Ohio Repeals “Cookie” Nexus Standards

Kaitlyn Smethurst
August 8, 2019

[August 2, 2019] Among the many changes found in the recently passed Ohio Budget Bill, H.B. 166, Ohio has removed the statutory provisions previously imposing physical nexus standards on sellers using “in-state software” to sell goods and services to consumers inside Ohio. This former nexus standard is commonly referred to as “cookie” nexus. Specifically, under Ohio’s Tax Code, the previous nexus standard, seen in section 5741.01(2)(I)(2)(h), has been repealed and is no longer valid. 

Language of the budget bill can be seen here, and the Ohio Department of Taxation has released budget-related guidance that details this change with further information. 

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Kaitlyn Smethurst

Katie Smethurst is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Katie focuses on global sales tax and VAT issues, supporting both the tax determination and reporting engines. Katie received her B.A. in International Relations and Spanish from Roger Williams University and her J.D. from Suffolk University Law School. She is a member of the Massachusetts and New Hampshire Bars.
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