Ohio — Gross Receipts / Business Activity Tax

Ohio levies a Commercial Activity Tax (CAT) on each person with taxable gross receipts for the privilege of doing business in Ohio. The tax applies to any activity—whether legal or illegal—that is conducted for, or results in, gain, profit, or income during a calendar year. "Doing business" is defined broadly to include persons with substantial nexus with Ohio. The CAT is not a transactional tax and is not subject to Public Law 86-272 protection. The tax is imposed on the person receiving the gross receipts, not on purchasers, and is in addition to any other Ohio taxes or fees.

Certain entities are excluded from the CAT, including financial institutions subject to other Ohio taxes, insurance companies, and nonprofit organizations.

Source: Ohio Rev. Code § 5751.02

Direct answer: As of June 26, 2026, the Commercial Activity Tax (CAT) exclusion thresholds of $3,000,000 (for 2024) and $6,000,000 (for 2025 and later) are fully administered and enforced by the Ohio Department of Taxation under controlling Department guidance and administrative regulations. However, the codified Ohio Revised Code online at codes.ohio.gov may lag in reflecting these increased amounts, often displaying prior lower exclusion thresholds due to administrative update delays.

Why:

• The CAT statutory exclusion amount was increased by 2023 legislation (H.B. 33, 135th Gen. Assem.), which amended Ohio Rev. Code § 5751.01(E) and § 5751.03 to provide the $3 million (2024) and $6 million (2025+) thresholds.
• The Department of Taxation applies these thresholds in public documentation—instructions, forms, registration requirements, and especially Information Release CAT 2023-01—and in the operative regulation, Ohio Admin. Code 5703-29-19(B)(2). Both confirm that $3 million applies for calendar year 2024 and $6 million for 2025 and later.
• It is common for public versions of the Revised Code to temporarily lag new legislative amendments. In such cases, enacted law as reflected in administrative regulations, and Department enforcement and guidance, controls—practitioners and taxpayers should follow the exclusion thresholds stated in Department guidance and the OAC, not the outdated online statute text.

Source support:

• Ohio Admin. Code 5703-29-19(B)(2)(b)–(c) states the $3 million and $6 million exclusion thresholds and implements the legislative amendments.
• Ohio Department of Taxation, Information Release CAT 2023-01 (Aug. 21, 2023) affirms both the statutory changes and their administrative enforcement.

Caution / review status:

• There is no legal risk to taxpayers who rely on exclusion thresholds as administratively enforced per Department guidance, even if the online version of the statute has not caught up. The combination of enacted legislation and controlling administrative rules governs compliance, unless/until a court rules otherwise. Practitioners should avoid using obsolete exclusion amounts from codes.ohio.gov where Department guidance and rule say otherwise.

Source: Ohio Admin. Code 5703-29-19(B)(2) Source: Ohio Department of Taxation, Information Release CAT 2023-01 (Aug. 21, 2023)

Ohio establishes "bright-line presence" in the state if a person meets any one of five tests during the calendar year: property in Ohio with an aggregate value of at least $50,000; payroll in Ohio of at least $50,000; taxable gross receipts of at least $500,000; at least 25% of total property, total payroll, or total gross receipts in Ohio; or is domiciled in Ohio. Meeting any single test creates substantial nexus for CAT purposes for the reporting period and the remaining portion of the calendar year.

Source: Ohio Rev. Code § 5751.01(I)

Beginning with tax periods on or after January 1, 2024, all Commercial Activity Tax taxpayers must file quarterly returns. Each quarterly return is due on or before the tenth day of the second month after the end of the calendar quarter—May 10 for Q1, August 10 for Q2, November 10 for Q3, and February 10 for Q4. This quarterly filing requirement applies to all CAT taxpayers regardless of the amount of their taxable gross receipts.

Source: Ohio Rev. Code § 5751.051

"Gross receipts" means the total amount realized by a person, without deduction for cost of goods sold or other expenses incurred, that contributes to the production of gross income of the person. The definition includes the fair market value of any property and services received, and any debt transferred or forgiven as consideration. Amounts from sales of goods, performance of services, rents, royalties, and leases are included.

