Attention Ohio Business Owners: Important Changes to Commercial Activity Tax

On Jan. 1, 2024, the following changes took effect for the Commercial Activity Tax (CAT).

• The CAT annual minimum tax is eliminated.

• The exclusion amount is increased from $1 million to $3 million.

• Annual filing is eliminated after the 2023 annual return.

• Taxpayers with taxable gross receipts of $3 million or less per calendar year will no longer be subject to the CAT in 2024.

If you anticipate having $3 million or less in taxable gross receipts in tax year 2024, we recommend that you cancel your CAT account by checking the cancel account checkbox on the 4th quarter 2023 return, due February 12, 2024.

Please note – all registered CAT taxpayers with active accounts are required to file returns, even if they do not meet the taxable gross receipts threshold.  Therefore, if you do not cancel your CAT account, you will need to continue filing CAT returns each quarter.

If you have already cancelled your CAT account, please disregard this email. 

For assistance, please contact the Business Tax Division at (888) 722-8829 or (800) 750-0750 for persons who use text telephones (TTYs) or adaptive telephone equipment.