Sec. 5739.02. For the purpose of providing revenue with | 8 |
which to meet the needs of the state, for the use of the general | 9 |
revenue
fund of the state, for the purpose of securing a thorough | 10 |
and
efficient system of common schools throughout the state, for | 11 |
the purpose of affording revenues, in addition to those from | 12 |
general property taxes, permitted under constitutional | 13 |
limitations, and from other sources, for the support of local | 14 |
governmental functions, and for the purpose of reimbursing the | 15 |
state for the expense of administering this chapter, an excise
tax | 16 |
is hereby levied on each retail sale made in this state. | 17 |
(6) Sales of motor fuel upon receipt, use,
distribution, or | 48 |
sale of which in this state a tax is imposed by
the law of this | 49 |
state, but this exemption shall not apply to the
sale of motor | 50 |
fuel on which a refund of the tax is
allowable under section | 51 |
5735.14 of the Revised Code; and the tax
commissioner may deduct | 52 |
the amount of tax levied by this section
applicable to the price | 53 |
of motor fuel when granting a
refund of motor fuel tax pursuant to | 54 |
section 5735.14 of
the Revised Code and shall cause the amount | 55 |
deducted to be paid
into the general revenue fund of this state; | 56 |
(7) Sales of natural gas by a natural gas company, of water | 57 |
by a water-works
company, or of steam by a heating company, if in | 58 |
each case the
thing sold is delivered to consumers through pipes | 59 |
or
conduits, and all sales of communications services by a | 60 |
telephone
or telegraph company, all terms as defined in section | 61 |
5727.01 of
the Revised Code; | 62 |
(8) Casual sales by a person, or auctioneer employed | 63 |
directly by the person to conduct such sales, except as to
such | 64 |
sales of
motor vehicles, watercraft or outboard motors required to | 65 |
be
titled under section 1548.06 of the Revised Code, watercraft | 66 |
documented with the United States coast guard, snowmobiles, and | 67 |
all-purpose vehicles as defined in section 4519.01 of the Revised | 68 |
Code; | 69 |
(9) Sales of services or tangible personal property, other | 70 |
than motor vehicles, mobile homes, and manufactured
homes, by | 71 |
churches, organizations exempt from taxation under
section | 72 |
501(c)(3) of the Internal Revenue
Code of 1986, or
nonprofit | 73 |
organizations operated exclusively for charitable
purposes as | 74 |
defined in division (B)(12) of this section, provided
that the | 75 |
number of days on which such tangible personal property
or | 76 |
services, other than items never subject to the tax, are sold
does | 77 |
not exceed six in any calendar year. If the number of days
on | 78 |
which such sales are made exceeds six in any calendar year,
the | 79 |
church or organization shall be considered to be engaged in | 80 |
business and all subsequent sales by it shall be subject to the | 81 |
tax. In counting the number of days, all sales by groups within
a | 82 |
church or within an organization shall be considered to be
sales | 83 |
of that church or organization, except that sales made by
separate | 84 |
student clubs and other groups of students of a primary
or | 85 |
secondary school, and sales made by a parent-teacher
association, | 86 |
booster group, or similar organization that raises
money to | 87 |
support or fund curricular or extracurricular activities
of a | 88 |
primary or secondary school, shall not be considered to be
sales | 89 |
of such school, and sales by each such club, group,
association, | 90 |
or organization shall be counted separately for
purposes of the | 91 |
six-day limitation. This division does not apply
to sales by a | 92 |
noncommercial educational radio or television
broadcasting | 93 |
station. | 94 |
(12) Sales of tangible personal property or services to | 99 |
churches, to organizations exempt from taxation under section | 100 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other | 101 |
nonprofit organizations operated exclusively for charitable | 102 |
purposes in this state, no part of the net income of which inures | 103 |
to the benefit of any private shareholder or individual, and no | 104 |
substantial part of the activities of which consists of carrying | 105 |
on propaganda or otherwise attempting to influence legislation; | 106 |