Numerous items are excluded from gross receipts under Ohio Rev. Code § 5751.01(F)(2), including interest (other than from credit sales), dividends, capital gains from IRC § 1221 or § 1231 asset sales, receipts from transactions outside Ohio, sales and use taxes collected and remitted, and contributions to capital.

"Taxable gross receipts" means gross receipts sitused to Ohio under the sourcing rules in Ohio Rev. Code § 5751.033. Only taxable gross receipts sitused to Ohio are subject to the CAT.

Source: Ohio Rev. Code § 5751.01(F), (G)

Ohio applies a market-based sourcing regime for Commercial Activity Tax (CAT) on services, anchored in the detailed matrix provided in Ohio Admin. Code 5703-29-17 (effective June 20, 2019). This rule serves as the Department’s official list for how multiple categories of services—ranging from legal and accounting to programming and data processing—are sitused to Ohio for CAT purposes.

General rule and matrix structure: Paragraph (A) establishes the primary sourcing principle: gross receipts are sitused to Ohio in proportion to the purchaser's benefit received in the state versus everywhere, determined by the physical location of use or benefit. Where the benefit cannot be determined precisely, the taxpayer is required to use a "reasonable and consistently applied" method supported by existing business records (OAC 5703-29-17(A)(3)).

Enumerated categories: Paragraph (C) provides a matrix of 16 service categories. A few notable examples, with direct citation to the regulation:

• Accounting and bookkeeping services (C)(1): Sitused 100% to Ohio if the purchaser is located only in Ohio; otherwise, by apportionment based on where actual benefit is received, or by principal place of business.
• Legal services (C)(2): Same structure—100% to Ohio for Ohio-only purchasers, otherwise apportionment or principal place of business.
• Computer programming services (C)(8): Sitused 100% to Ohio if service benefits only Ohio; otherwise, apportioned based on number of users or benefit in Ohio, or to principal place of business.
• Data processing services (C)(9): Follow similar rules: 100% to Ohio if benefit only in state; otherwise, apportionment or principal place of business.
• Internet or web hosting (C)(10): Situsing follows purchaser benefit or principal place of business if multistate usage; taxpayer may select any reasonable method so long as it is consistently and uniformly applied.
• Management consulting (C)(4), Market research (C)(5), Advertising services (C)(7), Technical assistance (C)(6): All listed explicitly, each with situsing driven by purchaser benefit location, apportionment (if multistate), or principal place of business.

Modern service types and ‘missing’ categories: Ohio does not specifically enumerate Software-as-a-Service (SaaS), cloud computing, or financial services as matrix categories. Instead, taxpayers must determine the closest applicable listed category (for example, SaaS often aligns with data processing (C)(9), programming (C)(8), or internet hosting (C)(10)) or, if the service is not listed, apply the general rule in (A) and (A)(3): the proportion of purchaser benefit in Ohio, using a reasonable and consistently applied method.

Treatment of unlisted/new services: OAC 5703-29-17 explicitly states that if a service is not among the (C)(1)-(C)(16) categories, the sourcing falls under the general rule (A)(1)-(3). The burden is on the taxpayer to consistently treat similar services and retain adequate business records to support the allocation.

Authority: This OAC rule is updated and comprehensive as of June 2026—no separate Departmental “bulletin” is issued serving as a taxability matrix for modern SaaS or cloud categories. Practitioners must look to the official regulation and, where silent, analogize or default to the benefit location rule.

Source: Ohio Admin. Code 5703-29-17

Ohio’s Commercial Activity Tax (CAT) allows corporations with common ownership to elect either combined or consolidated group filing, but the elections have different eligibility, group composition, mechanics, and tax consequences.

Combined Election (O.R.C. § 5751.011):

• Eligibility: Required for all commonly owned entities (more than 50% ownership, direct or indirect) with substantial nexus in Ohio (each group member must independently meet nexus requirements under O.R.C. § 5751.01(I)).
• Intra-group receipts are NOT eliminated; each member reports its Ohio sitused gross receipts.
• Group exclusion: The $6 million annual exclusion (or lower amount for prior tax years) applies to the group as a whole, not per member (see O.R.C. § 5751.01(E); O.A.C. 5703-29-02(C)).
• The election is generally made by checking the “combined” box on the CAT-1 registration, and is binding for at least eight calendar quarters (O.R.C. § 5751.011(C)).

