As Passed by the House

124th General Assembly
Regular Session
2001-2002
Am. Sub. S. B. No. 143


SENATORS Blessing, Amstutz, DiDonato, Mead, Spada, Finan, Harris

REPRESENTATIVES Kilbane, Kearns, Metzger, Schuring, Jones



A BILL
To amend sections 307.671, 307.672, 307.674, 307.695,1
311.37, 311.99, 351.01, 351.021, 351.03, 351.141,2
505.56, 3715.52, 4501.32, 5739.01, 5739.02,3
5739.024, 5739.03, 5739.033, 5739.31, 5739.99, and 4
5741.02; to amend, for the purpose of adopting a 5
new section number as indicated in parentheses, 6
section 5739.024 (5739.09); and to enact sections7
5739.034, 5739.08, 5740.01 to 5740.08, and 5747.083 8
of the Revised Code and to repeal Section 6 of Sub. 9
H.B. 483 of the 123rd General Assembly to enact the 10
Simplified Sales and Use Tax Administration Act, to 11
prohibit the Tax Commissioner from requiring 12
reporting or payment of certain use tax liability 13
as part of a taxpayer's personal income tax return, 14
and to make other changes to the sales and use tax 15
laws.16


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 307.671, 307.672, 307.674, 307.695,17
311.37, 311.99, 351.01, 351.021, 351.03, 351.141, 505.56, 3715.52,18
4501.32, 5739.01, 5739.02, 5739.024, 5739.03, 5739.033, 5739.31, 19
5739.99, and 5741.02 be amended, section 5739.024 (5739.09) be20
amended for the purpose of adopting a new section number as21
indicated in parentheses, and sections 5739.034, 5739.08, 5740.01, 22
5740.02, 5740.03, 5740.04, 5740.05, 5740.06, 5740.07, 5740.08, 23
and 5747.083 of the Revised Code be enacted to read as follows:24

       Sec. 307.671.  (A) As used in this section:25

       (1) "Bonds" means, as the context requires: general26
obligation bonds of the county, or notes in anticipation thereof,27
described in division (B)(1)(b) of this section; revenue bonds of28
the port authority described in division (B)(2)(a) of this29
section; and urban renewal bonds, or notes in anticipation30
thereof, of the host municipal corporation described in division31
(B)(3)(a) of this section.32

       (2) "Corporation" means a nonprofit corporation that is33
organized under the laws of this state and that includes within34
the purposes for which it is incorporated the authorization to35
lease and operate facilities such as a port authority educational36
and cultural facility.37

       (3) "Debt service charges" means, for any period or payable38
at any time, the principal of and interest and any premium due on39
bonds for that period or payable at that time whether due at40
maturity or upon mandatory redemption, together with any required41
deposits to reserves for the payment of principal of and interest42
on such bonds, and includes any payments required by the port43
authority to satisfy any of its obligations arising from any44
guaranty agreements, reimbursement agreements, or other credit45
enhancement agreements described in division (C) of this section.46

       (4) "Host municipal corporation" means the municipal47
corporation within the boundaries of which the port authority48
educational and cultural facility is located.49

       (5) "Port authority" means a port authority created pursuant50
to the authority of section 4582.02 of the Revised Code by a51
county and a host municipal corporation.52

       (6) "Port authority educational and cultural facility" means53
a facility located within an urban renewal area that may consist54
of a museum, archives, library, hall of fame, center for55
contemporary music, or other facilities necessary to provide56
programs of an educational and cultural nature, together with all57
parking facilities, walkways, and other auxiliary facilities, real58
and personal property, property rights, easements, and interests59
that may be appropriate for, or used in connection with, the60
operation of the facility.61

       (7) "Urban renewal area" means an area of a host municipal62
corporation that the legislative authority of the host municipal63
corporation has designated as appropriate for an urban renewal64
project pursuant to Chapter 725. of the Revised Code.65

       (B) The board of county commissioners of a county, a port66
authority, and a host municipal corporation may enter into a67
cooperative agreement with a corporation, under which:68

       (1) The board of county commissioners agrees to do all of69
the following:70

       (a) Levy a tax under division (D) of section 5739.02471
5739.09 of the Revised Code exclusively for the purposes described72
in divisions (B)(1)(c) and (d) of this section;73

       (b) Issue general obligation bonds of the county, or notes74
in anticipation thereof, pursuant to Chapter 133. of the Revised75
Code, for the purpose of acquiring, constructing, and equipping76
the port authority educational and cultural facility and77
contribute the proceeds from the issuance to the port authority78
for such purpose. The cooperative agreement may provide that such79
proceeds be deposited with and administered by the trustee80
pursuant to the trust agreement provided for in division (C) of81
this section.82

       (c) Following the issuance, sale, and delivery of the port83
authority revenue bonds provided for in division (B)(2)(a) of this84
section, and prior to the date certain stated in the cooperative85
agreement which shall be the date estimated for the completion of86
construction of the port authority educational and cultural87
facility, pledge and contribute to the port authority revenue from88
the tax levied pursuant to division (B)(1)(a) of this section,89
together with any investment earnings on that revenue, to pay a90
portion of the costs of acquiring, constructing, and equipping the91
port authority educational and cultural facility;92

       (d) Following such date certain, pledge and contribute to93
the corporation all or such portion as provided for in the94
cooperative agreement of the revenue from the tax, together with95
any investment earnings on that revenue, to pay a portion of the96
costs of the corporation of leasing the port authority educational97
and cultural facility from the port authority.98

       (2) The port authority agrees to do all of the following:99

       (a) Issue revenue bonds of the port authority pursuant to100
Chapter 4582. of the Revised Code for the purpose of acquiring,101
constructing, and equipping the port authority educational and102
cultural facility;103

       (b) Construct the port authority educational and cultural104
facility;105

       (c) Lease the port authority educational and cultural106
facility to the corporation;107

       (d) To the extent provided for in the cooperative agreement108
or the lease to the corporation, authorize the corporation to109
administer on behalf of the port authority the contracts for110
acquiring, constructing, or equipping a port authority educational111
and cultural facility;112

       (e) Use the revenue derived from the lease of the port113
authority educational and cultural facility to the corporation114
solely to pay debt service charges on the revenue bonds of the115
port authority described in division (B)(2)(a) of this section.116

       (3) The host municipal corporation agrees to do both of the117
following:118

       (a) Issue urban renewal bonds of the host municipal119
corporation, or notes in anticipation thereof, pursuant to Chapter120
725. of the Revised Code for the purpose of acquiring and121
constructing the port authority educational and cultural facility122
and contribute the proceeds from the issuance to the port123
authority for such purpose. The cooperative agreement may provide124
that such proceeds be deposited with and administered by the125
trustee pursuant to the trust agreement provided for in division126
(C) of this section.127

       (b) To the extent provided for in the cooperative agreement,128
contribute to the county, for use by the county to pay debt129
service charges on the bonds of the county, or notes in130
anticipation thereof, described in division (B)(1)(b) of this131
section, any excess urban renewal service payments pledged by the132
host municipal corporation to the urban renewal bonds described in133
division (B)(3)(a) of this section and not required on an annual134
basis to pay debt service charges on the urban renewal bonds.135

       (4) The corporation agrees to do all of the following:136

       (a) Lease the port authority educational and cultural137
facility from the port authority;138

       (b) Operate and maintain the port authority educational and139
cultural facility pursuant to the lease;140

       (c) To the extent provided for in the cooperative agreement141
or the lease from the port authority, administer on behalf of the142
port authority the contracts for acquiring, constructing, or143
equipping a port authority educational and cultural facility.144

       (C) The pledges and contributions described in divisions145
(B)(1)(c) and (d) of this section and provided for in the146
cooperative agreement shall be for the period stated in the147
cooperative agreement, but shall not be in excess of the period148
necessary to provide for the final retirement of the port149
authority revenue bonds provided for in division (B)(2)(a) of this150
section and any bonds issued by the port authority to refund such151
bonds, and for the satisfaction by the port authority of any of152
its obligations arising from any guaranty agreements,153
reimbursement agreements, or other credit enhancement agreements154
relating to such bonds or to the revenues pledged to such bonds.155
The cooperative agreement shall provide for the termination of the156
cooperative agreement including the pledges and contributions157
described in divisions (B)(1)(c) and (d) of this section if the158
port authority revenue bonds provided for in division (B)(2)(a) of159
this section have not been issued, sold, and delivered within two160
years of the effective date of the cooperative agreement.161

       The cooperative agreement shall provide that any revenue162
bonds of the port authority shall be secured by a trust agreement163
between the port authority and a corporate trustee that is a trust164
company or bank having the powers of a trust company within or165
outside the state. The county may be a party to such trust166
agreement for the purpose of securing the pledge by the county of167
its contribution to the corporation pursuant to division (B)(1)(d)168
of this section. A tax levied pursuant to division (B)(1)(a) of169
this section is not subject to diminution by initiative or170
referendum or diminution by statute, unless provision is made171
therein for an adequate substitute therefor reasonably172
satisfactory to the trustee under the trust agreement that secures173
the revenue bonds of the port authority.174

       (D) A pledge of money by a county under this section shall175
not be net indebtedness of the county for purposes of section176
133.07 of the Revised Code.177

       (E) If the terms of the cooperative agreement so provide,178
any contract for the acquisition, construction, or equipping of a179
port authority educational and cultural facility shall be made in180
such manner as is determined by the board of directors of the port181
authority, and unless the cooperative agreement provides182
otherwise, such a contract is not subject to division (A) of183
section 4582.12 of the Revised Code. The port authority may take184
the assignment of and assume any contracts for the acquisition,185
construction, and equipping of a port authority educational and186
cultural facility that previously have been authorized by either187
or both the host municipal corporation or the corporation. Such188
contracts likewise are not subject to division (A) of section189
4582.12 of the Revised Code.190

       Any contract for the acquisition, construction, or equipping191
of a port authority educational and cultural facility entered192
into, assigned, or assumed pursuant to this division shall provide193
that all laborers and mechanics employed for the acquisition,194
construction, or equipping of the port authority educational and195
cultural facility shall be paid at the prevailing rates of wages196
of laborers and mechanics for the class of work called for by the197
port authority educational and cultural facility, which wages198
shall be determined in accordance with the requirements of Chapter199
4115. of the Revised Code for the determination of prevailing wage200
rates.201

       Sec. 307.672.  (A) As used in this section:202

       (1) "Bonds" means general obligation bonds, or notes in203
anticipation thereof, of the county described in division204
(B)(1)(b) of this section, and general obligation bonds, or notes205
in anticipation thereof, of the host municipal corporation206
described in division (B)(2)(a) of this section.207

       (2) "Corporation" means a nonprofit corporation that is208
organized under the laws of this state and that includes within209
the purposes for which it is incorporated the authorization to210
lease and operate facilities such as a municipal educational and211
cultural facility.212

       (3) "Debt service charges" means, for any period or payable213
at any time, the principal of and interest and any premium due on214
bonds for that period or payable at that time whether due at215
maturity or upon mandatory redemption, together with any required216
deposits to reserves for the payment of principal of and interest217
on such bonds.218

       (4) "Host municipal corporation" means the municipal219
corporation within the boundaries of which a municipal educational220
and cultural facility is or will be located.221

       (5) "Municipal educational and cultural facility" means a222
facility that may consist of a museum, archives, library, hall of223
fame, center for contemporary music, or other facilities necessary224
to provide programs of an educational, recreational, and cultural225
nature, together with all parking facilities, walkways, and other226
auxiliary facilities, real and personal property, property rights,227
easements, and interests that may be appropriate for, or used in228
connection with, the operation of the facility.229

       (B) The legislative authorities of a county and a host230
municipal corporation may enter into a cooperative agreement with231
a corporation, under which:232

       (1) The legislative authority of the county agrees to:233

       (a) Levy a tax under division (E) of section 5739.024234
5739.09 of the Revised Code for a period not to exceed fifteen235
years to pay the costs of acquiring, constructing, equipping, and236
improving a municipal educational and cultural facility, including237
the debt service charges on bonds;238

       (b) Issue bonds of the county pursuant to Chapter 133. of239
the Revised Code for the purpose of acquiring, constructing,240
equipping, and improving a municipal educational and cultural241
facility;242

       (c) Contribute revenue from the tax and the proceeds from243
the bonds described in divisions (B)(1)(a) and (b) of this section244
to the host municipal corporation for the purpose of acquiring,245
constructing, equipping, and improving a municipal educational and246
cultural facility;247

       (2) The host municipal corporation agrees to:248

       (a) Issue bonds of the host municipal corporation pursuant249
to Chapter 133. of the Revised Code for the purpose of acquiring,250
constructing, equipping, and improving a municipal educational and251
cultural facility;252

       (b) Acquire, construct, equip, and improve a municipal253
educational and cultural facility;254

       (c) Accept from the county pursuant to the cooperative255
agreement the revenues of the tax and the proceeds of the bonds256
described in divisions (B)(1)(a) and (b) of this section;257

       (d) Lease a municipal educational and cultural facility to258
the corporation, or contract with the corporation for the259
operation and maintenance of the facility;260

       (e) To the extent provided for in the cooperative agreement261
or the lease or contract with the corporation, authorize the262
corporation to administer on behalf of the host municipal263
corporation the contracts for acquiring, constructing, equipping,264
and improving a municipal educational and cultural facility.265

       (3) The corporation agrees to:266

       (a) Either lease the municipal educational and cultural267
facility from the host municipal corporation and operate and268
maintain the facility pursuant to the lease, or enter into a269
contract with the host municipal corporation pursuant to which the270
corporation shall operate and maintain the facility on behalf of271
the host municipal corporation;272

       (b) To the extent provided for in the cooperative agreement273
or the lease or contract with the host municipal corporation,274
administer on behalf of the host municipal corporation the275
contracts for acquiring, constructing, equipping, or improving a276
municipal educational and cultural facility.277

       (C) A tax levied pursuant to division (E) of section278
5739.0245739.09 of the Revised Code, the revenue from which is to279
be used to pay debt service charges on bonds described in division280
(B)(1) or (2) of this section is not subject to diminution by281
initiative or referendum or diminution by statute, unless282
provision is made therein for an adequate substitute therefor283
reasonably satisfactory to the legislative authorities of the host284
municipal corporation and the county.285

       (D) The legislative authorities of a county and a host286
municipal corporation that have entered into a cooperative287
agreement with a corporation pursuant to division (B) of this288
section may amend that cooperative agreement, with the289
participation of the corporation and a port authority as defined290
in section 307.674 of the Revised Code, to provide also for a port291
authority educational and cultural performing arts facility in292
accordance with section 307.674 of the Revised Code. Such an293
amendment shall become effective only to the extent that the tax294
levied under division (E) of section 5739.0245739.09 of the295
Revised Code is not needed for the duration of the original tax to296
pay costs of the municipal educational and cultural facility,297
including debt service charges on related bonds, as determined by298
the parties to the amendment. The tax may be pledged and paid by299
the parties to the amendment for the balance of the duration of300
the tax to a port authority educational and cultural performing301
arts facility.302

       Sec. 307.674.  (A) As used in this section:303

       (1) "Bonds" means:304

       (a) Revenue bonds of the port authority described in305
division (B)(2)(a) of this section;306

       (b) Securities as defined in division (KK) of section 133.01307
of the Revised Code issued by the host municipal corporation,308
described in division (B)(3)(a) of this section;309

       (c) Any bonds issued to refund any of those revenue bonds or310
securities.311

       (2) "Corporation" means a nonprofit corporation that is312
organized under the laws of this state and that includes within313
the purposes for which it is incorporated the authorization to314
lease and operate facilities such as a port authority educational315
and cultural performing arts facility.316

       (3) "Cost," as applied to a port authority educational and317
cultural performing arts facility, means the cost of acquiring,318
constructing, renovating, rehabilitating, equipping, or improving319
the facility, or any combination of those purposes, collectively320
referred to in this section as "construction," and the cost of321
acquisition of all land, rights of way, property rights,322
easements, franchise rights, and interests required for those323
purposes, the cost of demolishing or removing any buildings or324
structures on land so acquired, including the cost of acquiring325
any land to which those buildings or structures may be moved, the326
cost of public utility and common carrier relocation or327
duplication, the cost of all machinery, furnishings, and328
equipment, financing charges, interest prior to and during329
construction and for not more than three years after completion of330
construction, costs arising under guaranty agreements,331
reimbursement agreements, or other credit enhancement agreements332
relating to bonds, engineering, expenses of research and333
development with respect to such facility, legal expenses, plans,334
specifications, surveys, studies, estimates of costs and revenues,335
other expenses necessary or incident to determining the336
feasibility or practicability of acquiring or constructing the337
facility, administrative expense, and other expenses as may be338
necessary or incident to that acquisition or construction and the339
financing of such acquisition or construction, including, with340
respect to the revenue bonds of a port authority, amounts to be341
paid into any special funds from the proceeds of those bonds, and342
repayments to the port authority, host county, host municipal343
corporation, or corporation of any amounts advanced for the344
foregoing purposes.345

       (4) "Debt service charges" means, for any period or payable346
at any time, the principal of and interest and any premium due on347
bonds for that period or payable at that time whether due at348
maturity or upon mandatory redemption, together with any required349
deposits to reserves for the payment of principal of and interest350
on those bonds, and includes any payments required by the port351
authority to satisfy any of its obligations under or arising from352
any guaranty agreements, reimbursement agreements, or other credit353
enhancement agreements described in division (C) of this section.354

       (5) "Host county" means the county within the boundaries of355
which the port authority educational and cultural performing arts356
facility is or will be located.357

       (6) "Host municipal corporation" means the municipal358
corporation within the boundaries of which the port authority359
educational and cultural performing arts facility is or will be360
located.361

       (7) "Port authority" means a port authority created pursuant362
to section 4582.22 of the Revised Code.363

       (8) "Port authority educational and cultural performing arts364
facility" means a facility that consists of a center for music or365
other performing arts, a theater or other facilities to provide366
programs of an educational, recreational, or cultural nature, or367
any combination of those purposes as determined by the parties to368
the cooperative agreement for which provision is made in division369
(B) of this section to fulfill the public educational,370
recreational, and cultural purposes set forth therein, together371
with all parking facilities, walkways, and other auxiliary372
facilities, real and personal property, property rights,373
easements, and interests that may be appropriate for, or used in374
connection with, the operation of the facility.375

       (B) A host county, a host municipal corporation, and a port376
authority may enter into a cooperative agreement with a377
corporation under which, as further provided for in that378
agreement:379

       (1) The host county may agree to do any or all of the380
following:381

       (a) Levy and collect a tax under division (E) and division382
(F) of section 5739.0245739.09 of the Revised Code for the383
purposes, and in an amount sufficient for those purposes,384
described in divisions (B)(1)(b) and (c) of this section;385

       (b) Pay to the port authority all or such portion as386
provided for in the cooperative agreement of the revenue from the387
tax, together with any investment earnings on that revenue, to be388
used to pay a portion of the costs of acquiring, constructing,389
renovating, rehabilitating, equipping, or improving the port390
authority educational and cultural performing arts facility;391

       (c) Pledge and pay to the corporation all or such portion as392
provided for in the cooperative agreement of the revenue from the393
tax, together with any investment earnings on that revenue, to be394
used to pay a portion of the costs to the corporation of leasing395
the port authority educational and cultural performing arts396
facility from the port authority.397

       (2) The port authority may agree to do any or all of the398
following:399

       (a) Issue its revenue bonds pursuant to section 4582.48 of400
the Revised Code for the purpose of paying all or a portion of the401
costs of the port authority educational and cultural performing402
arts facility;403

       (b) Acquire, construct, renovate, rehabilitate, equip, and404
improve the port authority educational and cultural performing405
arts facility;406

       (c) Lease the port authority educational and cultural407
performing arts facility to the corporation;408

       (d) To the extent provided for in the cooperative agreement409
or the lease to the corporation, authorize the corporation to410
administer on behalf of the port authority the contracts for411
acquiring, constructing, renovating, rehabilitating, or equipping412
the port authority educational and cultural performing arts413
facility;414

       (e) Use the revenue derived from the lease of the port415
authority educational and cultural performing arts facility to the416
corporation solely to pay debt service charges on revenue bonds of417
the port authority issued pursuant to division (B)(2)(a) of this418
section and to pay its obligations under or arising from any419
guaranty agreements, reimbursement agreements, or other credit420
enhancement agreements provided for in this section.421

       (3) The host municipal corporation may agree to do either or422
both of the following:423

       (a) Issue its bonds for the purpose of paying all or a424
portion of the costs of the port authority educational and425
cultural performing arts facility, and pay the proceeds from the426
issuance to the port authority for that purpose;427

       (b) Enter into a guaranty agreement, a reimbursement428
agreement, or other credit enhancement agreement with the port429
authority to provide a guaranty or other credit enhancement of the430
port authority revenue bonds referred to in division (B)(2)(a) of431
this section pledging taxes, other than ad valorem property taxes,432
or other revenues for the purpose of providing the funds required433
to satisfy the host municipal corporation's obligations under that434
agreement.435

       The cooperative agreement may provide that the proceeds of436
such securities or of such guaranty agreement, reimbursement437
agreement, or other credit enhancement agreement be deposited with438
and administered by the trustee pursuant to the trust agreement439
authorized in division (C) of this section.440

       (4) The corporation may agree to do any or all of the441
following:442

       (a) Lease the port authority educational and cultural443
performing arts facility from the port authority;444

