As Reported by the House Ways and Means Committee

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


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



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, 5739.033, 5739.31, and 5739.99; to amend,4
for the purpose of adopting a new section number as5
indicated in parentheses, section 5739.0246
(5739.09); and to enact sections 5739.034, 5739.08,7
5740.01 to 5740.08, and 5747.083 of the Revised8
Code and to repeal Section 6 of Sub. H.B. 483 of9
the 123rd General Assembly to enact the Simplified10
Sales and Use Tax Administration Act, to prohibit11
the Tax Commissioner from requiring reporting or12
payment of certain use tax liability as part of a13
taxpayer's personal income tax return, and to make14
other changes to the sales and use tax laws.15


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

       Section 1. That sections 307.671, 307.672, 307.674, 307.695,16
311.37, 311.99, 351.01, 351.021, 351.03, 351.141, 505.56, 3715.52,17
4501.32, 5739.01, 5739.02, 5739.024, 5739.033, 5739.31, and18
5739.99 be amended, section 5739.024 (5739.09) be amended for the19
purpose of adopting a new section number as indicated in20
parentheses, and sections 5739.034, 5739.08, 5740.01, 5740.02,21
5740.03, 5740.04, 5740.05, 5740.06, 5740.07, 5740.08, and22
5747.083 of the Revised Code be enacted to read as follows:23

       Sec. 307.671.  (A) As used in this section:24

       (1) "Bonds" means, as the context requires: general25
obligation bonds of the county, or notes in anticipation thereof,26
described in division (B)(1)(b) of this section; revenue bonds of27
the port authority described in division (B)(2)(a) of this28
section; and urban renewal bonds, or notes in anticipation29
thereof, of the host municipal corporation described in division30
(B)(3)(a) of this section.31

       (2) "Corporation" means a nonprofit corporation that is32
organized under the laws of this state and that includes within33
the purposes for which it is incorporated the authorization to34
lease and operate facilities such as a port authority educational35
and cultural facility.36

       (3) "Debt service charges" means, for any period or payable37
at any time, the principal of and interest and any premium due on38
bonds for that period or payable at that time whether due at39
maturity or upon mandatory redemption, together with any required40
deposits to reserves for the payment of principal of and interest41
on such bonds, and includes any payments required by the port42
authority to satisfy any of its obligations arising from any43
guaranty agreements, reimbursement agreements, or other credit44
enhancement agreements described in division (C) of this section.45

       (4) "Host municipal corporation" means the municipal46
corporation within the boundaries of which the port authority47
educational and cultural facility is located.48

       (5) "Port authority" means a port authority created pursuant49
to the authority of section 4582.02 of the Revised Code by a50
county and a host municipal corporation.51

       (6) "Port authority educational and cultural facility" means52
a facility located within an urban renewal area that may consist53
of a museum, archives, library, hall of fame, center for54
contemporary music, or other facilities necessary to provide55
programs of an educational and cultural nature, together with all56
parking facilities, walkways, and other auxiliary facilities, real57
and personal property, property rights, easements, and interests58
that may be appropriate for, or used in connection with, the59
operation of the facility.60

       (7) "Urban renewal area" means an area of a host municipal61
corporation that the legislative authority of the host municipal62
corporation has designated as appropriate for an urban renewal63
project pursuant to Chapter 725. of the Revised Code.64

       (B) The board of county commissioners of a county, a port65
authority, and a host municipal corporation may enter into a66
cooperative agreement with a corporation, under which:67

       (1) The board of county commissioners agrees to do all of68
the following:69

       (a) Levy a tax under division (D) of section 5739.02470
5739.09 of the Revised Code exclusively for the purposes described71
in divisions (B)(1)(c) and (d) of this section;72

       (b) Issue general obligation bonds of the county, or notes73
in anticipation thereof, pursuant to Chapter 133. of the Revised74
Code, for the purpose of acquiring, constructing, and equipping75
the port authority educational and cultural facility and76
contribute the proceeds from the issuance to the port authority77
for such purpose. The cooperative agreement may provide that such78
proceeds be deposited with and administered by the trustee79
pursuant to the trust agreement provided for in division (C) of80
this section.81

       (c) Following the issuance, sale, and delivery of the port82
authority revenue bonds provided for in division (B)(2)(a) of this83
section, and prior to the date certain stated in the cooperative84
agreement which shall be the date estimated for the completion of85
construction of the port authority educational and cultural86
facility, pledge and contribute to the port authority revenue from87
the tax levied pursuant to division (B)(1)(a) of this section,88
together with any investment earnings on that revenue, to pay a89
portion of the costs of acquiring, constructing, and equipping the90
port authority educational and cultural facility;91

       (d) Following such date certain, pledge and contribute to92
the corporation all or such portion as provided for in the93
cooperative agreement of the revenue from the tax, together with94
any investment earnings on that revenue, to pay a portion of the95
costs of the corporation of leasing the port authority educational96
and cultural facility from the port authority.97

       (2) The port authority agrees to do all of the following:98

       (a) Issue revenue bonds of the port authority pursuant to99
Chapter 4582. of the Revised Code for the purpose of acquiring,100
constructing, and equipping the port authority educational and101
cultural facility;102

       (b) Construct the port authority educational and cultural103
facility;104

       (c) Lease the port authority educational and cultural105
facility to the corporation;106

       (d) To the extent provided for in the cooperative agreement107
or the lease to the corporation, authorize the corporation to108
administer on behalf of the port authority the contracts for109
acquiring, constructing, or equipping a port authority educational110
and cultural facility;111

       (e) Use the revenue derived from the lease of the port112
authority educational and cultural facility to the corporation113
solely to pay debt service charges on the revenue bonds of the114
port authority described in division (B)(2)(a) of this section.115

       (3) The host municipal corporation agrees to do both of the116
following:117

       (a) Issue urban renewal bonds of the host municipal118
corporation, or notes in anticipation thereof, pursuant to Chapter119
725. of the Revised Code for the purpose of acquiring and120
constructing the port authority educational and cultural facility121
and contribute the proceeds from the issuance to the port122
authority for such purpose. The cooperative agreement may provide123
that such proceeds be deposited with and administered by the124
trustee pursuant to the trust agreement provided for in division125
(C) of this section.126

       (b) To the extent provided for in the cooperative agreement,127
contribute to the county, for use by the county to pay debt128
service charges on the bonds of the county, or notes in129
anticipation thereof, described in division (B)(1)(b) of this130
section, any excess urban renewal service payments pledged by the131
host municipal corporation to the urban renewal bonds described in132
division (B)(3)(a) of this section and not required on an annual133
basis to pay debt service charges on the urban renewal bonds.134

       (4) The corporation agrees to do all of the following:135

       (a) Lease the port authority educational and cultural136
facility from the port authority;137

       (b) Operate and maintain the port authority educational and138
cultural facility pursuant to the lease;139

       (c) To the extent provided for in the cooperative agreement140
or the lease from the port authority, administer on behalf of the141
port authority the contracts for acquiring, constructing, or142
equipping a port authority educational and cultural facility.143

       (C) The pledges and contributions described in divisions144
(B)(1)(c) and (d) of this section and provided for in the145
cooperative agreement shall be for the period stated in the146
cooperative agreement, but shall not be in excess of the period147
necessary to provide for the final retirement of the port148
authority revenue bonds provided for in division (B)(2)(a) of this149
section and any bonds issued by the port authority to refund such150
bonds, and for the satisfaction by the port authority of any of151
its obligations arising from any guaranty agreements,152
reimbursement agreements, or other credit enhancement agreements153
relating to such bonds or to the revenues pledged to such bonds.154
The cooperative agreement shall provide for the termination of the155
cooperative agreement including the pledges and contributions156
described in divisions (B)(1)(c) and (d) of this section if the157
port authority revenue bonds provided for in division (B)(2)(a) of158
this section have not been issued, sold, and delivered within two159
years of the effective date of the cooperative agreement.160

       The cooperative agreement shall provide that any revenue161
bonds of the port authority shall be secured by a trust agreement162
between the port authority and a corporate trustee that is a trust163
company or bank having the powers of a trust company within or164
outside the state. The county may be a party to such trust165
agreement for the purpose of securing the pledge by the county of166
its contribution to the corporation pursuant to division (B)(1)(d)167
of this section. A tax levied pursuant to division (B)(1)(a) of168
this section is not subject to diminution by initiative or169
referendum or diminution by statute, unless provision is made170
therein for an adequate substitute therefor reasonably171
satisfactory to the trustee under the trust agreement that secures172
the revenue bonds of the port authority.173

       (D) A pledge of money by a county under this section shall174
not be net indebtedness of the county for purposes of section175
133.07 of the Revised Code.176

       (E) If the terms of the cooperative agreement so provide,177
any contract for the acquisition, construction, or equipping of a178
port authority educational and cultural facility shall be made in179
such manner as is determined by the board of directors of the port180
authority, and unless the cooperative agreement provides181
otherwise, such a contract is not subject to division (A) of182
section 4582.12 of the Revised Code. The port authority may take183
the assignment of and assume any contracts for the acquisition,184
construction, and equipping of a port authority educational and185
cultural facility that previously have been authorized by either186
or both the host municipal corporation or the corporation. Such187
contracts likewise are not subject to division (A) of section188
4582.12 of the Revised Code.189

       Any contract for the acquisition, construction, or equipping190
of a port authority educational and cultural facility entered191
into, assigned, or assumed pursuant to this division shall provide192
that all laborers and mechanics employed for the acquisition,193
construction, or equipping of the port authority educational and194
cultural facility shall be paid at the prevailing rates of wages195
of laborers and mechanics for the class of work called for by the196
port authority educational and cultural facility, which wages197
shall be determined in accordance with the requirements of Chapter198
4115. of the Revised Code for the determination of prevailing wage199
rates.200

       Sec. 307.672.  (A) As used in this section:201

       (1) "Bonds" means general obligation bonds, or notes in202
anticipation thereof, of the county described in division203
(B)(1)(b) of this section, and general obligation bonds, or notes204
in anticipation thereof, of the host municipal corporation205
described in division (B)(2)(a) of this section.206

       (2) "Corporation" means a nonprofit corporation that is207
organized under the laws of this state and that includes within208
the purposes for which it is incorporated the authorization to209
lease and operate facilities such as a municipal educational and210
cultural facility.211

       (3) "Debt service charges" means, for any period or payable212
at any time, the principal of and interest and any premium due on213
bonds for that period or payable at that time whether due at214
maturity or upon mandatory redemption, together with any required215
deposits to reserves for the payment of principal of and interest216
on such bonds.217

       (4) "Host municipal corporation" means the municipal218
corporation within the boundaries of which a municipal educational219
and cultural facility is or will be located.220

       (5) "Municipal educational and cultural facility" means a221
facility that may consist of a museum, archives, library, hall of222
fame, center for contemporary music, or other facilities necessary223
to provide programs of an educational, recreational, and cultural224
nature, together with all parking facilities, walkways, and other225
auxiliary facilities, real and personal property, property rights,226
easements, and interests that may be appropriate for, or used in227
connection with, the operation of the facility.228

       (B) The legislative authorities of a county and a host229
municipal corporation may enter into a cooperative agreement with230
a corporation, under which:231

       (1) The legislative authority of the county agrees to:232

       (a) Levy a tax under division (E) of section 5739.024233
5739.09 of the Revised Code for a period not to exceed fifteen234
years to pay the costs of acquiring, constructing, equipping, and235
improving a municipal educational and cultural facility, including236
the debt service charges on bonds;237

       (b) Issue bonds of the county pursuant to Chapter 133. of238
the Revised Code for the purpose of acquiring, constructing,239
equipping, and improving a municipal educational and cultural240
facility;241

       (c) Contribute revenue from the tax and the proceeds from242
the bonds described in divisions (B)(1)(a) and (b) of this section243
to the host municipal corporation for the purpose of acquiring,244
constructing, equipping, and improving a municipal educational and245
cultural facility;246

       (2) The host municipal corporation agrees to:247

       (a) Issue bonds of the host municipal corporation pursuant248
to Chapter 133. of the Revised Code for the purpose of acquiring,249
constructing, equipping, and improving a municipal educational and250
cultural facility;251

       (b) Acquire, construct, equip, and improve a municipal252
educational and cultural facility;253

       (c) Accept from the county pursuant to the cooperative254
agreement the revenues of the tax and the proceeds of the bonds255
described in divisions (B)(1)(a) and (b) of this section;256

       (d) Lease a municipal educational and cultural facility to257
the corporation, or contract with the corporation for the258
operation and maintenance of the facility;259

       (e) To the extent provided for in the cooperative agreement260
or the lease or contract with the corporation, authorize the261
corporation to administer on behalf of the host municipal262
corporation the contracts for acquiring, constructing, equipping,263
and improving a municipal educational and cultural facility.264

       (3) The corporation agrees to:265

       (a) Either lease the municipal educational and cultural266
facility from the host municipal corporation and operate and267
maintain the facility pursuant to the lease, or enter into a268
contract with the host municipal corporation pursuant to which the269
corporation shall operate and maintain the facility on behalf of270
the host municipal corporation;271

       (b) To the extent provided for in the cooperative agreement272
or the lease or contract with the host municipal corporation,273
administer on behalf of the host municipal corporation the274
contracts for acquiring, constructing, equipping, or improving a275
municipal educational and cultural facility.276

       (C) A tax levied pursuant to division (E) of section277
5739.0245739.09 of the Revised Code, the revenue from which is to278
be used to pay debt service charges on bonds described in division279
(B)(1) or (2) of this section is not subject to diminution by280
initiative or referendum or diminution by statute, unless281
provision is made therein for an adequate substitute therefor282
reasonably satisfactory to the legislative authorities of the host283
municipal corporation and the county.284

       (D) The legislative authorities of a county and a host285
municipal corporation that have entered into a cooperative286
agreement with a corporation pursuant to division (B) of this287
section may amend that cooperative agreement, with the288
participation of the corporation and a port authority as defined289
in section 307.674 of the Revised Code, to provide also for a port290
authority educational and cultural performing arts facility in291
accordance with section 307.674 of the Revised Code. Such an292
amendment shall become effective only to the extent that the tax293
levied under division (E) of section 5739.0245739.09 of the294
Revised Code is not needed for the duration of the original tax to295
pay costs of the municipal educational and cultural facility,296
including debt service charges on related bonds, as determined by297
the parties to the amendment. The tax may be pledged and paid by298
the parties to the amendment for the balance of the duration of299
the tax to a port authority educational and cultural performing300
arts facility.301

       Sec. 307.674.  (A) As used in this section:302

       (1) "Bonds" means:303

       (a) Revenue bonds of the port authority described in304
division (B)(2)(a) of this section;305

       (b) Securities as defined in division (KK) of section 133.01306
of the Revised Code issued by the host municipal corporation,307
described in division (B)(3)(a) of this section;308

       (c) Any bonds issued to refund any of those revenue bonds or309
securities.310

       (2) "Corporation" means a nonprofit corporation that is311
organized under the laws of this state and that includes within312
the purposes for which it is incorporated the authorization to313
lease and operate facilities such as a port authority educational314
and cultural performing arts facility.315

       (3) "Cost," as applied to a port authority educational and316
cultural performing arts facility, means the cost of acquiring,317
constructing, renovating, rehabilitating, equipping, or improving318
the facility, or any combination of those purposes, collectively319
referred to in this section as "construction," and the cost of320
acquisition of all land, rights of way, property rights,321
easements, franchise rights, and interests required for those322
purposes, the cost of demolishing or removing any buildings or323
structures on land so acquired, including the cost of acquiring324
any land to which those buildings or structures may be moved, the325
cost of public utility and common carrier relocation or326
duplication, the cost of all machinery, furnishings, and327
equipment, financing charges, interest prior to and during328
construction and for not more than three years after completion of329
construction, costs arising under guaranty agreements,330
reimbursement agreements, or other credit enhancement agreements331
relating to bonds, engineering, expenses of research and332
development with respect to such facility, legal expenses, plans,333
specifications, surveys, studies, estimates of costs and revenues,334
other expenses necessary or incident to determining the335
feasibility or practicability of acquiring or constructing the336
facility, administrative expense, and other expenses as may be337
necessary or incident to that acquisition or construction and the338
financing of such acquisition or construction, including, with339
respect to the revenue bonds of a port authority, amounts to be340
paid into any special funds from the proceeds of those bonds, and341
repayments to the port authority, host county, host municipal342
corporation, or corporation of any amounts advanced for the343
foregoing purposes.344

       (4) "Debt service charges" means, for any period or payable345
at any time, the principal of and interest and any premium due on346
bonds for that period or payable at that time whether due at347
maturity or upon mandatory redemption, together with any required348
deposits to reserves for the payment of principal of and interest349
on those bonds, and includes any payments required by the port350
authority to satisfy any of its obligations under or arising from351
any guaranty agreements, reimbursement agreements, or other credit352
enhancement agreements described in division (C) of this section.353

       (5) "Host county" means the county within the boundaries of354
which the port authority educational and cultural performing arts355
facility is or will be located.356

       (6) "Host municipal corporation" means the municipal357
corporation within the boundaries of which the port authority358
educational and cultural performing arts facility is or will be359
located.360

       (7) "Port authority" means a port authority created pursuant361
to section 4582.22 of the Revised Code.362

       (8) "Port authority educational and cultural performing arts363
facility" means a facility that consists of a center for music or364
other performing arts, a theater or other facilities to provide365
programs of an educational, recreational, or cultural nature, or366
any combination of those purposes as determined by the parties to367
the cooperative agreement for which provision is made in division368
(B) of this section to fulfill the public educational,369
recreational, and cultural purposes set forth therein, together370
with all parking facilities, walkways, and other auxiliary371
facilities, real and personal property, property rights,372
easements, and interests that may be appropriate for, or used in373
connection with, the operation of the facility.374

       (B) A host county, a host municipal corporation, and a port375
authority may enter into a cooperative agreement with a376
corporation under which, as further provided for in that377
agreement:378

       (1) The host county may agree to do any or all of the379
following:380

       (a) Levy and collect a tax under division (E) and division381
(F) of section 5739.0245739.09 of the Revised Code for the382
purposes, and in an amount sufficient for those purposes,383
described in divisions (B)(1)(b) and (c) of this section;384

       (b) Pay to the port authority all or such portion as385
provided for in the cooperative agreement of the revenue from the386
tax, together with any investment earnings on that revenue, to be387
used to pay a portion of the costs of acquiring, constructing,388
renovating, rehabilitating, equipping, or improving the port389
authority educational and cultural performing arts facility;390

       (c) Pledge and pay to the corporation all or such portion as391
provided for in the cooperative agreement of the revenue from the392
tax, together with any investment earnings on that revenue, to be393
used to pay a portion of the costs to the corporation of leasing394
the port authority educational and cultural performing arts395
facility from the port authority.396

       (2) The port authority may agree to do any or all of the397
following:398

       (a) Issue its revenue bonds pursuant to section 4582.48 of399
the Revised Code for the purpose of paying all or a portion of the400
costs of the port authority educational and cultural performing401
arts facility;402

       (b) Acquire, construct, renovate, rehabilitate, equip, and403
improve the port authority educational and cultural performing404
arts facility;405

       (c) Lease the port authority educational and cultural406
performing arts facility to the corporation;407

       (d) To the extent provided for in the cooperative agreement408
or the lease to the corporation, authorize the corporation to409
administer on behalf of the port authority the contracts for410
acquiring, constructing, renovating, rehabilitating, or equipping411
the port authority educational and cultural performing arts412
facility;413

