Property Tax Alert: Ohio

March 2004

The taxability of software for Ohio personal property tax purposes for both general business taxpayers and public utilities is explained. Based on prior case law at the Ohio Board of Tax Appeals (BTA) and the stated position of the Ohio Department of Taxation (ODT) in the past, prewritten computer software and the customization costs for software that operates other personal property are taxable and will be picked up on audit if they were not included on the tax return. On audit, ODT is not at the present time picking up the customization costs for software used in non-core business functions. In other words, that type of customization costs will not be picked up as being part of the taxable personal property tax base.

Please contact Rash & Associates for more information.