Ohio Air Taxi Not Exempt Public Utility

Monday, September 8th, 2014

 
 
An air taxi.
Share
Link
Ohio
General

The Ohio Board of Tax Appeals ("Board") recently ruled that an air taxi operator did not qualify as a public utility for a sales tax exemption.

The taxpayer provided cargo air transportation services. It specialized in transporting time-sensitive cargo, such as checks for transfer among financial institutions, radio pharmaceuticals, and sensitive government documents. The taxpayer could have sought a certificate of public convenience and necessity, but it chose not to do so.

Ohio exempts sales of items used or consumed directly in rendering a public utility service. To determine whether a business is a "public utility," Ohio looks at the amount of special regulation and control by a government regulatory agency. Businesses that are not subject to a great degree of such regulation are not public utilities. A "public utility" includes a United States citizen that holds a certificate of public convenience and necessity. To get such a certificate, a person must undergo review by the federal Department of Transportation and submit periodic reports to that Department, among other things.

The Board ruled that the air taxi operator was not a public utility. The Board said that it was not necessary to have a certificate of public convenience and necessity to be a public utility, but a public utility must be subject to a great deal of government regulation. Although the taxpayer had to comply with certain requirements from its customers because of the sensitive services it provided, the taxpayer voluntarily undertook those obligations. The government did not impose those obligations. The taxpayer did not have a certificate of public convenience and necessity and did not have enough government regulation. The taxpayer was therefore not a public utility.

https://ohio-bta.modria.com/casedetails/51439


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...