       (e) Use the revenue derived from the lease of the port414
authority educational and cultural performing arts facility to the415
corporation solely to pay debt service charges on revenue bonds of416
the port authority issued pursuant to division (B)(2)(a) of this417
section and to pay its obligations under or arising from any418
guaranty agreements, reimbursement agreements, or other credit419
enhancement agreements provided for in this section.420

       (3) The host municipal corporation may agree to do either or421
both of the following:422

       (a) Issue its bonds for the purpose of paying all or a423
portion of the costs of the port authority educational and424
cultural performing arts facility, and pay the proceeds from the425
issuance to the port authority for that purpose;426

       (b) Enter into a guaranty agreement, a reimbursement427
agreement, or other credit enhancement agreement with the port428
authority to provide a guaranty or other credit enhancement of the429
port authority revenue bonds referred to in division (B)(2)(a) of430
this section pledging taxes, other than ad valorem property taxes,431
or other revenues for the purpose of providing the funds required432
to satisfy the host municipal corporation's obligations under that433
agreement.434

       The cooperative agreement may provide that the proceeds of435
such securities or of such guaranty agreement, reimbursement436
agreement, or other credit enhancement agreement be deposited with437
and administered by the trustee pursuant to the trust agreement438
authorized in division (C) of this section.439

       (4) The corporation may agree to do any or all of the440
following:441

       (a) Lease the port authority educational and cultural442
performing arts facility from the port authority;443

       (b) Operate and maintain the port authority educational and444
cultural performing arts facility pursuant to the lease;445

       (c) To the extent provided for in the cooperative agreement446
or the lease from the port authority, administer on behalf of the447
port authority the contracts for acquiring, constructing,448
renovating, rehabilitating, or equipping the port authority449
educational and cultural performing arts facility.450

       (C) The pledge and payments referred to in divisions451
(B)(1)(b) and (c) of this section and provided for in the452
cooperative agreement shall be for the period stated in the453
cooperative agreement but shall not extend longer than the period454
necessary to provide for the final retirement of the port455
authority revenue bonds referred to in division (B)(2)(a) of this456
section, and for the satisfaction by the port authority of any of457
its obligations under or arising from any guaranty agreements,458
reimbursement agreements, or other credit enhancement agreements459
relating to those bonds or to the revenues pledged to them. The460
cooperative agreement shall provide for the termination of the461
cooperative agreement, including the pledge and payment referred462
to in division (B)(1)(c) of this section, if the port authority463
revenue bonds referred to in division (B)(2)(a) of this section464
have not been issued, sold, and delivered within five years of the465
effective date of the cooperative agreement.466

       The cooperative agreement shall provide that any port467
authority revenue bonds shall be secured by a trust agreement468
between the port authority and a corporate trustee that is a trust469
company or bank having the powers of a trust company within or470
outside the state but authorized to exercise trust powers within471
the state. The host county may be a party to that trust agreement472
for the purpose of better securing the pledge by the host county473
of its payment to the corporation pursuant to division (B)(1)(c)474
of this section. A tax levied pursuant to section 5739.024475
5739.09 of the Revised Code for the purposes specified in division476
(B)(1)(b) or (c) of this section is not subject to diminution by477
initiative or referendum or diminution by statute, unless478
provision is made for an adequate substitute reasonably479
satisfactory to the trustee under the trust agreement that secures480
the port authority revenue bonds.481

       (D) A pledge of money by a host county under this section482
shall not be net indebtedness of the host county for purposes of483
section 133.07 of the Revised Code. A guaranty or other credit484
enhancement by a host municipal corporation under this section485
shall not be net indebtedness of the host municipal corporation486
for purposes of section 133.05 of the Revised Code.487

       (E) If the terms of the cooperative agreement so provide,488
any contract for the acquisition, construction, renovation,489
rehabilitation, equipping, or improving of a port authority490
educational and cultural performing arts facility shall be made in491
such manner as is determined by the board of directors of the port492
authority, and unless the cooperative agreement provides493
otherwise, such a contract is not subject to division (R)(2) of494
section 4582.31 of the Revised Code. The port authority may take495
the assignment of and assume any contracts for the acquisition,496
construction, renovation, rehabilitation, equipping, or improving497
of a port authority educational and cultural performing arts498
facility that had previously been authorized by any of the host499
county, the host municipality, or the corporation. Such contracts500
are not subject to division (R)(2) of section 4582.31 of the501
Revised Code.502

       Any contract for the acquisition, construction, renovation,503
rehabilitation, equipping, or improving of a port authority504
educational and cultural performing arts facility entered into,505
assigned, or assumed pursuant to this division shall provide that506
all laborers and mechanics employed for the acquisition,507
construction, renovation, rehabilitation, equipping, or improving508
of that facility shall be paid at the prevailing rates of wages of509
laborers and mechanics for the class of work called for by the510
port authority educational and cultural performing arts facility,511
which wages shall be determined in accordance with the512
requirements of Chapter 4115. of the Revised Code for the513
determination of prevailing wage rates.514

       Notwithstanding any provisions to the contrary in section515
3383.07 of the Revised Code, construction services and general516
building services for a port authority educational and cultural517
performing arts facility funded completely or in part with money518
appropriated by the state to the Ohio arts and sports facilities519
commission may be provided by a port authority or a corporation520
that occupies, will occupy, or is responsible for that facility,521
as determined by the commission. The construction services and522
general building services to be provided by the port authority or523
the corporation shall be specified in an agreement between the524
commission and the port authority or corporation. That agreement,525
or any actions taken under it, are not subject to Chapters 123. or526
153. of the Revised Code, but are subject to Chapter 4115. of the527
Revised Code.528

       Sec. 307.695.  (A) As used in this section, "convention529
center" means any structure expressly designed and constructed for530
the purposes of presenting conventions, public meetings, and531
exhibitions and includes parking facilities that serve the center532
and any personal property used in connection with any such533
structure or facilities.534

       (B) A board of county commissioners may enter into an535
agreement with a convention and visitors' bureau operating in the536
county under which:537

       (1) The bureau agrees to construct and equip a convention538
center in the county and to pledge and contribute from the tax539
revenues received by it under division (A) of section 5739.024540
5739.09 of the Revised Code, not more than such portion thereof541
that it is authorized to pledge and contribute for the purpose542
described in division (C) of this section; and543

       (2) The board agrees to levy a tax under division (C) of544
section 5739.0245739.09 of the Revised Code and pledge and545
contribute the revenues therefrom for the purpose described in546
division (C) of this section.547

       (C) The purpose of the pledges and contributions described548
in divisions (B)(1) and (2) of this section is payment of549
principal, interest, and premium, if any, on bonds and notes550
issued by or for the benefit of the bureau to finance the551
construction and equipping of a convention center. The pledges552
and contributions provided for in the agreement shall be for the553
period stated in the agreement, but not to exceed thirty years.554
Revenues determined from time to time by the board to be needed to555
cover the real and actual costs of administering the tax imposed556
by division (C) of section 5739.0245739.09 of the Revised Code557
may not be pledged or contributed. The agreement shall provide558
that any such bonds and notes shall be secured by a trust559
agreement between the bureau or other issuer acting for the560
benefit of the bureau and a corporate trustee that is a trust561
company or bank having the powers of a trust company within or562
without the state, and the trust agreement shall pledge or assign563
to the retirement of the bonds or notes, all moneys paid by the564
county under this section. A tax the revenues from which are565
pledged under an agreement entered into by a board of county566
commissioners under this section shall not be subject to567
diminution by initiative or referendum, or diminution by statute,568
unless provision is made therein for an adequate substitute569
therefor reasonably satisfactory to the trustee under the trust570
agreement that secures the bonds and notes.571

       (D) A pledge of money by a county under this section shall572
not be indebtedness of the county for purposes of Chapter 133. of573
the Revised Code.574

       (E) If the terms of the agreement so provide, the board of575
county commissioners may acquire and lease real property to the576
convention bureau as the site of the convention center. The lease577
shall be for a term not to exceed thirty years and shall be on578
such terms as are set forth in the agreement. The purchase and579
lease are not subject to the limitations of sections 307.02 and580
307.09 of the Revised Code.581

       Sec. 311.37.  (A) No transient vendor, as defined in section582
5739.17 of the Revised Code, who obtains a transient vendor's583
license pursuant to section 5739.17 of the Revised Code, intending584
to provide goods and services of a retail value of more than five585
hundred dollars, shall negligently fail to file with the county586
sheriff all of the following before doing business as a transient587
vendor anywhere in that county:588

       (1) Proof of the transient vendor's identity and proof that589
a transient vendor's license has been obtained in this state;590

       (2) A statement describing the goods or services to be591
provided by the transient vendor and an estimate of the amount of592
the goods or services that the vendor expects to sell in that593
county, as documented by invoices indicating the wholesale value594
of goods to be sold;595

       (3) The transient vendor's permanent business address;596

       (4) The times and days during which, and the temporary597
places of business, as defined in section 5739.17 of the Revised598
Code, at which the transient vendor plans to do business in that599
county.600

       (B) The sheriff shall maintain a record of the information601
required under division (A) of this section for a period of two602
years, which shall be open to the inspection of any person. The603
sheriff shall be allowed a fee of up to one hundred dollars for604
collection of the bond required by this section. The bond shall605
be fifty per cent of the wholesale value of the goods and services606
provided, but in no case shall the bond exceed ten thousand607
dollars. The bond shall be in a form approved by the attorney608
general. The bond shall remain in effect for two years after the609
transient vendor last does business in that county.610

       (C) No transient vendor, as defined in section 5739.17 of611
the Revised Code, intending to provide goods and services of a612
retail value of more than five hundred dollars, shall negligently613
fail to file a bond within ten days before doing business as a614
transient vendor anywhere in that county.615

       (D) The bond filed by any transient vendor pursuant to this616
section shall be given to the attorney general by the county617
sheriff within ten working days after a transient vendor ceases to618
do business in that county, and shall be in favor of the state for619
the benefit of any person who suffers loss or damage as a result620
of the purchase of goods from the transient vendor or as the621
result of the negligent or intentionally tortious acts of the622
transient vendor in the conduct of business in the county. The623
bond may be used to compensate any state or local agency for624
damages caused by the transient vendor, for costs incurred by the625
agency for the illegal acts of the transient vendor, or for626
failure to pay any amount owed by the transient vendor to the627
state or local agency. The bond also may be used to compensate628
the state for any sales tax not paid by the transient vendor.629
Except for the amount of unpaid sales taxes to be deducted from630
the bond, if any, the attorney general shall pay any portion of631
the bond to any person or agency in accordance with the order of a632
court without making an independent finding as to the amount of633
the bond that is payable to that person or agency.634

       (E) This section does not apply to any of the following:635

       (1) A limited vendor, as defined in section 5739.17 of the636
Revised Code, or a transient vendor making retail sales at a637
temporary exhibition, show, fair, world trade center, flea market,638
or similar event, as permitted by section 5739.17 of the Revised639
Code;640

       (2) Any nonprofit corporation, community chest, fund, or641
foundation organized and operated exclusively for religious,642
charitable, scientific, literary, or educational purposes when no643
part of the entity's earnings benefit any private shareholder or644
individual;645

       (3) Any person who operates a permanent business in this646
state, occupies temporary premises, and prominently displays the647
permanent business' name and permanent address while business is648
conducted from the temporary premises.649

       (4) Any person who sells goods by sample, brochure, or650
catalog for future delivery or any person who makes sales as the651
result of the invitation of an owner or occupant of a residence to652
the person.653

       (5) Any person who sells handmade or handcrafted items, or654
who sells fresh farm produce.655

       Nothing in this section shall prohibit the legislative656
authority of a municipal corporation from adopting an ordinance657
regulating transient vendors, as defined in section 5739.17 of the658
Revised Code, except that a municipal corporation may not require659
a transient vendor who obtains a bond in compliance with this660
section to obtain or pay for any additional bond or require that661
persons exempt pursuant to division (E) of this section obtain a662
bond. A municipal corporation may require that a transient vendor663
exhibit histhe transient vendor's license and any proof of bond664
required to such officer or employee of the municipal corporation665
as the municipal corporation designates by ordinance.666

       Sec. 311.99.  (A) Whoever violates section 311.13 of the667
Revised Code shall be fined not more than one thousand dollars and668
imprisoned in the county jail not less than thirty days or more669
than two years.670

       (B) Whoever violates division (A) or (C) of section 311.37671
of the Revised Code is guilty of failure to file a transient672
vendor's information or bond, a minor misdemeanor. If the673
offender previously has been convicted of a violation of division674
(A) of section 311.37 of the Revised Code, failure to file a675
transient vendor's information or bond is a misdemeanor of the676
second degree. If the offender previously has been convicted of677
two or more violations of division (A) of section 311.37 of the678
Revised Code, failure to file a transient vendor's information or679
bond is a misdemeanor of the first degree. A sheriff or police680
officer in a municipal corporation may enforce this division. The681
prosecuting attorney of a county shall inform the tax commissioner682
of any instance when a complaint is brought against a transient or683
limited vendor pursuant to this division.684

       Sec. 351.01.  As used in this chapter:685

       (A) "Convention facilities authority" means a body corporate686
and politic created pursuant to section 351.02 of the Revised687
Code.688

       (B) "Governmental agency" means a department, division, or689
other unit of the state government or of a municipal corporation,690
county, township, or other political subdivision of the state; any691
state university or college, as defined in section 3345.12 of the692
Revised Code, community college, state community college,693
university branch, or technical college; any other public694
corporation or agency having the power to acquire, construct, or695
operate facilities; the United States or any agency thereof; and696
any agency, commission, or authority established pursuant to an697
interstate compact or agreement.698

       (C) "Person" means any individual, firm, partnership,699
association, or corporation, or any combination of them.700

       (D) "Facility" or "facilities" means any convention,701
entertainment, or sports facility, or combination of them, located702
within the territory of the convention facilities authority,703
together with all parking facilities, walkways, and other704
auxiliary facilities, real and personal property, property rights,705
easements and interests that may be appropriate for, or used in706
connection with, the operation of the facility.707

       (E) "Cost" means the cost of acquisition of all land,708
rights-of-way, property rights, easements, franchise rights, and709
interests required for such acquisition; the cost of demolishing710
or removing any buildings or structures on land so acquired,711
including the cost of acquiring any lands to which such buildings712
or structures may be moved; the cost of acquiring or constructing713
and equipping a principal office of the convention facilities714
authority; the cost of diverting highways, interchange of715
highways, access roads to private property, including the cost of716
land or easements for such access roads; the cost of public717
utility and common carrier relocation or duplication; the cost of718
all machinery, furnishings, and equipment; financing charges;719
interest prior to and during construction and for no more than720
eighteen months after completion of construction; expenses of721
research and development with respect to facilities; legal722
expenses; expenses of obtaining plans, specifications, engineering723
surveys, studies, and estimates of cost and revenues; working724
capital; expenses necessary or incident to determining the725
feasibility or practicability of acquiring or constructing such726
facility; administrative expense; and such other expenses as may727
be necessary or incident to the acquisition or construction of the728
facility, the financing of such acquisition or construction,729
including the amount authorized in the resolution of the730
convention facilities authority providing for the issuance of731
convention facilities authority revenue bonds to be paid into any732
special funds from the proceeds of such bonds, the cost of issuing733
the bonds, and the financing of the placing of such facility in734
operation. Any obligation, cost, or expense incurred by any735
governmental agency or person for surveys, borings, preparation of736
plans and specifications, and other engineering services, or any737
other cost described above, in connection with the acquisition or738
construction of a facility may be regarded as part of the cost of739
such facility and may be reimbursed out of the proceeds of740
convention facilities authority revenue bonds as authorized by741
this chapter.742

       (F) "Owner" includes a person having any title or interest743
in any property, rights, easements, or interests authorized to be744
acquired by Chapter 351. of the Revised Code.745

       (G) "Revenues" means all rentals and other charges received746
by the convention facilities authority for the use or services of747
any facility, the sale of any merchandise, or the operation of any748
concessions; any gift or grant received with respect to any749
facility, any moneys received with respect to the lease, sublease,750
sale, including installment sale or conditional sale, or other751
disposition of a facility or part thereof; moneys received in752
repayment of and for interest on any loans made by the authority753
to a person or governmental agency, whether from the United States754
or any department, administration, or agency thereof, or755
otherwise; proceeds of convention facilities authority revenue756
bonds to the extent the use thereof for payment of principal or of757
premium, if any, or interest on the bonds is authorized by the758
authority; proceeds from any insurance, appropriation, or guaranty759
pertaining to a facility or property mortgaged to secure bonds or760
pertaining to the financing of the facility; income and profit761
from the investment of the proceeds of convention facilities762
authority revenue bonds or of any revenues; contributions of the763
proceeds of a tax levied pursuant to division (A)(3) of section764
5739.0245739.09 of the Revised Code; and moneys transmitted to765
the authority pursuant to division (B) of section 5739.211 and766
division (B) of section 5741.031 of the Revised Code.767

       (H) "Public roads" includes all public highways, roads, and768
streets in the state, whether maintained by the state, county,769
city, township, or other political subdivision.770

       (I) "Construction," unless the context indicates a different771
meaning or intent, includes, but is not limited to,772
reconstruction, enlargement, improvement, or providing fixtures,773
furnishings, and equipment.774

       (J) "Convention facilities authority revenue bonds" or775
"revenue bonds," unless the context indicates a different meaning776
or intent, includes convention facilities authority revenue notes,777
convention facilities authority revenue renewal notes, and778
convention facilities authority revenue refunding bonds.779

       (K) "Convention facilities authority tax anticipation bonds"780
or "tax anticipation bonds," unless the context indicates a781
different meaning, includes convention facilities authority tax782
anticipation bonds, tax anticipation notes, tax anticipation783
renewal notes, and tax anticipation refunding bonds.784

       (L) "Bonds and notes" means convention facilities authority785
revenue bonds and convention facilities authority tax anticipation786
bonds.787

       (M) "Territory of the authority" means all of the area of788
the county creating the convention facilities authority.789

       (N) "Excise taxes" means either or both of the taxes levied790
pursuant to division (B) of section 351.021 of the Revised Code.791
"Excise taxes" does not include taxes levied pursuant to section792
4301.424, 5743.026, or 5743.324 of the Revised Code.793

       (O) "Transaction" means the charge by a hotel for each794
occupancy by transient guests of a room or suite of rooms used in795
a hotel as a single unit for any period of twenty-four hours or796
less.797

       (P) "Hotel" and "transient guests" have the same meanings as798
in section 5739.01 of the Revised Code.799

       (Q) "Sports facility" means a facility intended to house800
major league professional athletic teams.801

       (R) "Constructing" or "construction" includes providing802
fixtures, furnishings, and equipment.803

       Sec. 351.021.  (A) The resolution of the county804
commissioners creating a convention facilities authority, or any805
amendment or supplement to that resolution, may authorize the806
authority to levy one or both of the excise taxes authorized by807
division (B) of this section to pay the cost of one or more808
facilities; to pay principal, interest, and premium on convention809
facilities authority tax anticipation bonds issued to pay those810
costs; to pay the operating costs of the authority; to pay811
operating and maintenance costs of those facilities; and to pay812
the costs of administering the excise tax.813

