As Introduced

124th General Assembly
Regular Session
2001-2002
S. B. No. 200


SENATOR Spada



A BILL
To amend sections 323.152, 2935.01, 3317.026,1
3734.905, 3734.907, 3769.088, 3924.66, 4305.131,2
4307.05, 4307.07, 4503.065, 5117.071, 5703.05,3
5703.21, 5703.37, 5703.51, 5711.31, 5715.49,4
5715.50, 5717.02, 5727.26, 5727.28, 5727.39,5
5727.47, 5727.471, 5727.89, 5727.91, 5727.93,6
5728.01, 5728.02, 5728.03, 5728.04, 5728.06,7
5728.061, 5728.07, 5728.08, 5728.09, 5728.10,8
5728.11, 5728.13, 5733.021, 5733.04, 5733.05,9
5733.11, 5733.12, 5733.28, 5735.06, 5735.11,10
5735.12, 5735.122, 5735.13, 5735.14, 5735.141,11
5735.142, 5735.18, 5735.311, 5739.01, 5739.011,12
5739.02, 5739.026, 5739.031, 5739.033, 5739.05,13
5739.104, 5739.13, 5739.17, 5739.31, 5739.99,14
5741.01, 5741.13, 5743.05, 5743.081, 5743.53,15
5743.56, 5745.11, 5745.12, 5745.13, 5747.025,16
5747.06, 5747.08, 5747.13, 5749.07, and 5749.08; to17
amend, for the purpose of adopting a new section18
number as indicated in parentheses, section19
5735.311 (5728.05); to enact new sections 5739.0720
and 5741.10 and sections 5703.60, 5703.70, and21
5739.034; and to repeal sections 5728.05, 5735.31,22
5739.07, 5741.10, and 5747.181 of the Revised Code23
to amend the procedures for determining the amounts24
of, and hearing challenges to, various tax25
assessments and refunds, to alter the method of26
adjusting eligibility criteria for the homestead27
exemption, energy subsidies, the credit for28
installation of emergency telephone systems, the29
personal exemption, and the deduction for medical30
savings accounts, to authorize the release by31
public officials of certain information relating to32
vendors, to increase the loss carryover period for33
corporations, to change record-keeping requirements34
for certain taxpayers, to conform state law to35
federal law with regard to taxation of mobile36
telecommunications service, to increase protection37
of tax department employees from assault, and to38
make other changes relating to the administration39
of the tax laws by the Department of Taxation; and40
to amend the versions of sections 5733.021 and41
5733.12 of the Revised Code that are scheduled to42
take effect July 1, 2002, and the versions of43
sections 5727.26, 5728.08, and 5735.06 of the44
Revised Code that are scheduled to take effect45
January 1, 2003, to continue the provisions of this46
act on and after those dates.47


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

       Section 1. That sections 323.152, 2935.01, 3317.026,48
3734.905, 3734.907, 3769.088, 3924.66, 4305.131, 4307.05, 4307.07,49
4503.065, 5117.071, 5703.05, 5703.21, 5703.37, 5703.51, 5711.31,50
5715.49, 5715.50, 5717.02, 5727.26, 5727.28, 5727.39, 5727.47,51
5727.471, 5727.89, 5727.91, 5727.93, 5728.01, 5728.02, 5728.03,52
5728.04, 5728.06, 5728.061, 5728.07, 5728.08, 5728.09, 5728.10,53
5728.11, 5728.13, 5733.021, 5733.04, 5733.05, 5733.11, 5733.12,54
5733.28, 5735.06, 5735.11, 5735.12, 5735.122, 5735.13, 5735.14,55
5735.141, 5735.142, 5735.18, 5735.311, 5739.01, 5739.011, 5739.02,56
5739.026, 5739.031, 5739.033, 5739.05, 5739.104, 5739.13, 5739.17,57
5739.31, 5739.99, 5741.01, 5741.13, 5743.05, 5743.081, 5743.53,58
5743.56, 5745.11, 5745.12, 5745.13, 5747.025, 5747.06, 5747.08,59
5747.13, 5749.07, and 5749.08 be amended; that section 5735.31160
(5728.05) be amended for the purpose of adopting a new section61
number as indicated in parentheses; and that new sections 5739.0762
and 5741.10 and sections 5703.60, 5703.70, and 5739.034 of the63
Revised Code be enacted to read as follows:64

       Sec. 323.152.  In addition to the reduction in taxes required65
under section 319.302 of the Revised Code, taxes shall be reduced66
as provided in divisions (A) and (B) of this section.67

       (A)(1) Division (A) of this section applies to any of the68
following:69

       (a) A person who is permanently and totally disabled;70

       (b) A person who is sixty-five years of age or older;71

       (c) A person who is the surviving spouse of a deceased72
person who was permanently and totally disabled or sixty-five73
years of age or older and who applied and qualified for a74
reduction in taxes under this division in the year of death,75
provided the surviving spouse is at least fifty-nine but not76
sixty-five or more years of age on the date the deceased spouse77
dies.78

       (2) Real property taxes on a homestead owned and occupied,79
or a homestead in a housing cooperative occupied, by a person to80
whom division (A) of this section applies shall be reduced for81
each year for which the owner obtains a certificate of reduction82
from the county auditor under section 323.154 of the Revised Code83
or for which the occupant obtains a certificate of reduction in84
accordance with section 323.159 of the Revised Code. The85
reduction shall equal the amount obtained by multiplying the tax86
rate for the tax year for which the certificate is issued by the87
reduction in taxable value shown in the following schedule:88

Reduce Taxable Value 89
Total Income by the Lesser of: 90

$11,900 or less $5,000 or seventy-five per cent 91
More than $11,900 but not more than $17,500 $3,000 or sixty per cent 92
More than $17,500 but not more than $23,000 $1,000 or twenty-five per cent 93
More than $23,000 -0- 94

       (3) Each calendar year beginning in 1999, the tax95
commissioner shall adjust the foregoing schedule by completing the96
following stepscalculations in September of each year:97

       (a) Determine the percentage increase in the gross domestic98
product deflator determined by the bureau of economic analysis of99
the United States department of commerce from the first day of100
JulyJanuary of the preceding calendar year to the last day of101
JuneDecember of the currentpreceding calendar year;102

       (b) Multiply that percentage increase by each of the total103
income amounts, and by each dollar amount by which taxable value104
is reduced, for the current tax year;105

       (c) Add the resulting product to each of the total income106
amounts, and to each of the dollar amounts by which taxable value107
is reduced, for the current tax year;108

       (d) Round the resulting sum to the nearest multiple of one109
hundred dollars.110

       The commissioner shall certify the amounts resulting from the111
adjustment to each county auditor not later than the first day of112
December each year. The certified amounts apply to the following113
tax year. The commissioner shall not make the adjustment in any114
calendar year in which the amounts resulting from the adjustment115
would be less than the total income amounts, or less than the116
dollar amounts by which taxable value is reduced, for the current117
tax year.118

       (B) Real property taxes on any homestead, and manufactured119
home taxes on any manufactured or mobile home on which a120
manufactured home tax is assessed pursuant to division (D)(2) of121
section 4503.06 of the Revised Code, shall be reduced for each122
year for which the owner obtains a certificate of reduction from123
the county auditor under section 323.154 of the Revised Code. The124
amount of the reduction shall equal one-fourth of the amount by125
which the taxes charged and payable on the homestead or the126
manufactured or mobile home are reduced for such year under127
section 319.302 of the Revised Code.128

       (C) The reductions granted by this section do not apply to129
special assessments or respread of assessments levied against the130
homestead, and if there is a transfer of ownership subsequent to131
the filing of an application for a reduction in taxes, such132
reductions are not forfeited for such year by virtue of such133
transfer.134

       (D) The reductions in taxable value referred to in this135
section shall be applied solely as a factor for the purpose of136
computing the reduction of taxes under this section and shall not137
affect the total value of property in any subdivision or taxing138
district as listed and assessed for taxation on the tax lists and139
duplicates, or any direct or indirect limitations on indebtedness140
of a subdivision or taxing district. If after application of141
sections 5705.31 and 5705.32 of the Revised Code, including the142
allocation of all levies within the ten-mill limitation to debt143
charges to the extent therein provided, there would be144
insufficient funds for payment of debt charges not provided for by145
levies in excess of the ten-mill limitation, the reduction of146
taxes provided for in sections 323.151 to 323.159 of the Revised147
Code, shall be proportionately adjusted to the extent necessary to148
provide such funds from levies within the ten-mill limitation.149

       (E) No reduction shall be made on the taxes due on the150
homestead of any person convicted of violating division (C) or (D)151
of section 323.153 of the Revised Code for a period of three years152
following the conviction.153

       Sec. 2935.01.  As used in this chapter:154

       (A) "Magistrate" has the same meaning as in section 2931.01155
of the Revised Code.156

       (B) "Peace officer" includes, except as provided in section157
2935.081 of the Revised Code, a sheriff; deputy sheriff; marshal;158
deputy marshal; member of the organized police department of any159
municipal corporation, including a member of the organized police160
department of a municipal corporation in an adjoining state161
serving in Ohio under a contract pursuant to section 737.04 of the162
Revised Code; member of a police force employed by a metropolitan163
housing authority under division (D) of section 3735.31 of the164
Revised Code; member of a police force employed by a regional165
transit authority under division (Y) of section 306.05 of the166
Revised Code; state university law enforcement officer appointed167
under section 3345.04 of the Revised Code; enforcement agent of168
the department of public safety designated under section 5502.14169
of the Revised Code; employee of the department of taxation to170
whom investigation powers have been delegated under section171
5743.45 of the Revised Code; employee of the department of natural172
resources who is a natural resources law enforcement staff officer173
designated pursuant to section 1501.013 of the Revised Code, a174
forest officer designated pursuant to section 1503.29 of the175
Revised Code, a preserve officer designated pursuant to section176
1517.10 of the Revised Code, a wildlife officer designated177
pursuant to section 1531.13 of the Revised Code, a park officer178
designated pursuant to section 1541.10 of the Revised Code, or a179
state watercraft officer designated pursuant to section 1547.521180
of the Revised Code; individual designated to perform law181
enforcement duties under section 511.232, 1545.13, or 6101.75 of182
the Revised Code; Ohio veterans' home police officer appointed183
under section 5907.02 of the Revised Code; special police officer184
employed by a port authority under section 4582.04 or 4582.28 of185
the Revised Code; police constable of any township; police186
officer of a township or joint township police district; the house187
sergeant at arms if the house sergeant at arms has arrest188
authority pursuant to division (E)(1) of section 101.311 of the189
Revised Code; and an assistant house sergeant at arms; and, for190
the purpose of arrests within those areas, and for the purposes of191
Chapter 5503. of the Revised Code, and the filing of and service192
of process relating to those offenses witnessed or investigated by193
them, includes the superintendent and troopers of the state194
highway patrol.195

       (C) "Prosecutor" includes the county prosecuting attorney196
and any assistant prosecutor designated to assist the county197
prosecuting attorney, and, in the case of courts inferior to198
courts of common pleas, includes the village solicitor, city199
director of law, or similar chief legal officer of a municipal200
corporation, any such officer's assistants, or any attorney201
designated by the prosecuting attorney of the county to appear for202
the prosecution of a given case.203

       (D) "Offense," except where the context specifically204
indicates otherwise, includes felonies, misdemeanors, and205
violations of ordinances of municipal corporations and other206
public bodies authorized by law to adopt penal regulations.207

       Sec. 3317.026.  (A) As used in this section, "refunded208
taxes" means taxes charged and payable from real and tangible209
personal property, including public utility property, that have210
been found to have been overpaid as the result of reductions in211
the taxable value of such property and that have been refunded,212
including any interest or penalty refunded with those taxes. If213
taxes are refunded over a period of time pursuant to division214
(B)(2), (3), or (4) of section 319.36 or division (C) of section215
5727.471 of the Revised Code, the total amount of taxes required216
to be refunded, excluding any interest accruing after the day the217
undertaking is entered into, shall be considered to have been218
refunded on the day the first portion of the overpayment is paid219
or credited.220

       (B) Not later than the last day of February each year, each221
county auditor shall certify to the tax commissioner, for each222
school district in the county, the amount of refunded taxes223
refunded in the preceding calendar year and the reductions in224
taxable value that resulted in those refunds, except for225
reductions in taxable value that previously have been reported to226
the tax commissioner on an abstract. If the tax commissioner227
determines that the amount of refunded taxes certified for a228
school district exceeds three per cent of the total taxes charged229
and payable for current expenses of the school district for the230
calendar year in which those taxes were refunded, the tax231
commissioner shall certify the reductions in taxable value that232
resulted in those refunds on or before the first day of June to233
the department of education. Upon receiving the certification by234
the tax commissioner, the department of education shall reduce the235
total taxable value of the school district, as defined in section236
3317.02 of the Revised Code, by the total amount of the reductions237
in taxable value that resulted in those refunds for the purpose of238
computing the state aid for the school district for the current239
fiscal year under section 3317.022 of the Revised Code. The240
increase in the amount of such aid resulting from the adjustment241
required by this section shall be paid to the school district on242
or before the thirtieth day of June of the current year.243

       (C) If an adjustment is made under this sectiondivision in244
the amount of state aid paid to a school district, the tax value245
reductions from which that adjustment results shall not be used in246
recomputing aid to a school district under section 3317.027 of the247
Revised Code.248

       (C) Not later than the first day of June each year, the tax249
commissioner shall certify to the department of education for each250
school district the total of the increases in taxable value above251
the amount of taxable value on which tax was paid, as provided in252
division (B)(1) or (2) of section 5727.47 of the Revised Code, as253
determined by the commissioner in the preceding calendar year.254
Upon receiving the certification, the department shall increase255
the total taxable value, as defined in section 3317.02 of the256
Revised Code, of the school district by the total amount of the257
increase in taxable value certified by the commissioner for the258
school district for the purpose of computing the school district's259
state aid for the following fiscal year under section 3317.022 of260
the Revised Code.261

       Sec. 3734.905.  (A) The treasurer of state shall refund the262
fee imposed by section 3734.901 of the Revised Code paid illegally263
or erroneously, or paid on an illegal or erroneous assessment.264
Applications for refund shall be filed with the tax commissioner265
on a form prescribed by himthe commissioner, within four years of266
the illegal or erroneous payment of the fee. Upon267

       On the filing of the application, the commissioner shall268
determine the amount of refund due andto which the applicant is269
entitled. If the amount is not less than that claimed, the270
commissioner shall certify thatthe amount to the director of271
budget and management and treasurer of state for payment from the272
tax refund fund created by section 5703.052 of the Revised Code.273
If the amount is less than that claimed, the commissioner shall274
proceed in accordance with section 5703.70 of the Revised Code.275

       If the application for refund is for fees paid on an illegal276
or erroneous assessment, the certified amount shall include277
interest calculated at the rate per annum pursuant toprescribed278
by section 5703.47 of the Revised Code from the date of279
overpayment to the date of the commissioner's certification.280

       (B) When the fee imposed pursuant to section 3734.901 of the281
Revised Code has been paid on tires that are sold by a retail282
dealer or wholesale distributor to a motor vehicle manufacturer,283
or to a wholesale distributor or retail dealer for the purpose of284
resale outside this state, the seller in this state is entitled to285
a refund of the amount of the fee actually paid on the tires. To286
obtain a refund under this division, the seller shall apply to the287
tax commissioner, shall furnish documentary evidence satisfactory288
to the tax commissioner that the price paid by the purchaser did289
not include the fee, and shall provide the name and address of the290
purchaser to the tax commissioner. The seller shall apply on the291
form prescribed by the tax commissioner, within four years after292
the date of the sale. Upon receipt of an application, the tax293
commissioner shall determine the amount of any refund due and294
shall certify that amount to the director of budget and management295
and the treasurer of state for payment from the tax refund fund296
created in section 5703.052 of the Revised Code.297

       (C) If any person entitled to a refund of fees under this298
section, or section 5703.70 of the Revised Code, is indebted to299
the state for any tax administered by the tax commissioner, or any300
charge, penalties, or interest arising from such tax, the amount301
allowable on the application for refund first shall be applied in302
satisfaction of the debt.303

       Sec. 3734.907.  (A) Any person required to pay the fee304
imposed by section 3734.901 of the Revised Code is personally305
liable for the fee. The tax commissioner may make an assessment,306
based upon any information in the commissioner's possession,307
against any person who fails to file a return or pay any fee,308
interest, or additional charge as required by sections 3734.90 to309
3734.9014 of the Revised Code. The commissioner shall give the310
person assessed written notice of the assessment asin the manner311
provided in section 5703.37 of the Revised Code. With the notice,312
the commissioner shall provide instructions on how to petition for313
reassessment and request a hearing on the petition.314

       (B) When the information in the possession of the tax315
commissioner indicates that a person liable for the fee imposed by316
section 3734.901 of the Revised Code has not paid the full amount317
of fee due, the commissioner may audit a representative sample of318
the person's business and may issue an assessment based on the319
audit.320

       (C) A penalty of up to fifteen per cent may be added to all321
amounts assessed under this section. The commissioner may adopt322
rules providing for the imposition and remission of the penalties.323

       (D) Unless the person assessed files with the tax324
commissioner within sixty days after service of the notice of325
assessment, either personally or by certified mail as provided in326
section 5703.056 of the Revised Code, a written petition for327
reassessment in writingsigned by the person assessed or thethat328
person's authorized agent having knowledge of the facts, the329
assessment becomes final and the amount of the assessment is due330
and payable from the person assessed to the treasurer of state. A331
The petition shall indicate the objections to the assessment of332
the person assessed, but additional objections may be raised in333
writing if received by the commissioner prior to the date shown on334
the final determination of the person assessed, but additional335
objections may be raised in writing prior to the date shown on the336
final determination of the tax commissioner. The commissioner337
shall grant the petitioner a hearing on the petition, unless338
waived by the petitioner.339

       The commissioner may make any correction to the assessment340
that the commissioner finds proper and shall issue a final341
determination thereon. The commissioner shall serve a copy of342
the final determination on the petitioner either by personal343
service or by certified mail, and the commissioner's decision in344
the matter is final, subject to appeal under section 5717.02 of345
the Revised Code. If the petition has been properly filed, the346
commissioner shall proceed under section 5703.60 of the Revised347
Code.348

       (E) After an assessment becomes final, if any portion of the349
assessment, including accrued interest, remains unpaid, a350
certified copy of the tax commissioner's entry making the351
assessment final may be filed in the office of the clerk of the352
court of common pleas in the county in which the person assessed353
resides or in which the person's business is conducted. If the354
person assessed maintains no place of business in this state and355
is not a resident of this state, the certified copy of the entry356
may be filed in the office of the clerk of the court of common357
pleas of Franklin county.358

       The clerk, immediatelyImmediately upon the filing of the359
entry, the clerk shall enter a judgment for the state against the360
person assessed in the amount shown to be dueon the entry. The361
judgment may be filed by the clerk in a loose-leaf book entitled362
"special judgments for state tire fee," and shall have the same363
effect as other judgments. Execution shall issue upon the364
judgment upon the request of the tax commissioner, and all laws365
applicable to sales on execution shall apply to sales made under366
the judgment.367

       The portion of the assessment not paid within sixty days368
after the day the assessment was issued shall bear interest at the369
rate per annum prescribed by section 5703.47 of the Revised Code370
from the day the tax commissioner issues the assessment until the371
day the assessment is paid. Interest shall be paid in the same372
manner as the fee and may be collected by the issuance of an373
assessment under this section.374

       (F) If the tax commissioner believes that collection of the375
fee will be jeopardized unless proceedings to collect or secure376
collection of the fee are instituted without delay, the377
commissioner may issue a jeopardy assessment against the person378
liable for the fee. UponImmediatly upon the issuance of the379
jeopardy assessment, the commissioner immediately shall file an380
entry with the clerk of the court of common pleas in the manner381
prescribed by division (E) of this section. Notice of the382
jeopardy assessment shall be served on the person assessed or the383
person's legal representative, as provided in section 5703.37 of384
the Revised Code, within five days of the filing of the entry with385
the clerk. The total amount assessed is immediately due and386
payable, unless the person assessed files a petition for387
reassessment in accordance with division (D) of this section and388
provides security in a form satisfactory to the commissioner and389
in an amount sufficient to satisfy the unpaid balance of the390
assessment. Full or partial payment of the assessment does not391
prejudice the commissioner's consideration of the petition for392
reassessment.393

       (G) All money collected by the tax commissioner under this394
section shall be paid to the treasurer of state as revenue arising395
from the fee imposed by section 3734.901 of the Revised Code.396

       Sec. 3769.088.  (A) If any permit holder required by this397
chapter to pay the taxes levied by sections 3769.08, 3769.087,398
3769.26, and 3769.28 of the Revised Code fails to pay the taxes,399
the tax commissioner may make an assessment against the permit400
holder based upon any information in the commissioner's401
possession.402

       A penalty of up to fifteen per cent may be added to the403
amount of every assessment made under this section. The404
commissioner may adopt rules providing for the imposition and405
remission of penalties added to assessments made under this406
section.407

       The commissioner shall give the party assessed written notice408
of the assessment asin the manner provided in section 5703.37 of409
the Revised Code. With the notice, the commissioner shall provide410
instructions on how to petition for reassessment and request a411
hearing on the petition.412

       (B) Unless the party to whom the notice of assessment is413
directedassessed files with the tax commissioner within sixty414
days after service of the notice of assessment, either personally415
or by certified mail, a written petition for reassessment in416
writing, signed by the party assessed, or by thethat party's417
authorized agent having knowledge of the facts, the assessment418
shall becomebecomes final and the amount of the assessment shall419
beis due and payable from the party assessed to the tax420
commissioner. The petition shall indicate the objections of the421
party assessed, but additional objections may be raised in writing422
if received by the commissioner prior to the date shown on the423
final determination by the commissioner.424

       Unless the petitioner waives a hearing, the commissioner425
shall assign a time and place for the hearing on the petition and426
notify the petitioner of the time and place of the hearing by427
personal service or certified mail, but the commissioner may428
continue the hearing from time to time if necessary.429

       The commissioner may make such correction to the assessment430
as the commissioner finds proper. The commissioner shall serve a431
copy of the commissioner's final determination on the petitioner432
by personal service or certified mail, and the commissioner's433
decision in the matter shall be final, subject to appeal as434
provided in section 5717.02 of the Revised Code. Only objections435
decided on the merits by the board of tax appeals or a court shall436
be given collateral estoppel or res judicata effect in considering437
an application for refund of amounts paid pursuant to the438
assessment. If the petition has been properly filed, the439
commissioner shall proceed under section 5703.60 of the Revised440
Code.441

       (C) After an assessment becomes final, if any portion of the442
assessment remains unpaid, including accrued interest, a certified443
copy of the tax commissioner's entry making the assessment final444
may be filed in the office of the clerk of the court of common445
pleas in the county in which the place, track, or enclosure for446
which the permit was issued is located or the county in which the447
party assessed resides or has its principal place of business. If448
the party assessed maintains no place of business in this state449
and is not a resident of this state, the certified copy of the450
entry may be filed in the office of the clerk of the court of451
common pleas of Franklin county.452

       The clerk, immediatelyImmediately upon the filing of such453
the entry, the clerk shall enter a judgment for the state against454
the party assessed in the amount shown on the entry. The judgment455
may be filed by the clerk in a loose-leaf book entitled "special456
judgments for state horse racing tax," and shall have the same457
effect as other judgments. Execution shall issue upon the judgment458
upon the request of the tax commissioner, and all laws applicable459
to sales on execution shall apply to sales made under the460
judgment.461

       The portion of the assessment not paid within sixty days462
after the day the assessment was issued shall bear interest at the463
rate per annum prescribed by section 5703.47 of the Revised Code464
from the day the tax commissioner issues the assessment until the465
day the assessment is paid. Interest shall be paid in the same466
manner as the tax and may be collected by the issuance of an467
assessment under this section.468

       (D) All money collected by the tax commissioner under this469
section shall be treated as revenue arising from the taxes imposed470
by sections 3769.08, 3769.087, 3769.26, and 3769.28 of the Revised471
Code.472

       Sec. 3924.66.  (A) In determining Ohio adjusted gross income473
under Chapter 5747. of the Revised Code, an account holder may474
deduct an amount equaling the total of the deposits that the475
account holder, the account holder's spouse, or the account476
holder's employer made to the account during the taxable year, to477
the extent that the funds for the deposits have not otherwise been478
deducted or excluded in determining the account holder's federal479
adjusted gross income. The amount deducted by an account holder480
for a taxable year shall not exceed three thousand dollars. If481
two married persons each have an account, each spouse may claim482
the deduction described in this section, and the amount deducted483
by each spouse shall not exceed three thousand dollars, whether484
the spouses file returns jointly or separately.485

       (B) The maximum deduction allowed under division (A) of this486
section shall be adjusted annually by the department of taxation487
to reflect increases in the consumer price index for all items for488
all urban consumers for the north centralmidwest region, as489
publisheddetermined by the United States bureau of labor490
statistics for the period of the first day of January of the491
preceding calendar year to the last day of December of the492
preceding calendar year. The department of taxation shall493
determine in September of each tax year the adjustment that will494
be effective for the succeeding tax year. The department shall495
not make the adjustment in any tax year in which the maximum496
deduction resulting from the adjustment is less than the maximum497
deduction allowed for the previous tax year.498

       (C) In determining Ohio adjusted gross income under Chapter499
5747. of the Revised Code, an account holder may deduct the500
investment earnings of a medical savings account from the account501
holder's federal adjusted gross income, to the extent that these502
earnings have been included in the account holder's federal503
adjusted gross income.504

       (D) In determining Ohio adjusted gross income under Chapter505
5747. of the Revised Code, an account holder shall add to the506
account holder's federal adjusted gross income an amount equal to507
the sum of the amounts described in divisions (D)(1) and (2) of508
this section to the extent that those amounts were included in the509
account holder's federal adjusted gross income and previously510
deducted in determining the account holder's Ohio adjusted gross511
income. In determining the extent to which amounts withdrawn from512
the account shall be included in the account holder's Ohio513
adjusted gross income, the tax commissioner shall be guided by the514
provisions of sections 72 and 408 of the Internal Revenue Code515
governing the determination of the amount of withdrawals from an516
individual retirement account to be included in federal gross517
income.518

       (1) Amounts withdrawn from the account during the taxable519
year used for any purpose other than to reimburse the account520
holder for, or to pay, the eligible medical expenses of the521
account holder or the account holder's spouse or dependents;522

       (2) Investment earnings during the taxable year on amounts523
withdrawn from the account that are described in division (D)(1)524
of this section.525

       (E) Amounts withdrawn from a medical savings account to526
reimburse the account holder for, or to pay, the account holder's527
eligible medical expenses, or the eligible medical expenses of the528
account holder's spouse or dependents, shall not be included in529
the account holder's Ohio adjusted gross income in determining530
taxes due under Chapter 5747. of the Revised Code.531

       (F) If a dependent of an account holder becomes ineligible532
to continue to participate in the account holder's policy, plan,533
or contract of health coverage, the account holder may withdraw534
funds from the account holder's account and use those funds to pay535
the premium for the first year of a policy, plan, or contract of536
health coverage for the dependent and to pay any deductible for537
the first year of that policy, plan, or contract. Funds withdrawn538
and used for that purpose shall not be included in the account539
holder's Ohio adjusted gross income in determining taxes due under540
Chapter 5747. of the Revised Code.541

       Sec. 4305.131.  (A) If any permit holder fails to pay the542
taxes levied inby section 4301.42, 4301.43, 4301.432, or 4305.01543
of the Revised Code in the manner prescribed by section 4303.33 of544
the Revised Code, or inby section 4301.421 or 4301.424 of the545
Revised Code in the manner prescribed in section 4301.422 of the546
Revised Code, and by the rules of the tax commissioner, the547
commissioner may make an assessment against the permit holder548
based upon any information in the commissioner's possession.549

       No assessment shall be made against any permit holder for any550
taxes imposed by section 4301.42, 4301.421, 4301.424, 4301.43,551
4301.432, or 4305.01 of the Revised Code more than three years552
after the last day of the calendar month in which the sale was553
made or more than three years after the return for that period is554
filed, whichever is later. This section does not bar an555
assessment against any permit holder or registrant as provided in556
section 4303.331 of the Revised Code who fails to file a return as557
required by section 4301.422 or 4303.33 of the Revised Code, or558
who files a fraudulent return.559

       A penalty of up to thirty per cent may be added to the amount560
of every assessment made under this section. The commissioner may561
adopt rules providing for the imposition and remission of562
penalties added to assessments made under this section.563

       The commissioner shall give the party assessed written notice564
of the assessment asin the manner provided in section 5703.37 of565
the Revised Code. With the notice, the commissioner shall provide566
instructions on how to petition for reassessment and request a567
hearing on the petition.568

       (B) Unless the party to whom the notice of assessment is569
directedassessed files with the tax commissioner within sixty570
days after service of the notice of assessment, either personally571
or by certified mail as provided in section 5703.056 of the572
Revised Code, a written petition for reassessment in writing,573
signed by the party assessed, or by that party's authorized agent574
having knowledge of the facts, the assessment shall becomebecomes575
final and the amount of the assessment shall beis due and payable576
from the party assessed to the treasurer of state. The petition577
shall indicate the objections of the party assessed, but578
additional objections may be raised in writing if received by the579
commissioner prior to the date shown on the final determination by580
the commissioner.581

       Unless the petitioner waives a hearing, the commissioner582
shall assign a time and place for the hearing on the petition and583
notify the petitioner of the time and place of the hearing by584
personal service or certified mail, but the commissioner may585
continue the hearing from time to time if necessary.586

        The commissioner may make such correction to the assessment587
as the commissioner finds proper. The commissioner shall serve a588
copy of the final determination on the petitioner by personal589
service or certified mail, and the commissioner's decision in the590
matter shall be final, subject to appeal as provided in section591
5717.02 of the Revised Code. Only objections decided on the merits592
by the board of tax appeals or a court shall be given collateral593
estoppel or res judicata effect in considering an application for594
refund of amounts paid pursuant to the assessment. If the petition595
has been properly filed, the commissioner shall proceed under596
section 5703.60 of the Revised Code.597

       (C) After an assessment becomes final, if any portion of the598
assessment remains unpaid, including accrued interest, a certified599
copy of the tax commissioner's entry making the assessment final600
may be filed in the office of the clerk of the court of common601
pleas in the county in which the permit holder's place of business602
is located or the county in which the party assessed resides. If603
the party assessed maintains no place of business in this state604
and is not a resident of this state, the certified copy of the605
entry may be filed in the office of the clerk of the court of606
common pleas of Franklin county.607

       The clerk, immediatelyImmediately upon the filing of the608
entry, the clerk shall enter a judgment for the state against the609
party assessed in the amount shown on the entry. The judgment may610
be filed by the clerk in a loose-leaf book entitled "special611
judgments for state beer and liquor sales taxes," and shall have612
the same effect as other judgments. Execution shall issue upon613
the judgment upon the request of the tax commissioner, and all614
laws applicable to sales on execution shall apply to sales made615
under the judgment, except as otherwise provided in this chapter616
and Chapters 4301. and 4307. of the Revised Code.617

       The portion of the assessment not paid within sixty days618
after the day the assessment was issued shall bear interest at the619
rate per annum prescribed by section 5703.47 of the Revised Code620
from the day the tax commissioner issues the assessment until it621
is paid. Interest shall be paid in the same manner as the tax and622
may be collected by the issuance of an assessment under this623
section.624

       (D) All money collected under this section shall be625
considered as revenue arising from the taxes imposed by sections626
4301.42, 4301.421, 4301.424, 4301.43, 4301.432, and 4305.01 of the627
Revised Code.628

       Sec. 4307.05.  (A) The tax commissioner shall refund to629
persons required to pay the tax levied under section 4301.42,630
4301.421, 4301.424, 4301.43, 4301.432, 4303.33, or 4305.01 of the631
Revised Code the amount of tax paid illegally or erroneously or632
paid on an illegal or erroneous assessment. Applications for633
refund shall be filed with the commissioner, on the form634
prescribed by the commissioner, within three years from the date635
of the illegal or erroneous payment of the tax or assessment. Upon636

       On the filing of the application, the commissioner shall637
determine the amount of the refund due andto which the applicant638
is entitled. If the amount is not less than that claimed, the639
commissioner shall certify the amount to the director of budget640
and management and treasurer of state for payment from the tax641
refund fund created by section 5703.052 of the Revised Code. If642
the amount is less than that claimed, the commissioner shall643
proceed in accordance with section 5703.70 of the Revised Code.644



       (B) The holder of a B-3 permit is entitled to a refund of646
the actual amount of tax paid on wine sold for sacramental647
purposes, upon conditionthe conditions that the permit holder648
make affidavit that the wine was so sold, that the tax had been649
paid on the wine, and that the permit holder furnish both of the650
following:651

       (1) A written acknowledgment from the purchaser that the652
purchaser has received the wine and that the price paid did not653
include the tax;654

       (2) The name and address of the purchaser.655

       Application for a refund shall be made as an application for656
refund of tax erroneously paid and shall be subject to the657
requirements and procedures of division (A) of this section. On658
the filing of the application, the commissioner shall determine659
the amount of refund due and certify that amount to the director660
of budget and management and treasurer of state for payment from661
the tax refund fund. When a refund is granted for payment of an662
illegal or erroneous assessment issued by the commissioner, the663
refund shall include interest on the amount of the refund from the664
date of the overpayment. The interest shall be computed at the665
rate per annum prescribed by section 5703.47 of the Revised Code.666

       Sec. 4307.07.  When tax has been paid on bottled beverages667
and such bottled beverages are sold and shipped in interstate or668
foreign commerce, or transported by either the purchaser or seller669
out of the state for the purpose of resale outside the state, the670
seller in this state is entitled to a refund of the actual amount671
of tax paid, upon condition that hethe seller furnishes672
documentary evidence satisfactory to the tax commissioner, which673
may be from the usual business records of the taxpayer, that the674
price paid did not include the tax, together with the name and675
address of the purchaser. The commissioner may adopt rules676
providing for refund to manufacturers or dealers of the amount of677
tax paid on such bottled beverage whichthat becomes unfit for678
sale, or any similar loss whichthat may occur, on proof of such679
loss. An application shall be filed with the commissioner, on the680
form prescribed by himthe commissioner for such purpose, within681
ninety days from the date such beverages are sold and shipped in682
interstate or foreign commerce, or from the date that such683
beverages become unfit for sale or any similar loss occurs. On684