       (b) Operate and maintain the port authority educational and445
cultural performing arts facility pursuant to the lease;446

       (c) To the extent provided for in the cooperative agreement447
or the lease from the port authority, administer on behalf of the448
port authority the contracts for acquiring, constructing,449
renovating, rehabilitating, or equipping the port authority450
educational and cultural performing arts facility.451

       (C) The pledge and payments referred to in divisions452
(B)(1)(b) and (c) of this section and provided for in the453
cooperative agreement shall be for the period stated in the454
cooperative agreement but shall not extend longer than the period455
necessary to provide for the final retirement of the port456
authority revenue bonds referred to in division (B)(2)(a) of this457
section, and for the satisfaction by the port authority of any of458
its obligations under or arising from any guaranty agreements,459
reimbursement agreements, or other credit enhancement agreements460
relating to those bonds or to the revenues pledged to them. The461
cooperative agreement shall provide for the termination of the462
cooperative agreement, including the pledge and payment referred463
to in division (B)(1)(c) of this section, if the port authority464
revenue bonds referred to in division (B)(2)(a) of this section465
have not been issued, sold, and delivered within five years of the466
effective date of the cooperative agreement.467

       The cooperative agreement shall provide that any port468
authority revenue bonds shall be secured by a trust agreement469
between the port authority and a corporate trustee that is a trust470
company or bank having the powers of a trust company within or471
outside the state but authorized to exercise trust powers within472
the state. The host county may be a party to that trust agreement473
for the purpose of better securing the pledge by the host county474
of its payment to the corporation pursuant to division (B)(1)(c)475
of this section. A tax levied pursuant to section 5739.024476
5739.09 of the Revised Code for the purposes specified in division477
(B)(1)(b) or (c) of this section is not subject to diminution by478
initiative or referendum or diminution by statute, unless479
provision is made for an adequate substitute reasonably480
satisfactory to the trustee under the trust agreement that secures481
the port authority revenue bonds.482

       (D) A pledge of money by a host county under this section483
shall not be net indebtedness of the host county for purposes of484
section 133.07 of the Revised Code. A guaranty or other credit485
enhancement by a host municipal corporation under this section486
shall not be net indebtedness of the host municipal corporation487
for purposes of section 133.05 of the Revised Code.488

       (E) If the terms of the cooperative agreement so provide,489
any contract for the acquisition, construction, renovation,490
rehabilitation, equipping, or improving of a port authority491
educational and cultural performing arts facility shall be made in492
such manner as is determined by the board of directors of the port493
authority, and unless the cooperative agreement provides494
otherwise, such a contract is not subject to division (R)(2) of495
section 4582.31 of the Revised Code. The port authority may take496
the assignment of and assume any contracts for the acquisition,497
construction, renovation, rehabilitation, equipping, or improving498
of a port authority educational and cultural performing arts499
facility that had previously been authorized by any of the host500
county, the host municipality, or the corporation. Such contracts501
are not subject to division (R)(2) of section 4582.31 of the502
Revised Code.503

       Any contract for the acquisition, construction, renovation,504
rehabilitation, equipping, or improving of a port authority505
educational and cultural performing arts facility entered into,506
assigned, or assumed pursuant to this division shall provide that507
all laborers and mechanics employed for the acquisition,508
construction, renovation, rehabilitation, equipping, or improving509
of that facility shall be paid at the prevailing rates of wages of510
laborers and mechanics for the class of work called for by the511
port authority educational and cultural performing arts facility,512
which wages shall be determined in accordance with the513
requirements of Chapter 4115. of the Revised Code for the514
determination of prevailing wage rates.515

       Notwithstanding any provisions to the contrary in section516
3383.07 of the Revised Code, construction services and general517
building services for a port authority educational and cultural518
performing arts facility funded completely or in part with money519
appropriated by the state to the Ohio arts and sports facilities520
commission may be provided by a port authority or a corporation521
that occupies, will occupy, or is responsible for that facility,522
as determined by the commission. The construction services and523
general building services to be provided by the port authority or524
the corporation shall be specified in an agreement between the525
commission and the port authority or corporation. That agreement,526
or any actions taken under it, are not subject to Chapters 123. or527
153. of the Revised Code, but are subject to Chapter 4115. of the528
Revised Code.529

       Sec. 307.695.  (A) As used in this section, "convention530
center" means any structure expressly designed and constructed for531
the purposes of presenting conventions, public meetings, and532
exhibitions and includes parking facilities that serve the center533
and any personal property used in connection with any such534
structure or facilities.535

       (B) A board of county commissioners may enter into an536
agreement with a convention and visitors' bureau operating in the537
county under which:538

       (1) The bureau agrees to construct and equip a convention539
center in the county and to pledge and contribute from the tax540
revenues received by it under division (A) of section 5739.024541
5739.09 of the Revised Code, not more than such portion thereof542
that it is authorized to pledge and contribute for the purpose543
described in division (C) of this section; and544

       (2) The board agrees to levy a tax under division (C) of545
section 5739.0245739.09 of the Revised Code and pledge and546
contribute the revenues therefrom for the purpose described in547
division (C) of this section.548

       (C) The purpose of the pledges and contributions described549
in divisions (B)(1) and (2) of this section is payment of550
principal, interest, and premium, if any, on bonds and notes551
issued by or for the benefit of the bureau to finance the552
construction and equipping of a convention center. The pledges553
and contributions provided for in the agreement shall be for the554
period stated in the agreement, but not to exceed thirty years.555
Revenues determined from time to time by the board to be needed to556
cover the real and actual costs of administering the tax imposed557
by division (C) of section 5739.0245739.09 of the Revised Code558
may not be pledged or contributed. The agreement shall provide559
that any such bonds and notes shall be secured by a trust560
agreement between the bureau or other issuer acting for the561
benefit of the bureau and a corporate trustee that is a trust562
company or bank having the powers of a trust company within or563
without the state, and the trust agreement shall pledge or assign564
to the retirement of the bonds or notes, all moneys paid by the565
county under this section. A tax the revenues from which are566
pledged under an agreement entered into by a board of county567
commissioners under this section shall not be subject to568
diminution by initiative or referendum, or diminution by statute,569
unless provision is made therein for an adequate substitute570
therefor reasonably satisfactory to the trustee under the trust571
agreement that secures the bonds and notes.572

       (D) A pledge of money by a county under this section shall573
not be indebtedness of the county for purposes of Chapter 133. of574
the Revised Code.575

       (E) If the terms of the agreement so provide, the board of576
county commissioners may acquire and lease real property to the577
convention bureau as the site of the convention center. The lease578
shall be for a term not to exceed thirty years and shall be on579
such terms as are set forth in the agreement. The purchase and580
lease are not subject to the limitations of sections 307.02 and581
307.09 of the Revised Code.582

       Sec. 311.37.  (A) No transient vendor, as defined in section583
5739.17 of the Revised Code, who obtains a transient vendor's584
license pursuant to section 5739.17 of the Revised Code, intending585
to provide goods and services of a retail value of more than five586
hundred dollars, shall negligently fail to file with the county587
sheriff all of the following before doing business as a transient588
vendor anywhere in that county:589

       (1) Proof of the transient vendor's identity and proof that590
a transient vendor's license has been obtained in this state;591

       (2) A statement describing the goods or services to be592
provided by the transient vendor and an estimate of the amount of593
the goods or services that the vendor expects to sell in that594
county, as documented by invoices indicating the wholesale value595
of goods to be sold;596

       (3) The transient vendor's permanent business address;597

       (4) The times and days during which, and the temporary598
places of business, as defined in section 5739.17 of the Revised599
Code, at which the transient vendor plans to do business in that600
county.601

       (B) The sheriff shall maintain a record of the information602
required under division (A) of this section for a period of two603
years, which shall be open to the inspection of any person. The604
sheriff shall be allowed a fee of up to one hundred dollars for605
collection of the bond required by this section. The bond shall606
be fifty per cent of the wholesale value of the goods and services607
provided, but in no case shall the bond exceed ten thousand608
dollars. The bond shall be in a form approved by the attorney609
general. The bond shall remain in effect for two years after the610
transient vendor last does business in that county.611

       (C) No transient vendor, as defined in section 5739.17 of612
the Revised Code, intending to provide goods and services of a613
retail value of more than five hundred dollars, shall negligently614
fail to file a bond within ten days before doing business as a615
transient vendor anywhere in that county.616

       (D) The bond filed by any transient vendor pursuant to this617
section shall be given to the attorney general by the county618
sheriff within ten working days after a transient vendor ceases to619
do business in that county, and shall be in favor of the state for620
the benefit of any person who suffers loss or damage as a result621
of the purchase of goods from the transient vendor or as the622
result of the negligent or intentionally tortious acts of the623
transient vendor in the conduct of business in the county. The624
bond may be used to compensate any state or local agency for625
damages caused by the transient vendor, for costs incurred by the626
agency for the illegal acts of the transient vendor, or for627
failure to pay any amount owed by the transient vendor to the628
state or local agency. The bond also may be used to compensate629
the state for any sales tax not paid by the transient vendor.630
Except for the amount of unpaid sales taxes to be deducted from631
the bond, if any, the attorney general shall pay any portion of632
the bond to any person or agency in accordance with the order of a633
court without making an independent finding as to the amount of634
the bond that is payable to that person or agency.635

       (E) This section does not apply to any of the following:636

       (1) A limited vendor, as defined in section 5739.17 of the637
Revised Code, or a transient vendor making retail sales at a638
temporary exhibition, show, fair, world trade center, flea market,639
or similar event, as permitted by section 5739.17 of the Revised640
Code;641

       (2) Any nonprofit corporation, community chest, fund, or642
foundation organized and operated exclusively for religious,643
charitable, scientific, literary, or educational purposes when no644
part of the entity's earnings benefit any private shareholder or645
individual;646

       (3) Any person who operates a permanent business in this647
state, occupies temporary premises, and prominently displays the648
permanent business' name and permanent address while business is649
conducted from the temporary premises.650

       (4) Any person who sells goods by sample, brochure, or651
catalog for future delivery or any person who makes sales as the652
result of the invitation of an owner or occupant of a residence to653
the person.654

       (5) Any person who sells handmade or handcrafted items, or655
who sells fresh farm produce.656

       Nothing in this section shall prohibit the legislative657
authority of a municipal corporation from adopting an ordinance658
regulating transient vendors, as defined in section 5739.17 of the659
Revised Code, except that a municipal corporation may not require660
a transient vendor who obtains a bond in compliance with this661
section to obtain or pay for any additional bond or require that662
persons exempt pursuant to division (E) of this section obtain a663
bond. A municipal corporation may require that a transient vendor664
exhibit histhe transient vendor's license and any proof of bond665
required to such officer or employee of the municipal corporation666
as the municipal corporation designates by ordinance.667

       Sec. 311.99.  (A) Whoever violates section 311.13 of the668
Revised Code shall be fined not more than one thousand dollars and669
imprisoned in the county jail not less than thirty days or more670
than two years.671

       (B) Whoever violates division (A) or (C) of section 311.37672
of the Revised Code is guilty of failure to file a transient673
vendor's information or bond, a minor misdemeanor. If the674
offender previously has been convicted of a violation of division675
(A) of section 311.37 of the Revised Code, failure to file a676
transient vendor's information or bond is a misdemeanor of the677
second degree. If the offender previously has been convicted of678
two or more violations of division (A) of section 311.37 of the679
Revised Code, failure to file a transient vendor's information or680
bond is a misdemeanor of the first degree. A sheriff or police681
officer in a municipal corporation may enforce this division. The682
prosecuting attorney of a county shall inform the tax commissioner683
of any instance when a complaint is brought against a transient or684
limited vendor pursuant to this division.685

       Sec. 351.01.  As used in this chapter:686

       (A) "Convention facilities authority" means a body corporate687
and politic created pursuant to section 351.02 of the Revised688
Code.689

       (B) "Governmental agency" means a department, division, or690
other unit of the state government or of a municipal corporation,691
county, township, or other political subdivision of the state; any692
state university or college, as defined in section 3345.12 of the693
Revised Code, community college, state community college,694
university branch, or technical college; any other public695
corporation or agency having the power to acquire, construct, or696
operate facilities; the United States or any agency thereof; and697
any agency, commission, or authority established pursuant to an698
interstate compact or agreement.699

       (C) "Person" means any individual, firm, partnership,700
association, or corporation, or any combination of them.701

       (D) "Facility" or "facilities" means any convention,702
entertainment, or sports facility, or combination of them, located703
within the territory of the convention facilities authority,704
together with all parking facilities, walkways, and other705
auxiliary facilities, real and personal property, property rights,706
easements and interests that may be appropriate for, or used in707
connection with, the operation of the facility.708

       (E) "Cost" means the cost of acquisition of all land,709
rights-of-way, property rights, easements, franchise rights, and710
interests required for such acquisition; the cost of demolishing711
or removing any buildings or structures on land so acquired,712
including the cost of acquiring any lands to which such buildings713
or structures may be moved; the cost of acquiring or constructing714
and equipping a principal office of the convention facilities715
authority; the cost of diverting highways, interchange of716
highways, access roads to private property, including the cost of717
land or easements for such access roads; the cost of public718
utility and common carrier relocation or duplication; the cost of719
all machinery, furnishings, and equipment; financing charges;720
interest prior to and during construction and for no more than721
eighteen months after completion of construction; expenses of722
research and development with respect to facilities; legal723
expenses; expenses of obtaining plans, specifications, engineering724
surveys, studies, and estimates of cost and revenues; working725
capital; expenses necessary or incident to determining the726
feasibility or practicability of acquiring or constructing such727
facility; administrative expense; and such other expenses as may728
be necessary or incident to the acquisition or construction of the729
facility, the financing of such acquisition or construction,730
including the amount authorized in the resolution of the731
convention facilities authority providing for the issuance of732
convention facilities authority revenue bonds to be paid into any733
special funds from the proceeds of such bonds, the cost of issuing734
the bonds, and the financing of the placing of such facility in735
operation. Any obligation, cost, or expense incurred by any736
governmental agency or person for surveys, borings, preparation of737
plans and specifications, and other engineering services, or any738
other cost described above, in connection with the acquisition or739
construction of a facility may be regarded as part of the cost of740
such facility and may be reimbursed out of the proceeds of741
convention facilities authority revenue bonds as authorized by742
this chapter.743

       (F) "Owner" includes a person having any title or interest744
in any property, rights, easements, or interests authorized to be745
acquired by Chapter 351. of the Revised Code.746

       (G) "Revenues" means all rentals and other charges received747
by the convention facilities authority for the use or services of748
any facility, the sale of any merchandise, or the operation of any749
concessions; any gift or grant received with respect to any750
facility, any moneys received with respect to the lease, sublease,751
sale, including installment sale or conditional sale, or other752
disposition of a facility or part thereof; moneys received in753
repayment of and for interest on any loans made by the authority754
to a person or governmental agency, whether from the United States755
or any department, administration, or agency thereof, or756
otherwise; proceeds of convention facilities authority revenue757
bonds to the extent the use thereof for payment of principal or of758
premium, if any, or interest on the bonds is authorized by the759
authority; proceeds from any insurance, appropriation, or guaranty760
pertaining to a facility or property mortgaged to secure bonds or761
pertaining to the financing of the facility; income and profit762
from the investment of the proceeds of convention facilities763
authority revenue bonds or of any revenues; contributions of the764
proceeds of a tax levied pursuant to division (A)(3) of section765
5739.0245739.09 of the Revised Code; and moneys transmitted to766
the authority pursuant to division (B) of section 5739.211 and767
division (B) of section 5741.031 of the Revised Code.768

       (H) "Public roads" includes all public highways, roads, and769
streets in the state, whether maintained by the state, county,770
city, township, or other political subdivision.771

       (I) "Construction," unless the context indicates a different772
meaning or intent, includes, but is not limited to,773
reconstruction, enlargement, improvement, or providing fixtures,774
furnishings, and equipment.775

       (J) "Convention facilities authority revenue bonds" or776
"revenue bonds," unless the context indicates a different meaning777
or intent, includes convention facilities authority revenue notes,778
convention facilities authority revenue renewal notes, and779
convention facilities authority revenue refunding bonds.780

       (K) "Convention facilities authority tax anticipation bonds"781
or "tax anticipation bonds," unless the context indicates a782
different meaning, includes convention facilities authority tax783
anticipation bonds, tax anticipation notes, tax anticipation784
renewal notes, and tax anticipation refunding bonds.785

       (L) "Bonds and notes" means convention facilities authority786
revenue bonds and convention facilities authority tax anticipation787
bonds.788

       (M) "Territory of the authority" means all of the area of789
the county creating the convention facilities authority.790

       (N) "Excise taxes" means either or both of the taxes levied791
pursuant to division (B) of section 351.021 of the Revised Code.792
"Excise taxes" does not include taxes levied pursuant to section793
4301.424, 5743.026, or 5743.324 of the Revised Code.794

       (O) "Transaction" means the charge by a hotel for each795
occupancy by transient guests of a room or suite of rooms used in796
a hotel as a single unit for any period of twenty-four hours or797
less.798

       (P) "Hotel" and "transient guests" have the same meanings as799
in section 5739.01 of the Revised Code.800

       (Q) "Sports facility" means a facility intended to house801
major league professional athletic teams.802

       (R) "Constructing" or "construction" includes providing803
fixtures, furnishings, and equipment.804

       Sec. 351.021.  (A) The resolution of the county805
commissioners creating a convention facilities authority, or any806
amendment or supplement to that resolution, may authorize the807
authority to levy one or both of the excise taxes authorized by808
division (B) of this section to pay the cost of one or more809
facilities; to pay principal, interest, and premium on convention810
facilities authority tax anticipation bonds issued to pay those811
costs; to pay the operating costs of the authority; to pay812
operating and maintenance costs of those facilities; and to pay813
the costs of administering the excise tax.814

       (B) The board of directors of a convention facilities815
authority that has been authorized pursuant to resolution adopted,816
amended, or supplemented by the board of county commissioners817
pursuant to division (A) of this section may levy, by resolution818
adopted on or before December 31, 1988, either or both of the819
following:820

       (1) Within the territory of the authority, an additional821
excise tax not to exceed four per cent on each transaction. The822
excise tax authorized by division (B)(1) of this section shall be823
in addition to any excise tax levied pursuant to division (C) of824
section 5739.02, section 5739.0245739.08 or 5739.09 of the825
Revised Code, or division (B)(2) of this section.826

       (2) Within that portion of any municipal corporation that is827
located within the territory of the authority or within the828
boundaries of any township that is located within the territory of829
the authority, which municipal corporation or township is levying830
any portion of the excise tax authorized by division (C)(1)(A) of831
section 5739.025739.08 of the Revised Code, and with the832
approval, by ordinance or resolution, of the legislative authority833
of that municipal corporation or township, an additional excise834
tax not to exceed nine-tenths of one per cent on each transaction.835
The excise tax authorized by division (B)(2) of this section may836
be levied only if, on the effective date of the levy specified in837
the resolution making the levy, the amount being levied pursuant838
to division (C)(1)(A) of section 5739.025739.08 of the Revised839
Code by each municipal corporation or township in which the tax840
authorized by division (B)(2) of this section will be levied, when841
added to the amount levied under division (B)(2) of this section,842
does not exceed three per cent on each transaction. The excise843
tax authorized by division (B)(2) of this section shall be in844
addition to any excise tax that is levied pursuant to division (C)845
of section 5739.02 of the Revised Code, section 5739.0245739.08846
or 5739.09 of the Revised Code, or division (B)(1) of this847
section.848

       (C) The authority shall provide for the administration and849
allocation of the excise taxes levied pursuant to division (B) of850
this section. All receipts arising from those excise taxes shall851
be expended for the purposes provided in, and in accordance with852
this section and section 351.141 of the Revised Code. An excise853
tax levied under division (B) of this section shall remain in854
effect at the rate at which it is levied for at least the duration855
of the period for which the receipts from the tax have been856
anticipated and pledged pursuant to section 351.141 of the Revised857
Code.858

       (D) Except as provided in division (B)(2) of this section,859
the levy of an excise tax on each transaction pursuant to division860
(C) of section 5739.02 of the Revised Code and section 5739.024861
sections 5739.08 and 5739.09 of the Revised Code does not prevent862
a convention facilities authority from levying the excise taxes863
pursuant to division (B) of this section.864

       Sec. 351.03.  (A) Except as provided in division (A)(3) of865
section 5739.0245739.09 or in section 5739.026 of the Revised866
Code, no county creating a convention facilities authority may867
appropriate and expend public funds to finance or subsidize the868
operation of the authority.869

       (B) Subject to making due provisions for payment and870
performance of its obligations, a convention facilities authority871
may be dissolved by the county creating it. In such event the872
properties of the authority shall be transferred to the county873
creating it, and the county may thereupon appropriate and expend874
public funds to finance or subsidize the operation of such875
facilities.876