       (B) The board of directors of a convention facilities814
authority that has been authorized pursuant to resolution adopted,815
amended, or supplemented by the board of county commissioners816
pursuant to division (A) of this section may levy, by resolution817
adopted on or before December 31, 1988, either or both of the818
following:819

       (1) Within the territory of the authority, an additional820
excise tax not to exceed four per cent on each transaction. The821
excise tax authorized by division (B)(1) of this section shall be822
in addition to any excise tax levied pursuant to division (C) of823
section 5739.02, section 5739.0245739.08 or 5739.09 of the824
Revised Code, or division (B)(2) of this section.825

       (2) Within that portion of any municipal corporation that is826
located within the territory of the authority or within the827
boundaries of any township that is located within the territory of828
the authority, which municipal corporation or township is levying829
any portion of the excise tax authorized by division (C)(1)(A) of830
section 5739.025739.08 of the Revised Code, and with the831
approval, by ordinance or resolution, of the legislative authority832
of that municipal corporation or township, an additional excise833
tax not to exceed nine-tenths of one per cent on each transaction.834
The excise tax authorized by division (B)(2) of this section may835
be levied only if, on the effective date of the levy specified in836
the resolution making the levy, the amount being levied pursuant837
to division (C)(1)(A) of section 5739.025739.08 of the Revised838
Code by each municipal corporation or township in which the tax839
authorized by division (B)(2) of this section will be levied, when840
added to the amount levied under division (B)(2) of this section,841
does not exceed three per cent on each transaction. The excise842
tax authorized by division (B)(2) of this section shall be in843
addition to any excise tax that is levied pursuant to division (C)844
of section 5739.02 of the Revised Code, section 5739.0245739.08845
or 5739.09 of the Revised Code, or division (B)(1) of this846
section.847

       (C) The authority shall provide for the administration and848
allocation of the excise taxes levied pursuant to division (B) of849
this section. All receipts arising from those excise taxes shall850
be expended for the purposes provided in, and in accordance with851
this section and section 351.141 of the Revised Code. An excise852
tax levied under division (B) of this section shall remain in853
effect at the rate at which it is levied for at least the duration854
of the period for which the receipts from the tax have been855
anticipated and pledged pursuant to section 351.141 of the Revised856
Code.857

       (D) Except as provided in division (B)(2) of this section,858
the levy of an excise tax on each transaction pursuant to division859
(C) of section 5739.02 of the Revised Code and section 5739.024860
sections 5739.08 and 5739.09 of the Revised Code does not prevent861
a convention facilities authority from levying the excise taxes862
pursuant to division (B) of this section.863

       Sec. 351.03.  (A) Except as provided in division (A)(3) of864
section 5739.0245739.09 or in section 5739.026 of the Revised865
Code, no county creating a convention facilities authority may866
appropriate and expend public funds to finance or subsidize the867
operation of the authority.868

       (B) Subject to making due provisions for payment and869
performance of its obligations, a convention facilities authority870
may be dissolved by the county creating it. In such event the871
properties of the authority shall be transferred to the county872
creating it, and the county may thereupon appropriate and expend873
public funds to finance or subsidize the operation of such874
facilities.875

       Sec. 351.141.  A convention facilities authority that levies876
one or both of the excise taxes authorized by division (B) of877
section 351.021 of the Revised Code or that receives contributions878
pursuant to division (A)(3) of section 5739.0245739.09 of the879
Revised Code, by resolution may anticipate the proceeds of the880
levy and issue convention facilities authority tax anticipation881
bonds, and notes anticipating the proceeds or the bonds, in the882
principal amount that, in the opinion of the authority, are883
necessary for the purpose of paying the cost of one or more884
facilities or parts of one or more facilities, and as able, with885
the interest on them, be paid over the term of the issue, or in886
the case of notes anticipating bonds over the term of the bonds,887
by the estimated amount of the excise taxes or contributions888
anticipated thereby. The excise taxes or contributions are889
determined by the general assembly to satisfy any applicable890
requirement of Section 11 of Article XII, Ohio Constitution. An891
authority, at any time, may issue renewal tax anticipation notes,892
issue tax anticipation bonds to pay such notes, and, whenever it893
considers refunding expedient, refund any tax anticipation bonds894
by the issuance of tax anticipation refunding bonds whether the895
bonds to be refunded have or have not matured, and issue tax896
anticipation bonds partly to refund bonds then outstanding and897
partly for any other authorized purpose. The refunding bonds898
shall be sold and the proceeds needed for such purpose applied in899
the manner provided in the bond proceedings to the purchase,900
redemption, or payment of the bonds to be refunded.901

       Every issue of outstanding tax anticipation bonds shall be902
payable out of the proceeds of the excise taxes or contributions903
anticipated and other revenues of the authority that are pledged904
for such payment. The pledge shall be valid and binding from the905
time the pledge is made, and the anticipated excise taxes,906
contributions, and revenues so pledged and thereafter received by907
the authority immediately shall be subject to the lien of that908
pledge without any physical delivery of those excise taxes,909
contributions, and revenues or further act. The lien of any910
pledge is valid and binding as against all parties having claims911
of any kind in tort, contract, or otherwise against the authority,912
whether or not such parties have notice of the lien. Neither the913
resolution nor any trust agreement by which a pledge is created914
need be filed or recorded except in the authority's records.915

       Whether or not the bonds or notes are of such form and916
character as to be negotiable instruments under Title XIII of the917
Revised Code, the bonds or notes shall have all the qualities and918
incidents of negotiable instruments, subject only to their919
provisions for registration, if any.920

       The tax anticipation bonds shall bear such date or dates, and921
shall mature at such time or times, in the case of any such notes922
or any renewals of such notes not exceeding twenty years from the923
date of issue of such original notes and in the case of any such924
bonds or any refunding bonds not exceeding forty years from the925
date of the original issue of notes or bonds for the purpose, and926
shall be executed in the manner that the resolution authorizing927
the bonds may provide. The tax anticipation bonds shall bear928
interest at such rates, or at variable rate or rates changing from929
time to time, in accordance with provisions provided in the930
authorizing resolution, be in such denominations and form, either931
coupon or registered, carry such registration privileges, be932
payable in such medium of payment and at such place or places, and933
be subject to such terms of redemption, as the authority may934
authorize or provide. The tax anticipation bonds may be sold at935
public or private sale, and at, or at not less than the price or936
prices as the authority determines. If any officer whose937
signature or a facsimile of whose signature appears on any bonds938
or coupons ceases to be such officer before delivery of the bonds,939
the signature or facsimile shall nevertheless be sufficient for940
all purposes as if the officer had remained in office until941
delivery of the bonds, and in case the seal of the authority has942
been changed after a facsimile has been imprinted on the bonds,943
the facsimile seal will continue to be sufficient for all944
purposes.945

       Any resolution or resolutions authorizing any tax946
anticipation bonds or any issue of tax anticipation bonds may947
contain provisions, subject to any agreements with bondholders as948
may then exist, which provisions shall be a part of the contract949
with the holders of the bonds, as to the pledging of any or all of950
the authority's anticipated excise taxes, contributions, and951
revenues to secure the payment of the bonds or of any issue of the952
bonds; the use and disposition of revenues of the authority; the953
crediting of the proceeds of the sale of bonds to and among the954
funds referred to or provided for in the resolution; limitations955
on the purpose to which the proceeds of sale of the bonds may be956
applied and the pledging of portions of such proceeds to secure957
the payment of the bonds or of any issue of the bonds; as to notes958
issued in anticipation of the issuance of bonds, the agreement of959
the authority to do all things necessary for the authorization,960
issuance, and sale of such bonds in such amounts as may be961
necessary for the timely retirement of such notes; limitations on962
the issuance of additional bonds; the terms upon which additional963
bonds may be issued and secured; the refunding of outstanding964
bonds; the procedure, if any, by which the terms of any contract965
with bondholders may be amended, the amount of bonds the holders966
of which must consent thereto, and the manner in which such967
consent may be given; securing any bonds by a trust agreement in968
accordance with section 351.16 of the Revised Code; any other969
matters, of like or different character, that in any way affect970
the security or protection of the bonds. The excise taxes971
anticipated by the bonds, including bonds anticipated by notes,972
shall not be subject to diminution by initiative or referendum or973
by law while the bonds or notes remain outstanding in accordance974
with their terms, unless provision is made by law or by the975
authority for an adequate substitute therefor reasonably976
satisfactory to the trustee, if a trust agreement secures the977
bonds.978

       Neither the members of the board of directors of the979
authority nor any person executing the bonds shall be liable980
personally on the bonds or be subject to any personal liability or981
accountability by reason of the issuance thereof.982

       Sec. 505.56.  Subject to the limitation in division (C)(1)(A)983
of section 5739.025739.08 of the Revised Code, a board of984
township trustees may by resolution adopted by a majority of the985
members of the board, levy an excise tax on transactions by which986
lodging by a hotel is or is to be furnished to transient guests.987
The board may establish all regulations necessary to provide for988
the administration and allocation of the tax. All funds arising989
from such an excise tax shall be deposited in the township990
treasury and may be expended for any lawful purpose. A board of991
township trustees shall not levy the tax authorized by this992
section in any city or village.993

       As used in this section, "hotel" and "transient guests" have994
the same meaning as in section 5739.01 of the Revised Code.995

       Sec. 3715.52.  (A) The following acts and causing them are996
prohibited:997

       (1) The manufacture, sale, or delivery, holding or offering998
for sale of any food, drug, device, or cosmetic that is999
adulterated or misbranded;1000

       (2) The adulteration or misbranding of any food, drug,1001
device, or cosmetic;1002

       (3) The receipt in commerce of any food, drug, device, or1003
cosmetic that is adulterated or misbranded, and the delivery or1004
proffered delivery thereof for pay or otherwise;1005

       (4) The sale, delivery for sale, holding for sale, or1006
offering for sale of any article in violation of section 3715.611007
or 3715.65 of the Revised Code;1008

       (5) The dissemination of any false advertisement;1009

       (6) The refusal to permit entry or inspection, or to permit1010
the taking of a sample, as authorized by section 3715.70 of the1011
Revised Code;1012

       (7) The giving of a guaranty or undertaking that is false,1013
except by a person who relied on a guaranty or undertaking to the1014
same effect signed by, and containing the name and address of the1015
person residing in this state from whom the person received in1016
good faith the food, drug, device, or cosmetic;1017

       (8) The removal or disposal of a detained or embargoed1018
article in violation of section 3715.55 or 3715.551 of the Revised1019
Code;1020

       (9) The alteration, mutilation, destruction, obliteration,1021
or removal of the whole or any part of the labeling of, or the1022
doing of any other act with respect to a food, drug, device, or1023
cosmetic, if the act is done while the article is held for sale1024
and results in the article being misbranded;1025

       (10) Forging, counterfeiting, simulating, or falsely1026
representing, or without proper authority using any mark, stamp,1027
tag, label, or other identification device authorized or required1028
by rules adopted pursuant to sections 3715.52 to 3715.72 of the1029
Revised Code;1030

       (11) The using, on the labeling of any drug or in any1031
advertisement relating to a drug, of any representation or1032
suggestion that any application with respect to the drug is1033
effective under section 3715.65 of the Revised Code or that the1034
drug complies with the provisions of that section;1035

       (12) The using by any person to the person's own advantage,1036
or revealing, other than to the director of agriculture or to the1037
courts when relevant in any judicial proceeding under sections1038
3715.52 to 3715.72 of the Revised Code, any information acquired1039
under authority of sections 3715.01 and 3715.52 to 3715.72 of the1040
Revised Code, concerning any information that as a trade secret is1041
entitled to protection;1042

       (13) The issuance by the manufacturer, packer, or1043
distributor of a dangerous drug of any advertisements, catalogues,1044
or price lists, except those lists specifically designed for1045
disseminating price change information, that do not contain in1046
clearly legible form the name and place of business of the1047
manufacturer who mixed the final ingredients and, if different,1048
the manufacturer who produced the drug in its finished dosage form1049
and, if different, the packer or distributor.1050

       (B)(1) No person at a flea market shall sell, offer for1051
sale, or knowingly permit the sale of any of the following1052
products:1053

       (a) Baby food, infant formula, or similar products;1054

       (b) Any drug, cosmetic, or device;1055

       (c) Any product on which is printed or stamped an expiration1056
date or a date recommended by the manufacturer as either the last1057
day on which the product should be offered for sale or the last1058
day on which the product should be used.1059

       (2) Division (B)(1) of this section does not apply to a1060
person who keeps available for public inspection an identification1061
card identifying the person as an authorized representative of the1062
manufacturer or distributor of any drug, cosmetic, or device, as1063
long as the card is not false, fraudulent, or fraudulently1064
obtained.1065

       (3) Division (B)(1)(c) of this section does not apply to a1066
person or governmental entity that is licensed as a retail food1067
establishment or food service operation under Chapter 3717. of the1068
Revised Code or is listed in division (B)(9) or (12) of section1069
3717.42 of the Revised Code.1070

       (4) As used in division (B)(1) of this section, "flea1071
market" means any location, other than a permanent retail store,1072
at which space is rented or otherwise made available to others for1073
the conduct of business as transient or limited vendors as defined1074
in section 5739.17 of the Revised Code.1075

       Sec. 4501.32.  (A) There is hereby created in the state1076
treasury the professional sports teams license plate fund. The1077
fund shall consist of the contributions that are paid to the1078
registrar of motor vehicles by applicants who voluntarily choose1079
to obtain license plates bearing the logo of a professional sports1080
team pursuant to section 4503.591 of the Revised Code.1081

       (B) If a professional sports team located in this state1082
desires to have its logo appear on license plates issued by this1083
state, it shall inform the largest convention and visitors' bureau1084
of the county in which the professional sports team is located of1085
that desire. That convention and visitors' bureau shall create a1086
sports commission to operate in that county to receive the1087
contributions that are paid by applicants who choose to be issued1088
license plates bearing the logo of that professional sports team1089
for display on their motor vehicles. The sports commission shall1090
negotiate with the professional sports team to permit the display1091
of the team's logo on license plates issued by this state, enter1092
into the contract with the team to permit such display, and pay to1093
the team any licensing or rights fee that must be paid in1094
connection with the issuance of the license plates. Upon1095
execution of the contract, the sports commission shall provide a1096
copy of it to the registrar of motor vehicles, along with any1097
other documentation the registrar may require. Upon receipt of1098
the contract and any required additional documentation, and when1099
the numerical requirement contained in division (A) of section1100
4503.78 of the Revised Code has been met relative to that1101
particular professional sports team, the registrar shall take the1102
measures necessary to issue license plates bearing the logo of1103
that team.1104

       The registrar shall pay to the sports commission all1105
contributions that are paid by applicants who obtain license1106
plates that bear the logos of participating professional sports1107
teams located in the county of the sports commission, irrespective1108
of the county of residence of an applicant.1109

       (C) A sports commission shall expend the money it receives1110
under this section to attract amateur regional, national, and1111
international sporting events to the municipal corporation,1112
county, or township in which it is located, and it may sponsor1113
such events. Prior to attracting or sponsoring such events, the1114
sports commission shall perform an economic analysis to determine1115
whether the proposed event will have a positive economic effect on1116
the greater area in which the event will be held. A sports1117
commission shall not expend any money it receives under this1118
section to attract or sponsor an amateur regional, national, or1119
international sporting event if its economic analysis does not1120
result in a finding that the proposed event will have a positive1121
economic effect on the greater area in which the event will be1122
held.1123

       A sports commission that receives money pursuant to this1124
section, in addition to any other duties imposed on it by law and1125
notwithstanding the scope of those duties, also shall encourage1126
the economic development of this state through the promotion of1127
tourism within all areas of this state. A sports commission that1128
receives ten thousand dollars or more during any calendar year1129
pursuant to this section shall submit a written report to the1130
director of development, on or before the first day of October of1131
the next succeeding year, detailing its efforts and expenditures1132
in the promotion of tourism during the calendar year in which it1133
received the ten thousand dollars or more.1134

       As used in this division, "promotion of tourism" means the1135
encouragement through advertising, educational and informational1136
means, and public relations, both within the state and outside of1137
it, of travel by persons away from their homes for pleasure,1138
personal reasons, or other purposes, except to work, to this state1139
or to the region in which the sports commission is located.1140

       (D) For purposes of this section:1141

       (1) The "largest" convention and visitors' bureau of a1142
county is the bureau that receives the largest amount of money1143
generated in that county from excise taxes levied on lodging1144
transactions under sections 351.021, 5739.025739.08, and 5739.0241145
5739.09 of the Revised Code.1146

       (2) "Sports commission" means a nonprofit corporation1147
organized under the laws of this state that is entitled to tax1148
exempt status under section 501(c)(3) of the "Internal Revenue1149
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501, as amended, and1150
whose function is to attract, promote, or sponsor sports and1151
athletic events within a municipal corporation, county, or1152
township.1153

       Such a commission shall consist of twenty-one members. Seven1154
members shall be appointed by the mayor of the largest city to be1155
served by the commission. Seven members shall be appointed by the1156
board of county commissioners of the county to be served by the1157
commission. Seven members shall be appointed by the largest1158
convention and visitor'svisitors' bureau in the area to be served1159
by the commission. A sports commission may provide all services1160
related to attracting, promoting, or sponsoring such events,1161
including, but not limited to, the booking of athletes and teams,1162
scheduling, and hiring or contracting for staff, ushers, managers,1163
and other persons whose functions are directly related to the1164
sports and athletic events the commission attracts, promotes, or1165
sponsors.1166

       Sec. 5739.01.  As used in this chapter:1167

       (A) "Person" includes individuals, receivers, assignees,1168
trustees in bankruptcy, estates, firms, partnerships,1169
associations, joint-stock companies, joint ventures, clubs,1170
societies, corporations, the state and its political subdivisions,1171
and combinations of individuals of any form.1172

       (B) "Sale" and "selling" include all of the following1173
transactions for a consideration in any manner, whether absolutely1174
or conditionally, whether for a price or rental, in money or by1175
exchange, and by any means whatsoever:1176

       (1) All transactions by which title or possession, or both,1177
of tangible personal property, is or is to be transferred, or a1178
license to use or consume tangible personal property is or is to1179
be granted;1180

       (2) All transactions by which lodging by a hotel is or is to1181
be furnished to transient guests;1182

       (3) All transactions by which:1183

       (a) An item of tangible personal property is or is to be1184
repaired, except property, the purchase of which would be exempt1185
from the tax imposed by section 5739.02 of the Revised Code;1186

       (b) An item of tangible personal property is or is to be1187
installed, except property, the purchase of which would be exempt1188
from the tax imposed by section 5739.02 of the Revised Code or1189
property that is or is to be incorporated into and will become a1190
part of a production, transmission, transportation, or1191
distribution system for the delivery of a public utility service;1192

       (c) The service of washing, cleaning, waxing, polishing, or1193
painting a motor vehicle is or is to be furnished;1194

       (d) Industrial laundry cleaning services are or are to be1195
provided;1196

       (e) Automatic data processing, computer services, or1197
electronic information services are or are to be provided for use1198
in business when the true object of the transaction is the receipt1199
by the consumer of automatic data processing, computer services,1200
or electronic information services rather than the receipt of1201
personal or professional services to which automatic data1202
processing, computer services, or electronic information services1203
are incidental or supplemental. Notwithstanding any other1204
provision of this chapter, such transactions that occur between1205
members of an affiliated group are not sales. An affiliated group1206
means two or more persons related in such a way that one person1207
owns or controls the business operation of another member of the1208
group. In the case of corporations with stock, one corporation1209
owns or controls another if it owns more than fifty per cent of1210
the other corporation's common stock with voting rights.1211

