As Reported by the Senate Ways and Means Committee

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


SENATORS Blessing, Amstutz, DiDonato, Mead, Spada



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
5739.021, 5739.023, 5739.024, 5739.026, 5739.03,4
5739.031, 5739.033, 5739.12, 5739.31, 5739.99,5
5741.01, 5741.02, and 5741.12; to amend, for the6
purpose of adopting a new section number as7
indicated in parentheses, section 5739.0248
(5739.09); to enact sections 306.73, 5703.65,9
5739.034, 5739.04, 5739.06, 5739.08, 5740.01 to10
5740.08, 5741.05, and 5741.08 of the Revised Code;11
and to repeal Section 6 of Sub. H.B. 483 of the12
123rd General Assembly to enact the Simplified13
Sales and Use Tax Administration Act and make14
changes to the sales and use tax laws to conform15
with the Act.16


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

       Section 1. That sections 307.671, 307.672, 307.674, 307.695,17
311.37, 311.99, 351.01, 351.021, 351.03, 351.141, 505.56, 3715.52,18
4501.32, 5739.01, 5739.02, 5739.021, 5739.023, 5739.024, 5739.026,19
5739.03, 5739.031, 5739.033, 5739.12, 5739.31, 5739.99, 5741.01,20
5741.02, and 5741.12 be amended, section 5739.024 (5739.09) be21
amended for the purpose of adopting a new section number as22
indicated in parentheses, and sections 306.73, 5703.65, 5739.034,23
5739.04, 5739.06, 5739.08, 5740.01, 5740.02, 5740.03, 5740.04,24
5740.05, 5740.06, 5740.07, 5740.08, 5741.05, and 5741.08 of the25
Revised Code be enacted to read as follows:26

       Sec. 306.73. The county transit board or a board of county27
commissioners operating a transit system, or the board of trustees28
of a regional transit authority, shall notify the tax commissioner29
immediately of any changes in the transit system's territorial30
boundaries if the board levies a tax under sections 5739.023 and31
5741.022 of the Revised Code.32

       Sec. 307.671.  (A) As used in this section:33

       (1) "Bonds" means, as the context requires: general34
obligation bonds of the county, or notes in anticipation thereof,35
described in division (B)(1)(b) of this section; revenue bonds of36
the port authority described in division (B)(2)(a) of this37
section; and urban renewal bonds, or notes in anticipation38
thereof, of the host municipal corporation described in division39
(B)(3)(a) of this section.40

       (2) "Corporation" means a nonprofit corporation that is41
organized under the laws of this state and that includes within42
the purposes for which it is incorporated the authorization to43
lease and operate facilities such as a port authority educational44
and cultural facility.45

       (3) "Debt service charges" means, for any period or payable46
at any time, the principal of and interest and any premium due on47
bonds for that period or payable at that time whether due at48
maturity or upon mandatory redemption, together with any required49
deposits to reserves for the payment of principal of and interest50
on such bonds, and includes any payments required by the port51
authority to satisfy any of its obligations arising from any52
guaranty agreements, reimbursement agreements, or other credit53
enhancement agreements described in division (C) of this section.54

       (4) "Host municipal corporation" means the municipal55
corporation within the boundaries of which the port authority56
educational and cultural facility is located.57

       (5) "Port authority" means a port authority created pursuant58
to the authority of section 4582.02 of the Revised Code by a59
county and a host municipal corporation.60

       (6) "Port authority educational and cultural facility" means61
a facility located within an urban renewal area that may consist62
of a museum, archives, library, hall of fame, center for63
contemporary music, or other facilities necessary to provide64
programs of an educational and cultural nature, together with all65
parking facilities, walkways, and other auxiliary facilities, real66
and personal property, property rights, easements, and interests67
that may be appropriate for, or used in connection with, the68
operation of the facility.69

       (7) "Urban renewal area" means an area of a host municipal70
corporation that the legislative authority of the host municipal71
corporation has designated as appropriate for an urban renewal72
project pursuant to Chapter 725. of the Revised Code.73

       (B) The board of county commissioners of a county, a port74
authority, and a host municipal corporation may enter into a75
cooperative agreement with a corporation, under which:76

       (1) The board of county commissioners agrees to do all of77
the following:78

       (a) Levy a tax under division (D) of section 5739.02479
5739.09 of the Revised Code exclusively for the purposes described80
in divisions (B)(1)(c) and (d) of this section;81

       (b) Issue general obligation bonds of the county, or notes82
in anticipation thereof, pursuant to Chapter 133. of the Revised83
Code, for the purpose of acquiring, constructing, and equipping84
the port authority educational and cultural facility and85
contribute the proceeds from the issuance to the port authority86
for such purpose. The cooperative agreement may provide that such87
proceeds be deposited with and administered by the trustee88
pursuant to the trust agreement provided for in division (C) of89
this section.90

       (c) Following the issuance, sale, and delivery of the port91
authority revenue bonds provided for in division (B)(2)(a) of this92
section, and prior to the date certain stated in the cooperative93
agreement which shall be the date estimated for the completion of94
construction of the port authority educational and cultural95
facility, pledge and contribute to the port authority revenue from96
the tax levied pursuant to division (B)(1)(a) of this section,97
together with any investment earnings on that revenue, to pay a98
portion of the costs of acquiring, constructing, and equipping the99
port authority educational and cultural facility;100

       (d) Following such date certain, pledge and contribute to101
the corporation all or such portion as provided for in the102
cooperative agreement of the revenue from the tax, together with103
any investment earnings on that revenue, to pay a portion of the104
costs of the corporation of leasing the port authority educational105
and cultural facility from the port authority.106

       (2) The port authority agrees to do all of the following:107

       (a) Issue revenue bonds of the port authority pursuant to108
Chapter 4582. of the Revised Code for the purpose of acquiring,109
constructing, and equipping the port authority educational and110
cultural facility;111

       (b) Construct the port authority educational and cultural112
facility;113

       (c) Lease the port authority educational and cultural114
facility to the corporation;115

       (d) To the extent provided for in the cooperative agreement116
or the lease to the corporation, authorize the corporation to117
administer on behalf of the port authority the contracts for118
acquiring, constructing, or equipping a port authority educational119
and cultural facility;120

       (e) Use the revenue derived from the lease of the port121
authority educational and cultural facility to the corporation122
solely to pay debt service charges on the revenue bonds of the123
port authority described in division (B)(2)(a) of this section.124

       (3) The host municipal corporation agrees to do both of the125
following:126

       (a) Issue urban renewal bonds of the host municipal127
corporation, or notes in anticipation thereof, pursuant to Chapter128
725. of the Revised Code for the purpose of acquiring and129
constructing the port authority educational and cultural facility130
and contribute the proceeds from the issuance to the port131
authority for such purpose. The cooperative agreement may provide132
that such proceeds be deposited with and administered by the133
trustee pursuant to the trust agreement provided for in division134
(C) of this section.135

       (b) To the extent provided for in the cooperative agreement,136
contribute to the county, for use by the county to pay debt137
service charges on the bonds of the county, or notes in138
anticipation thereof, described in division (B)(1)(b) of this139
section, any excess urban renewal service payments pledged by the140
host municipal corporation to the urban renewal bonds described in141
division (B)(3)(a) of this section and not required on an annual142
basis to pay debt service charges on the urban renewal bonds.143

       (4) The corporation agrees to do all of the following:144

       (a) Lease the port authority educational and cultural145
facility from the port authority;146

       (b) Operate and maintain the port authority educational and147
cultural facility pursuant to the lease;148

       (c) To the extent provided for in the cooperative agreement149
or the lease from the port authority, administer on behalf of the150
port authority the contracts for acquiring, constructing, or151
equipping a port authority educational and cultural facility.152

       (C) The pledges and contributions described in divisions153
(B)(1)(c) and (d) of this section and provided for in the154
cooperative agreement shall be for the period stated in the155
cooperative agreement, but shall not be in excess of the period156
necessary to provide for the final retirement of the port157
authority revenue bonds provided for in division (B)(2)(a) of this158
section and any bonds issued by the port authority to refund such159
bonds, and for the satisfaction by the port authority of any of160
its obligations arising from any guaranty agreements,161
reimbursement agreements, or other credit enhancement agreements162
relating to such bonds or to the revenues pledged to such bonds.163
The cooperative agreement shall provide for the termination of the164
cooperative agreement including the pledges and contributions165
described in divisions (B)(1)(c) and (d) of this section if the166
port authority revenue bonds provided for in division (B)(2)(a) of167
this section have not been issued, sold, and delivered within two168
years of the effective date of the cooperative agreement.169

       The cooperative agreement shall provide that any revenue170
bonds of the port authority shall be secured by a trust agreement171
between the port authority and a corporate trustee that is a trust172
company or bank having the powers of a trust company within or173
outside the state. The county may be a party to such trust174
agreement for the purpose of securing the pledge by the county of175
its contribution to the corporation pursuant to division (B)(1)(d)176
of this section. A tax levied pursuant to division (B)(1)(a) of177
this section is not subject to diminution by initiative or178
referendum or diminution by statute, unless provision is made179
therein for an adequate substitute therefor reasonably180
satisfactory to the trustee under the trust agreement that secures181
the revenue bonds of the port authority.182

       (D) A pledge of money by a county under this section shall183
not be net indebtedness of the county for purposes of section184
133.07 of the Revised Code.185

       (E) If the terms of the cooperative agreement so provide,186
any contract for the acquisition, construction, or equipping of a187
port authority educational and cultural facility shall be made in188
such manner as is determined by the board of directors of the port189
authority, and unless the cooperative agreement provides190
otherwise, such a contract is not subject to division (A) of191
section 4582.12 of the Revised Code. The port authority may take192
the assignment of and assume any contracts for the acquisition,193
construction, and equipping of a port authority educational and194
cultural facility that previously have been authorized by either195
or both the host municipal corporation or the corporation. Such196
contracts likewise are not subject to division (A) of section197
4582.12 of the Revised Code.198

       Any contract for the acquisition, construction, or equipping199
of a port authority educational and cultural facility entered200
into, assigned, or assumed pursuant to this division shall provide201
that all laborers and mechanics employed for the acquisition,202
construction, or equipping of the port authority educational and203
cultural facility shall be paid at the prevailing rates of wages204
of laborers and mechanics for the class of work called for by the205
port authority educational and cultural facility, which wages206
shall be determined in accordance with the requirements of Chapter207
4115. of the Revised Code for the determination of prevailing wage208
rates.209

       Sec. 307.672.  (A) As used in this section:210

       (1) "Bonds" means general obligation bonds, or notes in211
anticipation thereof, of the county described in division212
(B)(1)(b) of this section, and general obligation bonds, or notes213
in anticipation thereof, of the host municipal corporation214
described in division (B)(2)(a) of this section.215

       (2) "Corporation" means a nonprofit corporation that is216
organized under the laws of this state and that includes within217
the purposes for which it is incorporated the authorization to218
lease and operate facilities such as a municipal educational and219
cultural facility.220

       (3) "Debt service charges" means, for any period or payable221
at any time, the principal of and interest and any premium due on222
bonds for that period or payable at that time whether due at223
maturity or upon mandatory redemption, together with any required224
deposits to reserves for the payment of principal of and interest225
on such bonds.226

       (4) "Host municipal corporation" means the municipal227
corporation within the boundaries of which a municipal educational228
and cultural facility is or will be located.229

       (5) "Municipal educational and cultural facility" means a230
facility that may consist of a museum, archives, library, hall of231
fame, center for contemporary music, or other facilities necessary232
to provide programs of an educational, recreational, and cultural233
nature, together with all parking facilities, walkways, and other234
auxiliary facilities, real and personal property, property rights,235
easements, and interests that may be appropriate for, or used in236
connection with, the operation of the facility.237

       (B) The legislative authorities of a county and a host238
municipal corporation may enter into a cooperative agreement with239
a corporation, under which:240

       (1) The legislative authority of the county agrees to:241

       (a) Levy a tax under division (E) of section 5739.024242
5739.09 of the Revised Code for a period not to exceed fifteen243
years to pay the costs of acquiring, constructing, equipping, and244
improving a municipal educational and cultural facility, including245
the debt service charges on bonds;246

       (b) Issue bonds of the county pursuant to Chapter 133. of247
the Revised Code for the purpose of acquiring, constructing,248
equipping, and improving a municipal educational and cultural249
facility;250

       (c) Contribute revenue from the tax and the proceeds from251
the bonds described in divisions (B)(1)(a) and (b) of this section252
to the host municipal corporation for the purpose of acquiring,253
constructing, equipping, and improving a municipal educational and254
cultural facility;255

       (2) The host municipal corporation agrees to:256

       (a) Issue bonds of the host municipal corporation pursuant257
to Chapter 133. of the Revised Code for the purpose of acquiring,258
constructing, equipping, and improving a municipal educational and259
cultural facility;260

       (b) Acquire, construct, equip, and improve a municipal261
educational and cultural facility;262

       (c) Accept from the county pursuant to the cooperative263
agreement the revenues of the tax and the proceeds of the bonds264
described in divisions (B)(1)(a) and (b) of this section;265

       (d) Lease a municipal educational and cultural facility to266
the corporation, or contract with the corporation for the267
operation and maintenance of the facility;268

       (e) To the extent provided for in the cooperative agreement269
or the lease or contract with the corporation, authorize the270
corporation to administer on behalf of the host municipal271
corporation the contracts for acquiring, constructing, equipping,272
and improving a municipal educational and cultural facility.273

       (3) The corporation agrees to:274

       (a) Either lease the municipal educational and cultural275
facility from the host municipal corporation and operate and276
maintain the facility pursuant to the lease, or enter into a277
contract with the host municipal corporation pursuant to which the278
corporation shall operate and maintain the facility on behalf of279
the host municipal corporation;280

       (b) To the extent provided for in the cooperative agreement281
or the lease or contract with the host municipal corporation,282
administer on behalf of the host municipal corporation the283
contracts for acquiring, constructing, equipping, or improving a284
municipal educational and cultural facility.285

       (C) A tax levied pursuant to division (E) of section286
5739.0245739.09 of the Revised Code, the revenue from which is to287
be used to pay debt service charges on bonds described in division288
(B)(1) or (2) of this section is not subject to diminution by289
initiative or referendum or diminution by statute, unless290
provision is made therein for an adequate substitute therefor291
reasonably satisfactory to the legislative authorities of the host292
municipal corporation and the county.293

       (D) The legislative authorities of a county and a host294
municipal corporation that have entered into a cooperative295
agreement with a corporation pursuant to division (B) of this296
section may amend that cooperative agreement, with the297
participation of the corporation and a port authority as defined298
in section 307.674 of the Revised Code, to provide also for a port299
authority educational and cultural performing arts facility in300
accordance with section 307.674 of the Revised Code. Such an301
amendment shall become effective only to the extent that the tax302
levied under division (E) of section 5739.0245739.09 of the303
Revised Code is not needed for the duration of the original tax to304
pay costs of the municipal educational and cultural facility,305
including debt service charges on related bonds, as determined by306
the parties to the amendment. The tax may be pledged and paid by307
the parties to the amendment for the balance of the duration of308
the tax to a port authority educational and cultural performing309
arts facility.310

       Sec. 307.674.  (A) As used in this section:311

       (1) "Bonds" means:312

       (a) Revenue bonds of the port authority described in313
division (B)(2)(a) of this section;314

       (b) Securities as defined in division (KK) of section 133.01315
of the Revised Code issued by the host municipal corporation,316
described in division (B)(3)(a) of this section;317

       (c) Any bonds issued to refund any of those revenue bonds or318
securities.319

       (2) "Corporation" means a nonprofit corporation that is320
organized under the laws of this state and that includes within321
the purposes for which it is incorporated the authorization to322
lease and operate facilities such as a port authority educational323
and cultural performing arts facility.324

       (3) "Cost," as applied to a port authority educational and325
cultural performing arts facility, means the cost of acquiring,326
constructing, renovating, rehabilitating, equipping, or improving327
the facility, or any combination of those purposes, collectively328
referred to in this section as "construction," and the cost of329
acquisition of all land, rights of way, property rights,330
easements, franchise rights, and interests required for those331
purposes, the cost of demolishing or removing any buildings or332
structures on land so acquired, including the cost of acquiring333
any land to which those buildings or structures may be moved, the334
cost of public utility and common carrier relocation or335
duplication, the cost of all machinery, furnishings, and336
equipment, financing charges, interest prior to and during337
construction and for not more than three years after completion of338
construction, costs arising under guaranty agreements,339
reimbursement agreements, or other credit enhancement agreements340
relating to bonds, engineering, expenses of research and341
development with respect to such facility, legal expenses, plans,342
specifications, surveys, studies, estimates of costs and revenues,343
other expenses necessary or incident to determining the344
feasibility or practicability of acquiring or constructing the345
facility, administrative expense, and other expenses as may be346
necessary or incident to that acquisition or construction and the347
financing of such acquisition or construction, including, with348
respect to the revenue bonds of a port authority, amounts to be349
paid into any special funds from the proceeds of those bonds, and350
repayments to the port authority, host county, host municipal351
corporation, or corporation of any amounts advanced for the352
foregoing purposes.353

       (4) "Debt service charges" means, for any period or payable354
at any time, the principal of and interest and any premium due on355
bonds for that period or payable at that time whether due at356
maturity or upon mandatory redemption, together with any required357
deposits to reserves for the payment of principal of and interest358
on those bonds, and includes any payments required by the port359
authority to satisfy any of its obligations under or arising from360
any guaranty agreements, reimbursement agreements, or other credit361
enhancement agreements described in division (C) of this section.362

       (5) "Host county" means the county within the boundaries of363
which the port authority educational and cultural performing arts364
facility is or will be located.365

       (6) "Host municipal corporation" means the municipal366
corporation within the boundaries of which the port authority367
educational and cultural performing arts facility is or will be368
located.369

       (7) "Port authority" means a port authority created pursuant370
to section 4582.22 of the Revised Code.371

       (8) "Port authority educational and cultural performing arts372
facility" means a facility that consists of a center for music or373
other performing arts, a theater or other facilities to provide374
programs of an educational, recreational, or cultural nature, or375
any combination of those purposes as determined by the parties to376
the cooperative agreement for which provision is made in division377
(B) of this section to fulfill the public educational,378
recreational, and cultural purposes set forth therein, together379
with all parking facilities, walkways, and other auxiliary380
facilities, real and personal property, property rights,381
easements, and interests that may be appropriate for, or used in382
connection with, the operation of the facility.383

       (B) A host county, a host municipal corporation, and a port384
authority may enter into a cooperative agreement with a385
corporation under which, as further provided for in that386
agreement:387

       (1) The host county may agree to do any or all of the388
following:389

       (a) Levy and collect a tax under division (E) and division390
(F) of section 5739.0245739.09 of the Revised Code for the391
purposes, and in an amount sufficient for those purposes,392
described in divisions (B)(1)(b) and (c) of this section;393

       (b) Pay to the port authority all or such portion as394
provided for in the cooperative agreement of the revenue from the395
tax, together with any investment earnings on that revenue, to be396
used to pay a portion of the costs of acquiring, constructing,397
renovating, rehabilitating, equipping, or improving the port398
authority educational and cultural performing arts facility;399

       (c) Pledge and pay to the corporation all or such portion as400
provided for in the cooperative agreement of the revenue from the401
tax, together with any investment earnings on that revenue, to be402
used to pay a portion of the costs to the corporation of leasing403
the port authority educational and cultural performing arts404
facility from the port authority.405

       (2) The port authority may agree to do any or all of the406
following:407

       (a) Issue its revenue bonds pursuant to section 4582.48 of408
the Revised Code for the purpose of paying all or a portion of the409
costs of the port authority educational and cultural performing410
arts facility;411

       (b) Acquire, construct, renovate, rehabilitate, equip, and412
improve the port authority educational and cultural performing413
arts facility;414

       (c) Lease the port authority educational and cultural415
performing arts facility to the corporation;416

       (d) To the extent provided for in the cooperative agreement417
or the lease to the corporation, authorize the corporation to418
administer on behalf of the port authority the contracts for419
acquiring, constructing, renovating, rehabilitating, or equipping420
the port authority educational and cultural performing arts421
facility;422

       (e) Use the revenue derived from the lease of the port423
authority educational and cultural performing arts facility to the424
corporation solely to pay debt service charges on revenue bonds of425
the port authority issued pursuant to division (B)(2)(a) of this426
section and to pay its obligations under or arising from any427
guaranty agreements, reimbursement agreements, or other credit428
enhancement agreements provided for in this section.429

       (3) The host municipal corporation may agree to do either or430
both of the following:431

       (a) Issue its bonds for the purpose of paying all or a432
portion of the costs of the port authority educational and433
cultural performing arts facility, and pay the proceeds from the434
issuance to the port authority for that purpose;435

       (b) Enter into a guaranty agreement, a reimbursement436
agreement, or other credit enhancement agreement with the port437
authority to provide a guaranty or other credit enhancement of the438
port authority revenue bonds referred to in division (B)(2)(a) of439
this section pledging taxes, other than ad valorem property taxes,440
or other revenues for the purpose of providing the funds required441
to satisfy the host municipal corporation's obligations under that442
agreement.443

       The cooperative agreement may provide that the proceeds of444
such securities or of such guaranty agreement, reimbursement445
agreement, or other credit enhancement agreement be deposited with446
and administered by the trustee pursuant to the trust agreement447
authorized in division (C) of this section.448

       (4) The corporation may agree to do any or all of the449
following:450

       (a) Lease the port authority educational and cultural451
performing arts facility from the port authority;452

       (b) Operate and maintain the port authority educational and453
cultural performing arts facility pursuant to the lease;454

       (c) To the extent provided for in the cooperative agreement455
or the lease from the port authority, administer on behalf of the456
port authority the contracts for acquiring, constructing,457
renovating, rehabilitating, or equipping the port authority458
educational and cultural performing arts facility.459

       (C) The pledge and payments referred to in divisions460
(B)(1)(b) and (c) of this section and provided for in the461
cooperative agreement shall be for the period stated in the462
cooperative agreement but shall not extend longer than the period463
necessary to provide for the final retirement of the port464
authority revenue bonds referred to in division (B)(2)(a) of this465
section, and for the satisfaction by the port authority of any of466
its obligations under or arising from any guaranty agreements,467
reimbursement agreements, or other credit enhancement agreements468
relating to those bonds or to the revenues pledged to them. The469
cooperative agreement shall provide for the termination of the470
cooperative agreement, including the pledge and payment referred471
to in division (B)(1)(c) of this section, if the port authority472
revenue bonds referred to in division (B)(2)(a) of this section473
have not been issued, sold, and delivered within five years of the474
effective date of the cooperative agreement.475

       The cooperative agreement shall provide that any port476
authority revenue bonds shall be secured by a trust agreement477
between the port authority and a corporate trustee that is a trust478
company or bank having the powers of a trust company within or479
outside the state but authorized to exercise trust powers within480
the state. The host county may be a party to that trust agreement481
for the purpose of better securing the pledge by the host county482
of its payment to the corporation pursuant to division (B)(1)(c)483
of this section. A tax levied pursuant to section 5739.024484
5739.09 of the Revised Code for the purposes specified in division485
(B)(1)(b) or (c) of this section is not subject to diminution by486
initiative or referendum or diminution by statute, unless487
provision is made for an adequate substitute reasonably488
satisfactory to the trustee under the trust agreement that secures489
the port authority revenue bonds.490

       (D) A pledge of money by a host county under this section491
shall not be net indebtedness of the host county for purposes of492
section 133.07 of the Revised Code. A guaranty or other credit493
enhancement by a host municipal corporation under this section494
shall not be net indebtedness of the host municipal corporation495
for purposes of section 133.05 of the Revised Code.496

       (E) If the terms of the cooperative agreement so provide,497
any contract for the acquisition, construction, renovation,498
rehabilitation, equipping, or improving of a port authority499
educational and cultural performing arts facility shall be made in500
such manner as is determined by the board of directors of the port501
authority, and unless the cooperative agreement provides502
otherwise, such a contract is not subject to division (R)(2) of503
section 4582.31 of the Revised Code. The port authority may take504
the assignment of and assume any contracts for the acquisition,505
construction, renovation, rehabilitation, equipping, or improving506
of a port authority educational and cultural performing arts507
facility that had previously been authorized by any of the host508
county, the host municipality, or the corporation. Such contracts509
are not subject to division (R)(2) of section 4582.31 of the510
Revised Code.511

       Any contract for the acquisition, construction, renovation,512
rehabilitation, equipping, or improving of a port authority513
educational and cultural performing arts facility entered into,514
assigned, or assumed pursuant to this division shall provide that515
all laborers and mechanics employed for the acquisition,516
construction, renovation, rehabilitation, equipping, or improving517
of that facility shall be paid at the prevailing rates of wages of518
laborers and mechanics for the class of work called for by the519
port authority educational and cultural performing arts facility,520
which wages shall be determined in accordance with the521
requirements of Chapter 4115. of the Revised Code for the522
determination of prevailing wage rates.523

       Notwithstanding any provisions to the contrary in section524
3383.07 of the Revised Code, construction services and general525
building services for a port authority educational and cultural526
performing arts facility funded completely or in part with money527
appropriated by the state to the Ohio arts and sports facilities528
commission may be provided by a port authority or a corporation529
that occupies, will occupy, or is responsible for that facility,530
as determined by the commission. The construction services and531
general building services to be provided by the port authority or532
the corporation shall be specified in an agreement between the533
commission and the port authority or corporation. That agreement,534
or any actions taken under it, are not subject to Chapters 123. or535
153. of the Revised Code, but are subject to Chapter 4115. of the536
Revised Code.537

       Sec. 307.695.  (A) As used in this section, "convention538
center" means any structure expressly designed and constructed for539
the purposes of presenting conventions, public meetings, and540
exhibitions and includes parking facilities that serve the center541
and any personal property used in connection with any such542
structure or facilities.543

       (B) A board of county commissioners may enter into an544
agreement with a convention and visitors' bureau operating in the545
county under which:546

       (1) The bureau agrees to construct and equip a convention547
center in the county and to pledge and contribute from the tax548
revenues received by it under division (A) of section 5739.024549
5739.09 of the Revised Code, not more than such portion thereof550
that it is authorized to pledge and contribute for the purpose551
described in division (C) of this section; and552

       (2) The board agrees to levy a tax under division (C) of553
section 5739.0245739.09 of the Revised Code and pledge and554
contribute the revenues therefrom for the purpose described in555
division (C) of this section.556

       (C) The purpose of the pledges and contributions described557
in divisions (B)(1) and (2) of this section is payment of558
principal, interest, and premium, if any, on bonds and notes559
issued by or for the benefit of the bureau to finance the560
construction and equipping of a convention center. The pledges561
and contributions provided for in the agreement shall be for the562
period stated in the agreement, but not to exceed thirty years.563
Revenues determined from time to time by the board to be needed to564
cover the real and actual costs of administering the tax imposed565
by division (C) of section 5739.0245739.09 of the Revised Code566
may not be pledged or contributed. The agreement shall provide567
that any such bonds and notes shall be secured by a trust568
agreement between the bureau or other issuer acting for the569
benefit of the bureau and a corporate trustee that is a trust570
company or bank having the powers of a trust company within or571
without the state, and the trust agreement shall pledge or assign572
to the retirement of the bonds or notes, all moneys paid by the573
county under this section. A tax the revenues from which are574
pledged under an agreement entered into by a board of county575
commissioners under this section shall not be subject to576
diminution by initiative or referendum, or diminution by statute,577
unless provision is made therein for an adequate substitute578
therefor reasonably satisfactory to the trustee under the trust579
agreement that secures the bonds and notes.580

       (D) A pledge of money by a county under this section shall581
not be indebtedness of the county for purposes of Chapter 133. of582
the Revised Code.583

       (E) If the terms of the agreement so provide, the board of584
county commissioners may acquire and lease real property to the585
convention bureau as the site of the convention center. The lease586
shall be for a term not to exceed thirty years and shall be on587
such terms as are set forth in the agreement. The purchase and588
lease are not subject to the limitations of sections 307.02 and589
307.09 of the Revised Code.590

       Sec. 311.37.  (A) No transient vendor, as defined in section591
5739.17 of the Revised Code, who obtains a transient vendor's592
license pursuant to section 5739.17 of the Revised Code, intending593
to provide goods and services of a retail value of more than five594
hundred dollars, shall negligently fail to file with the county595
sheriff all of the following before doing business as a transient596
vendor anywhere in that county:597

