Net Profit Income Tax Form 27 Instruction Booklet

Line 3C. Allowable Net Operating Loss

Line 8. Computation of Estimated Tax

The following municipalities prohibit net operating loss carryovers:

Per H.B. 5 effective January 1, 2016 all RITA municipalities

BELLE CENTER, BELLEFONTAINE, BEXLEY, BRIMFIELD TWP. / TALLMADGE

have a minimum estimate of $200.

JEDD, CIRCLEVILLE, CLINTON, CLINTON TWP. / GRANDVIEW HTS. JEDZ,

DANVILLE, DEGRAFF, DENNISON, EAST PALESTINE, EATON, EDGERTON,

Estimated tax payments are due on the fifteenth (15th) day of the fourth (4th)

EDISON, FAIRBORN, FOSTORIA, FREDERICKTOWN, FREMONT, GAHANNA,

month following the end of each fiscal quarter.

GALION, GIRARD, GRAFTON, GRANDVIEW HEIGHTS, GROVE CITY, HILLIARD,

A. Enter the computed, estimated taxable income and tax for each municipality

HIRAM, JOHNSTOWN, LAKEMORE, LITHOPOLIS, LOCKBOURNE,

in the space provided next to the name of that municipality. Then place the

MECHANICSBURG, MIDDLEPORT, MIFFLIN, MINGO JUNCTION,

total estimated taxes on Line 8A.

NEW ALBANY, NEW FRANKLIN, NEW WATERFORD, NORTH CANTON,

B. Credit from prior year: If upon completion of your annual net profit

PATASKALA, PIKETON, POWELL, REYNOLDSBURG, RICHWOOD,

Form 27 you have accrued a credit and did not request a refund, you may

RIO GRANDE, RUSH TWP. / UHRICHSVILLE JEDD, SANDUSKY,

take that credit on Line 8B. Otherwise, place a zero on this line.

SCIOTO TWP. JEDD, SHAWNEE HILLS, SHEFFIELD LAKE, SILVERTON, SUGAR

D. Enter the amount of estimated tax to be paid with this return. For your

GROVE, SUNBURY, TALLMADGE, THURSTON, TORONTO,

convenience, you may pay the full amount of total estimated tax due, (Line 8C)

TREMONT CITY, TWINSBURG, UHRICHSVILLE, UPPER ARLINGTON,

with this declaration. Otherwise, 1/4 of the estimated tax due must be

URBANCREST, WELLSVILLE, WILLSHIRE, WORTHINGTON, and

remitted with this declaration and the remaining amount will be billed.

YELLOW SPRINGS.

For each RITA municipality owed, if your estimated payments are not 90%

BALTIMORE, BELLEVUE, EASTLAKE, and MAPLE HEIGHTS, allow a net operating

of the tax due or are not equal to or greater than your prior year’s

loss to be carried forward for a maximum of one (1) year.

total

tax liability,

you

will

subject

penalty

and

interest

assessments. Quarterly payments of estimated tax must be made to

BOSTON HEIGHTS, CORWIN, GREENHILLS, HARRISON,

each RITA municipality if the amount owed is greater than or equal to

HARRISON TWP. JEDD, MT. HEALTHY, NORWALK, OBERLIN, OXFORD,

$200.

RIVERSIDE, SPRINGFIELD TWP. JEDZ I, VERMILION, WELLINGTON, and

WILLIAMSBURG allow a net operating loss to be carried forward a maximum of three

Line 9. Total Due

(3) years.

Print your federal employer identification number on your check or money order

JEWETT allows a net operating loss to be carried forward for a maximum of seven (7)

and make it payable to RITA. Sign and date Form 27 in the space provided.

years.

Enclose your check or money order with the Form 27 along with a copy of the

federal return and supporting schedules as indicated below.

MCDONALD allows a net operating loss to be carried forward for a maximum of ten

(10) years.