       (f) Telecommunications service, other than mobile1212
telecommunications service after July 31, 2002, is provided that1213
originates or terminates in this state and is charged in the1214
records of the telecommunications service vendor to the consumer's1215
telephone number or account in this state, or that both originates1216
and terminates in this state; but does not include transactions by1217
which telecommunications service is paid for by using a prepaid1218
authorization number or prepaid telephone calling card, or by1219
which local telecommunications service is obtained from a1220
coin-operated telephone and paid for by using coin;1221

       (g) Landscaping and lawn care service is or is to be1222
provided;1223

       (h) Private investigation and security service is or is to1224
be provided;1225

       (i) Information services or tangible personal property is1226
provided or ordered by means of a nine hundred telephone call;1227

       (j) Building maintenance and janitorial service is or is to1228
be provided;1229

       (k) Employment service is or is to be provided;1230

       (l) Employment placement service is or is to be provided;1231

       (m) Exterminating service is or is to be provided;1232

       (n) Physical fitness facility service is or is to be1233
provided;1234

       (o) Recreation and sports club service is or is to be1235
provided.1236

       (p) After July 31, 2002, mobile telecommunications service1237
is deemed to be provided in this state, pursuant to the "Mobile1238
Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 Stat.1239
626 (2000), 4 U.S.C.A. 116 to 126, as amended.1240

       (4) All transactions by which printed, imprinted,1241
overprinted, lithographic, multilithic, blueprinted, photostatic,1242
or other productions or reproductions of written or graphic matter1243
are or are to be furnished or transferred;1244

       (5) The production or fabrication of tangible personal1245
property for a consideration for consumers who furnish either1246
directly or indirectly the materials used in the production of1247
fabrication work; and include the furnishing, preparing, or1248
serving for a consideration of any tangible personal property1249
consumed on the premises of the person furnishing, preparing, or1250
serving such tangible personal property. Except as provided in1251
section 5739.03 of the Revised Code, a construction contract1252
pursuant to which tangible personal property is or is to be1253
incorporated into a structure or improvement on and becoming a1254
part of real property is not a sale of such tangible personal1255
property. The construction contractor is the consumer of such1256
tangible personal property, provided that the sale and1257
installation of carpeting, the sale and installation of1258
agricultural land tile, the sale and erection or installation of1259
portable grain bins, or the provision of landscaping and lawn care1260
service and the transfer of property as part of such service is1261
never a construction contract. The transfer of copyrighted motion1262
picture films for exhibition purposes is not a sale, except such1263
films as are used solely for advertising purposes. Other than as1264
provided in this section, "sale" and "selling" do not include1265
professional, insurance, or personal service transactions that1266
involve the transfer of tangible personal property as an1267
inconsequential element, for which no separate charges are made.1268

       As used in division (B)(5) of this section:1269

       (a) "Agricultural land tile" means fired clay or concrete1270
tile, or flexible or rigid perforated plastic pipe or tubing,1271
incorporated or to be incorporated into a subsurface drainage1272
system appurtenant to land used or to be used directly in1273
production by farming, agriculture, horticulture, or floriculture.1274
The term does not include such materials when they are or are to1275
be incorporated into a drainage system appurtenant to a building1276
or structure even if the building or structure is used or to be1277
used in such production.1278

       (b) "Portable grain bin" means a structure that is used or1279
to be used by a person engaged in farming or agriculture to1280
shelter the person's grain and that is designed to be disassembled1281
without significant damage to its component parts.1282

       (6) All transactions in which all of the shares of stock of1283
a closely held corporation are transferred, if the corporation is1284
not engaging in business and its entire assets consist of boats,1285
planes, motor vehicles, or other tangible personal property1286
operated primarily for the use and enjoyment of the shareholders;1287

       (7) All transactions in which a warranty, maintenance or1288
service contract, or similar agreement by which the vendor of the1289
warranty, contract, or agreement agrees to repair or maintain the1290
tangible personal property of the consumer is or is to be1291
provided;1292

       (8) All transactions by which a prepaid authorization number1293
or a prepaid telephone calling card is or is to be transferred.1294

       (C) "Vendor" means the person providing the service or by1295
whom the transfer effected or license given by a sale is or is to1296
be made or given and, for sales described in division (B)(3)(i) of1297
this section, the telecommunications service vendor that provides1298
the nine hundred telephone service; if two or more persons are1299
engaged in business at the same place of business under a single1300
trade name in which all collections on account of sales by each1301
are made, such persons shall constitute a single vendor.1302

       Physicians, dentists, hospitals, and veterinarians who are1303
engaged in selling tangible personal property as received from1304
others, such as eyeglasses, mouthwashes, dentifrices, or similar1305
articles, are vendors. Veterinarians who are engaged in1306
transferring to others for a consideration drugs, the dispensing1307
of which does not require an order of a licensed veterinarian or1308
physician under federal law, are vendors.1309

       (D)(1) "Consumer" means the person for whom the service is1310
provided, to whom the transfer effected or license given by a sale1311
is or is to be made or given, to whom the service described in1312
division (B)(3)(f) or (i) of this section is charged, or to whom1313
the admission is granted.1314

       (2) Physicians, dentists, hospitals, and blood banks1315
operated by nonprofit institutions and persons licensed to1316
practice veterinary medicine, surgery, and dentistry are consumers1317
of all tangible personal property and services purchased by them1318
in connection with the practice of medicine, dentistry, the1319
rendition of hospital or blood bank service, or the practice of1320
veterinary medicine, surgery, and dentistry. In addition to being1321
consumers of drugs administered by them or by their assistants1322
according to their direction, veterinarians also are consumers of1323
drugs that under federal law may be dispensed only by or upon the1324
order of a licensed veterinarian or physician, when transferred by1325
them to others for a consideration to provide treatment to animals1326
as directed by the veterinarian.1327

       (3) A person who performs a facility management, or similar1328
service contract for a contractee is a consumer of all tangible1329
personal property and services purchased for use in connection1330
with the performance of such contract, regardless of whether title1331
to any such property vests in the contractee. The purchase of1332
such property and services is not subject to the exception for1333
resale under division (E)(1) of this section.1334

       (4)(a) In the case of a person who purchases printed matter1335
for the purpose of distributing it or having it distributed to the1336
public or to a designated segment of the public, free of charge,1337
that person is the consumer of that printed matter, and the1338
purchase of that printed matter for that purpose is a sale.1339

       (b) In the case of a person who produces, rather than1340
purchases, printed matter for the purpose of distributing it or1341
having it distributed to the public or to a designated segment of1342
the public, free of charge, that person is the consumer of all1343
tangible personal property and services purchased for use or1344
consumption in the production of that printed matter. That person1345
is not entitled to claim exception under division (E)(8) of this1346
section for any material incorporated into the printed matter or1347
any equipment, supplies, or services primarily used to produce the1348
printed matter.1349

       (c) The distribution of printed matter to the public or to a1350
designated segment of the public, free of charge, is not a sale to1351
the members of the public to whom the printed matter is1352
distributed or to any persons who purchase space in the printed1353
matter for advertising or other purposes.1354

       (5) A person who makes sales of any of the services listed1355
in division (B)(3) of this section is the consumer of any tangible1356
personal property used in performing the service. The purchase of1357
that property is not subject to the resale exception under1358
division (E)(1) of this section.1359

       (E) "Retail sale" and "sales at retail" include all sales1360
except those in which the purpose of the consumer is:1361

       (1) To resell the thing transferred or benefit of the1362
service provided, by a person engaging in business, in the form in1363
which the same is, or is to be, received by the person;1364

       (2) To incorporate the thing transferred as a material or a1365
part, into tangible personal property to be produced for sale by1366
manufacturing, assembling, processing, or refining, or to use or1367
consume the thing transferred directly in producing a product for1368
sale by mining, including without limitation the extraction from1369
the earth of all substances that are classed geologically as1370
minerals, production of crude oil and natural gas, farming,1371
agriculture, horticulture, or floriculture, and persons engaged in1372
rendering farming, agricultural, horticultural, or floricultural1373
services, and services in the exploration for, and production of,1374
crude oil and natural gas, for others are deemed engaged directly1375
in farming, agriculture, horticulture, and floriculture, or1376
exploration for, and production of, crude oil and natural gas;1377
directly in the rendition of a public utility service, except that1378
the sales tax levied by section 5739.02 of the Revised Code shall1379
be collected upon all meals, drinks, and food for human1380
consumption sold upon Pullman and railroad coaches. This1381
paragraph does not exempt or except from "retail sale" or "sales1382
at retail" the sale of tangible personal property that is to be1383
incorporated into a structure or improvement to real property.1384

       (3) To hold the thing transferred as security for the1385
performance of an obligation of the vendor;1386

       (4) To use or consume the thing transferred in the process1387
of reclamation as required by Chapters 1513. and 1514. of the1388
Revised Code;1389

       (5) To resell, hold, use, or consume the thing transferred1390
as evidence of a contract of insurance;1391

       (6) To use or consume the thing directly in commercial1392
fishing;1393

       (7) To incorporate the thing transferred as a material or a1394
part into, or to use or consume the thing transferred directly in1395
the production of, magazines distributed as controlled circulation1396
publications;1397

       (8) To use or consume the thing transferred in the1398
production and preparation in suitable condition for market and1399
sale of printed, imprinted, overprinted, lithographic,1400
multilithic, blueprinted, photostatic, or other productions or1401
reproductions of written or graphic matter;1402

       (9) To use the thing transferred, as described in section1403
5739.011 of the Revised Code, primarily in a manufacturing1404
operation to produce tangible personal property for sale;1405

       (10) To use the benefit of a warranty, maintenance or1406
service contract, or similar agreement, as defined in division1407
(B)(7) of this section, to repair or maintain tangible personal1408
property, if all of the property that is the subject of the1409
warranty, contract, or agreement would be exempt on its purchase1410
from the tax imposed by section 5739.02 of the Revised Code;1411

       (11) To use the thing transferred as qualified research and1412
development equipment;1413

       (12) To use or consume the thing transferred primarily in1414
storing, transporting, mailing, or otherwise handling purchased1415
sales inventory in a warehouse, distribution center, or similar1416
facility when the inventory is primarily distributed outside this1417
state to retail stores of the person who owns or controls the1418
warehouse, distribution center, or similar facility, to retail1419
stores of an affiliated group of which that person is a member, or1420
by means of direct marketing. Division (E)(12) of this section1421
does not apply to motor vehicles registered for operation on the1422
public highways. As used in division (E)(12) of this section,1423
"affiliated group" has the same meaning as in division (B)(3)(e)1424
of this section and "direct marketing" has the same meaning as in1425
division (B)(37) of section 5739.02 of the Revised Code.1426

       (13) To use or consume the thing transferred to fulfill a1427
contractual obligation incurred by a warrantor pursuant to a1428
warranty provided as a part of the price of the tangible personal1429
property sold or by a vendor of a warranty, maintenance or service1430
contract, or similar agreement the provision of which is defined1431
as a sale under division (B)(7) of this section;1432

       (14) To use or consume the thing transferred in the1433
production of a newspaper for distribution to the public;1434

       (15) To use tangible personal property to perform a service1435
listed in division (B)(3) of this section, if the property is or1436
is to be permanently transferred to the consumer of the service as1437
an integral part of the performance of the service.1438

       As used in division (E) of this section, "thing" includes all1439
transactions included in divisions (B)(3)(a), (b), and (e) of this1440
section.1441

       Sales conducted through a coin-operated device that activates1442
vacuum equipment or equipment that dispenses water, whether or not1443
in combination with soap or other cleaning agents or wax, to the1444
consumer for the consumer's use on the premises in washing,1445
cleaning, or waxing a motor vehicle, provided no other personal1446
property or personal service is provided as part of the1447
transaction, are not retail sales or sales at retail.1448

       (F) "Business" includes any activity engaged in by any1449
person with the object of gain, benefit, or advantage, either1450
direct or indirect. "Business" does not include the activity of a1451
person in managing and investing the person's own funds.1452

       (G) "Engaging in business" means commencing, conducting, or1453
continuing in business, and liquidating a business when the1454
liquidator thereof holds itself out to the public as conducting1455
such business. Making a casual sale is not engaging in business.1456

       (H)(1) "Price," except as provided in divisions (H)(2) and1457
(3) of this section, means the aggregate value in money of1458
anything paid or delivered, or promised to be paid or delivered,1459
in the complete performance of a retail sale, without any1460
deduction on account of the cost of the property sold, cost of1461
materials used, labor or service cost, interest, discount paid or1462
allowed after the sale is consummated, or any other expense. If1463
the retail sale consists of the rental or lease of tangible1464
personal property, "price" means the aggregate value in money of1465
anything paid or delivered, or promised to be paid or delivered,1466
in the complete performance of the rental or lease, without any1467
deduction for tax, interest, labor or service charge, damage1468
liability waiver, termination or damage charge, discount paid or1469
allowed after the lease is consummated, or any other expense. The1470
sales tax shall be calculated and collected by the lessor on each1471
payment made by the lessee. "Price" does not include the1472
consideration received as a deposit refundable to the consumer1473
upon return of a beverage container, the consideration received as1474
a deposit on a carton or case that is used for such returnable1475
containers, or the consideration received as a refundable security1476
deposit for the use of tangible personal property to the extent1477
that it actually is refunded, if the consideration for such1478
refundable deposit is separately stated from the consideration1479
received or to be received for the tangible personal property1480
transferred in the retail sale. Such separation must appear in1481
the sales agreement or on the initial invoice or initial billing1482
rendered by the vendor to the consumer. Price is the amount1483
received inclusive of the tax, provided the vendor establishes to1484
the satisfaction of the tax commissioner that the tax was added to1485
the price. When the price includes both a charge for tangible1486
personal property and a charge for providing a service and the1487
sale of the property and the charge for the service are separately1488
taxable, or have a separately determinable tax status, the price1489
shall be separately stated for each such charge so the tax can be1490
correctly computed and charged.1491

       The tax collected by the vendor from the consumer under this1492
chapter is not part of the price, but is a tax collection for the1493
benefit of the state and of counties levying an additional sales1494
tax pursuant to section 5739.021 or 5739.026 of the Revised Code1495
and of transit authorities levying an additional sales tax1496
pursuant to section 5739.023 of the Revised Code. Except for the1497
discount authorized in section 5739.12 of the Revised Code, no1498
person other than the state or such a county or transit authority1499
shall derive any benefit from the collection or payment of such1500
tax.1501

       (2) In the case of a sale of any new motor vehicle by a new1502
motor vehicle dealer, as defined in section 4517.01 of the Revised1503
Code, in which another motor vehicle is accepted by the dealer as1504
part of the consideration received, "price" has the same meaning1505
as in division (H)(1) of this section, reduced by the credit1506
afforded the consumer by the dealer for the motor vehicle received1507
in trade.1508

       (3) In the case of a sale of any watercraft or outboard1509
motor by a watercraft dealer licensed in accordance with section1510
1547.543 of the Revised Code, in which another watercraft,1511
watercraft and trailer, or outboard motor is accepted by the1512
dealer as part of the consideration received, "price" has the same1513
meaning as in division (H)(1) of this section, reduced by the1514
credit afforded the consumer by the dealer for the watercraft,1515
watercraft and trailer, or outboard motor received in trade. As1516
used in division (H)(3) of this section, "watercraft" includes an1517
outdrive unit attached to the watercraft.1518

       (I) "Receipts" means the total amount of the prices of the1519
sales of vendors, provided that cash discounts allowed and taken1520
on sales at the time they are consummated are not included, minus1521
any amount deducted as a bad debt pursuant to section 5739.121 of1522
the Revised Code. "Receipts" does not include the sale price of1523
property returned or services rejected by consumers when the full1524
sale price and tax are refunded either in cash or by credit.1525

       (J) "Place of business" means any location at which a person1526
engages in business.1527

       (K) "Premises" includes any real property or portion thereof1528
upon which any person engages in selling tangible personal1529
property at retail or making retail sales and also includes any1530
real property or portion thereof designated for, or devoted to,1531
use in conjunction with the business engaged in by such person.1532

       (L) "Casual sale" means a sale of an item of tangible1533
personal property that was obtained by the person making the1534
sale, through purchase or otherwise, for the person's own use in1535
this state and was previously subject to any state's taxing1536
jurisdiction on its sale or use, and includes such items acquired1537
for the seller's use that are sold by an auctioneer employed1538
directly by the person for such purpose, provided the location of1539
such sales is not the auctioneer's permanent place of business. As1540
used in this division, "permanent place of business" includes any1541
location where such auctioneer has conducted more than two1542
auctions during the year.1543

       (M) "Hotel" means every establishment kept, used,1544
maintained, advertised, or held out to the public to be a place1545
where sleeping accommodations are offered to guests, in which five1546
or more rooms are used for the accommodation of such guests,1547
whether the rooms are in one or several structures.1548

       (N) "Transient guests" means persons occupying a room or1549
rooms for sleeping accommodations for less than thirty consecutive1550
days.1551

       (O) "Making retail sales" means the effecting of1552
transactions wherein one party is obligated to pay the price and1553
the other party is obligated to provide a service or to transfer1554
title to or possession of the item sold. "Making retail sales"1555
does not include the preliminary acts of promoting or soliciting1556
the retail sales, other than the distribution of printed matter1557
which displays or describes and prices the item offered for sale,1558
nor does it include delivery of a predetermined quantity of1559
tangible personal property or transportation of property or1560
personnel to or from a place where a service is performed,1561
regardless of whether the vendor is a delivery vendor.1562

       (P) "Used directly in the rendition of a public utility1563
service" means that property which is to be incorporated into and1564
will become a part of the consumer's production, transmission,1565
transportation, or distribution system and that retains its1566
classification as tangible personal property after such1567
incorporation; fuel or power used in the production, transmission,1568
transportation, or distribution system; and tangible personal1569
property used in the repair and maintenance of the production,1570
transmission, transportation, or distribution system, including1571
only such motor vehicles as are specially designed and equipped1572
for such use. Tangible personal property and services used1573
primarily in providing highway transportation for hire are not1574
used in providing a public utility service as defined in this1575
division.1576

       (Q) "Refining" means removing or separating a desirable1577
product from raw or contaminated materials by distillation or1578
physical, mechanical, or chemical processes.1579

       (R) "Assembly" and "assembling" mean attaching or fitting1580
together parts to form a product, but do not include packaging a1581
product.1582

       (S) "Manufacturing operation" means a process in which1583
materials are changed, converted, or transformed into a different1584
state or form from which they previously existed and includes1585
refining materials, assembling parts, and preparing raw materials1586
and parts by mixing, measuring, blending, or otherwise committing1587
such materials or parts to the manufacturing process.1588
"Manufacturing operation" does not include packaging.1589

       (T) "Fiscal officer" means, with respect to a regional1590
transit authority, the secretary-treasurer thereof, and with1591
respect to a county that is a transit authority, the fiscal1592
officer of the county transit board if one is appointed pursuant1593
to section 306.03 of the Revised Code or the county auditor if the1594
board of county commissioners operates the county transit system.1595

