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Economic nexus laws by state: Ohio

by TaxJar November 12, 2023

Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.

State laws on nexus vary and it’s hard to keep up if you’re doing business in multiple states. We’ve done the research for you and here’s all the information you need to know about sales tax nexus in Ohio.

What’s the threshold for economic nexus in Ohio?

• Threshold: Sales of $100,000 or more annually or 200 or more separate transactions into the state in the current or last calendar year.
• Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for an Ohio sales tax permit, collect sales tax on sales that ship into Ohio, and remit sales tax to the state.
• You can read more about Ohio’s economic nexus law here. 

What’s the threshold for commercial activity tax in Ohio?

• State: Ohio
• Threshold: Sales into Ohio exceeding $500,000 in the current or preceding calendar year
• Summary: According to the state, sellers who meet the threshold are subject to the Commercial Activity Tax (CAT) and are required to register for an Ohio sales tax permit, collect sales tax on sales that ship into Ohio, and remit sales tax to the state.
• Full text: You can read about Ohio’s Commercial Activity Tax (CAT) here (starting on p.32). You can read more about cookie nexus here.

When did this Ohio law go into effect?

This law went into effect August 1, 2019.

What types of nexus qualifiers are common in Ohio?

Ohio has defined a type of physical nexus referred to as “cookie nexus.” According to Ohio, if a retailer places software on Ohio consumers’ devices or uses in-state server providers, this will establish a physical presence in Ohio.

In addition, Ohio also has passed Economic Nexus legislation as well as what they refer to as a Commercial Activity Tax (CAT) that designates that sellers exceeding $500k will need to register, collect and remit in their state.

Note: We do not include cookie nexus or CAT information in our TaxJar Sales & Transactions checker  as these resources are limited to states with clearly defined economic nexus laws and/or notice & report laws.

I meet the these requirements in Ohio. Now what?

Here’s a quick checklist of what to do next:

1. Register for a sales tax permit in Ohio (info below)
2. Choose a technology like TaxJar to help you manage multi-state compliance. Sign up for a free 30-day trial to see how we can help you save time.
3. Connect TaxJar once to all of the places you sell
4. Ensure all your e-commerce channels are setup correctly to collect sales tax
5. Enroll in AutoFile and tell us how often you need to file
6. Relax, you now handled your sales tax exposure. We’ll handle the rest for you.

Can you help me register for a sales tax permit?

Certainly! TaxJar offers these two options:

1. Read our do it yourself instructions for every state
2. Visit our registration page to request TaxJar manage your Ohio registration for you

Who can handle my Ohio sales tax filings for me?

At TaxJar, we help more than 10,000 sellers manage their sales tax needs every month. We help your business save on submitting your returns with our automated filing service called AutoFile.  Read more about how AutoFile can handle all of your returns in as many states as you’d like.

I’ve met this threshold in Ohio, now where can I ask questions?

We recommend speaking with a vetted sales tax expert to answer specific questions for your business.

I’m close to meeting this threshold for Ohio. Will TaxJar notify me when I reach it?

Yes! With TaxJar’s Economic Nexus Insights Dashboard, you can see where your business currently has nexus, where your business is approaching nexus, and recommended next steps on how to begin complying with sales tax in all states.

Proactive notifications let you know when you’re approaching or have reached thresholds, so you can stay in front of any changes to your nexus requirements.

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