An estimated 380,000 Ohio businesses may not be paying a “use tax” they owe. But they’re not being offered a partial amnesty, if they admit they owe the tax and pay part of their debt. The “use tax” is basically the state sales tax, with local piggy back taxes added on. When companies here purchase items from out of state but don’t pay the sales tax during those transactions, it becomes a “use tax” they’re supposed to pay later. John Trippier heads the Audit Division at the Ohio Department of Taxation. He tells statehouse correspondent Bill Cohen that if companies pay up now, they won’t have to pay all the back taxes they owe.
Trippier doesn’t have a firm estimate on how much in un-paid use taxes is out there, but he does say this new partial amnesty program is expected to bring in millions of dollars.