sales to offices administering one or more homes for the aged or | 107 |
one or more hospital facilities exempt under section 140.08 of
the | 108 |
Revised Code; and sales to organizations described in
division (D) | 109 |
of section 5709.12 of the Revised Code. | 110 |
"Charitable purposes" means the relief of poverty; the | 111 |
improvement of health through the alleviation of illness,
disease, | 112 |
or injury; the operation of an organization
exclusively
for the | 113 |
provision of professional, laundry, printing, and
purchasing | 114 |
services to hospitals or charitable institutions;
the
operation of | 115 |
a home for the aged, as defined in section 5701.13
of the Revised | 116 |
Code; the operation of a radio or television
broadcasting station | 117 |
that is licensed by the federal
communications commission as a | 118 |
noncommercial educational radio or
television station; the | 119 |
operation of a nonprofit animal
adoption service or a county | 120 |
humane society; the promotion of
education by an institution of | 121 |
learning that maintains a faculty of
qualified instructors, | 122 |
teaches regular continuous courses of study, and
confers a | 123 |
recognized diploma upon completion of a specific
curriculum; the | 124 |
operation of a parent-teacher association,
booster group, or | 125 |
similar organization primarily engaged in the
promotion and | 126 |
support of the curricular or extracurricular
activities of a | 127 |
primary or secondary school; the operation of a
community or area | 128 |
center in which presentations in music,
dramatics, the arts, and | 129 |
related fields are made in order to
foster public interest and | 130 |
education therein; the production of
performances in music, | 131 |
dramatics, and the arts; or the
promotion of education by an | 132 |
organization engaged in carrying on research
in, or the | 133 |
dissemination of, scientific and technological
knowledge and | 134 |
information primarily for the public. | 135 |
(13) Building and construction materials and services sold | 141 |
to construction contractors for incorporation into a structure or | 142 |
improvement to real property under a construction contract with | 143 |
this state or a political subdivision thereof, or with the United | 144 |
States government or any of its agencies; building and | 145 |
construction materials and services sold to construction | 146 |
contractors for incorporation into a structure or improvement to | 147 |
real property that are accepted for ownership by this
state or
any | 148 |
of its political subdivisions, or by the United States
government | 149 |
or any of its agencies at the time of completion of
such | 150 |
structures or improvements; building and construction
materials | 151 |
sold to construction contractors for incorporation into
a | 152 |
horticulture structure or livestock structure for a person
engaged | 153 |
in the business of horticulture or producing livestock;
building | 154 |
materials and services sold to a construction contractor
for | 155 |
incorporation into a house of public worship or religious | 156 |
education, or a building used exclusively for charitable purposes | 157 |
under a construction contract with an organization whose purpose | 158 |
is as described in division (B)(12) of this section; building | 159 |
materials and
services sold to a construction contractor for | 160 |
incorporation into a building
under a construction contract with | 161 |
an organization exempt from taxation under
section 501(c)(3) of | 162 |
the Internal Revenue
Code of 1986 when the building is to be used | 163 |
exclusively for the
organization's exempt purposes; building and | 164 |
construction materials sold for incorporation into the original | 165 |
construction of a sports facility under section 307.696 of the | 166 |
Revised Code; and building and construction materials and
services | 167 |
sold to a construction contractor for incorporation into
real | 168 |
property outside this state if such materials and services,
when | 169 |
sold to a construction contractor in the state in which the
real | 170 |
property is located for incorporation into real property in
that | 171 |
state, would be exempt from a tax on sales levied by that
state; | 172 |
(15) Sales to persons engaged in any of the activities | 177 |