       (U) "Transit authority" means a regional transit authority1596
created pursuant to section 306.31 of the Revised Code or a county1597
in which a county transit system is created pursuant to section1598
306.01 of the Revised Code. For the purposes of this chapter, a1599
transit authority must extend to at least the entire area of a1600
single county. A transit authority that includes territory in1601
more than one county must include all the area of the most1602
populous county that is a part of such transit authority. County1603
population shall be measured by the most recent census taken by1604
the United States census bureau.1605

       (V) "Legislative authority" means, with respect to a1606
regional transit authority, the board of trustees thereof, and1607
with respect to a county that is a transit authority, the board1608
of county commissioners.1609

       (W) "Territory of the transit authority" means all of the1610
area included within the territorial boundaries of a transit1611
authority as they from time to time exist. Such territorial1612
boundaries must at all times include all the area of a single1613
county or all the area of the most populous county that is a part1614
of such transit authority. County population shall be measured by1615
the most recent census taken by the United States census bureau.1616

       (X) "Providing a service" means providing or furnishing1617
anything described in division (B)(3) of this section for1618
consideration.1619

       (Y)(1)(a) "Automatic data processing" means processing of1620
others' data, including keypunching or similar data entry services1621
together with verification thereof, or providing access to1622
computer equipment for the purpose of processing data.1623

       (b) "Computer services" means providing services consisting1624
of specifying computer hardware configurations and evaluating1625
technical processing characteristics, computer programming, and1626
training of computer programmers and operators, provided in1627
conjunction with and to support the sale, lease, or operation of1628
taxable computer equipment or systems.1629

       (c) "Electronic information services" means providing access1630
to computer equipment by means of telecommunications equipment for1631
the purpose of either of the following:1632

       (i) Examining or acquiring data stored in or accessible to1633
the computer equipment;1634

       (ii) Placing data into the computer equipment to be1635
retrieved by designated recipients with access to the computer1636
equipment.1637

       (d) "Automatic data processing, computer services, or1638
electronic information services" shall not include personal or1639
professional services.1640

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this1641
section, "personal and professional services" means all services1642
other than automatic data processing, computer services, or1643
electronic information services, including but not limited to:1644

       (a) Accounting and legal services such as advice on tax1645
matters, asset management, budgetary matters, quality control,1646
information security, and auditing and any other situation where1647
the service provider receives data or information and studies,1648
alters, analyzes, interprets, or adjusts such material;1649

       (b) Analyzing business policies and procedures;1650

       (c) Identifying management information needs;1651

       (d) Feasibility studies, including economic and technical1652
analysis of existing or potential computer hardware or software1653
needs and alternatives;1654

       (e) Designing policies, procedures, and custom software for1655
collecting business information, and determining how data should1656
be summarized, sequenced, formatted, processed, controlled, and1657
reported so that it will be meaningful to management;1658

       (f) Developing policies and procedures that document how1659
business events and transactions are to be authorized, executed,1660
and controlled;1661

       (g) Testing of business procedures;1662

       (h) Training personnel in business procedure applications;1663

       (i) Providing credit information to users of such1664
information by a consumer reporting agency, as defined in the1665
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C.1666
1681a(f), or as hereafter amended, including but not limited to1667
gathering, organizing, analyzing, recording, and furnishing such1668
information by any oral, written, graphic, or electronic medium;1669

       (j) Providing debt collection services by any oral, written,1670
graphic, or electronic means.1671

       The services listed in divisions (Y)(2)(a) to (j) of this1672
section are not automatic data processing or computer services.1673

       (Z) "Highway transportation for hire" means the1674
transportation of personal property belonging to others for1675
consideration by any of the following:1676

       (1) The holder of a permit or certificate issued by this1677
state or the United States authorizing the holder to engage in1678
transportation of personal property belonging to others for1679
consideration over or on highways, roadways, streets, or any1680
similar public thoroughfare;1681

       (2) A person who engages in the transportation of personal1682
property belonging to others for consideration over or on1683
highways, roadways, streets, or any similar public thoroughfare1684
but who could not have engaged in such transportation on December1685
11, 1985, unless the person was the holder of a permit or1686
certificate of the types described in division (Z)(1) of this1687
section;1688

       (3) A person who leases a motor vehicle to and operates it1689
for a person described by division (Z)(1) or (2) of this section.1690

       (AA) "Telecommunications service" means the transmission of1691
any interactive, two-way electromagnetic communications, including1692
voice, image, data, and information, through the use of any medium1693
such as wires, cables, microwaves, cellular radio, radio waves,1694
light waves, or any combination of those or similar media.1695
"Telecommunications service" includes message toll service even1696
though the vendor provides the message toll service by means of1697
wide area transmission type service or private communications1698
service purchased from another telecommunications service1699
provider, but does not include any of the following:1700

       (1) Sales of incoming or outgoing wide area transmission1701
service or wide area transmission type service, including eight1702
hundred or eight-hundred-type service, to the person contracting1703
for the receipt of that service;1704

       (2) Sales of private communications service to the person1705
contracting for the receipt of that service that entitles the1706
purchaser to exclusive or priority use of a communications channel1707
or group of channels between exchanges;1708

       (3) Sales of telecommunications service by companies subject1709
to the excise tax imposed by Chapter 5727. of the Revised Code;1710

       (4) Sales of telecommunications service to a provider of1711
telecommunications service, including access services, for use in1712
providing telecommunications service;1713

       (5) Value-added nonvoice services in which computer1714
processing applications are used to act on the form, content,1715
code, or protocol of the information to be transmitted;1716

       (6) Transmission of interactive video programming by a cable1717
television system as defined in section 505.90 of the Revised1718
Code;1719

       (7) After July 31, 2002, mobile telecommunications service.1720

       (BB) "Industrial laundry cleaning services" means removing1721
soil or dirt from or supplying towels, linens, or articles of1722
clothing that belong to others and are used in a trade or1723
business.1724

       (CC) "Magazines distributed as controlled circulation1725
publications" means magazines containing at least twenty-four1726
pages, at least twenty-five per cent editorial content, issued at1727
regular intervals four or more times a year, and circulated1728
without charge to the recipient, provided that such magazines are1729
not owned or controlled by individuals or business concerns which1730
conduct such publications as an auxiliary to, and essentially for1731
the advancement of the main business or calling of, those who own1732
or control them.1733

       (DD) "Landscaping and lawn care service" means the services1734
of planting, seeding, sodding, removing, cutting, trimming,1735
pruning, mulching, aerating, applying chemicals, watering,1736
fertilizing, and providing similar services to establish, promote,1737
or control the growth of trees, shrubs, flowers, grass, ground1738
cover, and other flora, or otherwise maintaining a lawn or1739
landscape grown or maintained by the owner for ornamentation or1740
other nonagricultural purpose. However, "landscaping and lawn1741
care service" does not include the providing of such services by a1742
person who has less than five thousand dollars in sales of such1743
services during the calendar year.1744

       (EE) "Private investigation and security service" means the1745
performance of any activity for which the provider of such service1746
is required to be licensed pursuant to Chapter 4749. of the1747
Revised Code, or would be required to be so licensed in performing1748
such services in this state, and also includes the services of1749
conducting polygraph examinations and of monitoring or overseeing1750
the activities on or in, or the condition of, the consumer's home,1751
business, or other facility by means of electronic or similar1752
monitoring devices. "Private investigation and security service"1753
does not include special duty services provided by off-duty police1754
officers, deputy sheriffs, and other peace officers regularly1755
employed by the state or a political subdivision.1756

       (FF) "Information services" means providing conversation,1757
giving consultation or advice, playing or making a voice or other1758
recording, making or keeping a record of the number of callers,1759
and any other service provided to a consumer by means of a nine1760
hundred telephone call, except when the nine hundred telephone1761
call is the means by which the consumer makes a contribution to a1762
recognized charity.1763

       (GG) "Research and development" means designing, creating,1764
or formulating new or enhanced products, equipment, or1765
manufacturing processes, and conducting scientific or1766
technological inquiry and experimentation in the physical sciences1767
with the goal of increasing scientific knowledge which may reveal1768
the bases for new or enhanced products, equipment, or1769
manufacturing processes.1770

       (HH) "Qualified research and development equipment" means1771
capitalized tangible personal property, and leased personal1772
property that would be capitalized if purchased, used by a person1773
primarily to perform research and development. Tangible personal1774
property primarily used in testing, as defined in division (A)(4)1775
of section 5739.011 of the Revised Code, or used for recording or1776
storing test results, is not qualified research and development1777
equipment unless such property is primarily used by the consumer1778
in testing the product, equipment, or manufacturing process being1779
created, designed, or formulated by the consumer in the research1780
and development activity or in recording or storing such test1781
results.1782

       (II) "Building maintenance and janitorial service" means1783
cleaning the interior or exterior of a building and any tangible1784
personal property located therein or thereon, including any1785
services incidental to such cleaning for which no separate charge1786
is made. However, "building maintenance and janitorial service"1787
does not include the providing of such service by a person who has1788
less than five thousand dollars in sales of such service during1789
the calendar year.1790

       (JJ) "Employment service" means providing or supplying1791
personnel, on a temporary or long-term basis, to perform work or1792
labor under the supervision or control of another, when the1793
personnel so supplied receive their wages, salary, or other1794
compensation from the provider of the service. "Employment1795
service" does not include:1796

       (1) Acting as a contractor or subcontractor, where the1797
personnel performing the work are not under the direct control of1798
the purchaser.1799

       (2) Medical and health care services.1800

       (3) Supplying personnel to a purchaser pursuant to a1801
contract of at least one year between the service provider and the1802
purchaser that specifies that each employee covered under the1803
contract is assigned to the purchaser on a permanent basis.1804

       (4) Transactions between members of an affiliated group, as1805
defined in division (B)(3)(e) of this section.1806

       (KK) "Employment placement service" means locating or1807
finding employment for a person or finding or locating an employee1808
to fill an available position.1809

       (LL) "Exterminating service" means eradicating or attempting1810
to eradicate vermin infestations from a building or structure, or1811
the area surrounding a building or structure, and includes1812
activities to inspect, detect, or prevent vermin infestation of a1813
building or structure.1814

       (MM) "Physical fitness facility service" means all1815
transactions by which a membership is granted, maintained, or1816
renewed, including initiation fees, membership dues, renewal fees,1817
monthly minimum fees, and other similar fees and dues, by a1818
physical fitness facility such as an athletic club, health spa, or1819
gymnasium, which entitles the member to use the facility for1820
physical exercise.1821

       (NN) "Recreation and sports club service" means all1822
transactions by which a membership is granted, maintained, or1823
renewed, including initiation fees, membership dues, renewal fees,1824
monthly minimum fees, and other similar fees and dues, by a1825
recreation and sports club, which entitles the member to use the1826
facilities of the organization. "Recreation and sports club"1827
means an organization that has ownership of, or controls or leases1828
on a continuing, long-term basis, the facilities used by its1829
members and includes an aviation club, gun or shooting club, yacht1830
club, card club, swimming club, tennis club, golf club, country1831
club, riding club, amateur sports club, or similar organization.1832

       (OO) "Livestock" means farm animals commonly raised for food1833
or food production, and includes but is not limited to cattle,1834
sheep, goats, swine, and poultry. "Livestock" does not include1835
invertebrates, fish, amphibians, reptiles, horses, domestic pets,1836
animals for use in laboratories or for exhibition, or other1837
animals not commonly raised for food or food production.1838

       (PP) "Livestock structure" means a building or structure1839
used exclusively for the housing, raising, feeding, or sheltering1840
of livestock, and includes feed storage or handling structures and1841
structures for livestock waste handling.1842

       (QQ) "Horticulture" means the growing, cultivation, and1843
production of flowers, fruits, herbs, vegetables, sod, mushrooms,1844
and nursery stock. As used in this division, "nursery stock" has1845
the same meaning as in section 927.51 of the Revised Code.1846

       (RR) "Horticulture structure" means a building or structure1847
used exclusively for the commercial growing, raising, or1848
overwintering of horticultural products, and includes the area1849
used for stocking, storing, and packing horticultural products1850
when done in conjunction with the production of those products.1851

       (SS) "Newspaper" means an unbound publication bearing a1852
title or name that is regularly published, at least as frequently1853
as biweekly, and distributed from a fixed place of business to the1854
public in a specific geographic area, and that contains a1855
substantial amount of news matter of international, national, or1856
local events of interest to the general public.1857

       (TT) "Professional racing team" means a person that employs1858
at least twenty full-time employees for the purpose of conducting1859
a motor vehicle racing business for profit. The person must1860
conduct the business with the purpose of racing one or more motor1861
racing vehicles in at least ten competitive professional racing1862
events each year that comprise all or part of a motor racing1863
series sanctioned by one or more motor racing sanctioning1864
organizations. A "motor racing vehicle" means a vehicle for which1865
the chassis, engine, and parts are designed exclusively for motor1866
racing, and does not include a stock or production model vehicle1867
that may be modified for use in racing. For the purposes of this1868
division:1869

       (1) A "competitive professional racing event" is a motor1870
vehicle racing event sanctioned by one or more motor racing1871
sanctioning organizations, at which aggregate cash prizes in1872
excess of eight hundred thousand dollars are awarded to the1873
competitors.1874

       (2) "Full-time employee" means an individual who is employed1875
for consideration for thirty-five or more hours a week, or who1876
renders any other standard of service generally accepted by custom1877
or specified by contract as full-time employment.1878

       (UU)(1) "Prepaid authorization number" means a numeric or1879
alphanumeric combination that represents a prepaid account that1880
can be used by the account holder solely to obtain1881
telecommunications service, and includes any renewals or increases1882
in the prepaid account.1883

       (2) "Prepaid telephone calling card" means a tangible item1884
that contains a prepaid authorization number that can be used1885
solely to obtain telecommunications service, and includes any1886
renewals or increases in the prepaid account.1887

       (VV) "Mobile telecommunications service" has the same1888
meaning as in the "Mobile Telecommunications Sourcing Act," Pub.1889
L. No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as1890
amended.1891

       (WW) "Certified service provider" has the same meaning as in1892
section 5740.01 of the Revised Code.1893

       Sec. 5739.02.  For the purpose of providing revenue with1894
which to meet the needs of the state, for the use of the general1895
revenue fund of the state, for the purpose of securing a thorough1896
and efficient system of common schools throughout the state, for1897
the purpose of affording revenues, in addition to those from1898
general property taxes, permitted under constitutional1899
limitations, and from other sources, for the support of local1900
governmental functions, and for the purpose of reimbursing the1901
state for the expense of administering this chapter, an excise tax1902
is hereby levied on each retail sale made in this state.1903

       (A) The tax shall be collected pursuant to the schedules in1904
section 5739.025 of the Revised Code.1905

       The tax applies and is collectible when the sale is made,1906
regardless of the time when the price is paid or delivered.1907

       In the case of a sale, the price of which consists in whole1908
or in part of rentals for the use of the thing transferred, the1909
tax, as regards such rentals, shall be measured by the1910
installments thereof.1911

       In the case of a sale of a service defined under division1912
(MM) or (NN) of section 5739.01 of the Revised Code, the price of1913
which consists in whole or in part of a membership for the receipt1914
of the benefit of the service, the tax applicable to the sale1915
shall be measured by the installments thereof.1916

       (B) The tax does not apply to the following:1917

       (1) Sales to the state or any of its political subdivisions,1918
or to any other state or its political subdivisions if the laws of1919
that state exempt from taxation sales made to this state and its1920
political subdivisions;1921

       (2) Sales of food for human consumption off the premises1922
where sold;1923

       (3) Sales of food sold to students only in a cafeteria,1924
dormitory, fraternity, or sorority maintained in a private,1925
public, or parochial school, college, or university;1926

       (4) Sales of newspapers, and of magazine subscriptions1927
shipped by second class mail, and sales or transfers of magazines1928
distributed as controlled circulation publications;1929

       (5) The furnishing, preparing, or serving of meals without1930
charge by an employer to an employee provided the employer records1931
the meals as part compensation for services performed or work1932
done;1933

       (6) Sales of motor fuel upon receipt, use, distribution, or1934
sale of which in this state a tax is imposed by the law of this1935
state, but this exemption shall not apply to the sale of motor1936
fuel on which a refund of the tax is allowable under section1937
5735.14 of the Revised Code; and the tax commissioner may deduct1938
the amount of tax levied by this section applicable to the price1939
of motor fuel when granting a refund of motor fuel tax pursuant to1940
section 5735.14 of the Revised Code and shall cause the amount1941
deducted to be paid into the general revenue fund of this state;1942

       (7) Sales of natural gas by a natural gas company, of water1943
by a water-works company, or of steam by a heating company, if in1944
each case the thing sold is delivered to consumers through pipes1945
or conduits, and all sales of communications services by a1946
telephone or telegraph company, all terms as defined in section1947
5727.01 of the Revised Code;1948

       (8) Casual sales by a person, or auctioneer employed1949
directly by the person to conduct such sales, except as to such1950
sales of motor vehicles, watercraft or outboard motors required to1951
be titled under section 1548.06 of the Revised Code, watercraft1952
documented with the United States coast guard, snowmobiles, and1953
all-purpose vehicles as defined in section 4519.01 of the Revised1954
Code;1955

       (9) Sales of services or tangible personal property, other1956
than motor vehicles, mobile homes, and manufactured homes, by1957
churches, organizations exempt from taxation under section1958
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit1959
organizations operated exclusively for charitable purposes as1960
defined in division (B)(12) of this section, provided that the1961
number of days on which such tangible personal property or1962
services, other than items never subject to the tax, are sold does1963
not exceed six in any calendar year. If the number of days on1964
which such sales are made exceeds six in any calendar year, the1965
church or organization shall be considered to be engaged in1966
business and all subsequent sales by it shall be subject to the1967
tax. In counting the number of days, all sales by groups within a1968
church or within an organization shall be considered to be sales1969
of that church or organization, except that sales made by separate1970
student clubs and other groups of students of a primary or1971
secondary school, and sales made by a parent-teacher association,1972
booster group, or similar organization that raises money to1973
support or fund curricular or extracurricular activities of a1974
primary or secondary school, shall not be considered to be sales1975
of such school, and sales by each such club, group, association,1976
or organization shall be counted separately for purposes of the1977
six-day limitation. This division does not apply to sales by a1978
noncommercial educational radio or television broadcasting1979
station.1980

       (10) Sales not within the taxing power of this state under1981
the Constitution of the United States;1982

       (11) The transportation of persons or property, unless the1983
transportation is by a private investigation and security service;1984

       (12) Sales of tangible personal property or services to1985
churches, to organizations exempt from taxation under section1986
501(c)(3) of the Internal Revenue Code of 1986, and to any other1987
nonprofit organizations operated exclusively for charitable1988
purposes in this state, no part of the net income of which inures1989
to the benefit of any private shareholder or individual, and no1990
substantial part of the activities of which consists of carrying1991
on propaganda or otherwise attempting to influence legislation;1992
sales to offices administering one or more homes for the aged or1993
one or more hospital facilities exempt under section 140.08 of the1994
Revised Code; and sales to organizations described in division (D)1995
of section 5709.12 of the Revised Code.1996

