State of Ohio Changes Sales and Use Tax Sourcing Rules
Edward C. Lowe, MAFIS, CPA
Senior Manager, Tax Department
lowe@hwco.com
Effective 4/18/2008, the State of Ohio requires all vendors to use origin-based sourcing beginning January 1, 2010, for all intrastate sales, but eliminates origin-based sourcing for sales that are not intrastate, regardless of the level of delivery sales. Vendors who have already implemented destination-based sourcing and who must go back to origin-based sourcing for intrastate sales may be entitled to a one-time compensatory payment. Vendors that have already adopted destination-based sourcing are permitted to switch back to origin-based sourcing for intrastate sales before 2010. A vendor switching back before 2010 must do so on the first day of a month.
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If you have any questions on how this change could affect you, please feel free to contact Edward Lowe or your Howard, Wershbale & Co. tax professional. Visit our Tax Planning Services page for more information.
About Edward Lowe: Serving clientele in the real estate market for over 30 years, Edward specializes in tax and financial reporting aspects of real estate and tax planning for closely-held companies and their owners. Tax experience includes areas such as tax deferred like-kind exchanges, rehabilitation tax credits for historic buildings, charitable contributions of real estate and cash flow projections for proposed development.