OHIO USE TAX AMNESTY PROGRAM

The use tax Voluntary Disclosure Agreement program, about which we recently wrote you, has been suspended in favor of an even more favorable Ohio Use tax Amnesty Program, included in the Ohio biennial budget bill. This program will operate October 1, 2011 through May 1, 2013.

Consumers not registered with the Ohio Department of Taxation (ODT) for consumer use tax as of June 1, 2011 who want to participate in the amnesty program must pay the use tax due for periods from January 1, 2009 through May 1, 2011. No tax, penalty or interest prior to January 1, 2009 will be assessed. Penalty and interest will be fully abated for the tax paid under this program.

The same is true for consumers that were registered as of June 1, 2011, EXCEPT they are responsible for interest and possible penalty on delinquent tax paid under this program.

Because the statute of limitations has been shortened from the previously existent seven year period, consumers who do not participate in this program, will be subject to audit by the ODT, and may be assessed tax, interest, and penalties only for tax due on or after January 1, 2008.

A participant must pay the tax due between October 1, 2011 and May 1, 2013, although upon submitting an application to the ODT, may be allowed a plan to pay over a period of up to seven years.

The ODT has been charged with the responsibility of issuing guidance and forms for participation in this program. As these details are available we will inform you. However, if prior to then you have questions or wish to discuss the applicability of the use tax or this program, please contact us.

EXAMPLES OF PRODUCTS AND SERVICES SUBJECT TO THE USE TAX:

Office equipment; office supplies; furniture; cleaning supplies; repairs and maintenance; landscaping and snow removal; automatic data processing.