       Sec. 351.141.  A convention facilities authority that levies877
one or both of the excise taxes authorized by division (B) of878
section 351.021 of the Revised Code or that receives contributions879
pursuant to division (A)(3) of section 5739.0245739.09 of the880
Revised Code, by resolution may anticipate the proceeds of the881
levy and issue convention facilities authority tax anticipation882
bonds, and notes anticipating the proceeds or the bonds, in the883
principal amount that, in the opinion of the authority, are884
necessary for the purpose of paying the cost of one or more885
facilities or parts of one or more facilities, and as able, with886
the interest on them, be paid over the term of the issue, or in887
the case of notes anticipating bonds over the term of the bonds,888
by the estimated amount of the excise taxes or contributions889
anticipated thereby. The excise taxes or contributions are890
determined by the general assembly to satisfy any applicable891
requirement of Section 11 of Article XII, Ohio Constitution. An892
authority, at any time, may issue renewal tax anticipation notes,893
issue tax anticipation bonds to pay such notes, and, whenever it894
considers refunding expedient, refund any tax anticipation bonds895
by the issuance of tax anticipation refunding bonds whether the896
bonds to be refunded have or have not matured, and issue tax897
anticipation bonds partly to refund bonds then outstanding and898
partly for any other authorized purpose. The refunding bonds899
shall be sold and the proceeds needed for such purpose applied in900
the manner provided in the bond proceedings to the purchase,901
redemption, or payment of the bonds to be refunded.902

       Every issue of outstanding tax anticipation bonds shall be903
payable out of the proceeds of the excise taxes or contributions904
anticipated and other revenues of the authority that are pledged905
for such payment. The pledge shall be valid and binding from the906
time the pledge is made, and the anticipated excise taxes,907
contributions, and revenues so pledged and thereafter received by908
the authority immediately shall be subject to the lien of that909
pledge without any physical delivery of those excise taxes,910
contributions, and revenues or further act. The lien of any911
pledge is valid and binding as against all parties having claims912
of any kind in tort, contract, or otherwise against the authority,913
whether or not such parties have notice of the lien. Neither the914
resolution nor any trust agreement by which a pledge is created915
need be filed or recorded except in the authority's records.916

       Whether or not the bonds or notes are of such form and917
character as to be negotiable instruments under Title XIII of the918
Revised Code, the bonds or notes shall have all the qualities and919
incidents of negotiable instruments, subject only to their920
provisions for registration, if any.921

       The tax anticipation bonds shall bear such date or dates, and922
shall mature at such time or times, in the case of any such notes923
or any renewals of such notes not exceeding twenty years from the924
date of issue of such original notes and in the case of any such925
bonds or any refunding bonds not exceeding forty years from the926
date of the original issue of notes or bonds for the purpose, and927
shall be executed in the manner that the resolution authorizing928
the bonds may provide. The tax anticipation bonds shall bear929
interest at such rates, or at variable rate or rates changing from930
time to time, in accordance with provisions provided in the931
authorizing resolution, be in such denominations and form, either932
coupon or registered, carry such registration privileges, be933
payable in such medium of payment and at such place or places, and934
be subject to such terms of redemption, as the authority may935
authorize or provide. The tax anticipation bonds may be sold at936
public or private sale, and at, or at not less than the price or937
prices as the authority determines. If any officer whose938
signature or a facsimile of whose signature appears on any bonds939
or coupons ceases to be such officer before delivery of the bonds,940
the signature or facsimile shall nevertheless be sufficient for941
all purposes as if the officer had remained in office until942
delivery of the bonds, and in case the seal of the authority has943
been changed after a facsimile has been imprinted on the bonds,944
the facsimile seal will continue to be sufficient for all945
purposes.946

       Any resolution or resolutions authorizing any tax947
anticipation bonds or any issue of tax anticipation bonds may948
contain provisions, subject to any agreements with bondholders as949
may then exist, which provisions shall be a part of the contract950
with the holders of the bonds, as to the pledging of any or all of951
the authority's anticipated excise taxes, contributions, and952
revenues to secure the payment of the bonds or of any issue of the953
bonds; the use and disposition of revenues of the authority; the954
crediting of the proceeds of the sale of bonds to and among the955
funds referred to or provided for in the resolution; limitations956
on the purpose to which the proceeds of sale of the bonds may be957
applied and the pledging of portions of such proceeds to secure958
the payment of the bonds or of any issue of the bonds; as to notes959
issued in anticipation of the issuance of bonds, the agreement of960
the authority to do all things necessary for the authorization,961
issuance, and sale of such bonds in such amounts as may be962
necessary for the timely retirement of such notes; limitations on963
the issuance of additional bonds; the terms upon which additional964
bonds may be issued and secured; the refunding of outstanding965
bonds; the procedure, if any, by which the terms of any contract966
with bondholders may be amended, the amount of bonds the holders967
of which must consent thereto, and the manner in which such968
consent may be given; securing any bonds by a trust agreement in969
accordance with section 351.16 of the Revised Code; any other970
matters, of like or different character, that in any way affect971
the security or protection of the bonds. The excise taxes972
anticipated by the bonds, including bonds anticipated by notes,973
shall not be subject to diminution by initiative or referendum or974
by law while the bonds or notes remain outstanding in accordance975
with their terms, unless provision is made by law or by the976
authority for an adequate substitute therefor reasonably977
satisfactory to the trustee, if a trust agreement secures the978
bonds.979

       Neither the members of the board of directors of the980
authority nor any person executing the bonds shall be liable981
personally on the bonds or be subject to any personal liability or982
accountability by reason of the issuance thereof.983

       Sec. 505.56.  Subject to the limitation in division (C)(1)(A)984
of section 5739.025739.08 of the Revised Code, a board of985
township trustees may by resolution adopted by a majority of the986
members of the board, levy an excise tax on transactions by which987
lodging by a hotel is or is to be furnished to transient guests.988
The board may establish all regulations necessary to provide for989
the administration and allocation of the tax. All funds arising990
from such an excise tax shall be deposited in the township991
treasury and may be expended for any lawful purpose. A board of992
township trustees shall not levy the tax authorized by this993
section in any city or village.994

       As used in this section, "hotel" and "transient guests" have995
the same meaning as in section 5739.01 of the Revised Code.996

       Sec. 3715.52.  (A) The following acts and causing them are997
prohibited:998

       (1) The manufacture, sale, or delivery, holding or offering999
for sale of any food, drug, device, or cosmetic that is1000
adulterated or misbranded;1001

       (2) The adulteration or misbranding of any food, drug,1002
device, or cosmetic;1003

       (3) The receipt in commerce of any food, drug, device, or1004
cosmetic that is adulterated or misbranded, and the delivery or1005
proffered delivery thereof for pay or otherwise;1006

       (4) The sale, delivery for sale, holding for sale, or1007
offering for sale of any article in violation of section 3715.611008
or 3715.65 of the Revised Code;1009

       (5) The dissemination of any false advertisement;1010

       (6) The refusal to permit entry or inspection, or to permit1011
the taking of a sample, as authorized by section 3715.70 of the1012
Revised Code;1013

       (7) The giving of a guaranty or undertaking that is false,1014
except by a person who relied on a guaranty or undertaking to the1015
same effect signed by, and containing the name and address of the1016
person residing in this state from whom the person received in1017
good faith the food, drug, device, or cosmetic;1018

       (8) The removal or disposal of a detained or embargoed1019
article in violation of section 3715.55 or 3715.551 of the Revised1020
Code;1021

       (9) The alteration, mutilation, destruction, obliteration,1022
or removal of the whole or any part of the labeling of, or the1023
doing of any other act with respect to a food, drug, device, or1024
cosmetic, if the act is done while the article is held for sale1025
and results in the article being misbranded;1026

       (10) Forging, counterfeiting, simulating, or falsely1027
representing, or without proper authority using any mark, stamp,1028
tag, label, or other identification device authorized or required1029
by rules adopted pursuant to sections 3715.52 to 3715.72 of the1030
Revised Code;1031

       (11) The using, on the labeling of any drug or in any1032
advertisement relating to a drug, of any representation or1033
suggestion that any application with respect to the drug is1034
effective under section 3715.65 of the Revised Code or that the1035
drug complies with the provisions of that section;1036

       (12) The using by any person to the person's own advantage,1037
or revealing, other than to the director of agriculture or to the1038
courts when relevant in any judicial proceeding under sections1039
3715.52 to 3715.72 of the Revised Code, any information acquired1040
under authority of sections 3715.01 and 3715.52 to 3715.72 of the1041
Revised Code, concerning any information that as a trade secret is1042
entitled to protection;1043

       (13) The issuance by the manufacturer, packer, or1044
distributor of a dangerous drug of any advertisements, catalogues,1045
or price lists, except those lists specifically designed for1046
disseminating price change information, that do not contain in1047
clearly legible form the name and place of business of the1048
manufacturer who mixed the final ingredients and, if different,1049
the manufacturer who produced the drug in its finished dosage form1050
and, if different, the packer or distributor.1051

       (B)(1) No person at a flea market shall sell, offer for1052
sale, or knowingly permit the sale of any of the following1053
products:1054

       (a) Baby food, infant formula, or similar products;1055

       (b) Any drug, cosmetic, or device;1056

       (c) Any product on which is printed or stamped an expiration1057
date or a date recommended by the manufacturer as either the last1058
day on which the product should be offered for sale or the last1059
day on which the product should be used.1060

       (2) Division (B)(1) of this section does not apply to a1061
person who keeps available for public inspection an identification1062
card identifying the person as an authorized representative of the1063
manufacturer or distributor of any drug, cosmetic, or device, as1064
long as the card is not false, fraudulent, or fraudulently1065
obtained.1066

       (3) Division (B)(1)(c) of this section does not apply to a1067
person or governmental entity that is licensed as a retail food1068
establishment or food service operation under Chapter 3717. of the1069
Revised Code or is listed in division (B)(9) or (12) of section1070
3717.42 of the Revised Code.1071

       (4) As used in division (B)(1) of this section, "flea1072
market" means any location, other than a permanent retail store,1073
at which space is rented or otherwise made available to others for1074
the conduct of business as transient or limited vendors as defined1075
in section 5739.17 of the Revised Code.1076

       Sec. 4501.32.  (A) There is hereby created in the state1077
treasury the professional sports teams license plate fund. The1078
fund shall consist of the contributions that are paid to the1079
registrar of motor vehicles by applicants who voluntarily choose1080
to obtain license plates bearing the logo of a professional sports1081
team pursuant to section 4503.591 of the Revised Code.1082

       (B) If a professional sports team located in this state1083
desires to have its logo appear on license plates issued by this1084
state, it shall inform the largest convention and visitors' bureau1085
of the county in which the professional sports team is located of1086
that desire. That convention and visitors' bureau shall create a1087
sports commission to operate in that county to receive the1088
contributions that are paid by applicants who choose to be issued1089
license plates bearing the logo of that professional sports team1090
for display on their motor vehicles. The sports commission shall1091
negotiate with the professional sports team to permit the display1092
of the team's logo on license plates issued by this state, enter1093
into the contract with the team to permit such display, and pay to1094
the team any licensing or rights fee that must be paid in1095
connection with the issuance of the license plates. Upon1096
execution of the contract, the sports commission shall provide a1097
copy of it to the registrar of motor vehicles, along with any1098
other documentation the registrar may require. Upon receipt of1099
the contract and any required additional documentation, and when1100
the numerical requirement contained in division (A) of section1101
4503.78 of the Revised Code has been met relative to that1102
particular professional sports team, the registrar shall take the1103
measures necessary to issue license plates bearing the logo of1104
that team.1105

       The registrar shall pay to the sports commission all1106
contributions that are paid by applicants who obtain license1107
plates that bear the logos of participating professional sports1108
teams located in the county of the sports commission, irrespective1109
of the county of residence of an applicant.1110

       (C) A sports commission shall expend the money it receives1111
under this section to attract amateur regional, national, and1112
international sporting events to the municipal corporation,1113
county, or township in which it is located, and it may sponsor1114
such events. Prior to attracting or sponsoring such events, the1115
sports commission shall perform an economic analysis to determine1116
whether the proposed event will have a positive economic effect on1117
the greater area in which the event will be held. A sports1118
commission shall not expend any money it receives under this1119
section to attract or sponsor an amateur regional, national, or1120
international sporting event if its economic analysis does not1121
result in a finding that the proposed event will have a positive1122
economic effect on the greater area in which the event will be1123
held.1124

       A sports commission that receives money pursuant to this1125
section, in addition to any other duties imposed on it by law and1126
notwithstanding the scope of those duties, also shall encourage1127
the economic development of this state through the promotion of1128
tourism within all areas of this state. A sports commission that1129
receives ten thousand dollars or more during any calendar year1130
pursuant to this section shall submit a written report to the1131
director of development, on or before the first day of October of1132
the next succeeding year, detailing its efforts and expenditures1133
in the promotion of tourism during the calendar year in which it1134
received the ten thousand dollars or more.1135

       As used in this division, "promotion of tourism" means the1136
encouragement through advertising, educational and informational1137
means, and public relations, both within the state and outside of1138
it, of travel by persons away from their homes for pleasure,1139
personal reasons, or other purposes, except to work, to this state1140
or to the region in which the sports commission is located.1141

       (D) For purposes of this section:1142

       (1) The "largest" convention and visitors' bureau of a1143
county is the bureau that receives the largest amount of money1144
generated in that county from excise taxes levied on lodging1145
transactions under sections 351.021, 5739.025739.08, and 5739.0241146
5739.09 of the Revised Code.1147

       (2) "Sports commission" means a nonprofit corporation1148
organized under the laws of this state that is entitled to tax1149
exempt status under section 501(c)(3) of the "Internal Revenue1150
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501, as amended, and1151
whose function is to attract, promote, or sponsor sports and1152
athletic events within a municipal corporation, county, or1153
township.1154

       Such a commission shall consist of twenty-one members. Seven1155
members shall be appointed by the mayor of the largest city to be1156
served by the commission. Seven members shall be appointed by the1157
board of county commissioners of the county to be served by the1158
commission. Seven members shall be appointed by the largest1159
convention and visitor'svisitors' bureau in the area to be served1160
by the commission. A sports commission may provide all services1161
related to attracting, promoting, or sponsoring such events,1162
including, but not limited to, the booking of athletes and teams,1163
scheduling, and hiring or contracting for staff, ushers, managers,1164
and other persons whose functions are directly related to the1165
sports and athletic events the commission attracts, promotes, or1166
sponsors.1167

       Sec. 5739.01.  As used in this chapter:1168

       (A) "Person" includes individuals, receivers, assignees,1169
trustees in bankruptcy, estates, firms, partnerships,1170
associations, joint-stock companies, joint ventures, clubs,1171
societies, corporations, the state and its political subdivisions,1172
and combinations of individuals of any form.1173

       (B) "Sale" and "selling" include all of the following1174
transactions for a consideration in any manner, whether absolutely1175
or conditionally, whether for a price or rental, in money or by1176
exchange, and by any means whatsoever:1177

       (1) All transactions by which title or possession, or both,1178
of tangible personal property, is or is to be transferred, or a1179
license to use or consume tangible personal property is or is to1180
be granted;1181

       (2) All transactions by which lodging by a hotel is or is to1182
be furnished to transient guests;1183

       (3) All transactions by which:1184

       (a) An item of tangible personal property is or is to be1185
repaired, except property, the purchase of which would be exempt1186
from the tax imposed by section 5739.02 of the Revised Code;1187

       (b) An item of tangible personal property is or is to be1188
installed, except property, the purchase of which would be exempt1189
from the tax imposed by section 5739.02 of the Revised Code or1190
property that is or is to be incorporated into and will become a1191
part of a production, transmission, transportation, or1192
distribution system for the delivery of a public utility service;1193

       (c) The service of washing, cleaning, waxing, polishing, or1194
painting a motor vehicle is or is to be furnished;1195

       (d) Industrial laundry cleaning services are or are to be1196
provided;1197

       (e) Automatic data processing, computer services, or1198
electronic information services are or are to be provided for use1199
in business when the true object of the transaction is the receipt1200
by the consumer of automatic data processing, computer services,1201
or electronic information services rather than the receipt of1202
personal or professional services to which automatic data1203
processing, computer services, or electronic information services1204
are incidental or supplemental. Notwithstanding any other1205
provision of this chapter, such transactions that occur between1206
members of an affiliated group are not sales. An affiliated group1207
means two or more persons related in such a way that one person1208
owns or controls the business operation of another member of the1209
group. In the case of corporations with stock, one corporation1210
owns or controls another if it owns more than fifty per cent of1211
the other corporation's common stock with voting rights.1212

       (f) Telecommunications service, other than mobile1213
telecommunications service after July 31, 2002, is provided that1214
originates or terminates in this state and is charged in the1215
records of the telecommunications service vendor to the consumer's1216
telephone number or account in this state, or that both originates1217
and terminates in this state; but does not include transactions by1218
which telecommunications service is paid for by using a prepaid1219
authorization number or prepaid telephone calling card, or by1220
which local telecommunications service is obtained from a1221
coin-operated telephone and paid for by using coin;1222

       (g) Landscaping and lawn care service is or is to be1223
provided;1224

       (h) Private investigation and security service is or is to1225
be provided;1226

       (i) Information services or tangible personal property is1227
provided or ordered by means of a nine hundred telephone call;1228

       (j) Building maintenance and janitorial service is or is to1229
be provided;1230

       (k) Employment service is or is to be provided;1231

       (l) Employment placement service is or is to be provided;1232

       (m) Exterminating service is or is to be provided;1233

       (n) Physical fitness facility service is or is to be1234
provided;1235

       (o) Recreation and sports club service is or is to be1236
provided.1237

       (p) After July 31, 2002, mobile telecommunications service1238
is deemed to be provided in this state, pursuant to the "Mobile1239
Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 Stat.1240
626 (2000), 4 U.S.C.A. 116 to 126, as amended.1241

       (4) All transactions by which printed, imprinted,1242
overprinted, lithographic, multilithic, blueprinted, photostatic,1243
or other productions or reproductions of written or graphic matter1244
are or are to be furnished or transferred;1245

       (5) The production or fabrication of tangible personal1246
property for a consideration for consumers who furnish either1247
directly or indirectly the materials used in the production of1248
fabrication work; and include the furnishing, preparing, or1249
serving for a consideration of any tangible personal property1250
consumed on the premises of the person furnishing, preparing, or1251
serving such tangible personal property. Except as provided in1252
section 5739.03 of the Revised Code, a construction contract1253
pursuant to which tangible personal property is or is to be1254
incorporated into a structure or improvement on and becoming a1255
part of real property is not a sale of such tangible personal1256
property. The construction contractor is the consumer of such1257
tangible personal property, provided that the sale and1258
installation of carpeting, the sale and installation of1259
agricultural land tile, the sale and erection or installation of1260
portable grain bins, or the provision of landscaping and lawn care1261
service and the transfer of property as part of such service is1262
never a construction contract. The transfer of copyrighted motion1263
picture films for exhibition purposes is not a sale, except such1264
films as are used solely for advertising purposes. Other than as1265
provided in this section, "sale" and "selling" do not include1266
professional, insurance, or personal service transactions that1267
involve the transfer of tangible personal property as an1268
inconsequential element, for which no separate charges are made.1269

       As used in division (B)(5) of this section:1270

       (a) "Agricultural land tile" means fired clay or concrete1271
tile, or flexible or rigid perforated plastic pipe or tubing,1272
incorporated or to be incorporated into a subsurface drainage1273
system appurtenant to land used or to be used directly in1274
production by farming, agriculture, horticulture, or floriculture.1275
The term does not include such materials when they are or are to1276
be incorporated into a drainage system appurtenant to a building1277
or structure even if the building or structure is used or to be1278
used in such production.1279

       (b) "Portable grain bin" means a structure that is used or1280
to be used by a person engaged in farming or agriculture to1281
shelter the person's grain and that is designed to be disassembled1282
without significant damage to its component parts.1283

       (6) All transactions in which all of the shares of stock of1284
a closely held corporation are transferred, if the corporation is1285
not engaging in business and its entire assets consist of boats,1286
planes, motor vehicles, or other tangible personal property1287
operated primarily for the use and enjoyment of the shareholders;1288

       (7) All transactions in which a warranty, maintenance or1289
service contract, or similar agreement by which the vendor of the1290
warranty, contract, or agreement agrees to repair or maintain the1291
tangible personal property of the consumer is or is to be1292
provided;1293

       (8) All transactions by which a prepaid authorization number1294
or a prepaid telephone calling card is or is to be transferred.1295

       (C) "Vendor" means the person providing the service or by1296
whom the transfer effected or license given by a sale is or is to1297
be made or given and, for sales described in division (B)(3)(i) of1298
this section, the telecommunications service vendor that provides1299
the nine hundred telephone service; if two or more persons are1300
engaged in business at the same place of business under a single1301
trade name in which all collections on account of sales by each1302
are made, such persons shall constitute a single vendor.1303

       Physicians, dentists, hospitals, and veterinarians who are1304
engaged in selling tangible personal property as received from1305
others, such as eyeglasses, mouthwashes, dentifrices, or similar1306
articles, are vendors. Veterinarians who are engaged in1307
transferring to others for a consideration drugs, the dispensing1308
of which does not require an order of a licensed veterinarian or1309
physician under federal law, are vendors.1310

       (D)(1) "Consumer" means the person for whom the service is1311
provided, to whom the transfer effected or license given by a sale1312
is or is to be made or given, to whom the service described in1313
division (B)(3)(f) or (i) of this section is charged, or to whom1314
the admission is granted.1315