       (1) Proof of the transient vendor's identity and proof that598
a transient vendor's license has been obtained in this state;599

       (2) A statement describing the goods or services to be600
provided by the transient vendor and an estimate of the amount of601
the goods or services that the vendor expects to sell in that602
county, as documented by invoices indicating the wholesale value603
of goods to be sold;604

       (3) The transient vendor's permanent business address;605

       (4) The times and days during which, and the temporary606
places of business, as defined in section 5739.17 of the Revised607
Code, at which the transient vendor plans to do business in that608
county.609

       (B) The sheriff shall maintain a record of the information610
required under division (A) of this section for a period of two611
years, which shall be open to the inspection of any person. The612
sheriff shall be allowed a fee of up to one hundred dollars for613
collection of the bond required by this section. The bond shall614
be fifty per cent of the wholesale value of the goods and services615
provided, but in no case shall the bond exceed ten thousand616
dollars. The bond shall be in a form approved by the attorney617
general. The bond shall remain in effect for two years after the618
transient vendor last does business in that county.619

       (C) No transient vendor, as defined in section 5739.17 of620
the Revised Code, intending to provide goods and services of a621
retail value of more than five hundred dollars, shall negligently622
fail to file a bond within ten days before doing business as a623
transient vendor anywhere in that county.624

       (D) The bond filed by any transient vendor pursuant to this625
section shall be given to the attorney general by the county626
sheriff within ten working days after a transient vendor ceases to627
do business in that county, and shall be in favor of the state for628
the benefit of any person who suffers loss or damage as a result629
of the purchase of goods from the transient vendor or as the630
result of the negligent or intentionally tortious acts of the631
transient vendor in the conduct of business in the county. The632
bond may be used to compensate any state or local agency for633
damages caused by the transient vendor, for costs incurred by the634
agency for the illegal acts of the transient vendor, or for635
failure to pay any amount owed by the transient vendor to the636
state or local agency. The bond also may be used to compensate637
the state for any sales tax not paid by the transient vendor.638
Except for the amount of unpaid sales taxes to be deducted from639
the bond, if any, the attorney general shall pay any portion of640
the bond to any person or agency in accordance with the order of a641
court without making an independent finding as to the amount of642
the bond that is payable to that person or agency.643

       (E) This section does not apply to any of the following:644

       (1) A limited vendor, as defined in section 5739.17 of the645
Revised Code, or a transient vendor making retail sales at a646
temporary exhibition, show, fair, world trade center, flea market,647
or similar event, as permitted by section 5739.17 of the Revised648
Code;649

       (2) Any nonprofit corporation, community chest, fund, or650
foundation organized and operated exclusively for religious,651
charitable, scientific, literary, or educational purposes when no652
part of the entity's earnings benefit any private shareholder or653
individual;654

       (3) Any person who operates a permanent business in this655
state, occupies temporary premises, and prominently displays the656
permanent business' name and permanent address while business is657
conducted from the temporary premises.658

       (4) Any person who sells goods by sample, brochure, or659
catalog for future delivery or any person who makes sales as the660
result of the invitation of an owner or occupant of a residence to661
the person.662

       (5) Any person who sells handmade or handcrafted items, or663
who sells fresh farm produce.664

       Nothing in this section shall prohibit the legislative665
authority of a municipal corporation from adopting an ordinance666
regulating transient vendors, as defined in section 5739.17 of the667
Revised Code, except that a municipal corporation may not require668
a transient vendor who obtains a bond in compliance with this669
section to obtain or pay for any additional bond or require that670
persons exempt pursuant to division (E) of this section obtain a671
bond. A municipal corporation may require that a transient vendor672
exhibit histhe transient vendor's license and any proof of bond673
required to such officer or employee of the municipal corporation674
as the municipal corporation designates by ordinance.675

       Sec. 311.99.  (A) Whoever violates section 311.13 of the676
Revised Code shall be fined not more than one thousand dollars and677
imprisoned in the county jail not less than thirty days or more678
than two years.679

       (B) Whoever violates division (A) or (C) of section 311.37680
of the Revised Code is guilty of failure to file a transient681
vendor's information or bond, a minor misdemeanor. If the682
offender previously has been convicted of a violation of division683
(A) of section 311.37 of the Revised Code, failure to file a684
transient vendor's information or bond is a misdemeanor of the685
second degree. If the offender previously has been convicted of686
two or more violations of division (A) of section 311.37 of the687
Revised Code, failure to file a transient vendor's information or688
bond is a misdemeanor of the first degree. A sheriff or police689
officer in a municipal corporation may enforce this division. The690
prosecuting attorney of a county shall inform the tax commissioner691
of any instance when a complaint is brought against a transient or692
limited vendor pursuant to this division.693

       Sec. 351.01.  As used in this chapter:694

       (A) "Convention facilities authority" means a body corporate695
and politic created pursuant to section 351.02 of the Revised696
Code.697

       (B) "Governmental agency" means a department, division, or698
other unit of the state government or of a municipal corporation,699
county, township, or other political subdivision of the state; any700
state university or college, as defined in section 3345.12 of the701
Revised Code, community college, state community college,702
university branch, or technical college; any other public703
corporation or agency having the power to acquire, construct, or704
operate facilities; the United States or any agency thereof; and705
any agency, commission, or authority established pursuant to an706
interstate compact or agreement.707

       (C) "Person" means any individual, firm, partnership,708
association, or corporation, or any combination of them.709

       (D) "Facility" or "facilities" means any convention,710
entertainment, or sports facility, or combination of them, located711
within the territory of the convention facilities authority,712
together with all parking facilities, walkways, and other713
auxiliary facilities, real and personal property, property rights,714
easements and interests that may be appropriate for, or used in715
connection with, the operation of the facility.716

       (E) "Cost" means the cost of acquisition of all land,717
rights-of-way, property rights, easements, franchise rights, and718
interests required for such acquisition; the cost of demolishing719
or removing any buildings or structures on land so acquired,720
including the cost of acquiring any lands to which such buildings721
or structures may be moved; the cost of acquiring or constructing722
and equipping a principal office of the convention facilities723
authority; the cost of diverting highways, interchange of724
highways, access roads to private property, including the cost of725
land or easements for such access roads; the cost of public726
utility and common carrier relocation or duplication; the cost of727
all machinery, furnishings, and equipment; financing charges;728
interest prior to and during construction and for no more than729
eighteen months after completion of construction; expenses of730
research and development with respect to facilities; legal731
expenses; expenses of obtaining plans, specifications, engineering732
surveys, studies, and estimates of cost and revenues; working733
capital; expenses necessary or incident to determining the734
feasibility or practicability of acquiring or constructing such735
facility; administrative expense; and such other expenses as may736
be necessary or incident to the acquisition or construction of the737
facility, the financing of such acquisition or construction,738
including the amount authorized in the resolution of the739
convention facilities authority providing for the issuance of740
convention facilities authority revenue bonds to be paid into any741
special funds from the proceeds of such bonds, the cost of issuing742
the bonds, and the financing of the placing of such facility in743
operation. Any obligation, cost, or expense incurred by any744
governmental agency or person for surveys, borings, preparation of745
plans and specifications, and other engineering services, or any746
other cost described above, in connection with the acquisition or747
construction of a facility may be regarded as part of the cost of748
such facility and may be reimbursed out of the proceeds of749
convention facilities authority revenue bonds as authorized by750
this chapter.751

       (F) "Owner" includes a person having any title or interest752
in any property, rights, easements, or interests authorized to be753
acquired by Chapter 351. of the Revised Code.754

       (G) "Revenues" means all rentals and other charges received755
by the convention facilities authority for the use or services of756
any facility, the sale of any merchandise, or the operation of any757
concessions; any gift or grant received with respect to any758
facility, any moneys received with respect to the lease, sublease,759
sale, including installment sale or conditional sale, or other760
disposition of a facility or part thereof; moneys received in761
repayment of and for interest on any loans made by the authority762
to a person or governmental agency, whether from the United States763
or any department, administration, or agency thereof, or764
otherwise; proceeds of convention facilities authority revenue765
bonds to the extent the use thereof for payment of principal or of766
premium, if any, or interest on the bonds is authorized by the767
authority; proceeds from any insurance, appropriation, or guaranty768
pertaining to a facility or property mortgaged to secure bonds or769
pertaining to the financing of the facility; income and profit770
from the investment of the proceeds of convention facilities771
authority revenue bonds or of any revenues; contributions of the772
proceeds of a tax levied pursuant to division (A)(3) of section773
5739.0245739.09 of the Revised Code; and moneys transmitted to774
the authority pursuant to division (B) of section 5739.211 and775
division (B) of section 5741.031 of the Revised Code.776

       (H) "Public roads" includes all public highways, roads, and777
streets in the state, whether maintained by the state, county,778
city, township, or other political subdivision.779

       (I) "Construction," unless the context indicates a different780
meaning or intent, includes, but is not limited to,781
reconstruction, enlargement, improvement, or providing fixtures,782
furnishings, and equipment.783

       (J) "Convention facilities authority revenue bonds" or784
"revenue bonds," unless the context indicates a different meaning785
or intent, includes convention facilities authority revenue notes,786
convention facilities authority revenue renewal notes, and787
convention facilities authority revenue refunding bonds.788

       (K) "Convention facilities authority tax anticipation bonds"789
or "tax anticipation bonds," unless the context indicates a790
different meaning, includes convention facilities authority tax791
anticipation bonds, tax anticipation notes, tax anticipation792
renewal notes, and tax anticipation refunding bonds.793

       (L) "Bonds and notes" means convention facilities authority794
revenue bonds and convention facilities authority tax anticipation795
bonds.796

       (M) "Territory of the authority" means all of the area of797
the county creating the convention facilities authority.798

       (N) "Excise taxes" means either or both of the taxes levied799
pursuant to division (B) of section 351.021 of the Revised Code.800
"Excise taxes" does not include taxes levied pursuant to section801
4301.424, 5743.026, or 5743.324 of the Revised Code.802

       (O) "Transaction" means the charge by a hotel for each803
occupancy by transient guests of a room or suite of rooms used in804
a hotel as a single unit for any period of twenty-four hours or805
less.806

       (P) "Hotel" and "transient guests" have the same meanings as807
in section 5739.01 of the Revised Code.808

       (Q) "Sports facility" means a facility intended to house809
major league professional athletic teams.810

       (R) "Constructing" or "construction" includes providing811
fixtures, furnishings, and equipment.812

       Sec. 351.021.  (A) The resolution of the county813
commissioners creating a convention facilities authority, or any814
amendment or supplement to that resolution, may authorize the815
authority to levy one or both of the excise taxes authorized by816
division (B) of this section to pay the cost of one or more817
facilities; to pay principal, interest, and premium on convention818
facilities authority tax anticipation bonds issued to pay those819
costs; to pay the operating costs of the authority; to pay820
operating and maintenance costs of those facilities; and to pay821
the costs of administering the excise tax.822

       (B) The board of directors of a convention facilities823
authority that has been authorized pursuant to resolution adopted,824
amended, or supplemented by the board of county commissioners825
pursuant to division (A) of this section may levy, by resolution826
adopted on or before December 31, 1988, either or both of the827
following:828

       (1) Within the territory of the authority, an additional829
excise tax not to exceed four per cent on each transaction. The830
excise tax authorized by division (B)(1) of this section shall be831
in addition to any excise tax levied pursuant to division (C) of832
section 5739.02, section 5739.0245739.08 or 5739.09 of the833
Revised Code, or division (B)(2) of this section.834

       (2) Within that portion of any municipal corporation that is835
located within the territory of the authority or within the836
boundaries of any township that is located within the territory of837
the authority, which municipal corporation or township is levying838
any portion of the excise tax authorized by division (C)(1)(A) of839
section 5739.025739.08 of the Revised Code, and with the840
approval, by ordinance or resolution, of the legislative authority841
of that municipal corporation or township, an additional excise842
tax not to exceed nine-tenths of one per cent on each transaction.843
The excise tax authorized by division (B)(2) of this section may844
be levied only if, on the effective date of the levy specified in845
the resolution making the levy, the amount being levied pursuant846
to division (C)(1)(A) of section 5739.025739.08 of the Revised847
Code by each municipal corporation or township in which the tax848
authorized by division (B)(2) of this section will be levied, when849
added to the amount levied under division (B)(2) of this section,850
does not exceed three per cent on each transaction. The excise851
tax authorized by division (B)(2) of this section shall be in852
addition to any excise tax that is levied pursuant to division (C)853
of section 5739.02 of the Revised Code, section 5739.0245739.08854
or 5739.09 of the Revised Code, or division (B)(1) of this855
section.856

       (C) The authority shall provide for the administration and857
allocation of the excise taxes levied pursuant to division (B) of858
this section. All receipts arising from those excise taxes shall859
be expended for the purposes provided in, and in accordance with860
this section and section 351.141 of the Revised Code. An excise861
tax levied under division (B) of this section shall remain in862
effect at the rate at which it is levied for at least the duration863
of the period for which the receipts from the tax have been864
anticipated and pledged pursuant to section 351.141 of the Revised865
Code.866

       (D) Except as provided in division (B)(2) of this section,867
the levy of an excise tax on each transaction pursuant to division868
(C) of section 5739.02 of the Revised Code and section 5739.024869
sections 5739.08 and 5739.09 of the Revised Code does not prevent870
a convention facilities authority from levying the excise taxes871
pursuant to division (B) of this section.872

       Sec. 351.03.  (A) Except as provided in division (A)(3) of873
section 5739.0245739.09 or in section 5739.026 of the Revised874
Code, no county creating a convention facilities authority may875
appropriate and expend public funds to finance or subsidize the876
operation of the authority.877

       (B) Subject to making due provisions for payment and878
performance of its obligations, a convention facilities authority879
may be dissolved by the county creating it. In such event the880
properties of the authority shall be transferred to the county881
creating it, and the county may thereupon appropriate and expend882
public funds to finance or subsidize the operation of such883
facilities.884

       Sec. 351.141.  A convention facilities authority that levies885
one or both of the excise taxes authorized by division (B) of886
section 351.021 of the Revised Code or that receives contributions887
pursuant to division (A)(3) of section 5739.0245739.09 of the888
Revised Code, by resolution may anticipate the proceeds of the889
levy and issue convention facilities authority tax anticipation890
bonds, and notes anticipating the proceeds or the bonds, in the891
principal amount that, in the opinion of the authority, are892
necessary for the purpose of paying the cost of one or more893
facilities or parts of one or more facilities, and as able, with894
the interest on them, be paid over the term of the issue, or in895
the case of notes anticipating bonds over the term of the bonds,896
by the estimated amount of the excise taxes or contributions897
anticipated thereby. The excise taxes or contributions are898
determined by the general assembly to satisfy any applicable899
requirement of Section 11 of Article XII, Ohio Constitution. An900
authority, at any time, may issue renewal tax anticipation notes,901
issue tax anticipation bonds to pay such notes, and, whenever it902
considers refunding expedient, refund any tax anticipation bonds903
by the issuance of tax anticipation refunding bonds whether the904
bonds to be refunded have or have not matured, and issue tax905
anticipation bonds partly to refund bonds then outstanding and906
partly for any other authorized purpose. The refunding bonds907
shall be sold and the proceeds needed for such purpose applied in908
the manner provided in the bond proceedings to the purchase,909
redemption, or payment of the bonds to be refunded.910

       Every issue of outstanding tax anticipation bonds shall be911
payable out of the proceeds of the excise taxes or contributions912
anticipated and other revenues of the authority that are pledged913
for such payment. The pledge shall be valid and binding from the914
time the pledge is made, and the anticipated excise taxes,915
contributions, and revenues so pledged and thereafter received by916
the authority immediately shall be subject to the lien of that917
pledge without any physical delivery of those excise taxes,918
contributions, and revenues or further act. The lien of any919
pledge is valid and binding as against all parties having claims920
of any kind in tort, contract, or otherwise against the authority,921
whether or not such parties have notice of the lien. Neither the922
resolution nor any trust agreement by which a pledge is created923
need be filed or recorded except in the authority's records.924

       Whether or not the bonds or notes are of such form and925
character as to be negotiable instruments under Title XIII of the926
Revised Code, the bonds or notes shall have all the qualities and927
incidents of negotiable instruments, subject only to their928
provisions for registration, if any.929

       The tax anticipation bonds shall bear such date or dates, and930
shall mature at such time or times, in the case of any such notes931
or any renewals of such notes not exceeding twenty years from the932
date of issue of such original notes and in the case of any such933
bonds or any refunding bonds not exceeding forty years from the934
date of the original issue of notes or bonds for the purpose, and935
shall be executed in the manner that the resolution authorizing936
the bonds may provide. The tax anticipation bonds shall bear937
interest at such rates, or at variable rate or rates changing from938
time to time, in accordance with provisions provided in the939
authorizing resolution, be in such denominations and form, either940
coupon or registered, carry such registration privileges, be941
payable in such medium of payment and at such place or places, and942
be subject to such terms of redemption, as the authority may943
authorize or provide. The tax anticipation bonds may be sold at944
public or private sale, and at, or at not less than the price or945
prices as the authority determines. If any officer whose946
signature or a facsimile of whose signature appears on any bonds947
or coupons ceases to be such officer before delivery of the bonds,948
the signature or facsimile shall nevertheless be sufficient for949
all purposes as if the officer had remained in office until950
delivery of the bonds, and in case the seal of the authority has951
been changed after a facsimile has been imprinted on the bonds,952
the facsimile seal will continue to be sufficient for all953
purposes.954

       Any resolution or resolutions authorizing any tax955
anticipation bonds or any issue of tax anticipation bonds may956
contain provisions, subject to any agreements with bondholders as957
may then exist, which provisions shall be a part of the contract958
with the holders of the bonds, as to the pledging of any or all of959
the authority's anticipated excise taxes, contributions, and960
revenues to secure the payment of the bonds or of any issue of the961
bonds; the use and disposition of revenues of the authority; the962
crediting of the proceeds of the sale of bonds to and among the963
funds referred to or provided for in the resolution; limitations964
on the purpose to which the proceeds of sale of the bonds may be965
applied and the pledging of portions of such proceeds to secure966
the payment of the bonds or of any issue of the bonds; as to notes967
issued in anticipation of the issuance of bonds, the agreement of968
the authority to do all things necessary for the authorization,969
issuance, and sale of such bonds in such amounts as may be970
necessary for the timely retirement of such notes; limitations on971
the issuance of additional bonds; the terms upon which additional972
bonds may be issued and secured; the refunding of outstanding973
bonds; the procedure, if any, by which the terms of any contract974
with bondholders may be amended, the amount of bonds the holders975
of which must consent thereto, and the manner in which such976
consent may be given; securing any bonds by a trust agreement in977
accordance with section 351.16 of the Revised Code; any other978
matters, of like or different character, that in any way affect979
the security or protection of the bonds. The excise taxes980
anticipated by the bonds, including bonds anticipated by notes,981
shall not be subject to diminution by initiative or referendum or982
by law while the bonds or notes remain outstanding in accordance983
with their terms, unless provision is made by law or by the984
authority for an adequate substitute therefor reasonably985
satisfactory to the trustee, if a trust agreement secures the986
bonds.987

       Neither the members of the board of directors of the988
authority nor any person executing the bonds shall be liable989
personally on the bonds or be subject to any personal liability or990
accountability by reason of the issuance thereof.991

       Sec. 505.56.  Subject to the limitation in division (C)(1)(A)992
of section 5739.025739.08 of the Revised Code, a board of993
township trustees may by resolution adopted by a majority of the994
members of the board, levy an excise tax on transactions by which995
lodging by a hotel is or is to be furnished to transient guests.996
The board may establish all regulations necessary to provide for997
the administration and allocation of the tax. All funds arising998
from such an excise tax shall be deposited in the township999
treasury and may be expended for any lawful purpose. A board of1000
township trustees shall not levy the tax authorized by this1001
section in any city or village.1002

       As used in this section, "hotel" and "transient guests" have1003
the same meaning as in section 5739.01 of the Revised Code.1004

       Sec. 3715.52.  (A) The following acts and causing them are1005
prohibited:1006

       (1) The manufacture, sale, or delivery, holding or offering1007
for sale of any food, drug, device, or cosmetic that is1008
adulterated or misbranded;1009

       (2) The adulteration or misbranding of any food, drug,1010
device, or cosmetic;1011

       (3) The receipt in commerce of any food, drug, device, or1012
cosmetic that is adulterated or misbranded, and the delivery or1013
proffered delivery thereof for pay or otherwise;1014

       (4) The sale, delivery for sale, holding for sale, or1015
offering for sale of any article in violation of section 3715.611016
or 3715.65 of the Revised Code;1017

       (5) The dissemination of any false advertisement;1018

       (6) The refusal to permit entry or inspection, or to permit1019
the taking of a sample, as authorized by section 3715.70 of the1020
Revised Code;1021

       (7) The giving of a guaranty or undertaking that is false,1022
except by a person who relied on a guaranty or undertaking to the1023
same effect signed by, and containing the name and address of the1024
person residing in this state from whom the person received in1025
good faith the food, drug, device, or cosmetic;1026

       (8) The removal or disposal of a detained or embargoed1027
article in violation of section 3715.55 or 3715.551 of the Revised1028
Code;1029

       (9) The alteration, mutilation, destruction, obliteration,1030
or removal of the whole or any part of the labeling of, or the1031
doing of any other act with respect to a food, drug, device, or1032
cosmetic, if the act is done while the article is held for sale1033
and results in the article being misbranded;1034

       (10) Forging, counterfeiting, simulating, or falsely1035
representing, or without proper authority using any mark, stamp,1036
tag, label, or other identification device authorized or required1037
by rules adopted pursuant to sections 3715.52 to 3715.72 of the1038
Revised Code;1039

       (11) The using, on the labeling of any drug or in any1040
advertisement relating to a drug, of any representation or1041
suggestion that any application with respect to the drug is1042
effective under section 3715.65 of the Revised Code or that the1043
drug complies with the provisions of that section;1044

       (12) The using by any person to the person's own advantage,1045
or revealing, other than to the director of agriculture or to the1046
courts when relevant in any judicial proceeding under sections1047
3715.52 to 3715.72 of the Revised Code, any information acquired1048
under authority of sections 3715.01 and 3715.52 to 3715.72 of the1049
Revised Code, concerning any information that as a trade secret is1050
entitled to protection;1051

       (13) The issuance by the manufacturer, packer, or1052
distributor of a dangerous drug of any advertisements, catalogues,1053
or price lists, except those lists specifically designed for1054
disseminating price change information, that do not contain in1055
clearly legible form the name and place of business of the1056
manufacturer who mixed the final ingredients and, if different,1057
the manufacturer who produced the drug in its finished dosage form1058
and, if different, the packer or distributor.1059

       (B)(1) No person at a flea market shall sell, offer for1060
sale, or knowingly permit the sale of any of the following1061
products:1062

       (a) Baby food, infant formula, or similar products;1063

       (b) Any drug, cosmetic, or device;1064

       (c) Any product on which is printed or stamped an expiration1065
date or a date recommended by the manufacturer as either the last1066
day on which the product should be offered for sale or the last1067
day on which the product should be used.1068

       (2) Division (B)(1) of this section does not apply to a1069
person who keeps available for public inspection an identification1070
card identifying the person as an authorized representative of the1071
manufacturer or distributor of any drug, cosmetic, or device, as1072
long as the card is not false, fraudulent, or fraudulently1073
obtained.1074

       (3) Division (B)(1)(c) of this section does not apply to a1075
person or governmental entity that is licensed as a retail food1076
establishment or food service operation under Chapter 3717. of the1077
Revised Code or is listed in division (B)(9) or (12) of section1078
3717.42 of the Revised Code.1079

       (4) As used in division (B)(1) of this section, "flea1080
market" means any location, other than a permanent retail store,1081
at which space is rented or otherwise made available to others for1082
the conduct of business as transient or limited vendors as defined1083
in section 5739.17 of the Revised Code.1084

       Sec. 4501.32.  (A) There is hereby created in the state1085
treasury the professional sports teams license plate fund. The1086
fund shall consist of the contributions that are paid to the1087
registrar of motor vehicles by applicants who voluntarily choose1088
to obtain license plates bearing the logo of a professional sports1089
team pursuant to section 4503.591 of the Revised Code.1090

       (B) If a professional sports team located in this state1091
desires to have its logo appear on license plates issued by this1092
state, it shall inform the largest convention and visitors' bureau1093
of the county in which the professional sports team is located of1094
that desire. That convention and visitors' bureau shall create a1095
sports commission to operate in that county to receive the1096
contributions that are paid by applicants who choose to be issued1097
license plates bearing the logo of that professional sports team1098
for display on their motor vehicles. The sports commission shall1099
negotiate with the professional sports team to permit the display1100
of the team's logo on license plates issued by this state, enter1101
into the contract with the team to permit such display, and pay to1102
the team any licensing or rights fee that must be paid in1103
connection with the issuance of the license plates. Upon1104
execution of the contract, the sports commission shall provide a1105
copy of it to the registrar of motor vehicles, along with any1106
other documentation the registrar may require. Upon receipt of1107
the contract and any required additional documentation, and when1108
the numerical requirement contained in division (A) of section1109
4503.78 of the Revised Code has been met relative to that1110
particular professional sports team, the registrar shall take the1111
measures necessary to issue license plates bearing the logo of1112
that team.1113

       The registrar shall pay to the sports commission all1114
contributions that are paid by applicants who obtain license1115
plates that bear the logos of participating professional sports1116
teams located in the county of the sports commission, irrespective1117
of the county of residence of an applicant.1118

       (C) A sports commission shall expend the money it receives1119
under this section to attract amateur regional, national, and1120
international sporting events to the municipal corporation,1121
county, or township in which it is located, and it may sponsor1122
such events. Prior to attracting or sponsoring such events, the1123
sports commission shall perform an economic analysis to determine1124
whether the proposed event will have a positive economic effect on1125
the greater area in which the event will be held. A sports1126
commission shall not expend any money it receives under this1127
section to attract or sponsor an amateur regional, national, or1128
international sporting event if its economic analysis does not1129
result in a finding that the proposed event will have a positive1130
economic effect on the greater area in which the event will be1131
held.1132

       A sports commission that receives money pursuant to this1133
section, in addition to any other duties imposed on it by law and1134
notwithstanding the scope of those duties, also shall encourage1135
the economic development of this state through the promotion of1136
tourism within all areas of this state. A sports commission that1137
receives ten thousand dollars or more during any calendar year1138
pursuant to this section shall submit a written report to the1139
director of development, on or before the first day of October of1140
the next succeeding year, detailing its efforts and expenditures1141
in the promotion of tourism during the calendar year in which it1142
received the ten thousand dollars or more.1143

       As used in this division, "promotion of tourism" means the1144
encouragement through advertising, educational and informational1145
means, and public relations, both within the state and outside of1146
it, of travel by persons away from their homes for pleasure,1147
personal reasons, or other purposes, except to work, to this state1148
or to the region in which the sports commission is located.1149

       (D) For purposes of this section:1150

       (1) The "largest" convention and visitors' bureau of a1151
county is the bureau that receives the largest amount of money1152
generated in that county from excise taxes levied on lodging1153
transactions under sections 351.021, 5739.025739.08, and 5739.0241154
5739.09 of the Revised Code.1155

       (2) "Sports commission" means a nonprofit corporation1156
organized under the laws of this state that is entitled to tax1157
exempt status under section 501(c)(3) of the "Internal Revenue1158
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 501, as amended, and1159
whose function is to attract, promote, or sponsor sports and1160
athletic events within a municipal corporation, county, or1161
township.1162

       Such a commission shall consist of twenty-one members. Seven1163
members shall be appointed by the mayor of the largest city to be1164
served by the commission. Seven members shall be appointed by the1165
board of county commissioners of the county to be served by the1166
commission. Seven members shall be appointed by the largest1167
convention and visitor'svisitors' bureau in the area to be served1168
by the commission. A sports commission may provide all services1169
related to attracting, promoting, or sponsoring such events,1170
including, but not limited to, the booking of athletes and teams,1171
scheduling, and hiring or contracting for staff, ushers, managers,1172
and other persons whose functions are directly related to the1173
sports and athletic events the commission attracts, promotes, or1174
sponsors.1175

