Ohio's Commercial Activity Tax under R.C. 5751 ¹ was reformed substantially by HB 33 (2023) ². The annual exclusion rose from $1 million to $3 million for tax year 2024 and to $6 million for 2025 and beyond. Approximately 90% of CAT filers are now fully exempt, the largest exclusion-driven taxpayer reduction in any state gross-receipts tax since the modern era of state taxation began. The remaining filers, businesses above $6M of Ohio gross receipts, face a 0.26% rate on receipts above the exclusion. For multistate operators with Ohio nexus, the threshold change is the biggest CAT story since the tax was enacted in 2005.
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