If a business anticipates continuing to have less than $3 million in taxable gross receipts in tax year 2024, Ohio DOT recommends cancelling the CAT account immediately with an effective date of Dec. 31, 2023

The Ohio Department of Taxation (DOT) issued the following important changes to the Commercial Activity Tax (CAT). Beginning Jan. 1, 2024, the following changes apply.

  • The CAT annual minimum tax is eliminated
  • The exclusion amount is increased from $1 million to $3 million.
  • Annual filing is eliminated after the 2023 annual return, which is due May 10, 2024.
  • Taxpayers with taxable gross receipts of $3 million or less per calendar year will no longer be subject to the CAT in 2024.

Impact on Businesses

If a business anticipates continuing to have less than $3 million in taxable gross receipts in tax year 2024, Ohio DOT recommends cancelling the CAT account immediately with an effective date of Dec. 31, 2023

*Please note, you must still file your last annual return for tax year 2023, which is due May 10, 2024.

Cancelling CAT Account

If you’d like to cancel your CAT account, please visit the Ohio Business Gateway at gateway.ohio.gov. and follow the instructions below.

Takeaway

All registered CAT taxpayers with active accounts are required to file returns, even if they do not meet the taxable gross receipts threshold. Businesses that do not cancel their CAT account will be transitioned to a quarterly taxpayer effective January 1, 2024, and will need to begin filing quarterly CAT returns to avoid delinquency notices and assessments.

We are here to help. Reach out if you have questions, concerns or need assistance cancelling your CAT account. Additional assistance is available by contacting the Ohio DOT Business Tax Division at (888) 722-8829 or (800) 750-0750 for persons who use text telephones (TTYs) or adaptive telephone equipment.

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