       (2) Physicians, dentists, hospitals, and blood banks1316
operated by nonprofit institutions and persons licensed to1317
practice veterinary medicine, surgery, and dentistry are consumers1318
of all tangible personal property and services purchased by them1319
in connection with the practice of medicine, dentistry, the1320
rendition of hospital or blood bank service, or the practice of1321
veterinary medicine, surgery, and dentistry. In addition to being1322
consumers of drugs administered by them or by their assistants1323
according to their direction, veterinarians also are consumers of1324
drugs that under federal law may be dispensed only by or upon the1325
order of a licensed veterinarian or physician, when transferred by1326
them to others for a consideration to provide treatment to animals1327
as directed by the veterinarian.1328

       (3) A person who performs a facility management, or similar1329
service contract for a contractee is a consumer of all tangible1330
personal property and services purchased for use in connection1331
with the performance of such contract, regardless of whether title1332
to any such property vests in the contractee. The purchase of1333
such property and services is not subject to the exception for1334
resale under division (E)(1) of this section.1335

       (4)(a) In the case of a person who purchases printed matter1336
for the purpose of distributing it or having it distributed to the1337
public or to a designated segment of the public, free of charge,1338
that person is the consumer of that printed matter, and the1339
purchase of that printed matter for that purpose is a sale.1340

       (b) In the case of a person who produces, rather than1341
purchases, printed matter for the purpose of distributing it or1342
having it distributed to the public or to a designated segment of1343
the public, free of charge, that person is the consumer of all1344
tangible personal property and services purchased for use or1345
consumption in the production of that printed matter. That person1346
is not entitled to claim exception under division (E)(8) of this1347
section for any material incorporated into the printed matter or1348
any equipment, supplies, or services primarily used to produce the1349
printed matter.1350

       (c) The distribution of printed matter to the public or to a1351
designated segment of the public, free of charge, is not a sale to1352
the members of the public to whom the printed matter is1353
distributed or to any persons who purchase space in the printed1354
matter for advertising or other purposes.1355

       (5) A person who makes sales of any of the services listed1356
in division (B)(3) of this section is the consumer of any tangible1357
personal property used in performing the service. The purchase of1358
that property is not subject to the resale exception under1359
division (E)(1) of this section.1360

       (E) "Retail sale" and "sales at retail" include all sales1361
except those in which the purpose of the consumer is:1362

       (1) To resell the thing transferred or benefit of the1363
service provided, by a person engaging in business, in the form in1364
which the same is, or is to be, received by the person;1365

       (2) To incorporate the thing transferred as a material or a1366
part, into tangible personal property to be produced for sale by1367
manufacturing, assembling, processing, or refining, or to use or1368
consume the thing transferred directly in producing a product for1369
sale by mining, including without limitation the extraction from1370
the earth of all substances that are classed geologically as1371
minerals, production of crude oil and natural gas, farming,1372
agriculture, horticulture, or floriculture, and persons engaged in1373
rendering farming, agricultural, horticultural, or floricultural1374
services, and services in the exploration for, and production of,1375
crude oil and natural gas, for others are deemed engaged directly1376
in farming, agriculture, horticulture, and floriculture, or1377
exploration for, and production of, crude oil and natural gas;1378
directly in the rendition of a public utility service, except that1379
the sales tax levied by section 5739.02 of the Revised Code shall1380
be collected upon all meals, drinks, and food for human1381
consumption sold upon Pullman and railroad coaches. This1382
paragraph does not exempt or except from "retail sale" or "sales1383
at retail" the sale of tangible personal property that is to be1384
incorporated into a structure or improvement to real property.1385

       (3) To hold the thing transferred as security for the1386
performance of an obligation of the vendor;1387

       (4) To use or consume the thing transferred in the process1388
of reclamation as required by Chapters 1513. and 1514. of the1389
Revised Code;1390

       (5) To resell, hold, use, or consume the thing transferred1391
as evidence of a contract of insurance;1392

       (6) To use or consume the thing directly in commercial1393
fishing;1394

       (7) To incorporate the thing transferred as a material or a1395
part into, or to use or consume the thing transferred directly in1396
the production of, magazines distributed as controlled circulation1397
publications;1398

       (8) To use or consume the thing transferred in the1399
production and preparation in suitable condition for market and1400
sale of printed, imprinted, overprinted, lithographic,1401
multilithic, blueprinted, photostatic, or other productions or1402
reproductions of written or graphic matter;1403

       (9) To use the thing transferred, as described in section1404
5739.011 of the Revised Code, primarily in a manufacturing1405
operation to produce tangible personal property for sale;1406

       (10) To use the benefit of a warranty, maintenance or1407
service contract, or similar agreement, as defined in division1408
(B)(7) of this section, to repair or maintain tangible personal1409
property, if all of the property that is the subject of the1410
warranty, contract, or agreement would be exempt on its purchase1411
from the tax imposed by section 5739.02 of the Revised Code;1412

       (11) To use the thing transferred as qualified research and1413
development equipment;1414

       (12) To use or consume the thing transferred primarily in1415
storing, transporting, mailing, or otherwise handling purchased1416
sales inventory in a warehouse, distribution center, or similar1417
facility when the inventory is primarily distributed outside this1418
state to retail stores of the person who owns or controls the1419
warehouse, distribution center, or similar facility, to retail1420
stores of an affiliated group of which that person is a member, or1421
by means of direct marketing. Division (E)(12) of this section1422
does not apply to motor vehicles registered for operation on the1423
public highways. As used in division (E)(12) of this section,1424
"affiliated group" has the same meaning as in division (B)(3)(e)1425
of this section and "direct marketing" has the same meaning as in1426
division (B)(37) of section 5739.02 of the Revised Code.1427

       (13) To use or consume the thing transferred to fulfill a1428
contractual obligation incurred by a warrantor pursuant to a1429
warranty provided as a part of the price of the tangible personal1430
property sold or by a vendor of a warranty, maintenance or service1431
contract, or similar agreement the provision of which is defined1432
as a sale under division (B)(7) of this section;1433

       (14) To use or consume the thing transferred in the1434
production of a newspaper for distribution to the public;1435

       (15) To use tangible personal property to perform a service1436
listed in division (B)(3) of this section, if the property is or1437
is to be permanently transferred to the consumer of the service as1438
an integral part of the performance of the service.1439

       As used in division (E) of this section, "thing" includes all1440
transactions included in divisions (B)(3)(a), (b), and (e) of this1441
section.1442

       Sales conducted through a coin-operated device that activates1443
vacuum equipment or equipment that dispenses water, whether or not1444
in combination with soap or other cleaning agents or wax, to the1445
consumer for the consumer's use on the premises in washing,1446
cleaning, or waxing a motor vehicle, provided no other personal1447
property or personal service is provided as part of the1448
transaction, are not retail sales or sales at retail.1449

       (F) "Business" includes any activity engaged in by any1450
person with the object of gain, benefit, or advantage, either1451
direct or indirect. "Business" does not include the activity of a1452
person in managing and investing the person's own funds.1453

       (G) "Engaging in business" means commencing, conducting, or1454
continuing in business, and liquidating a business when the1455
liquidator thereof holds itself out to the public as conducting1456
such business. Making a casual sale is not engaging in business.1457

       (H)(1) "Price," except as provided in divisions (H)(2) and1458
(3) of this section, means the aggregate value in money of1459
anything paid or delivered, or promised to be paid or delivered,1460
in the complete performance of a retail sale, without any1461
deduction on account of the cost of the property sold, cost of1462
materials used, labor or service cost, interest, discount paid or1463
allowed after the sale is consummated, or any other expense. If1464
the retail sale consists of the rental or lease of tangible1465
personal property, "price" means the aggregate value in money of1466
anything paid or delivered, or promised to be paid or delivered,1467
in the complete performance of the rental or lease, without any1468
deduction for tax, interest, labor or service charge, damage1469
liability waiver, termination or damage charge, discount paid or1470
allowed after the lease is consummated, or any other expense. The1471
sales tax shall be calculated and collected by the lessor on each1472
payment made by the lessee. "Price" does not include the1473
consideration received as a deposit refundable to the consumer1474
upon return of a beverage container, the consideration received as1475
a deposit on a carton or case that is used for such returnable1476
containers, or the consideration received as a refundable security1477
deposit for the use of tangible personal property to the extent1478
that it actually is refunded, if the consideration for such1479
refundable deposit is separately stated from the consideration1480
received or to be received for the tangible personal property1481
transferred in the retail sale. Such separation must appear in1482
the sales agreement or on the initial invoice or initial billing1483
rendered by the vendor to the consumer. Price is the amount1484
received inclusive of the tax, provided the vendor establishes to1485
the satisfaction of the tax commissioner that the tax was added to1486
the price. When the price includes both a charge for tangible1487
personal property and a charge for providing a service and the1488
sale of the property and the charge for the service are separately1489
taxable, or have a separately determinable tax status, the price1490
shall be separately stated for each such charge so the tax can be1491
correctly computed and charged.1492

       The tax collected by the vendor from the consumer under this1493
chapter is not part of the price, but is a tax collection for the1494
benefit of the state and of counties levying an additional sales1495
tax pursuant to section 5739.021 or 5739.026 of the Revised Code1496
and of transit authorities levying an additional sales tax1497
pursuant to section 5739.023 of the Revised Code. Except for the1498
discount authorized in section 5739.12 of the Revised Code, no1499
person other than the state or such a county or transit authority1500
shall derive any benefit from the collection or payment of such1501
tax.1502

       (2) In the case of a sale of any new motor vehicle by a new1503
motor vehicle dealer, as defined in section 4517.01 of the Revised1504
Code, in which another motor vehicle is accepted by the dealer as1505
part of the consideration received, "price" has the same meaning1506
as in division (H)(1) of this section, reduced by the credit1507
afforded the consumer by the dealer for the motor vehicle received1508
in trade.1509

       (3) In the case of a sale of any watercraft or outboard1510
motor by a watercraft dealer licensed in accordance with section1511
1547.543 of the Revised Code, in which another watercraft,1512
watercraft and trailer, or outboard motor is accepted by the1513
dealer as part of the consideration received, "price" has the same1514
meaning as in division (H)(1) of this section, reduced by the1515
credit afforded the consumer by the dealer for the watercraft,1516
watercraft and trailer, or outboard motor received in trade. As1517
used in division (H)(3) of this section, "watercraft" includes an1518
outdrive unit attached to the watercraft.1519

       (I) "Receipts" means the total amount of the prices of the1520
sales of vendors, provided that cash discounts allowed and taken1521
on sales at the time they are consummated are not included, minus1522
any amount deducted as a bad debt pursuant to section 5739.121 of1523
the Revised Code. "Receipts" does not include the sale price of1524
property returned or services rejected by consumers when the full1525
sale price and tax are refunded either in cash or by credit.1526

       (J) "Place of business" means any location at which a person1527
engages in business.1528

       (K) "Premises" includes any real property or portion thereof1529
upon which any person engages in selling tangible personal1530
property at retail or making retail sales and also includes any1531
real property or portion thereof designated for, or devoted to,1532
use in conjunction with the business engaged in by such person.1533

       (L) "Casual sale" means a sale of an item of tangible1534
personal property that was obtained by the person making the1535
sale, through purchase or otherwise, for the person's own use in1536
this state and was previously subject to any state's taxing1537
jurisdiction on its sale or use, and includes such items acquired1538
for the seller's use that are sold by an auctioneer employed1539
directly by the person for such purpose, provided the location of1540
such sales is not the auctioneer's permanent place of business. As1541
used in this division, "permanent place of business" includes any1542
location where such auctioneer has conducted more than two1543
auctions during the year.1544

       (M) "Hotel" means every establishment kept, used,1545
maintained, advertised, or held out to the public to be a place1546
where sleeping accommodations are offered to guests, in which five1547
or more rooms are used for the accommodation of such guests,1548
whether the rooms are in one or several structures.1549

       (N) "Transient guests" means persons occupying a room or1550
rooms for sleeping accommodations for less than thirty consecutive1551
days.1552

       (O) "Making retail sales" means the effecting of1553
transactions wherein one party is obligated to pay the price and1554
the other party is obligated to provide a service or to transfer1555
title to or possession of the item sold. "Making retail sales"1556
does not include the preliminary acts of promoting or soliciting1557
the retail sales, other than the distribution of printed matter1558
which displays or describes and prices the item offered for sale,1559
nor does it include delivery of a predetermined quantity of1560
tangible personal property or transportation of property or1561
personnel to or from a place where a service is performed,1562
regardless of whether the vendor is a delivery vendor.1563

       (P) "Used directly in the rendition of a public utility1564
service" means that property which is to be incorporated into and1565
will become a part of the consumer's production, transmission,1566
transportation, or distribution system and that retains its1567
classification as tangible personal property after such1568
incorporation; fuel or power used in the production, transmission,1569
transportation, or distribution system; and tangible personal1570
property used in the repair and maintenance of the production,1571
transmission, transportation, or distribution system, including1572
only such motor vehicles as are specially designed and equipped1573
for such use. Tangible personal property and services used1574
primarily in providing highway transportation for hire are not1575
used in providing a public utility service as defined in this1576
division.1577

       (Q) "Refining" means removing or separating a desirable1578
product from raw or contaminated materials by distillation or1579
physical, mechanical, or chemical processes.1580

       (R) "Assembly" and "assembling" mean attaching or fitting1581
together parts to form a product, but do not include packaging a1582
product.1583

       (S) "Manufacturing operation" means a process in which1584
materials are changed, converted, or transformed into a different1585
state or form from which they previously existed and includes1586
refining materials, assembling parts, and preparing raw materials1587
and parts by mixing, measuring, blending, or otherwise committing1588
such materials or parts to the manufacturing process.1589
"Manufacturing operation" does not include packaging.1590

       (T) "Fiscal officer" means, with respect to a regional1591
transit authority, the secretary-treasurer thereof, and with1592
respect to a county that is a transit authority, the fiscal1593
officer of the county transit board if one is appointed pursuant1594
to section 306.03 of the Revised Code or the county auditor if the1595
board of county commissioners operates the county transit system.1596

       (U) "Transit authority" means a regional transit authority1597
created pursuant to section 306.31 of the Revised Code or a county1598
in which a county transit system is created pursuant to section1599
306.01 of the Revised Code. For the purposes of this chapter, a1600
transit authority must extend to at least the entire area of a1601
single county. A transit authority that includes territory in1602
more than one county must include all the area of the most1603
populous county that is a part of such transit authority. County1604
population shall be measured by the most recent census taken by1605
the United States census bureau.1606

       (V) "Legislative authority" means, with respect to a1607
regional transit authority, the board of trustees thereof, and1608
with respect to a county that is a transit authority, the board1609
of county commissioners.1610

       (W) "Territory of the transit authority" means all of the1611
area included within the territorial boundaries of a transit1612
authority as they from time to time exist. Such territorial1613
boundaries must at all times include all the area of a single1614
county or all the area of the most populous county that is a part1615
of such transit authority. County population shall be measured by1616
the most recent census taken by the United States census bureau.1617

       (X) "Providing a service" means providing or furnishing1618
anything described in division (B)(3) of this section for1619
consideration.1620

       (Y)(1)(a) "Automatic data processing" means processing of1621
others' data, including keypunching or similar data entry services1622
together with verification thereof, or providing access to1623
computer equipment for the purpose of processing data.1624

       (b) "Computer services" means providing services consisting1625
of specifying computer hardware configurations and evaluating1626
technical processing characteristics, computer programming, and1627
training of computer programmers and operators, provided in1628
conjunction with and to support the sale, lease, or operation of1629
taxable computer equipment or systems.1630

       (c) "Electronic information services" means providing access1631
to computer equipment by means of telecommunications equipment for1632
the purpose of either of the following:1633

       (i) Examining or acquiring data stored in or accessible to1634
the computer equipment;1635

       (ii) Placing data into the computer equipment to be1636
retrieved by designated recipients with access to the computer1637
equipment.1638

       (d) "Automatic data processing, computer services, or1639
electronic information services" shall not include personal or1640
professional services.1641

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this1642
section, "personal and professional services" means all services1643
other than automatic data processing, computer services, or1644
electronic information services, including but not limited to:1645

       (a) Accounting and legal services such as advice on tax1646
matters, asset management, budgetary matters, quality control,1647
information security, and auditing and any other situation where1648
the service provider receives data or information and studies,1649
alters, analyzes, interprets, or adjusts such material;1650

       (b) Analyzing business policies and procedures;1651

       (c) Identifying management information needs;1652

       (d) Feasibility studies, including economic and technical1653
analysis of existing or potential computer hardware or software1654
needs and alternatives;1655

       (e) Designing policies, procedures, and custom software for1656
collecting business information, and determining how data should1657
be summarized, sequenced, formatted, processed, controlled, and1658
reported so that it will be meaningful to management;1659

       (f) Developing policies and procedures that document how1660
business events and transactions are to be authorized, executed,1661
and controlled;1662

       (g) Testing of business procedures;1663

       (h) Training personnel in business procedure applications;1664

       (i) Providing credit information to users of such1665
information by a consumer reporting agency, as defined in the1666
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C.1667
1681a(f), or as hereafter amended, including but not limited to1668
gathering, organizing, analyzing, recording, and furnishing such1669
information by any oral, written, graphic, or electronic medium;1670

       (j) Providing debt collection services by any oral, written,1671
graphic, or electronic means.1672

       The services listed in divisions (Y)(2)(a) to (j) of this1673
section are not automatic data processing or computer services.1674

       (Z) "Highway transportation for hire" means the1675
transportation of personal property belonging to others for1676
consideration by any of the following:1677

       (1) The holder of a permit or certificate issued by this1678
state or the United States authorizing the holder to engage in1679
transportation of personal property belonging to others for1680
consideration over or on highways, roadways, streets, or any1681
similar public thoroughfare;1682

       (2) A person who engages in the transportation of personal1683
property belonging to others for consideration over or on1684
highways, roadways, streets, or any similar public thoroughfare1685
but who could not have engaged in such transportation on December1686
11, 1985, unless the person was the holder of a permit or1687
certificate of the types described in division (Z)(1) of this1688
section;1689

       (3) A person who leases a motor vehicle to and operates it1690
for a person described by division (Z)(1) or (2) of this section.1691

       (AA) "Telecommunications service" means the transmission of1692
any interactive, two-way electromagnetic communications, including1693
voice, image, data, and information, through the use of any medium1694
such as wires, cables, microwaves, cellular radio, radio waves,1695
light waves, or any combination of those or similar media.1696
"Telecommunications service" includes message toll service even1697
though the vendor provides the message toll service by means of1698
wide area transmission type service or private communications1699
service purchased from another telecommunications service1700
provider, but does not include any of the following:1701

       (1) Sales of incoming or outgoing wide area transmission1702
service or wide area transmission type service, including eight1703
hundred or eight-hundred-type service, to the person contracting1704
for the receipt of that service;1705

       (2) Sales of private communications service to the person1706
contracting for the receipt of that service that entitles the1707
purchaser to exclusive or priority use of a communications channel1708
or group of channels between exchanges;1709

       (3) Sales of telecommunications service by companies subject1710
to the excise tax imposed by Chapter 5727. of the Revised Code;1711

       (4) Sales of telecommunications service to a provider of1712
telecommunications service, including access services, for use in1713
providing telecommunications service;1714

       (5) Value-added nonvoice services in which computer1715
processing applications are used to act on the form, content,1716
code, or protocol of the information to be transmitted;1717

       (6) Transmission of interactive video programming by a cable1718
television system as defined in section 505.90 of the Revised1719
Code;1720

       (7) After July 31, 2002, mobile telecommunications service.1721

       (BB) "Industrial laundry cleaning services" means removing1722
soil or dirt from or supplying towels, linens, or articles of1723
clothing that belong to others and are used in a trade or1724
business.1725

       (CC) "Magazines distributed as controlled circulation1726
publications" means magazines containing at least twenty-four1727
pages, at least twenty-five per cent editorial content, issued at1728
regular intervals four or more times a year, and circulated1729
without charge to the recipient, provided that such magazines are1730
not owned or controlled by individuals or business concerns which1731
conduct such publications as an auxiliary to, and essentially for1732
the advancement of the main business or calling of, those who own1733
or control them.1734

       (DD) "Landscaping and lawn care service" means the services1735
of planting, seeding, sodding, removing, cutting, trimming,1736
pruning, mulching, aerating, applying chemicals, watering,1737
fertilizing, and providing similar services to establish, promote,1738
or control the growth of trees, shrubs, flowers, grass, ground1739
cover, and other flora, or otherwise maintaining a lawn or1740
landscape grown or maintained by the owner for ornamentation or1741
other nonagricultural purpose. However, "landscaping and lawn1742
care service" does not include the providing of such services by a1743
person who has less than five thousand dollars in sales of such1744
services during the calendar year.1745

       (EE) "Private investigation and security service" means the1746
performance of any activity for which the provider of such service1747
is required to be licensed pursuant to Chapter 4749. of the1748
Revised Code, or would be required to be so licensed in performing1749
such services in this state, and also includes the services of1750
conducting polygraph examinations and of monitoring or overseeing1751
the activities on or in, or the condition of, the consumer's home,1752
business, or other facility by means of electronic or similar1753
monitoring devices. "Private investigation and security service"1754
does not include special duty services provided by off-duty police1755
officers, deputy sheriffs, and other peace officers regularly1756
employed by the state or a political subdivision.1757

       (FF) "Information services" means providing conversation,1758
giving consultation or advice, playing or making a voice or other1759
recording, making or keeping a record of the number of callers,1760
and any other service provided to a consumer by means of a nine1761
hundred telephone call, except when the nine hundred telephone1762
call is the means by which the consumer makes a contribution to a1763
recognized charity.1764