       On the filing of suchthe application, the commissioner685
shall determine the amount of refund due andto which the686
applicant is entitled. If the amount is not less than that687
claimed, the commissioner shall certify suchthe amount to the688
director of budget and management and treasurer of state for689
payment from the tax refund fund created by section 5703.052 of690
the Revised Code.691

       If the amount is less than that claimed, the commissioner692
shall proceed in accordance with section 5703.70 of the Revised693
Code.694

       Sec. 4503.065.  (A) This section applies to any of the695
following:696

       (1) An individual who is permanently and totally disabled;697

       (2) An individual who is sixty-five years of age or older;698

       (3) An individual who is the surviving spouse of a deceased699
person who was permanently and totally disabled or sixty-five700
years of age or older and who applied and qualified for a701
reduction in assessable value under this section in the year of702
death, provided the surviving spouse is at least fifty-nine but703
not sixty-five or more years of age on the date the deceased704
spouse dies.705

       (B)(1) The manufactured home tax on a manufactured or mobile706
home that is paid pursuant to division (C) of section 4503.06 of707
the Revised Code and that is owned and occupied as a home by an708
individual whose domicile is in this state and to whom this709
section applies, shall be reduced for any tax year for which the710
owner obtains a certificate of reduction from the county auditor711
under section 4503.067 of the Revised Code, provided the712
individual did not acquire ownership from a person, other than the713
individual's spouse, related by consanguinity or affinity for the714
purpose of qualifying for the reduction in assessable value. An715
owner includes a settlor of a revocable inter vivos trust holding716
the title to a manufactured or mobile home occupied by the settlor717
as of right under the trust. The reduction shall equal the amount718
obtained by multiplying the tax rate for the tax year for which719
the certificate is issued by the reduction in assessable value720
shown in the following schedule.721

Reduce Assessable Value 722
Total Income by the Lesser of: 723
Column A             Column B 724

$11,900 or less $5,000 or seventy-five per cent 725
More than $11,900 but not more than $17,500 $3,000 or sixty per cent 726
More than $17,500 but not more than $23,000 $1,000 or twenty-five per cent 727
More than $23,000 -0- 728

       (2) Each calendar year beginning in 1999, the tax729
commissioner shall adjust the foregoing schedule by completing the730
following stepscalculations in September of each year:731

       (a) Determine the percentage increase in the gross domestic732
product deflator determined by the bureau of economic analysis of733
the United States department of commerce from the first day of734
JulyJanuary of the preceding calendar year to the last day of735
JuneDecember of the currentpreceding calendar year;736

       (b) Multiply that percentage increase by each of the total737
income amounts, and by each dollar amount by which assessable738
value is reduced, for the ensuing tax year;739

       (c) Add the resulting product to each of the total income740
amounts, and to each of the dollar amounts by which assessable741
value is reduced, for the ensuing tax year;742

       (d) Round the resulting sum to the nearest multiple of one743
hundred dollars.744

       The commissioner shall certify the amounts resulting from the745
adjustment to each county auditor not later than the first day of746
December each year. The certified amounts apply to the second747
ensuing tax year. The commissioner shall not make the adjustment748
in any calendar year in which the amounts resulting from the749
adjustment would be less than the total income amounts, or less750
than the dollar amounts by which assessable value is reduced, for751
the ensuing tax year.752

       (C) If the owner or the spouse of the owner of a753
manufactured or mobile home is eligible for a homestead exemption754
on the land upon which the home is located, the reduction in755
assessable value to which the owner or spouse is entitled under756
this section shall not exceed the difference between the reduction757
in assessable value to which the owner or spouse is entitled under758
column A of the above schedule and the amount of the reduction in759
taxable value that was used to compute the homestead exemption.760

       (D) No reduction shall be made on the assessable value of761
the home of any person convicted of violating division (C) or (D)762
of section 4503.066 of the Revised Code for a period of three763
years following the conviction.764

       Sec. 5117.071.  (A) EachIn September of each year, the tax765
commissioner shall adjust the total income amounts set forth in766
sections 5117.07 and 5117.09 of the Revised Code to be used for767
applications submitted for the heating season commencing in the768
next calendar year, by completing the following steps:769

       (1) Determine the percentage increase in the gross domestic770
product deflator determined by the bureau of economic analysis of771
the United States department of commerce for the preceding year;772

       (2) Multiply that percentage increase by each of the total773
income amounts for the preceding year;774

       (3) Add the resulting products to each of the total income775
amounts for the preceding year;776

       (4) Round the resulting sums upward to the nearest multiple777
of ten dollars.778

       The commissioner shall not make the adjustment in any year in779
which the amounts resulting from the adjustment would be less than780
the total income amounts for the preceding year.781

       (B) EachIn September of each year, the tax commissioner also782
shall adjust the current total income amounts set forth in783
sections 5117.07 and 5117.09 of the Revised Code. For any year,784
the current total income amounts shall equal one-half of the785
respective total income amounts set forth in those sections and786
adjusted under division (A) of this section for that year.787

       (C) Each year, the tax commissioner shall provide both the788
adjusted total income amounts referred to in division (A) of this789
section and the current total income amounts referred to in790
division (B) of this section to the director of development.791

       (D) The director of development and each energy company and792
energy dealer shall use the adjusted total income amounts and the793
current total income amounts determined under divisions (A) and794
(B) of this section in performing their duties under sections795
5117.01 to 5117.12 of the Revised Code.796

       Sec. 5703.05.  All powers, duties, and functions of the797
department of taxation are vested in and shall be performed by the798
tax commissioner, which powers, duties, and functions shall799
include, but shall not be limited to, the following:800

       (A) Prescribing all blank forms which the department is801
authorized to prescribe, and to provide such forms and distribute802
the same as required by law and the rules of the department. The803
tax commissioner shall include a mail-in registration form804
prescribed in section 3503.14 of the Revised Code within the805
return and instructions for the tax levied in odd-numbered years806
under section 5747.02 of the Revised Code, beginning with the tax807
levied for 1995. The secretary of state shall bear all costs for808
the inclusion of the mail-in registration form. That form shall809
be addressed for return to the office of the secretary of state.810

       (B) Exercising the authority provided by law, including811
orders from bankruptcy courts, relative to remitting or refunding812
taxes or assessments, including penalties and interest thereon,813
illegally or erroneously assessed or collected, or for any other814
reason overpaid, and in addition, the commissioner may on written815
application of any person, firm, or corporation claiming to have816
overpaid to the treasurer of state at any time within five years817
prior to the making of such application any tax payable under any818
law which the department of taxation is required to administer819
which does not contain any provision for refund, or on the820
commissioner's own motion investigate the facts and make in821
triplicate a written statement of the commissioner's findings,822
and, if the commissioner finds that there has been an overpayment,823
issue in triplicate a certificate of abatement payable to the824
taxpayer, the taxpayer's assigns, or legal representative which825
shows the amount of the overpayment and the kind of tax overpaid.826
One copy of such statement shall be entered on the journal of the827
commissioner, one shall be certified to the attorney general, and828
one certified copy shall be delivered to the taxpayer. All copies829
of the certificate of abatement shall be transmitted to the830
attorney general, and if the attorney general finds it to be831
correct the attorney general shall so certify on each copy, and832
deliver one copy to the taxpayer, one copy to the commissioner,833
and the third copy to the treasurer of state. Except as provided834
in sections 5725.08 and 5725.16 of the Revised Code the taxpayer's835
copy of any certificates of abatement may be tendered by the payee836
or transferee thereof to the treasurer of state as payment, to the837
extent of the amount thereof, of any tax payable to the treasurer838
of state.839

       (C) Exercising the authority provided by law relative to840
consenting to the compromise and settlement of tax claims;841

       (D) Exercising the authority provided by law relative to the842
use of alternative tax bases by taxpayers in the making of843
personal property tax returns;844

       (E) Exercising the authority provided by law relative to845
authorizing the prepayment of taxes on retail sales of tangible846
personal property or on the storage, use, or consumption of847
personal property, and waiving the collection of such taxes from848
the consumers;849

       (F) Exercising the authority provided by law to revoke850
licenses;851

       (G) Maintaining a continuous study of the practical852
operation of all taxation and revenue laws of the state, the853
manner in which and extent to which such laws provide revenues for854
the support of the state and its political subdivisions, the855
probable effect upon such revenue of possible changes in existing856
laws, and the possible enactment of measures providing for other857
forms of taxation. For this purpose the commissioner may858
establish and maintain a division of research and statistics, and859
may appoint necessary employees who shall be in the unclassified860
civil service; the results of such study shall be available to the861
members of the general assembly and the public.862

       (H) Making all tax assessments, valuations, findings,863
determinations, computations, and orders the department of864
taxation is by law authorized and required to make and, pursuant865
to time limitations provided by law, on the commissioner's own866
motion, reviewing, redetermining, or correcting any tax867
assessments, valuations, findings, determinations, computations,868
or orders the commissioner has made, but the commissioner shall869
not review, redetermine, or correct any tax assessment, valuation,870
finding, determination, computation, or order which the871
commissioner has made as to which an appeal or application for872
rehearing, review, redetermination, or correction has been filed873
with the board of tax appeals, unless such appeal or application874
is withdrawn by the appellant or applicant or dismissed;875

       (I) Appointing not more than five deputy tax commissioners,876
who, under such regulations as the rules of the department of877
taxation prescribe, may act for the commissioner in the878
performance of such duties as the commissioner prescribes in the879
administration of the laws which the commissioner is authorized880
and required to administer, and who shall serve in the881
unclassified civil service at the pleasure of the commissioner,882
but if a person who holds a position in the classified service is883
appointed, it shall not affect the civil service status of such884
person. The commissioner may designate not more than two of the885
deputy commissioners to act as commissioner in case of the886
absence, disability, or recusal of the commissioner or vacancy in887
the office of commissioner. The commissioner may adopt rules888
relating to the order of precedence of such designated deputy889
commissioners and to their assumption and administration of the890
office of commissioner.891

       (J) Appointing and prescribing the duties of all other892
employees of the department of taxation necessary in the893
performance of the work of the department which the tax894
commissioner is by law authorized and required to perform, and895
creating such divisions or sections of employees as, in the896
commissioner's judgment, is proper;897

       (K) Organizing the work of the department, which the898
commissioner is by law authorized and required to perform, so899
that, in the commissioner's judgment, an efficient and economical900
administration of the laws will result;901

       (L) Maintaining a journal, which is open to public902
inspection, in which the tax commissioner shall keep a record of903
all actions taken byfinal determinations of the commissioner904
relating to assessments and the reasons therefor;905

       (M) Adopting and promulgating, in the manner provided by906
section 5703.14 of the Revised Code, all rules of the department,907
including rules for the administration of sections 3517.16,908
3517.17, and 5747.081 of the Revised Code;909

       (N) Destroying any or all returns or assessment certificates910
in the manner authorized by law;911

       (O) Adopting rules, in accordance with division (B) of912
section 325.31 of the Revised Code, governing the expenditure of913
moneys from the real estate assessment fund under that division.914

       Sec. 5703.21.  (A) Except as provided in divisions (B) and915
(C) of this section, no agent of the department of taxation,916
except in the agent's report to the department or when called on917
to testify in any court or proceeding, shall divulge any918
information acquired by the agent as to the transactions,919
property, or business of any person while acting or claiming to920
act under orders of the department. Whoever violates this921
provision shall thereafter be disqualified from acting as an922
officer or employee or in any other capacity under appointment or923
employment of the department.924

       (B)(1) For purposes of an audit pursuant to section 117.15925
of the Revised Code, or an audit of the department pursuant to926
Chapter 117. of the Revised Code, or an audit, pursuant to that927
chapter, the objective of which is to express an opinion on a928
financial report or statement prepared or issued pursuant to929
division (A)(7) or (9) of section 126.21 of the Revised Code, the930
officers and employees of the auditor of state charged with931
conducting the audit shall have access to and the right to examine932
any state tax returns and state tax return information in the933
possession of the department to the extent that the access and934
examination are necessary for purposes of the audit. Any935
information acquired as the result of that access and examination936
shall not be divulged for any purpose other than as required for937
the audit or unless the officers and employees are required to938
testify in a court or proceeding under compulsion of legal939
process. Whoever violates this provision shall thereafter be940
disqualified from acting as an officer or employee or in any other941
capacity under appointment or employment of the auditor of state.942

       (2) As provided by section 6103(d)(2) of the Internal943
Revenue Code, any federal tax returns or federal tax information944
that the department has acquired from the internal revenue945
service, through federal and state statutory authority, may be946
disclosed to the auditor of state solely for purposes of an audit947
of the department.948

       (C) Division (A) of this section does not prohibit any of949
the following:950

       (1) Divulging information contained in applications,951
complaints, and related documents filed with the department under952
section 5715.27 of the Revised Code or in applications filed with953
the department under section 5715.39 of the Revised Code;954

       (2) Providing information to the office of child support955
within the department of job and family services pursuant to956
section 3125.43 of the Revised Code;957

       (3) Disclosing to the board of motor vehicle collision958
repair registration any information in the possession of the959
department that is necessary for the board to verify the existence960
of an applicant's valid vendor's license and current state tax961
identification number under section 4775.07 of the Revised Code;962

       (4) Providing information to the administrator of workers'963
compensation pursuant to section 4123.591 of the Revised Code;964

       (5) Providing to the attorney general information the965
department obtains under division (J) of section 1346.01 of the966
Revised Code;967

       (6) Permitting properly authorized officers, employees, or968
agents of a municipal corporation from inspecting reports or969
information pursuant to rules adopted under section 5745.16 of the970
Revised Code.971

       (7) Providing information regarding the name, account972
number, or business address of a holder of a vendor's license973
issued pursuant to section 5739.17 of the Revised Code, a holder974
of a direct payment permit issued pursuant to section 5739.031 of975
the Revised Code, or a seller having a use tax account maintained976
pursuant to section 5741.17 of the Revised Code, or information977
regarding the active or inactive status of a vendor's license,978
direct payment permit, or seller's use tax account.979

       Sec. 5703.37. Except as otherwise provided by section980
5711.28, 5711.31, 5727.47, or 5731.27 of the Revised CodeWhenever981
service of a notice or order is required as provided in this982
section, a certified copy of everythe order or notice, service of983
which is required, shall be served upon the person affected984
thereby either by personal deliveryservice or by certified mail.985
Within the time specified in thean order of the department of986
taxation, every person upon whom it is served, if required by the987
order, shall notify the department, in like mannerby personal988
service, certified mail, or a delivery service authorized under989
section 5703.056 of the Revised Code, whether the terms of the990
order are accepted and will be obeyed.991

       Sec. 5703.51.  (A) The tax commissioner shall include in the992
instruction booklet for filing the annual return of personal993
property taxes a general description of the method by which the994
tax is assessed and collected and the rights and responsibilities995
of taxpayers in that process.996

       (B) At or before the commencement of an audit, the tax997
commissioner shall provide to the taxpayer a written description998
of the roles of the department of taxation and of the taxpayer999
during an audit and a statement of the taxpayer's rights,1000
including any right to obtain a refund of an overpayment of a tax.1001
At or before the commencement of an audit, the commissioner shall1002
inform the taxpayer when the audit is considered to have1003
commenced.1004

       (C) With or before the issuance of an assessment, the tax1005
commissioner or county auditor shall provide to the taxpayer:1006

       (1) A written description of the basis for the assessment1007
and any penalty required to be imposed with the assessment;1008

       (2) A written description of the taxpayer's right to appeal1009
the assessment and an explanation of the steps required to request1010
administrative review by the tax commissioner;1011

       (3) A written description of the collection remedies1012
available to the state, including a statement that if the taxpayer1013
fails to pay an amount owed to the stateassessment within thirty1014
sixty days after it is due, the tax commissioner will certify the1015
amount to the attorney general for collection, and a summary of1016
the provisions contained in section 131.02 of the Revised Code.1017

       (D) With or before the issuance of a final determination of1018
the tax commissioner, the commissioner or county auditor shall1019
provide to the taxpayer a written description of the steps1020
required to perfect an appeal to the board of tax appeals.1021

       (E) Except in cases involving suspected criminal violations1022
of the tax law or other criminal activity, the tax commissioner1023
shall conduct an audit of a taxpayer during regular business hours1024
and after providing reasonable notice to the taxpayer. A taxpayer1025
who is unable to comply with a proposed time for an audit on the1026
grounds that the proposed audit would cause inconvenience or1027
hardship must offer reasonable alternative dates for the audit.1028

       (F) At all stages of an audit or the administrative review1029
of the audit by the tax commissioner or county auditor, a taxpayer1030
is entitled to be assisted or represented by an attorney,1031
accountant, bookkeeper, or other tax practitioner. The tax1032
commissioner shall prescribe a form by which a taxpayer may1033
designate such a person to assist or represent himthe taxpayer in1034
the conduct of any proceedings resulting from actions by the tax1035
commissioner or county auditor. In the absence of this form, the1036
commissioner or auditor may accept such other evidence as hethe1037
commissioner considers appropriate that a person is the authorized1038
representative of a taxpayer.1039

       A taxpayer may refuse to answer any questions asked by the1040
person conducting the audit until hethe taxpayer has an1041
opportunity to consult with histhe taxpayer's attorney,1042
accountant, bookkeeper, or other tax practitioner. This division1043
does not authorize the practice of law by a person who is not an1044
attorney.1045

       (G) A taxpayer may record, electronically or otherwise, the1046
audit examination.1047

       (H) The failure of the tax commissioner or county auditor to1048
comply with a provision of this section shall neither excuse a1049
taxpayer from payment of any taxes shown to be owed by himthe1050
taxpayer nor cure any procedural defect in a taxpayer's case.1051

       (I) If the tax commissioner or county auditor fails to1052
substantially comply with the provisions of this section, the1053
commissioner, on application by the taxpayer, shall excuse the1054
taxpayer from penalties and interest arising from the audit or1055
assessment.1056

       A taxpayer shall make application to the commissioner under1057
this division within one year of the date the taxpayer knows of or1058
should have known that the commissioner or county auditor failed1059
to substantially comply with the provisions of this section.1060

       Sec. 5703.60. (A) If a petition for reassessment has been1061
properly filed under a law that specifies that this section1062
applies, the tax commissioner shall proceed as follows:1063

       (1) Except as provided in division (D) of this section, the1064
commissioner may correct the assessment by issuing a corrected1065
assessment. The corrected assessment may reduce or increase the1066
previous assessment, as the commissioner finds proper. The1067
commissioner shall send the corrected assessment by ordinary mail1068
to the same location to which the previous assessment was sent,1069
unless the petitioner notifies the commissioner otherwise. The1070
commissioner's mailing of the corrected assessment is an1071
assessment properly made and issued to the extent that the1072
previous assessment was properly made and issued, notwithstanding1073
any time limitation otherwise imposed by law.1074

       Within sixty days after the mailing of the corrected1075
assessment, the petitioner may file a new petition for1076
reassessment. The petition shall be filed in the same manner as1077
provided by law for filing the original petition. If a new1078
petition is properly filed within the sixty-day period, the1079
commissioner shall proceed under division (A)(2) or (3) of this1080
section. If a new petition is not properly filed within the1081
sixty-day period, the corrected assessment becomes final, and the1082
amount of the corrected assessment is due and payable from the1083
person assessed.1084

       The issuance of a corrected assessment under this division1085
nullifies the petition for reassessment filed before such1086
issuance, and that petition shall not be subject to further1087
administrative review or appeal. The commissioner may issue to1088
the person assessed only one corrected assessment under this1089
division.1090

       (2) The commissioner may cancel the assessment by issuing1091
either a corrected assessment or a final determination. The1092
commissioner may mail the cancellation in the same manner as a1093
corrected assessment under division (A)(1) of this section.1094
Cancellation of an assessment pursuant to this division is not1095
subject to further administrative review or appeal.1096

       (3) If no corrected assessment or final determination is1097
issued under division (A)(1) or (2) of this section, or if a new1098
petition for reassessment is properly filed under division (A)(1)1099
of this section, the commissioner shall review the assessment or1100
corrected assessment petition that is still pending. If the1101
petitioner requests a hearing, the commissioner shall assign a1102
time and place for the hearing and notify the petitioner of such1103
time and place, but the commissioner may continue the hearing from1104
time to time as necessary. Upon completion of the review and1105
hearing, if requested by the person assessed, the commissioner1106
shall either cancel the assessment or corrected assessment by1107
issuing a corrected assessment or final determination under1108
division (A)(2) of this section, or issue a final determination1109
that reduces, affirms, or increases the assessment or corrected1110
assessment, as the commissioner finds proper. If a final1111
determination is issued under this division, a copy of it shall be1112
served on the petitioner in the manner provided by section 5703.371113
of the Revised Code, and it is subject to appeal under section1114
5717.02 of the Revised Code. Only objections decided on the1115
merits by the board of tax appeals or a court shall be given the1116
effect of collateral estoppel or res judicata in considering an1117
application for refund of amounts paid pursuant to the assessment1118
or corrected assessment.1119

       (B) Except as provided in division (D) of this section, in1120
addition to the authority provided in division (A) of this section1121
and division (H) of section 5703.05 of the Revised Code, the tax1122
commissioner, on the commissioner's own motion, may issue a1123
corrected assessment with regard to the assessment of any tax for1124
which a properly filed petition for reassessment would be subject1125
to division (A) of this section. A corrected assessment may be1126
issued under this division only if the previous assessment has not1127
been certified to the attorney general for collection under1128
section 131.02 of the Revised Code, or is not an appeal pursuant1129
to section 5717.02 of the Revised Code. The corrected assessment1130
shall not increase the amount of tax, penalty, or additional1131
charge if the statute of limitations to issue a new assessment for1132
such increase has expired. The corrected assessment shall be1133
issued and reviewed in the same manner as a corrected assessment1134
under division (A)(1) of this section.1135

       (C) If the tax commissioner issues a corrected assessment or1136
final determination under this section that reduces an assessment1137
below the amount paid thereon, and the reduction is made at the1138
written request of the party assessed, either through the filing1139
of a proper petition for reassessment or otherwise, the1140
commissioner shall certify any overpayment as a refund due only to1141
the extent a refund could have been timely claimed when the1142
request was made. If the reduction is made on the commissioner's1143
own motion, the commissioner shall certify any overpayment as a1144
refund due only to the extent a refund could have been timely1145
claimed at the time the reduction was made.1146

       (D) The tax commissioner shall not issue a corrected1147
assessment under division (A)(1) or (B) of this section after the1148
party assessed has requested in writing that the commissioner not1149
use that procedure.1150

       (E) This section does not require the tax commissioner to1151
issue a corrected assessment. 1152

       Sec. 5703.70. (A) On the filing of an application for refund1153
under section 3734.905, 4307.05, 4307.07, 5727.28, 5727.91,1154
5728.061, 5733.12, 5735.122, 5735.13, 5735.14, 5735.141, 5735.142,1155
5735.18, 5739.104, 5743.05, 5743.53, 5745.11, or 5749.08 of the1156
Revised Code, if the tax commissioner determines that the amount1157
of the refund to which the applicant is entitled is less than the1158
amount claimed in the application, the commissioner shall give the1159
applicant written notice by ordinary mail of the amount. The1160
notice shall be sent to the address shown on the application for a1161
refund unless the applicant notifies the commissioner of a1162
different address. The applicant shall have sixty days from the1163
date the commissioner mails the notice to provide additional1164
information to the commissioner or request a hearing, or both.1165

       (B) If the applicant neither requests a hearing nor provides1166
additional information to the tax commissioner within the time1167
prescribed by division (A) of this section, the commissioner shall1168
take no further action, and the refund amount denied becomes1169
final.1170

       (C)(1) If the applicant requests a hearing within the time1171
prescribed by division (A) of this section, the tax commissioner1172
shall assign a time and place for the hearing and notify the1173
applicant of such time and place, but the commissioner may1174
continue the hearing from time to time as necessary. After the1175
hearing, the commissioner may make such adjustments to the refund1176
as the commissioner finds proper, and shall issue a final1177
determination thereon.1178

       (2) If the applicant does not request a hearing, but1179
provides additional information, within the time prescribed by1180
division (A) of this section, the commissioner shall review the1181
information, make such adjustments to the refund as the1182
commissioner finds proper, and issue a final determination1183
thereon.1184

       (3) The commissioner shall serve a copy of the final1185
determination made under division (C)(1) or (2) of this section on1186
the applicant as provided in section 5703.37 of the Revised Code,1187
and the decision is final, subject to appeal under section 5717.021188
of the Revised Code.1189

       (D) The tax commissioner shall certify to the director of1190
budget and management and treasurer of state for payment from the1191
tax refund fund created by section 5703.052 of the Revised Code,1192
the amount to be refunded under division (B) or (C) of this1193
section.1194

       Sec. 5711.31.  Whenever the assessor assesses any property1195
not listed in or omitted from a return, or whenever the assessor1196
assesses any item or class of taxable property listed in a return1197
by the taxpayer in excess of the value or amount thereof as so1198
listed, or without allowing a claim duly made for deduction from1199
the net book value of accounts receivable, or depreciated book1200
value of personal property used in business, so listed, the1201
assessor shall give notice of such assessment to the taxpayer by1202
mail. The mailing of suchthe notice of assessment shall be1203
prima-facie evidence of the receipt of the same by the person to1204
whom such notice is addressed. With the notice, the assessor shall1205
provide instructions on how to petition for reassessment and1206
request a hearing on the petition.1207

       Within sixty days after the mailing of the notice of1208
assessment prescribed in this section, the party assessed may file1209
with the tax commissioner, in person or by certified mail, a1210
written petition for reassessment in writing, signed by the party1211
assessed, or by thethat party's authorized agent having knowledge1212
of the facts. If the petition is filed by certified mail, the1213
date of the United States postmark placed on the sender's receipt1214
by the postal employee to whom the petition is presented shall be1215
treated as the date of filing. The petition shall have attached1216
thereto and incorporated therein by reference a true copy of the1217
notice of assessment complained of, but the failure to attach a1218
copy of such notice and incorporate it by reference does not1219
invalidate the petition. The petition also shall indicate the1220
objections of the party assessed, but additional objections may be1221
raised in writing if received prior to the date shown on the final1222
determination by the commissioner.1223

       Upon receipt of a properly filed petition, the commissioner1224
shall notify the treasurer of state or the auditor and treasurer1225
of each county having any part of the assessment entered on the1226
tax list or duplicate.1227

       UnlessIf the petitioner waivesrequests a hearing on the1228
petition, the commissioner shall assign a time and place for the1229
hearing on the petition and notify the petitioner of thesuch time1230
and place of the hearing by personal service or certified mail,1231
but the commissioner may continue the hearing from time to time if1232
as necessary.1233

       The commissioner may make such correctioncorrections to the1234
assessment, as the commissioner finds proper. The commissioner1235
shall serve a copy of the commissioner's final determination on1236
the petitioner by personal service or by certified mail, andin1237
the manner provided in section 5703.37 of the Revised Code. The1238
commissioner's decision in the matter shall beis final, subject1239
to appeal as provided inunder section 5717.02 of the Revised1240
Code. The commissioner also shall transmit a copy of the1241
commissioner's final determination to the treasurer of state or1242
applicable county auditor. In the absence of any further appeal,1243
or when a decision of the board of tax appeals or of any court to1244
which the decision has been appealed becomes final, the1245
commissioner shall notify the treasurer of state or the proper1246
county auditor of such final determination. If the final1247
determination orders correction of the assessment, the1248
notification may be in the form of a corrected assessment1249
certificate. Upon receipt of the notification, the treasurer of1250
state or the proper county auditor shall make any corrections to1251
the treasurer's or auditor's records and tax lists and duplicates1252
required in accordance therewith and proceed as prescribed by1253
section 5711.32 or 5725.22 of the Revised Code.1254

       The decision of the commissioner upon such petition for1255
reassessment shall be final with respect to the assessment of all1256
taxable property listed in the return of the taxpayer and shall1257
constitute to that extent the final determination of the1258
commissioner with respect to such assessment. Neither this1259
section nor a final judgment of the board of tax appeals or any1260
court to which such final determination may be appealed shall1261
preclude the subsequent assessment in the manner authorized by law1262
of any taxable property which such taxpayer failed to list in such1263
return, or which the assessor has not theretofore assessed.1264

       As used in this section, "taxpayer" includes financial1265
institutions, dealers in intangibles, and domestic insurance1266
companies as defined in section 5725.01 of the Revised Code.1267

       Sec. 5715.49. No(A) Except as provided in division (B) of1268
this section, no former or present county auditor or member of a1269
county board of revision shall divulge, except in the performance1270
of hisofficial duties or upon the order of the department of1271
taxation, or when called upon to testify in any court or1272
proceeding, any information acquired by him in the exercise of the1273
powers vested in him by the laws relating to taxation, or while1274
claiming to exercise any such powers, as to the transactions,1275
property, or business of any person, company, firm, corporation,1276
association, or partnership. Whoever violates this section shall1277
thereafter be disqualified from acting in any official capacity in1278
connection with the assessment or collection of taxes or1279
recoupment charges.1280

       (B) Division (A) of this section does not prohibit a county1281
auditor from divulging the name and business address of a vendor,1282
a vendor's license number, or information regarding the active or1283
inactive status of a vendor's license issued by the county auditor1284
pursuant to section 5739.17 of the Revised Code.1285

       Sec. 5715.50. No(A) Except as provided in division (B) of1286
this section, no former or present expert, clerk, or employee of a1287
county auditor, county board of revision, or the tax commissioner,1288
and no former or present deputy, assistant, or agent of the tax1289
commissioner shall divulge, except in the performance of his1290
official duties or in hisany report to the county auditor, the1291
county board of revision, or the tax commissioner, or when called1292
upon to testify in any court or proceeding, any information1293
acquired by him in the exercise of the powers vested in him1294
therein by any law, or while claiming to exercise such powers, as1295
to the transactions, property, or business of any person, company,1296
firm, corporation, association, or partnership. Whoever violates1297
this section shall thereafter be disqualified from acting in any1298
official capacity in connection with the assessment or collection1299
of taxes or recoupment charges. The1300

       (B) Division (A) of this section does not prohibit the1301
divulgence of:1302

       (1) The name and address of the statutory agent in this1303
state and the names of officers and directors of any corporation1304
are not within the prohibition of this section;1305

       (2) The name and business address of a vendor, vendor's1306
license number, or information regarding the active or inactive1307
status of a vendor's license issued by the county auditor pursuant1308
to section 5739.17 of the Revised Code.1309

       Sec. 5717.02.  Except as otherwise provided by law, appeals1310
from final determinations by the tax commissioner of any1311
preliminary, amended, or final tax assessments, reassessments,1312
valuations, determinations, findings, computations, or orders made1313
by the commissioner may be taken to the board of tax appeals by1314
the taxpayer, by the person to whom notice of the tax assessment,1315
reassessment, valuation, determination, finding, computation, or1316
order by the commissioner is required by law to be given, by the1317
director of budget and management if the revenues affected by such1318
decision would accrue primarily to the state treasury, or by the1319
county auditors of the counties to the undivided general tax funds1320
of which the revenues affected by such decision would primarily1321
accrue. Appeals from the redetermination by the director of1322
development under division (B) of section 5709.64 or division (A)1323
of section 5709.66 of the Revised Code may be taken to the board1324
of tax appeals by the enterprise to which notice of the1325
redetermination is required by law to be given. Appeals from a1326
decision of the tax commissioner concerning an application for a1327
property tax exemption may be taken to the board of tax appeals by1328
a school district that filed a statement concerning such1329
application under division (C) of section 5715.27 of the Revised1330
Code. Appeals from a redetermination by the director of job and1331
family services under section 5733.42 of the Revised Code may be1332
taken by the person to which the notice of the redetermination is1333
required by law to be given under that section.1334

       Such appeals shall be taken by the filing of a notice of1335
appeal with the board, and with the tax commissioner if the tax1336
commissioner's action is the subject of the appeal, with the1337
director of development if that director's action is the subject1338
of the appeal, or with the director of job and family services if1339
that director's action is the subject of the appeal. The notice1340
of appeal shall be filed within sixty days after service of the1341
notice of the tax assessment, reassessment, valuation,1342
determination, finding, computation, or order by the commissioner1343
or redetermination by the director has been given as provided in1344
section 5703.37, 5709.64, 5709.66, or 5733.42 of the Revised Code.1345
The notice of such appeal may be filed in person or by certified1346
mail, express mail, or authorized delivery service. If the notice1347
of such appeal is filed by certified mail, express mail, or1348
authorized delivery service as provided in section 5703.056 of the1349
Revised Code, the date of the United States postmark placed on the1350
sender's receipt by the postal service ofor the date of receipt1351
recorded by the authorized delivery service shall be treated as1352
the date of filing. The notice of appeal shall have attached1353
thereto and incorporated therein by reference a true copy of the1354
notice sent by the commissioner or director to the taxpayer,1355
enterprise, or other person of the final determination or1356
redetermination complained of, and shall also specify the errors1357
therein complained of, but failure to attach a copy of such notice1358
and incorporate it by reference in the notice of appeal does not1359
invalidate the appeal.1360

       Upon the filing of a notice of appeal, the tax commissioner1361
or the director, as appropriate, shall certify to the board a1362
transcript of the record of the proceedings before the1363
commissioner or director, together with all evidence considered by1364
the commissioner or director in connection therewith. Such1365
appeals or applications may be heard by the board at its office in1366
Columbus or in the county where the appellant resides, or it may1367
cause its examiners to conduct such hearings and to report to it1368
their findings for affirmation or rejection. The board may order1369
the appeal to be heard upon the record and the evidence certified1370
to it by the commissioner or director, but upon the application of1371
any interested party the board shall order the hearing of1372
additional evidence, and it may make such investigation concerning1373
the appeal as it considers proper.1374

