Buckeye Reporter

The Ohio Commercial Activity Tax (CAT) will see changes beginning January 1, 2025. One of the key updates is the increase in the annual exclusion amount from $3 million to $6 million. This means that businesses with taxable gross receipts of $6 million or less per calendar year will not be required to pay the CAT.

Businesses liable for the quarterly payment of this tax and expecting their taxable gross receipts to fall below $6 million in 2025 should consider canceling their CAT accounts promptly. They should file their final returns by February 10, 2025, and ensure that their account cancellation is effective from December 31, 2024.

It has been stated, "The annual exclusion amount is increased to $6 million." Additionally, "Taxpayers with taxable gross receipts of $6 million or less per calendar year will no longer be subject to the CAT."

For businesses whose taxable gross receipts surpass $6 million, the existing tax rate of 0.26% will still apply.

Those seeking more advice on these changes should contact a financial consultant. Further information is available online at tax.ohio.gov/catlawchanges.