Apple Seeks to Slash Ohio Tax on App, Distribution Center Sales

Apple Inc. is disputing roughly $2.8 million of commercial activity tax, interest and penalties that Ohio regulators say it owes on revenue from electronics and e-commerce between October 2011 and September 2016.

The state Department of Taxation incorrectly refused to exclude $961,002,658 in sales Apple made to distribution centers—such as Best Buy Inc.—and failed to take into account that it took only a 30% commission on e-book and app store sales during this time period, the Cupertino, Calif.-based company said in a notice of appeal filed Aug. 6 in the Board of Tax Appeals.

Ohio’s ...