       Sec. 5727.26.  (A) The tax commissioner may make an1375
assessment, based on any information in the commissioner's1376
possession, against any natural gas company or combined company1377
that fails to file a return or pay any tax, interest, or1378
additional charge as required by sections 5727.24 to 5727.29 of1379
the Revised Code. The commissioner shall give the company1380
assessed written notice of the assessment as provided in section1381
5703.37 of the Revised Code. With the notice, the commissioner1382
shall provide instructions on how to petition for reassessment and1383
request a hearing on the petition. A penalty of up to fifteen per1384
cent may be added to all amounts assessed under this section. The1385
tax commissioner may adopt rules providing for the imposition and1386
remission of the penalty.1387

       (B) If a party to whom the notice of assessment is directed1388
objects to the assessment, the party may file a petition for1389
reassessmentUnless the company assessed, within sixty days after1390
service of the notice of assessment, files with the tax1391
commissioner. The, either personally or by certified mail, a1392
written petition must be made in writing, signed by the party or1393
the party'scompany's authorized agent having knowledge of the1394
facts, and filed with the commissioner, either personally or by1395
certified mail, within sixty days after service of the notice of1396
assessment becomes final, and the amount of the assessment is due1397
and payable from the company assessed to the treasurer of state.1398
The petition shall indicate the objections of the company1399
assessed, but additional objections may be raised in writing if1400
received by the commissioner prior to the date shown on the final1401
determination of the commissioner. Upon receipt of1402

       If a petition for reassessment has been properly filed1403
petition, the commissioner shall notify the treasurer of state.1404

       Unless the petitioner waives a hearing, the commissioner1405
shall grant the petitioner a hearing on the petition, assign a1406
time and place for the hearing, and notify the petitioner of the1407
time and place of the hearing as provided inproceed under section1408
5703.375703.60 of the Revised Code. The commissioner may continue1409
the hearing from time to time, if necessary.1410

       If the party to whom the notice of assessment is directed1411
does not file a petition for reassessment, the assessment is final1412
and the amount of the assessment is due and payable from the1413
company assessed to the treasurer of state.1414

       (C) The tax commissioner may make any correction to the1415
assessment that the commissioner finds proper and shall issue a1416
final determination thereon. The commissioner shall serve a copy1417
of the final determination on the petitioner as provided in1418
section 5703.37 of the Revised Code, and the commissioner's1419
decision in the matter is final, subject to appeal under section1420
5717.02 of the Revised Code. The commissioner also shall transmit1421
a copy of the final determination to the treasurer of state. Only1422
objections decided on the merits by the board of tax appeals or a1423
court shall be given collateral estoppel or res judicata effect in1424
considering an application for refund of an amount paid pursuant1425
to the assessment.1426

       (D)(C) After an assessment becomes final, if any portion of1427
the assessment, including accrued interest, remains unpaid, a1428
certified copy of the tax commissioner's entry making the1429
assessment final may be filed in the office of the clerk of the1430
court of common pleas in the county in which the natural gas1431
company's or combined company's principal place of business is1432
located, or in the office of the clerk of court of common pleas of1433
Franklin county.1434

       The clerk, immediatelyImmediately on the filing of the1435
entry, mustthe clerk shall enter judgment for the state against1436
the company assessed in the amount shown on the entry. The1437
judgment may be filed by the clerk in a loose-leaf book entitled,1438
"special judgments for the public utility excise tax on natural1439
gas and combined companies," and shall have the same effect as1440
other judgments. Execution shall issue upon the judgment at the1441
request of the tax commissioner, and all laws applicable to sales1442
on execution shall apply to sales made under the judgment.1443

       The portion of the assessment not paid within sixty days1444
after the day the assessment was issued shall bear interest at the1445
rate per annum prescribed by section 5703.47 of the Revised Code1446
from the day the tax commissioner issues the assessment until it1447
is paid. Interest shall be paid in the same manner as the tax and1448
may be collected by the issuance of an assessment under this1449
section.1450

       (E)(D) If the tax commissioner believes that collection of1451
the tax will be jeopardized unless proceedings to collect or1452
secure collection of the tax are instituted without delay, the1453
commissioner may issue a jeopardy assessment against the person1454
company liable for the tax. OnImmediately upon the issuance of1455
the jeopardy assessment, the commissioner immediately shall file1456
an entry with the clerk of the court of common pleas in the manner1457
prescribed by division (D)(C) of this section. Notice of the1458
jeopardy assessment shall be served on the partycompany assessed1459
or the party's legal representative ascompany's authorized agent1460
in the manner provided in section 5703.37 of the Revised Code1461
within five days of the filing of the entry with the clerk. The1462
total amount assessed is immediately due and payable, unless the1463
personcompany assessed files a petition for reassessment in1464
accordance with division (B) of this section and provides security1465
in a form satisfactory to the commissioner and in an amount1466
sufficient to satisfy the unpaid balance of the assessment. Full1467
or partial payment of the assessment does not prejudice the1468
commissioner's consideration of the petition for reassessment.1469

       (F)(E) All interest collected by the tax commissioner under1470
this section shall be paid to the treasurer of state, and when1471
paid shall be considered revenue arising from the tax imposed by1472
section 5727.24 of the Revised Code.1473

       (G)(F) No assessment shall be made or issued against a1474
natural gas company or combined company for the tax imposed by1475
section 5727.24 of the Revised Code more than four years after the1476
return date for the period in which the tax was reported, or more1477
than four years after the return for the period was filed,1478
whichever is later.1479

       Sec. 5727.28.  (A) The treasurer of state shall refund to a1480
natural gas company or combined company subject to the tax imposed1481
by section 5727.24 of the Revised Code, the amount of tax paid1482
illegally or erroneously, or paid on an illegal or erroneous1483
assessment. Applications for a refund shall be filed with the tax1484
commissioner, on a form prescribed by the commissioner, within1485
four years of the illegal or erroneous payment of the tax.1486

       On the filing of the application for a refund, the1487
commissioner shall determine the amount of refund due andto which1488
the applicant is entitled. If the amount is not less than that1489
claimed, the commissioner shall certify thatthe amount to the1490
director of budget and management and treasurer of state for1491
payment from the tax refund fund under section 5703.052 of the1492
Revised Code. If the amount is less than that claimed, the1493
commissioner shall proceed in accordance with section 5703.70 of1494
the Revised Code.1495



       If the application for refund is for taxes paid on an illegal1497
or erroneous assessment, the tax commissioner shall include in the1498
certified amount interest calculated at the rate per annum1499
prescribed underby section 5703.47 of the Revised Code from the1500
date of overpayment to the date of the commissioner's1501
certification.1502

       (B) If a natural gas company or combined company entitled to1503
a refund of taxes under this section, or section 5703.70 of the1504
Revised Code, is indebted to the state for any tax or fee1505
administered by the tax commissioner that is paid to the state, or1506
any charge, penalty, or interest arising from such a tax or fee,1507
the amount refundable may be applied in satisfaction of that debt.1508
If the amount refundable is less than the amount of the debt, it1509
may be applied in partial satisfaction of the debt. If the amount1510
refundable is greater than the amount of the debt, the amount1511
remaining after satisfaction of the debt shall be refunded.1512

       (C) In lieu of granting a refund under division (A) or (B)1513
of this section, the tax commissioner may allow a natural gas1514
company or combined company to claim a credit of the amount of the1515
tax refund on the return for the period during which the tax1516
became refundable. The commissioner may require the company to1517
submit information to support a claim for a credit under this1518
division, and the commissioner may disallow the credit if the1519
information is not provided.1520

       Sec. 5727.39.  (A) As used in this section:1521

       (1) "9-1-1 system" has the meaning given in section 4931.401522
of the Revised Code.1523

       (2) "Nonrecurring 9-1-1 charges" means nonrecurring charges1524
approved by the public utilities commission for the telephone1525
network portion of a 9-1-1 system pursuant to section 4931.47 of1526
the Revised Code.1527

       (3) "Eligible nonrecurring 9-1-1 charges" means all1528
nonrecurring 9-1-1 charges for a 9-1-1 system except:1529

       (a) Charges for a system that was not established pursuant1530
to a plan adopted under section 4931.44 of the Revised Code or an1531
agreement under section 4931.48 of the Revised Code; or1532

       (b) Charges for that part of a system established pursuant1533
to such a plan or agreement that are excluded from the credit by1534
division (C)(2) of section 4931.47 of the Revised Code.1535

       (4) "Current year's percentage change in the consumer price1536
index" means the greater of one or one plus the percentage1537
increase in the consumer price index for all urban consumers (U.S.1538
city average, all items), prepared by the United States department1539
of labor, bureau of labor statistics, for JuneDecember of the1540
currentpreceding year over the index for JuneDecember of the1541
immediatelysecond preceding year.1542

       (B) A telephone company shall be allowed a credit against1543
the tax computed under section 5727.38 of the Revised Code equal1544
to the amount of its eligible nonrecurring 9-1-1 charges.1545

       The credit shall be claimed in the company's annual statement1546
required under division (A) of section 5727.31 of the Revised Code1547
that covers the twelve-month period in which the 9-1-1 service for1548
which the credit is claimed becomes available for use. If the tax1549
commissioner determines the credit claimed equals the amount of1550
the company's eligible nonrecurring 9-1-1 charges, hethe1551
commissioner shall credit such amount against the total taxes1552
shown to be due from the company for the current year and shall1553
refund the amount of any overpayment of taxes resulting from the1554
application of such credit. If the credit allowed under this1555
section exceeds the total taxes due for the current year, hethe1556
commissioner shall credit such excess against taxes due for1557
succeeding years until the full amount of the credit is granted.1558

       The estimated taxes required to be paid by section 5727.31 of1559
the Revised Code shall be based on the taxes for the preceding1560
year prior to any credit allowed under this section for that year.1561

       (C)(1) Within thirty days after June 18, 1985, the tax1562
commissioner shall compute the amount that represents twenty-five1563
per cent of the total taxes for all telephone companies computed1564
under section 5727.38 of the Revised Code based on the annual1565
statements required to be filed with the commissioner in1566
September, 1984, under section 5727.31 of the Revised Code. Such1567
amount shall constitute the credit ceiling for 1985.1568

       (2) Each OctoberSeptember, beginning in 19862001, the1569
commissioner shall multiplydetermine the credit ceiling by1570
multiplying the preceding year's credit ceiling by the current1571
preceding calendar year's percentage change in the consumer price1572
index for all urban consumers for the midwest region, as1573
determined by the United States bureau of labor statistics. The1574
product thus obtained shall constitute the credit ceiling for the1575
current year.1576

       (D) After the last day a return may be filed by any1577
telephone company that is eligible to claim a credit under this1578
section, the commissioner shall determine whether the sum of the1579
credits allowed for all prior years plus the sum of the credits1580
claimed for the current year exceeds the current year's credit1581
ceiling. If it does, the credits allowed under this section for1582
the current year shall be reduced by a uniform percentage such1583
that the sum of the credits allowed for the current year plus the1584
sum of the credits allowed for all prior years equals the current1585
year's credit ceiling. Thereafter, no credit shall be granted1586
under this division, except for the remaining portions of any1587
credits allowed in the current or any prior years but that have1588
not been granted.1589

       Sec. 5727.47.  (A) A copyNotice of each assessment certified1590
pursuant to section 5727.23 or 5727.38 of the Revised Code shall1591
be mailed to the public utility, and its mailing shall be1592
prima-facie evidence of its receipt by the public utility to which1593
it is addressed. With the notice, the tax commissioner shall1594
provide instructions on how to petition for reassessment and1595
request a hearing on the petition. If a public utility objects to1596
any assessment certified to it pursuant to such sections, it may1597
file a petition for reassessment with the tax commissioner. The1598
petition must be made in writing, signed by the authorized agent1599
of the utility having knowledge of the facts, and filed with the1600
tax commissioner, in personeither personally or by certified1601
mail, within sixty days fromafter the date thatmailing of the1602
notice of assessment was maileda written petition for1603
reassessment signed by the utility's authorized agent having1604
knowledge of the facts. If the petition is filed by certified1605
mail, the date of the United States postmark placed on the1606
sender's receipt by the postal employee to whom the petition is1607
presented shall be treated as the date of filing. The petition1608
shall indicate the utility's objections, but additional objections1609
may be raised in writing if received by the commissioner prior to1610
the date shown on the final determination by the commissioner.1611

       In the case of a petition seeking a reduction in taxable1612
value filed with respect to an assessment issued under section1613
5727.23 of the Revised Code, the petitioner shall state in the1614
petition the total amount of reduction in taxable value sought by1615
the petitioner. If the petitioner objects to the percentage of1616
true value at which taxable property is assessed by the tax1617
commissioner, the petitioner shall state in the petition the total1618
amount of reduction in taxable value sought both with and without1619
regard to the objection pertaining to the percentage of true value1620
at which its taxable property is assessed. If a petitioner1621
objects to the tax commissioner's apportionment of the taxable1622
value of the petitioner's taxable property, the petitioner shall1623
distinctly state in the petition that the petitioner objects to1624
the tax commissioner's apportionment, and, within forty-five days1625
after filing the petition for reassessment, shall submit the1626
petitioner's proposed apportionment of the taxable value of its1627
taxable property among taxing districts. If a petitioner that1628
objects to the tax commissioner's apportionment fails to state its1629
objections to that apportionment in its petition for reassessment1630
or fails to submit its proposed apportionment within forty-five1631
days after filing the petition for reassessment, the tax1632
commissioner shall dismiss the petitioner's objection to the tax1633
commissioner's apportionment, and the taxable value of the1634
petitioner's taxable property, subject to any adjustment to1635
taxable value pursuant to the petition or appeal, shall be1636
apportioned in the manner used by the tax commissioner in the1637
preliminary or amended preliminary assessment issued under section1638
5727.23 of the Revised Code.1639

       If an additional objection seeking a reduction in taxable1640
value in excess of the reduction stated in the original petition1641
is properly and timely raised with respect to an assessment issued1642
under section 5727.23 of the Revised Code, the petitioner shall1643
state the total amount of the reduction in taxable value sought in1644
the additional objection both with and without regard to any1645
reduction in taxable value pertaining to the percentage of true1646
value at which taxable property is assessed. If a petitioner1647
fails to state the reduction in taxable value sought in the1648
original petition or in additional objections properly raised1649
after the petition is filed, the tax commissioner shall notify the1650
petitioner of the failure by certified mail. If the petitioner1651
fails to notify the tax commissioner in writing of the reduction1652
in taxable value sought in the petition or in an additional1653
objection within thirty days after receiving the tax1654
commissioner's notice, the tax commissioner shall dismiss the1655
petition or the additional objection in which that reduction is1656
sought.1657

       (B)(1) Subject to divisions (B)(2) and (3) of this section,1658
a public utility filing a petition for reassessment regarding an1659
assessment issued under section 5727.23 or 5727.38 of the Revised1660
Code shall pay the tax with respect to the assessment objected to1661
as required by law. The acceptance of any tax payment by the1662
treasurer of state or any county treasurer shall not prejudice any1663
claim for taxes on final determination by the tax commissioner or1664
final decision by the board of tax appeals or any court.1665

       (2) If a public utility properly and timely files a petition1666
for reassessment regarding an assessment issued under section1667
5727.23 of the Revised Code, the petitioner shall pay the tax as1668
prescribed by divisions (B)(2)(a), (b), and (c) of this section:1669

       (a) If the petitioner does not object to the tax1670
commissioner's apportionment of the taxable value of the1671
petitioner's taxable property, the petitioner is not required to1672
pay the part of the tax otherwise due on the taxable value that1673
the petitioner seeks to have reduced, subject to division1674
(B)(2)(c) of this section.1675

       (b) If the petitioner objects to the tax commissioner's1676
apportionment of the taxable value of the petitioner's taxable1677
property, the petitioner is not required to pay the tax otherwise1678
due on the part of the taxable value apportioned to any taxing1679
district that the petitioner objects to, subject to division1680
(B)(2)(c) of this section. If, pursuant to division (A) of this1681
section, the petitioner has, in a proper and timely manner,1682
apportioned taxable value to a taxing district to which the tax1683
commissioner did not apportion the petitioner's taxable value, the1684
petitioner shall pay the tax due on the taxable value that the1685
petitioner has apportioned to the taxing district, subject to1686
division (B)(2)(c) of this section.1687

       (c) If a petitioner objects to the percentage of true value1688
at which taxable property is assessed by the tax commissioner, the1689
petitioner shall pay the tax due on the basis of the percentage of1690
true value at which the public utility's taxable property is1691
assessed by the tax commissioner. In any case, the petitioner's1692
payment of tax shall not be less than the amount of tax due based1693
on the taxable value reflected on the last appeal notice issued by1694
the tax commissioner under division (C) of this section. Until1695
the county auditor receives notification under division (E) of1696
this section and proceeds under section 5727.471 of the Revised1697
Code to issue any refund that is found to be due, the county1698
auditor shall not issue a refund for any increase in the reduction1699
in taxable value that is sought by a petitioner later than1700
forty-five days after the petitioner files the original petition1701
as required under division (A) of this section.1702

       (3) Any part of the tax that, under division (B)(2)(a)) or1703
(b) of this section, is not paid shall be collected upon receipt1704
of the notification as provided in section 5727.471 of the Revised1705
Code with interest thereon computed in the same manner as interest1706
is computed under division (E) of section 5715.19 of the Revised1707
Code, subject to any correction of the assessment by the tax1708
commissioner under division (E) of this section or the final1709
judgment of the board of tax appeals or a court to which the1710
board's final judgment is appealed. The penalty imposed under1711
section 323.121 of the Revised Code shall apply only to the unpaid1712
portion of the tax if the petitioner's tax payment is less than1713
the amount of tax due based on the taxable value reflected on the1714
last appeal notice issued by the tax commissioner under division1715
(C) of this section.1716

       (C) Upon receipt of a properly filed petition for1717
reassessment, the tax commissioner shall notify the treasurer of1718
state or the auditor of each county to which the assessment1719
objected to has been certified. In the case of a petition with1720
respect to an assessment issued under section 5727.23 of the1721
Revised Code, the tax commissioner shall issue an appeal notice1722
within thirty days after receiving the amount of the taxable value1723
reduction and apportionment changes sought by the petitioner in1724
the original petition or in any additional objections properly and1725
timely raised by the petitioner. The appeal notice shall indicate1726
the amount of the reduction in taxable value sought in the1727
petition or in the additional objections and the extent to which1728
the reduction in taxable value and any change in apportionment1729
requested by the petitioner would affect the tax commissioner's1730
apportionment of the taxable value among taxing districts in the1731
county as shown in the assessment. If a petitioner is seeking a1732
reduction in taxable value on the basis of a lower percentage of1733
true value than the percentage at which the tax commissioner1734
assessed the petitioner's taxable property, the appeal notice1735
shall indicate the reduction in taxable value sought by the1736
petitioner without regard to the reduction sought on the basis of1737
the lower percentage and shall indicate that the petitioner is1738
required to pay tax on the reduced taxable value determined1739
without regard to the reduction sought on the basis of a lower1740
percentage of true value, as provided under division (B)(2)(c) of1741
this section. The appeal notice shall include a statement that1742
the reduced taxable value and the apportionment indicated in the1743
notice are not final and are subject to adjustment by the tax1744
commissioner or by the board of tax appeals or a court on appeal. 1745
If the tax commissioner finds an error in the appeal notice, the1746
tax commissioner may amend the notice, but the notice is only for1747
informational and tax payment purposes; the notice is not subject1748
to appeal by any person. The tax commissioner also shall mail a1749
copy of the appeal notice to the petitioner. Upon the request of1750
a taxing authority, the county auditor may disclose to the taxing1751
authority the extent to which a reduction in taxable value sought1752
by a petitioner would affect the apportionment of taxable value to1753
the taxing district or districts under the taxing authority's1754
jurisdiction, but such a disclosure does not constitute a notice1755
required by law to be given for the purpose of section 5717.02 of1756
the Revised Code.1757

       (D) UnlessIf the petitioner waivesrequests a hearing on the1758
petition, the tax commissioner shall assign a time and place for1759
the hearing on the petition and notify the petitioner of thesuch1760
time and place of the hearing by personal service or certified1761
mail, but the commissioner may continue the hearing from time to1762
time ifas necessary.1763

       (E) The tax commissioner may make such correction1764
corrections to the assessment as the tax commissioner finds1765
proper. The tax commissioner shall serve a copy of the1766
commissioner's final determination on the petitioner by personal1767
service or certified mail, andin the taxmanner provided in1768
section 5703.37 of the Revised Code. The commissioner's decision1769
in the matter shall be final, subject to appeal as provided in1770
under section 5717.02 of the Revised Code. The tax commissioner1771
also shall transmit a copy of the final determination to the1772
treasurer of state or applicable county auditor. In the absence1773
of any further appeal, or when a decision of the board of tax1774
appeals or of any court to which the decision has been appealed1775
becomes final, the tax commissioner shall notify the public1776
utility and, as appropriate, the treasurer of state who shall1777
proceed under section 5727.42 of the Revised Code, or the1778
applicable county auditor who shall proceed under section 5727.4711779
of the Revised Code. In any notification regarding an assessment1780
issued under section 5727.23 of the Revised Code, the tax1781
commissioner shall include a notice of the amount of any state1782
basic aid overpayment, as defined in section 5727.471 of the1783
Revised Code, to a school district affected by the notification.1784
Upon the tax commissioner's request, the department of education1785
shall certify to the tax commissioner the amount of any state1786
basic aid overpayment to a school district.1787

       The notification made under this division is not subject to1788
further appeal.1789

       (F) On appeal, no adjustment shall be made in the tax1790
commissioner's assessment issued under section 5727.23 of the1791
Revised Code that reduces the taxable value of a petitioner's1792
taxable property by an amount that exceeds the reduction sought by1793
the petitioner in its petition for reassessment or in any1794
additional objections properly and timely raised after the1795
petition is filed with the tax commissioner.1796

       Sec. 5727.471.  (A) As used in this section:1797

       (1) "Notification", "notification" means notification1798
required by section 5727.47 of the Revised Code to be sent by the1799
tax commissioner to the county auditor as to the disposition of a1800
petition for reassessment, or of a decision of the board of tax1801
appeals or any court with respect to an assessment of public1802
utility property taxes.1803

       (2) "State basic aid overpayment" for a school district means1804
the amount by which the payment computed for a fiscal year under1805
section 3317.022 of the Revised Code exceeds the amount that would1806
have been computed for that fiscal year if the taxable value1807
certified under division (A)(2) and (B) of section 3317.021 of the1808
Revised Code for the tax year preceding that fiscal year had been1809
the taxable value shown in the notification for that tax year.1810

       (B) On receipt of the notification, the auditor shall1811
determine whether there has been an underpayment or overpayment of1812
taxes by the public utility. In the case of an underpayment of1813
taxes, the auditor shall notify the county treasurer of the1814
amount, and the treasurer shall proceed to collect the1815
underpayment as required by law. From the proceeds of the1816
underpayment so collected that are otherwise payable to a city,1817
local, or exempted village school district, the county treasurer1818
shall deduct and withhold an amount equal to the state basic aid1819
overpayment, if any, to the school district, plus interest on that1820
amount at the rate prescribed by section 5703.47 of the Revised1821
Code from the last day of the fiscal year for which the state1822
basic aid payment was made to the day the underpayment is1823
collected. The county treasurer shall pay the amount deducted and1824
withheld to the treasurer of state, who shall credit the payment1825
to the general revenue fund. If the state basic aid overpayment1826
and interest exceeds the amount of the tax underpayment collected1827
that is otherwise payable to the school district, the county1828
treasurer shall collect the difference from the school district or1829
deduct and withhold the difference from the next distribution or1830
advance payment of property taxes to the district, and shall pay1831
that difference to the treasurer of state, who shall credit the1832
payment to the general revenue fund.1833

       In the case of an overpayment of taxes, the auditor shall do1834
any one of the following:1835

       (1) Refund the full amount of the overpayment;1836

       (2) Refund a portion of the overpayment and prorate the1837
remaining balance as a credit against future taxes that may be1838
charged to the public utility;1839

       (3) Prorate the full amount of the overpayment as a credit1840
against future taxes that may be charged to the public utility.1841

       (C)(1) The auditor shall have discretion as to which method1842
to use and shall advise the public utility of the auditor's1843
decision within sixty days after receipt of the notification. The1844
auditor shall make payment of any refund under division (B)(1) or1845
(2) of this section within ninety days after receipt of the1846
notification. Except as otherwise provided in division (C)(2) of1847
this section, any amount to be credited under division (B)(2) or1848
(3) of this section shall be applied to all or a part of the taxes1849
otherwise due from the public utility on real and public utility1850
property tax installment due dates after the date on which the1851
notification was received, but shall not be spread over more than1852
the next ten ensuing installment due dates. If any portion of the1853
overpayment has not been refunded or credited by the tenth such1854
tax installment due date after the date on which the notification1855
was received, the auditor immediately shall refund that portion.1856

       (2) The tax commissioner may certify to a county auditor, in1857
writing, that a public utility is no longer required to file a1858
report under section 5727.08 of the Revised Code. Within ninety1859
days of the date of such certification, the auditor shall refund1860
to the utility, with applicable interest, the portion of any1861
overpayment that has not been refunded or credited to the utility1862
under this section.1863

       (D) The auditor shall add interest to the amount of any1864
overpayment of taxes at the rate per calendar month, rounded to1865
the nearest one-hundredth of one per cent, equal to one-twelfth of1866
the rate per annum prescribed by section 5703.47 of the Revised1867
Code. The interest shall begin to accrue from the first day of1868
the month following the date of the overpayment until the last day1869
of the month preceding the date the overpayment or portion of the1870
overpayment is refunded or credited, and shall be computed1871
separately on each amount actually refunded or credited. In1872
computing interest on credits, when an overpayment is credited1873
against an installment of current taxes due from the utility1874
pursuant to this section, the overpayment shall be considered to1875
have been credited on the last date on which those taxes may be1876
paid without penalty.1877

       (E) The refund and crediting of any overpayment, including1878
interest, shall be paid from or credited against the fund or funds1879
and the taxing districts to which the overpayment originally was1880
paid, in proportion to the amount of the overpayment received. The1881
auditor shall correct the auditor's tax lists in accordance with1882
the refund or credit, and shall certify corrections in the tax1883
duplicates to the county treasurer. At each settlement affected1884
by a refund or credit under this section, the amount of the refund1885
or credit shall be deducted from the amount of any taxes or1886
assessments distributable to the county or any taxing unit in the1887
county that has received the benefit of the taxes or assessment1888
previously overpaid, in proportion to the overpayment previously1889
received.1890

       Sec. 5727.89.  (A) The tax commissioner may make an1891
assessment, based on any information in the commissioner's1892
possession, against any natural gas distribution company, electric1893
distribution company, self-assessing purchaser, or qualified end1894
user that fails to file a return or pay any tax, interest, or1895
additional charge as required by sections 5727.80 to 5727.95 of1896
the Revised Code.1897

       When information in the possession of the tax commissioner1898
indicates that a person liable for the tax imposed by section1899
5727.81 or 5727.811 of the Revised Code has not paid the full1900
amount of tax due, the commissioner may audit a representative1901
sample of the person's business and may issue an assessment based1902
on the audit. The commissioner shall give the person assessed1903
written notice of the assessment by personal service or certified1904
mailin the manner provided in section 5703.37 of the Revised1905
Code. With the notice, the commissioner shall provide instructions1906
on how to petition for reassessment and request a hearing on the1907
petition.1908

       The tax commissioner may issue an assessment for which the1909
tax imposed by section 5727.81 or 5727.811 of the Revised Code was1910
due and unpaid on the date the person was informed by an agent of1911
the tax commissioner of an investigation or audit of the person.1912
Any payment of the tax for the period covered by the assessment,1913
after the person is so informed, shall be credited against the1914
assessment.1915

       A penalty of up to fifteen per cent may be added to all1916
amounts assessed under this section. The commissioner may adopt1917
rules providing for the imposition and remission of penalties.1918

       (B) Unless the party assessed files with the tax1919
commissioner within sixty days after service of the notice of1920
assessment, either personally or by certified mail, a written1921
petition for reassessment signed by the party assessed or thethat1922
party's authorized agent having knowledge of the facts, the1923
assessment isbecomes final and the amount of the assessment is1924
due and payable from the party assessed to the treasurer of state.1925
The petition shall indicate the objections of the party assessed,1926
but additional objections may be raised in writing if received by1927
the commissioner prior to the date shown on the final1928
determination of the tax commissioner. The commissioner shall1929
grant the petitioner a hearing on the petition, unless waived by1930
the petitioner.1931

       (C) The commissioner may make any correction to the1932
assessment that the commissioner finds proper and shall issue a1933
final determination thereon. The commissioner shall serve a copy1934
of the final determination on the petitioner either by personal1935
service or by certified mail as provided in section 5703.37 of the1936
Revised Code, and the commissioner's decision in the matter is1937
final, subject to appeal under section 5717.02 of the Revised1938
Code. If the petition has been properly filed, the commissioner1939
shall proceed under section 5703.60 of the Revised Code.1940

       (D)(C) After an assessment becomes final, if any portion of1941
the assessment, including accrued interest, remains unpaid, a1942
certified copy of the tax commissioner's entry making the1943
assessment final may be filed in the office of the clerk of the1944
court of common pleas in the county in which the party assessed1945
resides or in which the party's business is conducted. If the1946
party assessed maintains no place of business in this state and is1947
not a resident of this state, the certified copy of the entry may1948
be filed in the office of the clerk of the court of common pleas1949
of Franklin county.1950

       The clerk, immediatelyImmediately upon the filing of the1951
entry, the clerk shall enter a judgment for the state against the1952
person assessed in the amount shown on the entry. The judgment1953
may be filed by the clerk in a loose-leaf book entitled "special1954
judgments for the distribution excise taxes," and shall have the1955
same effect as other judgments. Execution shall issue upon the1956
judgment at the request of the tax commissioner, and all laws1957
applicable to sales on execution shall apply to sales made under1958
the judgment.1959

       The portion of the assessment not paid within sixty days1960
after the day the assessment was issued shall bear interest at the1961
rate per annum prescribed by section 5703.47 of the Revised Code1962
from the day the tax commissioner issues the assessment until the1963
day the assessment is paid. Interest shall be paid in the same1964
manner as the tax and may be collected by the issuance of an1965
assessment under this section.1966

       (E)(D) If the tax commissioner believes that collection of1967
the tax imposed by section 5727.81 or 5727.811 of the Revised Code1968
will be jeopardized unless proceedings to collect or secure1969
collection of the tax are instituted without delay, the1970
commissioner may issue a jeopardy assessment against the person1971
liable for the tax. UponImmediately upon the issuance of the1972
jeopardy assessment, the commissioner immediately shall file an1973
entry with the clerk of the court of common pleas in the manner1974
prescribed by division (D)(C) of this section. Notice of the1975
jeopardy assessment shall be served on the party assessed or the1976
party's legal representative within five days of the filing of the1977
entry with the clerk. The total amount assessed is immediately1978
due and payable, unless the party assessed files a petition for1979
reassessment in accordance with division (B) of this section and1980
provides security in a form satisfactory to the commissioner and1981
in an amount sufficient to satisfy the unpaid balance of the1982
assessment. Full or partial payment of the assessment does not1983
prejudice the commissioner's consideration of the petition for1984
reassessment.1985

       (F)(E) All money collected by the tax commissioner under1986
this section shall be paid to the treasurer of state, and when1987
paid shall be considered as revenue arising from the taxes imposed1988
by sections 5727.81 and 5727.811 of the Revised Code.1989

       Sec. 5727.91.  (A) The treasurer of state shall refund the1990
amount of tax paid under section 5727.81 or 5727.811 of the1991
Revised Code that was paid illegally or erroneously, or paid on an1992
illegal or erroneous assessment. A natural gas distribution1993
company, an electric distribution company, or a self-assessing1994
purchaser shall file an application for a refund with the tax1995
commissioner on a form prescribed by the commissioner, within four1996
years of the illegal or erroneous payment of the tax.1997

       UponOn the filing of the application, the commissioner shall1998
determine the amount of refund due andto which the applicant is1999
entitled. If the amount is not less than that claimed, the2000
commissioner shall certify that amount to the director of budget2001
and management and the treasurer of state for payment from the tax2002
refund fund under section 5703.052 of the Revised Code. If the2003
amount is less than that claimed, the commissioner shall proceed2004
in accordance with section 5703.70 of the Revised Code.2005

       If the application for refund is for taxes paid on an illegal2006
or erroneous assessment, the tax commissioner shall include in the2007
certified amount interest calculated at the rate per annum under2008
prescribed by section 5703.47 of the Revised Code from the date of2009
overpayment to the date of the commissioner's certification.2010

       (B) If a natural gas distribution company or an electric2011
distribution company entitled to a refund of taxes under this2012
section, or section 5703.70 of the Revised Code, is indebted to2013
the state for any tax or fee administered by the tax commissioner2014
that is paid to the state, or any charge, penalty, or interest2015
arising from such a tax or fee, the amount refundable may be2016
applied in satisfaction of the debt. If the amount refundable is2017
less than the amount of the debt, it may be applied in partial2018
satisfaction of the debt. If the amount refundable is greater2019
than the amount of the debt, the amount remaining after2020
satisfaction of the debt shall be refunded. If the natural gas2021
distribution company or electric distribution company has more2022
than one such debt, any debt subject to section 5739.33 or2023
division (G) of section 5747.07 of the Revised Code shall be2024
satisfied first. This section applies only to debts that have2025
become final.2026

       (C)(1) Any electric distribution company that can2027
substantiate to the tax commissioner that the tax imposed by2028
section 5727.81 of the Revised Code was paid on electricity2029
distributed via wires and consumed at a location outside of this2030
state may claim a refund in the manner and within the time period2031
prescribed in division (A) of this section.2032

       (2) Any natural gas distribution company that can2033
substantiate to the tax commissioner that the tax imposed by2034
section 5727.811 of the Revised Code was paid on natural gas2035
distributed via its facilities and consumed at a location outside2036
of this state may claim a refund in the manner and within the time2037
period prescribed in division (A) of this section.2038

       (D) Before a refund is issued under this section or section2039
5703.70 of the Revised Code, a natural gas company or an electric2040
distribution company shall certify, as prescribed by the tax2041
commissioner, that it either did not include the tax imposed by2042
section 5727.81 of the Revised Code in the case of an electric2043
distribution company, or the tax imposed by section 5727.811 of2044
the Revised Code in the case of a natural gas distribution2045
company, in its distribution charge to its customer upon which a2046
refund of the tax is claimed, or it has refunded or credited to2047
the customer the excess distribution charge related to the tax2048
that was erroneously included in the customer's distribution2049
charge.2050

