Cities Lose Prelim. Injunction Request. Register for Muni. Net Profit Tax Centralized Collection?
Today, February 21, 2018, Franklin County Court of Common Pleas Judge David E. Cain denied the request for a preliminary injunction from the municipal group that is comprised of more than 160 municipalities. The language of the decision has yet to be published. Zaino Hall & Farrin LLC will provide a more detailed analysis once the language is available.
This decision puts to rest, for now, an effort by municipalities to forestall the state’s centralized collection of tax on behalf of municipalities, as well as keeps in place the elimination of the anti-competitive municipal throwback rule for years beginning in 2018. A hearing on a permanent injunction is scheduled for December 2018.
Registration is Open
As a reminder, a taxpayer electing into the centralized collection and administration must do so by the first day of the third month after the beginning of the taxpayer's taxable year (March 1 for calendar year taxpayers). The ability to elect to file on a centralized basis is available at http://www.tax.ohio.gov/MunicipalTax.aspx or by filing Form MNP R. A taxpayer electing into the statewide system must also notify each municipal corporation in which the taxpayer conducted business during the previous taxable year. Notification of the election should be made by filing Form MNP MN with each municipality. New businesses that elect into the centralized collection system are the only taxpayers that are not required to notify any municipal corporations of its election.