S.B. No. 203 Summary

• Amends sections 718.02 and 718.82 of the Revised Code to reinstate the municipal income tax "throw-back rule" for apportioning business income among municipalities.

• Establishes that business net profit earned both within and outside a municipal corporation is taxed in the same proportion as the average ratio of three factors: property ownership, payroll/wages, and gross receipts within the municipality.

• Allows taxpayers to request alternative apportionment methods if standard factors don't fairly represent business activity in a municipality, subject to tax administrator approval or denial within specified assessment periods.

• Applies specific rules for situsing business receipts (sales, services, real estate, rentals, royalties) to municipalities based on location of property, performance of services, or solicitation activities.

• Effective for taxable years beginning on or after January 1, 2018.