       (GG) "Research and development" means designing, creating,1765
or formulating new or enhanced products, equipment, or1766
manufacturing processes, and conducting scientific or1767
technological inquiry and experimentation in the physical sciences1768
with the goal of increasing scientific knowledge which may reveal1769
the bases for new or enhanced products, equipment, or1770
manufacturing processes.1771

       (HH) "Qualified research and development equipment" means1772
capitalized tangible personal property, and leased personal1773
property that would be capitalized if purchased, used by a person1774
primarily to perform research and development. Tangible personal1775
property primarily used in testing, as defined in division (A)(4)1776
of section 5739.011 of the Revised Code, or used for recording or1777
storing test results, is not qualified research and development1778
equipment unless such property is primarily used by the consumer1779
in testing the product, equipment, or manufacturing process being1780
created, designed, or formulated by the consumer in the research1781
and development activity or in recording or storing such test1782
results.1783

       (II) "Building maintenance and janitorial service" means1784
cleaning the interior or exterior of a building and any tangible1785
personal property located therein or thereon, including any1786
services incidental to such cleaning for which no separate charge1787
is made. However, "building maintenance and janitorial service"1788
does not include the providing of such service by a person who has1789
less than five thousand dollars in sales of such service during1790
the calendar year.1791

       (JJ) "Employment service" means providing or supplying1792
personnel, on a temporary or long-term basis, to perform work or1793
labor under the supervision or control of another, when the1794
personnel so supplied receive their wages, salary, or other1795
compensation from the provider of the service. "Employment1796
service" does not include:1797

       (1) Acting as a contractor or subcontractor, where the1798
personnel performing the work are not under the direct control of1799
the purchaser.1800

       (2) Medical and health care services.1801

       (3) Supplying personnel to a purchaser pursuant to a1802
contract of at least one year between the service provider and the1803
purchaser that specifies that each employee covered under the1804
contract is assigned to the purchaser on a permanent basis.1805

       (4) Transactions between members of an affiliated group, as1806
defined in division (B)(3)(e) of this section.1807

       (KK) "Employment placement service" means locating or1808
finding employment for a person or finding or locating an employee1809
to fill an available position.1810

       (LL) "Exterminating service" means eradicating or attempting1811
to eradicate vermin infestations from a building or structure, or1812
the area surrounding a building or structure, and includes1813
activities to inspect, detect, or prevent vermin infestation of a1814
building or structure.1815

       (MM) "Physical fitness facility service" means all1816
transactions by which a membership is granted, maintained, or1817
renewed, including initiation fees, membership dues, renewal fees,1818
monthly minimum fees, and other similar fees and dues, by a1819
physical fitness facility such as an athletic club, health spa, or1820
gymnasium, which entitles the member to use the facility for1821
physical exercise.1822

       (NN) "Recreation and sports club service" means all1823
transactions by which a membership is granted, maintained, or1824
renewed, including initiation fees, membership dues, renewal fees,1825
monthly minimum fees, and other similar fees and dues, by a1826
recreation and sports club, which entitles the member to use the1827
facilities of the organization. "Recreation and sports club"1828
means an organization that has ownership of, or controls or leases1829
on a continuing, long-term basis, the facilities used by its1830
members and includes an aviation club, gun or shooting club, yacht1831
club, card club, swimming club, tennis club, golf club, country1832
club, riding club, amateur sports club, or similar organization.1833

       (OO) "Livestock" means farm animals commonly raised for food1834
or food production, and includes but is not limited to cattle,1835
sheep, goats, swine, and poultry. "Livestock" does not include1836
invertebrates, fish, amphibians, reptiles, horses, domestic pets,1837
animals for use in laboratories or for exhibition, or other1838
animals not commonly raised for food or food production.1839

       (PP) "Livestock structure" means a building or structure1840
used exclusively for the housing, raising, feeding, or sheltering1841
of livestock, and includes feed storage or handling structures and1842
structures for livestock waste handling.1843

       (QQ) "Horticulture" means the growing, cultivation, and1844
production of flowers, fruits, herbs, vegetables, sod, mushrooms,1845
and nursery stock. As used in this division, "nursery stock" has1846
the same meaning as in section 927.51 of the Revised Code.1847

       (RR) "Horticulture structure" means a building or structure1848
used exclusively for the commercial growing, raising, or1849
overwintering of horticultural products, and includes the area1850
used for stocking, storing, and packing horticultural products1851
when done in conjunction with the production of those products.1852

       (SS) "Newspaper" means an unbound publication bearing a1853
title or name that is regularly published, at least as frequently1854
as biweekly, and distributed from a fixed place of business to the1855
public in a specific geographic area, and that contains a1856
substantial amount of news matter of international, national, or1857
local events of interest to the general public.1858

       (TT) "Professional racing team" means a person that employs1859
at least twenty full-time employees for the purpose of conducting1860
a motor vehicle racing business for profit. The person must1861
conduct the business with the purpose of racing one or more motor1862
racing vehicles in at least ten competitive professional racing1863
events each year that comprise all or part of a motor racing1864
series sanctioned by one or more motor racing sanctioning1865
organizations. A "motor racing vehicle" means a vehicle for which1866
the chassis, engine, and parts are designed exclusively for motor1867
racing, and does not include a stock or production model vehicle1868
that may be modified for use in racing. For the purposes of this1869
division:1870

       (1) A "competitive professional racing event" is a motor1871
vehicle racing event sanctioned by one or more motor racing1872
sanctioning organizations, at which aggregate cash prizes in1873
excess of eight hundred thousand dollars are awarded to the1874
competitors.1875

       (2) "Full-time employee" means an individual who is employed1876
for consideration for thirty-five or more hours a week, or who1877
renders any other standard of service generally accepted by custom1878
or specified by contract as full-time employment.1879

       (UU)(1) "Prepaid authorization number" means a numeric or1880
alphanumeric combination that represents a prepaid account that1881
can be used by the account holder solely to obtain1882
telecommunications service, and includes any renewals or increases1883
in the prepaid account.1884

       (2) "Prepaid telephone calling card" means a tangible item1885
that contains a prepaid authorization number that can be used1886
solely to obtain telecommunications service, and includes any1887
renewals or increases in the prepaid account.1888

       (VV) "Mobile telecommunications service" has the same1889
meaning as in the "Mobile Telecommunications Sourcing Act," Pub.1890
L. No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as1891
amended.1892

       (WW) "Certified service provider" has the same meaning as in1893
section 5740.01 of the Revised Code.1894

       Sec. 5739.02.  For the purpose of providing revenue with1895
which to meet the needs of the state, for the use of the general1896
revenue fund of the state, for the purpose of securing a thorough1897
and efficient system of common schools throughout the state, for1898
the purpose of affording revenues, in addition to those from1899
general property taxes, permitted under constitutional1900
limitations, and from other sources, for the support of local1901
governmental functions, and for the purpose of reimbursing the1902
state for the expense of administering this chapter, an excise tax1903
is hereby levied on each retail sale made in this state.1904

       (A) The tax shall be collected pursuant to the schedules in1905
section 5739.025 of the Revised Code.1906

       The tax applies and is collectible when the sale is made,1907
regardless of the time when the price is paid or delivered.1908

       In the case of a sale, the price of which consists in whole1909
or in part of rentals for the use of the thing transferred, the1910
tax, as regards such rentals, shall be measured by the1911
installments thereof.1912

       In the case of a sale of a service defined under division1913
(MM) or (NN) of section 5739.01 of the Revised Code, the price of1914
which consists in whole or in part of a membership for the receipt1915
of the benefit of the service, the tax applicable to the sale1916
shall be measured by the installments thereof.1917

       (B) The tax does not apply to the following:1918

       (1) Sales to the state or any of its political subdivisions,1919
or to any other state or its political subdivisions if the laws of1920
that state exempt from taxation sales made to this state and its1921
political subdivisions;1922

       (2) Sales of food for human consumption off the premises1923
where sold;1924

       (3) Sales of food sold to students only in a cafeteria,1925
dormitory, fraternity, or sorority maintained in a private,1926
public, or parochial school, college, or university;1927

       (4) Sales of newspapers, and of magazine subscriptions1928
shipped by second class mail, and sales or transfers of magazines1929
distributed as controlled circulation publications;1930

       (5) The furnishing, preparing, or serving of meals without1931
charge by an employer to an employee provided the employer records1932
the meals as part compensation for services performed or work1933
done;1934

       (6) Sales of motor fuel upon receipt, use, distribution, or1935
sale of which in this state a tax is imposed by the law of this1936
state, but this exemption shall not apply to the sale of motor1937
fuel on which a refund of the tax is allowable under section1938
5735.14 of the Revised Code; and the tax commissioner may deduct1939
the amount of tax levied by this section applicable to the price1940
of motor fuel when granting a refund of motor fuel tax pursuant to1941
section 5735.14 of the Revised Code and shall cause the amount1942
deducted to be paid into the general revenue fund of this state;1943

       (7) Sales of natural gas by a natural gas company, of water1944
by a water-works company, or of steam by a heating company, if in1945
each case the thing sold is delivered to consumers through pipes1946
or conduits, and all sales of communications services by a1947
telephone or telegraph company, all terms as defined in section1948
5727.01 of the Revised Code;1949

       (8) Casual sales by a person, or auctioneer employed1950
directly by the person to conduct such sales, except as to such1951
sales of motor vehicles, watercraft or outboard motors required to1952
be titled under section 1548.06 of the Revised Code, watercraft1953
documented with the United States coast guard, snowmobiles, and1954
all-purpose vehicles as defined in section 4519.01 of the Revised1955
Code;1956

       (9) Sales of services or tangible personal property, other1957
than motor vehicles, mobile homes, and manufactured homes, by1958
churches, organizations exempt from taxation under section1959
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit1960
organizations operated exclusively for charitable purposes as1961
defined in division (B)(12) of this section, provided that the1962
number of days on which such tangible personal property or1963
services, other than items never subject to the tax, are sold does1964
not exceed six in any calendar year. If the number of days on1965
which such sales are made exceeds six in any calendar year, the1966
church or organization shall be considered to be engaged in1967
business and all subsequent sales by it shall be subject to the1968
tax. In counting the number of days, all sales by groups within a1969
church or within an organization shall be considered to be sales1970
of that church or organization, except that sales made by separate1971
student clubs and other groups of students of a primary or1972
secondary school, and sales made by a parent-teacher association,1973
booster group, or similar organization that raises money to1974
support or fund curricular or extracurricular activities of a1975
primary or secondary school, shall not be considered to be sales1976
of such school, and sales by each such club, group, association,1977
or organization shall be counted separately for purposes of the1978
six-day limitation. This division does not apply to sales by a1979
noncommercial educational radio or television broadcasting1980
station.1981

       (10) Sales not within the taxing power of this state under1982
the Constitution of the United States;1983

       (11) The transportation of persons or property, unless the1984
transportation is by a private investigation and security service;1985

       (12) Sales of tangible personal property or services to1986
churches, to organizations exempt from taxation under section1987
501(c)(3) of the Internal Revenue Code of 1986, and to any other1988
nonprofit organizations operated exclusively for charitable1989
purposes in this state, no part of the net income of which inures1990
to the benefit of any private shareholder or individual, and no1991
substantial part of the activities of which consists of carrying1992
on propaganda or otherwise attempting to influence legislation;1993
sales to offices administering one or more homes for the aged or1994
one or more hospital facilities exempt under section 140.08 of the1995
Revised Code; and sales to organizations described in division (D)1996
of section 5709.12 of the Revised Code.1997

       "Charitable purposes" means the relief of poverty; the1998
improvement of health through the alleviation of illness, disease,1999
or injury; the operation of an organization exclusively for the2000
provision of professional, laundry, printing, and purchasing2001
services to hospitals or charitable institutions; the operation of2002
a home for the aged, as defined in section 5701.13 of the Revised2003
Code; the operation of a radio or television broadcasting station2004
that is licensed by the federal communications commission as a2005
noncommercial educational radio or television station; the2006
operation of a nonprofit animal adoption service or a county2007
humane society; the promotion of education by an institution of2008
learning that maintains a faculty of qualified instructors,2009
teaches regular continuous courses of study, and confers a2010
recognized diploma upon completion of a specific curriculum; the2011
operation of a parent-teacher association, booster group, or2012
similar organization primarily engaged in the promotion and2013
support of the curricular or extracurricular activities of a2014
primary or secondary school; the operation of a community or area2015
center in which presentations in music, dramatics, the arts, and2016
related fields are made in order to foster public interest and2017
education therein; the production of performances in music,2018
dramatics, and the arts; or the promotion of education by an2019
organization engaged in carrying on research in, or the2020
dissemination of, scientific and technological knowledge and2021
information primarily for the public.2022

       Nothing in this division shall be deemed to exempt sales to2023
any organization for use in the operation or carrying on of a2024
trade or business, or sales to a home for the aged for use in the2025
operation of independent living facilities as defined in division2026
(A) of section 5709.12 of the Revised Code.2027

       (13) Building and construction materials and services sold2028
to construction contractors for incorporation into a structure or2029
improvement to real property under a construction contract with2030
this state or a political subdivision thereof, or with the United2031
States government or any of its agencies; building and2032
construction materials and services sold to construction2033
contractors for incorporation into a structure or improvement to2034
real property that are accepted for ownership by this state or any2035
of its political subdivisions, or by the United States government2036
or any of its agencies at the time of completion of such2037
structures or improvements; building and construction materials2038
sold to construction contractors for incorporation into a2039
horticulture structure or livestock structure for a person engaged2040
in the business of horticulture or producing livestock; building2041
materials and services sold to a construction contractor for2042
incorporation into a house of public worship or religious2043
education, or a building used exclusively for charitable purposes2044
under a construction contract with an organization whose purpose2045
is as described in division (B)(12) of this section; building2046
materials and services sold to a construction contractor for2047
incorporation into a building under a construction contract with2048
an organization exempt from taxation under section 501(c)(3) of2049
the Internal Revenue Code of 1986 when the building is to be used2050
exclusively for the organization's exempt purposes; building and2051
construction materials sold for incorporation into the original2052
construction of a sports facility under section 307.696 of the2053
Revised Code; and building and construction materials and services2054
sold to a construction contractor for incorporation into real2055
property outside this state if such materials and services, when2056
sold to a construction contractor in the state in which the real2057
property is located for incorporation into real property in that2058
state, would be exempt from a tax on sales levied by that state;2059

       (14) Sales of ships or vessels or rail rolling stock used or2060
to be used principally in interstate or foreign commerce, and2061
repairs, alterations, fuel, and lubricants for such ships or2062
vessels or rail rolling stock;2063

       (15) Sales to persons engaged in any of the activities2064
mentioned in division (E)(2) or (9) of section 5739.01 of the2065
Revised Code, to persons engaged in making retail sales, or to2066
persons who purchase for sale from a manufacturer tangible2067
personal property that was produced by the manufacturer in2068
accordance with specific designs provided by the purchaser, of2069
packages, including material, labels, and parts for packages, and2070
of machinery, equipment, and material for use primarily in2071
packaging tangible personal property produced for sale, including2072
any machinery, equipment, and supplies used to make labels or2073
packages, to prepare packages or products for labeling, or to2074
label packages or products, by or on the order of the person doing2075
the packaging, or sold at retail. "Packages" includes bags,2076
baskets, cartons, crates, boxes, cans, bottles, bindings,2077
wrappings, and other similar devices and containers, and2078
"packaging" means placing therein.2079

       (16) Sales of food to persons using food stamp benefits to2080
purchase the food. As used in division (B)(16) of this section,2081
"food" has the same meaning as in the "Food Stamp Act of 1977," 912082
Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations2083
adopted pursuant to that act.2084

       (17) Sales to persons engaged in farming, agriculture,2085
horticulture, or floriculture, of tangible personal property for2086
use or consumption directly in the production by farming,2087
agriculture, horticulture, or floriculture of other tangible2088
personal property for use or consumption directly in the2089
production of tangible personal property for sale by farming,2090
agriculture, horticulture, or floriculture; or material and parts2091
for incorporation into any such tangible personal property for use2092
or consumption in production; and of tangible personal property2093
for such use or consumption in the conditioning or holding of2094
products produced by and for such use, consumption, or sale by2095
persons engaged in farming, agriculture, horticulture, or2096
floriculture, except where such property is incorporated into real2097
property;2098

       (18) Sales of drugs dispensed by a licensed pharmacist upon2099
the order of a licensed health professional authorized to2100
prescribe drugs to a human being, as the term "licensed health2101
professional authorized to prescribe drugs" is defined in section2102
4729.01 of the Revised Code; insulin as recognized in the official2103
United States pharmacopoeia; urine and blood testing materials2104
when used by diabetics or persons with hypoglycemia to test for2105
glucose or acetone; hypodermic syringes and needles when used by2106
diabetics for insulin injections; epoetin alfa when purchased for2107
use in the treatment of persons with end-stage renal disease;2108
hospital beds when purchased for use by persons with medical2109
problems for medical purposes; and oxygen and oxygen-dispensing2110
equipment when purchased for use by persons with medical problems2111
for medical purposes;2112

       (19)(a) Sales of artificial limbs or portion thereof, breast2113
prostheses, and other prosthetic devices for humans; braces or2114
other devices for supporting weakened or nonfunctioning parts of2115
the human body; crutches or other devices to aid human2116
perambulation; and items of tangible personal property used to2117
supplement impaired functions of the human body such as2118
respiration, hearing, or elimination;2119

       (b) Sales of wheelchairs; items incorporated into or used in2120
conjunction with a motor vehicle for the purpose of transporting2121
wheelchairs, other than transportation conducted in connection2122
with the sale or delivery of wheelchairs; and items incorporated2123
into or used in conjunction with a motor vehicle that are2124
specifically designed to assist a person with a disability to2125
access or operate the motor vehicle. As used in this division,2126
"person with a disability" means any person who has lost the use2127
of one or both legs or one or both arms, who is blind, deaf, or2128
disabled to the extent that the person is unable to move about2129
without the aid of crutches or a wheelchair, or whose mobility is2130
restricted by a permanent cardiovascular, pulmonary, or other2131
disabling condition.2132

       (c) No exemption under this division shall be allowed for2133
nonprescription drugs, medicines, or remedies; items or devices2134
used to supplement vision; items or devices whose function is2135
solely or primarily cosmetic; or physical fitness equipment. This2136
division does not apply to sales to a physician or medical2137
facility for use in the treatment of a patient.2138

       (20) Sales of emergency and fire protection vehicles and2139
equipment to nonprofit organizations for use solely in providing2140
fire protection and emergency services, including trauma care and2141
emergency medical services, for political subdivisions of the2142
state;2143

       (21) Sales of tangible personal property manufactured in2144
this state, if sold by the manufacturer in this state to a2145
retailer for use in the retail business of the retailer outside of2146
this state and if possession is taken from the manufacturer by the2147
purchaser within this state for the sole purpose of immediately2148
removing the same from this state in a vehicle owned by the2149
purchaser;2150

       (22) Sales of services provided by the state or any of its2151
political subdivisions, agencies, instrumentalities, institutions,2152
or authorities, or by governmental entities of the state or any of2153
its political subdivisions, agencies, instrumentalities,2154
institutions, or authorities;2155

       (23) Sales of motor vehicles to nonresidents of this state2156
upon the presentation of an affidavit executed in this state by2157
the nonresident purchaser affirming that the purchaser is a2158
nonresident of this state, that possession of the motor vehicle is2159
taken in this state for the sole purpose of immediately removing2160
it from this state, that the motor vehicle will be permanently2161
titled and registered in another state, and that the motor vehicle2162
will not be used in this state;2163

       (24) Sales to persons engaged in the preparation of eggs for2164
sale of tangible personal property used or consumed directly in2165
such preparation, including such tangible personal property used2166
for cleaning, sanitizing, preserving, grading, sorting, and2167
classifying by size; packages, including material and parts for2168
packages, and machinery, equipment, and material for use in2169
packaging eggs for sale; and handling and transportation equipment2170
and parts therefor, except motor vehicles licensed to operate on2171
public highways, used in intraplant or interplant transfers or2172
shipment of eggs in the process of preparation for sale, when the2173
plant or plants within or between which such transfers or2174
shipments occur are operated by the same person. "Packages"2175
includes containers, cases, baskets, flats, fillers, filler flats,2176
cartons, closure materials, labels, and labeling materials, and2177
"packaging" means placing therein.2178

       (25)(a) Sales of water to a consumer for residential use,2179
except the sale of bottled water, distilled water, mineral water,2180
carbonated water, or ice;2181

       (b) Sales of water by a nonprofit corporation engaged2182
exclusively in the treatment, distribution, and sale of water to2183
consumers, if such water is delivered to consumers through pipes2184
or tubing.2185

       (26) Fees charged for inspection or reinspection of motor2186
vehicles under section 3704.14 of the Revised Code;2187

       (27) Sales to persons licensed to conduct a food service2188
operation pursuant to section 3717.43 of the Revised Code, of2189
tangible personal property primarily used directly for the2190
following:2191

       (a) To prepare food for human consumption for sale;2192

       (b) To preserve food that has been or will be prepared for2193
human consumption for sale by the food service operator, not2194
including tangible personal property used to display food for2195
selection by the consumer;2196

       (c) To clean tangible personal property used to prepare or2197
serve food for human consumption for sale.2198

       (28) Sales of animals by nonprofit animal adoption services2199
or county humane societies;2200

