Ohio Bank Fails on Second Attempt for State Sales Tax Refund

An Ohio bank isn’t entitled to a refund of sales tax for account-processing services it paid Fiserv Inc. because the true intent of the transaction was to obtain taxable computer services, the state tax board ruled Monday.

Cincinnati Federal Savings & Loan Co. had a second chance to argue its refund case after the state Supreme Court remanded the issue in 2022. The court said the Ohio Board of Tax Appeals didn’t adequately assess whether some of the service charges the bank paid Fiserv were for nontaxable customized software.

In Ohio, automatic data processing, electronic information services, and computer services ...