       Sec. 5703.65. Registration with the central registration1176
system provided for in section 5740.05 of the Revised Code shall1177
not be used as a basis for establishing nexus with or in this1178
state for any tax levied by the state or a political subdivision1179
of the state.1180

       Sec. 5739.01.  As used in this chapter:1181

       (A) "Person" includes individuals, receivers, assignees,1182
trustees in bankruptcy, estates, firms, partnerships,1183
associations, joint-stock companies, joint ventures, clubs,1184
societies, corporations, the state and its political subdivisions,1185
and combinations of individuals of any form.1186

       (B) "Sale" and "selling" include all of the following1187
transactions for a consideration in any manner, whether absolutely1188
or conditionally, whether for a price or rental, in money or by1189
exchange, and by any means whatsoever:1190

       (1) All transactions by which title or possession, or both,1191
of tangible personal property, is or is to be transferred, or a1192
license to use or consume tangible personal property is or is to1193
be granted;1194

       (2) All transactions by which lodging by a hotel is or is to1195
be furnished to transient guests;1196

       (3) All transactions by which:1197

       (a) An item of tangible personal property is or is to be1198
repaired, except property, the purchase of which would be exempt1199
from the tax imposed by section 5739.02 of the Revised Code;1200

       (b) An item of tangible personal property is or is to be1201
installed, except property, the purchase of which would be exempt1202
from the tax imposed by section 5739.02 of the Revised Code or1203
property that is or is to be incorporated into and will become a1204
part of a production, transmission, transportation, or1205
distribution system for the delivery of a public utility service;1206

       (c) The service of washing, cleaning, waxing, polishing, or1207
painting a motor vehicle is or is to be furnished;1208

       (d) Industrial laundry cleaning services are or are to be1209
provided;1210

       (e) Automatic data processing, computer services, or1211
electronic information services are or are to be provided for use1212
in business when the true object of the transaction is the receipt1213
by the consumer of automatic data processing, computer services,1214
or electronic information services rather than the receipt of1215
personal or professional services to which automatic data1216
processing, computer services, or electronic information services1217
are incidental or supplemental. Notwithstanding any other1218
provision of this chapter, such transactions that occur between1219
members of an affiliated group are not sales. An affiliated group1220
means two or more persons related in such a way that one person1221
owns or controls the business operation of another member of the1222
group. In the case of corporations with stock, one corporation1223
owns or controls another if it owns more than fifty per cent of1224
the other corporation's common stock with voting rights.1225

       (f) Telecommunications service, other than mobile1226
telecommunications service after July 31, 2002, is provided that1227
originates or terminates in this state and is charged in the1228
records of the telecommunications service vendor to the consumer's1229
telephone number or account in this state, or that both originates1230
and terminates in this state; but does not include transactions by1231
which telecommunications service is paid for by using a prepaid1232
authorization number or prepaid telephone calling card, or by1233
which local telecommunications service is obtained from a1234
coin-operated telephone and paid for by using coin;1235

       (g) Landscaping and lawn care service is or is to be1236
provided;1237

       (h) Private investigation and security service is or is to1238
be provided;1239

       (i) Information services or tangible personal property is1240
provided or ordered by means of a nine hundred telephone call;1241

       (j) Building maintenance and janitorial service is or is to1242
be provided;1243

       (k) Employment service is or is to be provided;1244

       (l) Employment placement service is or is to be provided;1245

       (m) Exterminating service is or is to be provided;1246

       (n) Physical fitness facility service is or is to be1247
provided;1248

       (o) Recreation and sports club service is or is to be1249
provided.1250

       (p) After July 31, 2002, mobile telecommunications service1251
is deemed to be provided in this state, pursuant to the Mobile1252
Telecommunications Sourcing Act, Pub. L. No. 106-252, 114 Stat.1253
626 (2000), 4 U.S.C.A. 116 to 126, as amended.1254

       (4) All transactions by which printed, imprinted,1255
overprinted, lithographic, multilithic, blueprinted, photostatic,1256
or other productions or reproductions of written or graphic matter1257
are or are to be furnished or transferred;1258

       (5) The production or fabrication of tangible personal1259
property for a consideration for consumers who furnish either1260
directly or indirectly the materials used in the production of1261
fabrication work; and include the furnishing, preparing, or1262
serving for a consideration of any tangible personal property1263
consumed on the premises of the person furnishing, preparing, or1264
serving such tangible personal property. Except as provided in1265
section 5739.03 of the Revised Code, a construction contract1266
pursuant to which tangible personal property is or is to be1267
incorporated into a structure or improvement on and becoming a1268
part of real property is not a sale of such tangible personal1269
property. The construction contractor is the consumer of such1270
tangible personal property, provided that the sale and1271
installation of carpeting, the sale and installation of1272
agricultural land tile, the sale and erection or installation of1273
portable grain bins, or the provision of landscaping and lawn care1274
service and the transfer of property as part of such service is1275
never a construction contract. The transfer of copyrighted motion1276
picture films for exhibition purposes is not a sale, except such1277
films as are used solely for advertising purposes. Other than as1278
provided in this section, "sale" and "selling" do not include1279
professional, insurance, or personal service transactions that1280
involve the transfer of tangible personal property as an1281
inconsequential element, for which no separate charges are made.1282

       As used in division (B)(5) of this section:1283

       (a) "Agricultural land tile" means fired clay or concrete1284
tile, or flexible or rigid perforated plastic pipe or tubing,1285
incorporated or to be incorporated into a subsurface drainage1286
system appurtenant to land used or to be used directly in1287
production by farming, agriculture, horticulture, or floriculture.1288
The term does not include such materials when they are or are to1289
be incorporated into a drainage system appurtenant to a building1290
or structure even if the building or structure is used or to be1291
used in such production.1292

       (b) "Portable grain bin" means a structure that is used or1293
to be used by a person engaged in farming or agriculture to1294
shelter the person's grain and that is designed to be disassembled1295
without significant damage to its component parts.1296

       (6) All transactions in which all of the shares of stock of1297
a closely held corporation are transferred, if the corporation is1298
not engaging in business and its entire assets consist of boats,1299
planes, motor vehicles, or other tangible personal property1300
operated primarily for the use and enjoyment of the shareholders;1301

       (7) All transactions in which a warranty, maintenance or1302
service contract, or similar agreement by which the vendor of the1303
warranty, contract, or agreement agrees to repair or maintain the1304
tangible personal property of the consumer is or is to be1305
provided;1306

       (8) All transactions by which a prepaid authorization number1307
or a prepaid telephone calling card is or is to be transferred.1308

       (C) "Vendor" means the person providing the service or by1309
whom the transfer effected or license given by a sale is or is to1310
be made or given and, for sales described in division (B)(3)(i) of1311
this section, the telecommunications service vendor that provides1312
the nine hundred telephone service; if two or more persons are1313
engaged in business at the same place of business under a single1314
trade name in which all collections on account of sales by each1315
are made, such persons shall constitute a single vendor.1316

       Physicians, dentists, hospitals, and veterinarians who are1317
engaged in selling tangible personal property as received from1318
others, such as eyeglasses, mouthwashes, dentifrices, or similar1319
articles, are vendors. Veterinarians who are engaged in1320
transferring to others for a consideration drugs, the dispensing1321
of which does not require an order of a licensed veterinarian or1322
physician under federal law, are vendors.1323

       (D)(1) "Consumer" means the person for whom the service is1324
provided, to whom the transfer effected or license given by a sale1325
is or is to be made or given, to whom the service described in1326
division (B)(3)(f) or (i) of this section is charged, or to whom1327
the admission is granted.1328

       (2) Physicians, dentists, hospitals, and blood banks1329
operated by nonprofit institutions and persons licensed to1330
practice veterinary medicine, surgery, and dentistry are consumers1331
of all tangible personal property and services purchased by them1332
in connection with the practice of medicine, dentistry, the1333
rendition of hospital or blood bank service, or the practice of1334
veterinary medicine, surgery, and dentistry. In addition to being1335
consumers of drugs administered by them or by their assistants1336
according to their direction, veterinarians also are consumers of1337
drugs that under federal law may be dispensed only by or upon the1338
order of a licensed veterinarian or physician, when transferred by1339
them to others for a consideration to provide treatment to animals1340
as directed by the veterinarian.1341

       (3) A person who performs a facility management, or similar1342
service contract for a contractee is a consumer of all tangible1343
personal property and services purchased for use in connection1344
with the performance of such contract, regardless of whether title1345
to any such property vests in the contractee. The purchase of1346
such property and services is not subject to the exception for1347
resale under division (E)(1) of this section.1348

       (4)(a) In the case of a person who purchases printed matter1349
for the purpose of distributing it or having it distributed to the1350
public or to a designated segment of the public, free of charge,1351
that person is the consumer of that printed matter, and the1352
purchase of that printed matter for that purpose is a sale.1353

       (b) In the case of a person who produces, rather than1354
purchases, printed matter for the purpose of distributing it or1355
having it distributed to the public or to a designated segment of1356
the public, free of charge, that person is the consumer of all1357
tangible personal property and services purchased for use or1358
consumption in the production of that printed matter. That person1359
is not entitled to claim exception under division (E)(8) of this1360
section for any material incorporated into the printed matter or1361
any equipment, supplies, or services primarily used to produce the1362
printed matter.1363

       (c) The distribution of printed matter to the public or to a1364
designated segment of the public, free of charge, is not a sale to1365
the members of the public to whom the printed matter is1366
distributed or to any persons who purchase space in the printed1367
matter for advertising or other purposes.1368

       (5) A person who makes sales of any of the services listed1369
in division (B)(3) of this section is the consumer of any tangible1370
personal property used in performing the service. The purchase of1371
that property is not subject to the resale exception under1372
division (E)(1) of this section.1373

       (E) "Retail sale" and "sales at retail" include all sales1374
except those in which the purpose of the consumer is:1375

       (1) To resell the thing transferred or benefit of the1376
service provided, by a person engaging in business, in the form in1377
which the same is, or is to be, received by the person;1378

       (2) To incorporate the thing transferred as a material or a1379
part, into tangible personal property to be produced for sale by1380
manufacturing, assembling, processing, or refining, or to use or1381
consume the thing transferred directly in producing a product for1382
sale by mining, including without limitation the extraction from1383
the earth of all substances that are classed geologically as1384
minerals, production of crude oil and natural gas, farming,1385
agriculture, horticulture, or floriculture, and persons engaged in1386
rendering farming, agricultural, horticultural, or floricultural1387
services, and services in the exploration for, and production of,1388
crude oil and natural gas, for others are deemed engaged directly1389
in farming, agriculture, horticulture, and floriculture, or1390
exploration for, and production of, crude oil and natural gas;1391
directly in the rendition of a public utility service, except that1392
the sales tax levied by section 5739.02 of the Revised Code shall1393
be collected upon all meals, drinks, and food for human1394
consumption sold upon Pullman and railroad coaches. This1395
paragraph does not exempt or except from "retail sale" or "sales1396
at retail" the sale of tangible personal property that is to be1397
incorporated into a structure or improvement to real property.1398

       (3) To hold the thing transferred as security for the1399
performance of an obligation of the vendor;1400

       (4) To use or consume the thing transferred in the process1401
of reclamation as required by Chapters 1513. and 1514. of the1402
Revised Code;1403

       (5) To resell, hold, use, or consume the thing transferred1404
as evidence of a contract of insurance;1405

       (6) To use or consume the thing directly in commercial1406
fishing;1407

       (7) To incorporate the thing transferred as a material or a1408
part into, or to use or consume the thing transferred directly in1409
the production of, magazines distributed as controlled circulation1410
publications;1411

       (8) To use or consume the thing transferred in the1412
production and preparation in suitable condition for market and1413
sale of printed, imprinted, overprinted, lithographic,1414
multilithic, blueprinted, photostatic, or other productions or1415
reproductions of written or graphic matter;1416

       (9) To use the thing transferred, as described in section1417
5739.011 of the Revised Code, primarily in a manufacturing1418
operation to produce tangible personal property for sale;1419

       (10) To use the benefit of a warranty, maintenance or1420
service contract, or similar agreement, as defined in division1421
(B)(7) of this section, to repair or maintain tangible personal1422
property, if all of the property that is the subject of the1423
warranty, contract, or agreement would be exempt on its purchase1424
from the tax imposed by section 5739.02 of the Revised Code;1425

       (11) To use the thing transferred as qualified research and1426
development equipment;1427

       (12) To use or consume the thing transferred primarily in1428
storing, transporting, mailing, or otherwise handling purchased1429
sales inventory in a warehouse, distribution center, or similar1430
facility when the inventory is primarily distributed outside this1431
state to retail stores of the person who owns or controls the1432
warehouse, distribution center, or similar facility, to retail1433
stores of an affiliated group of which that person is a member, or1434
by means of direct marketing. Division (E)(12) of this section1435
does not apply to motor vehicles registered for operation on the1436
public highways. As used in division (E)(12) of this section,1437
"affiliated group" has the same meaning as in division (B)(3)(e)1438
of this section and "direct marketing" has the same meaning as in1439
division (B)(37) of section 5739.02 of the Revised Code.1440

       (13) To use or consume the thing transferred to fulfill a1441
contractual obligation incurred by a warrantor pursuant to a1442
warranty provided as a part of the price of the tangible personal1443
property sold or by a vendor of a warranty, maintenance or service1444
contract, or similar agreement the provision of which is defined1445
as a sale under division (B)(7) of this section;1446

       (14) To use or consume the thing transferred in the1447
production of a newspaper for distribution to the public;1448

       (15) To use tangible personal property to perform a service1449
listed in division (B)(3) of this section, if the property is or1450
is to be permanently transferred to the consumer of the service as1451
an integral part of the performance of the service.1452

       As used in division (E) of this section, "thing" includes all1453
transactions included in divisions (B)(3)(a), (b), and (e) of this1454
section.1455

       Sales conducted through a coin-operated device that activates1456
vacuum equipment or equipment that dispenses water, whether or not1457
in combination with soap or other cleaning agents or wax, to the1458
consumer for the consumer's use on the premises in washing,1459
cleaning, or waxing a motor vehicle, provided no other personal1460
property or personal service is provided as part of the1461
transaction, are not retail sales or sales at retail.1462

       (F) "Business" includes any activity engaged in by any1463
person with the object of gain, benefit, or advantage, either1464
direct or indirect. "Business" does not include the activity of a1465
person in managing and investing the person's own funds.1466

       (G) "Engaging in business" means commencing, conducting, or1467
continuing in business, and liquidating a business when the1468
liquidator thereof holds itself out to the public as conducting1469
such business. Making a casual sale is not engaging in business.1470

       (H)(1) "Price," except as provided in divisions (H)(2) and1471
(3) of this section, means the aggregate value in money of1472
anything paid or delivered, or promised to be paid or delivered,1473
in the complete performance of a retail sale, without any1474
deduction on account of the cost of the property sold, cost of1475
materials used, labor or service cost, interest, discount paid or1476
allowed after the sale is consummated, or any other expense. If1477
the retail sale consists of the rental or lease of tangible1478
personal property, "price" means the aggregate value in money of1479
anything paid or delivered, or promised to be paid or delivered,1480
in the complete performance of the rental or lease, without any1481
deduction for tax, interest, labor or service charge, damage1482
liability waiver, termination or damage charge, discount paid or1483
allowed after the lease is consummated, or any other expense. The1484
sales tax shall be calculated and collected by the lessor on each1485
payment made by the lessee. "Price" does not include the1486
consideration received as a deposit refundable to the consumer1487
upon return of a beverage container, the consideration received as1488
a deposit on a carton or case that is used for such returnable1489
containers, or the consideration received as a refundable security1490
deposit for the use of tangible personal property to the extent1491
that it actually is refunded, if the consideration for such1492
refundable deposit is separately stated from the consideration1493
received or to be received for the tangible personal property1494
transferred in the retail sale. Such separation must appear in1495
the sales agreement or on the initial invoice or initial billing1496
rendered by the vendor to the consumer. "Price" also does not1497
include delivery charges that are separately stated on the initial1498
invoice or initial billing rendered by the vendor. Price is the1499
amount received inclusive of the tax, provided the vendor1500
establishes to the satisfaction of the tax commissioner that the1501
tax was added to the price. When the price includes both a charge1502
for tangible personal property and a charge for providing a1503
service and the sale of the property and the charge for the1504
service are separately taxable, or have a separately determinable1505
tax status, the price shall be separately stated for each such1506
charge so the tax can be correctly computed and charged.1507

       The tax collected by the vendor from the consumer under this1508
chapter is not part of the price, but is a tax collection for the1509
benefit of the state and of counties levying an additional sales1510
tax pursuant to section 5739.021 or 5739.026 of the Revised Code1511
and of transit authorities levying an additional sales tax1512
pursuant to section 5739.023 of the Revised Code. Except for the1513
discount authorized in section 5739.12 of the Revised Code, no1514
person other than the state or such a county or transit authority1515
shall derive any benefit from the collection or payment of such1516
tax.1517

       As used in division (H)(1) of this section, "delivery1518
charges" means charges by the vendor for preparation and delivery1519
to a location designated by the consumer of tangible personal1520
property or a service, including transportation, shipping,1521
postage, handling, crating, and packing.1522

       (2) In the case of a sale of any new motor vehicle by a new1523
motor vehicle dealer, as defined in section 4517.01 of the Revised1524
Code, in which another motor vehicle is accepted by the dealer as1525
part of the consideration received, "price" has the same meaning1526
as in division (H)(1) of this section, reduced by the credit1527
afforded the consumer by the dealer for the motor vehicle received1528
in trade.1529

       (3) In the case of a sale of any watercraft or outboard1530
motor by a watercraft dealer licensed in accordance with section1531
1547.543 of the Revised Code, in which another watercraft,1532
watercraft and trailer, or outboard motor is accepted by the1533
dealer as part of the consideration received, "price" has the same1534
meaning as in division (H)(1) of this section, reduced by the1535
credit afforded the consumer by the dealer for the watercraft,1536
watercraft and trailer, or outboard motor received in trade. As1537
used in division (H)(3) of this section, "watercraft" includes an1538
outdrive unit attached to the watercraft.1539

       (I) "Receipts" means the total amount of the prices of the1540
sales of vendors, provided that cash discounts allowed and taken1541
on sales at the time they are consummated are not included, minus1542
any amount deducted as a bad debt pursuant to section 5739.121 of1543
the Revised Code. "Receipts" does not include the sale price of1544
property returned or services rejected by consumers when the full1545
sale price and tax are refunded either in cash or by credit.1546

       (J) "Place of business" means any location at which a person1547
engages in business.1548

       (K) "Premises" includes any real property or portion thereof1549
upon which any person engages in selling tangible personal1550
property at retail or making retail sales and also includes any1551
real property or portion thereof designated for, or devoted to,1552
use in conjunction with the business engaged in by such person.1553

       (L) "Casual sale" means a sale of an item of tangible1554
personal property that was obtained by the person making the1555
sale, through purchase or otherwise, for the person's own use in1556
this state and was previously subject to any state's taxing1557
jurisdiction on its sale or use, and includes such items acquired1558
for the seller's use that are sold by an auctioneer employed1559
directly by the person for such purpose, provided the location of1560
such sales is not the auctioneer's permanent place of business. As1561
used in this division, "permanent place of business" includes any1562
location where such auctioneer has conducted more than two1563
auctions during the year.1564

       (M) "Hotel" means every establishment kept, used,1565
maintained, advertised, or held out to the public to be a place1566
where sleeping accommodations are offered to guests, in which five1567
or more rooms are used for the accommodation of such guests,1568
whether the rooms are in one or several structures.1569

       (N) "Transient guests" means persons occupying a room or1570
rooms for sleeping accommodations for less than thirty consecutive1571
days.1572

       (O) "Making retail sales" means the effecting of1573
transactions wherein one party is obligated to pay the price and1574
the other party is obligated to provide a service or to transfer1575
title to or possession of the item sold. "Making retail sales"1576
does not include the preliminary acts of promoting or soliciting1577
the retail sales, other than the distribution of printed matter1578
which displays or describes and prices the item offered for sale,1579
nor does it include delivery of a predetermined quantity of1580
tangible personal property or transportation of property or1581
personnel to or from a place where a service is performed,1582
regardless of whether the vendor is a delivery vendor.1583

       (P) "Used directly in the rendition of a public utility1584
service" means that property which is to be incorporated into and1585
will become a part of the consumer's production, transmission,1586
transportation, or distribution system and that retains its1587
classification as tangible personal property after such1588
incorporation; fuel or power used in the production, transmission,1589
transportation, or distribution system; and tangible personal1590
property used in the repair and maintenance of the production,1591
transmission, transportation, or distribution system, including1592
only such motor vehicles as are specially designed and equipped1593
for such use. Tangible personal property and services used1594
primarily in providing highway transportation for hire are not1595
used in providing a public utility service as defined in this1596
division.1597

       (Q) "Refining" means removing or separating a desirable1598
product from raw or contaminated materials by distillation or1599
physical, mechanical, or chemical processes.1600

       (R) "Assembly" and "assembling" mean attaching or fitting1601
together parts to form a product, but do not include packaging a1602
product.1603

       (S) "Manufacturing operation" means a process in which1604
materials are changed, converted, or transformed into a different1605
state or form from which they previously existed and includes1606
refining materials, assembling parts, and preparing raw materials1607
and parts by mixing, measuring, blending, or otherwise committing1608
such materials or parts to the manufacturing process.1609
"Manufacturing operation" does not include packaging.1610

       (T) "Fiscal officer" means, with respect to a regional1611
transit authority, the secretary-treasurer thereof, and with1612
respect to a county that is a transit authority, the fiscal1613
officer of the county transit board if one is appointed pursuant1614
to section 306.03 of the Revised Code or the county auditor if the1615
board of county commissioners operates the county transit system.1616

       (U) "Transit authority" means a regional transit authority1617
created pursuant to section 306.31 of the Revised Code or a county1618
in which a county transit system is created pursuant to section1619
306.01 of the Revised Code. For the purposes of this chapter, a1620
transit authority must extend to at least the entire area of a1621
single county. A transit authority that includes territory in1622
more than one county must include all the area of the most1623
populous county that is a part of such transit authority. County1624
population shall be measured by the most recent census taken by1625
the United States census bureau.1626

       (V) "Legislative authority" means, with respect to a1627
regional transit authority, the board of trustees thereof, and1628
with respect to a county that is a transit authority, the board1629
of county commissioners.1630

       (W) "Territory of the transit authority" means all of the1631
area included within the territorial boundaries of a transit1632
authority as they from time to time exist. Such territorial1633
boundaries must at all times include all the area of a single1634
county or all the area of the most populous county that is a part1635
of such transit authority. County population shall be measured by1636
the most recent census taken by the United States census bureau.1637

       (X) "Providing a service" means providing or furnishing1638
anything described in division (B)(3) of this section for1639
consideration.1640

       (Y)(1)(a) "Automatic data processing" means processing of1641
others' data, including keypunching or similar data entry services1642
together with verification thereof, or providing access to1643
computer equipment for the purpose of processing data.1644

       (b) "Computer services" means providing services consisting1645
of specifying computer hardware configurations and evaluating1646
technical processing characteristics, computer programming, and1647
training of computer programmers and operators, provided in1648
conjunction with and to support the sale, lease, or operation of1649
taxable computer equipment or systems.1650

       (c) "Electronic information services" means providing access1651
to computer equipment by means of telecommunications equipment for1652
the purpose of either of the following:1653

       (i) Examining or acquiring data stored in or accessible to1654
the computer equipment;1655

       (ii) Placing data into the computer equipment to be1656
retrieved by designated recipients with access to the computer1657
equipment.1658

       (d) "Automatic data processing, computer services, or1659
electronic information services" shall not include personal or1660
professional services.1661

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this1662
section, "personal and professional services" means all services1663
other than automatic data processing, computer services, or1664
electronic information services, including but not limited to:1665

       (a) Accounting and legal services such as advice on tax1666
matters, asset management, budgetary matters, quality control,1667
information security, and auditing and any other situation where1668
the service provider receives data or information and studies,1669
alters, analyzes, interprets, or adjusts such material;1670

       (b) Analyzing business policies and procedures;1671

       (c) Identifying management information needs;1672

       (d) Feasibility studies, including economic and technical1673
analysis of existing or potential computer hardware or software1674
needs and alternatives;1675

       (e) Designing policies, procedures, and custom software for1676
collecting business information, and determining how data should1677
be summarized, sequenced, formatted, processed, controlled, and1678
reported so that it will be meaningful to management;1679

       (f) Developing policies and procedures that document how1680
business events and transactions are to be authorized, executed,1681
and controlled;1682

       (g) Testing of business procedures;1683

       (h) Training personnel in business procedure applications;1684

       (i) Providing credit information to users of such1685
information by a consumer reporting agency, as defined in the1686
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C.1687
1681a(f), or as hereafter amended, including but not limited to1688
gathering, organizing, analyzing, recording, and furnishing such1689
information by any oral, written, graphic, or electronic medium;1690

       (j) Providing debt collection services by any oral, written,1691
graphic, or electronic means.1692

       The services listed in divisions (Y)(2)(a) to (j) of this1693
section are not automatic data processing or computer services.1694

       (Z) "Highway transportation for hire" means the1695
transportation of personal property belonging to others for1696
consideration by any of the following:1697

       (1) The holder of a permit or certificate issued by this1698
state or the United States authorizing the holder to engage in1699
transportation of personal property belonging to others for1700
consideration over or on highways, roadways, streets, or any1701
similar public thoroughfare;1702

       (2) A person who engages in the transportation of personal1703
property belonging to others for consideration over or on1704
highways, roadways, streets, or any similar public thoroughfare1705
but who could not have engaged in such transportation on December1706
11, 1985, unless the person was the holder of a permit or1707
certificate of the types described in division (Z)(1) of this1708
section;1709

       (3) A person who leases a motor vehicle to and operates it1710
for a person described by division (Z)(1) or (2) of this section.1711

       (AA) "Telecommunications service" means the transmission of1712
any interactive, two-way electromagnetic communications, including1713
voice, image, data, and information, through the use of any medium1714
such as wires, cables, microwaves, cellular radio, radio waves,1715
light waves, or any combination of those or similar media.1716
"Telecommunications service" includes message toll service even1717
though the vendor provides the message toll service by means of1718
wide area transmission type service or private communications1719
service purchased from another telecommunications service1720
provider, but does not include any of the following:1721

       (1) Sales of incoming or outgoing wide area transmission1722
service or wide area transmission type service, including eight1723
hundred or eight-hundred-type service, to the person contracting1724
for the receipt of that service;1725

       (2) Sales of private communications service to the person1726
contracting for the receipt of that service that entitles the1727
purchaser to exclusive or priority use of a communications channel1728
or group of channels between exchanges;1729

       (3) Sales of telecommunications service by companies subject1730
to the excise tax imposed by Chapter 5727. of the Revised Code;1731

       (4) Sales of telecommunications service to a provider of1732
telecommunications service, including access services, for use in1733
providing telecommunications service;1734

       (5) Value-added nonvoice services in which computer1735
processing applications are used to act on the form, content,1736
code, or protocol of the information to be transmitted;1737

       (6) Transmission of interactive video programming by a cable1738
television system as defined in section 505.90 of the Revised1739
Code;1740

       (7) After July 31, 2002, mobile telecommunications service.1741

       (BB) "Industrial laundry cleaning services" means removing1742
soil or dirt from or supplying towels, linens, or articles of1743
clothing that belong to others and are used in a trade or1744
business.1745

       (CC) "Magazines distributed as controlled circulation1746
publications" means magazines containing at least twenty-four1747
pages, at least twenty-five per cent editorial content, issued at1748
regular intervals four or more times a year, and circulated1749
without charge to the recipient, provided that such magazines are1750
not owned or controlled by individuals or business concerns which1751
conduct such publications as an auxiliary to, and essentially for1752
the advancement of the main business or calling of, those who own1753
or control them.1754

       (DD) "Landscaping and lawn care service" means the services1755
of planting, seeding, sodding, removing, cutting, trimming,1756
pruning, mulching, aerating, applying chemicals, watering,1757
fertilizing, and providing similar services to establish, promote,1758
or control the growth of trees, shrubs, flowers, grass, ground1759
cover, and other flora, or otherwise maintaining a lawn or1760
landscape grown or maintained by the owner for ornamentation or1761
other nonagricultural purpose. However, "landscaping and lawn1762
care service" does not include the providing of such services by a1763
person who has less than five thousand dollars in sales of such1764
services during the calendar year.1765