       (29) Sales of services to a corporation described in2201
division (A) of section 5709.72 of the Revised Code, and sales of2202
tangible personal property that qualifies for exemption from2203
taxation under section 5709.72 of the Revised Code;2204

       (30) Sales and installation of agricultural land tile, as2205
defined in division (B)(5)(a) of section 5739.01 of the Revised2206
Code;2207

       (31) Sales and erection or installation of portable grain2208
bins, as defined in division (B)(5)(b) of section 5739.01 of the2209
Revised Code;2210

       (32) The sale, lease, repair, and maintenance of, parts for,2211
or items attached to or incorporated in, motor vehicles that are2212
primarily used for transporting tangible personal property by a2213
person engaged in highway transportation for hire;2214

       (33) Sales to the state headquarters of any veterans'2215
organization in Ohio that is either incorporated and issued a2216
charter by the congress of the United States or is recognized by2217
the United States veterans administration, for use by the2218
headquarters;2219

       (34) Sales to a telecommunications service vendor of2220
tangible personal property and services used directly and2221
primarily in transmitting, receiving, switching, or recording any2222
interactive, two-way electromagnetic communications, including2223
voice, image, data, and information, through the use of any2224
medium, including, but not limited to, poles, wires, cables,2225
switching equipment, computers, and record storage devices and2226
media, and component parts for the tangible personal property. 2227
The exemption provided in division (B)(34) of this section shall2228
be in lieu of all other exceptions under division (E)(2) of2229
section 5739.01 of the Revised Code to which a telecommunications2230
service vendor may otherwise be entitled based upon the use of the2231
thing purchased in providing the telecommunications service.2232

       (35) Sales of investment metal bullion and investment coins.2233
"Investment metal bullion" means any elementary precious metal2234
that has been put through a process of smelting or refining,2235
including, but not limited to, gold, silver, platinum, and2236
palladium, and which is in such state or condition that its value2237
depends upon its content and not upon its form. "Investment metal2238
bullion" does not include fabricated precious metal that has been2239
processed or manufactured for one or more specific and customary2240
industrial, professional, or artistic uses. "Investment coins"2241
means numismatic coins or other forms of money and legal tender2242
manufactured of gold, silver, platinum, palladium, or other metal2243
under the laws of the United States or any foreign nation with a2244
fair market value greater than any statutory or nominal value of2245
such coins.2246

       (36)(a) Sales where the purpose of the consumer is to use or2247
consume the things transferred in making retail sales and2248
consisting of newspaper inserts, catalogues, coupons, flyers, gift2249
certificates, or other advertising material that prices and2250
describes tangible personal property offered for retail sale.2251

       (b) Sales to direct marketing vendors of preliminary2252
materials such as photographs, artwork, and typesetting that will2253
be used in printing advertising material; of printed matter that2254
offers free merchandise or chances to win sweepstake prizes and2255
that is mailed to potential customers with advertising material2256
described in division (B)(36)(a) of this section; and of equipment2257
such as telephones, computers, facsimile machines, and similar2258
tangible personal property primarily used to accept orders for2259
direct marketing retail sales.2260

       (c) Sales of automatic food vending machines that preserve2261
food with a shelf life of forty-five days or less by refrigeration2262
and dispense it to the consumer.2263

       For purposes of division (B)(36) of this section, "direct2264
marketing" means the method of selling where consumers order2265
tangible personal property by United States mail, delivery2266
service, or telecommunication and the vendor delivers or ships the2267
tangible personal property sold to the consumer from a warehouse,2268
catalogue distribution center, or similar fulfillment facility by2269
means of the United States mail, delivery service, or common2270
carrier.2271

       (37) Sales to a person engaged in the business of2272
horticulture or producing livestock of materials to be2273
incorporated into a horticulture structure or livestock structure;2274

       (38) The sale of a motor vehicle that is used exclusively2275
for a vanpool ridesharing arrangement to persons participating in2276
the vanpool ridesharing arrangement when the vendor is selling the2277
vehicle pursuant to a contract between the vendor and the2278
department of transportation;2279

       (39) Sales of personal computers, computer monitors,2280
computer keyboards, modems, and other peripheral computer2281
equipment to an individual who is licensed or certified to teach2282
in an elementary or a secondary school in this state for use by2283
that individual in preparation for teaching elementary or2284
secondary school students;2285

       (40) Sales to a professional racing team of any of the2286
following:2287

       (a) Motor racing vehicles;2288

       (b) Repair services for motor racing vehicles;2289

       (c) Items of property that are attached to or incorporated2290
in motor racing vehicles, including engines, chassis, and all2291
other components of the vehicles, and all spare, replacement, and2292
rebuilt parts or components of the vehicles; except not including2293
tires, consumable fluids, paint, and accessories consisting of2294
instrumentation sensors and related items added to the vehicle to2295
collect and transmit data by means of telemetry and other forms of2296
communication.2297

       (41) Sales of used manufactured homes and used mobile homes,2298
as defined in section 5739.0210 of the Revised Code, made on or2299
after January 1, 2000;2300

       (42) Sales of tangible personal property and services to a2301
provider of electricity used or consumed directly and primarily in2302
generating, transmitting, or distributing electricity for use by2303
others, including property that is or is to be incorporated into2304
and will become a part of the consumer's production, transmission,2305
or distribution system and that retains its classification as2306
tangible personal property after incorporation; fuel or power used2307
in the production, transmission, or distribution of electricity;2308
and tangible personal property and services used in the repair and2309
maintenance of the production, transmission, or distribution2310
system, including only those motor vehicles as are specially2311
designed and equipped for such use. The exemption provided in2312
this division shall be in lieu of all other exceptions in division2313
(E)(2) of section 5739.01 of the Revised Code to which a provider2314
of electricity may otherwise be entitled based on the use of the2315
tangible personal property or service purchased in generating,2316
transmitting, or distributing electricity.2317

       For the purpose of the proper administration of this chapter,2318
and to prevent the evasion of the tax, it is presumed that all2319
sales made in this state are subject to the tax until the contrary2320
is established.2321

       As used in this section, except in division (B)(16) of this2322
section, "food" includes cereals and cereal products, milk and2323
milk products including ice cream, meat and meat products, fish2324
and fish products, eggs and egg products, vegetables and vegetable2325
products, fruits, fruit products, and pure fruit juices,2326
condiments, sugar and sugar products, coffee and coffee2327
substitutes, tea, and cocoa and cocoa products. It does not2328
include: spirituous or malt liquors; soft drinks; sodas and2329
beverages that are ordinarily dispensed at bars and soda fountains2330
or in connection therewith, other than coffee, tea, and cocoa;2331
root beer and root beer extracts; malt and malt extracts; mineral2332
oils, cod liver oils, and halibut liver oil; medicines, including2333
tonics, vitamin preparations, and other products sold primarily2334
for their medicinal properties; and water, including mineral,2335
bottled, and carbonated waters, and ice.2336

       (C) The levy of an excise tax on transactions by which2337
lodging by a hotel is or is to be furnished to transient guests2338
pursuant to this section and division (B) of section 5739.01 of2339
the Revised Code does not prevent any of the following:2340

       (1) A municipal corporation or township from levying an2341
excise tax for any lawful purpose not to exceed three per cent on2342
transactions by which lodging by a hotel is or is to be furnished2343
to transient guests in addition to the tax levied by this section.2344
If a municipal corporation or township repeals a tax imposed under2345
division (C)(1) of this section and a county in which the2346
municipal corporation or township has territory has a tax imposed2347
under division (C) of section 5739.024 of the Revised Code in2348
effect, the municipal corporation or township may not reimpose its2349
tax as long as that county tax remains in effect. A municipal2350
corporation or township in which a tax is levied under division2351
(B)(2) of section 351.021 of the Revised Code may not increase the2352
rate of its tax levied under division (C)(1) of this section to2353
any rate that would cause the total taxes levied under both of2354
those divisions to exceed three per cent on any lodging2355
transaction within the municipal corporation or township.2356

       (2) A municipal corporation or a township from levying an2357
additional excise tax not to exceed three per cent on such2358
transactions pursuant to division (B) of section 5739.024 of the2359
Revised Code. Such tax is in addition to any tax imposed under2360
division (C)(1) of this section.2361

       (3) A county from levying an excise tax pursuant to division2362
(A) of section 5739.024 of the Revised Code.2363

       (4) A county from levying an excise tax not to exceed three2364
per cent of such transactions pursuant to division (C) of section2365
5739.024 of the Revised Code. Such a tax is in addition to any2366
tax imposed under division (C)(3) of this section.2367

       (5) A convention facilities authority, as defined in2368
division (A) of section 351.01 of the Revised Code, from levying2369
the excise taxes provided for in division (B) of section 351.0212370
of the Revised Code.2371

       (6) A county from levying an excise tax not to exceed one2372
and one-half per cent of such transactions pursuant to division2373
(D) of section 5739.024 of the Revised Code. Such tax is in2374
addition to any tax imposed under division (C)(3) or (4) of this2375
section.2376

       (7) A county from levying an excise tax not to exceed one2377
and one-half per cent of such transactions pursuant to division2378
(E) of section 5739.024 of the Revised Code. Such a tax is in2379
addition to any tax imposed under division (C)(3), (4), or (6) of2380
this section.2381

       (D) The levy of this tax on retail sales of recreation and2382
sports club service shall not prevent a municipal corporation from2383
levying any tax on recreation and sports club dues or on any2384
income generated by recreation and sports club dues.2385

       Sec. 5739.03. (A) Except as provided in section 5739.05 of2386
the Revised Code, the tax imposed by or pursuant to section2387
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code shall2388
be paid by the consumer to the vendor, and each vendor shall2389
collect from the consumer, as a trustee for the state of Ohio, the2390
full and exact amount of the tax payable on each taxable sale, in2391
the manner and at the times provided as follows:2392

       (A)(1) If the price is, at or prior to the provision of the2393
service or the delivery of possession of the thing sold to the2394
consumer, paid in currency passed from hand to hand by the2395
consumer or the consumer's agent to the vendor or the vendor's2396
agent, the vendor or the vendor's agent shall collect the tax with2397
and at the same time as the price;2398

       (B)(2) If the price is otherwise paid or to be paid, the2399
vendor or the vendor's agent shall, at or prior to the provision2400
of the service or the delivery of possession of the thing sold to2401
the consumer, charge the tax imposed by or pursuant to section2402
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code to2403
the account of the consumer, which amount shall be collected by2404
the vendor from the consumer in addition to the price. Such sale2405
shall be reported on and the amount of the tax applicable thereto2406
shall be remitted with the return for the period in which the sale2407
is made, and the amount of the tax shall become a legal charge in2408
favor of the vendor and against the consumer.2409

       (B)(1) If any sale is claimed to be exempt under division2410
(E) of section 5739.01 of the Revised Code or under section2411
5739.02 of the Revised Code, with the exception of divisions2412
(B)(1) to (11) or (28) of section 5739.02 of the Revised Code, the2413
consumer must furnishprovide to the vendor, and the vendor must2414
obtain from the consumer, a certificate specifying the reason that2415
the sale is not legally subject to the tax. The certificate shall2416
be provided either in a hard copy form or electronic form, as2417
prescribed by the tax commissioner. If the transaction is claimed2418
to be exempt under division (B)(13) of section 5739.02 of the2419
Revised Code, the exemption certificate shall be signedprovided2420
by both the contractor and the contractee and such. Such2421
contractee shall be deemed to be the consumer of all items2422
purchased under such claim of exemption in the eventif it is2423
subsequently determined that the exemption is not properly2424
claimed. The certificate shall be in such form as the tax2425
commissioner by regulation prescribes. If2426

       (2) The vendor shall maintain records, including exemption2427
certificates, of all sales on which a consumer has claimed an2428
exemption, and provide them to the tax commissioner on request.2429

        (3) The tax commissioner may establish an identification2430
system whereby the commissioner issues an identification number to2431
a consumer that is exempt from payment of the tax. The consumer2432
must present the number to the vendor if any sale is claimed to be2433
exempt as provided in this section.2434

        (4) If no certificate is furnishedprovided or obtained2435
within the period for filing the return for the period in which2436
such sale is consummated, it shall be presumed that the tax2437
applies. The Failure to have so furnishedprovided, or to have so2438
obtained, a certificate shall not prevent a vendor or consumer2439
from establishing that the sale is not subjuctsubject to the tax2440
within sixty one hundred twenty days of the giving of notice by2441
the commissioner of intention to levy an assassmentassessment, in2442
which event the tax shall not apply.2443

       (5) Certificates need not be obtained nor furnishedprovided2444
where the identity of the consumer is such that the transaction is2445
never subject to the tax imposed or where the item of tangible2446
personal property sold or the service provided is never subject to2447
the tax imposed, regardless of use, or when the sale is in2448
interstate commerce.2449

       (C) As used in this division, "contractee" means a person2450
who seeks to enter or enters into a contract or agreement with a2451
contractor or vendor for the construction of real property or for2452
the sale and installation onto real property of tangible personal2453
property.2454

       Any contractor or vendor may request from any contractee a2455
certification of what portion of the property to be transferred2456
under such contract or agreement is to be incorporated into the2457
realty and what portion will retain its status as tangible2458
personal property after installation is completed. The contractor2459
or vendor shall request the certification by certified mail2460
delivered to the contractee, return receipt requested. Upon2461
receipt of such request and prior to entering into the contract or2462
agreement, the contractee shall furnishprovide to the contractor2463
or vendor a certification sufficiently detailed to enable the2464
contractor or vendor to ascertain the resulting classification of2465
all materials purchased or fabricated by the contractor or vendor2466
and transferred to the contractee. This requirement applies to a2467
contractee regardless of whether the contractee holds a direct2468
payment permit under section 5739.031 of the Revised Code or2469
furnishesprovides to the contractor or vendor an exemption2470
certificate as provided under this section.2471

       For the purposes of the taxes levied by this chapter and2472
Chapter 5741. of the Revised Code, the contractor or vendor may in2473
good faith rely on the contractee's certification. Notwithstanding2474
division (B) of section 5739.01 of the Revised Code, if the tax2475
commissioner determines that certain property certified by the2476
contractee as tangible personal property pursuant to this division2477
is, in fact, real property, the contractee shall be considered to2478
be the consumer of all materials so incorporated into that real2479
property and shall be liable for the applicable tax, and the2480
contractor or vendor shall be excused from any liability on those2481
materials.2482

       If a contractee fails to provide such certification upon the2483
request of the contractor or vendor, the contractor or vendor2484
shall comply with the provisions of this chapter and Chapter 5741.2485
of the Revised Code without the certification. If the tax2486
commissioner determines that such compliance has been performed in2487
good faith and that certain property treated as tangible personal2488
property by the contractor or vendor is, in fact, real property,2489
the contractee shall be considered to be the consumer of all2490
materials so incorporated into that real property and shall be2491
liable for the applicable tax, and the construction contractor or2492
vendor shall be excused from any liability on those materials.2493

       This division does not apply to any contract or agreement2494
where the tax commissioner determines as a fact that a2495
certification under this division was made solely on the decision2496
or advice of the contractor or vendor.2497

       (D) Notwithstanding division (B) of section 5739.01 of the2498
Revised Code, whenever the total rate of tax imposed under this2499
chapter is increased after the date after a construction contract2500
is entered into, the contractee shall reimburse the construction2501
contractor for any additional tax paid on tangible property2502
consumed or services received pursuant to the contract.2503

       (E) A vendor who files a petition for reassessment2504
contesting the assessment of tax on sales for which the vendor2505
obtained no valid exemption certificates and for which the vendor2506
failed to establish that the sales were properly not subject to2507
the tax during the one-hundred-twenty-day period allowed under2508
division (B) of this section, may present to the tax commissioner2509
additional evidence to prove that the sales were properly subject2510
to a claim of exception or exemption. The vendor shall file such2511
evidence within ninety days of the receipt by the vendor of the2512
notice of assessment, except that, upon application and for2513
reasonable cause, the period for submitting such evidence shall be2514
extended thirty days.2515

       The commissioner shall consider such additional evidence in2516
reaching the final determination on the assessment and petition2517
for reassessment.2518

       (F) Whenever a vendor refunds to the consumer the full price2519
of an item of tangible personal property on which the tax imposed2520
under this chapter has been paid, the vendor shall also refund the2521
full amount of the tax paid.2522

       Sec. 5739.033.  The amount of tax due pursuant to sections2523
5739.02, 5739.021, 5739.023, and 5739.026 of the Revised Code is2524
the sum of the taxes imposed pursuant to those sections at the2525
situs of the consummation of the sale as determined under this2526
section.2527

       (A) Except as otherwise provided in this section and,2528
division (C) of section 5739.031, and section 5739.034 of the2529
Revised Code, all sales are conclusively determined to be2530
consummated at the vendor's place of business.2531

       (1) If the consumer or the consumer's agent takes possession2532
of the tangible personal property at a place of business of the2533
vendor where the purchase contract or agreement was made, the sale2534
is consummated at that place of business.2535

       (2) If the consumer or the consumer's agent takes possession2536
of the tangible personal property other than at a place of2537
business of the vendor, or takes possession at a warehouse or2538
similar facility of the vendor, the sale is consummated at the2539
vendor's place of business where the purchase contract or2540
agreement was made or the purchase order was received.2541

       (3) If the vendor provides a service specified in division2542
(B)(3)(a), (b), (c), (d), (n), or (o) of section 5739.01 of the2543
Revised Code, the sale is consummated at the vendor's place of2544
business where the service is performed or the contract or2545
agreement for the service was made or the purchase order was2546
received.2547

       (B) If the vendor is a transient vendor as specified in2548
division (B) of section 5739.17 of the Revised Code, the sale is2549
conclusively determined to be consummated at the vendor's2550
temporary place of business or, if the transient vendor is the2551
lessor of titled motor vehicles, titled watercraft, or titled2552
outboard motors, at the location where the lessee keeps the leased2553
property.2554

       (C) If the vendor makes sales of tangible personal property2555
from a stock of goods carried in a motor vehicle, from which the2556
purchaser makes selection and takes possession, or from which the2557
vendor sells tangible personal property the quantity of which has2558
not been determined prior to the time the purchaser takes2559
possession, the sale is conclusively determined to be consummated2560
at the location of the motor vehicle when the sale is made.2561

       (D) If the vendor is a delivery vendor as specified in2562
division (D) of section 5739.17 of the Revised Code, the sale is2563
conclusively determined to be consummated at the place where the2564
tangible personal property is delivered, where the leased property2565
is used, or where the service is performed or received.2566

       (E) If the vendor provides a service specified in division2567
(B)(3)(e), (g), (h), (j), (k), (l), or (m) of section 5739.01 of2568
the Revised Code, the sale is conclusively determined to be2569
consummated at the location of the consumer where the service is2570
performed or received.2571

       (F) Except as provided in division (I) of this section, if2572
the vendor provides a service specified in division (B)(3)(f) or2573
(i) of section 5739.01 of the Revised Code, the sale is2574
conclusively determined to be consummated at the location of the2575
telephone number or account as reflected in the records of the2576
vendor. If, in the case of a telecommunications service, the2577
telephone number or account is located outside this state, the2578
sale is conclusively determined to be consummated at the location2579
in this state from which the service originated.2580

       (G) If the vendor provides lodging to transient guests as2581
specified in division (B)(2) of section 5739.01 of the Revised2582
Code, the sale is conclusively determined to be consummated at the2583
location where the lodging is located.2584

       (H) If the vendor sells a warranty, maintenance or service2585
contract, or similar agreement as specified in division (B)(7) of2586
section 5739.01 of the Revised Code and the vendor is a delivery2587
vendor, the sale is conclusively determined to be consummated at2588
the location of the consumer. If the vendor is not a delivery2589
vendor, the sale is conclusively determined to be consummated at2590
the vendor's place of business where the contract or agreement was2591
made, unless the warranty or contract is a component of the sale2592
of a titled motor vehicle, titled watercraft, or titled outboard2593
motor, in which case the sale is conclusively determined to be2594
consummated in the county of titling.2595

       (I) Except as otherwise provided in this division, if the2596
vendor sells a prepaid authorization number or a prepaid telephone2597
calling card, the sale is conclusively determined to be2598
consummated at the vendor's place of business and shall be taxed2599
at the time of sale. If the vendor sells a prepaid authorization2600
number or prepaid telephone calling card through a telephone call,2601
electronic commerce, or any other form of remote commerce, the2602
sale is conclusively determined to be made at the consumer's2603
shipping address, or, if there is no item shipped, at the2604
consumer's billing address.2605

       Sec. 5739.034. (A) As used in this section, "customer, 2606
enhanced zip code," "home service provider," "licensed service 2607
area," and "place of primary use" have the same meanings as in the 2608
"Mobile Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 2609
Stat. 631 (2000), 4 U.S.C.A. 124, as amended.2610

       (B) Notwithstanding section 5739.033 of the Revised Code, on2611
and after August 1, 2002, if a vendor provides mobile2612
telecommunications service, the situs of all sales of that service2613
is the residential or business street address that is the2614
customer's place of primary use of the service that is within the2615
licensed service area of the home service provider, regardless of 2616
whether such mobile telecommunications service originates, 2617
terminates, or passes through this state. No mobile 2618
telecommunications service provided to a customer with a place of 2619
primary use outside this state shall be subject to taxes, charges, 2620
or fees imposed in this state. The situs of all sales of mobile 2621
telecommunications service shall be determined under the "Mobile 2622
Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 Stat. 2623
626-632 (2000), 4 U.S.C.A. 116-126, as amended.2624

