The Ohio Department of Taxation changes its attitude on Commercial Activity Tax refunds reversing anti-business practices


Ohio Tax Commissioner Joe Testa and Governor John Kasich announced this week that the Ohio Department of Taxation is changing the policy of notifying businesses of tax overpayments.

According to the Department of Taxation, “In the past ODT didn’t notify businesses of overpayments—even if the Department was aware of it—but instead made businesses discover the error themselves and then ask for their money back. If businesses failed to discover the error within a certain amount of time then they forever lost the right to reclaim it.”

Governor Kasich is quoted in the 12/18/12 Department press release, “If government knows a job creator paid too much in taxes then it should do the right thing and give the money back, because government works for us, not the other way around. It’s just simple fairness and I can’t believe this wasn’t being done already. It’s yet another example of a wrong-headed thing that state government was doing that we discovered and are fixing. I just can’t figure out why no one was trying to fix these kinds of problems before.”

Under the new policy the State of Ohio plans to return over $13 Million in Commercial Activity Tax overpayments to 3,500 businesses.  The Department and Governor have pledged to analyze other taxes in the coming months and ensure that all taxpayers who unknowingly paid too much tax will be contacted by the State.  The Department will notify taxpayers who appear to have a refund due and work with those taxpayers to raise visibility and understanding the State’s tax refund procedures.

Governor Kasich has made a jobs-friendly environment a priority of his administration and this step will certainly communicate that attitude to the Ohio business community.

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