Columbia Properties, Inc. v. Limbach

The franchise tax is levied on corporations for the privilege of doing business in Ohio, R.C. 5733.01, at the greater amount calculated on either the net worth or the net income basis. R.C. 5733.06. This case involves the net income basis.

Under R.C. 5733.05(B), net income is either allocated to Ohio according to the situs of the property that generated the income or apportioned to Ohio according to a formula that assigns to *76Ohio that portion of the corporation’s total net income derived from the corporation’s business activity in Ohio. Under R.C. 5733.051(A)(1) (now R.C. 5733.051[A]), rental…