During the Great Depression, the taxi industry boomed in the United States. This growth was fueled, in part, by the fact that the industry was largely unregulated. With many unemployed and underemployed individuals in need of extra money at the time, driving a taxi was a popular pursuit. At that time, drivers used “call boxes” … Continue Reading
The cornerstone of any taxing regime is the situsing of receipts. The taxpaying public must have certainty regarding when its income is subject to tax in a jurisdiction. Recent rulings from the Ohio Department of Taxation (the “Department”) regarding the situsing of receipts for the Ohio Commercial Activity Tax (“CAT”), however, inject ambiguity into what … Continue Reading
Taxpayers routinely use pass-through entities (PTEs) such as limited partnerships, limited liability companies, or S corporations to conduct multistate business. Because most states conform to federal law, there is no entity-level tax on the PTE. Instead, states seek to tax the owners of the PTE on the income received – or passed-through – from the … Continue Reading
In a highly anticipated decision, the Ohio Supreme Court recently held that the physical presence of a taxpayer in Ohio is not a prerequisite for the imposition of the Ohio Commercial Activity Tax (or CAT). This decision will likely signal a “green light” for revenue-hungry states seeking additional to shore up budget deficits.… Continue Reading