Dupee v. Tracy

Francis E. Sweeney, Sr., J.

In this case, we are asked to decide whether the distributive share income nonresident shareholders of an Ohio S corporation receive and report as part of their federal adjusted gross income is subject to Ohio personal income tax. For the reasons that follow, we answer this question in the affirmative. Accordingly, we affirm the decision of the BTA.

R.C. 5747.02 imposes an income tax on every individual residing in or earning or receiving income in Ohio. Appellants contend that they are not subject to Ohio income tax because, as residents of Florida, they could not…