Consolidated Election (O.R.C. § 5751.011):

• Eligibility: Optional for entities with a common owner (more than 50% ownership) regardless of Ohio nexus. Includes ALL U.S. entities in the affiliated group (not just those with nexus; O.R.C. § 5751.011(B)(1)), unless specifically excluded by election.
• Intra-group receipts are eliminated; only third-party receipts are counted (O.A.C. 5703-29-02(D)).
• Group exclusion: The $6 million exclusion applies to the group as a whole.
• Election mechanics: The election must be made on Form CAT-CS or via the CAT-1, is binding for at least eight quarters, and applies to all group members unless excluded. Auto-renews unless revoked or modified.

Nexus implications:

• In a combined group, only entities with Ohio nexus are included; for consolidated groups, group filing can create nexus for Ohio-dormant affiliates solely by their inclusion in the affiliated group under O.R.C. § 5751.011(B)(3).

Summary of difference:

• Combined = only members with Ohio nexus, no intra-group elimination. Consolidated = all group members included, intra-group receipts eliminated.

Source: Ohio Rev. Code § 5751.011 | Ohio Admin. Code 5703-29-02

Not yet human confirmed.

The Ohio Commercial Activity Tax (CAT) requires all taxpayers to file returns on a quarterly basis, but the annual exclusion is applied methodically across these returns under Ohio Rev. Code § 5751.03.

Core mechanics:

• The full annual exclusion amount (e.g., $3,000,000 for 2024; increases may be legislated for 2025 and later—see current law) is claimed on the taxpayer's first quarter (Q1) return each calendar year.
• If a taxpayer’s taxable gross receipts in Q1 are less than the annual exclusion, the remainder of the exclusion is carried forward and applied to Q2, Q3, and, if necessary, Q4 returns until the exclusion is fully utilized.

Calculation method when Q1 receipts are below the annual exclusion:

1. Q1 return: If total taxable gross receipts for Q1 do not exceed the exclusion, no CAT is due, and the unused portion of the exclusion becomes available for carryover to Q2.
2. Q2 and subsequent quarters: For each subsequent quarter, add that quarter’s taxable gross receipts to the cumulative year-to-date total. The annual exclusion continues to shield gross receipts from CAT until taxpayer’s cumulative receipts for the year surpass the exclusion threshold. Once the threshold is exceeded, only receipts in excess of the exclusion for the calendar year are subject to the CAT for that quarter and any subsequent quarters.

Example:

• Suppose exclusion is $3,000,000 for 2024. A taxpayer has $600,000 in Q1, $700,000 in Q2, $900,000 in Q3, and $1,200,000 in Q4.
• No CAT is due for Q1, Q2, or Q3 because cumulative receipts ($2.2M) are less than the exclusion. In Q4, cumulative receipts reach $3,400,000 ($600K + $700K + $900K + $1.2M). For the Q4 return, only the $400,000 in receipts above the $3,000,000 exclusion is subject to CAT (taxable base = $400,000 × 0.26%).

Authority: This quarter-by-quarter exclusion application and carryover is mandated by Ohio Rev. Code § 5751.03(B), which directs that the entire exclusion be claimed on the first return and any unused exclusion amount may be carried forward and applied to subsequent quarters of that year. The statute does not provide for any "reset" or splitting of the exclusion among quarters—only a sequential drawdown until exhausted.

Source: Ohio Rev. Code § 5751.03

Not yet human confirmed.

Ohio's Commercial Activity Tax (CAT) requires registration and account maintenance at specific threshold crossings, with important distinctions for different taxpayer classifications.

When is CAT registration required? Any person or business with taxable Ohio gross receipts must register for CAT within 30 days after its gross receipts exceed the "exclusion amount" for the calendar year. For 2024, the exclusion amount is $3 million; for 2025 and later, it is $6 million. This registration must be made using the form prescribed by the Tax Commissioner (typically, Form CAT-1). Registrants must provide required identifying information and, for groups, include all group members. (See Ohio Rev. Code § 5751.04(A)-(C).)

