Posted by John Healy, CEO of Dydacomp
In the last few weeks I have made several posts concerning Colorado and Oklahoma’s attempts to hold their citizens accountable for sales tax on goods purchased and shipped from out of state companies. These states ask you to supply the information to both them and the consumer annually. Luckily, Mail Order Manager and Dydacomp can help you with this administrative nightmare.
Unfortunately, there is one issue we cannot help you on. According to the Direct Marketing Association, The Ohio Commercial Activity Tax (CAT) imposes an aggressive nexus standard known as a “bright line” nexus standard. Under this standard a taxpayer is deemed to have nexus if at any time during the year it has any of the following:
- $500,000 of taxable gross receipts
- $50,000 worth of Ohio property
- $50,000 of Ohio payroll or other compensation for services in the state
- At least 25 percent of its total property, payroll, or gross receipts in Ohio or is domiciled in Ohio
This is NOT a sales tax. This is a direct TAX on your business.
I strongly suggest that you attend a free webinar on this subject put on by the Direct Marketing Association, Wednesday August 25th, 3 – 4 PM EST. Click on the link below or call to register in advance.
Online: Register Now
Mail: Printable Form
DMA Customer Service
1120 Avenue of the Americas
New York, NY 10036-6700