       "Charitable purposes" means the relief of poverty; the1997
improvement of health through the alleviation of illness, disease,1998
or injury; the operation of an organization exclusively for the1999
provision of professional, laundry, printing, and purchasing2000
services to hospitals or charitable institutions; the operation of2001
a home for the aged, as defined in section 5701.13 of the Revised2002
Code; the operation of a radio or television broadcasting station2003
that is licensed by the federal communications commission as a2004
noncommercial educational radio or television station; the2005
operation of a nonprofit animal adoption service or a county2006
humane society; the promotion of education by an institution of2007
learning that maintains a faculty of qualified instructors,2008
teaches regular continuous courses of study, and confers a2009
recognized diploma upon completion of a specific curriculum; the2010
operation of a parent-teacher association, booster group, or2011
similar organization primarily engaged in the promotion and2012
support of the curricular or extracurricular activities of a2013
primary or secondary school; the operation of a community or area2014
center in which presentations in music, dramatics, the arts, and2015
related fields are made in order to foster public interest and2016
education therein; the production of performances in music,2017
dramatics, and the arts; or the promotion of education by an2018
organization engaged in carrying on research in, or the2019
dissemination of, scientific and technological knowledge and2020
information primarily for the public.2021

       Nothing in this division shall be deemed to exempt sales to2022
any organization for use in the operation or carrying on of a2023
trade or business, or sales to a home for the aged for use in the2024
operation of independent living facilities as defined in division2025
(A) of section 5709.12 of the Revised Code.2026

       (13) Building and construction materials and services sold2027
to construction contractors for incorporation into a structure or2028
improvement to real property under a construction contract with2029
this state or a political subdivision thereof, or with the United2030
States government or any of its agencies; building and2031
construction materials and services sold to construction2032
contractors for incorporation into a structure or improvement to2033
real property that are accepted for ownership by this state or any2034
of its political subdivisions, or by the United States government2035
or any of its agencies at the time of completion of such2036
structures or improvements; building and construction materials2037
sold to construction contractors for incorporation into a2038
horticulture structure or livestock structure for a person engaged2039
in the business of horticulture or producing livestock; building2040
materials and services sold to a construction contractor for2041
incorporation into a house of public worship or religious2042
education, or a building used exclusively for charitable purposes2043
under a construction contract with an organization whose purpose2044
is as described in division (B)(12) of this section; building2045
materials and services sold to a construction contractor for2046
incorporation into a building under a construction contract with2047
an organization exempt from taxation under section 501(c)(3) of2048
the Internal Revenue Code of 1986 when the building is to be used2049
exclusively for the organization's exempt purposes; building and2050
construction materials sold for incorporation into the original2051
construction of a sports facility under section 307.696 of the2052
Revised Code; and building and construction materials and services2053
sold to a construction contractor for incorporation into real2054
property outside this state if such materials and services, when2055
sold to a construction contractor in the state in which the real2056
property is located for incorporation into real property in that2057
state, would be exempt from a tax on sales levied by that state;2058

       (14) Sales of ships or vessels or rail rolling stock used or2059
to be used principally in interstate or foreign commerce, and2060
repairs, alterations, fuel, and lubricants for such ships or2061
vessels or rail rolling stock;2062

       (15) Sales to persons engaged in any of the activities2063
mentioned in division (E)(2) or (9) of section 5739.01 of the2064
Revised Code, to persons engaged in making retail sales, or to2065
persons who purchase for sale from a manufacturer tangible2066
personal property that was produced by the manufacturer in2067
accordance with specific designs provided by the purchaser, of2068
packages, including material, labels, and parts for packages, and2069
of machinery, equipment, and material for use primarily in2070
packaging tangible personal property produced for sale, including2071
any machinery, equipment, and supplies used to make labels or2072
packages, to prepare packages or products for labeling, or to2073
label packages or products, by or on the order of the person doing2074
the packaging, or sold at retail. "Packages" includes bags,2075
baskets, cartons, crates, boxes, cans, bottles, bindings,2076
wrappings, and other similar devices and containers, and2077
"packaging" means placing therein.2078

       (16) Sales of food to persons using food stamp benefits to2079
purchase the food. As used in division (B)(16) of this section,2080
"food" has the same meaning as in the "Food Stamp Act of 1977," 912081
Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations2082
adopted pursuant to that act.2083

       (17) Sales to persons engaged in farming, agriculture,2084
horticulture, or floriculture, of tangible personal property for2085
use or consumption directly in the production by farming,2086
agriculture, horticulture, or floriculture of other tangible2087
personal property for use or consumption directly in the2088
production of tangible personal property for sale by farming,2089
agriculture, horticulture, or floriculture; or material and parts2090
for incorporation into any such tangible personal property for use2091
or consumption in production; and of tangible personal property2092
for such use or consumption in the conditioning or holding of2093
products produced by and for such use, consumption, or sale by2094
persons engaged in farming, agriculture, horticulture, or2095
floriculture, except where such property is incorporated into real2096
property;2097

       (18) Sales of drugs dispensed by a licensed pharmacist upon2098
the order of a licensed health professional authorized to2099
prescribe drugs to a human being, as the term "licensed health2100
professional authorized to prescribe drugs" is defined in section2101
4729.01 of the Revised Code; insulin as recognized in the official2102
United States pharmacopoeia; urine and blood testing materials2103
when used by diabetics or persons with hypoglycemia to test for2104
glucose or acetone; hypodermic syringes and needles when used by2105
diabetics for insulin injections; epoetin alfa when purchased for2106
use in the treatment of persons with end-stage renal disease;2107
hospital beds when purchased for use by persons with medical2108
problems for medical purposes; and oxygen and oxygen-dispensing2109
equipment when purchased for use by persons with medical problems2110
for medical purposes;2111

       (19)(a) Sales of artificial limbs or portion thereof, breast2112
prostheses, and other prosthetic devices for humans; braces or2113
other devices for supporting weakened or nonfunctioning parts of2114
the human body; crutches or other devices to aid human2115
perambulation; and items of tangible personal property used to2116
supplement impaired functions of the human body such as2117
respiration, hearing, or elimination;2118

       (b) Sales of wheelchairs; items incorporated into or used in2119
conjunction with a motor vehicle for the purpose of transporting2120
wheelchairs, other than transportation conducted in connection2121
with the sale or delivery of wheelchairs; and items incorporated2122
into or used in conjunction with a motor vehicle that are2123
specifically designed to assist a person with a disability to2124
access or operate the motor vehicle. As used in this division,2125
"person with a disability" means any person who has lost the use2126
of one or both legs or one or both arms, who is blind, deaf, or2127
disabled to the extent that the person is unable to move about2128
without the aid of crutches or a wheelchair, or whose mobility is2129
restricted by a permanent cardiovascular, pulmonary, or other2130
disabling condition.2131

       (c) No exemption under this division shall be allowed for2132
nonprescription drugs, medicines, or remedies; items or devices2133
used to supplement vision; items or devices whose function is2134
solely or primarily cosmetic; or physical fitness equipment. This2135
division does not apply to sales to a physician or medical2136
facility for use in the treatment of a patient.2137

       (20) Sales of emergency and fire protection vehicles and2138
equipment to nonprofit organizations for use solely in providing2139
fire protection and emergency services, including trauma care and2140
emergency medical services, for political subdivisions of the2141
state;2142

       (21) Sales of tangible personal property manufactured in2143
this state, if sold by the manufacturer in this state to a2144
retailer for use in the retail business of the retailer outside of2145
this state and if possession is taken from the manufacturer by the2146
purchaser within this state for the sole purpose of immediately2147
removing the same from this state in a vehicle owned by the2148
purchaser;2149

       (22) Sales of services provided by the state or any of its2150
political subdivisions, agencies, instrumentalities, institutions,2151
or authorities, or by governmental entities of the state or any of2152
its political subdivisions, agencies, instrumentalities,2153
institutions, or authorities;2154

       (23) Sales of motor vehicles to nonresidents of this state2155
upon the presentation of an affidavit executed in this state by2156
the nonresident purchaser affirming that the purchaser is a2157
nonresident of this state, that possession of the motor vehicle is2158
taken in this state for the sole purpose of immediately removing2159
it from this state, that the motor vehicle will be permanently2160
titled and registered in another state, and that the motor vehicle2161
will not be used in this state;2162

       (24) Sales to persons engaged in the preparation of eggs for2163
sale of tangible personal property used or consumed directly in2164
such preparation, including such tangible personal property used2165
for cleaning, sanitizing, preserving, grading, sorting, and2166
classifying by size; packages, including material and parts for2167
packages, and machinery, equipment, and material for use in2168
packaging eggs for sale; and handling and transportation equipment2169
and parts therefor, except motor vehicles licensed to operate on2170
public highways, used in intraplant or interplant transfers or2171
shipment of eggs in the process of preparation for sale, when the2172
plant or plants within or between which such transfers or2173
shipments occur are operated by the same person. "Packages"2174
includes containers, cases, baskets, flats, fillers, filler flats,2175
cartons, closure materials, labels, and labeling materials, and2176
"packaging" means placing therein.2177

       (25)(a) Sales of water to a consumer for residential use,2178
except the sale of bottled water, distilled water, mineral water,2179
carbonated water, or ice;2180

       (b) Sales of water by a nonprofit corporation engaged2181
exclusively in the treatment, distribution, and sale of water to2182
consumers, if such water is delivered to consumers through pipes2183
or tubing.2184

       (26) Fees charged for inspection or reinspection of motor2185
vehicles under section 3704.14 of the Revised Code;2186

       (27) Sales to persons licensed to conduct a food service2187
operation pursuant to section 3717.43 of the Revised Code, of2188
tangible personal property primarily used directly for the2189
following:2190

       (a) To prepare food for human consumption for sale;2191

       (b) To preserve food that has been or will be prepared for2192
human consumption for sale by the food service operator, not2193
including tangible personal property used to display food for2194
selection by the consumer;2195

       (c) To clean tangible personal property used to prepare or2196
serve food for human consumption for sale.2197

       (28) Sales of animals by nonprofit animal adoption services2198
or county humane societies;2199

       (29) Sales of services to a corporation described in2200
division (A) of section 5709.72 of the Revised Code, and sales of2201
tangible personal property that qualifies for exemption from2202
taxation under section 5709.72 of the Revised Code;2203

       (30) Sales and installation of agricultural land tile, as2204
defined in division (B)(5)(a) of section 5739.01 of the Revised2205
Code;2206

       (31) Sales and erection or installation of portable grain2207
bins, as defined in division (B)(5)(b) of section 5739.01 of the2208
Revised Code;2209

       (32) The sale, lease, repair, and maintenance of, parts for,2210
or items attached to or incorporated in, motor vehicles that are2211
primarily used for transporting tangible personal property by a2212
person engaged in highway transportation for hire;2213

       (33) Sales to the state headquarters of any veterans'2214
organization in Ohio that is either incorporated and issued a2215
charter by the congress of the United States or is recognized by2216
the United States veterans administration, for use by the2217
headquarters;2218

       (34) Sales to a telecommunications service vendor of2219
tangible personal property and services used directly and2220
primarily in transmitting, receiving, switching, or recording any2221
interactive, two-way electromagnetic communications, including2222
voice, image, data, and information, through the use of any2223
medium, including, but not limited to, poles, wires, cables,2224
switching equipment, computers, and record storage devices and2225
media, and component parts for the tangible personal property. 2226
The exemption provided in division (B)(34) of this section shall2227
be in lieu of all other exceptions under division (E)(2) of2228
section 5739.01 of the Revised Code to which a telecommunications2229
service vendor may otherwise be entitled based upon the use of the2230
thing purchased in providing the telecommunications service.2231

       (35) Sales of investment metal bullion and investment coins.2232
"Investment metal bullion" means any elementary precious metal2233
that has been put through a process of smelting or refining,2234
including, but not limited to, gold, silver, platinum, and2235
palladium, and which is in such state or condition that its value2236
depends upon its content and not upon its form. "Investment metal2237
bullion" does not include fabricated precious metal that has been2238
processed or manufactured for one or more specific and customary2239
industrial, professional, or artistic uses. "Investment coins"2240
means numismatic coins or other forms of money and legal tender2241
manufactured of gold, silver, platinum, palladium, or other metal2242
under the laws of the United States or any foreign nation with a2243
fair market value greater than any statutory or nominal value of2244
such coins.2245

       (36)(a) Sales where the purpose of the consumer is to use or2246
consume the things transferred in making retail sales and2247
consisting of newspaper inserts, catalogues, coupons, flyers, gift2248
certificates, or other advertising material that prices and2249
describes tangible personal property offered for retail sale.2250

       (b) Sales to direct marketing vendors of preliminary2251
materials such as photographs, artwork, and typesetting that will2252
be used in printing advertising material; of printed matter that2253
offers free merchandise or chances to win sweepstake prizes and2254
that is mailed to potential customers with advertising material2255
described in division (B)(36)(a) of this section; and of equipment2256
such as telephones, computers, facsimile machines, and similar2257
tangible personal property primarily used to accept orders for2258
direct marketing retail sales.2259

       (c) Sales of automatic food vending machines that preserve2260
food with a shelf life of forty-five days or less by refrigeration2261
and dispense it to the consumer.2262

       For purposes of division (B)(36) of this section, "direct2263
marketing" means the method of selling where consumers order2264
tangible personal property by United States mail, delivery2265
service, or telecommunication and the vendor delivers or ships the2266
tangible personal property sold to the consumer from a warehouse,2267
catalogue distribution center, or similar fulfillment facility by2268
means of the United States mail, delivery service, or common2269
carrier.2270

       (37) Sales to a person engaged in the business of2271
horticulture or producing livestock of materials to be2272
incorporated into a horticulture structure or livestock structure;2273

       (38) The sale of a motor vehicle that is used exclusively2274
for a vanpool ridesharing arrangement to persons participating in2275
the vanpool ridesharing arrangement when the vendor is selling the2276
vehicle pursuant to a contract between the vendor and the2277
department of transportation;2278

       (39) Sales of personal computers, computer monitors,2279
computer keyboards, modems, and other peripheral computer2280
equipment to an individual who is licensed or certified to teach2281
in an elementary or a secondary school in this state for use by2282
that individual in preparation for teaching elementary or2283
secondary school students;2284

       (40) Sales to a professional racing team of any of the2285
following:2286

       (a) Motor racing vehicles;2287

       (b) Repair services for motor racing vehicles;2288

       (c) Items of property that are attached to or incorporated2289
in motor racing vehicles, including engines, chassis, and all2290
other components of the vehicles, and all spare, replacement, and2291
rebuilt parts or components of the vehicles; except not including2292
tires, consumable fluids, paint, and accessories consisting of2293
instrumentation sensors and related items added to the vehicle to2294
collect and transmit data by means of telemetry and other forms of2295
communication.2296

       (41) Sales of used manufactured homes and used mobile homes,2297
as defined in section 5739.0210 of the Revised Code, made on or2298
after January 1, 2000;2299

       (42) Sales of tangible personal property and services to a2300
provider of electricity used or consumed directly and primarily in2301
generating, transmitting, or distributing electricity for use by2302
others, including property that is or is to be incorporated into2303
and will become a part of the consumer's production, transmission,2304
or distribution system and that retains its classification as2305
tangible personal property after incorporation; fuel or power used2306
in the production, transmission, or distribution of electricity;2307
and tangible personal property and services used in the repair and2308
maintenance of the production, transmission, or distribution2309
system, including only those motor vehicles as are specially2310
designed and equipped for such use. The exemption provided in2311
this division shall be in lieu of all other exceptions in division2312
(E)(2) of section 5739.01 of the Revised Code to which a provider2313
of electricity may otherwise be entitled based on the use of the2314
tangible personal property or service purchased in generating,2315
transmitting, or distributing electricity.2316

       For the purpose of the proper administration of this chapter,2317
and to prevent the evasion of the tax, it is presumed that all2318
sales made in this state are subject to the tax until the contrary2319
is established.2320

       As used in this section, except in division (B)(16) of this2321
section, "food" includes cereals and cereal products, milk and2322
milk products including ice cream, meat and meat products, fish2323
and fish products, eggs and egg products, vegetables and vegetable2324
products, fruits, fruit products, and pure fruit juices,2325
condiments, sugar and sugar products, coffee and coffee2326
substitutes, tea, and cocoa and cocoa products. It does not2327
include: spirituous or malt liquors; soft drinks; sodas and2328
beverages that are ordinarily dispensed at bars and soda fountains2329
or in connection therewith, other than coffee, tea, and cocoa;2330
root beer and root beer extracts; malt and malt extracts; mineral2331
oils, cod liver oils, and halibut liver oil; medicines, including2332
tonics, vitamin preparations, and other products sold primarily2333
for their medicinal properties; and water, including mineral,2334
bottled, and carbonated waters, and ice.2335

       (C) The levy of an excise tax on transactions by which2336
lodging by a hotel is or is to be furnished to transient guests2337
pursuant to this section and division (B) of section 5739.01 of2338
the Revised Code does not prevent any of the following:2339

       (1) A municipal corporation or township from levying an2340
excise tax for any lawful purpose not to exceed three per cent on2341
transactions by which lodging by a hotel is or is to be furnished2342
to transient guests in addition to the tax levied by this section.2343
If a municipal corporation or township repeals a tax imposed under2344
division (C)(1) of this section and a county in which the2345
municipal corporation or township has territory has a tax imposed2346
under division (C) of section 5739.024 of the Revised Code in2347
effect, the municipal corporation or township may not reimpose its2348
tax as long as that county tax remains in effect. A municipal2349
corporation or township in which a tax is levied under division2350
(B)(2) of section 351.021 of the Revised Code may not increase the2351
rate of its tax levied under division (C)(1) of this section to2352
any rate that would cause the total taxes levied under both of2353
those divisions to exceed three per cent on any lodging2354
transaction within the municipal corporation or township.2355

       (2) A municipal corporation or a township from levying an2356
additional excise tax not to exceed three per cent on such2357
transactions pursuant to division (B) of section 5739.024 of the2358
Revised Code. Such tax is in addition to any tax imposed under2359
division (C)(1) of this section.2360

       (3) A county from levying an excise tax pursuant to division2361
(A) of section 5739.024 of the Revised Code.2362

       (4) A county from levying an excise tax not to exceed three2363
per cent of such transactions pursuant to division (C) of section2364
5739.024 of the Revised Code. Such a tax is in addition to any2365
tax imposed under division (C)(3) of this section.2366

       (5) A convention facilities authority, as defined in2367
division (A) of section 351.01 of the Revised Code, from levying2368
the excise taxes provided for in division (B) of section 351.0212369
of the Revised Code.2370

       (6) A county from levying an excise tax not to exceed one2371
and one-half per cent of such transactions pursuant to division2372
(D) of section 5739.024 of the Revised Code. Such tax is in2373
addition to any tax imposed under division (C)(3) or (4) of this2374
section.2375

       (7) A county from levying an excise tax not to exceed one2376
and one-half per cent of such transactions pursuant to division2377
(E) of section 5739.024 of the Revised Code. Such a tax is in2378
addition to any tax imposed under division (C)(3), (4), or (6) of2379
this section.2380

       (D) The levy of this tax on retail sales of recreation and2381
sports club service shall not prevent a municipal corporation from2382
levying any tax on recreation and sports club dues or on any2383
income generated by recreation and sports club dues.2384

       Sec. 5739.033.  The amount of tax due pursuant to sections2385
5739.02, 5739.021, 5739.023, and 5739.026 of the Revised Code is2386
the sum of the taxes imposed pursuant to those sections at the2387
situs of the consummation of the sale as determined under this2388
section.2389

       (A) Except as otherwise provided in this section and,2390
division (C) of section 5739.031, and section 5739.034 of the2391
Revised Code, all sales are conclusively determined to be2392
consummated at the vendor's place of business.2393

