Income/Franchise:
Ohio: Release Addresses Legislative Changes on Municipal Net Profit Tax and Remote Workers
Press Release: Municipal Net Profit Tax Information Release MNP 2024-01, Ohio Dept. of Tax. (3/6/24). The Ohio Department of Taxation (Department) issued a press release advising impacted taxpayers and municipalities of recent law changes made by operating budget legislation enacted last year [see H.B. 33 (2023) and previously issued Multistate Tax Alert for more details on this legislation] related to the municipal net profit tax as administered by the Department. Specifically, the release addresses how some taxpayers can make an election to use a modified Ohio municipal income tax apportionment formula with respect to net profits attributable to the activities of remote employees and owners for taxable years ending on or after December 31, 2023. The modified formula generally assigns the remote employees’ or owners’ property, payroll, and receipts to a “qualifying reporting location,” which is determined using a hierarchy of locations starting with the place where an employee performs services for the business on a regular or periodic basis. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
