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Municipal Tax Issues

Municipal tax reform brings simpler compliance

OSCPA’s top legislative priority for years has been achieving meaningful reforms to Ohio’s municipal tax structure—the most complicated in the nation. In 2017, OSCPA worked with Ohio leaders and the Municipal Tax Reform Coalition to pass additional, pro-business reforms that reduce costs and red tape, making it easier for taxpayers to comply with filing requirements.

Ohio Tax Reform
Business taxpayers who file net profits returns in more than one municipality can opt in to file one central return through the Ohio Business Gateway and make estimated quarterly payments.

Centralized Filing FAQ

When is registration open?Open

Effective for taxable years beginning on or after Jan. 1, 2018, taxpayers subject to a municipal net profit tax may elect to file and pay on a centralized basis at http://www.tax.ohio.gov/MunicipalTax.aspx or by filing Form MNP R. Registration has been available with ODT since October 2017.
What is the deadline to register?Open or Close

The taxpayer must register with ODT by the fifteenth day of the fourth month of the taxpayer’s taxable year (April15 for calendar year filers).
Where do filings and payments take place?Open or Close

An electing taxpayer must file any tax return, estimated taxes, or extension through the Ohio Business Gateway (OBG). Payments must also be made through the OBG. The ODT is also exploring the option of allowing taxpayers to file and pay through the Modernized e-File (MeF) program.
Who needs to be notified other than ODT?Open or Close

Taxpayers making the election must also notify each municipal corporation in which the taxpayer conducted business during the previous taxable year by sending Form MNP MN to each municipality. There are two versions of Form MNP MN, one for tax preparers and one for taxpayers. A new business making an election does not have to notify any municipalities of its election.
If a business elects to participate, how long is the commitment?Open or Close

Once the election has been made by the electing taxpayer, it automatically renews year to year unless the taxpayer terminates the election by filing a form with the tax commissioner by the first day of the third month of any taxable year.
Have additional questions?Open or Close

Please visit http://www.tax.ohio.gov/MunicipalTax/FAQ.aspx

Latest news on municipal income tax reform:

Jun 21, 2024

DOD releases Opportunity Zones Tax Credit application

The Ohio Department of Development (DOD) recently announced the release of the program application for the July 2024 round of the Ohio Opportunity Zones Tax Credit.
May 26, 2023

Ohio House passes measure limiting notices & late filing penalties

A number of OSCPA legislative priorities continue to move through the Ohio legislature, including House Bill 105—a measure that would limit notices and late filing penalties under R.C. 718.27.
Jul 29, 2022

OSCPA to file amicus brief for 2020 municipal income tax refunds

OSCPA plans to file an amicus brief on Aug. 15 to support taxpayers in their efforts to obtain 2020 refunds based on the Society's position that taxing persons who neither work nor live in a jurisdiction is unconstitutional.
Jul 31, 2020

Optional centralized collection – a look back

Getting optional centralized collection of municipal net profits taxes enacted in Ohio’s biennial budget was a difficult task, but one that will improve the state’s business climate.
Jul 31, 2020

Ohio tax update: Did your clients actually get that state refund?

An OSCPA member recently contacted us with a cautionary tale about a client who last year was required to take the Ohio Department of Taxation’s ID Confirmation Quiz.