       (EE) "Private investigation and security service" means the1766
performance of any activity for which the provider of such service1767
is required to be licensed pursuant to Chapter 4749. of the1768
Revised Code, or would be required to be so licensed in performing1769
such services in this state, and also includes the services of1770
conducting polygraph examinations and of monitoring or overseeing1771
the activities on or in, or the condition of, the consumer's home,1772
business, or other facility by means of electronic or similar1773
monitoring devices. "Private investigation and security service"1774
does not include special duty services provided by off-duty police1775
officers, deputy sheriffs, and other peace officers regularly1776
employed by the state or a political subdivision.1777

       (FF) "Information services" means providing conversation,1778
giving consultation or advice, playing or making a voice or other1779
recording, making or keeping a record of the number of callers,1780
and any other service provided to a consumer by means of a nine1781
hundred telephone call, except when the nine hundred telephone1782
call is the means by which the consumer makes a contribution to a1783
recognized charity.1784

       (GG) "Research and development" means designing, creating,1785
or formulating new or enhanced products, equipment, or1786
manufacturing processes, and conducting scientific or1787
technological inquiry and experimentation in the physical sciences1788
with the goal of increasing scientific knowledge which may reveal1789
the bases for new or enhanced products, equipment, or1790
manufacturing processes.1791

       (HH) "Qualified research and development equipment" means1792
capitalized tangible personal property, and leased personal1793
property that would be capitalized if purchased, used by a person1794
primarily to perform research and development. Tangible personal1795
property primarily used in testing, as defined in division (A)(4)1796
of section 5739.011 of the Revised Code, or used for recording or1797
storing test results, is not qualified research and development1798
equipment unless such property is primarily used by the consumer1799
in testing the product, equipment, or manufacturing process being1800
created, designed, or formulated by the consumer in the research1801
and development activity or in recording or storing such test1802
results.1803

       (II) "Building maintenance and janitorial service" means1804
cleaning the interior or exterior of a building and any tangible1805
personal property located therein or thereon, including any1806
services incidental to such cleaning for which no separate charge1807
is made. However, "building maintenance and janitorial service"1808
does not include the providing of such service by a person who has1809
less than five thousand dollars in sales of such service during1810
the calendar year.1811

       (JJ) "Employment service" means providing or supplying1812
personnel, on a temporary or long-term basis, to perform work or1813
labor under the supervision or control of another, when the1814
personnel so supplied receive their wages, salary, or other1815
compensation from the provider of the service. "Employment1816
service" does not include:1817

       (1) Acting as a contractor or subcontractor, where the1818
personnel performing the work are not under the direct control of1819
the purchaser.1820

       (2) Medical and health care services.1821

       (3) Supplying personnel to a purchaser pursuant to a1822
contract of at least one year between the service provider and the1823
purchaser that specifies that each employee covered under the1824
contract is assigned to the purchaser on a permanent basis.1825

       (4) Transactions between members of an affiliated group, as1826
defined in division (B)(3)(e) of this section.1827

       (KK) "Employment placement service" means locating or1828
finding employment for a person or finding or locating an employee1829
to fill an available position.1830

       (LL) "Exterminating service" means eradicating or attempting1831
to eradicate vermin infestations from a building or structure, or1832
the area surrounding a building or structure, and includes1833
activities to inspect, detect, or prevent vermin infestation of a1834
building or structure.1835

       (MM) "Physical fitness facility service" means all1836
transactions by which a membership is granted, maintained, or1837
renewed, including initiation fees, membership dues, renewal fees,1838
monthly minimum fees, and other similar fees and dues, by a1839
physical fitness facility such as an athletic club, health spa, or1840
gymnasium, which entitles the member to use the facility for1841
physical exercise.1842

       (NN) "Recreation and sports club service" means all1843
transactions by which a membership is granted, maintained, or1844
renewed, including initiation fees, membership dues, renewal fees,1845
monthly minimum fees, and other similar fees and dues, by a1846
recreation and sports club, which entitles the member to use the1847
facilities of the organization. "Recreation and sports club"1848
means an organization that has ownership of, or controls or leases1849
on a continuing, long-term basis, the facilities used by its1850
members and includes an aviation club, gun or shooting club, yacht1851
club, card club, swimming club, tennis club, golf club, country1852
club, riding club, amateur sports club, or similar organization.1853

       (OO) "Livestock" means farm animals commonly raised for food1854
or food production, and includes but is not limited to cattle,1855
sheep, goats, swine, and poultry. "Livestock" does not include1856
invertebrates, fish, amphibians, reptiles, horses, domestic pets,1857
animals for use in laboratories or for exhibition, or other1858
animals not commonly raised for food or food production.1859

       (PP) "Livestock structure" means a building or structure1860
used exclusively for the housing, raising, feeding, or sheltering1861
of livestock, and includes feed storage or handling structures and1862
structures for livestock waste handling.1863

       (QQ) "Horticulture" means the growing, cultivation, and1864
production of flowers, fruits, herbs, vegetables, sod, mushrooms,1865
and nursery stock. As used in this division, "nursery stock" has1866
the same meaning as in section 927.51 of the Revised Code.1867

       (RR) "Horticulture structure" means a building or structure1868
used exclusively for the commercial growing, raising, or1869
overwintering of horticultural products, and includes the area1870
used for stocking, storing, and packing horticultural products1871
when done in conjunction with the production of those products.1872

       (SS) "Newspaper" means an unbound publication bearing a1873
title or name that is regularly published, at least as frequently1874
as biweekly, and distributed from a fixed place of business to the1875
public in a specific geographic area, and that contains a1876
substantial amount of news matter of international, national, or1877
local events of interest to the general public.1878

       (TT) "Professional racing team" means a person that employs1879
at least twenty full-time employees for the purpose of conducting1880
a motor vehicle racing business for profit. The person must1881
conduct the business with the purpose of racing one or more motor1882
racing vehicles in at least ten competitive professional racing1883
events each year that comprise all or part of a motor racing1884
series sanctioned by one or more motor racing sanctioning1885
organizations. A "motor racing vehicle" means a vehicle for which1886
the chassis, engine, and parts are designed exclusively for motor1887
racing, and does not include a stock or production model vehicle1888
that may be modified for use in racing. For the purposes of this1889
division:1890

       (1) A "competitive professional racing event" is a motor1891
vehicle racing event sanctioned by one or more motor racing1892
sanctioning organizations, at which aggregate cash prizes in1893
excess of eight hundred thousand dollars are awarded to the1894
competitors.1895

       (2) "Full-time employee" means an individual who is employed1896
for consideration for thirty-five or more hours a week, or who1897
renders any other standard of service generally accepted by custom1898
or specified by contract as full-time employment.1899

       (UU)(1) "Prepaid authorization number" means a numeric or1900
alphanumeric combination that represents a prepaid account that1901
can be used by the account holder solely to obtain1902
telecommunications service, and includes any renewals or increases1903
in the prepaid account.1904

       (2) "Prepaid telephone calling card" means a tangible item1905
that contains a prepaid authorization number that can be used1906
solely to obtain telecommunications service, and includes any1907
renewals or increases in the prepaid account.1908

       (VV) "Mobile telecommunications service" has the same1909
meaning as in the Mobile Telecommunications Sourcing Act, Pub. L.1910
No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended.1911

       (WW) "Certified service provider" has the same meaning as in1912
section 5740.01 of the Revised Code.1913

       Sec. 5739.02.  For the purpose of providing revenue with1914
which to meet the needs of the state, for the use of the general1915
revenue fund of the state, for the purpose of securing a thorough1916
and efficient system of common schools throughout the state, for1917
the purpose of affording revenues, in addition to those from1918
general property taxes, permitted under constitutional1919
limitations, and from other sources, for the support of local1920
governmental functions, and for the purpose of reimbursing the1921
state for the expense of administering this chapter, an excise tax1922
is hereby levied on each retail sale made in this state.1923

       (A) The tax shall be collected pursuant to the schedules in1924
section 5739.025 of the Revised Code.1925

       The tax applies and is collectible when the sale is made,1926
regardless of the time when the price is paid or delivered.1927

       In the case of a sale, the price of which consists in whole1928
or in part of rentals for the use of the thing transferred, the1929
tax, as regards such rentals, shall be measured by the1930
installments thereof.1931

       In the case of a sale of a service defined under division1932
(MM) or (NN) of section 5739.01 of the Revised Code, the price of1933
which consists in whole or in part of a membership for the receipt1934
of the benefit of the service, the tax applicable to the sale1935
shall be measured by the installments thereof.1936

       (B) The tax does not apply to the following:1937

       (1) Sales to the state or any of its political subdivisions,1938
or to any other state or its political subdivisions if the laws of1939
that state exempt from taxation sales made to this state and its1940
political subdivisions;1941

       (2) Sales of food for human consumption off the premises1942
where sold;1943

       (3) Sales of food sold to students only in a cafeteria,1944
dormitory, fraternity, or sorority maintained in a private,1945
public, or parochial school, college, or university;1946

       (4) Sales of newspapers, and of magazine subscriptions1947
shipped by second class mail, and sales or transfers of magazines1948
distributed as controlled circulation publications;1949

       (5) The furnishing, preparing, or serving of meals without1950
charge by an employer to an employee provided the employer records1951
the meals as part compensation for services performed or work1952
done;1953

       (6) Sales of motor fuel upon receipt, use, distribution, or1954
sale of which in this state a tax is imposed by the law of this1955
state, but this exemption shall not apply to the sale of motor1956
fuel on which a refund of the tax is allowable under section1957
5735.14 of the Revised Code; and the tax commissioner may deduct1958
the amount of tax levied by this section applicable to the price1959
of motor fuel when granting a refund of motor fuel tax pursuant to1960
section 5735.14 of the Revised Code and shall cause the amount1961
deducted to be paid into the general revenue fund of this state;1962

       (7) Sales of natural gas by a natural gas company, of water1963
by a water-works company, or of steam by a heating company, if in1964
each case the thing sold is delivered to consumers through pipes1965
or conduits, and all sales of communications services by a1966
telephone or telegraph company, all terms as defined in section1967
5727.01 of the Revised Code;1968

       (8) Casual sales by a person, or auctioneer employed1969
directly by the person to conduct such sales, except as to such1970
sales of motor vehicles, watercraft or outboard motors required to1971
be titled under section 1548.06 of the Revised Code, watercraft1972
documented with the United States coast guard, snowmobiles, and1973
all-purpose vehicles as defined in section 4519.01 of the Revised1974
Code;1975

       (9) Sales of services or tangible personal property, other1976
than motor vehicles, mobile homes, and manufactured homes, by1977
churches, organizations exempt from taxation under section1978
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit1979
organizations operated exclusively for charitable purposes as1980
defined in division (B)(12) of this section, provided that the1981
number of days on which such tangible personal property or1982
services, other than items never subject to the tax, are sold does1983
not exceed six in any calendar year. If the number of days on1984
which such sales are made exceeds six in any calendar year, the1985
church or organization shall be considered to be engaged in1986
business and all subsequent sales by it shall be subject to the1987
tax. In counting the number of days, all sales by groups within a1988
church or within an organization shall be considered to be sales1989
of that church or organization, except that sales made by separate1990
student clubs and other groups of students of a primary or1991
secondary school, and sales made by a parent-teacher association,1992
booster group, or similar organization that raises money to1993
support or fund curricular or extracurricular activities of a1994
primary or secondary school, shall not be considered to be sales1995
of such school, and sales by each such club, group, association,1996
or organization shall be counted separately for purposes of the1997
six-day limitation. This division does not apply to sales by a1998
noncommercial educational radio or television broadcasting1999
station.2000

       (10) Sales not within the taxing power of this state under2001
the Constitution of the United States;2002

       (11) The transportation of persons or property, unless the2003
transportation is by a private investigation and security service;2004

       (12) Sales of tangible personal property or services to2005
churches, to organizations exempt from taxation under section2006
501(c)(3) of the Internal Revenue Code of 1986, and to any other2007
nonprofit organizations operated exclusively for charitable2008
purposes in this state, no part of the net income of which inures2009
to the benefit of any private shareholder or individual, and no2010
substantial part of the activities of which consists of carrying2011
on propaganda or otherwise attempting to influence legislation;2012
sales to offices administering one or more homes for the aged or2013
one or more hospital facilities exempt under section 140.08 of the2014
Revised Code; and sales to organizations described in division (D)2015
of section 5709.12 of the Revised Code.2016

       "Charitable purposes" means the relief of poverty; the2017
improvement of health through the alleviation of illness, disease,2018
or injury; the operation of an organization exclusively for the2019
provision of professional, laundry, printing, and purchasing2020
services to hospitals or charitable institutions; the operation of2021
a home for the aged, as defined in section 5701.13 of the Revised2022
Code; the operation of a radio or television broadcasting station2023
that is licensed by the federal communications commission as a2024
noncommercial educational radio or television station; the2025
operation of a nonprofit animal adoption service or a county2026
humane society; the promotion of education by an institution of2027
learning that maintains a faculty of qualified instructors,2028
teaches regular continuous courses of study, and confers a2029
recognized diploma upon completion of a specific curriculum; the2030
operation of a parent-teacher association, booster group, or2031
similar organization primarily engaged in the promotion and2032
support of the curricular or extracurricular activities of a2033
primary or secondary school; the operation of a community or area2034
center in which presentations in music, dramatics, the arts, and2035
related fields are made in order to foster public interest and2036
education therein; the production of performances in music,2037
dramatics, and the arts; or the promotion of education by an2038
organization engaged in carrying on research in, or the2039
dissemination of, scientific and technological knowledge and2040
information primarily for the public.2041

       Nothing in this division shall be deemed to exempt sales to2042
any organization for use in the operation or carrying on of a2043
trade or business, or sales to a home for the aged for use in the2044
operation of independent living facilities as defined in division2045
(A) of section 5709.12 of the Revised Code.2046

       (13) Building and construction materials and services sold2047
to construction contractors for incorporation into a structure or2048
improvement to real property under a construction contract with2049
this state or a political subdivision thereof, or with the United2050
States government or any of its agencies; building and2051
construction materials and services sold to construction2052
contractors for incorporation into a structure or improvement to2053
real property that are accepted for ownership by this state or any2054
of its political subdivisions, or by the United States government2055
or any of its agencies at the time of completion of such2056
structures or improvements; building and construction materials2057
sold to construction contractors for incorporation into a2058
horticulture structure or livestock structure for a person engaged2059
in the business of horticulture or producing livestock; building2060
materials and services sold to a construction contractor for2061
incorporation into a house of public worship or religious2062
education, or a building used exclusively for charitable purposes2063
under a construction contract with an organization whose purpose2064
is as described in division (B)(12) of this section; building2065
materials and services sold to a construction contractor for2066
incorporation into a building under a construction contract with2067
an organization exempt from taxation under section 501(c)(3) of2068
the Internal Revenue Code of 1986 when the building is to be used2069
exclusively for the organization's exempt purposes; building and2070
construction materials sold for incorporation into the original2071
construction of a sports facility under section 307.696 of the2072
Revised Code; and building and construction materials and services2073
sold to a construction contractor for incorporation into real2074
property outside this state if such materials and services, when2075
sold to a construction contractor in the state in which the real2076
property is located for incorporation into real property in that2077
state, would be exempt from a tax on sales levied by that state;2078

       (14) Sales of ships or vessels or rail rolling stock used or2079
to be used principally in interstate or foreign commerce, and2080
repairs, alterations, fuel, and lubricants for such ships or2081
vessels or rail rolling stock;2082

       (15) Sales to persons engaged in any of the activities2083
mentioned in division (E)(2) or (9) of section 5739.01 of the2084
Revised Code, to persons engaged in making retail sales, or to2085
persons who purchase for sale from a manufacturer tangible2086
personal property that was produced by the manufacturer in2087
accordance with specific designs provided by the purchaser, of2088
packages, including material, labels, and parts for packages, and2089
of machinery, equipment, and material for use primarily in2090
packaging tangible personal property produced for sale, including2091
any machinery, equipment, and supplies used to make labels or2092
packages, to prepare packages or products for labeling, or to2093
label packages or products, by or on the order of the person doing2094
the packaging, or sold at retail. "Packages" includes bags,2095
baskets, cartons, crates, boxes, cans, bottles, bindings,2096
wrappings, and other similar devices and containers, and2097
"packaging" means placing therein.2098

       (16) Sales of food to persons using food stamp benefits to2099
purchase the food. As used in division (B)(16) of this section,2100
"food" has the same meaning as in the "Food Stamp Act of 1977," 912101
Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations2102
adopted pursuant to that act.2103

       (17) Sales to persons engaged in farming, agriculture,2104
horticulture, or floriculture, of tangible personal property for2105
use or consumption directly in the production by farming,2106
agriculture, horticulture, or floriculture of other tangible2107
personal property for use or consumption directly in the2108
production of tangible personal property for sale by farming,2109
agriculture, horticulture, or floriculture; or material and parts2110
for incorporation into any such tangible personal property for use2111
or consumption in production; and of tangible personal property2112
for such use or consumption in the conditioning or holding of2113
products produced by and for such use, consumption, or sale by2114
persons engaged in farming, agriculture, horticulture, or2115
floriculture, except where such property is incorporated into real2116
property;2117

       (18) Sales of drugs dispensed by a licensed pharmacist upon2118
the order of a licensed health professional authorized to2119
prescribe drugs to a human being, as the term "licensed health2120
professional authorized to prescribe drugs" is defined in section2121
4729.01 of the Revised Code; insulin as recognized in the official2122
United States pharmacopoeia; urine and blood testing materials2123
when used by diabetics or persons with hypoglycemia to test for2124
glucose or acetone; hypodermic syringes and needles when used by2125
diabetics for insulin injections; epoetin alfa when purchased for2126
use in the treatment of persons with end-stage renal disease;2127
hospital beds when purchased for use by persons with medical2128
problems for medical purposes; and oxygen and oxygen-dispensing2129
equipment when purchased for use by persons with medical problems2130
for medical purposes;2131

       (19)(a) Sales of artificial limbs or portion thereof, breast2132
prostheses, and other prosthetic devices for humans; braces or2133
other devices for supporting weakened or nonfunctioning parts of2134
the human body; crutches or other devices to aid human2135
perambulation; and items of tangible personal property used to2136
supplement impaired functions of the human body such as2137
respiration, hearing, or elimination;2138

       (b) Sales of wheelchairs; items incorporated into or used in2139
conjunction with a motor vehicle for the purpose of transporting2140
wheelchairs, other than transportation conducted in connection2141
with the sale or delivery of wheelchairs; and items incorporated2142
into or used in conjunction with a motor vehicle that are2143
specifically designed to assist a person with a disability to2144
access or operate the motor vehicle. As used in this division,2145
"person with a disability" means any person who has lost the use2146
of one or both legs or one or both arms, who is blind, deaf, or2147
disabled to the extent that the person is unable to move about2148
without the aid of crutches or a wheelchair, or whose mobility is2149
restricted by a permanent cardiovascular, pulmonary, or other2150
disabling condition.2151

       (c) No exemption under this division shall be allowed for2152
nonprescription drugs, medicines, or remedies; items or devices2153
used to supplement vision; items or devices whose function is2154
solely or primarily cosmetic; or physical fitness equipment. This2155
division does not apply to sales to a physician or medical2156
facility for use in the treatment of a patient.2157

       (20) Sales of emergency and fire protection vehicles and2158
equipment to nonprofit organizations for use solely in providing2159
fire protection and emergency services, including trauma care and2160
emergency medical services, for political subdivisions of the2161
state;2162

       (21) Sales of tangible personal property manufactured in2163
this state, if sold by the manufacturer in this state to a2164
retailer for use in the retail business of the retailer outside of2165
this state and if possession is taken from the manufacturer by the2166
purchaser within this state for the sole purpose of immediately2167
removing the same from this state in a vehicle owned by the2168
purchaser;2169

       (22) Sales of services provided by the state or any of its2170
political subdivisions, agencies, instrumentalities, institutions,2171
or authorities, or by governmental entities of the state or any of2172
its political subdivisions, agencies, instrumentalities,2173
institutions, or authorities;2174

       (23) Sales of motor vehicles to nonresidents of this state2175
upon the presentation of an affidavit executed in this state by2176
the nonresident purchaser affirming that the purchaser is a2177
nonresident of this state, that possession of the motor vehicle is2178
taken in this state for the sole purpose of immediately removing2179
it from this state, that the motor vehicle will be permanently2180
titled and registered in another state, and that the motor vehicle2181
will not be used in this state;2182

       (24) Sales to persons engaged in the preparation of eggs for2183
sale of tangible personal property used or consumed directly in2184
such preparation, including such tangible personal property used2185
for cleaning, sanitizing, preserving, grading, sorting, and2186
classifying by size; packages, including material and parts for2187
packages, and machinery, equipment, and material for use in2188
packaging eggs for sale; and handling and transportation equipment2189
and parts therefor, except motor vehicles licensed to operate on2190
public highways, used in intraplant or interplant transfers or2191
shipment of eggs in the process of preparation for sale, when the2192
plant or plants within or between which such transfers or2193
shipments occur are operated by the same person. "Packages"2194
includes containers, cases, baskets, flats, fillers, filler flats,2195
cartons, closure materials, labels, and labeling materials, and2196
"packaging" means placing therein.2197

       (25)(a) Sales of water to a consumer for residential use,2198
except the sale of bottled water, distilled water, mineral water,2199
carbonated water, or ice;2200

       (b) Sales of water by a nonprofit corporation engaged2201
exclusively in the treatment, distribution, and sale of water to2202
consumers, if such water is delivered to consumers through pipes2203
or tubing.2204

       (26) Fees charged for inspection or reinspection of motor2205
vehicles under section 3704.14 of the Revised Code;2206

       (27) Sales to persons licensed to conduct a food service2207
operation pursuant to section 3717.43 of the Revised Code, of2208
tangible personal property primarily used directly for the2209
following:2210

       (a) To prepare food for human consumption for sale;2211

       (b) To preserve food that has been or will be prepared for2212
human consumption for sale by the food service operator, not2213
including tangible personal property used to display food for2214
selection by the consumer;2215

       (c) To clean tangible personal property used to prepare or2216
serve food for human consumption for sale.2217

       (28) Sales of animals by nonprofit animal adoption services2218
or county humane societies;2219

       (29) Sales of services to a corporation described in2220
division (A) of section 5709.72 of the Revised Code, and sales of2221
tangible personal property that qualifies for exemption from2222
taxation under section 5709.72 of the Revised Code;2223

       (30) Sales and installation of agricultural land tile, as2224
defined in division (B)(5)(a) of section 5739.01 of the Revised2225
Code;2226

       (31) Sales and erection or installation of portable grain2227
bins, as defined in division (B)(5)(b) of section 5739.01 of the2228
Revised Code;2229

       (32) The sale, lease, repair, and maintenance of, parts for,2230
or items attached to or incorporated in, motor vehicles that are2231
primarily used for transporting tangible personal property by a2232
person engaged in highway transportation for hire;2233

       (33) Sales to the state headquarters of any veterans'2234
organization in Ohio that is either incorporated and issued a2235
charter by the congress of the United States or is recognized by2236
the United States veterans administration, for use by the2237
headquarters;2238

       (34) Sales to a telecommunications service vendor of2239
tangible personal property and services used directly and2240
primarily in transmitting, receiving, switching, or recording any2241
interactive, two-way electromagnetic communications, including2242
voice, image, data, and information, through the use of any2243
medium, including, but not limited to, poles, wires, cables,2244
switching equipment, computers, and record storage devices and2245
media, and component parts for the tangible personal property. 2246
The exemption provided in division (B)(34) of this section shall2247
be in lieu of all other exceptions under division (E)(2) of2248
section 5739.01 of the Revised Code to which a telecommunications2249
service vendor may otherwise be entitled based upon the use of the2250
thing purchased in providing the telecommunications service.2251

       (35) Sales of investment metal bullion and investment coins.2252
"Investment metal bullion" means any elementary precious metal2253
that has been put through a process of smelting or refining,2254
including, but not limited to, gold, silver, platinum, and2255
palladium, and which is in such state or condition that its value2256
depends upon its content and not upon its form. "Investment metal2257
bullion" does not include fabricated precious metal that has been2258
processed or manufactured for one or more specific and customary2259
industrial, professional, or artistic uses. "Investment coins"2260
means numismatic coins or other forms of money and legal tender2261
manufactured of gold, silver, platinum, palladium, or other metal2262
under the laws of the United States or any foreign nation with a2263
fair market value greater than any statutory or nominal value of2264
such coins.2265

       (36)(a) Sales where the purpose of the consumer is to use or2266
consume the things transferred in making retail sales and2267
consisting of newspaper inserts, catalogues, coupons, flyers, gift2268
certificates, or other advertising material that prices and2269
describes tangible personal property offered for retail sale.2270

       (b) Sales to direct marketing vendors of preliminary2271
materials such as photographs, artwork, and typesetting that will2272
be used in printing advertising material; of printed matter that2273
offers free merchandise or chances to win sweepstake prizes and2274
that is mailed to potential customers with advertising material2275
described in division (B)(36)(a) of this section; and of equipment2276
such as telephones, computers, facsimile machines, and similar2277
tangible personal property primarily used to accept orders for2278
direct marketing retail sales.2279

       (c) Sales of automatic food vending machines that preserve2280
food with a shelf life of forty-five days or less by refrigeration2281
and dispense it to the consumer.2282

       For purposes of division (B)(36) of this section, "direct2283
marketing" means the method of selling where consumers order2284
tangible personal property by United States mail, delivery2285
service, or telecommunication and the vendor delivers or ships the2286
tangible personal property sold to the consumer from a warehouse,2287
catalogue distribution center, or similar fulfillment facility by2288
means of the United States mail, delivery service, or common2289
carrier.2290

       (37) Sales to a person engaged in the business of2291
horticulture or producing livestock of materials to be2292
incorporated into a horticulture structure or livestock structure;2293

       (38) The sale of a motor vehicle that is used exclusively2294
for a vanpool ridesharing arrangement to persons participating in2295
the vanpool ridesharing arrangement when the vendor is selling the2296
vehicle pursuant to a contract between the vendor and the2297
department of transportation;2298

       (39) Sales of personal computers, computer monitors,2299
computer keyboards, modems, and other peripheral computer2300
equipment to an individual who is licensed or certified to teach2301
in an elementary or a secondary school in this state for use by2302
that individual in preparation for teaching elementary or2303
secondary school students;2304

       (40) Sales to a professional racing team of any of the2305
following:2306

       (a) Motor racing vehicles;2307

       (b) Repair services for motor racing vehicles;2308

       (c) Items of property that are attached to or incorporated2309
in motor racing vehicles, including engines, chassis, and all2310
other components of the vehicles, and all spare, replacement, and2311
rebuilt parts or components of the vehicles; except not including2312
tires, consumable fluids, paint, and accessories consisting of2313
instrumentation sensors and related items added to the vehicle to2314
collect and transmit data by means of telemetry and other forms of2315
communication.2316

       (41) Sales of used manufactured homes and used mobile homes,2317
as defined in section 5739.0210 of the Revised Code, made on or2318
after January 1, 2000;2319

       (42) Sales of tangible personal property and services to a2320
provider of electricity used or consumed directly and primarily in2321
generating, transmitting, or distributing electricity for use by2322
others, including property that is or is to be incorporated into2323
and will become a part of the consumer's production, transmission,2324
or distribution system and that retains its classification as2325
tangible personal property after incorporation; fuel or power used2326
in the production, transmission, or distribution of electricity;2327
and tangible personal property and services used in the repair and2328
maintenance of the production, transmission, or distribution2329
system, including only those motor vehicles as are specially2330
designed and equipped for such use. The exemption provided in2331
this division shall be in lieu of all other exceptions in division2332
(E)(2) of section 5739.01 of the Revised Code to which a provider2333
of electricity may otherwise be entitled based on the use of the2334
tangible personal property or service purchased in generating,2335
transmitting, or distributing electricity.2336

       For the purpose of the proper administration of this chapter,2337
and to prevent the evasion of the tax, it is presumed that all2338
sales made in this state are subject to the tax until the contrary2339
is established.2340

