Business owners in Ohio should be aware that the annual exclusion amount for Commercial Activity Tax (CAT) will increase beginning on January 1, 2025. The amount will double from $3 million to $6 million.

The Q4 2024 CAT returns are still required to be filed by February 10, 2025.  Taxpayers with anticipated taxable gross receipts of $6 million or less for the calendar year 2025 will no longer be required to pay CAT.  You can cancel the account several ways, but the easiest way is to check the cancellation box when filing the return for Q4 2024.

For more information about this change and for detailed instructions on how to cancel your account, visit the Ohio Department of Taxation’s website at tax.ohio.gov/catlawchanges.

Please reach out to your contact at Holbrook & Manter for assistance with this matter. We would be happy to help.