Ohio Supreme Court Waves Red Flag On Commercial Activity Tax Assessment
On Nov. 22, 2022, the Supreme Court of Ohio issued a much-anticipated opinion addressing the sourcing of gross receipts from transactions involving intangible property. In NASCAR Holdings, Inc. v. McClain, 2022-Ohio-4131, the court held that broadcast revenue, media revenue, licensing fees and sponsorship fees that NASCAR generates are not subject to the Ohio commercial activity tax (CAT). The court unanimously rejected an assessment as to CAT assessed for broadcast revenue, media revenue and sponsorship fees. […]