       Sec. 5727.93.  (A) No person shall distribute electricity or2051
natural gas to a meter of an end user in this state or to an2052
unmetered location in this state if that person is not registered2053
with the tax commissioner as an electric distribution company or a2054
natural gas distribution company.2055

       (B) Each person required to register under division (A) of2056
this section shall register prior to distributing electricity or2057
natural gas to a meter of an end user in this state or to an2058
unmetered location in this state. The tax commissioner shall2059
prescribe the form of the registration application. The2060
commissioner shall assign an identification number to each2061
registration and notify the registrant of that number. The2062
registration shall remain in effect until canceled in writing by2063
the registrant upon the cessation of distributing electricity or2064
natural gas to a meter of an end user in this state or to an2065
unmetered location in this state, or until such registration is2066
denied, revoked, or canceled by the commissioner. A registration2067
may be revoked or canceled by the tax commissioner as provided by2068
Chapter 119. of the Revised Code, for failure of an electric2069
distribution company to pay the tax imposed by section 5727.81 of2070
the Revised Code, failure of a natural gas distribution company to2071
pay the tax imposed by section 5727.811 of the Revised Code, or2072
failure of an electric distribution company or a natural gas2073
distribution company to comply with sections 5727.80 and 5727.822074
to 5727.95 of the Revised Code. A company whose registration is2075
denied may petition for a hearing, in accordance with the2076
procedures set forth in divisionsdivision (B) and (C) of section2077
5727.89 of the Revised Code, not later than thirty days after2078
receiving the denial, and the final determination is subject to2079
appeal under section 5717.02 of the Revised Code.2080

       (C) The tax commissioner shall maintain a list of the2081
companies registered under this section. The list shall contain2082
the name and address of each company registered by the2083
commissioner. The list and subsequent updates of it shall be open2084
to public inspection.2085

       Sec. 5728.01.  As used in sections 5728.02 to 5728.14 of the2086
Revised Code:2087

       (A) "Motor vehicle" means everything on wheels that is2088
self-propelled, other than by muscular power or power collected2089
from electric trolley wires and other than vehicles or machinery2090
not designed for or employed in general highway transportation,2091
used to transport or propel property over a public highway.2092

       (B) "Commercial car" means any motor vehicle used for2093
transporting property, wholly on its own structure on a public2094
highway.2095

       (C) "Commercial tractor" means any motor vehicle designed and2096
used to propel or draw a trailer or semi-trailer or both on a2097
public highway without having any provision for carrying loads2098
independently of such trailer or semi-trailer.2099

       (D) "Trailer" means everything on wheels that is not2100
self-propelled, except vehicles or machinery not designed for or2101
employed in general highway transportation, used for carrying2102
property wholly on its own structure and for being drawn by a2103
motor vehicle on a public highway, including any such vehicle when2104
formed by or operated as a combination of a semi-trailer and a2105
vehicle of the dolly type such as that commonly known as a trailer2106
dolly. "Trailer" does not include manufactured homes as defined in2107
division (C)(4) of section 3781.06 of the Revised Code or mobile2108
homes as defined in division (O) of section 4501.01 of the Revised2109
Code.2110

       (E) "Semi-trailer" means everything on wheels that is not2111
self-propelled, except vehicles or machinery not designed for or2112
employed in general highway transportation, designed and used for2113
carrying property on a public highway when being propelled or2114
drawn by a commercial tractor when part of its own weight or the2115
weight of its load, or both, rest upon and is carried by a2116
commercial tractor.2117

       (F) "Commercial tandem" means any commercial car and trailer2118
or any commercial tractor, semi-trailer, and trailer when fastened2119
together and used as one unit.2120

       (G) "Commercial tractor combination" means any commercial2121
tractor and semi-trailer when fastened together and used as one2122
unit.2123

       (H) "Axle" means two or more load carrying wheels mounted in2124
a single transverse vertical plane.2125

       (I) "Public highway" means any highway, road, or street2126
dedicated to public use except, including a highway under the2127
control and jurisdiction of the Ohio turnpike commission created2128
by the provisions of section 5537.02 of the Revised Code and land2129
and lots over which the public, either as user or owner, generally2130
has a right to pass even though such land or lots are closed2131
temporarily by public authorities for the purpose of construction,2132
reconstruction, maintenance, or repair.2133

       Sec. 5728.02.  (A) Except as provided in section 5728.03 of2134
the Revised Code, every person who is liable for the tax imposed2135
by section 5728.06 of the Revised Code on the operation of a2136
commercial car with three or more axles when operated alone or as2137
part of a commercial tandem, a commercial car with two axles that2138
is to be operated as part of a commercial tandem with a gross2139
vehicle weight or a registered gross vehicle weight exceeding2140
twenty-six thousand pounds, or a commercial tractor that is, or is2141
to be, operated or driven upon a public highway shall cause to be2142
filed annually with the tax commissioner a written application for2143
a highwayfuel use permit on blank forms to be furnished by the2144
commissioner for that purpose.2145

       Each application for a highwayfuel use permit for a2146
commercial car or a commercial tractor shall contain any2147
information the tax commissioner prescribes.2148

       (B) Upon receipt of the application, the tax commissioner2149
shall issue to the person making the application a highwayfuel2150
use permit and any identification device that the commissioner2151
considers necessary for the proper administration of this chapter.2152
The permit and the identification device shall be of a design and2153
contain any information the commissioner considers necessary. The2154
identification device shall be displayed on the commercial car or2155
commercial tractor for which it was issued at all times in the2156
manner the commissioner prescribes. The highwayfuel use permits2157
and the identification device shall not be transferable. In case2158
of the loss of a highwayfuel use permit or identification device,2159
the commissioner shall issue a duplicate of the permit or device.2160

       The highwayfuel use permit shall be valid until it expires2161
or is suspended or surrendered.2162

       Sec. 5728.03.  (A) In lieu of filing an application for an2163
annual highwayfuel use permit under section 5728.02 of the2164
Revised Code and in lieu of filing returns under section 5728.082165
of the Revised Code, a person who is the owner of a commercial car2166
with three or more axles when operated alone or as part of a2167
commercial tandem, a commercial car with two axles that is to be2168
operated as part of a commercial tandem with a gross vehicle2169
weight or a registered gross vehicle weight exceeding twenty-six2170
thousand pounds, or a commercial tractor that is, or is to be,2171
operated or driven upon a public highway, may file an application2172
with the tax commissioner for a single-trip highwayfuel use2173
permit. The application shall be based on rules adopted by the2174
tax commissioner and shall include an amount estimated to be2175
substantially equivalent to the highway use and motor vehicle fuel2176
use tax liability that the applicant will incur by driving on the2177
highways of this state during the period covered by the2178
single-trip permit. The amount so estimated shall be considered2179
to be the highway use tax and motor vehicle fuel use tax liability2180
so incurred.2181

       The commissioner may authorize independent permit services or2182
other persons to issue single-trip highwayfuel use permits.2183

       (B) The tax commissioner shall adopt rules establishing all2184
of the following:2185

       (1) Procedures for the issuance of single-trip permits;2186

       (2) The length of time the permits are effective;2187

       (3) Requirements that independent permit services or other2188
persons must meet to be authorized to issue single-trip highway2189
fuel use permits and procedures for obtaining that authorization;2190

       (4) Estimates of the amount substantially equivalent to the2191
highway use and motor vehicle fuel use tax liability that an2192
applicant will incur by driving on the highways of this state2193
during the period covered by the permit.2194

       (C) No person whose highwayfuel use permit issued under2195
section 5728.02 of the Revised Code is currently under suspension2196
in accordance with section 5728.11 of the Revised Code shall be2197
issued a single-trip highwayfuel use permit under this section.2198

       (D) All moneys collected pursuant to this section shall be2199
deposited in the state treasury in accordance with section 5728.082200
of the Revised Code.2201

       Sec. 5728.04.  It shall beis unlawful, on and after2202
September 30, 1955, for any person to operate a commercial car2203
with three or more axles when operated alone or as part of a2204
commercial tandem, a commercial car with two axles that is to be2205
operated as part of a commercial tandem with a gross vehicle2206
weight or a registered gross vehicle weight exceeding twenty-six2207
thousand pounds, or a commercial tractor when operated alone or as2208
part of a commercial tractor combination or commercial tandem on a2209
public highway without a valid highwayfuel use permit for such2210
commercial car or commercial tractor.2211

       The judge or magistrate of any court finding any person2212
guilty of unlawfully operating a commercial car or commercial2213
tractor as provided for in this section shall immediately notify2214
the tax commissioner of such violation and shall transmit to the2215
commissioner the name and the permanent address of the owner of2216
the commercial car or commercial tractor operated in violation of2217
this section, the registration number, the state of registration,2218
and the certificate of title number of the commercial car or2219
commercial tractor.2220

       Sec. 5735.311.        Sec. 5728.05.  The tax commissioner may enter into2221
cooperative reciprocal agreements providing for the imposition of2222
motor fuel use taxes on an apportionment or allocation basis with2223
the proper authority of any state, any commonwealth, the District2224
of Columbia, a state or province of a foreign country, or a2225
territory or possession of the United States or of a foreign2226
country. The agreement may provide for determining the base state2227
for fuel users, users' records requirements, audit procedures,2228
exchange of information, the definition of qualified motor2229
vehicles, bonding requirements, reporting requirements, reporting2230
periods, specifying uniform penalty and interest for late2231
reporting or payment, determining methods of collecting and2232
remitting fuel use taxes to member jurisdictions, and such other2233
provisions as will facilitate the administration of the agreement.2234

       To any extent provisions of the Revised Code governing the2235
administration of the tax levied by section 5735.315728.06 of the2236
Revised Code are irreconcilable with provisions of a reciprocal2237
agreement entered into pursuant to this section, the provisions of2238
the reciprocal agreement prevail.2239

       The agreement may provide for the tax commissioner to audit2240
the records of persons based in this state for purposes of the2241
agreement in order to determine whether the fuel use taxes due2242
each member jurisdiction are properly reported and paid. If any2243
person based in this state fails to properly report and pay fuel2244
use taxes as required by the agreement, the tax commissioner may2245
issue an assessment against that person pursuant to the provisions2246
of the agreement and section 5728.10 of the Revised Code.2247

       The tax commissioner may exchange with the proper officers of2248
other member jurisdictions and with the repository of the2249
agreement any information in the commissioner's possession2250
relative to the administration and enforcement of the agreement.2251
The exchange of information under this section is not a violation2252
of section 5703.21 or 5715.50 of the Revised Code. For purposes2253
of this section, "proper officers of other member jurisdictions"2254
includes officers of any agency, department, or instrumentality of2255
another member jurisdiction with authority under the laws of that2256
jurisdiction to administer or enforce motor vehicle or taxation2257
laws.2258

       The tax commissioner may adopt rules for the administration2259
and enforcement of the agreement entered into pursuant to this2260
section, and shall prescribe and supply necessary forms.2261

       The commissioner may provide information necessary for the2262
administration and enforcement of this chapter to persons who2263
collect such information for the purpose of providing it to other2264
persons that are responsible for the administration and2265
enforcement of motor vehicle or tax laws. The information2266
provided by the commissioner shall identify the taxpayer and the2267
status of the taxpayer's account obtained from the filings2268
required under sections 5728.01 to 5728.14 of the Revised Code.2269
Providing such information under this section is not a violation2270
of section 5703.21 or 5715.50 of the Revised Code.2271

       Sec. 5728.06. For the purpose of providing revenues to pay2272
the cost of administering and enforcing the laws pertaining to the2273
levy and collection of the tax imposed by this section, to provide2274
funds to pay the state's share of the cost of constructing or2275
reconstructing highways and eliminating railway grade crossings on2276
the major thoroughfares of the state highway system and urban2277
extensions thereof, and to pay the interest, principal, and2278
charges on highway obligations issued pursuant to Section 2i of2279
Article VIII, Ohio Constitution, and sections 5528.30 and 5528.312280
of the Revised Code, there is hereby levied a highway use tax upon2281
each commercial car with three or more axles when operated alone2282
or as part of a commercial tandem, each commercial car with two2283
axles used as a part of a commercial tandem with a gross vehicle2284
weight or a registered gross vehicle weight exceeding twenty-six2285
thousand pounds, and each commercial tractor operated alone or2286
used as part of a commercial tractor combination or commercial2287
tandem. Except as provided in section 5728.05 of the Revised2288
Code, the rates shall be as follows:2289

       (A) One-half cent for each mile traveled on a public highway2290
in Ohio by each commercial car with three or more axles;2291

       (B) One cent for each mile traveled on a public highway in2292
Ohio by a commercial tandem with three axles or a commercial2293
tractor operated alone or as part of a commercial tractor2294
combination with three axles;2295

       (C) One and one-half cents for each mile traveled on a2296
public highway in Ohio by a commercial tractor operated as a part2297
of a commercial tractor combination with four axles;2298

       (D) Two cents for each mile traveled on a public highway in2299
Ohio by a commercial tractor operated as part of a commercial2300
tractor combination with a total of five or more axles;2301

       (E) Two and one-half cents for each mile traveled on a2302
public highway in Ohio by each commercial car or commercial2303
tractor operated as part of a commercial tandem with four or more2304
axles.For the following purposes, an excise tax is hereby imposed2305
on the use of motor fuel to operate on the public highways of this2306
state a commercial car with three or more axles operated alone or2307
as part of a commercial tandem, a commercial car with two axles2308
operated as part of a commercial tandem having a gross vehicle2309
weight or registered gross vehicle weight exceeding twenty-six2310
thousand pounds, or a commercial tractor operated alone or as part2311
of a commercial tractor combination or commercial tandem: to2312
provide revenue for maintaining the state highway system, to widen2313
existing surfaces on such highways, to resurface such highways, to2314
enable the counties of the state properly to plan for, maintain,2315
and repair their roads, to enable the municipal corporations to2316
plan, construct, reconstruct, repave, widen, maintain, repair,2317
clear, and clean public highways, roads, and streets; to pay that2318
portion of the construction cost of a highway project that a2319
county, township, or municipal corporation normally would be2320
required to pay, but that the director of transportation, pursuant2321
to division (B) of section 5531.08 of the Revised Code, determines2322
instead will be paid from moneys in the highway operating fund; to2323
maintain and repair bridges and viaducts; to purchase, erect, and2324
maintain street and traffic signs and markers; to purchase, erect,2325
and maintain traffic lights and signals; to pay the costs2326
apportioned to the public under section 4907.47 of the Revised2327
Code; and to supplement revenue already available for such2328
purposes, to distribute equitably among those persons using the2329
privilege of driving motor vehicles upon such highways and streets2330
the cost of maintaining and repairing the same, and to pay the2331
interest, principal, and charges on bonds and other obligations2332
issued pursuant to Section 2i of Article VIII, Ohio Constitution,2333
and sections 5528.30 and 5528.31 of the Revised Code. The tax is2334
imposed in the same amount as the motor fuel tax imposed under2335
Chapter 5735. of the Revised Code plus an additional tax of three2336
cents per gallon, as determined by the gallons consumed while2337
operated on the public highways of this state. Payment of the2338
fuel use tax shall be made by the purchase of motor fuel within2339
Ohio of such gallons as is equivalent to the gallons consumed2340
while operating such a motor vehicle on the public highways of2341
this state, or by direct remittance to the treasurer of state with2342
the fuel use tax return filed pursuant to section 5728.08 of the2343
Revised Code.2344

       Any person subject to the tax imposed under this section who2345
purchases motor fuel in this state for use in another state in2346
excess of the amount consumed while operating such motor vehicle2347
on the public highways of this state shall be allowed a credit2348
against the tax imposed by this section or a refund equal to the2349
motor fuel tax paid to this state on such excess. No such credit2350
or refund shall be allowed for taxes paid to any state that2351
imposes a tax on motor fuel purchased or obtained in this state2352
and used on the highways of such other state but does not allow a2353
similar credit or refund for the tax paid to this state on motor2354
fuel purchased or acquired in the other state and used on the2355
public highways of this state.2356

       The tax commissioner is authorized to determine whether such2357
credits or refunds are available and to prescribe such rules as2358
are required for the purpose of administering this chapter.2359

       (B) Within sixty days after the last day of each month, the2360
tax commissioner shall determine the amount of motor fuel tax2361
allowed as a credit against the tax imposed by this section. The2362
commissioner shall certify the amount to the director of budget2363
and management and the treasurer of state, who shall credit the2364
amount in accordance with section 5728.08 of the Revised Code from2365
current revenue arising from the tax levied by section 5735.05 of2366
the Revised Code.2367

       (C) The owner of each commercial car and commercial tractor2368
subject to sections 5728.01 to 5728.14 of the Revised Code shall2369
beis liable for the payment of the full amount of the taxes2370
levied hereinimposed by this section.2371

       An owner who is a person regularly engaged, for compensation,2372
in the business of leasing or renting motor vehicles without2373
furnishing drivers may designate that the lessee of a motor2374
vehicle leased for a period of thirty days or more shall report2375
and pay the tax incurred during the duration of the lease. An2376
owner who is an independent contractor that furnishes both the2377
driver and motor vehicle, may designate that the person so2378
furnished with the driver and motor vehicle for a period of thirty2379
days or more shall report and pay the tax incurred during that2380
period. An independent contractor that is not an owner, but that2381
furnishes both the driver and motor vehicle and that has been2382
designated by the owner of the motor vehicle to report and pay the2383
tax, may designate that the person so furnished with driver and2384
motor vehicle for a period of thirty days or more shall report and2385
pay the tax incurred during that period.2386

       Sec. 5728.061.  The treasurer of state shall refund the2387
amount of highwayfuel use taxes overpaid, paid illegally or2388
erroneously, or paid on any illegal or erroneous assessment.2389
Applications for refund shall be filed with the tax commissioner,2390
on the form prescribed by himthe commissioner, within four years2391
from the date of the overpayment, the illegal or erroneous payment2392
of the tax, or the payment of the illegal or erroneous assessment.2393
An application shall be filed by the person who made payment of2394
the tax for which the refund is claimed. When a refund is granted2395
for payment of an illegal or erroneous assessment issued by the2396
commissioner, the refund shall include interest on the amount of2397
the refund from the date of the overpaymentpayment. The interest2398
shall be computed at the rate per annum prescribed by section2399
5703.47 of the Revised Code. On2400

       On the filing of the application, the commissioner shall2401
determine the amount of refund due andto which the applicant is2402
entitled. If the amount is not less than that claimed, the2403
commissioner shall certify thatthe amount to the director of2404
budget and management and treasurer of state for payment from the2405
tax refund fund created by section 5703.052 of the Revised Code.2406
Application for refund shall be filed by the person who made2407
payment of the tax for which refund is claimed.If the amount is2408
less than that claimed, the commissioner shall proceed in2409
accordance with section 5703.70 of the Revised Code.2410

       Sec. 5728.07.  Every person who is or becomes liable for the2411
payment of the tax levied in section 5728.06 of the Revised Code2412
shall keep a complete and accurate record, upon forms prescribed2413
by the tax commissioner, showing the total miles traveled on a2414
public highway in this state bymaintain detailed distance and2415
fuel records for each commercial car and commercial tractor owned,2416
leased, rented, or otherwise operated by such person, the number2417
of axles actually used while traveling said miles, the highway use2418
permit number for each commercial car and commercial tractor owned2419
or operated and such other information as the tax commissioner may2420
require. Such records shall be available at any time, during2421
normal business hours, for the inspection of the tax commissioner2422
or histhe commissioner's duly authorized agents and shall be2423
preserved for a period of four years from the date the return2424
required to be filed under section 5728.08 of the Revised Code was2425
due or filed, whichever is later.2426

       Sec. 5728.08.  Except as provided in section 5728.03 of the2427
Revised Code and except as otherwise provided in this section,2428
whoever is liable for the payment of the tax levied by section2429
5728.06 of the Revised Code, on or before the last day of each2430
January, April, July, and October, shall file with the treasurer2431
of state, on forms prescribed by the tax commissioner, a highway2432
fuel use tax return and make payment of the full amount of the tax2433
due for the operation of each commercial car and commercial2434
tractor for the next preceding three calendar months. If the2435
commercial cars or commercial tractors are farm trucks and the2436
amount of motor fuel used to operate the trucks during the next2437
preceding twelve calendar months was less than fifteen thousand2438
gallons, the highwayfuel use tax return shall be filed and the2439
full amount of tax due paid on or before the last day of each July2440
for the next preceding twelve calendar months. If the commercial2441
cars or commercial tractors are farm trucks and the amount of2442
motor fuel used to operate the trucks during the next preceding2443
twelve calendar months was fifteen thousand gallons or more, the2444
highwayfuel use tax return shall be filed and the full amount of2445
the tax due paid either on or before the last day of each July for2446
the next preceding twelve calendar months, or on or before the2447
last day of each January, April, July, and October for the next2448
preceding three calendar months, at the option of the person2449
liable for payment of the tax. If the commercial cars or2450
commercial tractors are not farm trucks, and if, in the estimation2451
of the tax commissioner, the amount of the tax due does not2452
warrant quarterly filing, the commissioner may authorize the2453
filing of the highwayfuel use tax return and payment of the full2454
amount due on or before the last day of each July for the next2455
preceding twelve months.2456

       Immediately upon the receipt of a highwayfuel use tax2457
return, the treasurer of state shall mark on the return the date2458
it was received by the treasurer of state and the amount of tax2459
payment accompanying the return and shall transmit the return to2460
the tax commissioner.2461

       The treasurer of state shall place to the credit of the tax2462
refund fund created by section 5703.052 of the Revised Code, out2463
of receipts from the taxes levied by section 5728.06 of the2464
Revised Code, amounts equal to the refund certified by the tax2465
commissioner pursuant to section 5728.061 of the Revised Code.2466
Receipts from the tax shall be used by the tax commissioner to2467
defray expenses incurred by the department of taxation in2468
administering sections 5728.01 to 5728.14 of the Revised Code.2469

       All moneys received in the state treasury from taxes levied2470
by section 5728.06 of the Revised Code and fees assessed under2471
sections 5728.02 andsection 5728.03 of the Revised Code which2472
that are not required to be placed to the credit of the tax refund2473
fund as provided by this section shall, during each calendar year,2474
be credited to the highway improvement bond retirement fund2475
created by section 5528.12 of the Revised Code until the2476
commissioners of the sinking fund certify to the treasurer of2477
state, as required by section 5528.17 of the Revised Code, that2478
there are sufficient moneys to the credit of the highway2479
improvement bond retirement fund to meet in full all payments of2480
interest, principal, and charges for the retirement of bonds and2481
other obligations issued pursuant to Section 2g of Article VIII,2482
Ohio Constitution, and sections 5528.10 and 5528.11 of the Revised2483
Code due and payable during the current calendar year and during2484
the next succeedingfollowing calendar year. From the date of the2485
receipt of the certification required by section 5528.17 of the2486
Revised Code by the treasurer of state until the thirty-first day2487
of December of the calendar year in which the certification is2488
made, all moneys received in the state treasury from taxes levied2489
under section 5728.06 of the Revised Code and fees assessed under2490
sections 5728.02 andsection 5728.03 of the Revised Code which2491
that are not required to be placed to the credit of the tax refund2492
fund as provided by this section shall be credited to the highway2493
obligations bond retirement fund created by section 5528.32 of the2494
Revised Code until the commissioners of the sinking fund certify2495
to the treasurer of state, as required by section 5528.38 of the2496
Revised Code, that there are sufficient moneys to the credit of2497
the highway obligations bond retirement fund to meet in full all2498
payments of interest, principal, and charges for the retirement of2499
bonds and other obligations issued pursuant to Section 2i of2500
Article VIII, Ohio Constitution, and sections 5528.30 and 5528.312501
of the Revised Code due and payable during the current calendar2502
year and during the next succeeding following calendar year. From2503
the date of the receipt of the certification required by section2504
5528.38 of the Revised Code by the treasurer of state until the2505
thirty-first day of December of the calendar year in which the2506
certification is made, all moneys received in the state treasury2507
from taxes levied under section 5728.06 of the Revised Code and2508
fees assessed under sections 5728.02 andsection 5728.03 of the2509
Revised Code whichthat are not required to be placed to the2510
credit of the tax refund fund as provided by this section shall be2511
credited to the highway operating fund created by section 5735.2912512
of the Revised Code, except as provided by the next succeeding2513
paragraph of this section.2514

       From the date of the receipt by the treasurer of state of2515
certifications from the commissioners of the sinking fund, as2516
required by sections 5528.18 and 5528.39 of the Revised Code,2517
certifying that the moneys to the credit of the highway2518
improvement bond retirement fund are sufficient to meet in full2519
all payments of interest, principal, and charges for the2520
retirement of all bonds and other obligations whichthat may be2521
issued pursuant to Section 2g of Article VIII, Ohio Constitution,2522
and sections 5528.10 and 5528.11 of the Revised Code, and to the2523
credit of the highway obligations bond retirement fund are2524
sufficient to meet in full all payments of interest, principal,2525
and charges for the retirement of all obligations issued pursuant2526
to Section 2i of Article VIII, Ohio Constitution, and sections2527
5528.30 and 5528.31 of the Revised Code, all moneys received in2528
the state treasury from the taxes levied under section 5728.06 and2529
fees assessed under sections 5728.02 andsection 5728.03 of the2530
Revised Code, whichthat are not required to be placed to the2531
credit of the tax refund fund as provided by this section, shall2532
be deposited to the credit of the highway operating fund.2533

       As used in this section, "farm truck" means any commercial2534
car or commercial tractor that is registered as a farm truck under2535
Chapter 4503. of the Revised Code.2536

       Sec. 5728.09.  (A) Any person who fails to file timely the2537
return required by section 5728.08 of the Revised Code may be2538
required to pay an additional charge equal to the greater of fifty2539
dollars or ten per cent of the tax due. The tax commissioner may2540
adopt rules providing for the imposition and remission of the2541
additional charges. Any additional charge imposed under this2542
section may be collected through an assessment as provided in2543
section 5728.10 of the Revised Code.2544

       (B) If the tax imposed by this chapter or section 5735.31 of2545
the Revised Code, or any portion of that tax, whether determined2546
by the tax commissioner or the taxpayer, is not paid on or before2547
the date prescribed in section 5728.08 of the Revised Code,2548
interest shall be collected and paid in the same manner as the2549
tax, upon that unpaid amount at the rate per annum prescribed by2550
section 5703.47 of the Revised Code from the date prescribed for2551
payment of the tax until it is paid or until the day an assessment2552
is issued under section 5728.10 of the Revised Code, whichever2553
occurs first. Any interest imposed under this chapter may be2554
collected through an assessment as provided in section 5728.10 of2555
the Revised Code.2556

       Sec. 5728.10.  (A) If any person required to file a highway2557
fuel use tax return by sections 5728.01 to 5728.14 of the Revised2558
Code, fails to file the return within the time prescribed by those2559
sections, files an incomplete return, files an incorrect return,2560
or fails to remit the full amount of the tax due for the period2561
covered by the return, the tax commissioner may make an assessment2562
against the person, based upon any information in the2563
commissioner's possession, for the period for which the tax was2564
due.2565

       No assessment shall be made against any person for any tax2566
imposed by this chapter more than four years after the last day of2567
the calendar year duringreturn date for the period for which the2568
tax was due or more than four years after the return for the2569
period was filed, whichever is later. This section does not bar2570
an assessment against any person who fails to file a highwayfuel2571
use tax return as required by this chapter, or who files a2572
fraudulent highwayfuel use tax return.2573

       A penalty of up to fifteen per cent may be added to the2574
amount of every assessment made pursuant to this section. The2575
commissioner may adopt rules providing for the imposition and2576
remission of penalties added to assessments made under this2577
section.2578

       The commissioner shall give the party assessed written notice2579
of the assessment asin the manner provided in section 5703.37 of2580
the Revised Code. With the notice, the commissioner shall provide2581
instructions on how to petition for reassessment and request a2582
hearing on the petition.2583

       (B) Unless the party to whom the notice of assessment is2584
directedassessed files with the tax commissioner within sixty2585
days after service of the notice of assessment, either personally2586
or by certified mail, a written petition for reassessment in2587
writing, signed by the party assessed, or by the party's2588
authorized agent having knowledge of the facts, the assessment2589
shall becomebecomes final and the amount of the assessment shall2590
beis due and payable from the party assessed to the treasurer of2591
state. The petition shall indicate the objections of the party2592
assessed, but additional objections may be raised in writing if2593
received by the commissioner prior to the date shown on the final2594
determination by the commissioner.2595

       Unless the petitioner waives a hearing, the commissioner2596
shall assign a time and place for the hearing on the petition and2597
notify the petitioner of the time and place of the hearing by2598
personal service or certified mail, but the commissioner may2599
continue the hearing from time to time if necessary.2600

       The commissioner may make such correction to the assessment2601
as the commissioner finds proper. The commissioner shall serve a2602
copy of the commissioner's final determination on the petitioner2603
by personal service or certified mail, and the commissioner's2604
decision in the matter shall be final, subject to appeal as2605
provided in section 5717.02 of the Revised Code. Only objections2606
decided on the merits by the board of tax appeals or a court shall2607
be given collateral estoppel or res judicata effect in considering2608
an application for refund of amounts paid pursuant to the2609
assessment. If the petition has been properly filed, the2610
commissioner shall proceed under section 5703.60 of the Revised2611
Code.2612

       (C) After an assessment becomes final, if any portion of the2613
assessment remains unpaid, including accrued interest, a certified2614
copy of the tax commissioner's entry making the assessment final2615
may be filed in the office of the clerk of the court of common2616
pleas in the county in which the party's place of business is2617
located or the county in which the party assessed resides. If the2618
party maintains no office in this state and is not a resident of2619
this state, the certified copy of the entry may be filed in the2620
office of the clerk of the court of common pleas of Franklin2621
county.2622

       The clerk, immediatelyImmediately upon the filing of the2623
entry, the clerk shall enter a judgment for the state of Ohio2624
against the party assessed in the amount shown on the entry. The2625
judgment may be filed by the clerk in a loose-leaf book entitled2626
"special judgments for state highwayfuel use tax," and shall have2627
the same effect as other judgments. Execution shall issue upon2628
the judgment upon the request of the tax commissioner, and all2629
laws applicable to sales on execution shall apply to sales made2630
under the judgment.2631

       The portion of the assessment not paid within sixty days2632
after the day the assessment was issued shall bear interest at the2633
rate per annum prescribed by section 5703.47 of the Revised Code2634
from the day the tax commissioner issues the assessment until it2635
is paid. Interest shall be paid in the same manner as the tax and2636
may be collected by the issuance of an assessment under this2637
section.2638

       (D) All money collected by the tax commissioner under this2639
section shall be paid into the state treasury in the same manner2640
as the revenues deriving from the taxes imposed by section 5728.062641
of the Revised Code.2642

       Sec. 5728.11.  (A) ThirtySixty days after service of an2643
assessment under section 5728.10 of the Revised Code, or when the2644
tax commissioner files a certified copy of an entry making an2645
assessment as provided in that section, hethe commissioner shall2646
suspend all highwayfuel use permits issued to the person against2647
whom the assessment was made, provided that no highwayfuel use2648
permit shall be suspended while an appeal is pending, except in2649
those cases in which no return has been filed, or where it is2650
alleged a fraudulent return has been filed.2651

       Upon suspension of a highwayfuel use permit, the2652
commissioner may require that the permit holder shall surrender to2653
the commissioner the permit and identification device.2654

       Upon payment in full of the assessment and interest, the tax2655
commissioner shall immediately reinstate all highwayfuel use2656
permits issued to the person against whom the assessment was made2657
which have been suspended.2658

       (B) If no returns have been filed within the time prescribed2659
for the filing of returns, or within any extension of time for2660
filing as the tax commissioner may grant in accordance with2661
section 5728.14 of the Revised Code, the commissioner, after2662
giving written notice of histhe commissioner's intention so to2663
do, immediately may suspend all highwayfuel use permits held by2664
the person failing to file a return. The notice shall be sent to2665
the last known address of the person. No permit which has been2666
suspended for failure to file a return shall be reinstated until2667
the person files complete and correct returns for all periods in2668
which no return has been filed and paid the full amount of the2669
tax, interest, and additional charges due.2670

       Sec. 5728.13. The provisions of sectionsSections 5728.02 to2671
5728.12, inclusive, of the Revised Code, do not apply to motor2672
vehicles, commercial cars, or commercial tractors owned and2673
operated by the United States, by this state, or any political2674
subdivisions thereof, nor to motor vehicles, commercial cars, or2675
commercial tractors owned by nonresidents of this state while2676
engaged solely in the interstate transportation of household goods2677
in Ohio, provided such owner has complied with the laws of the2678
state, district, or territory of his residence pertaining to the2679
registration and taxation of motor vehicles and complies with such2680
laws while operating and driving such motor vehicle upon the2681
public roads or highways of this state; provided that the owners2682
of motor vehicles similarly engaged and registered in this state2683
shall be exempt from all obligations pertaining to the2684
registration and taxation of motor vehicles in such other states,2685
districts, or territories. The provisions of this section do not2686
apply to vehicles, commercial cars, or commercial tractors owned2687
by nonresidents of this state when operated by a resident under2688
lease or any other arrangement. The tax commissioner shall be2689
authorized to determine whether or not such other states,2690
districts, or territories exempt such Ohio registered vehicles2691
from all obligations pertaining to the registration and taxation2692
of such motor vehicles and to prescribe such rules and regulations2693
as are required for the purpose of administering the provisions of2694
this section.2695

       Household goods means all goods consisting of personal2696
effects and property used or to be used in a dwelling when a part2697
of the equipment or supply of such dwellings and furniture,2698
fixtures, equipment, and the property of stores, offices, museums,2699
institutions, hospitals, or other establishments when part of the2700
stock, equipment, or supply of such stores, offices, museums,2701
institutions, hospitals, or other establishments, and articles2702
including objects of art, displays, and exhibits, which because of2703
their unusual nature or value require specialized handling and2704
equipment usually employed in moving household goodsor by any2705
other state or its political subdivisions if that state extends a2706
similar exemption to motor vehicles, commercial cars, or2707
commercial tractors owned and operated by this state or its2708
political subdivisions.2709

