This week the Ohio Supreme Court heard the oral argument for three combined commercial activity tax (CAT) cases (Crutchfield, Inc., Mason Companies, Inc., and Newegg, Inc.). Last year the OMA, among others, filed amicus briefs at the high court in support of the Department of Taxation relative to these cases.
The three companies have challenged the state’s authority to collect CAT because they do not have a physical presence in Ohio; the three companies in question do sell their products in Ohio.
The OMA et al. amicus brief argued that companies with no physical presence in the state that enjoy the benefits of doing business in Ohio (through various physical connections, such as computers and intermediaries) should pay the tax, as do their competitors that physically operate in Ohio.
You can watch the oral argument here.