       As used in this section, except in division (B)(16) of this2341
section, "food" includes cereals and cereal products, milk and2342
milk products including ice cream, meat and meat products, fish2343
and fish products, eggs and egg products, vegetables and vegetable2344
products, fruits, fruit products, and pure fruit juices,2345
condiments, sugar and sugar products, coffee and coffee2346
substitutes, tea, and cocoa and cocoa products. It does not2347
include: spirituous or malt liquors; soft drinks; sodas and2348
beverages that are ordinarily dispensed at bars and soda fountains2349
or in connection therewith, other than coffee, tea, and cocoa;2350
root beer and root beer extracts; malt and malt extracts; mineral2351
oils, cod liver oils, and halibut liver oil; medicines, including2352
tonics, vitamin preparations, and other products sold primarily2353
for their medicinal properties; and water, including mineral,2354
bottled, and carbonated waters, and ice.2355

       (C) The levy of an excise tax on transactions by which2356
lodging by a hotel is or is to be furnished to transient guests2357
pursuant to this section and division (B) of section 5739.01 of2358
the Revised Code does not prevent any of the following:2359

       (1) A municipal corporation or township from levying an2360
excise tax for any lawful purpose not to exceed three per cent on2361
transactions by which lodging by a hotel is or is to be furnished2362
to transient guests in addition to the tax levied by this section.2363
If a municipal corporation or township repeals a tax imposed under2364
division (C)(1) of this section and a county in which the2365
municipal corporation or township has territory has a tax imposed2366
under division (C) of section 5739.024 of the Revised Code in2367
effect, the municipal corporation or township may not reimpose its2368
tax as long as that county tax remains in effect. A municipal2369
corporation or township in which a tax is levied under division2370
(B)(2) of section 351.021 of the Revised Code may not increase the2371
rate of its tax levied under division (C)(1) of this section to2372
any rate that would cause the total taxes levied under both of2373
those divisions to exceed three per cent on any lodging2374
transaction within the municipal corporation or township.2375

       (2) A municipal corporation or a township from levying an2376
additional excise tax not to exceed three per cent on such2377
transactions pursuant to division (B) of section 5739.024 of the2378
Revised Code. Such tax is in addition to any tax imposed under2379
division (C)(1) of this section.2380

       (3) A county from levying an excise tax pursuant to division2381
(A) of section 5739.024 of the Revised Code.2382

       (4) A county from levying an excise tax not to exceed three2383
per cent of such transactions pursuant to division (C) of section2384
5739.024 of the Revised Code. Such a tax is in addition to any2385
tax imposed under division (C)(3) of this section.2386

       (5) A convention facilities authority, as defined in2387
division (A) of section 351.01 of the Revised Code, from levying2388
the excise taxes provided for in division (B) of section 351.0212389
of the Revised Code.2390

       (6) A county from levying an excise tax not to exceed one2391
and one-half per cent of such transactions pursuant to division2392
(D) of section 5739.024 of the Revised Code. Such tax is in2393
addition to any tax imposed under division (C)(3) or (4) of this2394
section.2395

       (7) A county from levying an excise tax not to exceed one2396
and one-half per cent of such transactions pursuant to division2397
(E) of section 5739.024 of the Revised Code. Such a tax is in2398
addition to any tax imposed under division (C)(3), (4), or (6) of2399
this section.2400

       (D) The levy of this tax on retail sales of recreation and2401
sports club service shall not prevent a municipal corporation from2402
levying any tax on recreation and sports club dues or on any2403
income generated by recreation and sports club dues.2404

       Sec. 5739.021.  (A) For the purpose of providing additional2405
general revenues for the county or supporting criminal and2406
administrative justice services in the county, or both, and to pay2407
the expenses of administering such levy, any county may levy a tax2408
at the rate of not more than one per cent at any multiple of2409
one-fourth of one per cent upon every retail sale made in the2410
county, except sales of watercraft and outboard motors required to2411
be titled pursuant to Chapter 1548. of the Revised Code and sales2412
of motor vehicles, and may increase the rate of an existing tax to2413
not more than one per cent at any multiple of one-fourth of one2414
per cent.2415

       The tax shall be levied and the rate increased pursuant to a2416
resolution of the board of county commissioners. The resolution2417
shall state the purpose for which the tax is to be levied and the2418
number of years for which the tax is to be levied, or that it is2419
for a continuing period of time. If the tax is to be levied for2420
the purpose of providing additional general revenues and for the2421
purpose of supporting criminal and administrative justice2422
services, the resolution shall state the rate or amount of the tax2423
to be apportioned to each such purpose. The rate or amount may be2424
different for each year the tax is to be levied, but the rates or2425
amounts actually apportioned each year shall not be different from2426
that stated in the resolution for that year. If the resolution is2427
adopted as an emergency measure necessary for the immediate2428
preservation of the public peace, health, or safety, it must2429
receive an affirmative vote of all of the members of the board of2430
county commissioners and shall state the reasons for such2431
necessity. A certified copy of the resolution shall be delivered2432
to the tax commissioner either personally or by certified mail not2433
later than the sixtieth day prior to the date on which the tax is2434
to become effective. Prior2435

       Prior to the adoption of any resolution under this section,2436
the board of county commissioners shall conduct two public2437
hearings on the resolution, the second hearing to be not less than2438
three nor more than ten days after the first. Notice of the date,2439
time, and place of the hearings shall be given by publication in a2440
newspaper of general circulation in the county once a week on the2441
same day of the week for two consecutive weeks, the second2442
publication being not less than ten nor more than thirty days2443
prior to the first hearing. If2444

       Except as provided in division (B)(3) of this section, the2445
resolution shall become effective on the first day of a calendar2446
quarter following the expiration of sixty days from the date of2447
its adoption, subject to a referendum as provided in sections2448
305.31 to 305.41 of the Revised Code.2449

        If a petition for a referendum is filed pursuant to2450
sections 305.31 to 305.41 of the Revised Code, the county auditor2451
with whom the petition was filed shall, within five days, notify2452
the board of county commissioners and the tax commissioner of the2453
filing of the petition by certified mail. If the board of2454
elections with which the petition was filed declares the petition2455
invalid, the board of elections, within five days, shall notify2456
the board of county commissioners and the tax commissioner of that2457
declaration by certified mail. If the board of elections declares2458
the petition is declared to be invalid, the effective date of the2459
tax or increased rate of tax levied by this section shall be the2460
first day of the montha calendar quarter following the expiration2461
of thirtysixty days from the date the petition was declared2462
invalid by the board of elections.2463

       (B)(1) A resolution levying or increasing the rate of a sales2464
tax pursuant to this section shall become effective on the first2465
day of the month specified in the resolution but not earlier than2466
the first day of the month following the expiration of sixty days2467
from the date of its adoption, subject to a referendum as provided2468
in sections 305.31 to 305.41 of the Revised Code, unless the2469
resolution is adopted as an emergency measure necessary for the2470
immediate preservation of the public peace, health, or safety, in2471
which case it shall go into effect on the first day of the month2472
following the expiration of thirty days from the date of notice by2473
the board of county commissioners to the tax commissioner of its2474
adoption. The emergency measure shall receive an affirmative vote2475
of all of the members of the board of county commissioners and2476
shall state the reasons for such necessity.2477

       (2)(a) A resolution that is not adopted as an emergency2478
measure may direct the board of elections to submit the question2479
of levying the tax or increasing the rate of tax to the electors2480
of the county at a special election held on the date specified by2481
the board of county commissioners in the resolution, provided that2482
the election occurs not less than seventy-five days after a2483
certified copy of such resolution is transmitted to the board of2484
elections and the election is not held in February or August of2485
any year. Upon transmission of the resolution to the board of2486
elections, the board of county commissioners shall notify the tax2487
commissioner in writing of the levy question to be submitted to2488
the electors. No resolution adopted under this division (B)(2)(a)2489
of this section shall go into effect unless approved by a majority2490
of those voting upon it, and not until, except as provided in2491
division (B)(3) of this section, shall become effective on the2492
first day of the montha calendar quarter following the expiration2493
of thirtysixty days from the date of notice to the tax2494
commissioner by the board of elections of the affirmative vote.2495

       (b)(2) A resolution that is adopted as an emergency measure2496
shall go into effect as provided in division (B)(1)(A) of this2497
section, but may direct the board of elections to submit the2498
question of repealing the tax or increase in the rate of the tax2499
to the electors of the county at the next general election in the2500
county occurring not less than seventy-five days after a certifed2501
certified copy of the resolution is transmitted to the board of2502
elections. Upon transmission of the resolution to the board of2503
elections, the board of county commissioners shall notify the tax2504
commissioner in writing of the levy question to be submitted to2505
the electors. The ballot question shall be the same as that2506
prescribed in section 5739.022 of the Revised Code. The board of2507
elections shall notify the board of county commissioners and the2508
tax commissioner of the result of the election immediately after2509
the result has been declared. If a majority of the qualified2510
electors voting on the question of repealing the tax or increase2511
in the rate of the tax vote for repeal of the tax or repeal of the2512
increase, the board of county commissioners, on the first day of2513
the montha calendar quarter following the expiration of thirty2514
sixty days after the date it received notice of the result of the2515
election, shall, in the case of a repeal of the tax, cease to levy2516
the tax, or, in the case of a repeal of an increase in the rate of2517
the tax, cease to levy the increased rate and levy the tax at the2518
rate at which it was imposed immediately prior to the increase in2519
rate.2520

       (3) If a vendor that is registered with the central2521
electronic registration system provided for in section 5740.05 of2522
the Revised Code makes a sale in this state by printed catalog2523
and the consumer computed the tax on the sale based on local rates2524
published in the catalog, any tax levied or rate changed under2525
this section shall not apply to such sales until the first day of2526
a calendar quarter following the expiration of one hundred twenty2527
days from the date of notice by the tax commissioner to the2528
vendor, or to the vendor's certified service provider, if the2529
vendor has selected one.2530

       (C) If a resolution is rejected at a referendum or if a2531
resolution adopted after January 1, 1982, as an emergency measure2532
is repealed by the electors pursuant to division (B)(2)(b) of this2533
section or section 5739.022 of the Revised Code, then for one year2534
after the date of the election at which the resolution was2535
rejected or repealed the board of county commissioners may not2536
adopt any resolution authorized by this section as an emergency2537
measure.2538

       (D) The board of county commissioners, at any time while a2539
tax levied under this section is in effect, may by resolution2540
reduce the rate at which the tax is levied to a lower rate2541
authorized by this section. Any reduction in the rate at which2542
the tax is levied shall be made effective on the first day of the2543
month specified in the resolution but not sooner than the first2544
day of the montha calendar quarter next following the thirtieth2545
sixtieth day after the certification of the resolution to the tax2546
commissioner.2547

       (E) The tax on every retail sale subject to a tax levied2548
pursuant to this section shall be in addition to the tax levied by2549
section 5739.02 of the Revised Code and any tax levied pursuant to2550
section 5739.023 or 5739.026 of the Revised Code.2551

       A county that levies a tax pursuant to this section shall2552
levy a tax at the same rate pursuant to section 5741.021 of the2553
Revised Code.2554

       The additional tax levied by the county shall be collected2555
pursuant to section 5739.025 of the Revised Code. If the2556
additional tax or some portion thereof is levied for the purpose2557
of criminal and administrative justice services, the revenue from2558
the tax, or the amount or rate apportioned to that purpose, shall2559
be credited to a special fund created in the county treasury for2560
receipt of that revenue.2561

       Any tax levied pursuant to this section is subject to the2562
exemptions provided in section 5739.02 of the Revised Code and in2563
addition shall not be applicable to sales not within the taxing2564
power of a county under the constitutionConstitution of the2565
United States or the constitution of this stateOhio Constitution.2566

       (F) For purposes of this section, a copy of a resolution is2567
"certified" when it contains a written statement attesting that2568
the copy is a true and exact reproduction of the original2569
resolution.2570

       (G) If a board of commissioners intends to adopt a2571
resolution to levy a tax in whole or in part for the purpose of2572
criminal and administrative justice services, the board shall2573
prepare and make available at the first public hearing at which2574
the resolution is considered a statement containing the following2575
information:2576

       (1) For each of the two preceding fiscal years, the amount2577
of expenditures made by the county from the county general fund2578
for the purpose of criminal and administrative justice services;2579

       (2) For the fiscal year in which the resolution is adopted,2580
the board's estimate of the amount of expenditures to be made by2581
the county from the county general fund for the purpose of2582
criminal and administrative justice services;2583

       (3) For each of the two fiscal years after the fiscal year2584
in which the resolution is adopted, the board's preliminary plan2585
for expenditures to be made from the county general fund for the2586
purpose of criminal and administrative justice services, both2587
under the assumption that the tax will be imposed for that purpose2588
and under the assumption that the tax would not be imposed for2589
that purpose, and for expenditures to be made from the special2590
fund created under division (E) of this section under the2591
assumption that the tax will be imposed for that purpose.2592

       The board shall prepare the statement and the preliminary2593
plan using the best information available to the board at the time2594
the statement is prepared. Neither the statement nor the2595
preliminary plan shall be used as a basis to challenge the2596
validity of the tax in any court of competent jurisdiction, nor2597
shall the statement or preliminary plan limit the authority of the2598
board to appropriate, pursuant to section 5705.38 of the Revised2599
Code, an amount different from that specified in the preliminary2600
plan.2601

       (H) As used in this section, "criminal and administrative2602
justice services" means the exercise by the county sheriff of all2603
powers and duties vested in that office by law; the exercise by2604
the county prosecuting attorney of all powers and duties vested in2605
that office by law; the exercise by any court in the county of all2606
powers and duties vested in that court; the exercise by the clerk2607
of the court of common pleas, any clerk of a municipal court2608
having jurisdiction throughout the county, or the clerk of any2609
county court of all powers and duties vested in the clerk by law2610
except, in the case of the clerk of the court of common pleas, the2611
titling of motor vehicles or watercraft pursuant to Chapter 1548.2612
or 4505. of the Revised Code; the exercise by the county coroner2613
of all powers and duties vested in that office by law; making2614
payments to any other public agency or a private, nonprofit2615
agency, the purposes of which in the county include the diversion,2616
adjudication, detention, or rehabilitation of criminals or2617
juvenile offenders; the operation and maintenance of any detention2618
facility, as defined in section 2921.01 of the Revised Code; and2619
the construction, acquisition, equipping, or repair of such a2620
detention facility, including the payment of any debt charges2621
incurred in the issuance of securities pursuant to Chapter 133. of2622
the Revised Code for the purpose of constructing, acquiring,2623
equipping, or repairing such a facility.2624

       Sec. 5739.023.  (A)(1) For the purpose of providing2625
additional general revenues for a transit authority and paying the2626
expenses of administering such levy, any transit authority as2627
defined in division (U) of section 5739.01 of the Revised Code may2628
levy a tax upon every retail sale made in the territory of the2629
transit authority, except sales of watercraft and outboard motors2630
required to be titled pursuant to Chapter 1548. of the Revised2631
Code and sales of motor vehicles, at a rate of not more than one2632
and one-half per cent at any multiple of one-fourth of one per2633
cent and may increase the existing rate of tax to not more than2634
one and one-half per cent at any multiple of one-fourth of one per2635
cent. The tax shall be levied and the rate increased pursuant to2636
a resolution of the legislative authority of the transit authority2637
and a certified copy of the resolution shall be delivered by the2638
fiscal officer to the board of elections as provided in section2639
3505.071 of the Revised Code. The resolution shall specify the2640
number of years for which the tax is to be in effect or that the2641
tax is for a continuing period of time, and the date of the2642
election on the question of the tax pursuant to section 306.70 of2643
the Revised Code.2644

       (2) TheExcept as provided in division (C) of this section,2645
the tax levied by the resolution shall become effective on the2646
first day of the month specified in the resolution but not earlier2647
than the first day of the montha calendar quarter next following2648
the sixtieth day following the certification of the results of the2649
election on the question of the tax by the board of elections.2650

       (B) The legislative authority may, at any time while the tax2651
is in effect, by resolution fix the rate of the tax at any rate2652
authorized by this section and not in excess of that approved by2653
the voters pursuant to section 306.70 of the Revised Code. Any2654
Except as provided in division (C) of this section, any change in2655
the rate of the tax shall be made effective on the first day of2656
the month specified in the resolution but not sooner than the2657
first day of the montha calendar quarter next following the2658
sixtieth day following the certification of the resolution to the2659
tax commissioner; provided, that in any case where bonds, or notes2660
in anticipation of bonds, of a regional transit authority have2661
been issued under section 306.40 of the Revised Code without a2662
vote of the electors while the tax proposed to be reduced was in2663
effect, the board of trustees of the regional transit authority2664
shall continue to levy and collect under authority of the original2665
election authorizing the tax a rate of tax whichthat the board of2666
trustees reasonably estimates will produce an amount in that year2667
equal to the amount of principal of and interest on those bonds as2668
is payable in that year.2669

       (C) If a vendor that is registered with the central2670
electronic registration system provided for in section 5740.05 of2671
the Revised Code makes a sale in this state by printed catalog2672
and the consumer computed the tax on the sale based on local rates2673
published in the catalog, any tax levied or rate changed under2674
this section shall not apply to such a sale until the first day of2675
a calendar quarter following the expiration of one hundred twenty2676
days from the date of notice by the tax commissioner to the2677
vendor, or to the vendor's certified service provider, if the2678
vendor has selected one.2679

        (D) The tax on every retail sale subject to a tax levied2680
pursuant to this section is in addition to the tax levied by2681
section 5739.02 of the Revised Code and any tax levied pursuant to2682
section 5739.021 or 5739.026 of the Revised Code.2683

       (D)(E) The additional tax levied by the transit authority2684
shall be collected pursuant to section 5739.025 of the Revised2685
Code.2686

       (E)(F) Any tax levied pursuant to this section is subject to2687
the exemptions provided in section 5739.02 of the Revised Code and2688
in addition shall not be applicable to sales not within the taxing2689
power of a transit authority under the constitution of the United2690
States or the constitution of this state.2691

       (F)(G) The rate of a tax levied under this section is2692
subject to reduction under section 5739.028 of the Revised Code if2693
a ballot question is approved by voters pursuant to that section.2694

       Sec. 5739.026.  (A) A board of county commissioners may levy2695
a tax of one-fourth or one-half of one per cent on every retail2696
sale in the county, except sales of watercraft and outboard motors2697
required to be titled pursuant to Chapter 1548. of the Revised2698
Code and sales of motor vehicles, and may increase an existing2699
rate of one-fourth of one per cent to one-half of one per cent, to2700
pay the expenses of administering the tax and, except as provided2701
in division (A)(6) of this section, for any one or more of the2702
following purposes:2703

       (1) To provide additional revenues for the payment of bonds2704
or notes issued in anticipation of bonds issued by a convention2705
facilities authority established by the board of county2706
commissioners under Chapter 351. of the Revised Code and to2707
provide additional operating revenues for the convention2708
facilities authority;2709

       (2) To provide additional revenues for a transit authority2710
operating in the county;2711

       (3) To provide additional revenue for the county's general2712
fund;2713

       (4) To provide additional revenue for permanent improvements2714
within the county to be distributed by the community improvements2715
board in accordance with section 307.283 and to pay principal,2716
interest, and premium on bonds issued under section 307.284 of the2717
Revised Code;2718

       (5) To provide additional revenue for the acquisition,2719
construction, equipping, or repair of any specific permanent2720
improvement or any class or group of permanent improvements, which2721
improvement or class or group of improvements shall be enumerated2722
in the resolution required by division (D) of this section, and to2723
pay principal, interest, premium, and other costs associated with2724
the issuance of bonds or notes in anticipation of bonds issued2725
pursuant to Chapter 133. of the Revised Code for the acquisition,2726
construction, equipping, or repair of the specific permanent2727
improvement or class or group of permanent improvements;2728

       (6) To provide revenue for the implementation and operation2729
of a 9-1-1 system in the county. If the tax is levied or the rate2730
increased exclusively for such purpose, the tax shall not be2731
levied or the rate increased for more than five years. At the end2732
of the last year the tax is levied or the rate increased, any2733
balance remaining in the special fund established for such purpose2734
shall remain in that fund and be used exclusively for such purpose2735
until the fund is completely expended, and, notwithstanding2736
section 5705.16 of the Revised Code, the board of county2737
commissioners shall not petition for the transfer of money from2738
such special fund, and the tax commissioner shall not approve such2739
a petition.2740

       If the tax is levied or the rate increased for such purpose2741
for more than five years, the board of county commissioners also2742
shall levy the tax or increase the rate of the tax for one or more2743
of the purposes described in divisions (A)(1) to (5) of this2744
section and shall prescribe the method for allocating the revenues2745
from the tax each year in the manner required by division (C) of2746
this section.2747

       (7) To provide additional revenue for the operation or2748
maintenance of a detention facility, as that term is defined under2749
division (F) of section 2921.01 of the Revised Code;2750

       (8) To provide revenue to finance the construction or2751
renovation of a sports facility, but only if the tax is levied for2752
that purpose in the manner prescribed by section 5739.028 of the2753
Revised Code.2754

       As used in division (A)(8) of this section:2755

       (a) "Sports facility" means a facility intended to house2756
major league professional athletic teams.2757

       (b) "Constructing" or "construction" includes providing2758
fixtures, furnishings, and equipment.2759

       (9) To provide additional revenue for the acquisition of2760
agricultural easements, as defined in section 5301.67 of the2761
Revised Code; to pay principal, interest, and premium on bonds2762
issued under section 133.60 of the Revised Code; and for the2763
supervision and enforcement of agricultural easements held by the2764
county.2765

       Pursuant to section 755.171 of the Revised Code, a board of2766
county commissioners may pledge and contribute revenue from a tax2767
levied for the purpose of division (A)(5) of this section to the2768
payment of debt charges on bonds issued under section 755.17 of2769
the Revised Code.2770

       The rate of tax shall be a multiple of one-fourth of one per2771
cent, unless a portion of the rate of an existing tax levied under2772
section 5739.023 of the Revised Code has been reduced, and the2773
rate of tax levied under this section has been increased, pursuant2774
to section 5739.028 of the Revised Code, in which case the2775
aggregate of the rates of tax levied under this section and2776
section 5739.023 of the Revised Code shall be a multiple of2777
one-fourth of one per cent. The tax shall be levied and the rate2778
increased pursuant to a resolution adopted by a majority of the2779
members of the board.2780

       Prior to the adoption of any resolution to levy the tax or to2781
increase the rate of tax exclusively for the purpose set forth in2782
division (A)(3) of this section, the board of county commissioners2783
shall conduct two public hearings on the resolution, the second2784
hearing to be no fewer than three nor more than ten days after the2785
first. Notice of the date, time, and place of the hearings shall2786
be given by publication in a newspaper of general circulation in2787
the county once a week on the same day of the week for two2788
consecutive weeks, the second publication being no fewer than ten2789
nor more than thirty days prior to the first hearing. TheExcept2790
as provided in division (E) of this section, the resolution shall2791
become effective on the first day of the month specified in the2792
resolution but not earlier than the first day of the montha2793
calendar quarter following the expiration of sixty days from the2794
date of its adoption, subject to a referendum as provided in2795
sections 305.31 to 305.41 of the Revised Code, unless the. If the2796
resolution is adopted as an emergency measure necessary for the2797
immediate preservation of the public peace, health, or safety, in2798
which case it shall go into effect on the first day of the month2799
following the expiration of thirty days from the date of notice by2800
the board of county commissioners to the tax commissioner of its2801
adoption. The emergency measure shallmust receive an affirmative2802
vote of all of the members of the board of county commissioners2803
and shall state the reasons for the necessity.2804

       If the tax is for more than one of the purposes set forth in2805
divisions (A)(1) to (7) and (9) of this section or is exclusively2806
for one of the purposes set forth in division (A)(1), (2), (4),2807
(5), (6), (7), or (9) of this section, the resolution shall not go2808
into effect unless it is approved by a majority of the electors2809
voting on the question of the tax.2810

       (B) The board of county commissioners shall adopt a2811
resolution under section 351.02 of the Revised Code creating the2812
convention facilities authority, or under section 307.283 of the2813
Revised Code creating the community improvements board, before2814
adopting a resolution levying a tax for the purpose of a2815
convention facilities authority under division (A)(1) of this2816
section or for the purpose of a community improvements board under2817
division (A)(4) of this section.2818

       (C)(1) If the tax is to be used for more than one of the2819
purposes set forth in divisions (A)(1) to (7) and (9) of this2820
section, the board of county commissioners shall establish the2821
method that will be used to determine the amount or proportion of2822
the tax revenue received by the county during each year that will2823
be distributed for each of those purposes, including, if2824
applicable, provisions governing the reallocation of a convention2825
facilities authority's allocation if the authority is dissolved2826
while the tax is in effect. The allocation method may provide2827
that different proportions or amounts of the tax shall be2828
distributed among the purposes in different years, but it shall2829
clearly describe the method that will be used for each year.2830
Except as otherwise provided in division (C)(2) of this section,2831
the allocation method established by the board is not subject to2832
amendment during the life of the tax.2833

       (2) Subsequent to holding a public hearing on the proposed2834
amendment, the board of county commissioners may amend the2835
allocation method established under division (C)(1) of this2836
section for any year, if the amendment is approved by the2837
governing board of each entity whose allocation for the year would2838
be reduced by the proposed amendment. In the case of a tax that2839
is levied for a continuing period of time, the board may not so2840
amend the allocation method for any year before the sixth year2841
that the tax is in effect.2842

       (a) If the additional revenues provided to the convention2843
facilities authority are pledged by the authority for the payment2844
of convention facilities authority revenue bonds for as long as2845
such bonds are outstanding, no reduction of the authority's2846
allocation of the tax shall be made for any year except to the2847
extent that the reduced authority allocation, when combined with2848
the authority's other revenues pledged for that purpose, is2849
sufficient to meet the debt service requirements for that year on2850
such bonds.2851

       (b) If the additional revenues provided to the county are2852
pledged by the county for the payment of bonds or notes described2853
in division (A)(4) or (5) of this section, for as long as such2854
bonds or notes are outstanding, no reduction of the county's or2855
the community improvements board's allocation of the tax shall be2856
made for any year, except to the extent that the reduced county or2857
community improvements board allocation is sufficient to meet the2858
debt service requirements for that year on such bonds or notes.2859

       (c) If the additional revenues provided to the transit2860
authority are pledged by the authority for the payment of revenue2861
bonds issued under section 306.37 of the Revised Code, for as long2862
as such bonds are outstanding, no reduction of the authority's2863
allocation of tax shall be made for any year, except to the extent2864
that the authority's reduced allocation, when combined with the2865
authority's other revenues pledged for that purpose, is sufficient2866
to meet the debt service requirements for that year on such bonds.2867

       (d) If the additional revenues provided to the county are2868
pledged by the county for the payment of bonds or notes issued2869
under section 133.60 of the Revised Code, for so long as the bonds2870
or notes are outstanding, no reduction of the county's allocation2871
of the tax shall be made for any year, except to the extent that2872
the reduced county allocation is sufficient to meet the debt2873
service requirements for that year on the bonds or notes.2874

       (D)(1) The resolution levying the tax or increasing the rate2875
of tax shall state the rate of the tax or the rate of the2876
increase; the purpose or purposes for which it is to be levied;2877
the number of years for which it is to be levied or that it is for2878
a continuing period of time; the allocation method required by2879
division (C) of this section; and if required to be submitted to2880
the electors of the county under division (A) of this section, the2881
date of the election at which the proposal shall be submitted to2882
the electors of the county, which shall be not less than2883
seventy-five days after the certification of a copy of the2884
resolution to the board of elections and, if the tax is to be2885
levied exclusively for the purpose set forth in division (A)(3) of2886
this section, shall not occur in February or August of any year.2887
Upon certification of the resolution to the board of elections,2888
the board of county commissioners shall notify the tax2889
commissioner in writing of the levy question to be submitted to2890
the electors. If approved by a majority of the electors, the tax2891
shall become effective on the first day of the month specified in2892
the resolution but not earlier than the first day of the montha2893
calendar quarter next following the thirtiethsixtieth day2894
following the certification of the results of the election to the2895
board of county commissioners and the tax commissioner by the2896
board of elections, except as provided in division (E) of this2897
section.2898