       (1) If the consumer or the consumer's agent takes possession2394
of the tangible personal property at a place of business of the2395
vendor where the purchase contract or agreement was made, the sale2396
is consummated at that place of business.2397

       (2) If the consumer or the consumer's agent takes possession2398
of the tangible personal property other than at a place of2399
business of the vendor, or takes possession at a warehouse or2400
similar facility of the vendor, the sale is consummated at the2401
vendor's place of business where the purchase contract or2402
agreement was made or the purchase order was received.2403

       (3) If the vendor provides a service specified in division2404
(B)(3)(a), (b), (c), (d), (n), or (o) of section 5739.01 of the2405
Revised Code, the sale is consummated at the vendor's place of2406
business where the service is performed or the contract or2407
agreement for the service was made or the purchase order was2408
received.2409

       (B) If the vendor is a transient vendor as specified in2410
division (B) of section 5739.17 of the Revised Code, the sale is2411
conclusively determined to be consummated at the vendor's2412
temporary place of business or, if the transient vendor is the2413
lessor of titled motor vehicles, titled watercraft, or titled2414
outboard motors, at the location where the lessee keeps the leased2415
property.2416

       (C) If the vendor makes sales of tangible personal property2417
from a stock of goods carried in a motor vehicle, from which the2418
purchaser makes selection and takes possession, or from which the2419
vendor sells tangible personal property the quantity of which has2420
not been determined prior to the time the purchaser takes2421
possession, the sale is conclusively determined to be consummated2422
at the location of the motor vehicle when the sale is made.2423

       (D) If the vendor is a delivery vendor as specified in2424
division (D) of section 5739.17 of the Revised Code, the sale is2425
conclusively determined to be consummated at the place where the2426
tangible personal property is delivered, where the leased property2427
is used, or where the service is performed or received.2428

       (E) If the vendor provides a service specified in division2429
(B)(3)(e), (g), (h), (j), (k), (l), or (m) of section 5739.01 of2430
the Revised Code, the sale is conclusively determined to be2431
consummated at the location of the consumer where the service is2432
performed or received.2433

       (F) Except as provided in division (I) of this section, if2434
the vendor provides a service specified in division (B)(3)(f) or2435
(i) of section 5739.01 of the Revised Code, the sale is2436
conclusively determined to be consummated at the location of the2437
telephone number or account as reflected in the records of the2438
vendor. If, in the case of a telecommunications service, the2439
telephone number or account is located outside this state, the2440
sale is conclusively determined to be consummated at the location2441
in this state from which the service originated.2442

       (G) If the vendor provides lodging to transient guests as2443
specified in division (B)(2) of section 5739.01 of the Revised2444
Code, the sale is conclusively determined to be consummated at the2445
location where the lodging is located.2446

       (H) If the vendor sells a warranty, maintenance or service2447
contract, or similar agreement as specified in division (B)(7) of2448
section 5739.01 of the Revised Code and the vendor is a delivery2449
vendor, the sale is conclusively determined to be consummated at2450
the location of the consumer. If the vendor is not a delivery2451
vendor, the sale is conclusively determined to be consummated at2452
the vendor's place of business where the contract or agreement was2453
made, unless the warranty or contract is a component of the sale2454
of a titled motor vehicle, titled watercraft, or titled outboard2455
motor, in which case the sale is conclusively determined to be2456
consummated in the county of titling.2457

       (I) Except as otherwise provided in this division, if the2458
vendor sells a prepaid authorization number or a prepaid telephone2459
calling card, the sale is conclusively determined to be2460
consummated at the vendor's place of business and shall be taxed2461
at the time of sale. If the vendor sells a prepaid authorization2462
number or prepaid telephone calling card through a telephone call,2463
electronic commerce, or any other form of remote commerce, the2464
sale is conclusively determined to be made at the consumer's2465
shipping address, or, if there is no item shipped, at the2466
consumer's billing address.2467

       Sec. 5739.034. (A) As used in this section, "customer,"2468
"home service provider," "licensed service area," and "place of2469
primary use" have the same meanings as in the "Mobile2470
Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 Stat.2471
631 (2000), 4 U.S.C.A. 124, as amended.2472

       (B) Notwithstanding section 5739.033 of the Revised Code, on2473
and after August 1, 2002, if a vendor provides mobile2474
telecommunications service, the situs of all sales of that service2475
is the residential or business street address that is the2476
customer's place of primary use of the service that is within the2477
licensed service area of the home service provider under the2478
"Mobile Telecommunications Sourcing Act," Pub. L. No. 106-252, 1142479
Stat. 626-632 (2000), 4 U.S.C.A. 116-126, as amended. The tax2480
commissioner may adopt rules necessary to implement and administer2481
this section, and may provide an electronic database to be used by2482
home service providers.2483

       Sec. 5739.08. The levy of an excise tax on transactions by2484
which lodging by a hotel is or is to be furnished to transient2485
guests pursuant to section 5739.02 and division (B) of section2486
5739.01 of the Revised Code does not prevent any of the following:2487

       (A) A municipal corporation or township from levying an2488
excise tax for any lawful purpose not to exceed three per cent on2489
transactions by which lodging by a hotel is or is to be furnished2490
to transient guests in addition to the tax levied by section2491
5739.02 of the Revised Code. If a municipal corporation or2492
township repeals a tax imposed under division (A) of this section,2493
and a county in which the municipal corporation or township has2494
territory has a tax imposed under division (C) of section 5739.092495
of the Revised Code in effect, the municipal corporation or2496
township may not reimpose its tax as long as that county tax2497
remains in effect. A municipal corporation or township in which a2498
tax is levied under division (B)(2) of section 351.021 of the2499
Revised Code may not increase the rate of its tax levied under2500
division (A) of this section to any rate that would cause the2501
total taxes levied under both of those divisions to exceed three2502
per cent on any lodging transaction within the municipal2503
corporation or township.2504

       (B) A municipal corporation or a township from levying an2505
additional excise tax not to exceed three per cent on such2506
transactions pursuant to division (B) of section 5739.09 of the2507
Revised Code. Such tax is in addition to any tax imposed under2508
division (A) of this section.2509

       (C) A county from levying an excise tax pursuant to division2510
(A) of section 5739.09 of the Revised Code;2511

       (D) A county from levying an excise tax not to exceed three2512
per cent of such transactions pursuant to division (C) of section2513
5739.09 of the Revised Code. Such a tax is in addition to any tax2514
imposed under division (C) of this section.2515

       (E) A convention facilities authority, as defined in2516
division (A) of section 351.01 of the Revised Code, from levying2517
the excise taxes provided for in division (B) of section 351.0212518
of the Revised Code;2519

       (F) A county from levying an excise tax not to exceed one2520
and one-half per cent of such transactions pursuant to division2521
(D) of section 5739.09 of the Revised Code. Such tax is in2522
addition to any tax imposed under division (C) or (D) of this2523
section.2524

       (G) A county from levying an excise tax not to exceed one2525
and one-half per cent of such transactions pursuant to division2526
(E) of section 5739.09 of the Revised Code. Such a tax is in2527
addition to any tax imposed under division (C), (D), or (F) of2528
this section.2529

       Sec. 5739.024.        Sec. 5739.09.  (A)(1) A board of county2530
commissioners may, by resolution adopted by a majority of the2531
members of the board, levy an excise tax not to exceed three per2532
cent on transactions by which lodging by a hotel is or is to be2533
furnished to transient guests. The board shall establish all2534
regulations necessary to provide for the administration and2535
allocation of the tax. The regulations may prescribe the time for2536
payment of the tax, and may provide for the imposition of a2537
penalty or interest, or both, for late payments, provided that the2538
penalty does not exceed ten per cent of the amount of tax due, and2539
the rate at which interest accrues does not exceed the rate per2540
annum prescribed pursuant to section 5703.47 of the Revised Code. 2541
Except as provided in divisions (A)(2) and (3) of this section,2542
the regulations shall provide, after deducting the real and actual2543
costs of administering the tax, for the return to each municipal2544
corporation or township that does not levy an excise tax on such2545
transactions, a uniform percentage of the tax collected in the2546
municipal corporation or in the unincorporated portion of the2547
township from each such transaction, not to exceed thirty-three2548
and one-third per cent. The remainder of the revenue arising from2549
the tax shall be deposited in a separate fund and shall be spent2550
solely to make contributions to the convention and visitors'2551
bureau operating within the county, including a pledge and2552
contribution of any portion of such remainder pursuant to an2553
agreement authorized by section 307.695 of the Revised Code. 2554
Except as provided in division (A)(2) or (3) of this section, on2555
and after May 10, 1994, a board of county commissioners may not2556
levy an excise tax pursuant to this division in any municipal2557
corporation or township located wholly or partly within the county2558
that has in effect an ordinance or resolution levying an excise2559
tax pursuant to division (B) of this section. The board of a2560
county that has levied a tax under division (C) of this section2561
may, by resolution adopted within ninety days after July 15, 1985,2562
by a majority of the members of the board, amend the resolution2563
levying a tax under this division to provide for a portion of that2564
tax to be pledged and contributed in accordance with an agreement2565
entered into under section 307.695 of the Revised Code. A tax,2566
any revenue from which is pledged pursuant to such an agreement,2567
shall remain in effect at the rate at which it is imposed for the2568
duration of the period for which the revenue therefrom has been so2569
pledged.2570

       (2) A board of county commissioners that levies an excise2571
tax under division (A)(1) of this section on June 30, 1997, at a2572
rate of three per cent, and that has pledged revenue from the tax2573
to an agreement entered into under section 307.695 of the Revised2574
Code, may amend the resolution levying that tax to provide for an2575
increase in the rate of the tax up to five per cent on each2576
transaction; to provide that revenue from the increase in the rate2577
shall be spent solely to make contributions to the convention and2578
visitors' bureau operating within the county to be used2579
specifically for promotion, advertising, and marketing of the2580
region in which the county is located; to provide that the rate in2581
excess of the three per cent levied under division (A)(1) of this2582
section shall remain in effect at the rate at which it is imposed2583
for the duration of the period during which any agreement is in2584
effect that was entered into under section 307.695 of the Revised2585
Code by the board of county commissioners levying a tax under2586
division (A)(1) of this section; and to provide that no portion of2587
that revenue need be returned to townships or municipal2588
corporations as would otherwise be required under division (A)(1)2589
of this section.2590

       (3) A board of county commissioners that levies a tax under2591
division (A)(1) of this section on March 18, 1999, at a rate of2592
three per cent may, by resolution adopted not later than2593
forty-five days after March 18, 1999, amend the resolution2594
levying the tax to provide for all of the following:2595

       (a) That the rate of the tax shall be increased by not more2596
than an additional four per cent on each transaction;2597

       (b) That all of the revenue from the increase in the rate2598
shall be pledged and contributed to a convention facilities2599
authority established by the board of county commissioners under2600
Chapter 351. of the Revised Code on or before November 15, 1998,2601
and used to pay costs of constructing, maintaining, operating, and2602
promoting a facility in the county, including paying bonds, or2603
notes issued in anticipation of bonds, as provided by that2604
chapter;2605

       (c) That no portion of the revenue arising from the increase2606
in rate need be returned to municipal corporations or townships as2607
otherwise required under division (A)(1) of this section;2608

       (d) That the increase in rate shall not be subject to2609
diminution by initiative or referendum or by law while any bonds,2610
or notes in anticipation of bonds, issued by the authority under2611
Chapter 351. of the Revised Code to which the revenue is pledged,2612
remain outstanding in accordance with their terms, unless2613
provision is made by law or by the board of county commissioners2614
for an adequate substitute therefor that is satisfactory to the2615
trustee if a trust agreement secures the bonds.2616

       Division (A)(3) of this section does not apply to the board2617
of county commissioners of any county in which a convention center2618
or facility exists or is being constructed on November 15, 1998,2619
or of any county in which a convention facilities authority levies2620
a tax pursuant to section 351.021 of the Revised Code on that2621
date.2622

       As used in division (A)(3) of this section, "costs" and2623
"facility" have the same meanings as in section 351.01 of the2624
Revised Code, and "convention center" has the same meaning as in2625
section 307.695 of the Revised Code.2626

       (B) The legislative authority of a municipal corporation or2627
the board of trustees of a township that is not wholly or partly2628
located in a county that has in effect a resolution levying an2629
excise tax pursuant to division (A)(1) of this section may by2630
ordinance or resolution levy an excise tax not to exceed three per2631
cent on transactions by which lodging by a hotel is or is to be2632
furnished to transient guests. The legislative authority of the2633
municipal corporation or township shall deposit at least fifty per2634
cent of the revenue from the tax levied pursuant to this division2635
into a separate fund, which shall be spent solely to make2636
contributions to convention and visitors' bureaus operating within2637
the county in which the municipal corporation or township is2638
wholly or partly located, and the balance of such revenue shall be2639
deposited in the general fund. The municipal corporation or2640
township shall establish all regulations necessary to provide for2641
the administration and allocation of the tax. The regulations may2642
prescribe the time for payment of the tax, and may provide for the2643
imposition of a penalty or interest, or both, for late payments,2644
provided that the penalty does not exceed ten per cent of the2645
amount of tax due, and the rate at which interest accrues does not2646
exceed the rate per annum prescribed pursuant to section 5703.472647
of the Revised Code. The levy of a tax under this division is in2648
addition to any tax imposed on the same transaction by a municipal2649
corporation or a township as authorized by division (C)(1)(A) of2650
section 5739.025739.08 of the Revised Code.2651

       (C) For the purpose of making the payments authorized by2652
section 307.695 of the Revised Code to construct and equip a2653
convention center in the county and to cover the costs of2654
administering the tax, a board of county commissioners of a county2655
where a tax imposed under division (A)(1) of this section is in2656
effect may, by resolution adopted within ninety days after July2657
15, 1985, by a majority of the members of the board, levy an2658
additional excise tax not to exceed three per cent on transactions2659
by which lodging by a hotel is or is to be furnished to transient2660
guests. The tax authorized by this division shall be in addition2661
to any tax that is levied pursuant to division (A) of this2662
section, but it shall not apply to transactions subject to a tax2663
levied by a municipal corporation or township pursuant to the2664
authorization granted by division (C)(1)(A) of section 5739.022665
5739.08 of the Revised Code. The board shall establish all2666
regulations necessary to provide for the administration and2667
allocation of the tax. The regulations may prescribe the time for2668
payment of the tax, and may provide for the imposition of a2669
penalty or interest, or both, for late payments, provided that the2670
penalty does not exceed ten per cent of the amount of tax due, and2671
the rate at which interest accrues does not exceed the rate per2672
annum prescribed pursuant to section 5703.47 of the Revised Code.2673
All revenues arising from the tax shall be expended in accordance2674
with section 307.695 of the Revised Code. A tax imposed under2675
this section shall remain in effect at the rate at which it is2676
imposed for the duration of the period for which the revenue2677
therefrom has been pledged pursuant to such section.2678

       (D) For the purpose of providing contributions under2679
division (B)(1) of section 307.671 of the Revised Code to enable2680
the acquisition, construction, and equipping of a port authority2681
educational and cultural facility in the county and, to the extent2682
provided for in the cooperative agreement authorized by that2683
section, for the purpose of paying debt service charges on bonds,2684
or notes in anticipation thereof, described in division (B)(1)(b)2685
of that section, a board of county commissioners, by resolution2686
adopted within ninety days after December 22, 1992, by a majority2687
of the members of the board, may levy an additional excise tax not2688
to exceed one and one-half per cent on transactions by which2689
lodging by a hotel is or is to be furnished to transient guests.2690
The excise tax authorized by this division shall be in addition to2691
any tax that is levied pursuant to divisions (A), (B), and (C) of2692
this section, to any excise tax levied pursuant to division (C) of2693
section 5739.025739.08 of the Revised Code, and to any excise tax2694
levied pursuant to section 351.021 of the Revised Code. The board2695
of county commissioners shall establish all regulations necessary2696
to provide for the administration and allocation of the tax that2697
are not inconsistent with this section or section 307.671 of the2698
Revised Code. The regulations may prescribe the time for payment2699
of the tax, and may provide for the imposition of a penalty or2700
interest, or both, for late payments, provided that the penalty2701
does not exceed ten per cent of the amount of tax due, and the2702
rate at which interest accrues does not exceed the rate per annum2703
prescribed pursuant to section 5703.47 of the Revised Code. All2704
revenues arising from the tax shall be expended in accordance with2705
section 307.671 of the Revised Code and division (D) of this2706
section. The levy of a tax imposed under this section may not2707
commence prior to the first day of the month next following the2708
execution of the cooperative agreement authorized by section2709
307.671 of the Revised Code by all parties to that agreement. Such2710
tax shall remain in effect at the rate at which it is imposed for2711
the period of time described in division (C) of section 307.671 of2712
the Revised Code for which the revenue from the tax has been2713
pledged by the county to the corporation pursuant to such section,2714
but, to any extent provided for in the cooperative agreement, for2715
no lesser period than the period of time required for payment of2716
the debt service charges on bonds, or notes in anticipation2717
thereof, described in division (B)(1)(b) of that section.2718

       (E) For the purpose of paying the costs of acquiring,2719
constructing, equipping, and improving a municipal educational and2720
cultural facility, including debt service charges on bonds2721
provided for in division (B) of section 307.672 of the Revised2722
Code, and for such additional purposes as are determined by the2723
county in the resolution levying the tax or amendments thereto,2724
including subsequent amendments providing for paying costs of2725
acquiring, constructing, renovating, rehabilitating, equipping,2726
and improving a port authority educational and cultural performing2727
arts facility, as defined in section 307.674 of the Revised Code,2728
including debt service charges on bonds provided for in division2729
(B) of section 307.674 of the Revised Code, the legislative2730
authority of a county, by resolution adopted within ninety days2731
after June 30, 1993, by a majority of the members of the2732
legislative authority, may levy an additional excise tax not to2733
exceed one and one-half per cent on transactions by which lodging2734
by a hotel is or is to be furnished to transient guests. The2735
excise tax authorized by this division shall be in addition to any2736
tax that is levied pursuant to divisions (A), (B), (C), and (D) of2737
this section, to any excise tax levied pursuant to division (C) of2738
section 5739.025739.08 of the Revised Code, and to any excise tax2739
levied pursuant to section 351.021 of the Revised Code. The2740
legislative authority of the county shall establish all2741
regulations necessary to provide for the administration and2742
allocation of the tax. The regulations may prescribe the time for2743
payment of the tax, and may provide for the imposition of a2744
penalty or interest, or both, for late payments, provided that the2745
penalty does not exceed ten per cent of the amount of tax due, and2746
the rate at which interest accrues does not exceed the rate per2747
annum prescribed pursuant to section 5703.47 of the Revised Code.2748
All revenues arising from the tax shall be expended in accordance2749
with section 307.672 of the Revised Code and division (E) of this2750
section. The levy of a tax imposed under this division shall not2751
commence prior to the first day of the month next following the2752
execution of the cooperative agreement authorized by section2753
307.672 of the Revised Code by all parties to that agreement. Such2754
tax shall remain in effect at the rate at which it is imposed for2755
the period of time determined by the legislative authority of the2756
county, but not to exceed fifteen years.2757

