Reed Smith’s State Tax Group has significant experience handling Ohio state tax matters. We are licensed to practice in Ohio, and our experience includes assessment and refund matters through the administrative level, at the Board of Tax Appeals (where an Ohio-licensed attorney is required), and at the Ohio Supreme Court. In particular, our team has handled appeals and advised clients on the Commercial Activity Tax, Sales and Use Tax, and the Financial Institutions Tax.
Here is a brief summary of a few of the Ohio state tax issues and opportunities we have recently worked on for our clients:
Represented multiple financial institutions at the Ohio Supreme Court in cases involving the applicability of the Financial Institutions Tax credit for regulatory fees to banks not chartered in Ohio. Central Ohio Bancorp v. McClain, Case No. 2020-0855; Cincinnati Federal Savings & Loan v. McClain, Case No. 2020-0856.
Represented multiple retailers in appeals involving the interpretation of the ultimate destination rule for sales of tangible personal property. See, e.g., Nine West Holdings v. McClain, BTA Case No. 2020-54.
Resolved an appeal at the Board of Tax Appeals for an asset manager in a dispute involving the sourcing of mutual fund receipts for CAT purposes. American Century Investment Services, Inc. v. McClain, BTA Case No. 2018-988.
Successfully resolved a sales and use tax appeal at the Board of Tax Appeals for a security company by arguing that transactions at issue qualified as construction contracts. Johnson Controls Security Solutions v. McClain, BTA Case No. 2018-330.
Obtained large refunds for several food products companies and other wholesalers by successfully arguing that certain discounts and rebates offered to retailers qualify for exclusions from CAT.
Represented taxpayers in various industries in disputes regarding the CAT exclusion for amounts received as an agent on behalf of another. See, e.g., Aramark Corporation v. McClain, BTA Case No. 2019-2975.
Represented a health care services provider in an appeal involving the proper sourcing of health care services performed in multiple states. Total Renal Care, Inc. v. McClain, Case No. 2019-849.
Represented several large pharmaceutical companies in appeals involving the taxability of chargebacks and other rebates for CAT purposes.
Advised a technology company in a dispute involving the proper sourcing of services provided to customers located in multiple jurisdictions, and the effect of book/tax adjustments in calculating CAT gross receipts.
Substantially reduced a sales and use tax assessment for a national consumer goods company at the Board of Tax Appeals by expanding the manufacturing exemption and challenging Ohio’s assertion that certain purchases of services were subject to tax. Morton International Inc. v. Testa, BTA Case No. 2013-6125.
Represented a national information technology company at the Board of Tax Appeals in challenging a sales and use tax assessment regarding the scope of the resale exemption, whether certain purchases qualified as “business fixtures,” and Department assertions that certain purchases of services were subject to tax. ACS State & Local Solutions, Inc. v. Testa, BTA Case No. 2012-587.
Advised a consumer goods manufacturer on the applicability of tax to repair services and the extent of the manufacturing exemption for sales and use tax.
Represented multiple health care goods and services providers at the Board of Tax Appeals in an issue involving federal preemption of the CAT on federal health benefit plans. See, e.g., Walgreen Co. v. Testa, BTA Case No. 2014-1591.
Represented a national food processing company as amicus before the Ohio Supreme Court in a case involving the constitutionality of the CAT as applied to the sale or purchase of food. Ohio Grocers Association, et al. v. Levin, Case No. 2008-2018.
Ohio State Tax Intelligence
As part of our full service for clients with Ohio tax issues, we maintain a database of published and unpublished Department of Taxation rulings and pending cases involving Commercial Activities Tax, Sales and Use Tax, and the Financial Institutions Tax. We are also a member of the Ohio Chamber of Commerce Tax Committee, and a frequent member of the planning committee for the Ohio Tax Conference, where several of our attorneys have spoken on various topics.