       (2)(a) A resolution specifying that the tax is to be used2899
exclusively for the purpose set forth in division (A)(3) of this2900
section that is not adopted as an emergency measure may direct the2901
board of elections to submit the question of levying the tax or2902
increasing the rate of the tax to the electors of the county at a2903
special election held on the date specified by the board of county2904
commissioners in the resolution, provided that the election occurs2905
not less than seventy-five days after the resolution is certified2906
to the board of elections and the election is not held in February2907
or August of any year. Upon certification of the resolution to2908
the board of elections, the board of county commissioners shall2909
notify the tax commissioner in writing of the levy question to be2910
submitted to the electors. No resolution adopted under division2911
(D)(2)(a) of this section shall go into effect unless approved by2912
a majority of those voting upon it and, except as provided in2913
division (E) of this section, not until the first day of the month2914
specified in the resolution but not earlier than the first day of2915
the montha calendar quarter following the expiration of thirty2916
sixty days from the date of the notice to the tax commissioner by2917
the board of elections of the affirmative vote.2918

       (b) A resolution specifying that the tax is to be used2919
exclusively for the purpose set forth in division (A)(3) of this2920
section that is adopted as an emergency measure shall become2921
effective as provided in division (A) of this section, but may2922
direct the board of elections to submit the question of repealing2923
the tax or increase in the rate of the tax to the electors of the2924
county at the next general election in the county occurring not2925
less than seventy-five days after the resolution is certified to2926
the board of elections. Upon certification of the resolution to2927
the board of elections, the board of county commissioners shall2928
notify the tax commissioner in writing of the levy question to be2929
submitted to the electors. The ballot question shall be the same2930
as that prescribed in section 5739.022 of the Revised Code. The2931
board of elections shall notify the board of county commissioners2932
and the tax commissioner of the result of the election immediately2933
after the result has been declared. If a majority of the2934
qualified electors voting on the question of repealing the tax or2935
increase in the rate of the tax vote for repeal of the tax or2936
repeal of the increase, the board of county commissioners, on the2937
first day of the montha calendar quarter following the expiration2938
of thirtysixty days after the date it received notice of the2939
result of the election, shall, in the case of a repeal of the tax,2940
cease to levy the tax, or, in the case of a repeal of an increase2941
in the rate of the tax, cease to levy the increased rate and levy2942
the tax at the rate at which it was imposed immediately prior to2943
the increase in rate.2944

       (E) If a vendor that is registered with the central2945
electronic registration system provided for in section 5740.05 of2946
the Revised Code makes a sale in this state by printed catalog2947
and the consumer computed the tax on the sale based on local rates2948
published in the catalog, any tax levied or rate changed under2949
this section shall not apply to such a sale until the first day of2950
a calendar quarter following the expiration of one hundred twenty2951
days from the date of notice by the tax commissioner to the2952
vendor, or to the vendor's certified service provider, if the2953
vendor has selected one.2954

        (F) The tax levied pursuant to this section shall be in2955
addition to the tax levied by section 5739.02 of the Revised Code2956
and any tax levied pursuant to section 5739.021 or 5739.023 of the2957
Revised Code.2958

       A county that levies a tax pursuant to this section shall2959
levy a tax at the same rate pursuant to section 5741.023 of the2960
Revised Code.2961

       The additional tax levied by the county shall be collected2962
pursuant to section 5739.025 of the Revised Code.2963

       Any tax levied pursuant to this section is subject to the2964
exemptions provided in section 5739.02 of the Revised Code and in2965
addition shall not be applicable to sales not within the taxing2966
power of a county under the Constitution of the United States or2967
the Ohio Constitution.2968

       Sec. 5739.03. (A) Except as provided in section 5739.05 of2969
the Revised Code, the tax imposed by or pursuant to section2970
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code shall2971
be paid by the consumer to the vendor, and each vendor shall2972
collect from the consumer, as a trustee for the state of Ohio, the2973
full and exact amount of the tax payable on each taxable sale, in2974
the manner and at the times provided as follows:2975

       (A)(1) If the price is, at or prior to the provision of the2976
service or the delivery of possession of the thing sold to the2977
consumer, paid in currency passed from hand to hand by the2978
consumer or the consumer's agent to the vendor or the vendor's2979
agent, the vendor or the vendor's agent shall collect the tax with2980
and at the same time as the price;2981

       (B)(2) If the price is otherwise paid or to be paid, the2982
vendor or the vendor's agent shall, at or prior to the provision2983
of the service or the delivery of possession of the thing sold to2984
the consumer, charge the tax imposed by or pursuant to section2985
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code to2986
the account of the consumer, which amount shall be collected by2987
the vendor from the consumer in addition to the price. Such sale2988
shall be reported on and the amount of the tax applicable thereto2989
shall be remitted with the return for the period in which the sale2990
is made, and the amount of the tax shall become a legal charge in2991
favor of the vendor and against the consumer.2992

       (B)(1) If any sale is claimed to be exempt under division2993
(E) of section 5739.01 of the Revised Code or under section2994
5739.02 of the Revised Code, with the exception of divisions2995
(B)(1) to (11) or (28) of section 5739.02 of the Revised Code, the2996
consumer must furnishprovide to the vendor, and the vendor must2997
obtain from the consumer, a certificate specifying the reason that2998
the sale is not legally subject to the tax. The certificate shall2999
be provided either in a hard copy form or electronic form, as3000
prescribed by the tax commissioner. If the transaction is claimed3001
to be exempt under division (B)(13) of section 5739.02 of the3002
Revised Code, the exemption certificate shall be signedprovided3003
by both the contractor and the contractee and such. Such3004
contractee shall be deemed to be the consumer of all items3005
purchased under such claim of exemption in the eventif it is3006
subsequently determined that the exemption is not properly3007
claimed. The certificate shall be in such form as the tax3008
commissioner by regulation prescribes. If3009

       (2) The vendor shall maintain records, including exemption3010
certificates, of all sales on which a consumer has claimed an3011
exemption, and provide them to the tax commissioner on request.3012

        (3) The tax commissioner may establish an identification3013
system whereby the commissioner issues an identification number to3014
a consumer that is exempt from payment of the tax. The consumer3015
must present the number to the vendor if any sale is claimed to be3016
exempt as provided in this section.3017

        (4) If no certificate is furnishedprovided or obtained3018
within the period for filing the return for the period in which3019
such sale is consummated, it shall be presumed that the tax3020
applies. The Failure to have so furnishedprovided, or to have so3021
obtained, a certificate shall not prevent a vendor or consumer3022
from establishing that the sale is not subjuctsubject to the tax3023
within sixty one hundred twenty days of the giving of notice by3024
the commissioner of intention to levy an assassmentassessment, in3025
which event the tax shall not apply.3026

       (5) Certificates need not be obtained nor furnishedprovided3027
where the identity of the consumer is such that the transaction is3028
never subject to the tax imposed or where the item of tangible3029
personal property sold or the service provided is never subject to3030
the tax imposed, regardless of use, or when the sale is in3031
interstate commerce.3032

       (C) As used in this division, "contractee" means a person3033
who seeks to enter or enters into a contract or agreement with a3034
contractor or vendor for the construction of real property or for3035
the sale and installation onto real property of tangible personal3036
property.3037

       Any contractor or vendor may request from any contractee a3038
certification of what portion of the property to be transferred3039
under such contract or agreement is to be incorporated into the3040
realty and what portion will retain its status as tangible3041
personal property after installation is completed. The contractor3042
or vendor shall request the certification by certified mail3043
delivered to the contractee, return receipt requested. Upon3044
receipt of such request and prior to entering into the contract or3045
agreement, the contractee shall furnishprovide to the contractor3046
or vendor a certification sufficiently detailed to enable the3047
contractor or vendor to ascertain the resulting classification of3048
all materials purchased or fabricated by the contractor or vendor3049
and transferred to the contractee. This requirement applies to a3050
contractee regardless of whether the contractee holds a direct3051
payment permit under section 5739.031 of the Revised Code or3052
furnishesprovides to the contractor or vendor an exemption3053
certificate as provided under this section.3054

       For the purposes of the taxes levied by this chapter and3055
Chapter 5741. of the Revised Code, the contractor or vendor may in3056
good faith rely on the contractee's certification. Notwithstanding3057
division (B) of section 5739.01 of the Revised Code, if the tax3058
commissioner determines that certain property certified by the3059
contractee as tangible personal property pursuant to this division3060
is, in fact, real property, the contractee shall be considered to3061
be the consumer of all materials so incorporated into that real3062
property and shall be liable for the applicable tax, and the3063
contractor or vendor shall be excused from any liability on those3064
materials.3065

       If a contractee fails to provide such certification upon the3066
request of the contractor or vendor, the contractor or vendor3067
shall comply with the provisions of this chapter and Chapter 5741.3068
of the Revised Code without the certification. If the tax3069
commissioner determines that such compliance has been performed in3070
good faith and that certain property treated as tangible personal3071
property by the contractor or vendor is, in fact, real property,3072
the contractee shall be considered to be the consumer of all3073
materials so incorporated into that real property and shall be3074
liable for the applicable tax, and the construction contractor or3075
vendor shall be excused from any liability on those materials.3076

       This division does not apply to any contract or agreement3077
where the tax commissioner determines as a fact that a3078
certification under this division was made solely on the decision3079
or advice of the contractor or vendor.3080

       (D) Notwithstanding division (B) of section 5739.01 of the3081
Revised Code, whenever the total rate of tax imposed under this3082
chapter is increased after the date after a construction contract3083
is entered into, the contractee shall reimburse the construction3084
contractor for any additional tax paid on tangible property3085
consumed or services received pursuant to the contract.3086

       (E) A vendor who files a petition for reassessment3087
contesting the assessment of tax on sales for which the vendor3088
obtained no valid exemption certificates and for which the vendor3089
failed to establish that the sales were properly not subject to3090
the tax during the one-hundred-twenty-day period allowed under3091
division (B) of this section, may present to the tax commissioner3092
additional evidence to prove that the sales were properly subject3093
to a claim of exception or exemption. The vendor shall file such3094
evidence within ninety days of the receipt by the vendor of the3095
notice of assessment, except that, upon application and for3096
reasonable cause, the period for submitting such evidence shall be3097
extended thirty days.3098

       The commissioner shall consider such additional evidence in3099
reaching the final determination on the assessment and petition3100
for reassessment.3101

       (F) Whenever a vendor refunds to the consumer the full price3102
of an item of tangible personal property on which the tax imposed3103
under this chapter has been paid, the vendor shall also refund the3104
full amount of the tax paid.3105

       Sec. 5739.031.  (A) The tax commissioner may authorize a3106
manufacturer or other consumer, who purchases tangible personal3107
property or services under circumstances that normally make it3108
impossible at the time of the purchase to determine the manner in3109
which the property or services will be used, to pay the sales tax3110
levied by or pursuant to section 5739.02, 5739.021, 5739.023, or3111
5739.026 of the Revised Code or the use tax levied by or pursuant3112
to section 5741.02, 5741.021, 5741.022, or 5741.023 of the Revised3113
Code directly to the state, and waive the collection of the tax by3114
the vendor or seller, but no such authority shall be granted or3115
exercised except upon application to the commissioner, and the3116
issuance by, the commissioner of a direct payment permit. If a3117
direct payment permit is granted, then payment of the sales and3118
use taxes on all purchases, including purchases of tangible3119
personal property and services, the use of which is known at the3120
time of the purchase, shall be made directly to the treasurer of3121
state by the permit holder.3122

       (B) Each permit holder, on or before the twenty-third day of3123
each month, shall make and file with the treasurer of state a3124
return for the preceding month in such form as is prescribed by3125
the commissioner and shall pay the tax shown on the return to be3126
due. The return shall show the sum of the prices of taxable3127
merchandise used and taxable services received, the amount of tax3128
due from the permit holder, and such other information as the3129
commissioner deems necessary. The commissioner, upon written3130
request by the permit holder, may extend the time for making and3131
filing returns and paying the tax. If the commissioner determines3132
that a permit holder's tax liability is not such as to merit3133
monthly filing, the commissioner may authorize the permit holder3134
to file returns and pay the tax at less frequent intervals. The3135
treasurer of state shall show on the return the date it was filed3136
and the amount of the payment remitted to the treasurer.3137
Thereafter, the treasurer immediately shall transmit all returns3138
filed under this section to the tax commissioner.3139

       Any permit holder required to file a return and pay the tax3140
under this section whose total payment for any calendar year3141
indicated in that section equals or exceeds the amount shown in3142
section 5739.032 of the Revised Code shall make each payment3143
required by this section in the second ensuing and each succeeding3144
year by electronic funds transfer as prescribed by section3145
5739.032 of the Revised Code, except as otherwise prescribed by3146
that section.3147

       (C) For purposes of reporting and remitting the tax, the3148
price of tangible personal property or services purchased by, or3149
of tangible personal property produced by, the permit holder shall3150
be determined under division (G) of section 5741.01 of the Revised3151
Code. Notwithstanding section 5739.033 of the Revised Code, all3152
The tax due on purchase transactions made by the permit holder are3153
conclusively determined to be consummated at the location where3154
the tangible personal property or service is received by the3155
permit holdershall be determined in accordance with division (C)3156
of section 5739.033 of the Revised Code.3157

       (D) It shall be the duty of every permit holder required to3158
make a return and pay any tax under this section to keep and3159
preserve suitable records of purchases together with invoices of3160
purchases, bills of lading, asset ledgers, depreciation schedules,3161
transfer journals, and such other primary and secondary records3162
and documents in such form as the commissioner requires. All such3163
records and other documents shall be open during business hours to3164
the inspection of the commissioner, and shall be preserved for a3165
period of four years, unless the commissioner, in writing, has3166
authorized their destruction or disposal at an earlier date, or by3167
order requires that they be kept longer.3168

       (E) A permit granted pursuant to this section shall continue3169
to be valid until surrendered by the holder or canceled for cause3170
by the commissioner.3171

       (F) Persons who hold a direct payment permit that has not3172
been canceled shall not be required to issue exemption3173
certificates and shall not be required to pay the tax as3174
prescribed in sections 5739.03, 5739.033, and 5741.12 of the3175
Revised Code. Such persons shall notify vendors and sellers from3176
whom purchases of tangible personal property or services are made,3177
of their direct payment permit number and that the tax is being3178
paid directly to the state. Upon receipt of such notice, such3179
vendor or seller shall be absolved from all duties and liabilities3180
imposed by section 5739.03 or 5741.04 of the Revised Code with3181
respect to sales of tangible personal property or services to such3182
permit holder.3183

       Vendors and sellers who make sales upon which the tax is not3184
collected by reason of the provisions of this section shall3185
maintain records in such manner that the amount involved and3186
identity of the purchaser may be ascertained. The receipts from3187
such sales shall not be subject to the tax levied in section3188
5739.10 of the Revised Code.3189

       Upon the cancellation or surrender of a direct payment3190
permit, the provisions of sections 5739.03, 5741.04, and 5741.123191
of the Revised Code shall immediately apply to all purchases made3192
subsequent to such cancellation or surrender by the person who3193
previously held such permit, and such person shall so notify3194
vendors and sellers from whom purchases of tangible personal3195
property or services are made, in writing, prior to or at the time3196
of the first purchase after such cancellation or surrender. Upon3197
receipt of such notice, the vendor shall be subject to the3198
provisions of sections 5739.03 and 5739.10 of the Revised Code and3199
the seller shall be subject to the provisions of section 5741.043200
of the Revised Code, with respect to all sales subsequently made3201
to such person. Failure of any such person to notify vendors or3202
sellers from whom purchases of tangible personal property or3203
services are made of the cancellation or surrender of a direct3204
payment permit shall be considered as a refusal to pay the tax by3205
the person required to issue such notice.3206

       Sec. 5739.033.  The amount of tax due pursuant to sections3207
5739.02, 5739.021, 5739.023, and 5739.026 of the Revised Code is3208
the sum of the taxes imposed pursuant to those sections at the3209
situs of the consummation of the sale as determined under this3210
section.3211

       (A) Except for sales of titled motor vehicles, titled3212
watercraft, or titled outboard motors as provided in section3213
5741.05 of the Revised Code, or as otherwise provided in this3214
section and division (C) of section 5739.0315739.034 of the3215
Revised Code, all sales are conclusively determined to be3216
consummated at the vendor's place of business.3217

       (1) If the consumer or the consumer's agent takes possession3218
of thedonee receives tangible personal property or a service at a3219
place of business of the vendor where the purchase contract or3220
agreement was made, the sale is conclusively determined to be3221
consummated at that place of business.3222

       (2) If the consumer or the consumer's agent takes possession3223
of the tangible personal property other than at a place of3224
business of the vendor, or takes possession at a warehouse or3225
similar facility of the vendor, the sale is consummated at the3226
vendor's place of business where the purchase contract or3227
agreement was made or the purchase order was received.3228

       (3) If the vendor provides a service specified in division3229
(B)(3)(a), (b), (c), (d), (n), or (o) of section 5739.01 of the3230
Revised Code, the sale is consummated at the vendor's place of3231
business where the service is performed or the contract or3232
agreement for the service was made or the purchase order was3233
received.3234

       (B) If the vendor is a transient vendor as specified in3235
division (B) of section 5739.17 of the Revised Code, the sale is3236
conclusively determined to be consummated at the vendor's3237
temporary place of business or, if the transient vendor is the3238
lessor of titled motor vehicles, titled watercraft, or titled3239
outboard motors, at the location where the lessee keeps the leased3240
property.3241

       (C) If the vendor makes sales of tangible personal property3242
from a stock of goods carried in a motor vehicle, from which the3243
purchaser makes selection and takes possession, or from which the3244
vendor sells tangible personal property the quantity of which has3245
not been determined prior to the time the purchaser takes3246
possession, the sale is conclusively determined to be consummated3247
at the location of the motor vehicle when the sale is made.3248

       (D) If the vendor is a delivery vendor as specified in3249
division (D) of section 5739.17 of the Revised Code, the sale is3250
conclusively determined to be consummated at the place where the3251
tangible personal property is delivered, where the leased property3252
is used, or where the service is performed or received.3253

       (E) If the vendor provides a service specified in division3254
(B)(3)(e), (g), (h), (j), (k), (l), or (m) of section 5739.01 of3255
the Revised Code, the sale is conclusively determined to be3256
consummated at the location of the consumer where the service is3257
performed or received.3258

       (F)When the tangible personal property or service is not3259
received at a vendor's place of business, the sale is conclusively3260
determined to be consummated at the location where the consumer or3261
a donee designated by the consumer receives the tangible personal3262
property or service, including the location indicated by3263
instructions for delivery to the consumer or the consumer's donee,3264
known to the vendor.3265

        (3) If divisions (A)(1) and (2) of this section do not3266
apply, the sale is conclusively determined to be consummated at3267
the location indicated by an address for the consumer that is3268
available from the business records of the vendor that are3269
maintained in the ordinary course of the vendor's business when3270
use of that address does not constitute bad faith.3271

        (4) If divisions (A)(1), (2), and (3) of this section do3272
not apply, the sale is conclusively determined to be consummated3273
at the location indicated by an address for the consumer obtained3274
during the consummation of the sale, including the address3275
associated with the consumer's payment instrument, if no other3276
address is available, when use of that address does not constitute3277
bad faith.3278

        (5) If divisions (A)(1), (2), (3), and (4) of this section3279
do not apply, including in the circumstance where the vendor is3280
without sufficient information to apply any of those divisions,3281
the sale is conclusively determined to be consummated at the3282
address from which tangible personal property was shipped, or from3283
which the service was provided, disregarding any location that3284
merely provided the electronic transfer of the property sold or3285
service provided.3286

        (6) As used in division (A) of this section, "receive"3287
means taking possession of tangible personal property or making3288
first use of a service. "Receive" does not include possession by3289
a shipping company on behalf of a consumer.3290

        (B)(1) Notwithstanding divisions (A)(1) to (5) of this3291
section, a manufacturer or other consumer that is not a holder of3292
a direct payment permit granted under section 5739.031 of the3293
Revised Code, that purchases tangible personal property or a3294
service for use in business, and that knows at the time of3295
purchase that the property or service will be concurrently3296
available for use in more than one taxing jurisdiction shall3297
deliver to the vendor in conjunction with its purchase a multiple3298
points of use exemption form prescribed by the tax commissioner3299
disclosing this fact. On receipt of the multiple points of use3300
exemption form, the vendor is relieved of its obligation to3301
collect, pay, or remit the tax due, and the consumer must collect,3302
pay, or remit the tax directly to the state.3303

        (2) A consumer that delivers such form to a vendor may use3304
any reasonable, consistent, and uniform method of apportioning the3305
tax due on the tangible personal property or service that is3306
supported by the consumer's business records as they existed at3307
the time of the sale.3308

        (3) The multiple points of use exemption form shall remain3309
in effect for all future sales by the vendor to the consumer until3310
it is revoked in writing by the consumer, except as to the3311
consumer's specific apportionment of a subsequent sale under3312
division (B) of this section and the facts existing at the time of3313
the sale.3314

        (C) A person who holds a direct payment permit issued under3315
section 5739.031 of the Revised Code is not required to deliver a3316
multiple points of use exemption form to a vendor. But such3317
permit holder shall comply with division (B)(2) of this section in3318
apportioning the tax due on tangible personal property or a3319
service that will be concurrently available for use in more than3320
one taxing jurisdiction.3321

        (D) Except as provided in division (I)(F) of this section,3322
if the vendor provides a service specified in division (B)(3)(f)3323
or (i) of section 5739.01 of the Revised Code, the sale is3324
conclusively determined to be consummated at the location of the3325
telephone number or account as reflected in the records of the3326
vendor. If, in the case of a telecommunications service, the3327
telephone number or account is located outside this state, the3328
sale is conclusively determined to be consummated at the location3329
in this state from which the service originated.3330

       (G)(E) If the vendor provides lodging to transient guests as3331
specified in division (B)(2) of section 5739.01 of the Revised3332
Code, the sale is conclusively determined to be consummated at the3333
location where the lodging is located.3334

       (H) If the vendor sells a warranty, maintenance or service3335
contract, or similar agreement as specified in division (B)(7) of3336
section 5739.01 of the Revised Code and the vendor is a delivery3337
vendor, the sale is conclusively determined to be consummated at3338
the location of the consumer. If the vendor is not a delivery3339
vendor, the sale is conclusively determined to be consummated at3340
the vendor's place of business where the contract or agreement was3341
made, unless the warranty or contract is a component of the sale3342
of a titled motor vehicle, titled watercraft, or titled outboard3343
motor, in which case the sale is conclusively determined to be3344
consummated in the county of titling.3345

       (I)(F) Except as otherwise provided in this division, if the3346
vendor sells a prepaid authorization number or a prepaid telephone3347
calling card, the sale is conclusively determined to be3348
consummated at the vendor's place of business and shall be taxed3349
at the time of sale. If the vendor sells a prepaid authorization3350
number or prepaid telephone calling card through a telephone call,3351
electronic commerce, or any other form of remote commerce, the3352
sale is conclusively determined to be made at the consumer's3353
shipping address, or, if there is no item shipped, at the3354
consumer's billing address.3355

       Sec. 5739.034. (A) As used in this section, "customer,"3356
"home service provider," "licensed service area," and "place of3357
primary use" have the same meanings as in the Mobile3358
Telecommunications Sourcing Act, Pub. L. No. 106-252, 114 Stat.3359
631 (2000), 4 U.S.C.A. 124, as amended.3360

       (B) Notwithstanding section 5739.033 of the Revised Code, on3361
and after August 1, 2002, if a vendor provides mobile3362
telecommunications service, the situs of all sales of that service3363
is the residential or business street address that is the3364
customer's place of primary use of the service that is within the3365
licensed service area of the home service provider under the3366
Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 1143367
Stat. 626-632 (2000), 4 U.S.C.A. 116-126, as amended. The tax3368
commissioner may adopt rules necessary to implement and administer3369
this section, and may provide an electronic database to be used by3370
home service providers.3371

       Sec. 5739.04. If modification of a county's jurisdictional3372
boundaries or a transit authority's territory results in a change3373
in the tax rate levied under section 5739.021, 5739.023, or3374
5739.026 of the Revised Code, the tax commissioner, within thirty3375
days of such change, shall notify any vendor that is registered3376
with the central electronic registration system provided for in3377
section 5740.05 of the Revised Code or the vendor's certified3378
service provider, if the vendor has selected one, of such change.3379
The rate change shall not apply to sales made by such vendor until3380
the first day of a calendar quarter following the expiration of3381
sixty days from the date of notice by the tax commissioner.3382

       Sec. 5739.06. (A) As used in this section, "certified3383
automated system" has the same meaning as in section 5740.01 of3384
the Revised Code.3385

        (B) If the tax commissioner enters into the streamlined3386
sales and use tax agreement under section 5740.03 of the Revised3387
Code, the commissioner shall provide a monetary allowance from the3388
taxes collected to each of the following:3389

        (1) A certified service provider, in accordance with the3390
agreement and under the terms of the contract signed with the3391
provider;3392

        (2) Any vendor registered under the agreement that selects3393
a certified automated system to perform part of its sales or use3394
tax functions;3395

        (3) Any vendor registered under the agreement that uses a3396
proprietary system to calculate taxes due and has entered into a3397
performance agreement with states that are members to the3398
streamlined sales and use tax agreement.3399

        (C) The monetary allowance provided for in division (B)(2)3400
or (3) of this section shall be given to the vendor for the period3401
established by, and at the rate set in, the streamlined sales and3402
use tax agreement entered into under section 5740.03 of the3403
Revised Code. Such allowance shall be in addition to any discount3404
to which the vendor is entitled under section 5739.12 of the3405
Revised Code.3406

       Sec. 5739.08. The levy of an excise tax on transactions by3407
which lodging by a hotel is or is to be furnished to transient3408
guests pursuant to section 5739.02 and division (B) of section3409
5739.01 of the Revised Code does not prevent any of the following:3410

       (A) A municipal corporation or township from levying an3411
excise tax for any lawful purpose not to exceed three per cent on3412
transactions by which lodging by a hotel is or is to be furnished3413
to transient guests in addition to the tax levied by section3414
5739.02 of the Revised Code. If a municipal corporation or3415
township repeals a tax imposed under division (A) of this section,3416
and a county in which the municipal corporation or township has3417
territory has a tax imposed under division (C) of section 5739.093418
of the Revised Code in effect, the municipal corporation or3419
township may not reimpose its tax as long as that county tax3420
remains in effect. A municipal corporation or township in which a3421
tax is levied under division (B)(2) of section 351.021 of the3422
Revised Code may not increase the rate of its tax levied under3423
division (A) of this section to any rate that would cause the3424
total taxes levied under both of those divisions to exceed three3425
per cent on any lodging transaction within the municipal3426
corporation or township.3427

       (B) A municipal corporation or a township from levying an3428
additional excise tax not to exceed three per cent on such3429
transactions pursuant to division (B) of section 5739.09 of the3430
Revised Code. Such tax is in addition to any tax imposed under3431
division (A) of this section.3432

       (C) A county from levying an excise tax pursuant to division3433
(A) of section 5739.09 of the Revised Code;3434

       (D) A county from levying an excise tax not to exceed three3435
per cent of such transactions pursuant to division (C) of section3436
5739.09 of the Revised Code. Such a tax is in addition to any tax3437
imposed under division (C) of this section.3438

       (E) A convention facilities authority, as defined in3439
division (A) of section 351.01 of the Revised Code, from levying3440
the excise taxes provided for in division (B) of section 351.0213441
of the Revised Code;3442

       (F) A county from levying an excise tax not to exceed one3443
and one-half per cent of such transactions pursuant to division3444
(D) of section 5739.09 of the Revised Code. Such tax is in3445
addition to any tax imposed under division (C) or (D) of this3446
section.3447

       (G) A county from levying an excise tax not to exceed one3448
and one-half per cent of such transactions pursuant to division3449
(E) of section 5739.09 of the Revised Code. Such a tax is in3450
addition to any tax imposed under division (C), (D), or (F) of3451
this section.3452