Distinct rules for combined vs. consolidated-elected group taxpayers:

• A combined taxpayer group (required for commonly owned persons, each with substantial nexus) must register if the aggregate taxable gross receipts of the group exceed the exclusion amount.
• A consolidated-elected taxpayer group (optional election for commonly owned persons, may include entities without Ohio nexus) must register and, if receipts are expected to exceed the exclusion, is generally bound to the election for eight quarters. However, the group may cancel registration if, for a given calendar year, its aggregate taxable gross receipts will not exceed the exclusion, even if within the eight-quarter period. (See Ohio Admin. Code 5703-29-03(B)).

How is CAT registration accomplished? Registration is completed by filing Form CAT-1 through the Ohio Business Gateway (OBG) or by paper submission to the Department. The form requires, among other information, the date the taxpayer (or group) first exceeded the exclusion amount and became subject to CAT.

CAT account cancellation and reactivation (including mid-year threshold drops): A taxpayer (or qualifying group, including consolidated or a group with a "pre-income tax trust") may cancel its registration if its taxable gross receipts will not exceed the exclusion amount for that year (Ohio Admin. Code 5703-29-03(B); 5703-29-19(B)(2)). The cancellation is not permanent. If, after cancellation within that same year, the taxpayer’s or group’s receipts later exceed the exclusion amount, they must reactivate registration and resume CAT filing and payments for the remainder of the calendar year (5703-29-19(B)(2)).

• If a taxpayer falls below the threshold mid-year: The taxpayer may file a final return (CAT-12) and cancel the account once eligible, but must monitor gross receipts for the rest of the year. If receipts subsequently pass the exclusion, prompt reactivation is required by rule.

Exclusion threshold authority: For 2024, the exclusion is $3 million (see OAC 5703-29-19(B)(2)(b)); for 2025 and after, the exclusion rises to $6 million (OAC 5703-29-19(B)(2)(c)).

Source: Ohio Rev. Code § 5751.04 Source: Ohio Admin. Code 5703-29-03(B) Source: Ohio Admin. Code 5703-29-19(B)(2)

Human confirmed by Assistant SALT Editor as of 2026-06-15.

As of June 24, 2026, there is no additional guidance from the Ohio Department of Taxation, nor any reported administrative rulings, bulletins, or Ohio court cases issued after Jones Apparel Group/Nine West Holdings v. Harris, 2026-Ohio-74 (Ohio 2026), that clarify what documentation will or will not suffice to prove "ultimate destination" for Commercial Activity Tax (CAT) refund claims under Ohio Rev. Code § 5751.033(E) and § 5751.08(A).

Jones Apparel remains the leading authority: the Ohio Supreme Court in that decision confirmed that the taxpayer bears the burden to provide documentary evidence, and that documentation must allow the Department and courts to verify both (1) the factual occurrence of out-of-state ultimate receipt and (2) the specific gross receipts amounts eligible for refund. However, Jones Apparel declined to prescribe or endorse any categorical standards for sufficiency, only holding that shipping labels, generic summaries, or aggregate distribution spreadsheets alone—without detail tying shipments to receipts and proving out-of-state destination—were insufficient.

A second notable case, VVF Intervest, L.L.C. v. Harris, 2025-Ohio-5680 (Ohio 2025), affirmed that in determining whether receipts are sitused to Ohio, what matters is where the purchaser receives the property, not where the purchaser's customer does. VVF Intervest does not address documentation standards for refund claims but is cited here to prevent over-reading the situs rule as documentation guidance.

As of this date, the Ohio Department of Taxation has not published additional bulletins, administrative rules, or FAQs that set out further documentary standards for proving ultimate destination in the CAT refund context. Practitioners must therefore rely on the generally applicable burden—documentary evidence must be sufficient to reasonably permit the Tax Commissioner or a court to verify the fact and amount of out-of-state ultimate destination, and that documentation is evaluated on a fact-specific basis.

