businesses it identifies as having use tax liability. Businesses that act soon can avoid a longer look-back period as well as additional taxes, interest and penalties.
The following resources are designed to provide you with a better understanding of Ohio's use tax and the Use Tax Education Program and what you need to do to comply with use tax laws. Effective July 2011, the state suspended its use tax voluntary disclosure program for people qualifying for the amnesty program. Generally, businesses without an Ohio use tax account that have never been contacted about a use tax deficiency by the state will qualify. The voluntary disclosure program will continue for businesses that do not qualify for amnesty.
If you are unsure how the new Ohio Use Tax enforcement program may impact your business, then now is the time to call us. In a brief conversation we can analyze your situation and determine the best way to address the Ohio Use Tax issue. For additional information, email our Ohio Use Tax professionals.
