SUPREME COURT RULES THAT OUT-OF-STATE INTERNET BUSINESSES MAY BE LIABLE FOR OHIO COMMERCIAL ACTIVITY TAX

On November 17, 2016, the Ohio Supreme Court handed down a decision which held, in effect, that Ohio’s Commercial Activity Tax (“CAT”) may be charged on the gross receipts of an out-of-state business’ Internet sale of goods to Ohio customers if those receipts exceed $500,000.In Crutchfield Corp. v. Testa, Slip Opinion No. 2016-Ohio-7760, the Ohio Supreme Court was presented with these facts: Crutchfield Corp. sold merchandise to Ohio consumers via the Internet and paid no CAT on its gross receipts […]

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