       Sec. 5733.021.  (A) Each taxpayer whichthat does not in the2710
month of January file the report and make the payment required by2711
section 5733.02 of the Revised Code shall make and file a2712
declaration of estimated tax report for the tax year.2713

       The declaration of estimated tax report shall be filed with2714
the treasurer of state on or before the last day of January in2715
such form as prescribed by the tax commissioner, and shall reflect2716
an estimate of the total amount due under this chapter for the tax2717
year.2718

       (B) A taxpayer required to file a declaration of estimated2719
tax report shall make remittance of such estimated tax to the2720
treasurer of state as follows:2721

       (1) The entire estimated tax at the time of filing the2722
declaration of estimated tax report, if such estimated tax is not2723
in excess of the minimum tax as provided in section 5733.06 of the2724
Revised Code;2725

       (2) If the estimated tax is in excess of the minimum tax:2726

       (a) One-third of the estimated tax at the time of filing the2727
declaration of estimated tax report;2728

       (b) Two-thirds of the estimated tax on or before the last2729
day of March of the tax year, unlessif the report and payment2730
required by section 5733.02 of the Revised Code is filed and paid2731
on or before the last day of March of the tax year;.2732

       (3) If the estimated tax due is in excess of the minimum2733
tax, and an extension of time for filing the report required by2734
section 5733.02 of the Revised Code has been granted pursuant to2735
section 5733.13 of the Revised Code;:2736

       (a) One-third of the estimated tax at the time of filing the2737
declaration of estimated tax report;2738

       (b) One-third of the estimated tax on or before the last day2739
of March of the tax year;2740

       (c) One-third of the estimated tax on or before the last day2741
of May of the tax year, unless the report and payments required by2742
section 5733.02 of the Revised Code are filed and paid on or2743
before the last day of May of the tax year.2744

       Remittance of the estimated tax shall be made in the form2745
prescribed by the treasurer of state, including electronic funds2746
transfer if required by section 5733.022 of the Revised Code.2747

       The treasurer of state shall credit all payments of such2748
estimated tax as provided in section 5733.12 of the Revised Code,2749
shall show on all reports the date each was filed and the amount2750
of payment remitted, and shall immediately transmit all reports2751
filed under this section to the tax commissioner.2752

       (C)(1) For any period of delinquency ending prior to the2753
first day of June of the tax year:2754

       (a) The penalty under division (A)(2) of section 5733.28 of2755
the Revised Code may only be imposed on the delinquent portion of2756
the estimated tax required to be paid under divisions (B)(2)(a)2757
and (b) and (B)(3)(a) and (b) of this section.2758

       (b) The interest under section 5733.26 of the Revised Code2759
shall only be imposed on the delinquent portion of estimated tax2760
required to be paid under divisions (B)(2)(a), (B)(2)(b),2761
(B)(3)(a), and (B)(3)(b) of this section.2762

       (c) If the taxpayer was not subject to tax for the2763
immediately preceding tax year, "estimated tax" for purposes of2764
division (C)(1) of this section is ninety per cent of the2765
qualifying tax for the current tax year. If the taxpayer was2766
subject to the tax for the immediately preceding tax year,2767
"estimated tax" for purposes of division (C)(1) of this section is2768
the lesser of one hundred per cent of the qualifying net tax for2769
the immediately preceding tax year or ninety per cent of the2770
qualifying net tax for the current tax year.2771

       (2) For any period of delinquency commencing the first day2772
of June of the tax year and concluding on the extended due date2773
pursuant to section 5733.13 of the Revised Code:2774

       (a) The penalty under division (A)(2) of section 5733.28 of2775
the Revised Code may only be imposed on the delinquent portion of2776
the estimated tax required to be paid under division (B)(3)(c) of2777
this section.2778

       (b) The interest under section 5733.26 of the Revised Code2779
shall be imposed on the delinquent portion of the amount in2780
division (C)(3)(a) of this section for the current tax year.2781

       (c) For purposes of division (C)(2) of this section,2782
"estimated tax" is ninety per cent of the qualifying net tax for2783
the current tax year.2784

       (3) If the taxpayer did not file a report under section2785
5733.02 of the Revised Code for the tax year or failed to prepare2786
and file the report in good faith for the tax year, "qualifying2787
net tax" as used in division (C) of this section for that tax year2788
means the amount described in division (C)(3)(a) of this division.2789
Otherwise, "qualifying net tax" as used in division (C) of this2790
section for that tax year means the lesser of the amount described2791
in division (C)(3)(a) or (b) of this section:2792

       (a) The tax imposed by sections 5733.06, 5733.065, and2793
5733.066 of the Revised Code for that tax year reduced by the2794
credits listed in section 5733.98 of the Revised Code. If the2795
credits exceed the total tax, the qualifying net tax is zero.2796

       (b) The lesser of the tax shown on the report, reduced by2797
the credits shown on that report, or the tax shown on an amended2798
report prepared and filed in good faith, reduced by the credits2799
shown on that amended report. If the credits shown exceed the2800
total tax shown, the qualifying net tax is zero.2801

       Sec. 5733.04.  As used in this chapter:2802

       (A) "Issued and outstanding shares of stock" applies to2803
nonprofit corporations, as provided in section 5733.01 of the2804
Revised Code, and includes, but is not limited to, membership2805
certificates and other instruments evidencing ownership of an2806
interest in such nonprofit corporations, and with respect to a2807
financial institution that does not have capital stock, "issued2808
and outstanding shares of stock" includes, but is not limited to,2809
ownership interests of depositors in the capital employed in such2810
an institution.2811

       (B) "Taxpayer" means a corporation subject to the tax imposed2812
by section 5733.06 of the Revised Code.2813

       (C) "Resident" means a corporation organized under the laws2814
of this state.2815

       (D) "Commercial domicile" means the principal place from2816
which the trade or business of the taxpayer is directed or2817
managed.2818

       (E) "Taxable year" means the period prescribed by division2819
(A) of section 5733.031 of the Revised Code upon the net income of2820
which the value of the taxpayer's issued and outstanding shares of2821
stock is determined under division (B) of section 5733.05 of the2822
Revised Code or the period prescribed by division (A) of section2823
5733.031 of the Revised Code that immediately precedes the date as2824
of which the total value of the corporation is determined under2825
division (A) or (C) of section 5733.05 of the Revised Code.2826

       (F) "Tax year" means the calendar year in and for which the2827
tax imposed by section 5733.06 of the Revised Code is required to2828
be paid.2829

       (G) "Internal Revenue Code" means the "Internal Revenue Code2830
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.2831

       (H) "Federal income tax" means the income tax imposed by the2832
Internal Revenue Code.2833

       (I) Except as provided in section 5733.058 of the Revised2834
Code, "net income" means the taxpayer's taxable income before2835
operating loss deduction and special deductions, as required to be2836
reported for the taxpayer's taxable year under the Internal2837
Revenue Code, subject to the following adjustments:2838

       (1)(a) Deduct any net operating loss incurred in any taxable2839
years ending in 1971 or thereafter but exclusive of any net2840
operating loss incurred in taxable years ending prior to January2841
1, 1971. This deduction shall not be allowed in any tax year2842
commencing before December 31, 1973, but shall be carried over and2843
allowed in tax years commencing after December 31, 1973, until2844
fully utilized in the next succeeding taxable year or years in2845
which the taxpayer has net income, but in no case for more than2846
the designated carryover period as described in division (I)(1)(b)2847
of this section. The amount of such net operating loss, as2848
determined under the allocation and apportionment provisions of2849
section 5733.051 and division (B) of section 5733.05 of the2850
Revised Code for the year in which the net operating loss occurs,2851
shall be deducted from net income, as determined under the2852
allocation and apportionment provisions of section 5733.051 and2853
division (B) of section 5733.05 of the Revised Code, to the extent2854
necessary to reduce net income to zero with the remaining unused2855
portion of the deduction, if any, carried forward to the remaining2856
years of the designated carryover period as described in division2857
(I)(1)(b) of this section, or until fully utilized, whichever2858
occurs first.2859

       (b) For losses incurred in taxable years ending on or before2860
December 31, 1981, the designated carryover period shall be the2861
five consecutive taxable years after the taxable year in which the2862
net operating loss occurred. For losses incurred in taxable years2863
ending on or after January 1, 1982, and beginning before August 6,2864
1997, the designated carryover period shall be the fifteen2865
consecutive taxable years after the taxable year in which the net2866
operating loss occurs. For losses incurred in taxable years2867
beginning on or after August 6, 1997, the designated carryover2868
period shall be the twenty consecutive taxable years after the2869
taxable year in which the net operating loss occurs.2870

       (c) The tax commissioner may require a taxpayer to furnish2871
any information necessary to support a claim for deduction under2872
division (I)(1)(a) of this section and no deduction shall be2873
allowed unless the information is furnished.2874

       (2) Deduct any amount included in net income by application2875
of section 78 or 951 of the Internal Revenue Code, amounts2876
received for royalties, technical or other services derived from2877
sources outside the United States, and dividends received from a2878
subsidiary, associate, or affiliated corporation that neither2879
transacts any substantial portion of its business nor regularly2880
maintains any substantial portion of its assets within the United2881
States. For purposes of determining net foreign source income2882
deductible under division (I)(2) of this section, the amount of2883
gross income from all such sources other than income derived by2884
application of section 78 or 951 of the Internal Revenue Code2885
shall be reduced by:2886

       (a) The amount of any reimbursed expenses for personal2887
services performed by employees of the taxpayer for the2888
subsidiary, associate, or affiliated corporation;2889

       (b) Ten per cent of the amount of royalty income and2890
technical assistance fees;2891

       (c) Fifteen per cent of the amount of dividends and all2892
other income.2893

       The amounts described in divisions (I)(2)(a) to (c) of this2894
section are deemed to be the expenses attributable to the2895
production of deductible foreign source income unless the taxpayer2896
shows, by clear and convincing evidence, less actual expenses, or2897
the tax commissioner shows, by clear and convincing evidence, more2898
actual expenses.2899

       (3) Add any loss or deduct any gain resulting from the sale,2900
exchange, or other disposition of a capital asset, or an asset2901
described in section 1231 of the Internal Revenue Code, to the2902
extent that such loss or gain occurred prior to the first taxable2903
year on which the tax provided for in section 5733.06 of the2904
Revised Code is computed on the corporation's net income. For2905
purposes of division (I)(3) of this section, the amount of the2906
prior loss or gain shall be measured by the difference between the2907
original cost or other basis of the asset and the fair market2908
value as of the beginning of the first taxable year on which the2909
tax provided for in section 5733.06 of the Revised Code is2910
computed on the corporation's net income. At the option of the2911
taxpayer, the amount of the prior loss or gain may be a percentage2912
of the gain or loss, which percentage shall be determined by2913
multiplying the gain or loss by a fraction, the numerator of which2914
is the number of months from the acquisition of the asset to the2915
beginning of the first taxable year on which the fee provided in2916
section 5733.06 of the Revised Code is computed on the2917
corporation's net income, and the denominator of which is the2918
number of months from the acquisition of the asset to the sale,2919
exchange, or other disposition of the asset. The adjustments2920
described in this division do not apply to any gain or loss where2921
the gain or loss is recognized by a qualifying taxpayer, as2922
defined in section 5733.0510 of the Revised Code, with respect to2923
a qualifying taxable event, as defined in that section.2924

       (4) Deduct the dividend received deduction provided by2925
section 243 of the Internal Revenue Code.2926

       (5) Deduct any interest or interest equivalent on public2927
obligations and purchase obligations to the extent included in2928
federal taxable income. As used in divisions (I)(5) and (6) of2929
this section, "public obligations," "purchase obligations," and2930
"interest or interest equivalent" have the same meanings as in2931
section 5709.76 of the Revised Code.2932

       (6) Add any loss or deduct any gain resulting from the sale,2933
exchange, or other disposition of public obligations to the extent2934
included in federal taxable income.2935

       (7) To the extent not otherwise allowed, deduct any2936
dividends or distributions received by a taxpayer from a public2937
utility, excluding an electric company, if the taxpayer owns at2938
least eighty per cent of the issued and outstanding common stock2939
of the public utility. As used in division (I)(7) of this2940
section, "public utility" means a public utility as defined in2941
Chapter 5727. of the Revised Code, whether or not the public2942
utility is doing business in the state.2943

       (8) To the extent not otherwise allowed, deduct any2944
dividends received by a taxpayer from an insurance company, if the2945
taxpayer owns at least eighty per cent of the issued and2946
outstanding common stock of the insurance company. As used in2947
division (I)(8) of this section, "insurance company" means an2948
insurance company that is taxable under Chapter 5725. or 5729. of2949
the Revised Code.2950

       (9) Deduct expenditures for modifying existing buildings or2951
structures to meet American national standards institute standard2952
A-117.1-1961 (R-1971), as amended; provided, that no deduction2953
shall be allowed to the extent that such deduction is not2954
permitted under federal law or under rules of the tax2955
commissioner. Those deductions as are allowed may be taken over a2956
period of five years. The tax commissioner shall adopt rules2957
under Chapter 119. of the Revised Code establishing reasonable2958
limitations on the extent that expenditures for modifying existing2959
buildings or structures are attributable to the purpose of making2960
the buildings or structures accessible to and usable by physically2961
handicapped persons.2962

       (10) Deduct the amount of wages and salaries, if any, not2963
otherwise allowable as a deduction but that would have been2964
allowable as a deduction in computing federal taxable income2965
before operating loss deduction and special deductions for the2966
taxable year, had the targeted jobs credit allowed and determined2967
under sections 38, 51, and 52 of the Internal Revenue Code not2968
been in effect.2969

       (11) Deduct net interest income on obligations of the United2970
States and its territories and possessions or of any authority,2971
commission, or instrumentality of the United States to the extent2972
the laws of the United States prohibit inclusion of the net2973
interest for purposes of determining the value of the taxpayer's2974
issued and outstanding shares of stock under division (B) of2975
section 5733.05 of the Revised Code. As used in division (I)(11)2976
of this section, "net interest" means interest net of any expenses2977
taken on the federal income tax return that would not have been2978
allowed under section 265 of the Internal Revenue Code if the2979
interest were exempt from federal income tax.2980

       (12)(a) Except as set forth in division (I)(12)(d) of this2981
section, to the extent not included in computing the taxpayer's2982
federal taxable income before operating loss deduction and special2983
deductions, add gains and deduct losses from direct or indirect2984
sales, exchanges, or other dispositions, made by a related entity2985
who is not a taxpayer, of the taxpayer's indirect, beneficial, or2986
constructive investment in the stock or debt of another entity,2987
unless the gain or loss has been included in computing the federal2988
taxable income before operating loss deduction and special2989
deductions of another taxpayer with a more closely related2990
investment in the stock or debt of the other entity. The amount2991
of gain added or loss deducted shall not exceed the product2992
obtained by multiplying such gain or loss by the taxpayer's2993
proportionate share, directly, indirectly, beneficially, or2994
constructively, of the outstanding stock of the related entity2995
immediately prior to the direct or indirect sale, exchange, or2996
other disposition.2997

       (b) Except as set forth in division (I)(12)(e) of this2998
section, to the extent not included in computing the taxpayer's2999
federal taxable income before operating loss deduction and special3000
deductions, add gains and deduct losses from direct or indirect3001
sales, exchanges, or other dispositions made by a related entity3002
who is not a taxpayer, of intangible property other than stock,3003
securities, and debt, if such property was owned, or used in whole3004
or in part, at any time prior to or at the time of the sale,3005
exchange, or disposition by either the taxpayer or by a related3006
entity that was a taxpayer at any time during the related entity's3007
ownership or use of such property, unless the gain or loss has3008
been included in computing the federal taxable income before3009
operating loss deduction and special deductions of another3010
taxpayer with a more closely related ownership or use of such3011
intangible property. The amount of gain added or loss deducted3012
shall not exceed the product obtained by multiplying such gain or3013
loss by the taxpayer's proportionate share, directly, indirectly,3014
beneficially, or constructively, of the outstanding stock of the3015
related entity immediately prior to the direct or indirect sale,3016
exchange, or other disposition.3017

       (c) As used in division (I)(12) of this section, "related3018
entity" means those entities described in divisions (I)(12)(c)(i)3019
to (iii) of this section:3020

       (i) An individual stockholder, or a member of the3021
stockholder's family enumerated in section 318 of the Internal3022
Revenue Code, if the stockholder and the members of the3023
stockholder's family own, directly, indirectly, beneficially, or3024
constructively, in the aggregate, at least fifty per cent of the3025
value of the taxpayer's outstanding stock;3026

       (ii) A stockholder, or a stockholder's partnership, estate,3027
trust, or corporation, if the stockholder and the stockholder's3028
partnerships, estates, trusts, and corporations own directly,3029
indirectly, beneficially, or constructively, in the aggregate, at3030
least fifty per cent of the value of the taxpayer's outstanding3031
stock;3032

       (iii) A corporation, or a party related to the corporation3033
in a manner that would require an attribution of stock from the3034
corporation to the party or from the party to the corporation3035
under division (I)(12)(c)(iv) of this section, if the taxpayer3036
owns, directly, indirectly, beneficially, or constructively, at3037
least fifty per cent of the value of the corporation's outstanding3038
stock.3039

       (iv) The attribution rules of section 318 of the Internal3040
Revenue Code apply for purposes of determining whether the3041
ownership requirements in divisions (I)(12)(c)(i) to (iii) of this3042
section have been met.3043

       (d) For purposes of the adjustments required by division3044
(I)(12)(a) of this section, the term "investment in the stock or3045
debt of another entity" means only those investments where the3046
taxpayer and the taxpayer's related entities directly, indirectly,3047
beneficially, or constructively own, in the aggregate, at any time3048
during the twenty-four month period commencing one year prior to3049
the direct or indirect sale, exchange, or other disposition of3050
such investment at least fifty per cent or more of the value of3051
either the outstanding stock or such debt of such other entity.3052

       (e) For purposes of the adjustments required by division3053
(I)(12)(b) of this section, the term "related entity" excludes all3054
of the following:3055

       (i) Foreign corporations as defined in section 7701 of the3056
Internal Revenue Code;3057

       (ii) Foreign partnerships as defined in section 7701 of the3058
Internal Revenue Code;3059

       (iii) Corporations, partnerships, estates, and trusts3060
created or organized in or under the laws of the Commonwealth of3061
Puerto Rico or any possession of the United States;3062

       (iv) Foreign estates and foreign trusts as defined in3063
section 7701 of the Internal Revenue Code.3064

       The exclusions described in divisions (I)(12)(e)(i) to (iv)3065
of this section do not apply if the corporation, partnership,3066
estate, or trust is described in any one of divisions (C)(1) to3067
(5) of section 5733.042 of the Revised Code.3068

       (f) Nothing in division (I)(12) of this section shall3069
require or permit a taxpayer to add any gains or deduct any losses3070
described in divisions (I)(12)(f)(i) and (ii) of this section:3071

       (i) Gains or losses recognized for federal income tax3072
purposes by an individual, estate, or trust without regard to the3073
attribution rules described in division (I)(12)(c) of this3074
section;3075

       (ii) A related entity's gains or losses described in3076
division (I)(12)(b) if the taxpayer's ownership of or use of such3077
intangible property was limited to a period not exceeding nine3078
months and was attributable to a transaction or a series of3079
transactions executed in accordance with the election or elections3080
made by the taxpayer or a related entity pursuant to section 3383081
of the Internal Revenue Code.3082

       (13) Any adjustment required by section 5733.042 of the3083
Revised Code.3084

       (14) Add any amount claimed as a credit under section3085
5733.0611 of the Revised Code to the extent that such amount3086
satisfies either of the following:3087

       (a) It was deducted or excluded from the computation of the3088
corporation's taxable income before operating loss deduction and3089
special deductions as required to be reported for the3090
corporation's taxable year under the Internal Revenue Code;3091

       (b) It resulted in a reduction of the corporation's taxable3092
income before operating loss deduction and special deductions as3093
required to be reported for any of the corporation's taxable years3094
under the Internal Revenue Code.3095

       (15) Deduct the amount contributed by the taxpayer to an3096
individual development account program established by a county3097
department of job and family services pursuant to sections 329.113098
to 329.14 of the Revised Code for the purpose of matching funds3099
deposited by program participants. On request of the tax3100
commissioner, the taxpayer shall provide any information that, in3101
the tax commissioner's opinion, is necessary to establish the3102
amount deducted under division (I)(15) of this section.3103

       (16) Any adjustment required by section 5733.0510 of the3104
Revised Code.3105

       (J) Any term used in this chapter has the same meaning as3106
when used in comparable context in the laws of the United States3107
relating to federal income taxes unless a different meaning is3108
clearly required. Any reference in this chapter to the Internal3109
Revenue Code includes other laws of the United States relating to3110
federal income taxes.3111

       (K) "Financial institution" has the meaning given by section3112
5725.01 of the Revised Code but does not include a production3113
credit association as described in 85 Stat. 597, 12 U.S.C.A. 2091.3114

       (L)(1) A "qualifying holding company" is any corporation3115
satisfying all of the following requirements:3116

       (a) Subject to divisions (L)(2) and (3) of this section, the3117
net book value of the corporation's intangible assets is greater3118
than or equal to ninety per cent of the net book value of all of3119
its assets and at least fifty per cent of the net book value of3120
all of its assets represents direct or indirect investments in the3121
equity of, loans and advances to, and accounts receivable due from3122
related members;3123

       (b) At least ninety per cent of the corporation's gross3124
income for the taxable year is attributable to the following:3125

       (i) The maintenance, management, ownership, acquisition,3126
use, and disposition of its intangible property, its aircraft the3127
use of which is not subject to regulation under 14 C.F.R. part 1213128
or part 135, and any real property described in division (L)(2)(c)3129
of this section;3130

       (ii) The collection and distribution of income from such3131
property.3132

       (c) The corporation is not a financial institution on the3133
last day of the taxable year ending prior to the first day of the3134
tax year;3135

       (d) The corporation's related members make a good faith and3136
reasonable effort to make timely and fully the adjustments3137
required by division (C)(2) of section 5733.05 of the Revised Code3138
and to pay timely and fully all uncontested taxes, interest,3139
penalties, and other fees and charges imposed under this chapter;3140

       (e) Subject to division (L)(4) of this section, the3141
corporation elects to be treated as a qualifying holding company3142
for the tax year.3143

       A corporation otherwise satisfying divisions (L)(1)(a) to (e)3144
of this section that does not elect to be a qualifying holding3145
company is not a qualifying holding company for the purposes of3146
this chapter.3147

       (2)(a)(i) For purposes of making the ninety per cent3148
computation under division (L)(1)(a) of this section, the net book3149
value of the corporation's assets shall not include the net book3150
value of aircraft or real property described in division3151
(L)(1)(b)(i) of this section.3152

       (ii) For purposes of making the fifty per cent computation3153
under division (L)(1)(a) of this section, the net book value of3154
assets shall include the net book value of aircraft or real3155
property described in division (L)(1)(b)(i) of this section.3156

       (b)(i) As used in division (L) of this section, "intangible3157
asset" includes, but is not limited to, the corporation's direct3158
interest in each pass-through entity only if at all times during3159
the corporation's taxable year ending prior to the first day of3160
the tax year the corporation's and the corporation's related3161
members' combined direct and indirect interests in the capital or3162
profits of such pass-through entity do not exceed fifty per cent.3163
If the corporation's interest in the pass-through entity is an3164
intangible asset for that taxable year, then the distributive3165
share of any income from the pass-through entity shall be income3166
from an intangible asset for that taxable year.3167

       (ii) If a corporation's and the corporation's related3168
members' combined direct and indirect interests in the capital or3169
profits of a pass-through entity exceed fifty per cent at any time3170
during the corporation's taxable year ending prior to the first3171
day of the tax year, "intangible asset" does not include the3172
corporation's direct interest in the pass-through entity, and the3173
corporation shall include in its assets its proportionate share of3174
the assets of any such pass-through entity and shall include in3175
its gross income its distributive share of the gross income of3176
such pass-through entity in the same form as was earned by the3177
pass-through entity.3178

       (iii) A pass-through entity's direct or indirect3179
proportionate share of any other pass-through entity's assets3180
shall be included for the purpose of computing the corporation's3181
proportionate share of the pass-through entity's assets under3182
division (L)(2)(b)(ii) of this section, and such pass-through3183
entity's distributive share of any other pass-through entity's3184
gross income shall be included for purposes of computing the3185
corporation's distributive share of the pass-through entity's3186
gross income under division (L)(2)(b)(ii) of this section.3187

       (c) For the purposes of divisions (L)(1)(b)(i), (1)(b)(ii),3188
(2)(a)(i), and (2)(a)(ii) of this section, real property is3189
described in division (L)(2)(c) of this section only if all of the3190
following conditions are present at all times during the taxable3191
year ending prior to the first day of the tax year:3192

       (i) The real property serves as the headquarters of the3193
corporation's trade or business, or is the place from which the3194
corporation's trade or business is principally managed or3195
directed;3196

       (ii) Not more than ten per cent of the value of the real3197
property and not more than ten per cent of the square footage of3198
the building or buildings that are part of the real property is3199
used, made available, or occupied for the purpose of providing,3200
acquiring, transferring, selling, or disposing of tangible3201
property or services in the normal course of business to persons3202
other than related members, the corporation's employees and their3203
families, and such related members' employees and their families.3204

       (d) As used in division (L) of this section, "related3205
member" has the same meaning as in division (A)(6) of section3206
5733.042 of the Revised Code without regard to division (B) of3207
that section.3208

       (3) The percentages described in division (L)(1)(a) of this3209
section shall be equal to the quarterly average of those3210
percentages as calculated during the corporation's taxable year3211
ending prior to the first day of the tax year.3212

       (4) With respect to the election described in division3213
(L)(1)(e) of this section:3214

       (a) The election need not accompany a timely filed report;3215

       (b) The election need not accompany the report; rather, the3216
election may accompany a subsequently filed but timely application3217
for refund and timely amended report, or a subsequently filed but3218
timely petition for reassessment;3219

       (c) The election is not irrevocable;3220

       (d) The election applies only to the tax year specified by3221
the corporation;3222

       (e) The corporation's related members comply with division3223
(L)(1)(d) of this section.3224

       Nothing in division (L)(4) of this section shall be construed3225
to extend any statute of limitations set forth in this chapter.3226

       (M) "Qualifying controlled group" means two or more3227
corporations that satisfy the ownership and control requirements3228
of division (A) of section 5733.052 of the Revised Code.3229

       (N) "Limited liability company" means any limited liability3230
company formed under Chapter 1705. of the Revised Code or under3231
the laws of any other state.3232

       (O) "Pass-through entity" means a corporation that has made3233
an election under subchapter S of Chapter 1 of Subtitle A of the3234
Internal Revenue Code for its taxable year under that code, or a3235
partnership, limited liability company, or any other person, other3236
than an individual, trust, or estate, if the partnership, limited3237
liability company, or other person is not classified for federal3238
income tax purposes as an association taxed as a corporation.3239

       (P) "Electric company" and "combined company" have the same3240
meanings as in section 5727.01 of the Revised Code.3241

       Sec. 5733.05.  As used in this section, "qualified research"3242
means laboratory research, experimental research, and other3243
similar types of research; research in developing or improving a3244
product; or research in developing or improving the means of3245
producing a product. It does not include market research,3246
consumer surveys, efficiency surveys, management studies, ordinary3247
testing or inspection of materials or products for quality3248
control, historical research, or literary research. "Product" as3249
used in this paragraph does not include services or intangible3250
property.3251

       The annual report determines the value of the issued and3252
outstanding shares of stock of the taxpayer, which under division3253
(A) or divisions (B) and (C) of this section is the base or3254
measure of the franchise tax liability. Such determination shall3255
be made as of the date shown by the report to have been the3256
beginning of the corporation's annual accounting period that3257
includes the first day of January of the tax year. For the3258
purposes of this chapter, the value of the issued and outstanding3259
shares of stock of any corporation that is a financial institution3260
shall be deemed to be the value as calculated in accordance with3261
division (A) of this section. For the purposes of this chapter,3262
the value of the issued and outstanding shares of stock of any3263
corporation that is not a financial institution shall be deemed to3264
be the values as calculated in accordance with divisions (B) and3265
(C) of this section. Except as otherwise required by this section3266
or section 5733.056 of the Revised Code, the value of a taxpayer's3267
issued and outstanding shares of stock does not include any amount3268
that is treated as a liability under generally accepted accounting3269
principles.3270

       (A) The total value, as shown by the books of the financial3271
institution, of its capital, surplus, whether earned or unearned,3272
undivided profits, and reserves shall be determined as prescribed3273
by section 5733.056 of the Revised Code for tax years 1998 and3274
thereafter.3275

       (B) The sum of the corporation's net income during the3276
corporation's taxable year, allocated or apportioned to this state3277
as prescribed in divisions (B)(1) and (2) of this section, and3278
subject to sections 5733.052, 5733.053, 5733.057, 5733.058,3279
5733.059, and 5733.0510 of the Revised Code:3280

       (1) The net income allocated to this state as provided by3281
section 5733.051 of the Revised Code.3282

       (2) The amount of Ohio apportioned net income from sources3283
other than those allocated under section 5733.051 of the Revised3284
Code, which shall be determined by multiplying the corporation's3285
net income by a fraction. The numerator of the fraction is the3286
sum of the following products: the property factor multiplied by3287
twenty, the payroll factor multiplied by twenty, and the sales3288
factor multiplied by sixty. The denominator of the fraction is3289
one hundred, provided that the denominator shall be reduced by3290
twenty if the property factor has a denominator of zero, by twenty3291
if the payroll factor has a denominator of zero, and by sixty if3292
the sales factor has a denominator of zero.3293

       The property, payroll, and sales factors shall be determined3294
as follows:3295

       (a) The property factor is a fraction the numerator of which3296
is the average value of the corporation's real and tangible3297
personal property owned or rented, and used in the trade or3298
business in this state during the taxable year, and the3299
denominator of which is the average value of all the corporation's3300
real and tangible personal property owned or rented, and used in3301
the trade or business everywhere during such year. There shall be3302
excluded from the numerator and denominator of the property factor3303
the original cost of all of the following property within Ohio:3304
property with respect to which a "pollution control facility"3305
certificate has been issued pursuant to section 5709.21 of the3306
Revised Code; property with respect to which an "industrial water3307
pollution control certificate" has been issued pursuant to section3308
6111.31 of the Revised Code; and property used exclusively during3309
the taxable year for qualified research.3310

       (i) Property owned by the corporation is valued at its3311
original cost. Property rented by the corporation is valued at3312
eight times the net annual rental rate. "Net annual rental rate"3313
means the annual rental rate paid by the corporation less any3314
annual rental rate received by the corporation from subrentals.3315

       (ii) The average value of property shall be determined by3316
averaging the values at the beginning and the end of the taxable3317
year, but the tax commissioner may require the averaging of3318
monthly values during the taxable year, if reasonably required to3319
reflect properly the average value of the corporation's property.3320

       (b) The payroll factor is a fraction the numerator of which3321
is the total amount paid in this state during the taxable year by3322
the corporation for compensation, and the denominator of which is3323
the total compensation paid everywhere by the corporation during3324
such year. There shall be excluded from the numerator and the3325
denominator of the payroll factor the total compensation paid in3326
this state to employees who are primarily engaged in qualified3327
research.3328

       (i) Compensation means any form of remuneration paid to an3329
employee for personal services.3330

       (ii) Compensation is paid in this state if: (1) the3331
recipient's service is performed entirely within this state, (2)3332
the recipient's service is performed both within and without this3333
state, but the service performed without this state is incidental3334
to the recipient's service within this state, (3) some of the3335
service is performed within this state and either the base of3336
operations, or if there is no base of operations, the place from3337
which the service is directed or controlled is within this state,3338
or the base of operations or the place from which the service is3339
directed or controlled is not in any state in which some part of3340
the service is performed, but the recipient's residence is in this3341
state.3342

       (iii) Compensation is paid in this state to any employee of3343
a common or contract motor carrier corporation, who performs the3344
employee's regularly assigned duties on a motor vehicle in more3345
than one state, in the same ratio by which the mileage traveled by3346
such employee within the state bears to the total mileage traveled3347
by such employee everywhere during the taxable year.3348

       (c) Except as provided in section 5733.059 of the Revised3349
Code, the sales factor is a fraction the numerator of which is the3350
total sales in this state by the corporation during the taxable3351
year, and the denominator of which is the total sales by the3352
corporation everywhere during such year. In determining the3353
numerator and denominator of the sales factor, receipts from the3354
sale or other disposal of a capital asset or an asset described in3355
section 1231 of the Internal Revenue Code shall be eliminated. 3356
Also, in determining the numerator and denominator of the sales3357
factor, in the case of a reporting corporation owning at least3358
eighty per cent of the issued and outstanding common stock of one3359
or more insurance companies or public utilities, except an3360
electric company, or owning at least twenty-five per cent of the3361
issued and outstanding common stock of one or more financial3362
institutions, receipts received by the reporting corporation from3363
such utilities, insurance companies, and financial institutions3364
shall be eliminated.3365

       For the purpose of this section and section 5733.03 of the3366
Revised Code, sales of tangible personal property are in this3367
state where such property is received in this state by the3368
purchaser. In the case of delivery of tangible personal property3369
by common carrier or by other means of transportation, the place3370
at which such property is ultimately received after all3371
transportation has been completed shall be considered as the place3372
at which such property is received by the purchaser. Direct3373
delivery in this state, other than for purposes of transportation,3374
to a person or firm designated by a purchaser constitutes delivery3375
to the purchaser in this state, and direct delivery outside this3376
state to a person or firm designated by a purchaser does not3377
constitute delivery to the purchaser in this state, regardless of3378
where title passes or other conditions of sale.3379

       Except as provided in section 5733.059 of the Revised Code,3380
sales, other than sales of tangible personal property, are in this3381
state if either:3382

       (i) The income-producing activity is performed solely in3383
this state;3384

       (ii) The income-producing activity is performed both within3385
and without this state and a greater proportion of the3386
income-producing activity is performed within this state than in3387
any other state, based on costs of performance.3388