Practitioners should monitor for new administrative releases or additional judicial construing of R.C. § 5751.08(A). If the Department issues prescriptive standards or examples, this section should be updated to reflect that authority.

Source: Jones Apparel Group/Nine West Holdings v. Harris, 2026-Ohio-74 (Ohio 2026) Source: VVF Intervest, L.L.C. v. Harris, 2025-Ohio-5680 (Ohio 2025) Source: Ohio Rev. Code § 5751.08(A) Source: Ohio Rev. Code § 5751.033(E)

Prior to January 1, 2024, Ohio’s Commercial Activity Tax (CAT) imposed a tiered Annual Minimum Tax (AMT) on most taxpayers with more than $150,000 in Ohio-sourced taxable gross receipts. The AMT was applied on a calendar-year basis, regardless of whether the taxpayer’s gross receipts exceeded the base exclusion for CAT liability, and tiered as follows:

• $150 for taxpayers with prior-year taxable gross receipts of $1 million or less;
• $800 for receipts greater than $1 million and up to $2 million;
• $2,100 for receipts greater than $2 million and up to $4 million;
• $2,600 for receipts greater than $4 million.

Taxpayers with $150,000 or less in Ohio taxable gross receipts were not subject to CAT or the AMT. These amounts and the multi-tiered structure were set forth in former versions of Ohio Rev. Code § 5751.03 and outlined in official state reports and guidance.

The AMT was eliminated effective for tax periods beginning on or after January 1, 2024. After that date, CAT liability is solely based on the 0.26% rate applied to taxable gross receipts above the exclusion amount (which itself was increased). This statutory change is confirmed both in the 2024 Ohio Legislative Service Commission Tax Annual Report and in the Department’s official Information Release CAT 2023-01. There is no longer any flat or minimum CAT amount due for any taxpayer as of 2024.

Source: Ohio Department of Taxation, Information Release CAT 2023-01 (Aug. 21, 2023) Source: Ohio Legislative Service Commission, 2024 Tax Annual Report, Table 3

For taxpayers whose taxable gross receipts exceed the annual Commercial Activity Tax (CAT) exclusion amount ($6 million for 2025 and later), Ohio law does not eliminate or reduce the exclusion. Instead, the exclusion operates as a fixed dollar amount that is subtracted from all taxpayers’ annual taxable gross receipts—even for those whose total receipts exceed the threshold.

Mechanics under Ohio Rev. Code § 5751.03:

• Every taxpayer—regardless of the amount of taxable gross receipts—is allowed to subtract the statutory exclusion from the cumulative annual total when calculating the CAT base. For 2025 and thereafter, the exclusion amount is $6,000,000 per calendar year (pending any future amendments).
• Tax is imposed at the CAT rate (0.26%) only on receipts above the exclusion. There is no provision that eliminates or prorates the exclusion for taxpayers with high-volume receipts. The exclusion does not phase out or become unavailable at any higher tier.
• The exclusion is fully available to each taxpayer every year, and only receipts in excess of the exclusion are subject to CAT. For quarterly filers (the default as of 2024), the entire exclusion is applied to first quarter receipts, with any unused portion carried forward to subsequent quarters until used up, as covered in detail in the section on quarterly calculation mechanics.

Example:

• If a taxpayer has $14,000,000 of taxable gross receipts for 2025, the $6,000,000 exclusion is subtracted, and only $8,000,000 is subject to the 0.26% CAT rate, resulting in $20,800 tax due.

Authority and legislative context: R.C. § 5751.03 establishes both the exclusion mechanism and the fixed rate, and no section of the Code or current Department regulation or administrative guidance alters the exclusion or eliminates it for high-receipt filers. The exclusion is not a mere filing threshold; it is an allowed deduction from the annual taxable gross receipts for every taxpayer subject to CAT, regardless of volume.

Source: Ohio Rev. Code § 5751.03

Not yet human confirmed.

Ohio law treats the Commercial Activity Tax (CAT) exclusion amount as applying at the taxpayer group level—not per entity—when entities file as either a consolidated-elected taxpayer group or a combined taxpayer group.