mentioned in division (E)(2) or (9) of section 5739.01 of the | 178 |
Revised Code, to persons engaged in making retail sales, or to | 179 |
persons who purchase for sale from a manufacturer tangible | 180 |
personal property that was produced by the manufacturer in | 181 |
accordance with specific designs provided by the purchaser, of | 182 |
packages, including material, labels, and parts for packages, and | 183 |
of
machinery, equipment, and material for use primarily in | 184 |
packaging
tangible personal property produced for sale, including | 185 |
any machinery,
equipment, and supplies used to make labels or | 186 |
packages, to prepare packages
or products for labeling, or to | 187 |
label packages or products, by or on the order
of the person doing | 188 |
the packaging, or sold at retail. "Packages"
includes bags, | 189 |
baskets, cartons, crates, boxes, cans, bottles,
bindings, | 190 |
wrappings, and other similar devices and containers, and | 191 |
"packaging" means placing therein. | 192 |
(17) Sales to persons engaged in farming, agriculture, | 198 |
horticulture, or floriculture, of tangible personal property for | 199 |
use or consumption directly in the production by farming, | 200 |
agriculture, horticulture, or floriculture of other tangible | 201 |
personal property for use or consumption directly in the | 202 |
production of tangible personal property for sale by farming, | 203 |
agriculture, horticulture, or floriculture; or material and parts | 204 |
for incorporation into any such tangible personal property for
use | 205 |
or consumption in production; and of tangible personal
property | 206 |
for such use or consumption in the conditioning or
holding of | 207 |
products produced by and for such use, consumption, or
sale by | 208 |
persons engaged in farming, agriculture, horticulture, or | 209 |
floriculture, except where such property is incorporated into real | 210 |
property; | 211 |
(18) Sales of drugs dispensed by a licensed
pharmacist
upon | 212 |
the order of a licensed health professional
authorized to | 213 |
prescribe drugs to a human being, as the term "licensed health | 214 |
professional authorized to prescribe drugs" is defined in section | 215 |
4729.01
of the Revised Code;
insulin as recognized in the official | 216 |
United States pharmacopoeia; urine and blood testing materials | 217 |
when used by diabetics or persons with hypoglycemia to test for | 218 |
glucose or acetone; hypodermic syringes and needles when used by | 219 |
diabetics for insulin injections; epoetin alfa when purchased for | 220 |
use in
the treatment of persons with end-stage renal disease; | 221 |
hospital
beds when purchased
for use by persons with medical | 222 |
problems for medical purposes;
and oxygen and oxygen-dispensing | 223 |
equipment when purchased for use
by persons with medical problems | 224 |
for medical purposes; | 225 |
(19)(a) Sales of artificial limbs or portion thereof, breast | 226 |
prostheses, and other prosthetic devices for humans; braces or | 227 |
other devices for supporting weakened or nonfunctioning parts of | 228 |
the human body;
wheelchairs; devices used to lift wheelchairs
into | 229 |
motor vehicles and parts and accessories to such devices; crutches | 230 |
or other devices to aid human perambulation; and items
of tangible | 231 |
personal property used to supplement impaired
functions of the | 232 |
human body such as respiration, hearing, or
elimination; | 233 |
(b) Sales of wheelchairs; items incorporated into or used in | 234 |
conjunction with a motor vehicle for the purpose of transporting | 235 |
wheelchairs, other than transportation conducted in connection | 236 |
with the sale or delivery of wheelchairs; and items incorporated | 237 |
into or used in conjunction with a motor vehicle that are | 238 |
specifically designed to assist a person with a disability to | 239 |
access or operate the motor vehicle. As used in this division, | 240 |
"person with a disability" means any person who has lost the use | 241 |
of one or both legs or one or both arms, who is blind, deaf, or | 242 |
disabled to the extent that the person is unable to move about | 243 |
without the aid of crutches or a wheelchair, or whose mobility is | 244 |
restricted by a permanent cardiovascular, pulmonary, or other | 245 |
disabling condition.
