State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Ohio (OH)

OH Sales Tax - Name of Tax and General Application:

Ohio imposes a tax on retail sales of tangible personal property or taxable services in the state. This tax is known as a "sales tax". In addition, a tax is imposed on use, storage or consumption of tangible personal property in the state, or benefits from any taxable services provided. This tax is known as a "use tax" and is only imposed where sales tax has not been collected.

OH Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Ohio provides a list of actions affecting nexus that is too detailed to address here, such as attending trade shows, licensing of software, owning property, providing technical assistance, conducting training, and establishing agency relationships. Copy and paste the following link into your internet browser to view the document: http://www.ttrus.com/docs/OhioUseTaxInformationReleaseST2001-01.doc

OH Local Tax - Do Localities Impose Tax?

Yes, Ohio imposes local sales tax.

OH Resale Certificate Renewal Agreements:

Sales for resale are not taxable and are exluded from the definition of a taxable "retail sale." There are no specific resale certficates provided by Ohio. A general exemption certificate may be used.

OH Resale Certificate Renewal Periods

There is no states expiration period.

OH Statute of Limitations

Later of four years from: the date the return was due or from the date the return was filed.