Any one who follows the news in Ohio, and others interested in tax matters of the nation, will know something of the new Commercial Activity Tax (CAT) regime set in motion in Ohio in June 2005. This is an effort to encourage more business growth in Ohio by lowering a number of taxes (franchise, property, income) for a signficant portion of the taxpayers in Ohio, and replacing these with a single tax based on the gross receipts of the business.
Ohio's legislature passed the legislation without precisely defining some important terms. There are several subsequent announcements which have dealt with some of these matters. No doubt, there will be more to come. No one really knows the full impact or the significance of the changes that were implemented. I will definitely return to this topic as it develops.
Comments