Ohio Administrative Code
Title 5703 - Department of Taxation
Chapter 5703-29 - Commercial Activity Tax
Section 5703-29-06 - Transfers of property into the state

Universal Citation: OH Admin Code 5703-29-06

Current through all regulations passed and filed through September 16, 2024

(A) This rule provides the circumstances when a taxpayer/purchaser will be required to include the value of property that is transferred into this state within one year from the receipt of the property outside of this state pursuant to section 5751.013 of the Revised Code.

(B)

(1) Subject to paragraph (B)(2) of this rule, the value of property brought into this state within one year after it is received outside this state does not have to be included as a taxable gross receipt by the purchaser. However, upon audit, the tax commissioner may require the value of such property to be included as a taxable gross receipt if the commissioner finds that such transfer within one year was intended in whole or in part to avoid the commercial activity tax.

(2) The commissioner may identify and post on the department of taxation's website one or more descriptions of transfers that the commissioner deems are intended to avoid the commercial activity tax. If a transfer is one so described, the taxpayer must include the value of the property transferred as a gross receipt for that tax period in which the transfer is made. The property shall be valued at its fair market value at the time of transfer. The taxpayer may file a refund claim if the taxpayer believes that it can show that the acquisition and subsequent transfer was not intended in whole or in part to avoid the commercial activity tax.

(C) No penalty shall be imposed by the commissioner under paragraph (B)(1) of this rule. A penalty may be imposed by the commissioner under paragraph (B)(2) of this rule.

Effective: 12/25/2016
Five Year Review (FYR) Dates: 10/07/2016 and 12/25/2021
Promulgated Under: 119.03
Statutory Authority: 5703.05
Rule Amplifies: 5751.013
Prior Effective Dates: 12/27/2005

Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.