No | 246 |
(22) Sales of services provided by the state or any of its | 265 |
political subdivisions, agencies, instrumentalities,
institutions, | 266 |
or authorities, or by governmental entities of the
state or any of | 267 |
its political subdivisions, agencies,
instrumentalities, | 268 |
institutions, or authorities; | 269 |
(23) Sales of motor vehicles to nonresidents of this state | 270 |
upon the presentation of an affidavit executed in this state by | 271 |
the nonresident purchaser affirming that the purchaser is a | 272 |
nonresident of this state, that possession of the motor vehicle
is | 273 |
taken in this state for the sole purpose of immediately
removing | 274 |
it from this state, that the motor vehicle will be
permanently | 275 |
titled and registered in another state, and that the
motor vehicle | 276 |
will not be used in this state; | 277 |
(24) Sales to persons engaged in the preparation of eggs
for | 278 |
sale of tangible personal property used or consumed directly
in | 279 |
such preparation, including such tangible personal property
used | 280 |
for cleaning, sanitizing, preserving, grading, sorting, and | 281 |
classifying by size; packages, including material and parts for | 282 |
packages, and machinery, equipment, and material for use in | 283 |
packaging eggs for sale; and handling and transportation
equipment | 284 |
and parts therefor, except motor vehicles licensed to
operate on | 285 |
public highways, used in intraplant or interplant
transfers or | 286 |
shipment of eggs in the process of preparation for
sale, when the | 287 |
plant or plants within or between which such
transfers or | 288 |
shipments occur are operated by the same person.
"Packages" | 289 |
includes containers, cases, baskets, flats, fillers,
filler flats, | 290 |
cartons, closure materials, labels, and labeling
materials, and | 291 |
"packaging" means placing therein. | 292 |
(34) Sales to a telecommunications service vendor of | 334 |
tangible personal property and services used directly and | 335 |
primarily in transmitting, receiving, switching, or recording any | 336 |
interactive, two-way electromagnetic communications, including | 337 |
voice, image, data, and information, through the use of any | 338 |
medium, including, but not limited to, poles, wires, cables, | 339 |
switching equipment, computers, and record storage devices and | 340 |
media, and component parts for the tangible personal property.
| 341 |
The exemption provided in division (B)(34) of this section
shall | 342 |
be in lieu of all other exceptions under division (E)(2) of | 343 |
section 5739.01 of the Revised Code to which a telecommunications | 344 |
service vendor may otherwise be entitled based upon the use of
the | 345 |
thing purchased in providing the telecommunications service. | 346 |
(35) Sales of investment metal bullion and investment
coins. | 347 |
"Investment metal bullion" means any elementary precious
metal | 348 |
that has been put through a process of smelting or
refining, | 349 |
including, but not limited to, gold, silver, platinum,
and | 350 |
palladium, and which is in such state or condition that its
value | 351 |
depends upon its content and not upon its form. "Investment metal | 352 |
bullion" does not include fabricated precious
metal that has been | 353 |
processed or manufactured for one or
more
specific and customary | 354 |
industrial, professional, or artistic
uses. "Investment coins" | 355 |
means numismatic coins or other forms
of money and legal tender | 356 |
manufactured of gold, silver, platinum,
palladium, or other metal | 357 |
under the laws of the United States or
any foreign nation with a | 358 |
fair market value greater than any
statutory or nominal value of | 359 |
such coins. | 360 |
(b) Sales to direct marketing vendors of preliminary | 366 |
materials such as photographs, artwork, and typesetting that will | 367 |
be used in printing advertising material; of printed matter that | 368 |
offers free merchandise or chances to win sweepstake prizes and | 369 |
that is mailed to potential customers with advertising material | 370 |
described in division (B)(36)(a) of this section; and of
equipment | 371 |
such as telephones, computers, facsimile machines, and
similar | 372 |
tangible personal property primarily used to accept
orders for | 373 |
direct marketing retail sales. | 374 |
For purposes of division (B)(36) of this section, "direct | 378 |
marketing" means the method of selling where consumers order | 379 |
tangible personal property by United States mail, delivery | 380 |
service, or telecommunication and the vendor delivers or ships
the | 381 |
tangible personal property sold to the consumer from a
