Effective July 1st, 2015 the Ohio Department of Taxation will implement changes to the method of calculating the rate of the PAT (Petroleum Activity Tax). The official wording is provided below; but basically the rate for each calendar quarter will be the average wholesale price of regular unleaded gasoline for the calendar quarter beginning six (6) months before the quarter when the tax begins.
In other words the PATax rate for the third (3rd) quarter of 2015 will be the average of the wholesale price of unleaded regular gasoline during the first (1st) quarter of 2015. The change will be implemented by suppliers at the first point of sale.
This should have little, if any, effect on MIRA members. It’ll still be a level playing field as it applies to the PAT tax. Remind your accountant of this change.
Here is the official wording from R. C. 5736.01(E):
“Calculated gross receipts” means the sum of the following:
- With respect to sales of gasoline, the product obtained by multiplying (a) the total number of gallons of gasoline first sold within this state by a supplier during the tax period by (b) the average wholesale price of a gallon of unleaded regular gasoline for the calendar quarter that begins six months before the upcoming calendar quarter, as published by the tax commissioner under division (C) of section 5736.02 of the Revised Code;
- With respect to sales of motor fuel that is not gasoline, the product obtained by multiplying (a) the total number of gallons of motor fuel first sold within this state by a supplier during the tax period by (b) the average wholesale price of a gallon of diesel fuel for the calendar quarter that begins six months before the upcoming calendar quarter, as published by the tax commissioner under division (C) of section 5736.02 of the Revised Code.