       Sec. 5739.024.        Sec. 5739.09.  (A)(1) A board of county3453
commissioners may, by resolution adopted by a majority of the3454
members of the board, levy an excise tax not to exceed three per3455
cent on transactions by which lodging by a hotel is or is to be3456
furnished to transient guests. The board shall establish all3457
regulations necessary to provide for the administration and3458
allocation of the tax. The regulations may prescribe the time for3459
payment of the tax, and may provide for the imposition of a3460
penalty or interest, or both, for late payments, provided that the3461
penalty does not exceed ten per cent of the amount of tax due, and3462
the rate at which interest accrues does not exceed the rate per3463
annum prescribed pursuant to section 5703.47 of the Revised Code. 3464
Except as provided in divisions (A)(2) and (3) of this section,3465
the regulations shall provide, after deducting the real and actual3466
costs of administering the tax, for the return to each municipal3467
corporation or township that does not levy an excise tax on such3468
transactions, a uniform percentage of the tax collected in the3469
municipal corporation or in the unincorporated portion of the3470
township from each such transaction, not to exceed thirty-three3471
and one-third per cent. The remainder of the revenue arising from3472
the tax shall be deposited in a separate fund and shall be spent3473
solely to make contributions to the convention and visitors'3474
bureau operating within the county, including a pledge and3475
contribution of any portion of such remainder pursuant to an3476
agreement authorized by section 307.695 of the Revised Code. 3477
Except as provided in division (A)(2) or (3) of this section, on3478
and after May 10, 1994, a board of county commissioners may not3479
levy an excise tax pursuant to this division in any municipal3480
corporation or township located wholly or partly within the county3481
that has in effect an ordinance or resolution levying an excise3482
tax pursuant to division (B) of this section. The board of a3483
county that has levied a tax under division (C) of this section3484
may, by resolution adopted within ninety days after July 15, 1985,3485
by a majority of the members of the board, amend the resolution3486
levying a tax under this division to provide for a portion of that3487
tax to be pledged and contributed in accordance with an agreement3488
entered into under section 307.695 of the Revised Code. A tax,3489
any revenue from which is pledged pursuant to such an agreement,3490
shall remain in effect at the rate at which it is imposed for the3491
duration of the period for which the revenue therefrom has been so3492
pledged.3493

       (2) A board of county commissioners that levies an excise3494
tax under division (A)(1) of this section on June 30, 1997, at a3495
rate of three per cent, and that has pledged revenue from the tax3496
to an agreement entered into under section 307.695 of the Revised3497
Code, may amend the resolution levying that tax to provide for an3498
increase in the rate of the tax up to five per cent on each3499
transaction; to provide that revenue from the increase in the rate3500
shall be spent solely to make contributions to the convention and3501
visitors' bureau operating within the county to be used3502
specifically for promotion, advertising, and marketing of the3503
region in which the county is located; to provide that the rate in3504
excess of the three per cent levied under division (A)(1) of this3505
section shall remain in effect at the rate at which it is imposed3506
for the duration of the period during which any agreement is in3507
effect that was entered into under section 307.695 of the Revised3508
Code by the board of county commissioners levying a tax under3509
division (A)(1) of this section; and to provide that no portion of3510
that revenue need be returned to townships or municipal3511
corporations as would otherwise be required under division (A)(1)3512
of this section.3513

       (3) A board of county commissioners that levies a tax under3514
division (A)(1) of this section on March 18, 1999, at a rate of3515
three per cent may, by resolution adopted not later than3516
forty-five days after March 18, 1999, amend the resolution3517
levying the tax to provide for all of the following:3518

       (a) That the rate of the tax shall be increased by not more3519
than an additional four per cent on each transaction;3520

       (b) That all of the revenue from the increase in the rate3521
shall be pledged and contributed to a convention facilities3522
authority established by the board of county commissioners under3523
Chapter 351. of the Revised Code on or before November 15, 1998,3524
and used to pay costs of constructing, maintaining, operating, and3525
promoting a facility in the county, including paying bonds, or3526
notes issued in anticipation of bonds, as provided by that3527
chapter;3528

       (c) That no portion of the revenue arising from the increase3529
in rate need be returned to municipal corporations or townships as3530
otherwise required under division (A)(1) of this section;3531

       (d) That the increase in rate shall not be subject to3532
diminution by initiative or referendum or by law while any bonds,3533
or notes in anticipation of bonds, issued by the authority under3534
Chapter 351. of the Revised Code to which the revenue is pledged,3535
remain outstanding in accordance with their terms, unless3536
provision is made by law or by the board of county commissioners3537
for an adequate substitute therefor that is satisfactory to the3538
trustee if a trust agreement secures the bonds.3539

       Division (A)(3) of this section does not apply to the board3540
of county commissioners of any county in which a convention center3541
or facility exists or is being constructed on November 15, 1998,3542
or of any county in which a convention facilities authority levies3543
a tax pursuant to section 351.021 of the Revised Code on that3544
date.3545

       As used in division (A)(3) of this section, "costs" and3546
"facility" have the same meanings as in section 351.01 of the3547
Revised Code, and "convention center" has the same meaning as in3548
section 307.695 of the Revised Code.3549

       (B) The legislative authority of a municipal corporation or3550
the board of trustees of a township that is not wholly or partly3551
located in a county that has in effect a resolution levying an3552
excise tax pursuant to division (A)(1) of this section may by3553
ordinance or resolution levy an excise tax not to exceed three per3554
cent on transactions by which lodging by a hotel is or is to be3555
furnished to transient guests. The legislative authority of the3556
municipal corporation or township shall deposit at least fifty per3557
cent of the revenue from the tax levied pursuant to this division3558
into a separate fund, which shall be spent solely to make3559
contributions to convention and visitors' bureaus operating within3560
the county in which the municipal corporation or township is3561
wholly or partly located, and the balance of such revenue shall be3562
deposited in the general fund. The municipal corporation or3563
township shall establish all regulations necessary to provide for3564
the administration and allocation of the tax. The regulations may3565
prescribe the time for payment of the tax, and may provide for the3566
imposition of a penalty or interest, or both, for late payments,3567
provided that the penalty does not exceed ten per cent of the3568
amount of tax due, and the rate at which interest accrues does not3569
exceed the rate per annum prescribed pursuant to section 5703.473570
of the Revised Code. The levy of a tax under this division is in3571
addition to any tax imposed on the same transaction by a municipal3572
corporation or a township as authorized by division (C)(1)(A) of3573
section 5739.025739.08 of the Revised Code.3574

       (C) For the purpose of making the payments authorized by3575
section 307.695 of the Revised Code to construct and equip a3576
convention center in the county and to cover the costs of3577
administering the tax, a board of county commissioners of a county3578
where a tax imposed under division (A)(1) of this section is in3579
effect may, by resolution adopted within ninety days after July3580
15, 1985, by a majority of the members of the board, levy an3581
additional excise tax not to exceed three per cent on transactions3582
by which lodging by a hotel is or is to be furnished to transient3583
guests. The tax authorized by this division shall be in addition3584
to any tax that is levied pursuant to division (A) of this3585
section, but it shall not apply to transactions subject to a tax3586
levied by a municipal corporation or township pursuant to the3587
authorization granted by division (C)(1)(A) of section 5739.023588
5739.08 of the Revised Code. The board shall establish all3589
regulations necessary to provide for the administration and3590
allocation of the tax. The regulations may prescribe the time for3591
payment of the tax, and may provide for the imposition of a3592
penalty or interest, or both, for late payments, provided that the3593
penalty does not exceed ten per cent of the amount of tax due, and3594
the rate at which interest accrues does not exceed the rate per3595
annum prescribed pursuant to section 5703.47 of the Revised Code.3596
All revenues arising from the tax shall be expended in accordance3597
with section 307.695 of the Revised Code. A tax imposed under3598
this section shall remain in effect at the rate at which it is3599
imposed for the duration of the period for which the revenue3600
therefrom has been pledged pursuant to such section.3601

       (D) For the purpose of providing contributions under3602
division (B)(1) of section 307.671 of the Revised Code to enable3603
the acquisition, construction, and equipping of a port authority3604
educational and cultural facility in the county and, to the extent3605
provided for in the cooperative agreement authorized by that3606
section, for the purpose of paying debt service charges on bonds,3607
or notes in anticipation thereof, described in division (B)(1)(b)3608
of that section, a board of county commissioners, by resolution3609
adopted within ninety days after December 22, 1992, by a majority3610
of the members of the board, may levy an additional excise tax not3611
to exceed one and one-half per cent on transactions by which3612
lodging by a hotel is or is to be furnished to transient guests.3613
The excise tax authorized by this division shall be in addition to3614
any tax that is levied pursuant to divisions (A), (B), and (C) of3615
this section, to any excise tax levied pursuant to division (C) of3616
section 5739.025739.08 of the Revised Code, and to any excise tax3617
levied pursuant to section 351.021 of the Revised Code. The board3618
of county commissioners shall establish all regulations necessary3619
to provide for the administration and allocation of the tax that3620
are not inconsistent with this section or section 307.671 of the3621
Revised Code. The regulations may prescribe the time for payment3622
of the tax, and may provide for the imposition of a penalty or3623
interest, or both, for late payments, provided that the penalty3624
does not exceed ten per cent of the amount of tax due, and the3625
rate at which interest accrues does not exceed the rate per annum3626
prescribed pursuant to section 5703.47 of the Revised Code. All3627
revenues arising from the tax shall be expended in accordance with3628
section 307.671 of the Revised Code and division (D) of this3629
section. The levy of a tax imposed under this section may not3630
commence prior to the first day of the month next following the3631
execution of the cooperative agreement authorized by section3632
307.671 of the Revised Code by all parties to that agreement. Such3633
tax shall remain in effect at the rate at which it is imposed for3634
the period of time described in division (C) of section 307.671 of3635
the Revised Code for which the revenue from the tax has been3636
pledged by the county to the corporation pursuant to such section,3637
but, to any extent provided for in the cooperative agreement, for3638
no lesser period than the period of time required for payment of3639
the debt service charges on bonds, or notes in anticipation3640
thereof, described in division (B)(1)(b) of that section.3641

       (E) For the purpose of paying the costs of acquiring,3642
constructing, equipping, and improving a municipal educational and3643
cultural facility, including debt service charges on bonds3644
provided for in division (B) of section 307.672 of the Revised3645
Code, and for such additional purposes as are determined by the3646
county in the resolution levying the tax or amendments thereto,3647
including subsequent amendments providing for paying costs of3648
acquiring, constructing, renovating, rehabilitating, equipping,3649
and improving a port authority educational and cultural performing3650
arts facility, as defined in section 307.674 of the Revised Code,3651
including debt service charges on bonds provided for in division3652
(B) of section 307.674 of the Revised Code, the legislative3653
authority of a county, by resolution adopted within ninety days3654
after June 30, 1993, by a majority of the members of the3655
legislative authority, may levy an additional excise tax not to3656
exceed one and one-half per cent on transactions by which lodging3657
by a hotel is or is to be furnished to transient guests. The3658
excise tax authorized by this division shall be in addition to any3659
tax that is levied pursuant to divisions (A), (B), (C), and (D) of3660
this section, to any excise tax levied pursuant to division (C) of3661
section 5739.025739.08 of the Revised Code, and to any excise tax3662
levied pursuant to section 351.021 of the Revised Code. The3663
legislative authority of the county shall establish all3664
regulations necessary to provide for the administration and3665
allocation of the tax. The regulations may prescribe the time for3666
payment of the tax, and may provide for the imposition of a3667
penalty or interest, or both, for late payments, provided that the3668
penalty does not exceed ten per cent of the amount of tax due, and3669
the rate at which interest accrues does not exceed the rate per3670
annum prescribed pursuant to section 5703.47 of the Revised Code.3671
All revenues arising from the tax shall be expended in accordance3672
with section 307.672 of the Revised Code and division (E) of this3673
section. The levy of a tax imposed under this division shall not3674
commence prior to the first day of the month next following the3675
execution of the cooperative agreement authorized by section3676
307.672 of the Revised Code by all parties to that agreement. Such3677
tax shall remain in effect at the rate at which it is imposed for3678
the period of time determined by the legislative authority of the3679
county, but not to exceed fifteen years.3680

       (F) The legislative authority of a county that has levied a3681
tax under division (E) of this section may, by resolution adopted3682
within one hundred eighty days after January 4, 2001, by a3683
majority of the members of the legislative authority, amend the3684
resolution levying a tax under division (E) of this section to3685
provide for the use of the proceeds of that tax, to the extent3686
that it is no longer needed for its original purpose as determined3687
by the parties to a cooperative agreement amendment pursuant to3688
division (D) of section 307.672 of the Revised Code, to pay costs3689
of acquiring, constructing, renovating, rehabilitating, equipping,3690
and improving a port authority educational and cultural performing3691
arts facility, including debt service charges on bonds provided3692
for in division (B) of section 307.674 of the Revised Code, and to3693
pay all obligations under any guaranty agreements, reimbursement3694
agreements, or other credit enhancement agreements described in3695
division (C) of section 307.674 of the Revised Code. The3696
resolution may also provide for the extension of the tax at the3697
same rate for the longer of the period of time determined by the3698
legislative authority of the county, but not to exceed an3699
additional twenty-five years, or the period of time required to3700
pay all debt service charges on bonds provided for in division (B)3701
of section 307.672 of the Revised Code and on port authority3702
revenue bonds provided for in division (B) of section 307.674 of3703
the Revised Code. All revenues arising from the amendment and3704
extension of the tax shall be expended in accordance with section3705
307.674 of the Revised Code and divisions (E) and (F) of this3706
section.3707

       (G) For purposes of a tax levied by a county, township, or3708
municipal corporation under this section or division (C) of3709
section 5739.025739.08 of the Revised Code, a board of county3710
commissioners, board of township trustees, or the legislative3711
authority of a municipal corporation may adopt a resolution or3712
ordinance at any time specifying that "hotel," as otherwise3713
defined in section 5739.01 of the Revised Code, includes3714
establishments in which fewer than five rooms are used for the3715
accommodation of guests. The resolution or ordinance may apply to3716
a tax imposed pursuant to this section prior to the adoption of3717
the resolution or ordinance if the resolution or ordinance so3718
states, but the tax shall not apply to transactions by which3719
lodging by such an establishment is provided to transient guests3720
prior to the adoption of the resolution or ordinance.3721

       Sec. 5739.12.  Each person who has or is required to have a3722
vendor's license, on or before the twenty-third day of each month,3723
shall make and file a return for the preceding month, on forms3724
prescribed by the tax commissioner, and shall pay the tax shown on3725
the return to be due. The return shall show the amount of tax due3726
from the vendor to the state for the period covered by the return3727
and such other information as the commissioner deems necessary for3728
the proper administration of this chapter. The commissioner may3729
extend the time for making and filing returns and paying the tax,3730
and may require that the return for the last month of any annual3731
or semiannual period, as determined by the commissioner, be a3732
reconciliation return detailing the vendor's sales activity for3733
the preceding annual or semiannual period. The reconciliation3734
return shall be filed by the last day of the month following the3735
last month of the annual or semiannual period. The commissioner3736
may remit all or any part of amounts or penalties whichthat may3737
become due under this chapter and may adopt rules relating3738
thereto. Such return shall be filed by mailing it to the tax3739
commissioner, together with payment of the amount of tax shown to3740
be due thereon after deduction of any discount provided for under3741
this section. Remittance shall be made payable to the treasurer of3742
state. The return shall be considered filed when received by the 3743
tax commissioner, and the payment shall be considered made when3744
received by the tax commissioner or when credited to an account3745
designated by the treasurer of state or the tax commissioner. If3746

       If the return is filed and the amount of tax shown thereon to3747
be due is paid on or before the date such return is required to be3748
filed, the vendor shall be entitled to a discount of three-fourths3749
of one per cent of the amount shown to be due on the return, but a3750
vendor that has selected a certified service provider as its agent3751
shall not be entitled to the discount. Amounts paid to the clerk3752
of courts pursuant to section 4505.06 of the Revised Code shall be3753
subject to the three-fourths of one per cent discount. The3754
discount shall be in consideration for prompt payment to the clerk3755
of courts and for other services performed by the vendor in the3756
collection of the tax.3757

       Upon application to the commissioner, a vendor who is3758
required to file monthly returns may be relieved of the3759
requirement to report and pay the actual tax due, provided that3760
the vendor agrees to remit to the tax commissioner payment of not3761
less than an amount determined by the commissioner to be the3762
average monthly tax liability of the vendor, based upon a review3763
of the returns or other information pertaining to such vendor for3764
a period of not less than six months nor more than two years3765
immediately preceding the filing of the application. Vendors who3766
agree to the above conditions shall make and file an annual or3767
semiannual reconciliation return, as prescribed by the3768
commissioner. The reconciliation return shall be filed by mailing3769
or delivering it to the tax commissioner, together with payment3770
of the amount of tax shown to be due thereon after deduction of3771
any discount provided in this section. Remittance shall be made3772
payable to the treasurer of state. Failure of a vendor to comply3773
with any of the above conditions may result in immediate3774
reinstatement of the requirement of reporting and paying the3775
actual tax liability on each monthly return, and the commissioner3776
may at the commissioner's discretion deny the vendor the right to3777
report and pay based upon the average monthly liability for a3778
period not to exceed two years. The amount ascertained by the3779
commissioner to be the average monthly tax liability of a vendor3780
may be adjusted, based upon a review of the returns or other3781
information pertaining to the vendor for a period of not less than3782
six months nor more than two years preceding such adjustment.3783

       The commissioner may authorize vendors whose tax liability is3784
not such as to merit monthly returns, as ascertained by the3785
commissioner upon the basis of administrative costs to the state,3786
to make and file returns at less frequent intervals. When returns3787
are filed at less frequent intervals in accordance with such 3788
authorization, the vendor shall be allowed the discount of3789
three-fourths of one per cent in consideration for prompt payment3790
with the return, provided the return is filed together with3791
payment of the amount of tax shown to be due thereon, at the time3792
specified by the commissioner, but a vendor that has selected a3793
certified service provider as its agent shall not be entitled to3794
the discount.3795

       Any vendor who fails to file a return or pay the full amount3796
of the tax shown on the return to be due under this section and3797
the rules of the commissioner may, for each such return the vendor3798
fails to file or each such tax the vendor fails to pay in full as3799
shown on the return within the period prescribed by this section3800
and the rules of the commissioner, be required to forfeit and pay3801
into the state treasury an additional charge not exceeding fifty3802
dollars or ten per cent of the tax required to be paid for the3803
reporting period, whichever is greater, as revenue arising from3804
the tax imposed by this chapter, and such sum may be collected by3805
assessment in the manner provided in section 5739.13 of the3806
Revised Code. The commissioner may remit all or a portion of the3807
additional charge and may adopt rules relating to the imposition3808
and remission of the additional charge.3809

       If the amount required to be collected by a vendor from3810
consumers is in excess of five per cent of the vendor's receipts3811
from sales whichthat are taxable under section 5739.02 of the3812
Revised Code, or in the case of sales subject to a tax levied3813
pursuant to section 5739.021, 5739.023, or 5739.026 of the Revised3814
Code, in excess of the percentage equal to the aggregate rate of3815
such taxes and the tax levied by section 5739.02 of the Revised3816
Code, such excess shall be remitted along with the remittance of3817
the amount of tax due under section 5739.10 of the Revised Code.3818

       The commissioner, if the commissioner deems it necessary in3819
order to insure the payment of the tax imposed by this chapter,3820
may require returns and payments to be made for other than monthly3821
periods. The returns shall be signed by the vendor or the3822
vendor's authorized agent.3823

       Any vendor required to file a return and pay the tax under3824
this section whose total payment in any year indicated in division3825
(A) of section 5739.122 of the Revised Code equals or exceeds the3826
amount shown in that division shall make each payment required by3827
this section in the second ensuing and each succeeding year by3828
electronic funds transfer as prescribed by section 5739.122 of the3829
Revised Code, except as otherwise prescribed by that section.3830

       Sec. 5739.31.  (A)(1) No person shall engage in the business3831
of selling at retail or sell at retail incidental to any other3832
regularly conducted business without having a license therefor, as3833
required by sections 5739.01 to 5739.31 of the Revised Code.3834

       (2) No person shall engage in the business of selling at3835
retail as a transient vendor, as defined in division (B) of3836
section 5739.17 of the Revised Code, without first having obtained3837
a license as required by that section.3838

       (3) No person shall engage in the business of selling at3839
retail as a limited vendor as defined in division (B) of section3840
5739.17 of the Revised Code, without first having a license as3841
required by that section.3842

       (B) No person shall continue to engage in the business of3843
selling at retail or sell at retail incidental to any other3844
regularly conducted business after the license issued to that3845
person pursuant to section 5739.17 of the Revised Code has been3846
revoked under section 5739.19 of the Revised Code or while the3847
license is suspended by the tax commissioner under division (B)(2)3848
of section 5739.30 of the Revised Code, nor shall any person3849
obtain a new license from the county auditor or the tax3850
commissioner while such revocation or suspension is in effect. If3851
a corporation's license has been revoked or suspended, none of its3852
officers, or employees having control or supervision of or charged3853
with the responsibility of filing returns and making payments of3854
tax due, shall obtain a license from the county auditor or the tax3855
commissioner during the period of such revocation or suspension.3856

       Sec. 5739.99.  (A) Whoever violates section 5739.26 or3857
5739.29 of the Revised Code shall be fined not less than3858
twenty-five nor more than one hundred dollars for a first offense;3859
for each subsequent offense such person shall, if a corporation,3860
be fined not less than one hundred nor more than five hundred3861
dollars, or if an individual, or a member of a partnership, firm,3862
or association, be fined not less than twenty-five nor more than3863
one hundred dollars, or imprisoned not more than sixty days, or3864
both.3865

       (B) Whoever violates division (A) of section 5739.30 of the3866
Revised Code shall be fined not less than one hundred nor more3867
than one thousand dollars, or imprisoned not more than sixty days,3868
or both.3869

       (C)(1) Whoever violates division (A)(1) of section 5739.313870
of the Revised Code shall be fined not less than twenty-five nor3871
more than one hundred dollars. If the offender previously has3872
been convicted of a violation of division (A)(1) of section3873
5739.31 of the Revised Code, hethe offender is guilty of a felony3874
of the fourth degree.3875

       (2) Whoever violates division (A)(2) of section 5739.31 of3876
the Revised Code shall be fined not less than one hundred dollars3877
nor more than five hundred dollars, or imprisoned for not more3878
than ten days, or both, for the first offense; for each subsequent3879
offense, each such person shall be fined not less than one3880
thousand dollars nor more than twenty-five hundred dollars, or3881
imprisoned not more than thirty days, or both. The motor vehicles3882
and goods of any person charged with violating division (A)(2) of3883
section 5739.31 of the Revised Code may be impounded and held3884
pending the disposition of the charge, and may be sold at auction3885
by the county sheriff in the manner prescribed by law to satisfy3886
any fine imposed by this division.3887

       (3) Whoever violates division (A)(3) of section 5739.31 of3888
the Revised Code shall be fined not less than twenty-five nor more3889
than one hundred dollars.3890

       (4)(3) Whoever violates division (B) of section 5739.31 of3891
the Revised Code is guilty of a felony of the fourth degree. Each3892
day that business is conducted while a vendor's license is3893
suspended or revoked constitutes a separate offense.3894

       (D) Except as otherwise provided in this section, whoever3895
violates sections 5739.01 to 5739.31 of the Revised Code, or any3896
lawful rule promulgated by the department of taxation under3897
authority of such sections, shall be fined not less than3898
twenty-five nor more than one hundred dollars.3899

       (E) Whoever violates section 5739.12 of the Revised Code by3900
failing to remit to the state the tax collected under section3901
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code is3902
guilty of a felony of the fourth degree and shall suffer the loss3903
of histhe person's vendor's license as required by section3904
5739.17 of the Revised Code. A person shall not be eligible for a3905
vendor's license for two years following conviction.3906

       (F) Whoever violates division (D)(E) of section 5739.17 of3907
the Revised Code is guilty of failure to display a transient or3908
limited vendor's license, a minor misdemeanor. A sheriff or3909
police officer in a municipal corporation may enforce this3910
division. The prosecuting attorney of a county shall inform the3911
tax commissioner of any instance when a complaint is brought3912
against a transient or limited vendor pursuant to this division.3913

       (G) Whoever violates section 5739.103 of the Revised Code3914
shall be fined not less than twenty-five nor more than one hundred3915
dollars. If the offender previously has been convicted of3916
violating that section, hethe offender is guilty of a felony of3917
the fourth degree.3918

       (H) The penalties provided in this section are in addition3919
to any penalties imposed by the tax commissioner under section3920
5739.133 of the Revised Code.3921

       Sec. 5740.01. As used in this chapter:3922

        (A) "Agreement" means the streamlined sales and use tax3923
agreement as amended and adopted on January 27, 2001, by the3924
national conference of state legislatures' special task force on3925
state and local taxation of telecommunications and electronic3926
commerce, and unanimously adopted by the national conference of3927
state legislatures' executive committee, and as subsequently3928
amended and adopted by the member states.3929

        (B) "Certified automated system" means software certified3930
jointly by the member states to calculate the sales or use tax3931
imposed by each jurisdiction on a transaction, determine the3932
amount of tax to remit to the appropriate state, and maintain a3933
record of the transaction.3934

        (C) "Certified service provider" means an agent certified3935
jointly by the member states to perform all of the seller's sales3936
and use tax functions.3937

       (D) "Member state" means any state that is a signatory to the3938
agreement.3939

        (E) "Person" means an individual, trust, estate, fiduciary,3940
partnership, limited liability company, limited liability3941
partnership, corporation, or any other legal entity.3942

        (F) "Sales tax" means the tax levied by section 5739.02,3943
5739.021, 5739.023, 5739.026, or 5739.10 of the Revised Code.3944

        (G) "Seller" means any person making sales, leases, or3945
rentals of personal property or services.3946

        (H) "State" means any state of the United States and the3947
District of Columbia.3948

        (I) "Use tax" means the tax levied by section 5741.02,3949
5741.021, 5741.022, or 5741.023 of the Revised Code. 3950

       Sec. 5740.02. The state of Ohio shall participate in3951
discussions with other states regarding the development of a3952
streamlined sales and use tax system to reduce the burden and cost3953
for all sellers to collect this state's sales and use taxes. The3954
state also shall participate in multi-state discussions to review3955
or amend the terms of the agreement to simplify and modernize3956
sales and use tax administration that embodies the requirements3957
set forth in section 5740.05 of the Revised Code. For purposes of3958
these discussions, the state shall be represented by three3959
delegates. The tax commissioner or the commissioner's designee3960
shall be the chairperson of the delegation. The other delegates3961
shall be one delegate chosen by the speaker of the house of3962
representatives and one delegate chosen by the president of the3963
senate. In all matters where voting by the member states is3964
required to amend the agreement, the chairperson, based on the3965
votes of the majority of the delegation, shall cast this state's3966
vote.3967

       Sec. 5740.03. Subject to section 5740.05 of the Revised Code,3968
the tax commissioner may enter into the agreement with one or more3969
states. In furtherance of the agreement, the commissioner may act3970
jointly with other member states to establish standards for3971
certification of service providers and automated systems,3972
establish performance standards for multi-state sellers, and3973
procure goods and services. The commissioner may take other3974
actions reasonably required to implement this chapter, including3975
adopting rules.3976

       Sec. 5740.04. (A) No provision of the agreement, in whole or3977
in part, invalidates or amends the law of this state. Adoption of3978
the agreement by this state does not amend the law of this state.3979
Implementation in this state of any condition of the agreement,3980
whether adopted before, at, or after membership of this state in3981
the agreement, must be by the action of this state.3982

        (B) The agreement is an accord among individual cooperating3983
sovereigns in furtherance of their governmental functions. The3984
agreement provides a mechanism among the member states to3985
establish and maintain a cooperative, simplified system for the3986
application and administration of sales and use taxes under the3987
duly adopted laws of each member state. 3988

       Sec. 5740.05. The tax commissioner shall not enter into the3989
agreement unless the agreement requires each state to meet the3990
requirements set forth in divisions (A) to (I) of this section.3991
The agreement shall:3992

        (A) Set restrictions to limit over time the number of state3993
sales and use tax rates;3994

        (B) Establish uniform standards for attributing the source3995
of transactions to taxing jurisdictions, the administration of3996
exempt sales, and sales and use tax returns and remittances;3997

        (C) Provide a central, electronic registration system that3998
allows a seller to register to collect sales and use taxes for,3999
and remit them to, all member states;4000