       (F) The legislative authority of a county that has levied a2758
tax under division (E) of this section may, by resolution adopted2759
within one hundred eighty days after January 4, 2001, by a2760
majority of the members of the legislative authority, amend the2761
resolution levying a tax under division (E) of this section to2762
provide for the use of the proceeds of that tax, to the extent2763
that it is no longer needed for its original purpose as determined2764
by the parties to a cooperative agreement amendment pursuant to2765
division (D) of section 307.672 of the Revised Code, to pay costs2766
of acquiring, constructing, renovating, rehabilitating, equipping,2767
and improving a port authority educational and cultural performing2768
arts facility, including debt service charges on bonds provided2769
for in division (B) of section 307.674 of the Revised Code, and to2770
pay all obligations under any guaranty agreements, reimbursement2771
agreements, or other credit enhancement agreements described in2772
division (C) of section 307.674 of the Revised Code. The2773
resolution may also provide for the extension of the tax at the2774
same rate for the longer of the period of time determined by the2775
legislative authority of the county, but not to exceed an2776
additional twenty-five years, or the period of time required to2777
pay all debt service charges on bonds provided for in division (B)2778
of section 307.672 of the Revised Code and on port authority2779
revenue bonds provided for in division (B) of section 307.674 of2780
the Revised Code. All revenues arising from the amendment and2781
extension of the tax shall be expended in accordance with section2782
307.674 of the Revised Code and divisions (E) and (F) of this2783
section.2784

       (G) For purposes of a tax levied by a county, township, or2785
municipal corporation under this section or division (C) of2786
section 5739.025739.08 of the Revised Code, a board of county2787
commissioners, board of township trustees, or the legislative2788
authority of a municipal corporation may adopt a resolution or2789
ordinance at any time specifying that "hotel," as otherwise2790
defined in section 5739.01 of the Revised Code, includes2791
establishments in which fewer than five rooms are used for the2792
accommodation of guests. The resolution or ordinance may apply to2793
a tax imposed pursuant to this section prior to the adoption of2794
the resolution or ordinance if the resolution or ordinance so2795
states, but the tax shall not apply to transactions by which2796
lodging by such an establishment is provided to transient guests2797
prior to the adoption of the resolution or ordinance.2798

       Sec. 5739.31.  (A)(1) No person shall engage in the business2799
of selling at retail or sell at retail incidental to any other2800
regularly conducted business without having a license therefor, as2801
required by sections 5739.01 to 5739.31 of the Revised Code.2802

       (2) No person shall engage in the business of selling at2803
retail as a transient vendor, as defined in division (B) of2804
section 5739.17 of the Revised Code, without first having obtained2805
a license as required by that section.2806

       (3) No person shall engage in the business of selling at2807
retail as a limited vendor as defined in division (B) of section2808
5739.17 of the Revised Code, without first having a license as2809
required by that section.2810

       (B) No person shall continue to engage in the business of2811
selling at retail or sell at retail incidental to any other2812
regularly conducted business after the license issued to that2813
person pursuant to section 5739.17 of the Revised Code has been2814
revoked under section 5739.19 of the Revised Code or while the2815
license is suspended by the tax commissioner under division (B)(2)2816
of section 5739.30 of the Revised Code, nor shall any person2817
obtain a new license from the county auditor or the tax2818
commissioner while such revocation or suspension is in effect. If2819
a corporation's license has been revoked or suspended, none of its2820
officers, or employees having control or supervision of or charged2821
with the responsibility of filing returns and making payments of2822
tax due, shall obtain a license from the county auditor or the tax2823
commissioner during the period of such revocation or suspension.2824

       Sec. 5739.99.  (A) Whoever violates section 5739.26 or2825
5739.29 of the Revised Code shall be fined not less than2826
twenty-five nor more than one hundred dollars for a first offense;2827
for each subsequent offense such person shall, if a corporation,2828
be fined not less than one hundred nor more than five hundred2829
dollars, or if an individual, or a member of a partnership, firm,2830
or association, be fined not less than twenty-five nor more than2831
one hundred dollars, or imprisoned not more than sixty days, or2832
both.2833

       (B) Whoever violates division (A) of section 5739.30 of the2834
Revised Code shall be fined not less than one hundred nor more2835
than one thousand dollars, or imprisoned not more than sixty days,2836
or both.2837

       (C)(1) Whoever violates division (A)(1) of section 5739.312838
of the Revised Code shall be fined not less than twenty-five nor2839
more than one hundred dollars. If the offender previously has2840
been convicted of a violation of division (A)(1) of section2841
5739.31 of the Revised Code, hethe offender is guilty of a felony2842
of the fourth degree.2843

       (2) Whoever violates division (A)(2) of section 5739.31 of2844
the Revised Code shall be fined not less than one hundred dollars2845
nor more than five hundred dollars, or imprisoned for not more2846
than ten days, or both, for the first offense; for each subsequent2847
offense, each such person shall be fined not less than one2848
thousand dollars nor more than twenty-five hundred dollars, or2849
imprisoned not more than thirty days, or both. The motor vehicles2850
and goods of any person charged with violating division (A)(2) of2851
section 5739.31 of the Revised Code may be impounded and held2852
pending the disposition of the charge, and may be sold at auction2853
by the county sheriff in the manner prescribed by law to satisfy2854
any fine imposed by this division.2855

       (3) Whoever violates division (A)(3) of section 5739.31 of2856
the Revised Code shall be fined not less than twenty-five nor more2857
than one hundred dollars.2858

       (4)(3) Whoever violates division (B) of section 5739.31 of2859
the Revised Code is guilty of a felony of the fourth degree. Each2860
day that business is conducted while a vendor's license is2861
suspended or revoked constitutes a separate offense.2862

       (D) Except as otherwise provided in this section, whoever2863
violates sections 5739.01 to 5739.31 of the Revised Code, or any2864
lawful rule promulgated by the department of taxation under2865
authority of such sections, shall be fined not less than2866
twenty-five nor more than one hundred dollars.2867

       (E) Whoever violates section 5739.12 of the Revised Code by2868
failing to remit to the state the tax collected under section2869
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code is2870
guilty of a felony of the fourth degree and shall suffer the loss2871
of histhe person's vendor's license as required by section2872
5739.17 of the Revised Code. A person shall not be eligible for a2873
vendor's license for two years following conviction.2874

       (F) Whoever violates division (D)(E) of section 5739.17 of2875
the Revised Code is guilty of failure to display a transient or2876
limited vendor's license, a minor misdemeanor. A sheriff or2877
police officer in a municipal corporation may enforce this2878
division. The prosecuting attorney of a county shall inform the2879
tax commissioner of any instance when a complaint is brought2880
against a transient or limited vendor pursuant to this division.2881

       (G) Whoever violates section 5739.103 of the Revised Code2882
shall be fined not less than twenty-five nor more than one hundred2883
dollars. If the offender previously has been convicted of2884
violating that section, hethe offender is guilty of a felony of2885
the fourth degree.2886

       (H) The penalties provided in this section are in addition2887
to any penalties imposed by the tax commissioner under section2888
5739.133 of the Revised Code.2889

       Sec. 5740.01. As used in this chapter:2890

        (A) "Agreement" means the streamlined sales and use tax2891
agreement as amended and adopted on January 27, 2001, by the2892
national conference of state legislatures' special task force on2893
state and local taxation of telecommunications and electronic2894
commerce, and unanimously adopted by the national conference of2895
state legislatures' executive committee, and as subsequently2896
amended and adopted by the member states.2897

        (B) "Certified automated system" means software certified2898
jointly by the member states to calculate the sales or use tax2899
imposed by each jurisdiction on a transaction, determine the2900
amount of tax to remit to the appropriate state, and maintain a2901
record of the transaction.2902

        (C) "Certified service provider" means an agent certified2903
jointly by the member states to perform all of the seller's sales2904
and use tax functions.2905

       (D) "Member state" means any state that is a signatory to the2906
agreement.2907

        (E) "Person" means an individual, trust, estate, fiduciary,2908
partnership, limited liability company, limited liability2909
partnership, corporation, or any other legal entity.2910

        (F) "Sales tax" means the tax levied by section 5739.02,2911
5739.021, 5739.023, 5739.026, or 5739.10 of the Revised Code.2912

        (G) "Seller" means any person making sales, leases, or2913
rentals of personal property or services.2914

        (H) "State" means any state of the United States and the2915
District of Columbia.2916

        (I) "Use tax" means the tax levied by section 5741.02,2917
5741.021, 5741.022, or 5741.023 of the Revised Code. 2918

       Sec. 5740.02. (A) Subject to division (B) of this section,2919
the state of Ohio shall participate in discussions with other2920
states regarding the development of a streamlined sales and use2921
tax system to reduce the burden and cost for all sellers to2922
collect this state's sales and use taxes. The state also shall2923
participate in multi-state discussions to review or amend the2924
terms of the agreement to simplify and modernize sales and use tax2925
administration that embodies the requirements set forth in section2926
5740.05 of the Revised Code. For purposes of these discussions,2927
the state shall be represented by three delegates. The tax2928
commissioner or the commissioner's designee shall be the2929
chairperson of the delegation. The other delegates shall be one2930
delegate chosen by the speaker of the house of representatives and2931
one delegate chosen by the president of the senate. In all2932
matters where voting by the member states is required to amend the2933
agreement, unanimous approval by this state's delegation shall be2934
required for the state, through the chairperson, to cast this2935
state's vote.2936

       (B) The state shall not participate in the discussions2937
referred to in division (A) of this section unless the meetings at2938
which the discussions occur are conducted in accordance with the2939
requirements of divisions (C), (F), (G), and (H) of section 121.222940
of the Revised Code as if the participants of the meeting were a2941
public body as defined in that section or substantially similar2942
requirements. Notwithstanding division (F) of that section,2943
written notice of such meetings shall be provided to the news2944
media that have requested notification at least thirty days before2945
the day of the meeting. Any person may bring an action to enforce2946
this division in the court of common pleas of Franklin county.2947
Upon proof of a violation or threatened violation of this2948
division, the court shall issue a writ of injunction or mandamus2949
to compel compliance with this division.2950

       Sec. 5740.03. Subject to section 5740.05 of the Revised Code,2951
the tax commissioner may enter into the agreement with one or more2952
states, provided that the general assembly first authorizes the2953
tax commissioner to enter into the agreement. In furtherance of2954
the agreement, the commissioner may act jointly with other member2955
states to establish standards for certification of service2956
providers and automated systems, establish performance standards2957
for multi-state sellers, and procure goods and services. The2958
commissioner may take other actions reasonably required to2959
implement this chapter, including adopting rules.2960

       Sec. 5740.04. (A) No provision of the agreement, in whole or2961
in part, invalidates or amends the law of this state. Adoption of2962
the agreement by this state does not amend the law of this state.2963
Implementation in this state of any condition of the agreement,2964
whether adopted before, at, or after membership of this state in2965
the agreement, must be by the action of this state.2966

        (B) The agreement is an accord among individual cooperating2967
sovereigns in furtherance of their governmental functions. The2968
agreement provides a mechanism among the member states to2969
establish and maintain a cooperative, simplified system for the2970
application and administration of sales and use taxes under the2971
duly adopted laws of each member state. 2972

       Sec. 5740.05. The tax commissioner shall not enter into the2973
agreement unless the agreement requires each state to meet the2974
requirements set forth in divisions (A) to (I) of this section.2975
The agreement shall:2976

        (A) Set restrictions to limit over time the number of state2977
sales and use tax rates;2978

        (B) Establish uniform standards for attributing the source2979
of transactions to taxing jurisdictions, the administration of2980
exempt sales, and sales and use tax returns and remittances;2981

        (C) Provide a central, electronic registration system that2982
allows a seller to register to collect sales and use taxes for,2983
and remit them to, all member states;2984

        (D) Provide that registration with the central registration2985
system and the collection of sales and use taxes in the member2986
states will not be used as a factor in determining whether the2987
seller has nexus with a state for any tax;2988

        (E) Provide for reduction of the burdens of complying with2989
local sales and use taxes through the following:2990

        (1) Restricting variances between the state and local tax2991
bases;2992

        (2) Requiring states to administer any sales and use taxes2993
levied by local jurisdictions within the states so that sellers2994
collecting and remitting those taxes will not have to register or2995
file returns with, remit funds to, or be subject to independent2996
audits from, local taxing jurisdictions;2997

        (3) Restricting the frequency of changes in the local sales2998
and use tax rates and setting effective dates for the application2999
of local jurisdictional boundary changes to local sales and use3000
taxes;3001

        (4) Providing notice to sellers and certified service3002
providers of changes in local sales and use tax rates and in the3003
boundaries of local taxing jurisdictions.3004

        (F) Outline any monetary allowances that are to be provided3005
by the member states to sellers or certified service providers.3006
The agreement must allow for a joint public and private sector3007
study of the compliance cost on sellers and certified service3008
providers to collect sales and use taxes for state and local3009
governments under various levels of complexity, to be completed by3010
July 1, 2002.3011

        (G) Require each state to certify compliance with the terms3012
of the agreement prior to becoming a member of the agreement, and3013
to maintain compliance, under the laws of the member state, with3014
all provisions of the agreement while a member;3015

        (H) Require each member state to adopt a uniform policy for3016
certified service providers that protects the privacy of consumers3017
and maintains the confidentiality of tax information;3018

        (I) Provide for the appointment of an advisory council of3019
private sector representatives and an advisory council of3020
non-member state representatives to consult with in the3021
administration of the agreement. 3022

       Sec. 5740.06. (A) The agreement binds and inures only to the3023
benefit of this state and the other member states. No person,3024
other than a member state, is an intended beneficiary of the3025
agreement. Any benefit to a person other than a state is3026
established by the law of this state and the other member states3027
and not by the terms of the agreement.3028

        (B) Consistent with division (A) of this section, no person3029
shall have any cause of action or defense under the agreement or3030
by virtue of this state's approval of the agreement. No person3031
may challenge, in any action brought under any provision of law,3032
any action or inaction by any department, agency, or other3033
instrumentality of this state, or any political subdivision of3034
this state, on the ground that the action or inaction is3035
inconsistent with the agreement.3036

        (C) No law of this state, or the application thereof, may3037
be declared invalid as to any person or circumstance on the ground3038
that the law or application of it is inconsistent with the3039
agreement. 3040

       Sec. 5740.07. (A) A certified service provider is the agent3041
of the seller with whom the certified service provider has3042
contracted for the collection and remittance of sales and use3043
taxes. As the seller's agent, the certified service provider is3044
liable for sales and use taxes due each member state on all sales3045
transactions it processes for the seller, except as provided in3046
this section.3047

        A seller that contracts with a certified service provider is3048
not liable to the state for sales or use taxes due on transactions3049
processed by the certified service provider, unless the seller3050
misrepresented the type of tangible personal property or services3051
it sells, or committed fraud. In the absence of probable cause to3052
believe that the seller made a material misrepresentation or has3053
committed fraud, the seller is not subject to audit of the3054
transactions processed by the certified service provider. A3055
seller is subject to audit for transactions not processed by a3056
certified service provider. The member states acting jointly may3057
perform a system check of the seller and review the seller's3058
procedures to determine if the certified service provider's system3059
is functioning properly and the extent to which the seller's3060
transactions are being processed by the provider.3061

        (B) A person who provides a certified automated system is3062
responsible for the proper functioning of that system and is3063
liable to this state for underpayments of the sales and use tax3064
attributable to errors in the functioning of that system. A3065
seller that uses a certified automated system remains responsible3066
and is liable to this state for reporting and remitting sales and3067
use taxes.3068

        (C) A seller that has a proprietary system for determining3069
the amount of sales or use tax due on transactions and has signed3070
a performance agreement establishing tax performance standards for3071
that system is liable for the failure of the system to meet the3072
performance standards. 3073

       Sec. 5740.08. (A) A certified service provider shall3074
preserve the privacy of consumers who buy, lease, or rent tangible3075
personal property or services from sellers with whom the provider3076
has contracted for the collection and remittance of sales and use3077
taxes to this state. The provider shall protect consumer3078
information in the same manner as required of the department of3079
taxation for taxpayer information. The provider shall use a3080
certified automated system to perform sales and use tax3081
calculations, remittances, and reporting that does not retain the3082
personally identifiable information of consumers, except as3083
follows:3084

        (1) To determine whether a consumer's status or intended3085
use of the goods or services purchased is exempt from the sales or3086
use tax;3087

        (2) To investigate fraud by a consumer or seller;3088

        (3) To the extent necessary to ensure the reliability of3089
the providers' technology and certified automated system in3090
performing all of a seller's sales and use tax functions.3091

        The provider shall provide technical, physical, and3092
administrative safeguards to protect personally identifiable3093
information from unauthorized access and disclosure.3094

        (B) A certified service provider shall provide to consumers3095
clear and conspicuous notice of its information retention and3096
sharing practices, including what information it collects, how the3097
information collected is used, and whether the information is3098
disclosed to other member states. A provider that retains3099
personally identifiable information in accordance with division3100
(A) of this section shall notify consumers of its intent to retain3101
such information and shall afford consumers reasonable access to3102
their data and the opportunity to correct inaccurately recorded3103
data.3104

        (C) If any person, other than a member state, seeks to3105
discover a consumer's personally identifiable information, a3106
reasonable and timely effort shall be made by the provider to3107
notify the consumer of such request.3108

        (D) Notwithstanding this section, the laws of this state3109
regarding the collection, use, and maintenance of confidential3110
taxpayer information remain applicable and binding. The agreement3111
does not enlarge or limit this state's authority to do any of the3112
following:3113

        (1) Conduct audits or other reviews as provided under the3114
agreement or state law;3115

        (2) Provide records pursuant to section 149.43 of the3116
Revised Code or to governmental agencies under disclosure laws;3117

        (3) Prevent the disclosure of confidential taxpayer3118
information in accordance with Title LVII of the Revised Code;3119

        (4) Prevent, consistent with federal law, the disclosure or3120
misuse of federal return information obtained under a disclosure3121
agreement with the Internal Revenue Service;3122

        (5) Collect, disclose, disseminate, or otherwise use3123
anonymous data for governmental purposes.3124

        (E) This section does not enlarge or limit the privacy3125
policies of any seller that has selected a certified service3126
provider as its agent to perform all of the seller's sales and use3127
tax functions.3128

        (F) A certified service provider that fails to comply with3129
this section is subject to investigation by the tax commissioner3130
or the commissioner's agents and the attorney general, and to3131
prosecution by the attorney general. 3132

       Sec. 5747.083. The tax commissioner may not require the3133
taxpayer, as a part of the taxpayer's personal income tax return,3134
to report or pay use tax for any purchase made during the tax year3135
on which the taxpayer has paid any sales tax to this state or any3136
other state at the time of the purchase.3137

       Section 2. That existing sections 307.671, 307.672, 307.674,3138
307.695, 311.37, 311.99, 351.01, 351.021, 351.03, 351.141, 505.56,3139
3715.52, 4501.32, 5739.01, 5739.02, 5739.024, 5739.033, 5739.31,3140
and 5739.99 of the Revised Code are hereby repealed.3141

       Section 3. That Section 6 of Sub. H.B. 483 of the 123rd3142
General Assembly is hereby repealed.3143

       Section 4. Section 5739.02 of the Revised Code is presented3144
in this act as a composite of the section as amended by both Am.3145
Sub. H.B. 94 and Sub. H.B. 117 of the 124th General Assembly. The3146
General Assembly, applying the principle stated in division (B) of3147
section 1.52 of the Revised Code that amendments are to be3148
harmonized if reasonably capable of simultaneous operation, finds3149
that the composite is the resulting version of the section in3150
effect prior to the effective date of the section as presented in3151
this act.3152