Ohio - Is All computer Software Part of Ohio's Taxable Personal Property Tax Base - The SALT Group®

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		For Immediate Release September 22, 2004 Ohio – Is All Computer Software Part of Ohio’s Taxable Personal Property Tax Base? The Ohio DOT thinks so. The decision rests with the outcome of several cases pending before the Board of Appeals. The DOT is taking the position in this litigation that all computer software (prewritten and all customization costs) is taxable for personal property tax purposes. If the result is that all software is deemed to be part of the taxable personal property tax base, including software relating to non-core business activities, the Ohio DOT will alter its policy in the tax year immediately following the decision and assess all software on a prospective basis. Based on prior case law and the stated position of the ODT in the past, prewritten software and the customization costs for software that operates other personal property is taxable and will be picked up on audit if it was not included on the tax return. On audit, the DOT is not presently picking up the customization costs for software used in non-core business functions – i.e., that type of customization cost is not being picked up as part of the taxable base. If you would like additional information on this topic or have any questions, please contact David Rohlmeier, Regional Vice President - Sales & Use Tax Group at (469) 364-9600. E-mail drohlmeier@thesaltgroup.com Back to Main News Page



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