COLUMBUS, Ohio -- , which is assessed on almost all companies with gross receipts of over $150,000 in the state, regardless of whether they are located in Ohio.
“The commissioner is attempting to once again ignore the plain meaning of our statutes and apply the Ohio CAT in a way that is not only unfounded in statute but is also unconstitutional and frankly unworkable,” Hayden said., also arguing the tax is unconstitutional. But if the court decides to uphold it, the justices should nix the penalties, the chamber said.
The legislature enacted the commercial activity tax in 2005 as part of a business tax overhaul because, at the time, more prominent and savvier corporations structured their affairs to evade taxation, which shifted the burden to smaller companies. So the commercial activity tax, at just 0.26%, imposes a small tax on almost all businesses, except financial institutions, insurance companies and some public utilities, which pay other Ohio taxes, Rockenbach said.
Rockenbach replied that since NASCAR didn’t file any tax returns, the Ohio Tax Commissioner’s Office can use any information in its possession to determine a value. The commissioner looked at cable usage from Nielsen Ratings in 2008 and 2009.