warehouse, | 382 |
catalogue distribution center, or similar fulfillment
facility by | 383 |
means of the United States mail, delivery service, or
common | 384 |
carrier. | 385 |
(c) Items of property that are
attached to or incorporated | 404 |
in motor racing vehicles, including
engines, chassis, and all | 405 |
other components of the vehicles, and
all spare, replacement, and | 406 |
rebuilt parts or components of the
vehicles; except not including | 407 |
tires, consumable fluids, paint,
and accessories consisting of | 408 |
instrumentation sensors and
related items added to the vehicle to | 409 |
collect and transmit data
by means of telemetry and other forms of | 410 |
communication. | 411 |
(42) Sales of tangible personal property and services to
a | 415 |
provider of electricity used or consumed directly and primarily in | 416 |
generating, transmitting, or distributing electricity for use by | 417 |
others,
including property that is or is to be incorporated into | 418 |
and will become
a part of the consumer's production, transmission, | 419 |
or distribution
system and that retains its classification as | 420 |
tangible personal
property after incorporation; fuel or power used | 421 |
in the
production, transmission, or distribution of electricity; | 422 |
and
tangible personal property and services used in the repair and | 423 |
maintenance of the production, transmission, or distribution | 424 |
system, including only those motor vehicles as are specially | 425 |
designed and equipped for such use. The exemption provided in | 426 |
this division shall be in lieu of all other exceptions in division | 427 |
(E)(2) of section 5739.01 of the Revised Code to
which a provider | 428 |
of electricity may otherwise be entitled based on the use of the | 429 |
tangible
personal property or service purchased in generating, | 430 |
transmitting, or
distributing electricity. | 431 |
As used in this section, except in division (B)(16) of this | 436 |
section, "food" includes cereals and cereal products, milk and | 437 |
milk products including ice cream, meat and meat products, fish | 438 |
and fish products, eggs and egg products, vegetables and
vegetable | 439 |
products, fruits, fruit products, and pure fruit
juices, | 440 |
condiments, sugar and sugar products, coffee and coffee | 441 |
substitutes, tea, and cocoa and cocoa products. It does not | 442 |
include: spirituous or malt liquors; soft drinks; sodas and | 443 |
beverages that are ordinarily dispensed at bars and soda
fountains | 444 |
or in connection therewith, other than coffee, tea, and
cocoa; | 445 |
root beer and root beer extracts; malt and malt extracts;
mineral | 446 |
oils, cod liver oils, and halibut liver oil; medicines,
including | 447 |
tonics, vitamin preparations, and other products sold
primarily | 448 |
for their medicinal properties; and water, including
mineral, | 449 |
bottled, and carbonated waters, and ice. | 450 |
(1) A municipal corporation or township from levying an | 455 |
excise tax for any lawful purpose not to exceed three per cent on | 456 |
transactions by which lodging by a hotel is or is to be furnished | 457 |
to transient guests in addition to the tax levied by this
section. | 458 |
If a municipal corporation or township repeals a tax
imposed under | 459 |
division (C)(1) of this section and a county in
which the | 460 |
municipal corporation or township has territory has a
tax imposed | 461 |
under division (C) of section 5739.024 of the Revised
Code in | 462 |
effect, the municipal corporation or township may not
reimpose its | 463 |
tax as long as that county tax remains in effect. A
municipal | 464 |
corporation or township in which a tax is levied under
division | 465 |
(B)(2) of section 351.021 of the Revised Code may not
increase the | 466 |
rate of its tax levied under division (C)(1) of this
section to | 467 |
any rate that would cause the total taxes levied under
both of | 468 |
those divisions to exceed three per cent on any lodging | 469 |
transaction within the municipal corporation or township. | 470 |
Section 3. Section 5739.02 of the Revised Code is presented | 502 |
in this act
as a composite of the section as amended by
Am. Sub. | 503 |
H.B. 138, H.B. 612, and Am. Sub. H.B. 640 all of the 123rd General | 504 |
Assembly.
This is in recognition of the principle stated in | 505 |
division (B) of section
1.52 of the Revised Code that such | 506 |
amendments are to be
harmonized where not substantively | 507 |
irreconcilable and constitutes
a legislative finding that such is | 508 |
the resulting version in
effect prior to the effective date of | 509 |
this act. | 510 |