       (C) Pursuant to 4 U.S.C.A. 123, when otherwise taxable and 2625
nontaxable charges for mobile telecommunications service are 2626
aggregated, the charges for nontaxable mobile telecommunications 2627
service shall be subject to taxation, unless the home service 2628
provider can reasonably identify charges not subject to taxation 2629
from its books and records that are kept in the regular course of 2630
business.2631

       (D) The tax commissioner may provide a home service provider 2632
with an electronic database that meets the requirements of 4 2633
U.S.C.A. 119. If such database is provided, a home service 2634
provider shall be held harmless from any tax, charge, or fee 2635
liability for errors or omissions due solely to reliance on the 2636
data contained in the database, subject to 4 U.S.C.A. 119 and 121. 2637
If no electronic database is provided by the commissioner, a home 2638
service provider may use an enhanced zip code to assign each 2639
street address to a specific taxing jurisdiction, and the provider 2640
shall be held harmless from any tax, charge, or fee liability in 2641
this state that otherwise would be due solely as a result of an 2642
assignment of a street address to an incorrect taxing 2643
jurisdiction, subject to 4 U.S.C.A. 120 and 121.2644

       (E) The tax commissioner shall require a home service 2645
provider to obtain and maintain a customer's place of primary use 2646
and shall allow the home service provider to rely on this address 2647
as provided under 4 U.S.C.A. 122. The commissioner may correct 2648
the place of primary use, or correct the assignment of a taxing 2649
jurisdiction by a home service provider, in accordance with 4 2650
U.S.C.A. 121.2651

       Sec. 5739.08. The levy of an excise tax on transactions by2652
which lodging by a hotel is or is to be furnished to transient2653
guests pursuant to section 5739.02 and division (B) of section2654
5739.01 of the Revised Code does not prevent any of the following:2655

       (A) A municipal corporation or township from levying an2656
excise tax for any lawful purpose not to exceed three per cent on2657
transactions by which lodging by a hotel is or is to be furnished2658
to transient guests in addition to the tax levied by section2659
5739.02 of the Revised Code. If a municipal corporation or2660
township repeals a tax imposed under division (A) of this section,2661
and a county in which the municipal corporation or township has2662
territory has a tax imposed under division (C) of section 5739.092663
of the Revised Code in effect, the municipal corporation or2664
township may not reimpose its tax as long as that county tax2665
remains in effect. A municipal corporation or township in which a2666
tax is levied under division (B)(2) of section 351.021 of the2667
Revised Code may not increase the rate of its tax levied under2668
division (A) of this section to any rate that would cause the2669
total taxes levied under both of those divisions to exceed three2670
per cent on any lodging transaction within the municipal2671
corporation or township.2672

       (B) A municipal corporation or a township from levying an2673
additional excise tax not to exceed three per cent on such2674
transactions pursuant to division (B) of section 5739.09 of the2675
Revised Code. Such tax is in addition to any tax imposed under2676
division (A) of this section.2677

       (C) A county from levying an excise tax pursuant to division2678
(A) of section 5739.09 of the Revised Code;2679

       (D) A county from levying an excise tax not to exceed three2680
per cent of such transactions pursuant to division (C) of section2681
5739.09 of the Revised Code. Such a tax is in addition to any tax2682
imposed under division (C) of this section.2683

       (E) A convention facilities authority, as defined in2684
division (A) of section 351.01 of the Revised Code, from levying2685
the excise taxes provided for in division (B) of section 351.0212686
of the Revised Code;2687

       (F) A county from levying an excise tax not to exceed one2688
and one-half per cent of such transactions pursuant to division2689
(D) of section 5739.09 of the Revised Code. Such tax is in2690
addition to any tax imposed under division (C) or (D) of this2691
section.2692

       (G) A county from levying an excise tax not to exceed one2693
and one-half per cent of such transactions pursuant to division2694
(E) of section 5739.09 of the Revised Code. Such a tax is in2695
addition to any tax imposed under division (C), (D), or (F) of2696
this section.2697

       Sec. 5739.024.        Sec. 5739.09.  (A)(1) A board of county2698
commissioners may, by resolution adopted by a majority of the2699
members of the board, levy an excise tax not to exceed three per2700
cent on transactions by which lodging by a hotel is or is to be2701
furnished to transient guests. The board shall establish all2702
regulations necessary to provide for the administration and2703
allocation of the tax. The regulations may prescribe the time for2704
payment of the tax, and may provide for the imposition of a2705
penalty or interest, or both, for late payments, provided that the2706
penalty does not exceed ten per cent of the amount of tax due, and2707
the rate at which interest accrues does not exceed the rate per2708
annum prescribed pursuant to section 5703.47 of the Revised Code. 2709
Except as provided in divisions (A)(2) and (3) of this section,2710
the regulations shall provide, after deducting the real and actual2711
costs of administering the tax, for the return to each municipal2712
corporation or township that does not levy an excise tax on such2713
transactions, a uniform percentage of the tax collected in the2714
municipal corporation or in the unincorporated portion of the2715
township from each such transaction, not to exceed thirty-three2716
and one-third per cent. The remainder of the revenue arising from2717
the tax shall be deposited in a separate fund and shall be spent2718
solely to make contributions to the convention and visitors'2719
bureau operating within the county, including a pledge and2720
contribution of any portion of such remainder pursuant to an2721
agreement authorized by section 307.695 of the Revised Code. 2722
Except as provided in division (A)(2) or (3) of this section, on2723
and after May 10, 1994, a board of county commissioners may not2724
levy an excise tax pursuant to this division in any municipal2725
corporation or township located wholly or partly within the county2726
that has in effect an ordinance or resolution levying an excise2727
tax pursuant to division (B) of this section. The board of a2728
county that has levied a tax under division (C) of this section2729
may, by resolution adopted within ninety days after July 15, 1985,2730
by a majority of the members of the board, amend the resolution2731
levying a tax under this division to provide for a portion of that2732
tax to be pledged and contributed in accordance with an agreement2733
entered into under section 307.695 of the Revised Code. A tax,2734
any revenue from which is pledged pursuant to such an agreement,2735
shall remain in effect at the rate at which it is imposed for the2736
duration of the period for which the revenue therefrom has been so2737
pledged.2738

       (2) A board of county commissioners that levies an excise2739
tax under division (A)(1) of this section on June 30, 1997, at a2740
rate of three per cent, and that has pledged revenue from the tax2741
to an agreement entered into under section 307.695 of the Revised2742
Code, may amend the resolution levying that tax to provide for an2743
increase in the rate of the tax up to five per cent on each2744
transaction; to provide that revenue from the increase in the rate2745
shall be spent solely to make contributions to the convention and2746
visitors' bureau operating within the county to be used2747
specifically for promotion, advertising, and marketing of the2748
region in which the county is located; to provide that the rate in2749
excess of the three per cent levied under division (A)(1) of this2750
section shall remain in effect at the rate at which it is imposed2751
for the duration of the period during which any agreement is in2752
effect that was entered into under section 307.695 of the Revised2753
Code by the board of county commissioners levying a tax under2754
division (A)(1) of this section; and to provide that no portion of2755
that revenue need be returned to townships or municipal2756
corporations as would otherwise be required under division (A)(1)2757
of this section.2758

       (3) A board of county commissioners that levies a tax under2759
division (A)(1) of this section on March 18, 1999, at a rate of2760
three per cent may, by resolution adopted not later than2761
forty-five days after March 18, 1999, amend the resolution2762
levying the tax to provide for all of the following:2763

       (a) That the rate of the tax shall be increased by not more2764
than an additional four per cent on each transaction;2765

       (b) That all of the revenue from the increase in the rate2766
shall be pledged and contributed to a convention facilities2767
authority established by the board of county commissioners under2768
Chapter 351. of the Revised Code on or before November 15, 1998,2769
and used to pay costs of constructing, maintaining, operating, and2770
promoting a facility in the county, including paying bonds, or2771
notes issued in anticipation of bonds, as provided by that2772
chapter;2773

       (c) That no portion of the revenue arising from the increase2774
in rate need be returned to municipal corporations or townships as2775
otherwise required under division (A)(1) of this section;2776

       (d) That the increase in rate shall not be subject to2777
diminution by initiative or referendum or by law while any bonds,2778
or notes in anticipation of bonds, issued by the authority under2779
Chapter 351. of the Revised Code to which the revenue is pledged,2780
remain outstanding in accordance with their terms, unless2781
provision is made by law or by the board of county commissioners2782
for an adequate substitute therefor that is satisfactory to the2783
trustee if a trust agreement secures the bonds.2784

       Division (A)(3) of this section does not apply to the board2785
of county commissioners of any county in which a convention center2786
or facility exists or is being constructed on November 15, 1998,2787
or of any county in which a convention facilities authority levies2788
a tax pursuant to section 351.021 of the Revised Code on that2789
date.2790

       As used in division (A)(3) of this section, "costs" and2791
"facility" have the same meanings as in section 351.01 of the2792
Revised Code, and "convention center" has the same meaning as in2793
section 307.695 of the Revised Code.2794

       (B) The legislative authority of a municipal corporation or2795
the board of trustees of a township that is not wholly or partly2796
located in a county that has in effect a resolution levying an2797
excise tax pursuant to division (A)(1) of this section may by2798
ordinance or resolution levy an excise tax not to exceed three per2799
cent on transactions by which lodging by a hotel is or is to be2800
furnished to transient guests. The legislative authority of the2801
municipal corporation or township shall deposit at least fifty per2802
cent of the revenue from the tax levied pursuant to this division2803
into a separate fund, which shall be spent solely to make2804
contributions to convention and visitors' bureaus operating within2805
the county in which the municipal corporation or township is2806
wholly or partly located, and the balance of such revenue shall be2807
deposited in the general fund. The municipal corporation or2808
township shall establish all regulations necessary to provide for2809
the administration and allocation of the tax. The regulations may2810
prescribe the time for payment of the tax, and may provide for the2811
imposition of a penalty or interest, or both, for late payments,2812
provided that the penalty does not exceed ten per cent of the2813
amount of tax due, and the rate at which interest accrues does not2814
exceed the rate per annum prescribed pursuant to section 5703.472815
of the Revised Code. The levy of a tax under this division is in2816
addition to any tax imposed on the same transaction by a municipal2817
corporation or a township as authorized by division (C)(1)(A) of2818
section 5739.025739.08 of the Revised Code.2819

       (C) For the purpose of making the payments authorized by2820
section 307.695 of the Revised Code to construct and equip a2821
convention center in the county and to cover the costs of2822
administering the tax, a board of county commissioners of a county2823
where a tax imposed under division (A)(1) of this section is in2824
effect may, by resolution adopted within ninety days after July2825
15, 1985, by a majority of the members of the board, levy an2826
additional excise tax not to exceed three per cent on transactions2827
by which lodging by a hotel is or is to be furnished to transient2828
guests. The tax authorized by this division shall be in addition2829
to any tax that is levied pursuant to division (A) of this2830
section, but it shall not apply to transactions subject to a tax2831
levied by a municipal corporation or township pursuant to the2832
authorization granted by division (C)(1)(A) of section 5739.022833
5739.08 of the Revised Code. The board shall establish all2834
regulations necessary to provide for the administration and2835
allocation of the tax. The regulations may prescribe the time for2836
payment of the tax, and may provide for the imposition of a2837
penalty or interest, or both, for late payments, provided that the2838
penalty does not exceed ten per cent of the amount of tax due, and2839
the rate at which interest accrues does not exceed the rate per2840
annum prescribed pursuant to section 5703.47 of the Revised Code.2841
All revenues arising from the tax shall be expended in accordance2842
with section 307.695 of the Revised Code. A tax imposed under2843
this section shall remain in effect at the rate at which it is2844
imposed for the duration of the period for which the revenue2845
therefrom has been pledged pursuant to such section.2846

       (D) For the purpose of providing contributions under2847
division (B)(1) of section 307.671 of the Revised Code to enable2848
the acquisition, construction, and equipping of a port authority2849
educational and cultural facility in the county and, to the extent2850
provided for in the cooperative agreement authorized by that2851
section, for the purpose of paying debt service charges on bonds,2852
or notes in anticipation thereof, described in division (B)(1)(b)2853
of that section, a board of county commissioners, by resolution2854
adopted within ninety days after December 22, 1992, by a majority2855
of the members of the board, may levy an additional excise tax not2856
to exceed one and one-half per cent on transactions by which2857
lodging by a hotel is or is to be furnished to transient guests.2858
The excise tax authorized by this division shall be in addition to2859
any tax that is levied pursuant to divisions (A), (B), and (C) of2860
this section, to any excise tax levied pursuant to division (C) of2861
section 5739.025739.08 of the Revised Code, and to any excise tax2862
levied pursuant to section 351.021 of the Revised Code. The board2863
of county commissioners shall establish all regulations necessary2864
to provide for the administration and allocation of the tax that2865
are not inconsistent with this section or section 307.671 of the2866
Revised Code. The regulations may prescribe the time for payment2867
of the tax, and may provide for the imposition of a penalty or2868
interest, or both, for late payments, provided that the penalty2869
does not exceed ten per cent of the amount of tax due, and the2870
rate at which interest accrues does not exceed the rate per annum2871
prescribed pursuant to section 5703.47 of the Revised Code. All2872
revenues arising from the tax shall be expended in accordance with2873
section 307.671 of the Revised Code and division (D) of this2874
section. The levy of a tax imposed under this section may not2875
commence prior to the first day of the month next following the2876
execution of the cooperative agreement authorized by section2877
307.671 of the Revised Code by all parties to that agreement. Such2878
tax shall remain in effect at the rate at which it is imposed for2879
the period of time described in division (C) of section 307.671 of2880
the Revised Code for which the revenue from the tax has been2881
pledged by the county to the corporation pursuant to such section,2882
but, to any extent provided for in the cooperative agreement, for2883
no lesser period than the period of time required for payment of2884
the debt service charges on bonds, or notes in anticipation2885
thereof, described in division (B)(1)(b) of that section.2886

       (E) For the purpose of paying the costs of acquiring,2887
constructing, equipping, and improving a municipal educational and2888
cultural facility, including debt service charges on bonds2889
provided for in division (B) of section 307.672 of the Revised2890
Code, and for such additional purposes as are determined by the2891
county in the resolution levying the tax or amendments thereto,2892
including subsequent amendments providing for paying costs of2893
acquiring, constructing, renovating, rehabilitating, equipping,2894
and improving a port authority educational and cultural performing2895
arts facility, as defined in section 307.674 of the Revised Code,2896
including debt service charges on bonds provided for in division2897
(B) of section 307.674 of the Revised Code, the legislative2898
authority of a county, by resolution adopted within ninety days2899
after June 30, 1993, by a majority of the members of the2900
legislative authority, may levy an additional excise tax not to2901
exceed one and one-half per cent on transactions by which lodging2902
by a hotel is or is to be furnished to transient guests. The2903
excise tax authorized by this division shall be in addition to any2904
tax that is levied pursuant to divisions (A), (B), (C), and (D) of2905
this section, to any excise tax levied pursuant to division (C) of2906
section 5739.025739.08 of the Revised Code, and to any excise tax2907
levied pursuant to section 351.021 of the Revised Code. The2908
legislative authority of the county shall establish all2909
regulations necessary to provide for the administration and2910
allocation of the tax. The regulations may prescribe the time for2911
payment of the tax, and may provide for the imposition of a2912
penalty or interest, or both, for late payments, provided that the2913
penalty does not exceed ten per cent of the amount of tax due, and2914
the rate at which interest accrues does not exceed the rate per2915
annum prescribed pursuant to section 5703.47 of the Revised Code.2916
All revenues arising from the tax shall be expended in accordance2917
with section 307.672 of the Revised Code and division (E) of this2918
section. The levy of a tax imposed under this division shall not2919
commence prior to the first day of the month next following the2920
execution of the cooperative agreement authorized by section2921
307.672 of the Revised Code by all parties to that agreement. Such2922
tax shall remain in effect at the rate at which it is imposed for2923
the period of time determined by the legislative authority of the2924
county, but not to exceed fifteen years.2925

       (F) The legislative authority of a county that has levied a2926
tax under division (E) of this section may, by resolution adopted2927
within one hundred eighty days after January 4, 2001, by a2928
majority of the members of the legislative authority, amend the2929
resolution levying a tax under division (E) of this section to2930
provide for the use of the proceeds of that tax, to the extent2931
that it is no longer needed for its original purpose as determined2932
by the parties to a cooperative agreement amendment pursuant to2933
division (D) of section 307.672 of the Revised Code, to pay costs2934
of acquiring, constructing, renovating, rehabilitating, equipping,2935
and improving a port authority educational and cultural performing2936
arts facility, including debt service charges on bonds provided2937
for in division (B) of section 307.674 of the Revised Code, and to2938
pay all obligations under any guaranty agreements, reimbursement2939
agreements, or other credit enhancement agreements described in2940
division (C) of section 307.674 of the Revised Code. The2941
resolution may also provide for the extension of the tax at the2942
same rate for the longer of the period of time determined by the2943
legislative authority of the county, but not to exceed an2944
additional twenty-five years, or the period of time required to2945
pay all debt service charges on bonds provided for in division (B)2946
of section 307.672 of the Revised Code and on port authority2947
revenue bonds provided for in division (B) of section 307.674 of2948
the Revised Code. All revenues arising from the amendment and2949
extension of the tax shall be expended in accordance with section2950
307.674 of the Revised Code and divisions (E) and (F) of this2951
section.2952

       (G) For purposes of a tax levied by a county, township, or2953
municipal corporation under this section or division (C) of2954
section 5739.025739.08 of the Revised Code, a board of county2955
commissioners, board of township trustees, or the legislative2956
authority of a municipal corporation may adopt a resolution or2957
ordinance at any time specifying that "hotel," as otherwise2958
defined in section 5739.01 of the Revised Code, includes2959
establishments in which fewer than five rooms are used for the2960
accommodation of guests. The resolution or ordinance may apply to2961
a tax imposed pursuant to this section prior to the adoption of2962
the resolution or ordinance if the resolution or ordinance so2963
states, but the tax shall not apply to transactions by which2964
lodging by such an establishment is provided to transient guests2965
prior to the adoption of the resolution or ordinance.2966

       Sec. 5739.31.  (A)(1) No person shall engage in the business2967
of selling at retail or sell at retail incidental to any other2968
regularly conducted business without having a license therefor, as2969
required by sections 5739.01 to 5739.31 of the Revised Code.2970

       (2) No person shall engage in the business of selling at2971
retail as a transient vendor, as defined in division (B) of2972
section 5739.17 of the Revised Code, without first having obtained2973
a license as required by that section.2974

       (3) No person shall engage in the business of selling at2975
retail as a limited vendor as defined in division (B) of section2976
5739.17 of the Revised Code, without first having a license as2977
required by that section.2978

       (B) No person shall continue to engage in the business of2979
selling at retail or sell at retail incidental to any other2980
regularly conducted business after the license issued to that2981
person pursuant to section 5739.17 of the Revised Code has been2982
revoked under section 5739.19 of the Revised Code or while the2983
license is suspended by the tax commissioner under division (B)(2)2984
of section 5739.30 of the Revised Code, nor shall any person2985
obtain a new license from the county auditor or the tax2986
commissioner while such revocation or suspension is in effect. If2987
a corporation's license has been revoked or suspended, none of its2988
officers, or employees having control or supervision of or charged2989
with the responsibility of filing returns and making payments of2990
tax due, shall obtain a license from the county auditor or the tax2991
commissioner during the period of such revocation or suspension.2992

       Sec. 5739.99.  (A) Whoever violates section 5739.26 or2993
5739.29 of the Revised Code shall be fined not less than2994
twenty-five nor more than one hundred dollars for a first offense;2995
for each subsequent offense such person shall, if a corporation,2996
be fined not less than one hundred nor more than five hundred2997
dollars, or if an individual, or a member of a partnership, firm,2998
or association, be fined not less than twenty-five nor more than2999
one hundred dollars, or imprisoned not more than sixty days, or3000
both.3001

       (B) Whoever violates division (A) of section 5739.30 of the3002
Revised Code shall be fined not less than one hundred nor more3003
than one thousand dollars, or imprisoned not more than sixty days,3004
or both.3005

       (C)(1) Whoever violates division (A)(1) of section 5739.313006
of the Revised Code shall be fined not less than twenty-five nor3007
more than one hundred dollars. If the offender previously has3008
been convicted of a violation of division (A)(1) of section3009
5739.31 of the Revised Code, hethe offender is guilty of a felony3010
of the fourth degree.3011

       (2) Whoever violates division (A)(2) of section 5739.31 of3012
the Revised Code shall be fined not less than one hundred dollars3013
nor more than five hundred dollars, or imprisoned for not more3014
than ten days, or both, for the first offense; for each subsequent3015
offense, each such person shall be fined not less than one3016
thousand dollars nor more than twenty-five hundred dollars, or3017
imprisoned not more than thirty days, or both. The motor vehicles3018
and goods of any person charged with violating division (A)(2) of3019
section 5739.31 of the Revised Code may be impounded and held3020
pending the disposition of the charge, and may be sold at auction3021
by the county sheriff in the manner prescribed by law to satisfy3022
any fine imposed by this division.3023