       (d) If the allocation and apportionment provisions of3389
division (B) of this section do not fairly represent the extent of3390
the taxpayer's business activity in this state, the taxpayer may3391
request, which request must be in writing and must accompany the3392
report, timely filed petition for reassessment, or timely filed3393
amended report, or the tax commissioner may require, in respect to3394
all or any part of the taxpayer's allocated or apportioned base,3395
if reasonable, any one or more of the following:3396

       (i) Separate accounting;3397

       (ii) The exclusion of any one or more of the factors;3398

       (iii) The inclusion of one or more additional factors that3399
will fairly represent the taxpayer's allocated or apportioned base3400
in this state.3401

       An alternative method will be effective only with approval by3402
the tax commissioner.3403

       Nothing in this section shall be construed to extend any3404
statute of limitations set forth in this chapter.3405

       (C)(1) Subject to divisions (C)(2) and (3) of this section,3406
the total value, as shown on the books of each corporation that is3407
not a qualified holding company, of the net book value of a3408
corporation's assets less the net carrying value of its3409
liabilities, and excluding from the corporation's assets land3410
devoted exclusively to agricultural use as of the first Monday of3411
June in the corporation's taxable year as determined by the county3412
auditor of the county in which the land is located pursuant to3413
section 5713.31 of the Revised Code. For the purposes of3414
determining that total value, any reserves shown on the3415
corporation's books shall be considered liabilities or contra3416
assets, except for any reserves that are deemed appropriations of3417
retained earnings under generally accepted accounting principles.3418

       (2)(a) If, on the last day of the taxpayer's taxable year3419
preceding the tax year, the taxpayer is a related member to a3420
corporation that elects to be a qualifying holding company for the3421
tax year beginning after the last day of the taxpayer's taxable3422
year, or if, on the last day of the taxpayer's taxable year3423
preceding the tax year, a corporation that elects to be a3424
qualifying holding company for the tax year beginning after the3425
last day of the taxpayer's taxable year is a related member to the3426
taxpayer, then the taxpayer's total value shall be adjusted by the3427
qualifying amount. Except as otherwise provided under division3428
(C)(2)(b) of this section, "qualifying amount" means the amount3429
that, when added to the taxpayer's total value, and when3430
subtracted from the net carrying value of the taxpayer's3431
liabilities computed without regard to division (C)(2) of this3432
section, or when subtracted from the taxpayer's total value and3433
when added to the net carrying value of the taxpayer's liabilities3434
computed without regard to division (C)(2) of this section,3435
results in the taxpayer's debt-to-equity ratio equaling the3436
debt-to-equity ratio of the qualifying controlled group on the3437
last day of the taxable year ending prior to the first day of the3438
tax year computed on a consolidated basis in accordance with3439
general accepted accounting principles. For the purposes of3440
division (C)(2)(a) of this section, the corporation's total value,3441
after the adjustment required by that division, shall not exceed3442
the net book value of the corporation's assets.3443

       (b)(i) The amount added to the taxpayer's total value and3444
subtracted from the net carrying value of the taxpayer's3445
liabilities shall not exceed the amount of the net carrying value3446
of the taxpayer's liabilities owed to the taxpayer's related3447
members.3448

       (ii) A liability owed to the taxpayer's related members3449
includes, but is not limited to, any amount that the corporation3450
owes to a person that is not a related member if the corporation's3451
related member or related members in whole or in part guarantee3452
any portion or all of that amount, or pledge, hypothecate,3453
mortgage, or carry out any similar transactions to secure any3454
portion or all of that amount.3455

       (3) The base upon which the tax is levied under division (C)3456
of section 5733.06 of the Revised Code shall be computed by3457
multiplying the amount determined under divisions (C)(1) and (2)3458
of this section by the fraction determined under divisions3459
(B)(2)(a) to (c) of this section and, if applicable, divisions3460
(B)(2)(d)(ii) to (iv) of this section but without regard to3461
section 5733.052 of the Revised Code.3462

       (4) For purposes of division (C) of this section, "related3463
member" has the same meaning as in division (A)(6) of section3464
5733.042 of the Revised Code without regard to division (B) of3465
that section.3466

       Sec. 5733.11.  (A) If any corporation required to file a3467
report under this chapter fails to file the report within the time3468
prescribed, files an incorrect report, or fails to remit the full3469
amount of the tax due for the period covered by the report, the3470
tax commissioner may make an assessment against the corporation3471
for any deficiency for the period for which the report or tax is3472
due, based upon any information in the commissioner's possession.3473

       No assessment shall be made or issued against a corporation3474
more than three years after the later of the final date the report3475
subject to assessment was required to be filed or the date the3476
report was filed. Such time limit may be extended if both the3477
corporation and the commissioner consent in writing to the3478
extension. Any such extension shall extend the three-year time3479
limit in division (B) of section 5733.12 of the Revised Code for3480
the same period of time. There shall be no bar or limit to an3481
assessment against a corporation that fails to file a report3482
subject to assessment as required by this chapter, or that files a3483
fraudulent report.3484

       The commissioner shall give the corporation assessed written3485
notice of the assessment asin the manner provided in section3486
5703.37 of the Revised Code. With the notice, the commissioner3487
shall provide instructions on how to petition for reassessment and3488
request a hearing on the petition.3489

       (B) Unless the corporation to which the notice of assessment3490
is directedassessed files with the tax commissioner within sixty3491
days after service thereofof the notice of assessment, either3492
personally or by certified mail as provided in section 5703.056 of3493
the Revised Code, a written petition for reassessment in writing,3494
signed by the corporation's authorized agent of the corporation3495
assessed having knowledge of the facts, and makes payment of the3496
portion of the assessment required by division (E) of this3497
section, the assessment shall becomebecomes final, and the amount3498
of the assessment shall beis due and payable from the corporation3499
assessed to the treasurer of state. The petition shall indicate3500
the corporation's objections, but additional objections may be3501
raised in writing if received by the commissioner prior to the3502
date shown on the final determination by the commissioner.3503

       Unless the petitioner waives a hearing, the commissioner3504
shall assign a time and place for the hearing on the petition and3505
notify the petitioner of the time and place of the hearing by3506
personal service or certified mail, but the commissioner may3507
continue the hearing from time to time if necessary.3508

       The commissioner may make such correction to the assessment3509
as the commissioner finds proper. The commissioner shall serve a3510
copy of the final determination on the petitioner by personal3511
service or by certified mail, and the commissioner's decision in3512
the matter shall be final, subject to appeal as provided in3513
section 5717.02 of the Revised Code. Only objections decided on3514
the merits by the board of tax appeals or a court shall be given3515
collateral estoppel or res judicata effect in considering an3516
application for refund of amounts paid pursuant to the assessment.3517
If the petition has been properly filed, the commissioner shall3518
proceed under section 5703.60 of the Revised Code.3519

       (C) After an assessment becomes final, if any portion of the3520
assessment remains unpaid, including accrued interest, a certified3521
copy of the tax commissioner's entry making the assessment final3522
may be filed in the office of the clerk of the court of common3523
pleas in the county in which the corporation has an office or3524
place of business in this state, the county in which the3525
corporation's statutory agent is located, or Franklin county.3526

       Immediately upon the filing of the entry, the clerk shall3527
enter a judgment against the corporation assessed in the amount3528
shown on the entry. The judgment may be filed by the clerk in a3529
loose-leaf book entitled "special judgments for state corporate3530
franchise and litter taxes," and shall have the same effect as3531
other judgments. Execution shall issue upon the judgment upon the3532
request of the tax commissioner, and all laws applicable to sales3533
on execution shall apply to sales made under the judgment.3534

       The portion of an assessment not paid within sixty days after3535
the day the assessment was issued shall bear interest at the rate3536
per annum prescribed by section 5703.47 of the Revised Code from3537
the day the tax commissioner issues the assessment until the3538
assessment is paid. Interest shall be paid in the same manner as3539
the tax and may be collected by issuing an assessment under this3540
section.3541

       (D) All money collected under this section shall be3542
considered as revenue arising from the taxes imposed by this3543
chapter.3544

       (E) The portion of an assessment whichthat must be paid3545
upon the filing of a petition for reassessment shall be as3546
follows:3547

       (1) If the sole item objected to is the assessed penalty or3548
interest, payment of the assessment, including interest but not3549
penalty, is required;3550

       (2) If the corporation assessed failed to file, prior to the3551
date of issuance of the assessment, the annual report required by3552
section 5733.02 of the Revised Code, any amended report required3553
by division (C) of section 5733.031 of the Revised Code for the3554
tax year at issue, or any amended report required by division (D)3555
of section 5733.067 of the Revised Code to indicate a reduction in3556
the amount of the credit provided under that section, payment of3557
the assessment, including interest but not penalty, is required;3558

       (3) If the corporation assessed filed, prior to the date of3559
issuance of the assessment, the annual report required by section3560
5733.02 of the Revised Code, all amended reports required by3561
division (C) of section 5733.031 of the Revised Code for the tax3562
year at issue, and all amended reports required by division (D) of3563
section 5733.067 of the Revised Code to indicate a reduction in3564
the amount of the credit provided under that section, and a3565
balance of the taxes shown due on the reports as computed on the3566
reports remains unpaid, payment of only that portion of the3567
assessment representing the unpaid balance of tax and interest is3568
required;3569

       (4) If the corporation assessed does not dispute that it is3570
a taxpayer but claims the protections of section 101 of Public Law3571
86-272, 73 Stat. 555, 15 U.S.C.A. 381, as amended, payment of only3572
that portion of the assessment representing any balance of taxes3573
shown due on the corporation's annual report required by section3574
5733.02 of the Revised Code, as computed on the report, that3575
remains unpaid, and that represents taxes imposed by division (C)3576
of section 5733.06, division (C)(2) of section 5733.065, and3577
division (C) of section 5733.066 of the Revised Code, together3578
with all related interest, is required;3579

       (5) If none of the conditions specified in divisions (E)(1)3580
to (4) of this section apply, or if the corporation assessed3581
disputes that it is a taxpayer, no payment is required.3582

       (F) Notwithstanding the fact that a petition for3583
reassessment is pending, the corporation may pay all or a portion3584
of the assessment that is the subject of the petition. The3585
acceptance of a payment by the treasurer of state does not3586
prejudice any claim for refund upon final determination of the3587
petition.3588

       If upon final determination of the petition an error in the3589
assessment is corrected by the tax commissioner, upon petition so3590
filed or pursuant to a decision of the board of tax appeals or any3591
court to which the determination or decision has been appealed, so3592
that the amount due from the corporation under the corrected3593
assessment is less than the portion paid, there shall be issued to3594
the corporation, its assigns, or legal representative a refund in3595
the amount of the overpayment as provided by section 5733.12 of3596
the Revised Code, with interest on that amount as provided by3597
section 5733.26 of the Revised Code, subject to section 5733.1213598
of the Revised Code.3599

       Sec. 5733.12.  (A) Four and two-tenths per cent of all3600
payments received by the treasurer of state and by the tax3601
commissioner from the taxes imposed under sections 5733.06 and3602
5733.41 of the Revised Code shall be credited to the local3603
government fund for distribution in accordance with section3604
5747.50 of the Revised Code, six-tenths of one per cent shall be3605
credited to the local government revenue assistance fund for3606
distribution in accordance with section 5747.61 of the Revised3607
Code, and ninety-five and two-tenths per cent shall be credited to3608
the general revenue fund.3609

       (B) Except as otherwise provided under divisions (C) and (D)3610
of this section, an application to refund to the corporation the3611
amount of taxes imposed under section 5733.06 of the Revised Code3612
that are overpaid, paid illegally or erroneously, or paid on any3613
illegal, erroneous, or excessive assessment, with interest thereon3614
as provided by section 5733.26 of the Revised Code, shall be filed3615
with the tax commissioner, on the form prescribed by the3616
commissioner, within three years from the date of the illegal,3617
erroneous, or excessive payment of the tax, or within any3618
additional period allowed by division (C)(2) of section 5733.031,3619
division (D)(2) of section 5733.067, or division (A) of section3620
5733.11 of the Revised Code. For purposes of division (B) of this3621
section, any payment that the applicant made before the due date3622
or extended due date for filing the report to which the payment3623
relates shall be deemed to have been made on the due date or3624
extended due date.3625

       On the filing of the refund application, the commissioner3626
shall determine the amount of refund due andto which the3627
applicant is entitled. If the amount is not less than that3628
claimed, the commissioner shall certify suchthe amount to the3629
director of budget and management and treasurer of state for3630
payment from the tax refund fund created by section 5703.052 of3631
the Revised Code. If the amount is less than that claimed, the3632
commissioner shall proceed in accordance with section 5703.70 of3633
the Revised Code.3634

       (C) "Ninety days" shall be substituted for "three years" in3635
division (B) of this section if the taxpayer satisfies both of the3636
following:3637

       (1) The taxpayer has applied for a refund based in whole or3638
in part upon section 5733.0611 of the Revised Code;3639

       (2) The taxpayer asserts that the imposition or collection3640
of the tax imposed or charged by section 5733.06 of the Revised3641
Code or any portion of such tax violates the Constitution of the3642
United States or the Constitution of this state.3643

       (D)(1) Division (D)(2) of this section applies only if all3644
of the following conditions are satisfied:3645

       (a) A qualifying pass-through entity pays an amount of the3646
tax imposed by section 5733.41 of the Revised Code;3647

       (b) The taxpayer is a qualifying investor as to that3648
qualifying pass-through entity;3649

       (c) The taxpayer did not claim the credit provided for in3650
section 5733.0611 of the Revised Code as to the tax described in3651
division (D)(1)(a) of this section;3652

       (d) The three-year period described in division (B) of this3653
section has ended as to the taxable year for which the taxpayer3654
otherwise would have claimed that credit.3655

       (2) A taxpayer shall file an application for refund pursuant3656
to this division within one year after the date the payment3657
described in division (D)(1)(a) of this section is made. An3658
application filed under this division shall only claim refund of3659
overpayments resulting from the taxpayer's failure to claim the3660
credit described in division (D)(1)(c) of this section. Nothing3661
in this division shall be construed to relieve a taxpayer from3662
complying with the provisions of division (I)(14) of section3663
5733.04 of the Revised Code.3664

       Sec. 5733.28.  (A) In addition to any other penalty imposed3665
by this chapter or Chapter 5703. of the Revised Code, the3666
following penalties shall apply:3667

       (1) If a taxpayer required to file any report, including an3668
informational notice or report, under this chapter fails to make3669
and file the report within the time prescribed, including any3670
extensions of time granted by the tax commissioner, a penalty may3671
be imposed not exceeding the greater of fifty dollars per month or3672
fraction of a month, not to exceed five hundred dollars, or five3673
per cent per month or fraction of a month, not to exceed fifty per3674
cent, of the tax required to be shown on the report, for each3675
month or fraction of a month elapsing between the due date,3676
including extensions of the due date, and the date on which filed.3677

       (2) IfExcept as provided in division (C) of section 5733.0213678
of the Revised Code, if a taxpayer fails to pay anythe amount of3679
tax required to be paid under this chapter, except estimated tax3680
under section 5733.021 of the Revised Code, by the dates3681
prescribed in this chapter for payment, a penalty may be imposed3682
not exceeding twice the interest charged under division (A) of3683
section 5733.26fifteen per cent of the Revised Code for the3684
delinquent payment.3685

       (3) If a taxpayer fails to pay any amount of estimated tax3686
required to be paid under section 5733.021 of the Revised Code by3687
the dates prescribed for payment, a penalty may be imposed not3688
exceeding twice the interest charged under division (A) of section3689
5733.29 of the Revised Code for the delinquent payment.3690

       (4) If a taxpayer files what purports to be a report3691
required by this chapter that does not contain information upon3692
which the substantial correctness of the report may be judged or3693
contains information that on its face indicates that the report is3694
substantially incorrect, and the filing of the report in that3695
manner is due to a position that is frivolous or a desire that is3696
apparent from the report to delay or impede the administration of3697
the tax levied by this chapter, a penalty of up to five hundred3698
dollars may be imposed.3699

       (5)(4) If a taxpayer makes a fraudulent attempt to evade the3700
reporting or payment of the tax required to be shown on any report3701
required under this chapter, a penalty may be imposed not3702
exceeding the greater of one thousand dollars or one hundred per3703
cent of the tax required to be shown on the report.3704

       (6)(5) If any person makes a false or fraudulent claim for a3705
refund under this chapter, a penalty may be imposed not exceeding3706
the greater of one thousand dollars or one hundred per cent of the3707
claim. The penalty imposed under division (A)(6)(5) of this3708
section, any refund issued on the claim, and interest on any3709
refund from the date of the refund, may be assessed under section3710
5733.11 of the Revised Code as tax, penalty, or interest imposed3711
under this chapter without regard to whether the person making the3712
claim is otherwise subject to the provisions of this chapter, and3713
without regard to any time limitation for the assessment imposed3714
by division (A) of section 5733.11 of the Revised Code.3715

       (B) For purposes of this section, the tax required to be3716
shown on the report shall be reduced by the amount of any part of3717
the tax paid on or before the date, including extensions of the3718
date, prescribed for filing the report.3719

       (C) Each penalty imposed under this section shall be in3720
addition to any other penalty provided in this section. All or3721
part of any penalty imposed under this section shall be abated by3722
the commissioner if the taxpayer shows that the failure to comply3723
with the provisions of this chapter is due to reasonable cause and3724
not willful neglect.3725

       Sec. 5735.06.  (A) On or before the last day of each month,3726
each motor fuel dealer shall file with the treasurer of state a3727
report for the preceding calendar month, on forms prescribed by or3728
in a form acceptable to the tax commissioner. The report shall3729
include the following information:3730

       (1) An itemized statement of the number of gallons of all3731
motor fuel received during the preceding calendar month by such3732
motor fuel dealer, which has been produced, refined, prepared,3733
distilled, manufactured, blended, or compounded by such motor fuel3734
dealer in the state;3735

       (2) An itemized statement of the number of gallons of all3736
motor fuel received by such motor fuel dealer in the state from3737
any source during the preceding calendar month, other than motor3738
fuel included in division (A)(1) of this section, together with a3739
statement showing the date of receipt of such motor fuel; the name3740
of the person from whom purchased or received; the date of receipt3741
of each shipment of motor fuel; the point of origin and the point3742
of destination of each shipment; the quantity of each of said3743
purchases or shipments; the name of the carrier; the number of3744
gallons contained in each car if shipped by rail; the point of3745
origin, destination, and shipper if shipped by pipe line; or the3746
name and owner of the boat, barge, or vessel if shipped by water;3747

       (3) An itemized statement of the number of gallons of motor3748
fuel which such motor fuel dealer has during the preceding3749
calendar month:3750

       (a) For motor fuel other than gasoline sold for use other3751
than for operating motor vehicles on the public highways or on3752
waters within the boundaries of this state;3753

       (b) Exported from this state to any other state or foreign3754
country as provided in division (A)(3)(4) of section 5735.05 of3755
the Revised Code;3756

       (c) Sold to the United States government or any of its3757
agencies;3758

       (d) Sold for delivery to motor fuel dealers;3759

       (e) Sold exclusively for use in the operation of aircraft;3760

       (4) Such other information incidental to the enforcement of3761
the motor fuel laws of the state as the commissioner requires.3762

       (B) The report shall show the tax due, computed as follows:3763

       (1) The following deductions shall be made from the total3764
number of gallons of motor fuel received by the motor fuel dealer3765
within the state during the preceding calendar month:3766

       (a) The total number of gallons of motor fuel received by3767
the motor fuel dealer within the state and sold or otherwise3768
disposed of during the preceding calendar month as set forth in3769
section 5735.05 of the Revised Code;3770

       (b) The total number of gallons received during the3771
preceding calendar month and sold or otherwise disposed of to3772
another licensed motor fuel dealer pursuant to section 5735.05 of3773
the Revised Code;3774

       (c) To cover the costs of the motor fuel dealer in compiling3775
the report, and evaporation, shrinkage, or other unaccounted-for3776
losses:3777

       (i) If the report is timely filed and the tax is timely3778
paid, three per cent of the total number of gallons of motor fuel3779
received by the motor fuel dealer within the state during the3780
preceding calendar month less the total number of gallons deducted3781
under divisions (B)(1)(a) and (b) of this section, less one per3782
cent of the total number of gallons of motor fuel that were sold3783
to a retail dealer during the preceding calendar month;3784

       (ii) If the report required by division (A) of this section3785
is not timely filed and the tax is not timely paid, no deduction3786
shall be allowed;3787

       (iii) If the report is incomplete, no deduction shall be3788
allowed for any fuel on which the tax is not timely reported and3789
paid;3790

       (2) The number of gallons remaining after the deductions3791
have been made shall be multiplied separately by each of the3792
following amounts:3793

       (a) The cents per gallon rate;3794

       (b) Two cents.3795

       The sum of the products obtained in divisions (B)(2)(a) and3796
(b) of this section shall be the amount of motor fuel tax for the3797
preceding calendar month.3798

       (C) The report shall be filed together with payment of the3799
tax shown on the report to be due, unless the motor fuel dealer is3800
required by section 5735.062 of the Revised Code to pay the tax by3801
electronic funds transfer, in which case the dealer shall file the3802
report pursuant to this section and pay the tax pursuant to3803
section 5735.062 of the Revised Code. The commissioner may extend3804
the time for filing reports and may remit all or part of penalties3805
which may become due under sections 5735.01 to 5735.99 of the3806
Revised Code. The treasurer of state shall stamp or otherwise3807
mark on all returns the date received by the treasurer and shall3808
also show thereon by stamp or otherwise the amount of payment3809
received for the month for which the report is filed. Thereafter,3810
the treasurer of state shall immediately transmit all reports3811
filed under this section to the commissioner. For purposes of3812
this section and sections 5735.062 and 5735.12 of the Revised3813
Code, a report required to be filed under this section is3814
considered filed when it is received by the treasurer of state,3815
and remittance of the tax due is considered to be made when the3816
remittance is received by the treasurer of state or when credited3817
to an account designated by the treasurer of state for the receipt3818
of tax remittances.3819

       (D) The tax commissioner may require a motor fuel dealer to3820
file a report for a period other than one month. Such a report,3821
together with payment of the tax, shall be filed not later than3822
thirty days after the last day of the prescribed reporting period.3823

       (E) No person required by this section to file a tax report3824
shall file a false or fraudulent tax report or supporting3825
schedule.3826

       Sec. 5735.11.  (A) If the tax or any portion of the tax3827
imposed by this chapter, excluding the tax imposed by section3828
5735.31 of the Revised Code, whether determined by the tax3829
commissioner or the motor fuel dealer, is not paid on or before3830
the date prescribed in section 5735.06 of the Revised Code,3831
interest shall be collected and paid in the same manner as the tax3832
upon the unpaid amount, computed at the rate per annum prescribed3833
by section 5703.47 of the Revised Code, from the date prescribed3834
for payment of the tax to the date of payment or to the date an3835
assessment is issued under section 5735.12 or 5735.121 of the3836
Revised Code, whichever occurs first. Interest may be collected3837
by assessment in the manner provided in section 5735.12 or3838
5735.121 of the Revised Code. All interest shall be paid in the3839
same manner as the tax and shall be considered as revenue arising3840
from the tax imposed by section 5735.05 of the Revised Code.3841

       (B) Interest shall be allowed and paid upon any refund3842
granted in respect to the payment of an illegal or erroneous3843
assessment for any tax imposed under this chapter from the date of3844
the overpayment. The interest shall be computed at the rate per3845
annum prescribed by section 5703.47 of the Revised Code.3846

       Sec. 5735.12.  (A) Any motor fuel dealer required by this3847
chapter to file reports and pay the tax levied by this chapter who3848
fails to file the report within the time prescribed, may be liable3849
for an additional charge not exceeding the greater of ten per cent3850
of the motor fuel dealer's tax liability for that month or fifty3851
dollars. The tax commissioner may remit all or a portion of the3852
additional charge and may adopt rules relating to the remission of3853
all or a portion of the charge.3854

       If any person required by this chapter to file reports and3855
pay the taxes, interest, or additional charge levied by this3856
chapter fails to file the report, files an incomplete or incorrect3857
report, or fails to remit the full amount of the tax, interest, or3858
additional charge due for the period covered by the report, the3859
commissioner may make an assessment against the person based upon3860
any information in the commissioner's possession.3861

       No assessment shall be made against any motor fuel dealer for3862
taxes imposed by this chapter more than four years after the date3863
on which the report on which the assessment was based was due or3864
was filed, whichever is later. This section does not bar an3865
assessment against any motor fuel dealer who fails to file a3866
report required by section 5735.06 of the Revised Code, or who3867
files a fraudulent motor fuel tax report.3868

       A penalty of up to fifteen per cent may be added to the3869
amount of every assessment made under this section. The3870
commissioner may adopt rules providing for the imposition and3871
remission of penalties added to assessments made under this3872
section.3873

       The commissioner shall give the party assessed written notice3874
of the assessment asin the manner provided in section 5703.37 of3875
the Revised Code. With the notice, the commissioner shall provide3876
instructions on how to petition for reassessment and request a3877
hearing on the petition.3878

       (B) Unless the party to whom the notice of assessment is3879
directedassessed files with the tax commissioner within sixty3880
days after service of the notice of assessment, either personally3881
or by certified mail, a written petition for reassessment in3882
writing, signed by the party assessed, or by thethat party's3883
authorized agent of the party assessed having knowledge of the3884
facts, the assessment shall becomebecomes final and the amount of3885
the assessment shall beis due and payable from the party assessed3886
to the treasurer of state. The petition shall indicate the3887
objections of the party assessed, but additional objections may be3888
raised in writing if received by the commissioner prior to the3889
date shown on the final determination by the commissioner.3890

       Unless the petitioner waives a hearing, the commissioner3891
shall assign a time and place for the hearing on the petition and3892
notify the petitioner of the time and place of the hearing by3893
personal service or certified mail, but the commissioner may3894
continue the hearing from time to time if necessary.3895

       The commissioner may make such correction to the3896
commissioner's assessment as the commissioner finds proper. The3897
commissioner shall serve a copy of the commissioner's final3898
determination on the petitioner by personal service or certified3899
mail, and the commissioner's decision in the matter shall be3900
final, subject to appeal as provided in section 5717.02 of the3901
Revised Code. If the petition has been properly filed, the3902
commissioner shall proceed under section 5703.60 of the Revised3903
Code.3904

       (C) After an assessment becomes final, if any portion of the3905
assessment remains unpaid, including accrued interest, a certified3906
copy of the tax commissioner's entry making the assessment final3907
may be filed in the office of the clerk of the court of common3908
pleas in the county in which the party assessed resides or in3909
which the business of the party assessed is conducted. If the3910
party assessed maintains no place of business in this state and is3911
not a resident of this state, the certified copy of the entry may3912
be filed in the office of the clerk of the court of common pleas3913
of Franklin county.3914

       The clerk, immediatelyImmediately upon the filing of the3915
entry, the clerk shall enter a judgment for the state against the3916
party assessed in the amount shown on the entry. The judgment may3917
be filed by the clerk in a loose-leaf book entitled "special3918
judgments for state motor fuel tax," and shall have the same3919
effect as other judgments. Execution shall issue upon the judgment3920
upon the request of the tax commissioner, and all laws applicable3921
to sales on execution shall apply to sales made under the3922
judgment.3923

       The portion of the assessment not paid within sixty days3924
after the day the assessment was issued shall bear interest at the3925
rate per annum prescribed by section 5703.47 of the Revised Code3926
from the day the tax commissioner issues the assessment until it3927
is paid. Interest shall be paid in the same manner as the tax and3928
may be collected by the issuance of an assessment under this3929
section.3930

       (D) All money collected by the tax commissioner under this3931
section shall be paid to the treasurer of state, and when paid3932
shall be considered as revenue arising from the tax imposed by3933
this chapter.3934

       (E) If the tax commissioner determines that the commissioner3935
has erroneously refunded motor fuel tax to any person, the3936
commissioner may make an assessment against the person for3937
recovery of the erroneously refunded tax.3938

       Sec. 5735.122.  The tax commissioner shall refund to dealers3939
or to interstate bus operators makingany person assessed motor3940
fuel equalization paymentstax the amount of taxes paid illegally3941
or erroneously or paid on an illegal or erroneous assessment.3942
Applications for refund shall be filed with the tax commissioner,3943
on the form prescribed by the commissioner, within four years from3944
the date of the illegal or erroneous payment. No person shall3945
file a claim for the tax on fewer than one hundred gallons of3946
motor fuel. On3947

       On the filing of the application, the commissioner shall3948
determine the amount of refund due andto which the applicant is3949
entitled. If the amount is not less than that claimed, the3950
commissioner shall certify the amount to the director of budget3951
and management and treasurer of state for payment from the tax3952
refund fund created by section 5703.052 of the Revised Code,3953
except that no refund shall be authorized or paid on a claim for3954
the tax on fewer than one hundred gallons of motor fuel. TheIf3955
the amount is less than that claimed, the commissioner shall3956
proceed in accordance with section 5703.70 of the Revised Code.3957

        The refund authorized by this section or section 5703.70 of3958
the Revised Code shall be reduced by the cents per gallon amount3959
of any qualified fuel credit received under section 5735.145 of3960
the Revised Code, as determined by the commissioner, for each3961
gallon of qualified fuel included in the total gallonage of motor3962
fuel upon which the refund is computed.3963

       Sec. 5735.13.  A refund shall be made to any person for the3964
motor fuel tax paid on any motor fuel whichthat is lost or3965
destroyed through leakage, fire, explosion, lightning, flood,3966
tornado, windstorm, or any other cause, except theft, evaporation,3967
shrinkage, and unaccounted-for losses. No refund shall be3968
authorized or ordered under this section for any single loss of3969
less than one hundred gallons, nor except upon notice to the tax3970
commissioner within thirty days from the date of such loss or3971
destruction or the discovery thereof, and upon filing with the tax3972
commissioner within sixty days thereafter an application in the3973
form of an affidavit sworn to by the claimant setting forth in3974
full the circumstances of the loss, and upon presentation of3975
supporting evidence satisfactory to the commissioner. The3976

       On the filing of the application, the commissioner shall3977
determine the amount of the refund due andto which the applicant3978
is entitled. If the amount is not less than that claimed, the3979
commissioner shall certify suchthe amount to the director of3980
budget and management and treasurer of state for payment from the3981
tax refund fund provided forcreated by section 5703.052 of the3982
Revised Code. TheIf the amount is less than that claimed, the3983
commissioner shall proceed in accordance with section 5703.70 of3984
the Revised Code.3985

       The refund authorized by this section or section 5703.70 of3986
the Revised Code shall be reduced by the cents per gallon amount3987
of any qualified fuel credit received under section 5735.145 of3988
the Revised Code, as determined by the commissioner, for each3989
gallon of qualified fuel included in the total gallonage of motor3990
fuel upon which the refund is computed.3991

       Sec. 5735.14.  Any person who uses any motor fuel, on which3992
the tax imposed by this chapter has been paid, for the purpose of3993
operating stationary gas engines, tractors not used on public3994
highways, unlicensed motor vehicles used exclusively in intraplant3995
operations, vessels when used in trade, including vessels when3996
used in connection with an activity whichthat constitutes a3997
person's chief business or means of livelihood or any other vessel3998
used entirely for commercial purposes, vessels used for commercial3999
fishing, vessels used by the sea scout department of the boy4000
scouts of America chiefly for training scouts in seamanship,4001
vessels used or owned by any railroad company, railroad car ferry4002
company, the United States, this state, or any political4003
subdivision of this state, or aircraft, or who uses any such fuel4004
upon which such tax has been paid, for cleaning or for dyeing, or4005
any purpose other than the operation of motor vehicles upon4006
highways or upon waters within the boundaries of this state, shall4007
be reimbursed in the amount of the tax so paid on such motor fuel4008
as provided in this section; provided, that any person purchasing4009
motor fuel in this state on which taxes levied under Title LVII of4010
the Revised Code have been paid shall be reimbursed for such taxes4011
paid in this state on such fuel used by that person in another4012
state on which a tax is paid for such usage, except such tax used4013
as a credit against the tax levied by section 5728.06 of the4014
Revised Code. A person shall not be reimbursed for taxes paid on4015
fuel that is used while a motor vehicle is idling or used to4016
provide comfort or safety in the operation of a motor vehicle.4017
Sales of motor fuel, on which the tax imposed by this chapter has4018
been paid, from one person to another do not constitute use of the4019
fuel and are not subject to a refund under this section.4020

       Such person shall file with the tax commissioner an4021
application for refund within one year from the date of purchase,4022
stating the quantity of fuel used for purposes other than the4023
operation of motor vehicles, except that no person shall file a4024
claim for the tax on fewer than one hundred gallons of motor fuel.4025
SuchThe application shall be accompanied by the statement4026
described in section 5735.15 of the Revised Code showing such4027
purchase, together with evidence of payment thereof. After4028

       After consideration of suchthe application and statement,4029
the commissioner shall determine the amount of refund due andto4030
which the applicant is entitled. If the amount is not less than4031
that claimed, the commissioner shall certify suchthe amount to4032
the director of budget and management and treasurer of state for4033
payment from the tax refund fund created by section 5703.052 of4034
the Revised Code. NoIf the amount is less than that claimed, the4035
commissioner shall proceed in accordance with section 5703.70 of4036
the Revised Code.4037

       No refund shall be authorized or paid under this section on a4038
single claim for tax on fewer than one hundred gallons of motor4039
fuel. The commissioner may require that the application be4040
supported by the affidavit of the claimant. The4041

       The refund authorized by this section or section 5703.70 of4042
the Revised Code shall be reduced by the cents per gallon amount4043
of any qualified fuel credit received under section 5735.145 of4044
the Revised Code, as determined by the commissioner, for each4045
gallon of qualified fuel included in the total gallonage of motor4046
fuel upon which the refund is computed.4047

       The right to receive any refund under this section or section4048
5703.70 of the Revised Code is not assignable. The payment of4049
this refund shall not be made to any person other than the person4050
originally entitled thereto who used the motor fuel upon which the4051
claim for refund is based, except that such refunds when allowed4052
and certified as provided in this section may be paid to the4053
executor, the administrator, the receiver, the trustee in4054
bankruptcy, or the assignee in insolvency proceedings of such4055
person.4056

       Sec. 5735.141.  Any retail dealer of motor fuel shall receive4057
a refund for Ohio motor fuel taxes paid on fuel lost by a retail4058
dealer through shrinkage and evaporation. This refund shall be4059
one per cent of the Ohio motor fuel taxes paid on fuel purchased4060
during any semiannual period ending the thirtieth day of June or4061
the thirty-first day of December.4062