Consolidated-elected taxpayer groups: Under R.C. 5751.011 and O.A.C. Rule 5703-29-04(B), a consolidated-elected taxpayer group is treated as a single taxpayer. The group reports only third-party gross receipts (intermember receipts are eliminated). The annual exclusion amount (for example, $3 million for 2024; $6 million for 2025 and beyond) applies to the group as a whole, not to each member individually. If the consolidated group’s aggregate taxable gross receipts after eliminating intermember receipts do not exceed the exclusion amount, the group is not required to register or pay the CAT. Members cannot each claim the exclusion separately—only the group receives the benefit of a single exclusion amount.

Source: Ohio Admin. Code 5703-29-04(B)

Combined taxpayer groups: Under R.C. 5751.012 and O.A.C. Rule 5703-29-04(C), a combined taxpayer group is also treated as a single taxpayer for CAT purposes, but unlike consolidated groups, intermember receipts are included. The annual exclusion is applied at the group level to the aggregate taxable gross receipts of all group members. No individual member is permitted to claim a separate exclusion.

Source: Ohio Admin. Code 5703-29-04(C)

If a group member separates (O.A.C. Rule 5703-29-08): If the Tax Commissioner approves a request for a combined or consolidated group member to file separately, that member cannot claim a separate exclusion amount for itself. The group exclusion is not split, shared, or transferred to individual members who leave a group.

Source: Ohio Admin. Code 5703-29-08(B)

Summary: Both consolidated-elected taxpayer groups and combined taxpayer groups are entitled to a single, group-level CAT exclusion amount, regardless of the number of members or group structure. There is no authority for multiple exclusions within a group or for division of the exclusion among members.

Not yet human confirmed.

Ohio CAT (Commercial Activity Tax) registration and account status depend on whether a taxpayer’s or group’s taxable gross receipts cross above or below the statutory exclusion threshold ($3 million for 2024, $6 million for 2025 and after). The law and regulations set out these key requirements:

1. If receipts fall below the exclusion amount:

• If, at any point during a calendar year, a taxpayer or a consolidated-elected group reasonably expects taxable gross receipts for the year will NOT exceed the exclusion threshold, they may cancel CAT registration and file a final return (using Form CAT-12), under Ohio Admin. Code 5703-29-19(B)(2).
• Once cancelled, the taxpayer must monitor ongoing receipts for the rest of the calendar year. If, after cancelling, receipts unexpectedly rise above the exclusion during that year, the taxpayer or group is required to reactivate its account and resume CAT registration, filing, and payments for the remainder of the year (Ohio Admin. Code 5703-29-03(B); 5703-29-19(B)(2)).

2. If receipts rise above the exclusion after cancellation:

• If the taxpayer was previously cancelled in that calendar year and then exceeds the threshold, they must promptly re-register and resume filings for that year. There is no waiting or gap period allowed; reactivation is required as soon as the exclusion is surpassed.
• The statute and regulations impose no minimum gap or waiting period before resuming registration. Reactivation is immediate upon exceeding the threshold again within the year (OAC 5703-29-19(B)(2)).

3. Combined/consolidated group nuances:

• For consolidated-elected groups, cancellation is allowed even within a mandatory eight-quarter election period if the group expects to stay under the threshold for the year (OAC 5703-29-03(B)). For combined groups, the group as a whole must remain above the threshold to require continued registration/filing.

Summary:

• A CAT account may be cancelled for a year if receipts are not expected to cross the threshold, but must be reactivated at any point later in the year if receipts do cross it. No formal waiting period applies to reactivation after cancellation; monitoring and prompt compliance are the taxpayer’s responsibility.

Source: Ohio Admin. Code 5703-29-03(B) Source: Ohio Admin. Code 5703-29-19(B)(2)

Separate Filing Default By default, each entity with substantial nexus in Ohio and receipts above the CAT exclusion amount is required to register and file a separate Commercial Activity Tax (CAT) return, regardless of common ownership or affiliation, unless it qualifies as (and is required to be) a combined group or elects consolidated group filing. Separate filing applies unless the statutory definitions in Ohio Rev. Code § 5751.011(A) or (B) are met for group filing.