WHAT TO ATTACH TO YOUR RETURN:

All other RITA municipalities allow a net operating loss to be carried forward for a

Attach a complete copy of the Federal Form 1041, 1065, 1120, 1120-A, 1120-

maximum of five (5) years.

REIT, or 1120S as appropriate. Also attach copies of Schedule D, Schedule

E, F o r m 1 1 2 5 - A , Form 4562, Form 4797, Form 8825, and any supporting

Per H.B. 5, every Ohio municipality with an income tax must

statements for “other income”, “taxes and licenses”, “other expenses”, and

allow losses incurred on or after January 1, 2017 to be carried

Form 1125-A “other costs”. If applicable, attach copies of any K-1 schedules

issued or received. If filing a consolidated return, attach copies of your federal

forward for up to 5 years. The bill requires a 5-year phase in

consolidation schedules. If you issued any 1099-MISC forms, please attach

period at a rate of 50% each year through tax year 2023. See

copies of 1099’s issued to Ohio residents (you may submit these copies on

the RITA Municipalities section at

for

paper or on a CD using the Publication 1220 file format). Note: The federal

detailed municipality information.

return with applicable schedules and 1099’s MUST be attached to be

considered a complete tax return. CDs containing 1099-MISC must be mailed

to RITA Business Department, P.O. Box 477900 Broadview Heights, OH 44147-

HOW TO TREAT A NET OPERATING LOSS:

7900.

The portion of a net operating loss sustained in any taxable year allocable to a

RITA municipality may be applied against the portion of the profit of the succeeding

JOINT ECONOMIC DISTRICTS (JEDDs),

year(s) allocable to the same RITA municipality until exhausted or expired. No portion

JOINT ECONOMIC DEVELOPMENT

of a net operating loss shall be carried back against net profits of any prior year.

The portion of a net operating loss sustained shall be allocated to a RITA municipality

DISTRICTS (JEDZs) or ENTERPRISE ZONES

in the same manner as provided herein for allocating net profits to the taxing

municipality. A municipality specific worksheet or schedule is required to

(E-ZONES)

support a n e t operating loss c a r r y - f o r w a r d claimed on the return. The

net operating loss of a business which loses its identity through merger, consolidation,

etc. shall be allowed as a loss carry-forward deduction to the surviving business

Most RITA revenue sharing districts (JEDDs, JEDZs and E-Zones) require

entity to the extent permitted by the Internal Revenue Code.

taxpayers to file annual Net Profit returns separately from the related municipal

tax authority, meaning net profits must be allocated to revenue sharing districts

as if the districts are separate, stand-alone municipalities.

However, the

Line 5. Municipal Tax Due

following JEDDs and E-Zone require that you file the annual Net Profit return

You must complete Schedule B on Page 2 for any amount shown on Line 5. See

with the related tax authority:

to obtain current tax rates.

JEDD, JEDZ or E-Zone ______

Tax Authority

Beachwood East JEDD

Beachwood

Line 6A. Payments on Declarations of

Beachwood West JEDD

Beachwood

Estimated Municipal Tax

Orange Chagrin Highland JEDD

Orange

Reynoldsburg Enterprise Zone

Reynoldsburg

Enter estimated payments made to RITA municipalities for this taxable year.

Line 6B. Amount of Previous Year Credits

Enter credit from prior year(s). (This should be the overpayment you indicated on

the prior year return to be credited against this year’s tax).

Line 7A. Balance Due

If Line 5 is greater than Line 6C, enter the difference here. Remittance in this amount

must accompany the return when filed. A business may round off cents.

Line 7B. Overpayment Claimed

Per H.B. 5 effective January 1, 2016, all RITA municipalities

will not refund amounts under $10.01.

If Line 6C is greater than Line 5, enter the difference here. This amount will be

transferred as a credit unless you request a refund. Amounts $10 or less will not be

refunded. If requesting a refund, please check the refund box on return envelope

to expedite processing of the refund.

Net Profit Income Tax Form 27 Instruction Booklet - 2016 Page 3

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