Donate to Ohio CPA PAC Tax Resources OSCPA Key Contact Program Municipal Tax Issues State of Ohio Tax Reform Take Action

Municipal Tax Issues

Municipal tax reform brings simpler compliance

OSCPA’s top legislative priority for years has been achieving meaningful reforms to Ohio’s municipal tax structure—the most complicated in the nation. In 2017, OSCPA worked with Ohio leaders and the Municipal Tax Reform Coalition to pass additional, pro-business reforms that reduce costs and red tape, making it easier for taxpayers to comply with filing requirements.

Ohio Tax Reform
Business taxpayers who file net profits returns in more than one municipality can opt in to file one central return through the Ohio Business Gateway and make estimated quarterly payments.

Centralized Filing FAQ

When is registration open?Open

Effective for taxable years beginning on or after Jan. 1, 2018, taxpayers subject to a municipal net profit tax may elect to file and pay on a centralized basis at http://www.tax.ohio.gov/MunicipalTax.aspx or by filing Form MNP R. Registration has been available with ODT since October 2017.
What is the deadline to register?Open or Close

The taxpayer must register with ODT and provide notification to each municipal corporation by the first day of the third month of the taxpayer’s taxable year (March 1 for calendar year filers).
Where do filings and payments take place?Open or Close

An electing taxpayer must file any tax return, estimated taxes, or extension through the Ohio Business Gateway (OBG). Payments must also be made through the OBG. The ODT is also exploring the option of allowing taxpayers to file and pay through the Modernized e-File (MeF) program.
Who needs to be notified other than ODT?Open or Close

Taxpayers making the election must also notify each municipal corporation in which the taxpayer conducted business during the previous taxable year by sending Form MNP MN to each municipality. There are two versions of Form MNP MN, one for tax preparers and one for taxpayers. A new business making an election does not have to notify any municipalities of its election.
If a business elects to participate, how long is the commitment?Open or Close

Once the election has been made by the electing taxpayer, it automatically renews year to year unless the taxpayer terminates the election by filing a form with the tax commissioner by the first day of the third month of any taxable year.
Have additional questions?Open or Close

Please visit http://www.tax.ohio.gov/MunicipalTax/FAQ.aspx

Latest news on municipal income tax reform:

Sep 30, 2021

Society supports muni tax cleanup bill

OSCPA this week supported legislation that will update the centralized collection process for levying municipal income taxes based on a business’s net profits.
Jun 03, 2021

Budget plan addresses muni tax rules, employment services exclusion

The latest draft of Ohio’s budget bill contains several OSCPA-advocated items that will improve the state’s business climate, including revised pandemic-related municipal income tax withholding rules and eliminating the sales and use tax on employment services.
May 13, 2021

OSCPA asks for COVID-related muni tax withholding clarifications

The Ohio Society of CPAs has both the U.S. and Ohio Constitution on its side, as it continues to make the statement at the Statehouse that employees should not have to pay income tax to cities where they neither live, nor work.
Jul 31, 2020

Optional centralized collection – a look back

Getting optional centralized collection of municipal net profits taxes enacted in Ohio’s biennial budget was a difficult task, but one that will improve the state’s business climate.
Jun 12, 2019

Municipal net profit tax estimated payment deadline is June 17

The Ohio Department of Taxation has issued a reminder for practitioners and calendar year taxpayers.