Login | February 19, 2026
Ohio Supreme Court Upholds Tax on DSW Shipments
Supreme Court Public Information Office
Published: February 19, 2026
The Supreme Court of Ohio upheld the imposition of the Ohio commercial activity tax (CAT) on $108 million of merchandise shipped to DSW’s Columbus distribution center before items were sent to stores both in and out of Ohio.
In a 5-2 decision, the Supreme Court rejected a $854,627 refund request from Jones Apparel Group/Nine West Holdings for merchandise shipped to DSW during tax years 2010 through 2016. The refund request was rejected by the Ohio tax commissioner, and the Ohio Board of Tax Appeals (BTA) upheld the decision in 2023, finding that Jones Apparel failed to prove it was entitled to a refund.
Writing for the Court majority, Justice Jennifer Brunner stated that Jones Apparel witnesses provided estimates to the BTA, insisting that at least 80% of its goods sent to DSW were not subject to Ohio CAT. However, Ohio law requires a business seeking a refund to provide supporting evidence documenting the requested amount, she wrote.
“Simply testifying that one is confident that ‘at least 80 percent’ of the goods ended up outside of Ohio falls well short of the evidentiary showing necessary to prove the amount of the claimed refund,” she stated.
Justices R. Patrick DeWine, Joseph T. Deters, Daniel R. Hawkins, and Megan E. Shanahan joined Justice Brunner’s opinion.
In a dissenting opinion, Chief Justice Sharon L. Kennedy wrote that under Ohio tax law, the vast majority of Jones Apparel’s goods were ultimately received outside of DSW’s Ohio stores and were not subject to the CAT. She added that Jones Apparel’s expert witnesses presented evidence indicating that far more than 80% of its goods were not subject to the tax, and she would have held that the company proved it was entitled to a refund.
Justice Patrick F. Fischer joined the chief justice’s opinion.