Section 5747.41 | Withholding tax on qualifying pass-through entity or trust having individual qualifying investor or beneficiary.

• Effective: June 14, 2022
• Latest Legislation: Senate Bill 246 - 134th General Assembly

For the same purposes for which the tax is levied under section 5747.02 of the Revised Code, there is hereby levied a withholding tax on every qualifying pass-through entity having at least one qualifying investor who is an individual and on every qualifying trust having at least one qualifying beneficiary who is an individual. The withholding tax imposed by this section is imposed on the sum of the adjusted qualifying amounts of a qualifying pass-through entity's qualifying investors who are individuals and on the sum of the adjusted qualifying amounts of a qualifying trust's qualifying beneficiaries, at a rate equal to the tax rate imposed on taxable business income under division (A)(4)(a) of section 5747.02 of the Revised Code.

The tax imposed by this section applies only if the qualifying entity has nexus with this state under the Constitution of the United States for any portion of the qualifying entity's qualifying taxable year, and the sum of the qualifying entity's adjusted qualifying amounts exceeds one thousand dollars for the qualifying entity's qualifying taxable year.

The tax imposed under this section does not apply to a qualifying pass-through entity that makes an election under division (C) of section 5747.38 of the Revised Code to be subject to the tax levied under that section for the entity's qualifying taxable year.

Last updated July 28, 2022 at 4:03 PM

Available Versions of this Section

• June 30, 1997 – House Bill 215 - 122nd General Assembly
• September 13, 2016 – House Bill 182 - 131st General Assembly
• March 27, 2020 – Amended by House Bill 197 - 133rd General Assembly
• March 31, 2021 – Amended by Senate Bill 18 - 134th General Assembly
• June 14, 2022 – Amended by Senate Bill 246 - 134th General Assembly