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solarken
July 10, 2024
Question

Ohio Commercial Activities Tax (CAT)

  • July 10, 2024
  • 1 reply
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What expense account should I use for payments for the Commercial Activities Tax (CAT) that small businesses must pay in Ohio?  And is this expense deductible on federal or state income tax return? I use QB Desktop 2020 version. Thank you!

    1 reply

    FishingForAnswers
    FishingForAnswers
    July 10, 2024

    @solarken  Your question implied that you are a small business.

     

    If so, I would doubt that the CAT is applicable to you at all. There were major changes to it as of January 1st, 2024, and the minimum tax was eliminated altogether.

     

    Reference: https://tax.ohio.gov/business/ohio-business-taxes/commercial-activities/commercial-activities

    S
    solarkenAuthor
    July 11, 2024

    Yes, I just learned about the changes to CAT tax and my business is not likely to be subject to it in 2024 and the next few years, but I am asking for previous years where I did have to pay. I recently participated in the Voluntary Disclosure Program and had to pay for two previous years.

      FishingForAnswers
      FishingForAnswers
      July 12, 2024

      @solarken  Personally, I would track it as an Other Expense. As for the exact name, may as well just call it CATax.

       

      I'm not particularly familiar with the CAT, but from what I understand, it's a tax you pay rather than one you collect.

       

      In that light, it may be deductible; I've known some other local taxes to be. Since I could not find any specific documentation on it, it may be worth consulting with a local CPA, assuming that's not, well, you.

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