Question

A school is looking to work with another company to install off-shore wind turbines in Ohio to provide its electricity needs for the next 25 years. What would be the tax rate for a joint venture company that would install wind turbines.

If you could please identify the type/category of company and search the web for its tax rate, preferably find a pdf example of this case in a financial report or something. Thank you.

Answer 1

Joint Venture: Business arrangement in which two or more parties agree to invest their resources to fulfill a common task.

Ohio has a commercial activity tax (CAT) which is a broad based, low rate business tax measured by person's Ohio based gross receipt. Tax is applied as follows:

Those having gross receipts less than $150,000- No tax

Those having gross receipts from $150,000 to $1 million-  $150 tax

Those having gross receipts over $1 million up to $2 million - $800 tax

Those having gross receipts over $2 million up to $4 million - $2100 tax

Those having gross receipts over $4 million = $2600 base tax + .26% of gross receipts

Income from joint venture is distributed among the parties involved and they have to pay taxes on their income to both federal and state tax returns along with CAT.