        (D) Provide that registration with the central registration4001
system and the collection of sales and use taxes in the member4002
states will not be used as a factor in determining whether the4003
seller has nexus with a state for any tax;4004

        (E) Provide for reduction of the burdens of complying with4005
local sales and use taxes through the following:4006

        (1) Restricting variances between the state and local tax4007
bases;4008

        (2) Requiring states to administer any sales and use taxes4009
levied by local jurisdictions within the states so that sellers4010
collecting and remitting those taxes will not have to register or4011
file returns with, remit funds to, or be subject to independent4012
audits from, local taxing jurisdictions;4013

        (3) Restricting the frequency of changes in the local sales4014
and use tax rates and setting effective dates for the application4015
of local jurisdictional boundary changes to local sales and use4016
taxes;4017

        (4) Providing notice to sellers and certified service4018
providers of changes in local sales and use tax rates and in the4019
boundaries of local taxing jurisdictions.4020

        (F) Outline any monetary allowances that are to be provided4021
by the member states to sellers or certified service providers.4022
The agreement must allow for a joint public and private sector4023
study of the compliance cost on sellers and certified service4024
providers to collect sales and use taxes for state and local4025
governments under various levels of complexity, to be completed by4026
July 1, 2002.4027

        (G) Require each state to certify compliance with the terms4028
of the agreement prior to becoming a member of the agreement, and4029
to maintain compliance, under the laws of the member state, with4030
all provisions of the agreement while a member;4031

        (H) Require each member state to adopt a uniform policy for4032
certified service providers that protects the privacy of consumers4033
and maintains the confidentiality of tax information;4034

        (I) Provide for the appointment of an advisory council of4035
private sector representatives and an advisory council of4036
non-member state representatives to consult with in the4037
administration of the agreement. 4038

       Sec. 5740.06. (A) The agreement binds and inures only to the4039
benefit of this state and the other member states. No person,4040
other than a member state, is an intended beneficiary of the4041
agreement. Any benefit to a person other than a state is4042
established by the law of this state and the other member states4043
and not by the terms of the agreement.4044

        (B) Consistent with division (A) of this section, no person4045
shall have any cause of action or defense under the agreement or4046
by virtue of this state's approval of the agreement. No person4047
may challenge, in any action brought under any provision of law,4048
any action or inaction by any department, agency, or other4049
instrumentality of this state, or any political subdivision of4050
this state, on the ground that the action or inaction is4051
inconsistent with the agreement.4052

        (C) No law of this state, or the application thereof, may4053
be declared invalid as to any person or circumstance on the ground4054
that the law or application of it is inconsistent with the4055
agreement. 4056

       Sec. 5740.07. (A) A certified service provider is the agent4057
of the seller with whom the certified service provider has4058
contracted for the collection and remittance of sales and use4059
taxes. As the seller's agent, the certified service provider is4060
liable for sales and use taxes due each member state on all sales4061
transactions it processes for the seller, except as provided in4062
this section.4063

        A seller that contracts with a certified service provider is4064
not liable to the state for sales or use taxes due on transactions4065
processed by the certified service provider, unless the seller4066
misrepresented the type of tangible personal property or services4067
it sells, or committed fraud. In the absence of probable cause to4068
believe that the seller made a material misrepresentation or has4069
committed fraud, the seller is not subject to audit of the4070
transactions processed by the certified service provider. A4071
seller is subject to audit for transactions not processed by a4072
certified service provider. The member states acting jointly may4073
perform a system check of the seller and review the seller's4074
procedures to determine if the certified service provider's system4075
is functioning properly and the extent to which the seller's4076
transactions are being processed by the provider.4077

        (B) A person who provides a certified automated system is4078
responsible for the proper functioning of that system and is4079
liable to this state for underpayments of the sales and use tax4080
attributable to errors in the functioning of that system. A4081
seller that uses a certified automated system remains responsible4082
and is liable to this state for reporting and remitting sales and4083
use taxes.4084

        (C) A seller that has a proprietary system for determining4085
the amount of sales or use tax due on transactions and has signed4086
a performance agreement establishing tax performance standards for4087
that system is liable for the failure of the system to meet the4088
performance standards. 4089

       Sec. 5740.08. (A) A certified service provider shall4090
preserve the privacy of consumers who buy, lease, or rent tangible4091
personal property or services from sellers with whom the provider4092
has contracted for the collection and remittance of sales and use4093
taxes to this state. The provider shall use a certified automated4094
system to perform sales and use tax calculations, remittances, and4095
reporting that does not retain the personally identifiable4096
information of consumers, except as follows:4097

        (1) To determine whether a consumer's status or intended4098
use of the goods or services purchased is exempt from the sales or4099
use tax;4100

        (2) To investigate fraud by a consumer or seller;4101

        (3) To the extent necessary to ensure the reliability of4102
the providers' technology and certified automated system in4103
performing all of a seller's sales and use tax functions.4104

        The provider shall provide technical, physical, and4105
administrative safeguards to protect personally identifiable4106
information from unauthorized access and disclosure.4107

        (B) A certified service provider shall provide to consumers4108
clear and conspicuous notice of its information retention and4109
sharing practices, including what information it collects, how the4110
information collected is used, and whether the information is4111
disclosed to other member states. A provider that retains4112
personally identifiable information in accordance with division4113
(A) of this section shall notify consumers of its intent to retain4114
such information and shall afford consumers reasonable access to4115
their data and the opportunity to correct inaccurately recorded4116
data.4117

        (C) If any person, other than a member state, seeks to4118
discover a consumer's personally identifiable information, a4119
reasonable and timely effort shall be made by the provider to4120
notify the consumer of such request.4121

        (D) Notwithstanding this section, the laws of this state4122
regarding the collection, use, and maintenance of confidential4123
taxpayer information remain applicable and binding. The agreement4124
does not enlarge or limit this state's authority to do any of the4125
following:4126

        (1) Conduct audits or other reviews as provided under the4127
agreement or state law;4128

        (2) Provide records pursuant to section 149.43 of the4129
Revised Code or to governmental agencies under disclosure laws;4130

        (3) Prevent the disclosure of confidential taxpayer4131
information in accordance with Title LVII of the Revised Code;4132

        (4) Prevent, consistent with federal law, the disclosure or4133
misuse of federal return information obtained under a disclosure4134
agreement with the Internal Revenue Service;4135

        (5) Collect, disclose, disseminate, or otherwise use4136
anonymous data for governmental purposes.4137

        (E) This section does not enlarge or limit the privacy4138
policies of any seller that has selected a certified service4139
provider as its agent to perform all of the seller's sales and use4140
tax functions.4141

        (F) A certified service provider that fails to comply with4142
this section is subject to investigation by the tax commissioner4143
or the commissioner's agents and the attorney general, and to 4144
prosecution by the attorney general. 4145

       Sec. 5741.01.  As used in this chapter:4146

       (A) "Person" includes individuals, receivers, assignees,4147
trustees in bankruptcy, estates, firms, partnerships,4148
associations, joint-stock companies, joint ventures, clubs,4149
societies, corporations, business trusts, governments, and4150
combinations of individuals of any form.4151

       (B) "Storage" means and includes any keeping or retention in4152
this state for use or other consumption in this state.4153

       (C) "Use" means and includes the exercise of any right or4154
power incidental to the ownership of the thing used. A thing is4155
also "used" in this state if its consumer gives or otherwise4156
distributes it, without charge, to recipients in this state.4157

       (D) "Purchase" means acquired or received for a4158
consideration, whether such acquisition or receipt was effected by4159
a transfer of title, or of possession, or of both, or a license to4160
use or consume; whether such transfer was absolute or conditional,4161
and by whatever means the transfer was effected; and whether the4162
consideration was money, credit, barter, or exchange. Purchase4163
includes production, even though the article produced was used,4164
stored, or consumed by the producer. The transfer of copyrighted4165
motion picture films for exhibition purposes is not a purchase,4166
except such films as are used solely for advertising purposes.4167

       (E) "Seller" means the person from whom a purchase is made,4168
and includes every person engaged in this state or elsewhere in4169
the business of selling tangible personal property or providing a4170
service for storage, use, or other consumption or benefit in this4171
state; and when, in the opinion of the tax commissioner, it is4172
necessary for the efficient administration of this chapter, to4173
regard any salesman, representative, peddler, or canvasser as the4174
agent of a dealer, distributor, supervisor, or employer under whom4175
hethe person operates, or from whom hethe person obtains4176
tangible personal property, sold by himthe person for storage,4177
use, or other consumption in this state, irrespective of whether4178
or not hethe person is making such sales on histhe person's own4179
behalf, or on behalf of such dealer, distributor, supervisor, or4180
employer, the commissioner may regard himthe person as such4181
agent, and may regard such dealer, distributor, supervisor, or4182
employer as the seller. "Seller" does not include any person to4183
the extent the person provides a communications medium, such as,4184
but not limited to, newspapers, magazines, radio, television, or4185
cable television, by means of which sellers solicit purchases of4186
their goods or services.4187

       (F) "Consumer" means any person who has purchased tangible4188
personal property or has been provided a service for storage, use,4189
or other consumption or benefit in this state. "Consumer" does4190
not include a person who receives, without charge, tangible4191
personal property or a service.4192

       A person who performs a facility management or similar4193
service contract for a contractee is a consumer of all tangible4194
personal property and services purchased for use in connection4195
with the performance of such contract, regardless of whether title4196
to any such property vests in the contractee. The purchase of4197
such property and services is not subject to the exception for4198
resale under division (E)(1) of section 5739.01 of the Revised4199
Code.4200

       (G)(1) "Price," except in the case of watercraft, outboard4201
motors, or new motor vehicles, means the aggregate value in money4202
of anything paid or delivered, or promised to be paid or4203
delivered, by a consumer to a seller in the complete performance4204
of the transaction by which tangible personal property has been4205
purchased or a service has been provided for storage, use, or4206
other consumption or benefit in this state, without any deduction4207
or exclusion on account of the cost of the property sold, cost of4208
materials used, labor or service cost, interest, discount paid or4209
allowed after the sale is consummated, or any other expense. If4210
the transaction consists of the rental or lease of tangible4211
personal property, "price" means the aggregate value in money of4212
anything paid or delivered, or promised to be paid or delivered by4213
the lessee to the lessor, in the complete performance of the4214
rental or lease, without any deduction or exclusion of tax,4215
interest, labor or service charge, damage liability waiver,4216
termination or damage charge, discount paid or allowed after the4217
lease is consummated, or any other expense. The tax shall be4218
calculated and collected by the lessor on each payment made by the4219
lessee. If a consumer produces the tangible personal property4220
used by himthe consumer, the price is the produced cost of such4221
tangible personal property. The"Price" does not include delivery4222
charges that are separately stated on the initial invoice or4223
initial billing rendered by the seller.4224

       The tax collected by the seller from the consumer under such4225
sectionsthis chapter is not a part of the price, but is a tax4226
collection for the benefit of the state, and of counties levying4227
an additional use tax pursuant to section 5741.021 or 5741.023 of4228
the Revised Code and of transit authorities levying an additional4229
use tax pursuant to section 5741.022 of the Revised Code and,4230
except for the discount authorized under section 5741.12 of the4231
Revised Code, no person other than the state or such a county or4232
transit authority shall derive any benefit from the collection or4233
payment of such tax.4234

       As used in division (G)(1) of this section, "delivery4235
charges" means charges by the seller for preparation and delivery4236
to a location designated by the consumer of tangible personal4237
property or a service, including transportation, shipping,4238
postage, handling, crating, and packing.4239

       (2) In the case of watercraft, outboard motors, or new motor4240
vehicles, "price" has the same meaning as in division (H) of4241
section 5739.01 of the Revised Code.4242

       (3) In the case of a nonresident business consumer that4243
purchases and uses tangible personal property outside this state4244
and subsequently temporarily stores, uses, or otherwise consumes4245
such tangible personal property in the conduct of business in this4246
state, the consumer or the tax commissioner may determine the4247
price based on the value of the temporary storage, use, or other4248
consumption, in lieu of determining the price pursuant to division4249
(G)(1) of this section. A price determination made by the4250
consumer is subject to review and redetermination by the4251
commissioner.4252

       (4) In the case of tangible personal property held in this4253
state as inventory for sale or lease, and that is temporarily4254
stored, used, or otherwise consumed in a taxable manner, the price4255
is the value of the temporary use. A price determination made by4256
the consumer is subject to review and redetermination by the4257
commissioner.4258

       (5) In the case of tangible personal property originally4259
purchased and used by the consumer outside this state, and that4260
becomes permanently stored, used, or otherwise consumed in this4261
state more than six months after its acquisition by the consumer,4262
the consumer or the tax commissioner may determine the price based4263
on the current value of such tangible personal property, in lieu4264
of determining the price pursuant to division (G)(1) of this4265
section. A price determination made by the consumer is subject to4266
review and redetermination by the commissioner.4267

       (H) "Nexus with this state" means that the seller engages in4268
continuous and widespread solicitation of purchases from residents4269
of this state or otherwise purposefully directs its business4270
activities at residents of this state.4271

       (I) "Substantial nexus with this state" means that the4272
seller has sufficient contact with this state, in accordance with4273
Section 8 of Article I of the Constitution of the United States,4274
to allow the state to require the seller to collect and remit use4275
tax on sales of tangible personal property or services made to4276
consumers in this state. "Substantial nexus with this state"4277
exists when the seller does any of the following:4278

       (1) Maintains a place of business within this state, whether4279
operated by employees or agents of the seller, by a member of an4280
affiliated group, as described in division (B)(3)(e) of section4281
5739.01 of the Revised Code, of which the seller is a member, or4282
by a franchisee using a trade name of the seller;4283

       (2) Regularly has employees, agents, representatives,4284
solicitors, installers, repairmen, salesmen, or other individuals4285
in this state for the purpose of conducting the business of the4286
seller;4287

       (3) Uses a person in this state for the purpose of receiving4288
or processing orders of the seller's goods or services;4289

       (4) Makes regular deliveries of tangible personal property4290
into this state by means other than common carrier;4291

       (5) Has membership in an affiliated group, as described in4292
division (B)(3)(e) of section 5739.01 of the Revised Code, at4293
least one other member of which has substantial nexus with this4294
state;4295

       (6) Owns tangible personal property that is rented or leased4296
to a consumer in this state, or offers tangible personal property,4297
on approval, to consumers in this state;4298

       (7) IsExcept as provided in section 5703.65 of the Revised4299
Code, is registered with the secretary of state to do business in4300
this state or is registered or licensed by any state agency,4301
board, or commission to transact business in this state or to make4302
sales to persons in this state;4303

       (8) Has any other contact with this state that would allow4304
this state to require the seller to collect and remit use tax4305
under Section 8 of Article I of the Constitution of the United4306
States.4307

       (J) "Fiscal officer" means, with respect to a regional4308
transit authority, the secretary-treasurer thereof, and with4309
respect to a county which is a transit authority, the fiscal4310
officer of the county transit board appointed pursuant to section4311
306.03 of the Revised Code or, if the board of county4312
commissioners operates the county transit system, the county4313
auditor.4314

       (K) "Territory of the transit authority" means all of the4315
area included within the territorial boundaries of a transit4316
authority as they from time to time exist. Such territorial4317
boundaries must at all times include all the area of a single4318
county or all the area of the most populous county which is a part4319
of such transit authority. County population shall be measured by4320
the most recent census taken by the United States census bureau.4321

       (L) "Transit authority" means a regional transit authority4322
created pursuant to section 306.31 of the Revised Code or a county4323
in which a county transit system is created pursuant to section4324
306.01 of the Revised Code. For the purposes of this chapter, a4325
transit authority must extend to at least the entire area of a4326
single county. A transit authority which includes territory in4327
more than one county must include all the area of the most4328
populous county which is a part of such transit authority. County4329
population shall be measured by the most recent census taken by4330
the United States census bureau.4331

       (M) "Providing a service" has the same meaning as in4332
division (X) of section 5739.01 of the Revised Code.4333

       (N) "Other consumption" includes receiving the benefits of a4334
service.4335

       (O) "Certified service provider" has the same meaning as in4336
section 5740.01 of the Revised Code.4337

       Sec. 5741.02.  (A) For the use of the general revenue fund4338
of the state, an excise tax is hereby levied on the storage, use,4339
or other consumption in this state of tangible personal property4340
or the benefit realized in this state of any service provided. The4341
tax shall be collected pursuant to the schedules in section4342
5739.025 of the Revised Code.4343

       (B) Each consumer, storing, using, or otherwise consuming in4344
this state tangible personal property or realizing in this state4345
the benefit of any service provided, shall be liable for the tax,4346
and such liability shall not be extinguished until the tax has4347
been paid to this state; provided, that the consumer shall be4348
relieved from further liability for the tax if the tax has been4349
paid to a seller in accordance with section 5741.04 of the Revised4350
Code or prepaid by the seller in accordance with section 5741.064351
of the Revised Code.4352

       (C) The tax does not apply to the storage, use, or4353
consumption in this state of the following described tangible4354
personal property or services, nor to the storage, use, or4355
consumption or benefit in this state of tangible personal property4356
or services purchased under the following described circumstances:4357

       (1) When the sale of property or service in this state is4358
subject to the excise tax imposed by sections 5739.01 to 5739.314359
of the Revised Code, provided said tax has been paid;4360

       (2) Except as provided in division (D) of this section,4361
tangible personal property or services, the acquisition of which,4362
if made in Ohio, would be a sale not subject to the tax imposed by4363
sections 5739.01 to 5739.31 of the Revised Code;4364

       (3) Property or services, the storage, use, or other4365
consumption of or benefit from which this state is prohibited from4366
taxing by the Constitution of the United States, laws of the4367
United States, or the Constitution of this state. This exemption4368
shall not exempt from the application of the tax imposed by this4369
section the storage, use, or consumption of tangible personal4370
property that was purchased in interstate commerce, but that has4371
come to rest in this state, provided that fuel to be used or4372
transported in carrying on interstate commerce that is stopped4373
within this state pending transfer from one conveyance to another4374
is exempt from the excise tax imposed by this section and section4375
5739.02 of the Revised Code;4376

       (4) Transient use of tangible personal property in this4377
state by a nonresident tourist or vacationer, or a non-business4378
use within this state by a nonresident of this state, if the4379
property so used was purchased outside this state for use outside4380
this state and is not required to be registered or licensed under4381
the laws of this state;4382

       (5) Tangible personal property or services rendered, upon4383
which taxes have been paid to another jurisdiction to the extent4384
of the amount of the tax paid to such other jurisdiction. Where4385
the amount of the tax imposed by this section and imposed pursuant4386
to section 5741.021, 5741.022, or 5741.023 of the Revised Code4387
exceeds the amount paid to another jurisdiction, the difference4388
shall be allocated between the tax imposed by this section and any4389
tax imposed by a county or a transit authority pursuant to section4390
5741.021, 5741.022, or 5741.023 of the Revised Code, in proportion4391
to the respective rates of such taxes.4392

       As used in this subdivision, "taxes paid to another4393
jurisdiction" means the total amount of retail sales or use tax or4394
similar tax based upon the sale, purchase, or use of tangible4395
personal property or services rendered legally, levied by and paid4396
to another state or political subdivision thereof, or to the4397
District of Columbia, where the payment of such tax does not4398
entitle the taxpayer to any refund or credit for such payment.4399

       (6) The transfer of a used manufactured home or used mobile4400
home, as defined by section 5739.0210 of the Revised Code, made on4401
or after January 1, 2000;4402

       (7) Drugs that are or are intended to be distributed free of4403
charge to a practitioner licensed to prescribe, dispense, and4404
administer drugs to a human being in the course of a professional4405
practice and that by law may be dispensed only by or upon the4406
order of such a practitioner.4407

       (D) The tax applies to the storage, use, or other4408
consumption in this state of tangible personal property or4409
services, the acquisition of which at the time of sale was4410
excepted under division (E)(1) of section 5739.01 of the Revised4411
Code from the tax imposed by section 5739.02 of the Revised Code,4412
but which has subsequently been temporarily or permanently stored,4413
used, or otherwise consumed in a taxable manner.4414

       (E)(1) If any transaction is claimed to be exempt under4415
division (E) of section 5739.01 of the Revised Code or under4416
section 5739.02 of the Revised Code, with the exception of4417
divisions (B)(1) to (11) or (28) of section 5739.02 of the Revised4418
Code, the consumer shall furnishprovide to the seller, and the4419
seller shall obtain from the consumer, a certificate specifying4420
the reason that the transaction is not subject to the tax. The4421
certificate shall be provided either in a hard copy form or4422
electronic form, as prescribed by the tax commissioner. If the4423
transaction is claimed to be exempt under division (B)(13) of4424
section 5739.02 of the Revised Code, the exemption certificate4425
shall be signedprovided by both the contractor and contractee,4426
and the. Such contractee shall be deemed to be the consumer of all4427
items purchased under the claim of exemption if it is subsequently4428
determined that the exemption is not properly claimed. The4429
certificate shall be in such form as the tax commissioner by rule4430
prescribes. IfThe seller shall maintain records, including4431
exemption certificates, of all sales on which a consumer has4432
claimed an exemption, and provide them to the tax commissioner on4433
request.4434

       (2) If no certificate is furnishedprovided or obtained4435
within the period for filing the return for the period in which4436
the transaction is consummated, it shall be presumed that the tax4437
applies. The failure to have so furnishedprovided or obtained a4438
certificate shall not preclude a seller or consumer from4439
establishing, within one hundred twenty days of the giving of4440
notice by the commissioner of intention to levy an assessment,4441
that the transaction is not subject to the tax.4442

       (F) A seller who files a petition for reassessment4443
contesting the assessment of tax on transactions for which the4444
seller obtained no valid exemption certificates, and for which the4445
seller failed to establish that the transactions were not subject4446
to the tax during the one-hundred-twenty-day period allowed under4447
division (E) of this section, may present to the tax commissioner4448
additional evidence to prove that the transactions were exempt.4449
The seller shall file such evidence within ninety days of the4450
receipt by the seller of the notice of assessment, except that,4451
upon application and for reasonable cause, the tax commissioner4452
may extend the period for submitting such evidence thirty days.4453

       (G) For the purpose of the proper administration of sections4454
5741.01 to 5741.22 of the Revised Code, and to prevent the evasion4455
of the tax hereby levied, it shall be presumed that any use,4456
storage, or other consumption of tangible personal property in4457
this state is subject to the tax until the contrary is4458
established.4459

       Sec. 5741.05. (A) A seller that collects the tax levied by4460
sections 5741.02, 5741.021, 5741.022, or 5741.023 of the Revised4461
Code on transactions, other than sales of titled motor vehicles,4462
titled watercraft, or titled outboard motors, shall determine4463
under section 5739.033 or 5739.034 of the Revised Code the4464
jurisdiction for which to collect the tax. A vendor or seller of4465
motor vehicles, watercraft, or outboard motors required to be4466
titled in this state shall collect the tax levied by section4467
5739.02 or 5741.02 of the Revised Code and the additional taxes4468
levied by division (A)(1) of section 5741.021, division (A)(1) of4469
section 5741.022, and division (A)(1) of section 5741.023 of the4470
Revised Code for the consumer's county of residence as provided in4471
section 1548.06 and division (B) of section 4505.06 of the Revised4472
Code. 4473

       (B) A vendor or seller is not responsible for collecting or4474
remitting additional tax if a consumer subsequently stores, uses,4475
or consumes the tangible personal property or service in another4476
jurisdiction with a rate of tax imposed by sections 5741.02,4477
5741.021, 5741.022, or 5741.023 of the Revised Code that is higher4478
than the amount collected by the vendor or seller pursuant to4479
Chapter 5739. or 5741. of the Revised Code.4480

       Sec. 5741.08. If modification of a county's jurisdictional4481
boundaries or a transit authority's territory results in a change4482
in the tax rate levied under section 5741.021, 5741.022, or4483
5741.023 of the Revised Code, the tax commissioner, within thirty4484
days of such change, shall notify any seller that is registered4485
with the central electronic registration system provided for in4486
section 5740.05 of the Revised Code or the seller's certified4487
service provider, if the seller has selected one, of such change.4488
The rate change shall not apply until the first day of a calendar 4489
quarter following the expiration of sixty days from the date of 4490
notice by the tax commissioner.4491

       Sec. 5741.12.  (A) Each seller required by section 5741.174492
of the Revised Code to register with the tax commissioner, and any4493
seller authorized by the commissioner to collect the tax imposed4494
by or pursuant to section 5741.02, 5741.021, 5741.022, or 5741.0234495
of the Revised Code is subject to the same requirements and4496
entitled to the same deductions and discount for prompt payments4497
as are vendors under section 5739.12 of the Revised Code, and the4498
same monetary allowances as are vendors under section 5739.06 of4499
the Revised Code. The powers and duties of the commissioner and4500
the treasurer of state with respect to returns and tax remittances4501
under this section shall be identical with those prescribed in4502
section 5739.12 of the Revised Code.4503

       (B) Every person storing, using, or consuming tangible4504
personal property or receiving the benefit of a service, the4505
storage, use, consumption, or receipt of which is subject to the4506
tax imposed by or pursuant to section 5741.02, 5741.021, 5741.022,4507
or 5741.023 of the Revised Code, when such tax was not paid to a4508
seller, shall, on or before the twenty-third day of each month,4509
file with the tax commissioner a return for the preceding month4510
in such form as is prescribed by the commissioner, showing such4511
information as the commissioner deems necessary, and shall pay the4512
tax shown on the return to be due. Remittance shall be made4513
payable to the treasurer of state. The commissioner may require4514
consumers to file returns and pay the tax at other than monthly4515
intervals, if the commissioner determines that such filing is4516
necessary for the efficient administration of the tax. If the4517
commissioner determines that a consumer's tax liability is not4518
such as to merit monthly filing, the commissioner may authorize4519
the consumer to file returns and pay tax at less frequent4520
intervals.4521

       Any consumer required to file a return and pay the tax under4522
this section whose payment for any year indicated in section4523
5741.121 of the Revised Code equals or exceeds the amount shown in4524
that section shall make each payment required by this section in4525
the second ensuing and each succeeding year by means of electronic4526
funds transfer as prescribed by section 5741.121 of the Revised4527
Code, except as otherwise prescribed by that section.4528

       (C) Every person storing, using, or consuming a motor4529
vehicle, watercraft, or outboard motor, the ownership of which4530
must be evidenced by certificate of title, shall file the return4531
required by this section and pay the tax due at or prior to the4532
time of filing an application for certificate of title.4533

       Section 2. That existing sections 307.671, 307.672, 307.674,4534
307.695, 311.37, 311.99, 351.01, 351.021, 351.03, 351.141, 505.56,4535
3715.52, 4501.32, 5739.01, 5739.02, 5739.021, 5739.023, 5739.024,4536
5739.026, 5739.03, 5739.031, 5739.033, 5739.12, 5739.31, 5739.99,4537
5741.01, 5741.02, and 5741.12 of the Revised Code are hereby4538
repealed.4539

       Section 3. Sections 5739.021, 5739.023, 5739.026, 5739.03,4540
5739.031, 5739.033, 5739.12, 5741.02, and 5741.12, and division4541
(I)(7) of section 5741.01 of the Revised Code, as amended by this4542
act, and sections 306.73, 5703.65, 5739.04, 5739.06, 5741.05, and4543
5741.08 of the Revised Code, as enacted by this act, shall take4544
effect July 1, 2003.4545

       Section 4. Section 5739.034 of the Revised Code, as enacted4546
by this act, shall take effect August 1, 2002.4547

       Section 5. That Section 6 of Sub. H.B. 483 of the 123rd4548
General Assembly is hereby repealed.4549

       Section 6. Section 5739.02 of the Revised Code is presented4550
in this act as a composite of the section as amended by both Am.4551
Sub. H.B. 94 and Sub. H.B. 117 of the 124th General Assembly.4552
Section 5739.031 of the Revised Code is presented in this act as a4553
composite of the section as amended by both Am. Sub. H.B. 740 and4554
Sub. H.B. 791 of the 119th General Assembly. The General4555
Assembly, applying the principle stated in division (B) of section4556
1.52 of the Revised Code that amendments are to be harmonized if4557
reasonably capable of simultaneous operation, finds that the4558
composite is the resulting version of the section in effect prior4559
to the effective date of the section as presented in this act.4560