Combined Group Filing (O.R.C. § 5751.011(A)) Combined group filing is required when two or more entities have more than 50% common ownership (directly or indirectly by one person or entity) and each has "substantial nexus" in Ohio (as defined in O.R.C. § 5751.01(I)), and the entities are not eligible or do not elect to file a consolidated return. In this case:

• All group members with substantial nexus in Ohio are included automatically (no election required).
• Intra-group (intercompany) receipts are not eliminated; gross receipts are aggregated for CAT calculation.
• The group is treated as a single taxpayer for the annual exclusion, which is applied at the group level (see O.A.C. 5703-29-04(C)).
• This combined return is binding for at least eight calendar quarters. (O.A.C. 5703-29-02(C))

Consolidated Group Filing Election (O.R.C. § 5751.011(B)) Affiliated groups under common ownership (more than 50% direct or indirect control) may elect to file as a consolidated group:

• This election is optional and must be made by the designated agent via the CAT-1 registration or Form CAT-CS.
• The consolidated group may include all U.S. affiliates under common control, even those without Ohio nexus (O.R.C. § 5751.011(B)(1)).
• Intra-group receipts are eliminated—only third-party receipts are included in the CAT base (O.A.C. 5703-29-02(D)).
• The consolidated group receives a single exclusion amount (see O.A.C. 5703-29-04(B)).
• The election is binding for at least eight quarters and continues unless revoked or modified.
• Inclusion in a consolidated group can create nexus for included affiliates (O.R.C. § 5751.011(B)(3)).

Anti-Avoidance & Special Provisions

• If necessary to prevent tax avoidance, the Tax Commissioner may require combination of entities, adjust a group’s filing method, or deny/modify group composition (O.R.C. § 5751.011(E); O.A.C. 5703-29-02(G)).
• A group member may request to file separately under O.A.C. 5703-29-08(B), but permission is discretionary with the Commissioner and such members do not receive a separate exclusion.

Summary: Ohio CAT’s default is separate filing, but group filing—combined (mandatory for qualifying groups) and consolidated (elective)—is central to treatment of commonly owned entities. Statutory criteria and regulatory mechanics should be reviewed carefully to ensure proper group composition and exclusion application. For a full operational breakdown, see Consolidated and combined group filing elections for Ohio CAT.

Source: Ohio Rev. Code § 5751.011 | Ohio Admin. Code 5703-29-02 | Ohio Admin. Code 5703-29-04 | Ohio Admin. Code 5703-29-08

Not yet human confirmed.

Direct answer: There is currently no annual minimum tax or flat fee due under the Ohio Commercial Activity Tax (CAT) regime for any period beginning on or after January 1, 2024. Before that date, Ohio law imposed a tiered Annual Minimum Tax (AMT) on CAT filers based on their prior-year Ohio taxable gross receipts. This AMT has been fully eliminated by legislation enacted in 2023.

Why: Prior to tax periods beginning January 1, 2024, most CAT taxpayers (those exceeding the exclusion/registration threshold) were required to pay the AMT annually. The AMT was part of the standard calculation and applied regardless of the taxpayer's exact receipts above the filing threshold. The tiers were:

• $150 for filers with $1 million or less in prior-year Ohio taxable gross receipts;
• $800 for filers with greater than $1 million and up to $2 million;
• $2,100 for filers with greater than $2 million and up to $4 million;
• $2,600 for filers with over $4 million.

Taxpayers with $150,000 or less in Ohio taxable gross receipts incurred no CAT or AMT liability. As part of 2023 tax reform (HB 33), the AMT structure was repealed effective January 1, 2024—from that date forward, all CAT liability is determined exclusively as 0.26% of receipts above the exclusion amount ($3 million for 2024, $6 million for 2025 and later). There is no longer any flat or minimum annual charge under the CAT, and exclusion thresholds now function solely as a filing and liability floor.

Source support:

• The elimination of the AMT is confirmed by the Ohio Legislative Service Commission’s 2024 Tax Annual Report, Table 3, explicitly showing no AMT due after January 1, 2024.
• The Ohio Department of Taxation’s Information Release CAT 2023-01 also details both the repeal of the AMT and the phased increase in the exclusion amount.