       (3) Whoever violates division (A)(3) of section 5739.31 of3024
the Revised Code shall be fined not less than twenty-five nor more3025
than one hundred dollars.3026

       (4)(3) Whoever violates division (B) of section 5739.31 of3027
the Revised Code is guilty of a felony of the fourth degree. Each3028
day that business is conducted while a vendor's license is3029
suspended or revoked constitutes a separate offense.3030

       (D) Except as otherwise provided in this section, whoever3031
violates sections 5739.01 to 5739.31 of the Revised Code, or any3032
lawful rule promulgated by the department of taxation under3033
authority of such sections, shall be fined not less than3034
twenty-five nor more than one hundred dollars.3035

       (E) Whoever violates section 5739.12 of the Revised Code by3036
failing to remit to the state the tax collected under section3037
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code is3038
guilty of a felony of the fourth degree and shall suffer the loss3039
of histhe person's vendor's license as required by section3040
5739.17 of the Revised Code. A person shall not be eligible for a3041
vendor's license for two years following conviction.3042

       (F) Whoever violates division (D)(E) of section 5739.17 of3043
the Revised Code is guilty of failure to display a transient or3044
limited vendor's license, a minor misdemeanor. A sheriff or3045
police officer in a municipal corporation may enforce this3046
division. The prosecuting attorney of a county shall inform the3047
tax commissioner of any instance when a complaint is brought3048
against a transient or limited vendor pursuant to this division.3049

       (G) Whoever violates section 5739.103 of the Revised Code3050
shall be fined not less than twenty-five nor more than one hundred3051
dollars. If the offender previously has been convicted of3052
violating that section, hethe offender is guilty of a felony of3053
the fourth degree.3054

       (H) The penalties provided in this section are in addition3055
to any penalties imposed by the tax commissioner under section3056
5739.133 of the Revised Code.3057

       Sec. 5741.02.  (A) For the use of the general revenue fund3058
of the state, an excise tax is hereby levied on the storage, use,3059
or other consumption in this state of tangible personal property3060
or the benefit realized in this state of any service provided. The3061
tax shall be collected pursuant to the schedules in section3062
5739.025 of the Revised Code.3063

       (B) Each consumer, storing, using, or otherwise consuming in3064
this state tangible personal property or realizing in this state3065
the benefit of any service provided, shall be liable for the tax,3066
and such liability shall not be extinguished until the tax has3067
been paid to this state; provided, that the consumer shall be3068
relieved from further liability for the tax if the tax has been3069
paid to a seller in accordance with section 5741.04 of the Revised3070
Code or prepaid by the seller in accordance with section 5741.063071
of the Revised Code.3072

       (C) The tax does not apply to the storage, use, or3073
consumption in this state of the following described tangible3074
personal property or services, nor to the storage, use, or3075
consumption or benefit in this state of tangible personal property3076
or services purchased under the following described circumstances:3077

       (1) When the sale of property or service in this state is3078
subject to the excise tax imposed by sections 5739.01 to 5739.313079
of the Revised Code, provided said tax has been paid;3080

       (2) Except as provided in division (D) of this section,3081
tangible personal property or services, the acquisition of which,3082
if made in Ohio, would be a sale not subject to the tax imposed by3083
sections 5739.01 to 5739.31 of the Revised Code;3084

       (3) Property or services, the storage, use, or other3085
consumption of or benefit from which this state is prohibited from3086
taxing by the Constitution of the United States, laws of the3087
United States, or the Constitution of this state. This exemption3088
shall not exempt from the application of the tax imposed by this3089
section the storage, use, or consumption of tangible personal3090
property that was purchased in interstate commerce, but that has3091
come to rest in this state, provided that fuel to be used or3092
transported in carrying on interstate commerce that is stopped3093
within this state pending transfer from one conveyance to another3094
is exempt from the excise tax imposed by this section and section3095
5739.02 of the Revised Code;3096

       (4) Transient use of tangible personal property in this3097
state by a nonresident tourist or vacationer, or a non-business3098
use within this state by a nonresident of this state, if the3099
property so used was purchased outside this state for use outside3100
this state and is not required to be registered or licensed under3101
the laws of this state;3102

       (5) Tangible personal property or services rendered, upon3103
which taxes have been paid to another jurisdiction to the extent3104
of the amount of the tax paid to such other jurisdiction. Where3105
the amount of the tax imposed by this section and imposed pursuant3106
to section 5741.021, 5741.022, or 5741.023 of the Revised Code3107
exceeds the amount paid to another jurisdiction, the difference3108
shall be allocated between the tax imposed by this section and any3109
tax imposed by a county or a transit authority pursuant to section3110
5741.021, 5741.022, or 5741.023 of the Revised Code, in proportion3111
to the respective rates of such taxes.3112

       As used in this subdivision, "taxes paid to another3113
jurisdiction" means the total amount of retail sales or use tax or3114
similar tax based upon the sale, purchase, or use of tangible3115
personal property or services rendered legally, levied by and paid3116
to another state or political subdivision thereof, or to the3117
District of Columbia, where the payment of such tax does not3118
entitle the taxpayer to any refund or credit for such payment.3119

       (6) The transfer of a used manufactured home or used mobile3120
home, as defined by section 5739.0210 of the Revised Code, made on3121
or after January 1, 2000;3122

       (7) Drugs that are or are intended to be distributed free of3123
charge to a practitioner licensed to prescribe, dispense, and3124
administer drugs to a human being in the course of a professional3125
practice and that by law may be dispensed only by or upon the3126
order of such a practitioner.3127

       (D) The tax applies to the storage, use, or other3128
consumption in this state of tangible personal property or3129
services, the acquisition of which at the time of sale was3130
excepted under division (E)(1) of section 5739.01 of the Revised3131
Code from the tax imposed by section 5739.02 of the Revised Code,3132
but which has subsequently been temporarily or permanently stored,3133
used, or otherwise consumed in a taxable manner.3134

       (E)(1) If any transaction is claimed to be exempt under3135
division (E) of section 5739.01 of the Revised Code or under3136
section 5739.02 of the Revised Code, with the exception of3137
divisions (B)(1) to (11) or (28) of section 5739.02 of the Revised3138
Code, the consumer shall furnishprovide to the seller, and the3139
seller shall obtain from the consumer, a certificate specifying3140
the reason that the transaction is not subject to the tax. The3141
certificate shall be provided either in a hard copy form or3142
electronic form, as prescribed by the tax commissioner. If the3143
transaction is claimed to be exempt under division (B)(13) of3144
section 5739.02 of the Revised Code, the exemption certificate3145
shall be signedprovided by both the contractor and contractee,3146
and the. Such contractee shall be deemed to be the consumer of all3147
items purchased under the claim of exemption if it is subsequently3148
determined that the exemption is not properly claimed. The3149
certificate shall be in such form as the tax commissioner by rule3150
prescribes. IfThe seller shall maintain records, including3151
exemption certificates, of all sales on which a consumer has3152
claimed an exemption, and provide them to the tax commissioner on3153
request.3154

       (2) If no certificate is furnishedprovided or obtained3155
within the period for filing the return for the period in which3156
the transaction is consummated, it shall be presumed that the tax3157
applies. The failure to have so furnishedprovided or obtained a3158
certificate shall not preclude a seller or consumer from3159
establishing, within one hundred twenty days of the giving of3160
notice by the commissioner of intention to levy an assessment,3161
that the transaction is not subject to the tax.3162

       (F) A seller who files a petition for reassessment3163
contesting the assessment of tax on transactions for which the3164
seller obtained no valid exemption certificates, and for which the3165
seller failed to establish that the transactions were not subject3166
to the tax during the one-hundred-twenty-day period allowed under3167
division (E) of this section, may present to the tax commissioner3168
additional evidence to prove that the transactions were exempt.3169
The seller shall file such evidence within ninety days of the3170
receipt by the seller of the notice of assessment, except that,3171
upon application and for reasonable cause, the tax commissioner3172
may extend the period for submitting such evidence thirty days.3173

       (G) For the purpose of the proper administration of sections3174
5741.01 to 5741.22 of the Revised Code, and to prevent the evasion3175
of the tax hereby levied, it shall be presumed that any use,3176
storage, or other consumption of tangible personal property in3177
this state is subject to the tax until the contrary is3178
established.3179

       Sec. 5740.01. As used in this chapter:3180

        (A) "Agreement" means the streamlined sales and use tax3181
agreement as amended and adopted on January 27, 2001, by the3182
national conference of state legislatures' special task force on3183
state and local taxation of telecommunications and electronic3184
commerce, and unanimously adopted by the national conference of3185
state legislatures' executive committee, and as subsequently3186
amended and adopted by the member states.3187

        (B) "Certified automated system" means software certified3188
jointly by the member states to calculate the sales or use tax3189
imposed by each jurisdiction on a transaction, determine the3190
amount of tax to remit to the appropriate state, and maintain a3191
record of the transaction.3192

        (C) "Certified service provider" means an agent certified3193
jointly by the member states to perform all of the seller's sales3194
and use tax functions.3195

       (D) "Member state" means any state that is a signatory to the3196
agreement.3197

        (E) "Person" means an individual, trust, estate, fiduciary,3198
partnership, limited liability company, limited liability3199
partnership, corporation, or any other legal entity.3200

        (F) "Sales tax" means the tax levied by section 5739.02,3201
5739.021, 5739.023, 5739.026, or 5739.10 of the Revised Code.3202

        (G) "Seller" means any person making sales, leases, or3203
rentals of personal property or services.3204

        (H) "State" means any state of the United States and the3205
District of Columbia.3206

        (I) "Use tax" means the tax levied by section 5741.02,3207
5741.021, 5741.022, or 5741.023 of the Revised Code. 3208

       Sec. 5740.02. (A) Subject to division (B) of this section,3209
the state of Ohio shall participate in discussions with other3210
states regarding the development of a streamlined sales and use3211
tax system to reduce the burden and cost for all sellers to3212
collect this state's sales and use taxes. The state also shall3213
participate in multi-state discussions to review or amend the3214
terms of the agreement to simplify and modernize sales and use tax3215
administration that embodies the requirements set forth in section3216
5740.05 of the Revised Code. For purposes of these discussions,3217
the state shall be represented by three delegates. The tax3218
commissioner or the commissioner's designee shall be the3219
chairperson of the delegation. The other delegates shall be one3220
delegate chosen by the speaker of the house of representatives and3221
one delegate chosen by the president of the senate. In all3222
matters where voting by the member states is required to amend the3223
agreement, unanimous approval by this state's delegation shall be3224
required for the state, through the chairperson, to cast this3225
state's vote.3226

       (B) The state shall not participate in the discussions3227
referred to in division (A) of this section unless the meetings at3228
which the discussions occur are conducted in accordance with the3229
requirements of divisions (C), (F), (G), and (H) of section 121.223230
of the Revised Code as if the participants of the meeting were a3231
public body as defined in that section or substantially similar3232
requirements. Notwithstanding division (F) of that section,3233
written notice of such meetings shall be provided to the news3234
media that have requested notification at least thirty days before3235
the day of the meeting. Any person may bring an action to enforce3236
this division in the court of common pleas of Franklin county.3237
Upon proof of a violation or threatened violation of this3238
division, the court shall issue a writ of injunction or mandamus3239
to compel compliance with this division.3240

       Sec. 5740.03. Subject to section 5740.05 of the Revised Code,3241
the tax commissioner may enter into the agreement with one or more3242
states, provided that the general assembly first authorizes the3243
tax commissioner to enter into the agreement. In furtherance of3244
the agreement, the commissioner may act jointly with other member3245
states to establish standards for certification of service3246
providers and automated systems, establish performance standards3247
for multi-state sellers, and procure goods and services. The3248
commissioner may take other actions reasonably required to3249
implement this chapter, including adopting rules.3250

       Sec. 5740.04. (A) No provision of the agreement, in whole or3251
in part, invalidates or amends the law of this state. Adoption of3252
the agreement by this state does not amend the law of this state.3253
Implementation in this state of any condition of the agreement,3254
whether adopted before, at, or after membership of this state in3255
the agreement, must be by the action of this state.3256

        (B) The agreement is an accord among individual cooperating3257
sovereigns in furtherance of their governmental functions. The3258
agreement provides a mechanism among the member states to3259
establish and maintain a cooperative, simplified system for the3260
application and administration of sales and use taxes under the3261
duly adopted laws of each member state. 3262

       Sec. 5740.05. The tax commissioner shall not enter into the3263
agreement unless the agreement requires each state to meet the3264
requirements set forth in divisions (A) to (I) of this section.3265
The agreement shall:3266

        (A) Set restrictions to limit over time the number of state3267
sales and use tax rates;3268

        (B) Establish uniform standards for attributing the source3269
of transactions to taxing jurisdictions, the administration of3270
exempt sales, and sales and use tax returns and remittances;3271

        (C) Provide a central, electronic registration system that3272
allows a seller to register to collect sales and use taxes for,3273
and remit them to, all member states;3274

        (D) Provide that registration with the central registration3275
system and the collection of sales and use taxes in the member3276
states will not be used as a factor in determining whether the3277
seller has nexus with a state for any tax;3278

        (E) Provide for reduction of the burdens of complying with3279
local sales and use taxes through the following:3280

        (1) Restricting variances between the state and local tax3281
bases;3282

        (2) Requiring states to administer any sales and use taxes3283
levied by local jurisdictions within the states so that sellers3284
collecting and remitting those taxes will not have to register or3285
file returns with, remit funds to, or be subject to independent3286
audits from, local taxing jurisdictions;3287

        (3) Restricting the frequency of changes in the local sales3288
and use tax rates and setting effective dates for the application3289
of local jurisdictional boundary changes to local sales and use3290
taxes;3291

        (4) Providing notice to sellers and certified service3292
providers of changes in local sales and use tax rates and in the3293
boundaries of local taxing jurisdictions.3294

        (F) Outline any monetary allowances that are to be provided3295
by the member states to sellers or certified service providers.3296
The agreement must allow for a joint public and private sector3297
study of the compliance cost on sellers and certified service3298
providers to collect sales and use taxes for state and local3299
governments under various levels of complexity, to be completed by3300
July 1, 2002.3301

        (G) Require each state to certify compliance with the terms3302
of the agreement prior to becoming a member of the agreement, and3303
to maintain compliance, under the laws of the member state, with3304
all provisions of the agreement while a member;3305

        (H) Require each member state to adopt a uniform policy for3306
certified service providers that protects the privacy of consumers3307
and maintains the confidentiality of tax information;3308

        (I) Provide for the appointment of an advisory council of3309
private sector representatives and an advisory council of3310
non-member state representatives to consult with in the3311
administration of the agreement. 3312

       Sec. 5740.06. (A) The agreement binds and inures only to the3313
benefit of this state and the other member states. No person,3314
other than a member state, is an intended beneficiary of the3315
agreement. Any benefit to a person other than a state is3316
established by the law of this state and the other member states3317
and not by the terms of the agreement.3318

        (B) Consistent with division (A) of this section, no person3319
shall have any cause of action or defense under the agreement or3320
by virtue of this state's approval of the agreement. No person3321
may challenge, in any action brought under any provision of law,3322
any action or inaction by any department, agency, or other3323
instrumentality of this state, or any political subdivision of3324
this state, on the ground that the action or inaction is3325
inconsistent with the agreement.3326

        (C) No law of this state, or the application thereof, may3327
be declared invalid as to any person or circumstance on the ground3328
that the law or application of it is inconsistent with the3329
agreement. 3330

       Sec. 5740.07. (A) A certified service provider is the agent3331
of the seller with whom the certified service provider has3332
contracted for the collection and remittance of sales and use3333
taxes. As the seller's agent, the certified service provider is3334
liable for sales and use taxes due each member state on all sales3335
transactions it processes for the seller, except as provided in3336
this section.3337

        A seller that contracts with a certified service provider is3338
not liable to the state for sales or use taxes due on transactions3339
processed by the certified service provider, unless the seller3340
misrepresented the type of tangible personal property or services3341
it sells, or committed fraud. In the absence of probable cause to3342
believe that the seller made a material misrepresentation or has3343
committed fraud, the seller is not subject to audit of the3344
transactions processed by the certified service provider. A3345
seller is subject to audit for transactions not processed by a3346
certified service provider. The member states acting jointly may3347
perform a system check of the seller and review the seller's3348
procedures to determine if the certified service provider's system3349
is functioning properly and the extent to which the seller's3350
transactions are being processed by the provider.3351

        (B) A person who provides a certified automated system is3352
responsible for the proper functioning of that system and is3353
liable to this state for underpayments of the sales and use tax3354
attributable to errors in the functioning of that system. A3355
seller that uses a certified automated system remains responsible3356
and is liable to this state for reporting and remitting sales and3357
use taxes.3358

        (C) A seller that has a proprietary system for determining3359
the amount of sales or use tax due on transactions and has signed3360
a performance agreement establishing tax performance standards for3361
that system is liable for the failure of the system to meet the3362
performance standards. 3363

       Sec. 5740.08. (A) A certified service provider shall3364
preserve the privacy of consumers who buy, lease, or rent tangible3365
personal property or services from sellers with whom the provider3366
has contracted for the collection and remittance of sales and use3367
taxes to this state. The provider shall protect consumer3368
information in the same manner as required of the department of3369
taxation for taxpayer information. The provider shall use a3370
certified automated system to perform sales and use tax3371
calculations, remittances, and reporting that does not retain the3372
personally identifiable information of consumers, except as3373
follows:3374

        (1) To determine whether a consumer's status or intended3375
use of the goods or services purchased is exempt from the sales or3376
use tax;3377

        (2) To investigate fraud by a consumer or seller;3378

        (3) To the extent necessary to ensure the reliability of3379
the providers' technology and certified automated system in3380
performing all of a seller's sales and use tax functions.3381

        The provider shall provide technical, physical, and3382
administrative safeguards to protect personally identifiable3383
information from unauthorized access and disclosure.3384

        (B) A certified service provider shall provide to consumers3385
clear and conspicuous notice of its information retention and3386
sharing practices, including what information it collects, how the3387
information collected is used, and whether the information is3388
disclosed to other member states. A provider that retains3389
personally identifiable information in accordance with division3390
(A) of this section shall notify consumers of its intent to retain3391
such information and shall afford consumers reasonable access to3392
their data and the opportunity to correct inaccurately recorded3393
data.3394

        (C) If any person, other than a member state, seeks to3395
discover a consumer's personally identifiable information, a3396
reasonable and timely effort shall be made by the provider to3397
notify the consumer of such request.3398

        (D) Notwithstanding this section, the laws of this state3399
regarding the collection, use, and maintenance of confidential3400
taxpayer information remain applicable and binding. The agreement3401
does not enlarge or limit this state's authority to do any of the3402
following:3403

        (1) Conduct audits or other reviews as provided under the3404
agreement or state law;3405

        (2) Provide records pursuant to section 149.43 of the3406
Revised Code or to governmental agencies under disclosure laws;3407

        (3) Prevent the disclosure of confidential taxpayer3408
information in accordance with Title LVII of the Revised Code;3409

        (4) Prevent, consistent with federal law, the disclosure or3410
misuse of federal return information obtained under a disclosure3411
agreement with the Internal Revenue Service;3412

        (5) Collect, disclose, disseminate, or otherwise use3413
anonymous data for governmental purposes.3414

        (E) This section does not enlarge or limit the privacy3415
policies of any seller that has selected a certified service3416
provider as its agent to perform all of the seller's sales and use3417
tax functions.3418

        (F) A certified service provider that fails to comply with3419
this section is subject to investigation by the tax commissioner3420
or the commissioner's agents and the attorney general, and to3421
prosecution by the attorney general. 3422

       Sec. 5747.083. The tax commissioner may not require the3423
taxpayer, as a part of the taxpayer's personal income tax return,3424
to report or pay use tax for any purchase made during the tax year3425
on which the taxpayer has paid any sales tax to this state or any3426
other state at the time of the purchase.3427

       Section 2. That existing sections 307.671, 307.672, 307.674,3428
307.695, 311.37, 311.99, 351.01, 351.021, 351.03, 351.141, 505.56,3429
3715.52, 4501.32, 5739.01, 5739.02, 5739.024, 5739.03, 5739.033, 3430
5739.31, 5739.99, and 5741.02 of the Revised Code are hereby3431
repealed.3432

       Section 3. That Section 6 of Sub. H.B. 483 of the 123rd3433
General Assembly is hereby repealed.3434

       Section 4. By the end of January, 2002, the Governor, Speaker 3435
of the House of Representatives, and President of the Senate shall 3436
jointly appoint a commission to study Ohio's tax structure, 3437
including taxes that impact the state's economy and the employment 3438
of its citizens, such as taxes on trusts, tangible personal 3439
property taxes, and municipal taxes, and tax expenditures.3440

       The commission shall submit its findings to the Governor in 3441
time for the findings to be included in the Governor's 3442
consideration of state budget recommendations for fiscal years 3443
2004 and 2005.3444

       Section 5.  Section 5739.02 of the Revised Code is presented3445
in this act as a composite of the section as amended by both Am.3446
Sub. H.B. 94 and Sub. H.B. 117 of the 124th General Assembly. The3447
General Assembly, applying the principle stated in division (B) of3448
section 1.52 of the Revised Code that amendments are to be3449
harmonized if reasonably capable of simultaneous operation, finds3450
that the composite is the resulting version of the section in3451
effect prior to the effective date of the section as presented in3452
this act.3453