Looking for a Ohio Tax Forms And Templates? Download it for free!

CAT Dist.

Rev. 7/07

Page 3

Qualifying Certificate Information and Instructions

The tax commissioner will issue to the operator of the distribution center for which this application is filed a qualifying

certificate

certifying the distribution center as a qualifying distribution center for the 2008 qualifying year only if (i) the

applicant pays the $100,000 annual fee; (ii) the operator of the distribution center is not part of a CAT combined taxpayer group

(see R.C. 5751.012(A)); and (iii) the applicant substantiates to the tax commissioner’s satisfaction that during the qualifying

period July 1, 2006 to June 30, 2007 the following thresholds are met:

a. The operator of the distribution center purchased from its suppliers (excluding suppliers that are members of the operator’s

consolidated elected taxpayer group) at least $500 million of qualified property for delivery to the distribution center;

and

b. The cost of qualified property shipped by the operator from the distribution center to Ohio locations during the qualifying

period was less than 50% of the cost of qualified property shipped from the distribution center to locations everywhere

during the qualifying period (cost being determined on a consistent and generally recognized method).

Note: In determining whether the above thresholds are met, members of a consolidated elected taxpayer group are considered

one taxpayer. The operator of a qualifying distribution center is deemed to be the person actually operating the distribution

center along with each member of that person’s consolidated elected taxpayer group that purchases and receives

qualified property at the qualified distribution center. While a qualified distribution center, by definition, cannot be

operated by a person that is a member of a combined taxpayer group, a qualified distribution center can be operated by a

person or persons that are members of a consolidated elected taxpayer group.

The applicant meets the tax commissioner’s substantiation requirement in (a) and (b), above, only if:

• The operator of the distribution center attaches to this application a schedule showing each of the following: (i) the

amount of qualified property purchased from suppliers delivered to the distribution center; (ii) the cost of qualified property

shipped from the distribution center to Ohio locations during the qualifying period; (iii) the cost of qualified property

shipped from the distribution center to locations everywhere during the qualifying period; and (iv) the Ohio delivery

percentage (carried out to four decimal places – XX.XXXX%).

• An officer of the distribution center’s operator signs and dates the statement in Section C of this application attesting to

the information contained on the application and declaring that, to the best of his/her knowledge, the information is

correct. In addition, the officer must agree to allow the tax commissioner to inspect the records of the operator of the

distribution center in order to verify all amounts.

• An independent certified public accountant signs and dates the Report of Independent Accountants accompanying this

application. That report must be signed and completed by an independent certified public accountant and not an employee

of the operator or the operator’s taxpayer group. Absent approval by the tax commissioner, the exact verbiage must be

used, replacing “[Name of Distribution Center]”, “[Distribution Center Location]”, and “[Name of Distribution Center Applicant/

Operator]” with the name and location of the distribution center, as well as the name of the distribution center applicant/

operator. In addition, the complete years must be inserted for both the beginning and ending of the qualifying period.

• The operator of the distribution center furnishes both (a) the cost of property shipped from the distribution center to Ohio

locations during the qualifying period; and (b) the cost of property shipped from the distribution center to locations

everywhere during the qualifying period.

If the tax commissioner approves this annual application by issuing a qualifying certificate to the applicant for the distribution

center identified on the application, then for the qualifying year (calendar year 2008) each supplier to the distribution center,

except for those suppliers that are members of the operator’s consolidated elected taxpayer group, can exclude from the

supplier’s gross receipts subject to the CAT the supplier’s qualifying distribution center receipts. A supplier’s qualifying

distribution center receipts are the supplier’s receipts from qualified property (qualified property is tangible personal property

shipped by the supplier to the distribution center solely for storing, repackaging and further shipping – but not manufacturing or

processing) multiplied by the quantity one minus the distribution center’s certified Ohio delivery percentage. (The distribution

center’s Ohio delivery percentage is the ratio of the cost of property shipped from the distribution center to Ohio locations

during the qualifying period (July 1, 2006 through June 30, 2007) to the cost of property shipped from the distribution center to

locations everywhere during the qualifying period (July 1, 2006 through June 30, 2007).

Terms defined in the law appear in bold print the first time they are used.

Commercial Activity Tax Annual Application For Distribution Center Qualifying Certificate And Ohio Delivery Percentage Certification For The Qualifying Year Jan. 1, 2008 Through Dec. 31, 2008 - Ohio Department Of Taxation Page 3

Related Articles

Related forms

Related Categories