Caution / review status: Not yet human confirmed.

Source: Ohio Department of Taxation, Information Release CAT 2023-01 (Aug. 21, 2023) Source: Ohio Legislative Service Commission, 2024 Tax Annual Report, Table 3

Ohio’s Commercial Activity Tax (CAT) provides a fixed annual exclusion amount—$3,000,000 for calendar year 2024 and $6,000,000 for calendar year 2025 and later—which is applied across quarterly filings.

Application and carryforward rules:

• Each tax year, the entire annual exclusion is applied on the first calendar quarter return the taxpayer files.
• If taxable gross receipts for the first quarter do not exceed the exclusion, the unused portion of the exclusion is carried forward and applied to subsequent quarters of the same calendar year.
• In each following quarter, cumulative year-to-date receipts are measured against the annual exclusion; only receipts in excess of the annual exclusion for the year are subject to the 0.26% CAT rate.
• The exclusion may not be split up by the taxpayer’s choosing or allocated unevenly among quarters—it is always first applied to Q1, then carried to Q2, Q3, and Q4 as needed until exhausted.

Transition and year-end rules:

• There are no statutory or regulatory provisions allowing unused exclusion to be carried from one calendar year into the next. The exclusion is strictly available for that year only.
• All taxpayers—regardless of filing history or reporting method—transitioned to quarterly filing effective for tax periods beginning on or after January 1, 2024. The administrative carryforward mechanics operate as described above for all quarterly filers.

Example scenario: Suppose a taxpayer in 2024 has quarterly taxable gross receipts of $400,000, $800,000, $1,200,000, and $1,500,000. The sum ($3,900,000) exceeds the $3 million exclusion; only $900,000 is subject to CAT for the year. The exclusion is used up once cumulative year-to-date receipts cross $3 million, regardless of which quarter that occurs.

Authority:

• The core rules are established by Ohio Rev. Code § 5751.03(B).
• The Department’s Information Release CAT 2023-01 confirms both the exclusion amounts, carryforward mechanics, and the shift to quarterly filing without exclusion rollovers between years.

Source: Ohio Rev. Code § 5751.03 Source: Ohio Department of Taxation, Information Release CAT 2023-01 (Aug. 21, 2023)

Not yet human confirmed.

Ohio's Commercial Activity Tax (CAT) includes several narrowly tailored industry- or activity-specific exclusions, the two most prominent being for public utilities and suppliers to qualified distribution centers. However, the legal landscape for distribution center exclusions has changed materially as of 2026.

1. Public Utility Exclusion Ohio Revised Code § 5751.01(E)(2) continues to exclude from CAT any public utility that pays the Public Utility Excise Tax under §§ 5727.24 or 5727.30, with respect to receipts subject to that excise tax. Receipts from activities not taxed as a public utility remain subject to CAT.

2. Distribution Center Exclusion — REPEALED EFFECTIVE JANUARY 1, 2026 The longstanding exemption for “qualified distribution center receipts,” implemented through Ohio Admin. Code 5703-29-16 and referenced in § 5751.01(F)(2)(z) and § 5751.40, has been REPEALED effective January 1, 2026, by 2024 legislation (Am. H.B. 33, Sec. 803.250). As of that date, receipts associated with shipments to and from certified distribution centers—including the pro-rata exclusion method for property delivered outside Ohio—are no longer excludable from CAT. The prior rules and certification practices remain in effect only through tax year 2025.

Beyond Public Utilities and Distribution Centers Other industry-specific exclusions remain limited. CAT statutes and regulations do not provide dedicated exclusions for health care providers, government contractors, or other industries; these entities are generally subject to CAT under the standard definitions of gross receipts and situsing.

Effective Dates and Update Note

• The public utility exclusion is unchanged and current as of July 2026.
• The distribution center exclusion is available only for tax years ending before January 1, 2026; it is fully repealed for tax periods on or after that date.

Source: Ohio Rev. Code § 5751.01(E)(2) Source: Ohio Admin. Code 5703-29-16 Source: 2024 Ohio H.B. 33, Sec. 803.250 (repeal of distribution center exclusion, effective Jan. 1, 2026)