       In order to receive a refund, the retail dealer shall file4063
with the tax commissioner, within one hundred twenty days after4064
the thirtieth day of June and the thirty-first day of December of4065
each year, an application for a refund stating the quantity of4066
motor fuel whichthat was purchased for resale by the applicant4067
during the preceding semiannual period ending the thirtieth day of4068
June or the thirty-first day of December and upon which the motor4069
fuel tax has been paid. No person shall file a claim for the tax4070
on fewer than one hundred gallons of motor fuel. The form and4071
contents of the application shall be prescribed by the tax4072
commissioner, and the application shall be signed in accordance4073
with section 5703.25 of the Revised Code. The taxOn the filing of4074
the application, the commissioner shall determine the amount of4075
refund to which the applicant is entitled. If the amount is not4076
less than that claimed, the commissioner shall certify the amount4077
of the refund to the director of budget and management and4078
treasurer of state for payment from the tax refund fund provided4079
forcreated by section 5703.052 of the Revised Code. NoIf the4080
amount is less than that claimed, the commissioner shall proceed4081
in accordance with section 5703.70 of the Revised Code.4082

       No refund shall be authorized or ordered under this section4083
for any single claim for the tax on fewer than one hundred gallons4084
of motor fuel. The4085

       The refund authorized by this section or section 5703.70 of4086
the Revised Code shall be reduced by the cents per gallon amount4087
of any qualified fuel credit received under section 5735.145 of4088
the Revised Code, as determined by the commissioner, for each4089
gallon of qualified fuel included in the total gallonage of motor4090
fuel upon which the refund is computed.4091

       The right to receive any refund under this section or section4092
5703.70 of the Revised Code is not assignable. The payment of the4093
refund shall not be made to any person other than the retail4094
dealer originally entitled thereto, except that the refund may be4095
paid to the executor, administrator, receiver, trustee in4096
bankruptcy, or assignee in insolvency proceedings of such4097
retailer.4098

       A motor fuel dealer shall be deemed to be a retail dealer4099
when acting in a retail capacity.4100

       Sec. 5735.142.  Any person who uses any motor fuel, on which4101
the tax imposed by sections 5735.05, 5735.25, and 5735.29 of the4102
Revised Code has been paid, for the purpose of operating a transit4103
bus shall be reimbursed in the amount of the tax paid on motor4104
fuel used by public transportation systems providing transit or4105
paratransit service on a regular and continuing basis within the4106
state.4107

       Such person shall file with the tax commissioner an4108
application for refund within one year from the date of purchase,4109
stating the quantity of fuel used for operating transit buses used4110
by local transit systems in furnishing scheduled common carrier,4111
public passenger land transportation service along regular routes4112
primarily in one or more municipal corporations, except that no4113
person shall file a claim for the tax on fewer than one hundred4114
gallons of motor fuel. The application shall be accompanied by4115
the statement described in section 5735.15 of the Revised Code4116
showing the purchase, together with evidence of payment thereof.4117
After4118

       After consideration of the application and statement, the4119
commissioner shall determine the amount of refund due andto which4120
the applicant is entitled. If the amount is not less than that4121
claimed, the commissioner shall certify suchthe amount to the4122
director of budget and management and treasurer of state for4123
payment from the tax refund fund provided for increated by4124
section 5703.052 of the Revised Code. TheIf the amount is less4125
than that claimed, the commissioner shall proceed in accordance4126
with section 5703.70 of the Revised Code.4127

       The commissioner may require that the application be4128
supported by the affidavit of the claimant. No refund shall be4129
authorized or ordered for any single claim for the tax on fewer4130
than one hundred gallons of motor fuel. The4131

       The refund authorized by this section or section 5703.70 of4132
the Revised Code shall be reduced by the cents per gallon amount4133
of any qualified fuel credit received under section 5735.145 of4134
the Revised Code, as determined by the commissioner, for each4135
gallon of qualified fuel included in the total gallonage of motor4136
fuel upon which the refund is computed.4137

       The right to receive any refund under this section or section4138
5703.70 of the Revised Code is not assignable. The payment of4139
this refund shall not be made to any person other than the person4140
originally entitled thereto who used the motor fuel upon which the4141
claim for refund is based, except that the refund when allowed and4142
certified, as provided in this section, may be paid to the4143
executor, the administrator, the receiver, the trustee in4144
bankruptcy, or the assignee in insolvency proceedings of the4145
person.4146

       Sec. 5735.18.  Any person other than a motor fuel dealer who4147
purchases motor fuel upon which the tax has been paid to this4148
state and who sells the same outside this state for use outside4149
this state or who uses the same on highways or waters outside this4150
state and pays a tax on such use or sells the same to the United4151
States government or any of its agencies may be reimbursed in the4152
amount of such tax as provided in this chapter. All claims4153
applications for refund of the tax paid on motor fuel sold for4154
export from the state or sold to the United States government or4155
any of its agencies shall be made in such form and shall set forth4156
such information as the tax commissioner prescribes, and the4157
claimantapplicant shall satisfy the commissioner that the motor4158
fuel has been sold as stated and that the tax thereon has been4159
paid. ClaimsApplications for refund of the tax paid on motor fuel4160
sold to the United States government or any of its agencies shall4161
be supported by an affidavit of the claimant and by a tax4162
exemption certificate executed by the vendee in such form as is4163
prescribed by the commissioner. Such claims for refund filed under4164
this section shall be certified and paidIf the United States4165
government or any of its agencies purchases motor fuel upon which4166
the tax has been paid to this state, the United States government4167
or agency may be reimbursed in the amount of such tax as provided4168
in this chapter, provided that the seller of the motor fuel has4169
not applied for a refund on behalf of the United States government4170
or agency. Applications filed by the United States government or4171
any of its agencies for refund of the tax paid on motor fuel4172
purchases shall be supported by an invoice or similar fuel4173
purchase document issued by the seller of the fuel.4174

       On the filing of an application under this section, the4175
commissioner shall determine the amount of refund to which the4176
applicant is entitled. If the amount is not less than that4177
claimed, the commissioner shall certify and pay that amount in the4178
same manner as provided in section 5735.14 of the Revised Code.4179
TheIf the amount is less than that claimed, the commissioner4180
shall proceed in accordance with section 5703.70 of the Revised4181
Code.4182

       The person shall file with the tax commissioner an4183
application for refund within one year from the date of sale or4184
purchase. The refund authorized by this section or section4185
5703.70 of the Revised Code shall be reduced by the cents per4186
gallon amount of any qualified fuel credit received under section4187
5735.145 of the Revised Code, as determined by the commissioner,4188
for each gallon of qualified fuel included in the total gallonage4189
of motor fuel upon which the refund is computed.4190

       Sec. 5739.01.  As used in this chapter:4191

       (A) "Person" includes individuals, receivers, assignees,4192
trustees in bankruptcy, estates, firms, partnerships,4193
associations, joint-stock companies, joint ventures, clubs,4194
societies, corporations, the state and its political subdivisions,4195
and combinations of individuals of any form.4196

       (B) "Sale" and "selling" include all of the following4197
transactions for a consideration in any manner, whether absolutely4198
or conditionally, whether for a price or rental, in money or by4199
exchange, and by any means whatsoever:4200

       (1) All transactions by which title or possession, or both,4201
of tangible personal property, is or is to be transferred, or a4202
license to use or consume tangible personal property is or is to4203
be granted;4204

       (2) All transactions by which lodging by a hotel is or is to4205
be furnished to transient guests;4206

       (3) All transactions by which:4207

       (a) An item of tangible personal property is or is to be4208
repaired, except property, the purchase of which would not be4209
exempt fromsubject to the tax imposed by section 5739.02 of the4210
Revised Code;4211

       (b) An item of tangible personal property is or is to be4212
installed, except property, the purchase of which would not be4213
exempt fromsubject to the tax imposed by section 5739.02 of the4214
Revised Code or property that is or is to be incorporated into and4215
will become a part of a production, transmission, transportation,4216
or distribution system for the delivery of a public utility4217
service;4218

       (c) The service of washing, cleaning, waxing, polishing, or4219
painting a motor vehicle is or is to be furnished;4220

       (d) Industrial laundry cleaning services are or are to be4221
provided;4222

       (e) Automatic data processing, computer services, or4223
electronic information services are or are to be provided for use4224
in business when the true object of the transaction is the receipt4225
by the consumer of automatic data processing, computer services,4226
or electronic information services rather than the receipt of4227
personal or professional services to which automatic data4228
processing, computer services, or electronic information services4229
are incidental or supplemental. Notwithstanding any other4230
provision of this chapter, such transactions that occur between4231
members of an affiliated group are not sales. An affiliated group4232
means two or more persons related in such a way that one person4233
owns or controls the business operation of another member of the4234
group. In the case of corporations with stock, one corporation4235
owns or controls another if it owns more than fifty per cent of4236
the other corporation's common stock with voting rights.4237

       (f) Telecommunications service, other than mobile4238
telecommunications service after July 31, 2002, is or is to be4239
provided that originates or terminates in this state and is4240
charged in the records of the telecommunications service vendor to4241
the consumer's telephone number or account in this state, or that4242
both originates and terminates in this state; but does not include4243
transactions by which telecommunications service is paid for by4244
using a prepaid authorization number or prepaid telephone calling4245
card, or by which local telecommunications service is obtained4246
from a coin-operated telephone and paid for by using coin;4247

       (g) Landscaping and lawn care service is or is to be4248
provided;4249

       (h) Private investigation and security service is or is to4250
be provided;4251

       (i) Information services or tangible personal property is4252
provided or ordered by means of a nine hundred telephone call;4253

       (j) Building maintenance and janitorial service is or is to4254
be provided;4255

       (k) Employment service is or is to be provided;4256

       (l) Employment placement service is or is to be provided;4257

       (m) Exterminating service is or is to be provided;4258

       (n) Physical fitness facility service is or is to be4259
provided;4260

       (o) Recreation and sports club service is or is to be4261
provided.4262

       (p) Mobile telecommunications service after July 31, 2002, is4263
or is to be provided in this state pursuant to the "Mobile4264
Telecommunications Sourcing Act," Pub. L. No. 106-252 (2000), 1144265
Stat. 626 to 632 (2000) 4 U.S.C.A. 116 to 126, as amended.4266

       (4) All transactions by which printed, imprinted,4267
overprinted, lithographic, multilithic, blueprinted, photostatic,4268
or other productions or reproductions of written or graphic matter4269
are or are to be furnished or transferred;4270

       (5) The production or fabrication of tangible personal4271
property for a consideration for consumers who furnish either4272
directly or indirectly the materials used in the production of4273
fabrication work; and include the furnishing, preparing, or4274
serving for a consideration of any tangible personal property4275
consumed on the premises of the person furnishing, preparing, or4276
serving such tangible personal property. Except as provided in4277
section 5739.03 of the Revised Code, a construction contract4278
pursuant to which tangible personal property is or is to be4279
incorporated into a structure or improvement on and becoming a4280
part of real property is not a sale of such tangible personal4281
property. The construction contractor is the consumer of such4282
tangible personal property, provided that the sale and4283
installation of carpeting, the sale and installation of4284
agricultural land tile, the sale and erection or installation of4285
portable grain bins, or the provision of landscaping and lawn care4286
service and the transfer of property as part of such service is4287
never a construction contract. The transfer of copyrighted motion4288
picture films for exhibition purposes is not a sale, except such4289
films as are used solely for advertising purposes. Other than as4290
provided in this section, "sale" and "selling" do not include4291
professional, insurance, or personal service transactions that4292
involve the transfer of tangible personal property as an4293
inconsequential element, for which no separate charges are made.4294

       As used in division (B)(5) of this section:4295

       (a) "Agricultural land tile" means fired clay or concrete4296
tile, or flexible or rigid perforated plastic pipe or tubing,4297
incorporated or to be incorporated into a subsurface drainage4298
system appurtenant to land used or to be used directly in4299
production by farming, agriculture, horticulture, or floriculture.4300
The term does not include such materials when they are or are to4301
be incorporated into a drainage system appurtenant to a building4302
or structure even if the building or structure is used or to be4303
used in such production.4304

       (b) "Portable grain bin" means a structure that is used or4305
to be used by a person engaged in farming or agriculture to4306
shelter the person's grain and that is designed to be disassembled4307
without significant damage to its component parts.4308

       (6) All transactions in which all of the shares of stock of4309
a closely held corporation are transferred, if the corporation is4310
not engaging in business and its entire assets consist of boats,4311
planes, motor vehicles, or other tangible personal property4312
operated primarily for the use and enjoyment of the shareholders;4313

       (7) All transactions in which a warranty, maintenance or4314
service contract, or similar agreement by which the vendor of the4315
warranty, contract, or agreement agrees to repair or maintain the4316
tangible personal property of the consumer is or is to be4317
provided;4318

       (8) All transactions by which a prepaid authorization number4319
or a prepaid telephone calling card is or is to be transferred.4320

       (C) "Vendor" means the person providing the service or by4321
whom the transfer effected or license given by a sale is or is to4322
be made or given and, for sales described in division (B)(3)(i) of4323
this section, the telecommunications service vendor that provides4324
the nine hundred telephone service; if two or more persons are4325
engaged in business at the same place of business under a single4326
trade name in which all collections on account of sales by each4327
are made, such persons shall constitute a single vendor.4328

       Physicians, dentists, hospitals, and veterinarians who are4329
engaged in selling tangible personal property as received from4330
others, such as eyeglasses, mouthwashes, dentifrices, or similar4331
articles, are vendors. Veterinarians who are engaged in4332
transferring to others for a consideration drugs, the dispensing4333
of which does not require an order of a licensed veterinarian or4334
physician under federal law, are vendors.4335

       (D)(1) "Consumer" means the person for whom the service is4336
provided, to whom the transfer effected or license given by a sale4337
is or is to be made or given, to whom the service described in4338
division (B)(3)(f) or (i) of this section is charged, or to whom4339
the admission is granted.4340

       (2) Physicians, dentists, hospitals, and blood banks4341
operated by nonprofit institutions and persons licensed to4342
practice veterinary medicine, surgery, and dentistry are consumers4343
of all tangible personal property and services purchased by them4344
in connection with the practice of medicine, dentistry, the4345
rendition of hospital or blood bank service, or the practice of4346
veterinary medicine, surgery, and dentistry. In addition to being4347
consumers of drugs administered by them or by their assistants4348
according to their direction, veterinarians also are consumers of4349
drugs that under federal law may be dispensed only by or upon the4350
order of a licensed veterinarian or physician, when transferred by4351
them to others for a consideration to provide treatment to animals4352
as directed by the veterinarian.4353

       (3) A person who performs a facility management, or similar4354
service contract for a contractee is a consumer of all tangible4355
personal property and services purchased for use in connection4356
with the performance of such contract, regardless of whether title4357
to any such property vests in the contractee. The purchase of4358
such property and services is not subject to the exception for4359
resale under division (E)(1) of this section.4360

       (4)(a) In the case of a person who purchases printed matter4361
for the purpose of distributing it or having it distributed to the4362
public or to a designated segment of the public, free of charge,4363
that person is the consumer of that printed matter, and the4364
purchase of that printed matter for that purpose is a sale.4365

       (b) In the case of a person who produces, rather than4366
purchases, printed matter for the purpose of distributing it or4367
having it distributed to the public or to a designated segment of4368
the public, free of charge, that person is the consumer of all4369
tangible personal property and services purchased for use or4370
consumption in the production of that printed matter. That person4371
is not entitled to claim exception under division (E)(8) of this4372
section for any material incorporated into the printed matter or4373
any equipment, supplies, or services primarily used to produce the4374
printed matter.4375

       (c) The distribution of printed matter to the public or to a4376
designated segment of the public, free of charge, is not a sale to4377
the members of the public to whom the printed matter is4378
distributed or to any persons who purchase space in the printed4379
matter for advertising or other purposes.4380

       (5) A person who makes sales of any of the services listed4381
in division (B)(3) of this section is the consumer of any tangible4382
personal property used in performing the service. The purchase of4383
that property is not subject to the resale exception under4384
division (E)(1) of this section.4385

       (E) "Retail sale" and "sales at retail" include all sales4386
except those in which the purpose of the consumer is:4387

       (1) To resell the thing transferred or benefit of the4388
service provided, by a person engaging in business, in the form in4389
which the same is, or is to be, received by the person;4390

       (2) To incorporate the thing transferred as a material or a4391
part, into tangible personal property to be produced for sale by4392
manufacturing, assembling, processing, or refining, or to use or4393
consume the thing transferred directly in producing a product for4394
sale by mining, including without limitation the extraction from4395
the earth of all substances that are classed geologically as4396
minerals, production of crude oil and natural gas, farming,4397
agriculture, horticulture, or floriculture, and persons engaged in4398
rendering farming, agricultural, horticultural, or floricultural4399
services, and services in the exploration for, and production of,4400
crude oil and natural gas, for others are deemed engaged directly4401
in farming, agriculture, horticulture, and floriculture, or4402
exploration for, and production of, crude oil and natural gas;4403
directly in the rendition of a public utility service, except that4404
the sales tax levied by section 5739.02 of the Revised Code shall4405
be collected upon all meals, drinks, and food for human4406
consumption sold upon Pullman and railroad coaches. This4407
paragraph does not exempt or except from "retail sale" or "sales4408
at retail" the sale of tangible personal property that is to be4409
incorporated into a structure or improvement to real property.4410

       (3) To hold the thing transferred as security for the4411
performance of an obligation of the vendor;4412

       (4) To use or consume the thing transferred in the process4413
of reclamation as required by Chapters 1513. and 1514. of the4414
Revised Code;4415

       (5) To resell, hold, use, or consume the thing transferred4416
as evidence of a contract of insurance;4417

       (6) To use or consume the thing directly in commercial4418
fishing;4419

       (7) To incorporate the thing transferred as a material or a4420
part into, or to use or consume the thing transferred directly in4421
the production of, magazines distributed as controlled circulation4422
publications;4423

       (8) To use or consume the thing transferred in the4424
production and preparation in suitable condition for market and4425
sale of printed, imprinted, overprinted, lithographic,4426
multilithic, blueprinted, photostatic, or other productions or4427
reproductions of written or graphic matter;4428

       (9) To use the thing transferred, as described in section4429
5739.011 of the Revised Code, primarily in a manufacturing4430
operation to produce tangible personal property for sale;4431

       (10) To use the benefit of a warranty, maintenance or4432
service contract, or similar agreement, as defined in division4433
(B)(7) of this section, to repair or maintain tangible personal4434
property, if all of the property that is the subject of the4435
warranty, contract, or agreement would be exempt on its purchase4436
from the tax imposed by section 5739.02 of the Revised Code;4437

       (11) To use the thing transferred as qualified research and4438
development equipment;4439

       (12) To use or consume the thing transferred primarily in4440
storing, transporting, mailing, or otherwise handling purchased4441
sales inventory in a warehouse, distribution center, or similar4442
facility when the inventory is primarily distributed outside this4443
state to retail stores of the person who owns or controls the4444
warehouse, distribution center, or similar facility, to retail4445
stores of an affiliated group of which that person is a member, or4446
by means of direct marketing. Division (E)(12) of this section4447
does not apply to motor vehicles registered for operation on the4448
public highways. As used in division (E)(12) of this section,4449
"affiliated group" has the same meaning as in division (B)(3)(e)4450
of this section and "direct marketing" has the same meaning as in4451
division (B)(37)(36) of section 5739.02 of the Revised Code.4452

       (13) To use or consume the thing transferred to fulfill a4453
contractual obligation incurred by a warrantor pursuant to a4454
warranty provided as a part of the price of the tangible personal4455
property sold or by a vendor of a warranty, maintenance or service4456
contract, or similar agreement the provision of which is defined4457
as a sale under division (B)(7) of this section;4458

       (14) To use or consume the thing transferred in the4459
production of a newspaper for distribution to the public;4460

       (15) To use tangible personal property to perform a service4461
listed in division (B)(3) of this section, if the property is or4462
is to be permanently transferred to the consumer of the service as4463
an integral part of the performance of the service.4464

       As used in division (E) of this section, "thing" includes all4465
transactions included in divisions (B)(3)(a), (b), and (e) of this4466
section.4467

       Sales conducted through a coin-operated device that activates4468
vacuum equipment or equipment that dispenses water, whether or not4469
in combination with soap or other cleaning agents or wax, to the4470
consumer for the consumer's use on the premises in washing,4471
cleaning, or waxing a motor vehicle, provided no other personal4472
property or personal service is provided as part of the4473
transaction, are not retail sales or sales at retail.4474

       (F) "Business" includes any activity engaged in by any4475
person with the object of gain, benefit, or advantage, either4476
direct or indirect. "Business" does not include the activity of a4477
person in managing and investing the person's own funds.4478

       (G) "Engaging in business" means commencing, conducting, or4479
continuing in business, and liquidating a business when the4480
liquidator thereof holds itself out to the public as conducting4481
such business. Making a casual sale is not engaging in business.4482

       (H)(1) "Price," except as provided in divisions (H)(2) and4483
(3) of this section, means the aggregate value in money of4484
anything paid or delivered, or promised to be paid or delivered,4485
in the complete performance of a retail sale, without any4486
deduction on account of the cost of the property sold, cost of4487
materials used, labor or service cost, interest, discount paid or4488
allowed after the sale is consummated, or any other expense. If4489
the retail sale consists of the rental or lease of tangible4490
personal property, "price" means the aggregate value in money of4491
anything paid or delivered, or promised to be paid or delivered,4492
in the complete performance of the rental or lease, without any4493
deduction for tax, interest, labor or service charge, damage4494
liability waiver, termination or damage charge, discount paid or4495
allowed after the lease is consummated, or any other expense. The4496
sales tax shall be calculated and collected by the lessor on each4497
payment made by the lessee. Price does not include the4498
consideration received as a deposit refundable to the consumer4499
upon return of a beverage container, the consideration received as4500
a deposit on a carton or case that is used for such returnable4501
containers, or the consideration received as a refundable security4502
deposit for the use of tangible personal property to the extent4503
that it actually is refunded, if the consideration for such4504
refundable deposit is separately stated from the consideration4505
received or to be received for the tangible personal property4506
transferred in the retail sale. Such separation must appear in4507
the sales agreement or on the initial invoice or initial billing4508
rendered by the vendor to the consumer. Price is the amount4509
received inclusive of the tax, provided the vendor establishes to4510
the satisfaction of the tax commissioner that the tax was added to4511
the price. When the price includes both a charge for tangible4512
personal property and a charge for providing a service and the4513
sale of the property and the charge for the service are separately4514
taxable, or have a separately determinable tax status, the price4515
shall be separately stated for each such charge so the tax can be4516
correctly computed and charged.4517

       The tax collected by the vendor from the consumer under this4518
chapter is not part of the price, but is a tax collection for the4519
benefit of the state and of counties levying an additional sales4520
tax pursuant to section 5739.021 or 5739.026 of the Revised Code4521
and of transit authorities levying an additional sales tax4522
pursuant to section 5739.023 of the Revised Code. Except for the4523
discount authorized in section 5739.12 of the Revised Code and the4524
effects of any rounding pursuant to section 5703.055 of the4525
Revised Code, no person other than the state or such a county or4526
transit authority shall derive any benefit from the collection or4527
payment of such tax.4528

       (2) In the case of a sale of any new motor vehicle by a new4529
motor vehicle dealer, as defined in section 4517.01 of the Revised4530
Code, in which another motor vehicle is accepted by the dealer as4531
part of the consideration received, "price" has the same meaning4532
as in division (H)(1) of this section, reduced by the credit4533
afforded the consumer by the dealer for the motor vehicle received4534
in trade.4535

       (3) In the case of a sale of any watercraft or outboard4536
motor by a watercraft dealer licensed in accordance with section4537
1547.543 of the Revised Code, in which another watercraft,4538
watercraft and trailer, or outboard motor is accepted by the4539
dealer as part of the consideration received, "price" has the same4540
meaning as in division (H)(1) of this section, reduced by the4541
credit afforded the consumer by the dealer for the watercraft,4542
watercraft and trailer, or outboard motor received in trade. As4543
used in division (H)(3) of this section, "watercraft" includes an4544
outdrive unit attached to the watercraft.4545

       (I) "Receipts" means the total amount of the prices of the4546
sales of vendors, provided that cash discounts allowed and taken4547
on sales at the time they are consummated are not included, minus4548
any amount deducted as a bad debt pursuant to section 5739.121 of4549
the Revised Code. "Receipts" does not include the sale price of4550
property returned or services rejected by consumers when the full4551
sale price and tax are refunded either in cash or by credit.4552

       (J) "Place of business" means any location at which a person4553
engages in business.4554

       (K) "Premises" includes any real property or portion thereof4555
upon which any person engages in selling tangible personal4556
property at retail or making retail sales and also includes any4557
real property or portion thereof designated for, or devoted to,4558
use in conjunction with the business engaged in by such person.4559

       (L) "Casual sale" means a sale of an item of tangible4560
personal property that was obtained by the person making the4561
sale, through purchase or otherwise, for the person's own use in4562
this state and was previously subject to any state's taxing4563
jurisdiction on its sale or use, and includes such items acquired4564
for the seller's use that are sold by an auctioneer employed4565
directly by the person for such purpose, provided the location of4566
such sales is not the auctioneer's permanent place of business. As4567
used in this division, "permanent place of business" includes any4568
location where such auctioneer has conducted more than two4569
auctions during the year.4570

       (M) "Hotel" means every establishment kept, used,4571
maintained, advertised, or held out to the public to be a place4572
where sleeping accommodations are offered to guests, in which five4573
or more rooms are used for the accommodation of such guests,4574
whether the rooms are in one or several structures.4575

       (N) "Transient guests" means persons occupying a room or4576
rooms for sleeping accommodations for less than thirty consecutive4577
days.4578

       (O) "Making retail sales" means the effecting of4579
transactions wherein one party is obligated to pay the price and4580
the other party is obligated to provide a service or to transfer4581
title to or possession of the item sold. "Making retail sales"4582
does not include the preliminary acts of promoting or soliciting4583
the retail sales, other than the distribution of printed matter4584
which displays or describes and prices the item offered for sale,4585
nor does it include delivery of a predetermined quantity of4586
tangible personal property or transportation of property or4587
personnel to or from a place where a service is performed,4588
regardless of whether the vendor is a delivery vendor.4589

       (P) "Used directly in the rendition of a public utility4590
service" means that property which is to be incorporated into and4591
will become a part of the consumer's production, transmission,4592
transportation, or distribution system and that retains its4593
classification as tangible personal property after such4594
incorporation; fuel or power used in the production, transmission,4595
transportation, or distribution system; and tangible personal4596
property used in the repair and maintenance of the production,4597
transmission, transportation, or distribution system, including4598
only such motor vehicles as are specially designed and equipped4599
for such use. Tangible personal property and services used4600
primarily in providing highway transportation for hire are not4601
used in providing a public utility service as defined in this4602
division.4603

       (Q) "Refining" means removing or separating a desirable4604
product from raw or contaminated materials by distillation or4605
physical, mechanical, or chemical processes.4606

       (R) "Assembly" and "assembling" mean attaching or fitting4607
together parts to form a product, but do not include packaging a4608
product.4609

       (S) "Manufacturing operation" means a process in which4610
materials are changed, converted, or transformed into a different4611
state or form from which they previously existed and includes4612
refining materials, assembling parts, and preparing raw materials4613
and parts by mixing, measuring, blending, or otherwise committing4614
such materials or parts to the manufacturing process.4615
"Manufacturing operation" does not include packaging.4616

       (T) "Fiscal officer" means, with respect to a regional4617
transit authority, the secretary-treasurer thereof, and with4618
respect to a county that is a transit authority, the fiscal4619
officer of the county transit board if one is appointed pursuant4620
to section 306.03 of the Revised Code or the county auditor if the4621
board of county commissioners operates the county transit system.4622

       (U) "Transit authority" means a regional transit authority4623
created pursuant to section 306.31 of the Revised Code or a county4624
in which a county transit system is created pursuant to section4625
306.01 of the Revised Code. For the purposes of this chapter, a4626
transit authority must extend to at least the entire area of a4627
single county. A transit authority that includes territory in4628
more than one county must include all the area of the most4629
populous county that is a part of such transit authority. County4630
population shall be measured by the most recent census taken by4631
the United States census bureau.4632

       (V) "Legislative authority" means, with respect to a4633
regional transit authority, the board of trustees thereof, and4634
with respect to a county that is a transit authority, the board4635
of county commissioners.4636

       (W) "Territory of the transit authority" means all of the4637
area included within the territorial boundaries of a transit4638
authority as they from time to time exist. Such territorial4639
boundaries must at all times include all the area of a single4640
county or all the area of the most populous county that is a part4641
of such transit authority. County population shall be measured by4642
the most recent census taken by the United States census bureau.4643

       (X) "Providing a service" means providing or furnishing4644
anything described in division (B)(3) of this section for4645
consideration.4646

       (Y)(1)(a) "Automatic data processing" means processing of4647
others' data, including keypunching or similar data entry services4648
together with verification thereof, or providing access to4649
computer equipment for the purpose of processing data.4650

       (b) "Computer services" means providing services consisting4651
of specifying computer hardware configurations and evaluating4652
technical processing characteristics, computer programming, and4653
training of computer programmers and operators, provided in4654
conjunction with and to support the sale, lease, or operation of4655
taxable computer equipment or systems.4656

       (c) "Electronic information services" means providing access4657
to computer equipment by means of telecommunications equipment for4658
the purpose of either of the following:4659

       (i) Examining or acquiring data stored in or accessible to4660
the computer equipment;4661

       (ii) Placing data into the computer equipment to be4662
retrieved by designated recipients with access to the computer4663
equipment.4664

       (d) "Automatic data processing, computer services, or4665
electronic information services" shall not include personal or4666
professional services.4667

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this4668
section, "personal and professional services" means all services4669
other than automatic data processing, computer services, or4670
electronic information services, including but not limited to:4671

       (a) Accounting and legal services such as advice on tax4672
matters, asset management, budgetary matters, quality control,4673
information security, and auditing and any other situation where4674
the service provider receives data or information and studies,4675
alters, analyzes, interprets, or adjusts such material;4676

       (b) Analyzing business policies and procedures;4677

       (c) Identifying management information needs;4678

       (d) Feasibility studies, including economic and technical4679
analysis of existing or potential computer hardware or software4680
needs and alternatives;4681

       (e) Designing policies, procedures, and custom software for4682
collecting business information, and determining how data should4683
be summarized, sequenced, formatted, processed, controlled, and4684
reported so that it will be meaningful to management;4685

       (f) Developing policies and procedures that document how4686
business events and transactions are to be authorized, executed,4687
and controlled;4688

       (g) Testing of business procedures;4689

       (h) Training personnel in business procedure applications;4690

       (i) Providing credit information to users of such4691
information by a consumer reporting agency, as defined in the4692
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C.4693
1681a(f), or as hereafter amended, including but not limited to4694
gathering, organizing, analyzing, recording, and furnishing such4695
information by any oral, written, graphic, or electronic medium;4696

       (j) Providing debt collection services by any oral, written,4697
graphic, or electronic means.4698

       The services listed in divisions (Y)(2)(a) to (j) of this4699
section are not automatic data processing or computer services.4700

       (Z) "Highway transportation for hire" means the4701
transportation of personal property belonging to others for4702
consideration by any of the following:4703

       (1) The holder of a permit or certificate issued by this4704
state or the United States authorizing the holder to engage in4705
transportation of personal property belonging to others for4706
consideration over or on highways, roadways, streets, or any4707
similar public thoroughfare;4708

       (2) A person who engages in the transportation of personal4709
property belonging to others for consideration over or on4710
highways, roadways, streets, or any similar public thoroughfare4711
but who could not have engaged in such transportation on December4712
11, 1985, unless the person was the holder of a permit or4713
certificate of the types described in division (Z)(1) of this4714
section;4715

       (3) A person who leases a motor vehicle to and operates it4716
for a person described by division (Z)(1) or (2) of this section.4717

       (AA) "Telecommunications service" means the transmission of4718
any interactive, two-way electromagnetic communications, including4719
voice, image, data, and information, through the use of any medium4720
such as wires, cables, microwaves, cellular radio, radio waves,4721
light waves, or any combination of those or similar media.4722
"Telecommunications service" includes message toll service even4723
though the vendor provides the message toll service by means of4724
wide area transmission type service or private communications4725
service purchased from another telecommunications service4726
provider, but does not include any of the following:4727

       (1) Sales of incoming or outgoing wide area transmission4728
service or wide area transmission type service, including eight4729
hundred or eight-hundred-type service, to the person contracting4730
for the receipt of that service;4731

       (2) Sales of private communications service to the person4732
contracting for the receipt of that service that entitles the4733
purchaser to exclusive or priority use of a communications channel4734
or group of channels between exchanges;4735

       (3) Sales of telecommunications service by companies subject4736
to the excise tax imposed by Chapter 5727. of the Revised Code;4737

       (4) Sales of telecommunications service to a provider of4738
telecommunications service, including access services, for use in4739
providing telecommunications service;4740

       (5) Value-added nonvoice services in which computer4741
processing applications are used to act on the form, content,4742
code, or protocol of the information to be transmitted;4743

       (6) Transmission of interactive video programming by a cable4744
television system as defined in section 505.90 of the Revised4745
Code;4746

       (7) After July 31, 2002, mobile telecommunications service.4747

       (BB) "Industrial laundry cleaning services" means removing4748
soil or dirt from or supplying towels, linens, or articles of4749
clothing that belong to others and are used in a trade or4750
business.4751

       (CC) "Magazines distributed as controlled circulation4752
publications" means magazines containing at least twenty-four4753
pages, at least twenty-five per cent editorial content, issued at4754
regular intervals four or more times a year, and circulated4755
without charge to the recipient, provided that such magazines are4756
not owned or controlled by individuals or business concerns which4757
conduct such publications as an auxiliary to, and essentially for4758
the advancement of the main business or calling of, those who own4759
or control them.4760

