Cincinnati Bengals, Inc. v. Lindley

Appellant, in its sole proposition of law, asserts that compensation paid to the football players and part-time scouts for games played and services performed outside the state of Ohio does not constitute compensation paid in the state of Ohio for purposes of determining the franchise tax “payroll factor,” pursuant to R. C. 5733.05 (B)(2)(b).

Appellant improperly applied R. C. 5733.05(B)(2)(b) by not allocating 100 percent of the corporation’s payroll to Ohio for purposes of calculating the franchise tax.

The Ohio franchise tax is an excise tax levied against a corporation “***f0r the privilege…