       (DD) "Landscaping and lawn care service" means the services4761
of planting, seeding, sodding, removing, cutting, trimming,4762
pruning, mulching, aerating, applying chemicals, watering,4763
fertilizing, and providing similar services to establish, promote,4764
or control the growth of trees, shrubs, flowers, grass, ground4765
cover, and other flora, or otherwise maintaining a lawn or4766
landscape grown or maintained by the owner for ornamentation or4767
other nonagricultural purpose. However, "landscaping and lawn4768
care service" does not include the providing of such services by a4769
person who has less than five thousand dollars in sales of such4770
services during the calendar year.4771

       (EE) "Private investigation and security service" means the4772
performance of any activity for which the provider of such service4773
is required to be licensed pursuant to Chapter 4749. of the4774
Revised Code, or would be required to be so licensed in performing4775
such services in this state, and also includes the services of4776
conducting polygraph examinations and of monitoring or overseeing4777
the activities on or in, or the condition of, the consumer's home,4778
business, or other facility by means of electronic or similar4779
monitoring devices. "Private investigation and security service"4780
does not include special duty services provided by off-duty police4781
officers, deputy sheriffs, and other peace officers regularly4782
employed by the state or a political subdivision.4783

       (FF) "Information services" means providing conversation,4784
giving consultation or advice, playing or making a voice or other4785
recording, making or keeping a record of the number of callers,4786
and any other service provided to a consumer by means of a nine4787
hundred telephone call, except when the nine hundred telephone4788
call is the means by which the consumer makes a contribution to a4789
recognized charity.4790

       (GG) "Research and development" means designing, creating,4791
or formulating new or enhanced products, equipment, or4792
manufacturing processes, and also means conducting scientific or4793
technological inquiry and experimentation in the physical sciences4794
with the goal of increasing scientific knowledge which may reveal4795
the bases for new or enhanced products, equipment, or4796
manufacturing processes.4797

       (HH) "Qualified research and development equipment" means4798
capitalized tangible personal property, and leased personal4799
property that would be capitalized if purchased, used by a person4800
primarily to perform research and development. Tangible personal4801
property primarily used in testing, as defined in division (A)(4)4802
of section 5739.011 of the Revised Code, or used for recording or4803
storing test results, is not qualified research and development4804
equipment unless such property is primarily used by the consumer4805
in testing the product, equipment, or manufacturing process being4806
created, designed, or formulated by the consumer in the research4807
and development activity or in recording or storing such test4808
results.4809

       (II) "Building maintenance and janitorial service" means4810
cleaning the interior or exterior of a building and any tangible4811
personal property located therein or thereon, including any4812
services incidental to such cleaning for which no separate charge4813
is made. However, "building maintenance and janitorial service"4814
does not include the providing of such service by a person who has4815
less than five thousand dollars in sales of such service during4816
the calendar year.4817

       (JJ) "Employment service" means providing or supplying4818
personnel, on a temporary or long-term basis, to perform work or4819
labor under the supervision or control of another, when the4820
personnel so supplied receive their wages, salary, or other4821
compensation from the provider of the service. "Employment4822
service" does not include:4823

       (1) Acting as a contractor or subcontractor, where the4824
personnel performing the work are not under the direct control of4825
the purchaser.4826

       (2) Medical and health care services.4827

       (3) Supplying personnel to a purchaser pursuant to a4828
contract of at least one year between the service provider and the4829
purchaser that specifies that each employee covered under the4830
contract is assigned to the purchaser on a permanent basis.4831

       (4) Transactions between members of an affiliated group, as4832
defined in division (B)(3)(e) of this section.4833

       (KK) "Employment placement service" means locating or4834
finding employment for a person or finding or locating an employee4835
to fill an available position.4836

       (LL) "Exterminating service" means eradicating or attempting4837
to eradicate vermin infestations from a building or structure, or4838
the area surrounding a building or structure, and includes4839
activities to inspect, detect, or prevent vermin infestation of a4840
building or structure.4841

       (MM) "Physical fitness facility service" means all4842
transactions by which a membership is granted, maintained, or4843
renewed, including initiation fees, membership dues, renewal fees,4844
monthly minimum fees, and other similar fees and dues, by a4845
physical fitness facility such as an athletic club, health spa, or4846
gymnasium, which entitles the member to use the facility for4847
physical exercise.4848

       (NN) "Recreation and sports club service" means all4849
transactions by which a membership is granted, maintained, or4850
renewed, including initiation fees, membership dues, renewal fees,4851
monthly minimum fees, and other similar fees and dues, by a4852
recreation and sports club, which entitles the member to use the4853
facilities of the organization. "Recreation and sports club"4854
means an organization that has ownership of, or controls or leases4855
on a continuing, long-term basis, the facilities used by its4856
members and includes an aviation club, gun or shooting club, yacht4857
club, card club, swimming club, tennis club, golf club, country4858
club, riding club, amateur sports club, or similar organization.4859

       (OO) "Livestock" means farm animals commonly raised for food4860
or food production, and includes but is not limited to cattle,4861
sheep, goats, swine, and poultry. "Livestock" does not include4862
invertebrates, fish, amphibians, reptiles, horses, domestic pets,4863
animals for use in laboratories or for exhibition, or other4864
animals not commonly raised for food or food production.4865

       (PP) "Livestock structure" means a building or structure4866
used exclusively for the housing, raising, feeding, or sheltering4867
of livestock, and includes feed storage or handling structures and4868
structures for livestock waste handling.4869

       (QQ) "Horticulture" means the growing, cultivation, and4870
production of flowers, fruits, herbs, vegetables, sod, mushrooms,4871
and nursery stock. As used in this division, "nursery stock" has4872
the same meaning as in section 927.51 of the Revised Code.4873

       (RR) "Horticulture structure" means a building or structure4874
used exclusively for the commercial growing, raising, or4875
overwintering of horticultural products, and includes the area4876
used for stocking, storing, and packing horticultural products4877
when done in conjunction with the production of those products.4878

       (SS) "Newspaper" means an unbound publication bearing a4879
title or name that is regularly published, at least as frequently4880
as biweekly, and distributed from a fixed place of business to the4881
public in a specific geographic area, and that contains a4882
substantial amount of news matter of international, national, or4883
local events of interest to the general public.4884

       (TT) "Professional racing team" means a person that employs4885
at least twenty full-time employees for the purpose of conducting4886
a motor vehicle racing business for profit. The person must4887
conduct the business with the purpose of racing one or more motor4888
racing vehicles in at least ten competitive professional racing4889
events each year that comprise all or part of a motor racing4890
series sanctioned by one or more motor racing sanctioning4891
organizations. A "motor racing vehicle" means a vehicle for which4892
the chassis, engine, and parts are designed exclusively for motor4893
racing, and does not include a stock or production model vehicle4894
that may be modified for use in racing. For the purposes of this4895
division:4896

       (1) A "competitive professional racing event" is a motor4897
vehicle racing event sanctioned by one or more motor racing4898
sanctioning organizations, at which aggregate cash prizes in4899
excess of eight hundred thousand dollars are awarded to the4900
competitors.4901

       (2) "Full-time employee" means an individual who is employed4902
for consideration for thirty-five or more hours a week, or who4903
renders any other standard of service generally accepted by custom4904
or specified by contract as full-time employment.4905

       (UU)(1) "Prepaid authorization number" means a numeric or4906
alphanumeric combination that represents a prepaid account that4907
can be used by the account holder solely to obtain4908
telecommunications service, and includes any renewals or increases4909
in the prepaid account.4910

       (2) "Prepaid telephone calling card" means a tangible item4911
that contains a prepaid authorization number that can be used4912
solely to obtain telecommunications service, and includes any4913
renewals or increases in the prepaid account.4914

       (VV) "Mobile telecommunications service" has the same meaning4915
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.4916
106-252 (2000), 114 Stat. 631, 4 U.S.C.A. 124(7), as amended.4917

       Sec. 5739.011.  (A) As used in this section:4918

       (1) "Manufacturer" means a person who is engaged in4919
manufacturing, processing, assembling, or refining a product for4920
sale.4921

       (2) "Manufacturing facility" means a single location where a4922
manufacturing operation is conducted, including locations4923
consisting of one or more buildings or structures in a contiguous4924
area owned or controlled by the manufacturer.4925

       (3) "Materials handling" means the movement of the product4926
being or to be manufactured, during which movement the product is4927
not undergoing any substantial change or alteration in its state4928
or form.4929

       (4) "Testing" means a process or procedure to identify the4930
properties or assure the quality of a material or product.4931

       (5) "Completed product" means a manufactured item that is in4932
the form and condition as it will be sold by the manufacturer. An4933
item is completed when all processes that change or alter its4934
state or form or enhance its value are finished, even though the4935
item subsequently will be tested to ensure its quality or be4936
packaged for storage or shipment.4937

       (6) "Continuous manufacturing operation" means the process in4938
which raw materials or components are moved through the steps4939
whereby manufacturing occurs. Materials handling of raw materials4940
or parts from the point of receipt or preproduction storage or of4941
a completed product, to or from storage, to or from packaging, or4942
to the place from which the completed product will be shipped, is4943
not a part of a continuous manufacturing operation.4944

       (B) For purposes of division (E)(9) of section 5739.01 of4945
the Revised Code, the "thing transferred" includes, but is not4946
limited to, any of the following:4947

       (1) Production machinery and equipment that act upon the4948
product or machinery and equipment that treat the materials or4949
parts in preparation for the manufacturing operation;4950

       (2) Materials handling equipment that moves the product4951
through a continuous manufacturing operation; equipment that4952
temporarily stores the product during the manufacturing operation;4953
or, excluding motor vehicles licensed to operate on public4954
highways, equipment used in intraplant or interplant transfers of4955
work in process where the plant or plants between which such4956
transfers occur are manufacturing facilities operated by the same4957
person;4958

       (3) Catalysts, solvents, water, acids, oil, and similar4959
consumables that interact with the product and that are an4960
integral part of the manufacturing operation;4961

       (4) Machinery, equipment, and other tangible personal4962
property used during the manufacturing operation that control,4963
physically support, produce power for, lubricate, or are otherwise4964
necessary for the functioning of production machinery and4965
equipment and the continuation of the manufacturing operation;4966

       (5) Machinery, equipment, fuel, power, material, parts, and4967
other tangible personal property used to manufacture machinery,4968
equipment, or other tangible personal property used in4969
manufacturing a product for sale;4970

       (6) Machinery, equipment, and other tangible personal4971
property used by a manufacturer to test raw materials, the product4972
being manufactured, or the completed product;4973

       (7) Machinery and equipment used to handle or temporarily4974
store scrap that is intended to be reused in the manufacturing4975
operation at the same manufacturing facility;4976

       (8) Coke, gas, water, steam, and similar substances used in4977
the manufacturing operation; machinery and equipment used for, and4978
fuel consumed in, producing or extracting those substances;4979
machinery, equipment, and other tangible personal property used to4980
treat, filter, pump, or otherwise make the substance suitable for4981
use in the manufacturing operation; and machinery and equipment4982
used to producefor, and fuel consumed in, producing electricity4983
for use in the manufacturing operation;4984

       (9) Machinery, equipment, and other tangible personal4985
property used to transport or transmit electricity, coke, gas,4986
water, steam, or similar substances used in the manufacturing4987
operation from the point of generation, if produced by the4988
manufacturer, or from the point where the substance enters the4989
manufacturing facility, if purchased by the manufacturer, to the4990
manufacturing operation;4991

       (10) Machinery, equipment, and other tangible personal4992
property that treats, filters, cools, refines, or otherwise4993
renders water, steam, acid, oil, solvents, or similar substances4994
used in the manufacturing operation reusable, provided that the4995
substances are intended for reuse and not for disposal, sale, or4996
transportation from the manufacturing facility;4997

       (11) Parts, components, and repair and installation services4998
for items described in division (B) of this section.4999

       (C) For purposes of division (E)(9) of section 5739.01 of5000
the Revised Code, the "thing transferred" does not include any of5001
the following:5002

       (1) Tangible personal property used in administrative,5003
personnel, security, inventory control, record-keeping, ordering,5004
billing, or similar functions;5005

       (2) Tangible personal property used in storing raw materials5006
or parts prior to the commencement of the manufacturing operation5007
or used to handle or store a completed product, including storage5008
that actively maintains a completed product in a marketable state5009
or form;5010

       (3) Tangible personal property used to handle or store scrap5011
or waste intended for disposal, sale, or other disposition, other5012
than reuse in the manufacturing operation at the same5013
manufacturing facility;5014

       (4) Tangible personal property that is or is to be5015
incorporated into realty;5016

       (5) Machinery, equipment, and other tangible personal5017
property used for ventilation, dust or gas collection, humidity or5018
temperature regulation, or similar environmental control, except5019
machinery, equipment, and other tangible personal property that5020
totally regulates the environment in a special and limited area of5021
the manufacturing facility where the regulation is essential for5022
production to occur;5023

       (6) Tangible personal property used for the protection and5024
safety of workers, unless the property is attached to or5025
incorporated into machinery and equipment used in a continuous5026
manufacturing operation;5027

       (7) Tangible personal property used to store fuel, water,5028
solvents, acid, oil, or similar items consumed in the5029
manufacturing operation;5030

       (8) Machinery, equipment, and other tangible personal5031
property used for research and development;5032

       (9) Machinery, equipment, and other tangible personal5033
property used to clean, repair, or maintain real or personal5034
property in the manufacturing facility;5035

       (10)(9) Motor vehicles registered for operation on the5036
public highways.5037

       (D) For purposes of division (E)(9) of section 5739.01 of5038
the Revised Code, if the "thing transferred" is a machine used by5039
a manufacturer in both a taxable and an exempt manner, it shall be5040
totally taxable or totally exempt from taxation based upon its5041
quantified primary use. If the "things transferred" are5042
fungibles, they shall be taxed based upon the proportion of the5043
fungibles used in a taxable manner.5044

       Sec. 5739.02.  For the purpose of providing revenue with5045
which to meet the needs of the state, for the use of the general5046
revenue fund of the state, for the purpose of securing a thorough5047
and efficient system of common schools throughout the state, for5048
the purpose of affording revenues, in addition to those from5049
general property taxes, permitted under constitutional5050
limitations, and from other sources, for the support of local5051
governmental functions, and for the purpose of reimbursing the5052
state for the expense of administering this chapter, an excise tax5053
is hereby levied on each retail sale made in this state.5054

       (A) The tax shall be collected pursuant to the schedules in5055
section 5739.025 of the Revised Code.5056

       The tax applies and is collectible when the sale is made,5057
regardless of the time when the price is paid or delivered.5058

       In the case of a sale, the price of which consists in whole5059
or in part of rentals for the use of the thing transferred, the5060
tax, as regards such rentals, shall be measured by the5061
installments thereof.5062

       In the case of a sale of a service defined under division5063
(MM) or (NN) of section 5739.01 of the Revised Code, the price of5064
which consists in whole or in part of a membership for the receipt5065
of the benefit of the service, the tax applicable to the sale5066
shall be measured by the installments thereof.5067

       (B) The tax does not apply to the following:5068

       (1) Sales to the state or any of its political subdivisions,5069
or to any other state or its political subdivisions if the laws of5070
that state exempt from taxation sales made to this state and its5071
political subdivisions;5072

       (2) Sales of food for human consumption off the premises5073
where sold;5074

       (3) Sales of food sold to students only in a cafeteria,5075
dormitory, fraternity, or sorority maintained in a private,5076
public, or parochial school, college, or university;5077

       (4) Sales of newspapers, and of magazine subscriptions5078
shipped by second class mail, and sales or transfers of magazines5079
distributed as controlled circulation publications;5080

       (5) The furnishing, preparing, or serving of meals without5081
charge by an employer to an employee provided the employer records5082
the meals as part compensation for services performed or work5083
done;5084

       (6) Sales of motor fuel upon receipt, use, distribution, or5085
sale of which in this state a tax is imposed by the law of this5086
state, but this exemption shall not apply to the sale of motor5087
fuel on which a refund of the tax is allowable under section5088
5735.14 of the Revised Code; and the tax commissioner may deduct5089
the amount of tax levied by this section applicable to the price5090
of motor fuel when granting a refund of motor fuel tax pursuant to5091
section 5735.14 of the Revised Code and shall cause the amount5092
deducted to be paid into the general revenue fund of this state;5093

       (7) Sales of natural gas by a natural gas company, of water5094
by a water-works company, or of steam by a heating company, if in5095
each case the thing sold is delivered to consumers through pipes5096
or conduits, and all sales of communications services by a5097
telephone or telegraph company, all terms as defined in section5098
5727.01 of the Revised Code;5099

       (8) Casual sales by a person, or auctioneer employed5100
directly by the person to conduct such sales, except as to such5101
sales of motor vehicles, watercraft or outboard motors required to5102
be titled under section 1548.06 of the Revised Code, watercraft5103
documented with the United States coast guard, snowmobiles, and5104
all-purpose vehicles as defined in section 4519.01 of the Revised5105
Code;5106

       (9) Sales of services or tangible personal property, other5107
than motor vehicles, mobile homes, and manufactured homes, by5108
churches, organizations exempt from taxation under section5109
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit5110
organizations operated exclusively for charitable purposes as5111
defined in division (B)(12) of this section, provided that the5112
number of days on which such tangible personal property or5113
services, other than items never subject to the tax, are sold does5114
not exceed six in any calendar year. If the number of days on5115
which such sales are made exceeds six in any calendar year, the5116
church or organization shall be considered to be engaged in5117
business and all subsequent sales by it shall be subject to the5118
tax. In counting the number of days, all sales by groups within a5119
church or within an organization shall be considered to be sales5120
of that church or organization, except that sales made by separate5121
student clubs and other groups of students of a primary or5122
secondary school, and sales made by a parent-teacher association,5123
booster group, or similar organization that raises money to5124
support or fund curricular or extracurricular activities of a5125
primary or secondary school, shall not be considered to be sales5126
of such school, and sales by each such club, group, association,5127
or organization shall be counted separately for purposes of the5128
six-day limitation. This division does not apply to sales by a5129
noncommercial educational radio or television broadcasting5130
station.5131

       (10) Sales not within the taxing power of this state under5132
the Constitution of the United States;5133

       (11) The transportation of persons or property, unless the5134
transportation is by a private investigation and security service;5135

       (12) Sales of tangible personal property or services to5136
churches, to organizations exempt from taxation under section5137
501(c)(3) of the Internal Revenue Code of 1986, and to any other5138
nonprofit organizations operated exclusively for charitable5139
purposes in this state, no part of the net income of which inures5140
to the benefit of any private shareholder or individual, and no5141
substantial part of the activities of which consists of carrying5142
on propaganda or otherwise attempting to influence legislation;5143
sales to offices administering one or more homes for the aged or5144
one or more hospital facilities exempt under section 140.08 of the5145
Revised Code; and sales to organizations described in division (D)5146
of section 5709.12 of the Revised Code.5147

       "Charitable purposes" means the relief of poverty; the5148
improvement of health through the alleviation of illness, disease,5149
or injury; the operation of an organization exclusively for the5150
provision of professional, laundry, printing, and purchasing5151
services to hospitals or charitable institutions; the operation of5152
a home for the aged, as defined in section 5701.13 of the Revised5153
Code; the operation of a radio or television broadcasting station5154
that is licensed by the federal communications commission as a5155
noncommercial educational radio or television station; the5156
operation of a nonprofit animal adoption service or a county5157
humane society; the promotion of education by an institution of5158
learning that maintains a faculty of qualified instructors,5159
teaches regular continuous courses of study, and confers a5160
recognized diploma upon completion of a specific curriculum; the5161
operation of a parent-teacher association, booster group, or5162
similar organization primarily engaged in the promotion and5163
support of the curricular or extracurricular activities of a5164
primary or secondary school; the operation of a community or area5165
center in which presentations in music, dramatics, the arts, and5166
related fields are made in order to foster public interest and5167
education therein; the production of performances in music,5168
dramatics, and the arts; or the promotion of education by an5169
organization engaged in carrying on research in, or the5170
dissemination of, scientific and technological knowledge and5171
information primarily for the public.5172

       Nothing in this division shall be deemed to exempt sales to5173
any organization for use in the operation or carrying on of a5174
trade or business, or sales to a home for the aged for use in the5175
operation of independent living facilities as defined in division5176
(A) of section 5709.12 of the Revised Code.5177

       (13) Building and construction materials and services sold5178
to construction contractors for incorporation into a structure or5179
improvement to real property under a construction contract with5180
this state or a political subdivision thereof, or with the United5181
States government or any of its agencies; building and5182
construction materials and services sold to construction5183
contractors for incorporation into a structure or improvement to5184
real property that are accepted for ownership by this state or any5185
of its political subdivisions, or by the United States government5186
or any of its agencies at the time of completion of such5187
structures or improvements; building and construction materials5188
sold to construction contractors for incorporation into a5189
horticulture structure or livestock structure for a person engaged5190
in the business of horticulture or producing livestock; building5191
materials and services sold to a construction contractor for5192
incorporation into a house of public worship or religious5193
education, or a building used exclusively for charitable purposes5194
under a construction contract with an organization whose purpose5195
is as described in division (B)(12) of this section; building5196
materials and services sold to a construction contractor for5197
incorporation into a building under a construction contract with5198
an organization exempt from taxation under section 501(c)(3) of5199
the Internal Revenue Code of 1986 when the building is to be used5200
exclusively for the organization's exempt purposes; building and5201
construction materials sold for incorporation into the original5202
construction of a sports facility under section 307.696 of the5203
Revised Code; and building and construction materials and services5204
sold to a construction contractor for incorporation into real5205
property outside this state if such materials and services, when5206
sold to a construction contractor in the state in which the real5207
property is located for incorporation into real property in that5208
state, would be exempt from a tax on sales levied by that state;5209

       (14) Sales of ships or vessels or rail rolling stock used or5210
to be used principally in interstate or foreign commerce, and5211
repairs, alterations, fuel, and lubricants for such ships or5212
vessels or rail rolling stock;5213

       (15) Sales to persons engaged in any of the activities5214
mentioned in division (E)(2) or (9) of section 5739.01 of the5215
Revised Code, to persons engaged in making retail sales, or to5216
persons who purchase for sale from a manufacturer tangible5217
personal property that was produced by the manufacturer in5218
accordance with specific designs provided by the purchaser, of5219
packages, including material, labels, and parts for packages, and5220
of machinery, equipment, and material for use primarily in5221
packaging tangible personal property produced for sale, including5222
any machinery, equipment, and supplies used to make labels or5223
packages, to prepare packages or products for labeling, or to5224
label packages or products, by or on the order of the person doing5225
the packaging, or sold at retail. "Packages" includes bags,5226
baskets, cartons, crates, boxes, cans, bottles, bindings,5227
wrappings, and other similar devices and containers, and5228
"packaging" means placing therein.5229

       (16) Sales of food to persons using food stamp benefits to5230
purchase the food. As used in division (B)(16) of this section,5231
"food" has the same meaning as in the "Food Stamp Act of 1977," 915232
Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations5233
adopted pursuant to that act.5234

       (17) Sales to persons engaged in farming, agriculture,5235
horticulture, or floriculture, of tangible personal property for5236
use or consumption directly in the production by farming,5237
agriculture, horticulture, or floriculture of other tangible5238
personal property for use or consumption directly in the5239
production of tangible personal property for sale by farming,5240
agriculture, horticulture, or floriculture; or material and parts5241
for incorporation into any such tangible personal property for use5242
or consumption in production; and of tangible personal property5243
for such use or consumption in the conditioning or holding of5244
products produced by and for such use, consumption, or sale by5245
persons engaged in farming, agriculture, horticulture, or5246
floriculture, except where such property is incorporated into real5247
property;5248

       (18) Sales of drugs dispensed by a licensed pharmacist upon5249
the order of a licensed health professional authorized to5250
prescribe drugs to a human being, as the term "licensed health5251
professional authorized to prescribe drugs" is defined in section5252
4729.01 of the Revised Code; insulin as recognized in the official5253
United States pharmacopoeia; urine and blood testing materials5254
when used by diabetics or persons with hypoglycemia to test for5255
glucose or acetone; hypodermic syringes and needles when used by5256
diabetics for insulin injections; epoetin alfa when purchased for5257
use in the treatment of persons with end-stage renal disease;5258
hospital beds when purchased for use by persons with medical5259
problems for medical purposes; and oxygen and oxygen-dispensing5260
equipment when purchased for use by persons with medical problems5261
for medical purposes;5262

       (19)(a) Sales of artificial limbs or portion thereof, breast5263
prostheses, and other prosthetic devices for humans; braces or5264
other devices for supporting weakened or nonfunctioning parts of5265
the human body; crutches or other devices to aid human5266
perambulation; and items of tangible personal property used to5267
supplement impaired functions of the human body such as5268
respiration, hearing, or elimination;5269

       (b) Sales of wheelchairs; items incorporated into or used in5270
conjunction with a motor vehicle for the purpose of transporting5271
wheelchairs, other than transportation conducted in connection5272
with the sale or delivery of wheelchairs; and items incorporated5273
into or used in conjunction with a motor vehicle that are5274
specifically designed to assist a person with a disability to5275
access or operate the motor vehicle. As used in this division,5276
"person with a disability" means any person who has lost the use5277
of one or both legs or one or both arms, who is blind, deaf, or5278
disabled to the extent that the person is unable to move about5279
without the aid of crutches or a wheelchair, or whose mobility is5280
restricted by a permanent cardiovascular, pulmonary, or other5281
disabling condition.5282

       (c) No exemption under this division shall be allowed for5283
nonprescription drugs, medicines, or remedies; items or devices5284
used to supplement vision; items or devices whose function is5285
solely or primarily cosmetic; or physical fitness equipment. This5286
division does not apply to sales to a physician or medical5287
facility for use in the treatment of a patient.5288

       (20) Sales of emergency and fire protection vehicles and5289
equipment to nonprofit organizations for use solely in providing5290
fire protection and emergency services, including trauma care and5291
emergency medical services, for political subdivisions of the5292
state;5293

       (21) Sales of tangible personal property manufactured in5294
this state, if sold by the manufacturer in this state to a5295
retailer for use in the retail business of the retailer outside of5296
this state and if possession is taken from the manufacturer by the5297
purchaser within this state for the sole purpose of immediately5298
removing the same from this state in a vehicle owned by the5299
purchaser;5300

       (22) Sales of services provided by the state or any of its5301
political subdivisions, agencies, instrumentalities, institutions,5302
or authorities, or by governmental entities of the state or any of5303
its political subdivisions, agencies, instrumentalities,5304
institutions, or authorities;5305

       (23) Sales of motor vehicles to nonresidents of this state5306
upon the presentation of an affidavit executed in this state by5307
the nonresident purchaser affirming that the purchaser is a5308
nonresident of this state, that possession of the motor vehicle is5309
taken in this state for the sole purpose of immediately removing5310
it from this state, that the motor vehicle will be permanently5311
titled and registered in another state, and that the motor vehicle5312
will not be used in this state;5313

       (24) Sales to persons engaged in the preparation of eggs for5314
sale of tangible personal property used or consumed directly in5315
such preparation, including such tangible personal property used5316
for cleaning, sanitizing, preserving, grading, sorting, and5317
classifying by size; packages, including material and parts for5318
packages, and machinery, equipment, and material for use in5319
packaging eggs for sale; and handling and transportation equipment5320
and parts therefor, except motor vehicles licensed to operate on5321
public highways, used in intraplant or interplant transfers or5322
shipment of eggs in the process of preparation for sale, when the5323
plant or plants within or between which such transfers or5324
shipments occur are operated by the same person. "Packages"5325
includes containers, cases, baskets, flats, fillers, filler flats,5326
cartons, closure materials, labels, and labeling materials, and5327
"packaging" means placing therein.5328

       (25)(a) Sales of water to a consumer for residential use,5329
except the sale of bottled water, distilled water, mineral water,5330
carbonated water, or ice;5331

       (b) Sales of water by a nonprofit corporation engaged5332
exclusively in the treatment, distribution, and sale of water to5333
consumers, if such water is delivered to consumers through pipes5334
or tubing.5335

       (26) Fees charged for inspection or reinspection of motor5336
vehicles under section 3704.14 of the Revised Code;5337

       (27) Sales to persons licensed to conduct a food service5338
operation pursuant to section 3717.43 of the Revised Code, of5339
tangible personal property primarily used directly for the5340
following:5341

       (a) To prepare food for human consumption for sale;5342

       (b) To preserve food that has been or will be prepared for5343
human consumption for sale by the food service operator, not5344
including tangible personal property used to display food for5345
selection by the consumer;5346

       (c) To clean tangible personal property used to prepare or5347
serve food for human consumption for sale.5348

       (28) Sales of animals by nonprofit animal adoption services5349
or county humane societies;5350

       (29) Sales of services to a corporation described in5351
division (A) of section 5709.72 of the Revised Code, and sales of5352
tangible personal property that qualifies for exemption from5353
taxation under section 5709.72 of the Revised Code;5354

       (30) Sales and installation of agricultural land tile, as5355
defined in division (B)(5)(a) of section 5739.01 of the Revised5356
Code;5357

       (31) Sales and erection or installation of portable grain5358
bins, as defined in division (B)(5)(b) of section 5739.01 of the5359
Revised Code;5360

       (32) The sale, lease, repair, and maintenance of, parts for,5361
or items attached to or incorporated in, motor vehicles that are5362
primarily used for transporting tangible personal property by a5363
person engaged in highway transportation for hire;5364

       (33) Sales to the state headquarters of any veterans'5365
organization in Ohio that is either incorporated and issued a5366
charter by the congress of the United States or is recognized by5367
the United States veterans administration, for use by the5368
headquarters;5369

       (34) Sales to a telecommunications service vendor of5370
tangible personal property and services used directly and5371
primarily in transmitting, receiving, switching, or recording any5372
interactive, two-way electromagnetic communications, including5373
voice, image, data, and information, through the use of any5374
medium, including, but not limited to, poles, wires, cables,5375
switching equipment, computers, and record storage devices and5376
media, and component parts for the tangible personal property. 5377
The exemption provided in division (B)(34) of this section shall5378
be in lieu of all other exceptions under division (E)(2) of5379
section 5739.01 of the Revised Code to which a telecommunications5380
service vendor may otherwise be entitled based upon the use of the5381
thing purchased in providing the telecommunications service.5382

       (35) Sales of investment metal bullion and investment coins.5383
"Investment metal bullion" means any elementary precious metal5384
that has been put through a process of smelting or refining,5385
including, but not limited to, gold, silver, platinum, and5386
palladium, and which is in such state or condition that its value5387
depends upon its content and not upon its form. "Investment metal5388
bullion" does not include fabricated precious metal that has been5389
processed or manufactured for one or more specific and customary5390
industrial, professional, or artistic uses. "Investment coins"5391
means numismatic coins or other forms of money and legal tender5392
manufactured of gold, silver, platinum, palladium, or other metal5393
under the laws of the United States or any foreign nation with a5394
fair market value greater than any statutory or nominal value of5395
such coins.5396

       (36)(a) Sales where the purpose of the consumer is to use or5397
consume the things transferred in making retail sales and5398
consisting of newspaper inserts, catalogues, coupons, flyers, gift5399
certificates, or other advertising material that prices and5400
describes tangible personal property offered for retail sale.5401

       (b) Sales to direct marketing vendors of preliminary5402
materials such as photographs, artwork, and typesetting that will5403
be used in printing advertising material; of printed matter that5404
offers free merchandise or chances to win sweepstake prizes and5405
that is mailed to potential customers with advertising material5406
described in division (B)(36)(a) of this section; and of equipment5407
such as telephones, computers, facsimile machines, and similar5408
tangible personal property primarily used to accept orders for5409
direct marketing retail sales.5410

       (c) Sales of automatic food vending machines that preserve5411
food with a shelf life of forty-five days or less by refrigeration5412
and dispense it to the consumer.5413

       For purposes of division (B)(36) of this section, "direct5414
marketing" means the method of selling where consumers order5415
tangible personal property by United States mail, delivery5416
service, or telecommunication and the vendor delivers or ships the5417
tangible personal property sold to the consumer from a warehouse,5418
catalogue distribution center, or similar fulfillment facility by5419
means of the United States mail, delivery service, or common5420
carrier.5421

       (37) Sales to a person engaged in the business of5422
horticulture or producing livestock of materials to be5423
incorporated into a horticulture structure or livestock structure;5424

       (38) The sale of a motor vehicle that is used exclusively5425
for a vanpool ridesharing arrangement to persons participating in5426
the vanpool ridesharing arrangement when the vendor is selling the5427
vehicle pursuant to a contract between the vendor and the5428
department of transportation;5429

       (39) Sales of personal computers, computer monitors,5430
computer keyboards, modems, and other peripheral computer5431
equipment to an individual who is licensed or certified to teach5432
in an elementary or a secondary school in this state for use by5433
that individual in preparation for teaching elementary or5434
secondary school students;5435

       (40) Sales to a professional racing team of any of the5436
following:5437

       (a) Motor racing vehicles;5438

       (b) Repair services for motor racing vehicles;5439

       (c) Items of property that are attached to or incorporated5440
in motor racing vehicles, including engines, chassis, and all5441
other components of the vehicles, and all spare, replacement, and5442
rebuilt parts or components of the vehicles; except not including5443
tires, consumable fluids, paint, and accessories consisting of5444
instrumentation sensors and related items added to the vehicle to5445
collect and transmit data by means of telemetry and other forms of5446
communication.5447

       (41) Sales of used manufactured homes and used mobile homes,5448
as defined in section 5739.0210 of the Revised Code, made on or5449
after January 1, 2000;5450

       (42) Sales of tangible personal property and services to a5451
provider of electricity used or consumed directly and primarily in5452
generating, transmitting, or distributing electricity for use by5453
others, including property that is or is to be incorporated into5454
and will become a part of the consumer's production, transmission,5455
or distribution system and that retains its classification as5456
tangible personal property after incorporation; fuel or power used5457
in the production, transmission, or distribution of electricity;5458
and tangible personal property and services used in the repair and5459
maintenance of the production, transmission, or distribution5460
system, including only those motor vehicles as are specially5461
designed and equipped for such use. The exemption provided in5462
this division shall be in lieu of all other exceptions in division5463
(E)(2) of section 5739.01 of the Revised Code to which a provider5464
of electricity may otherwise be entitled based on the use of the5465
tangible personal property or service purchased in generating,5466
transmitting, or distributing electricity.5467

       For the purpose of the proper administration of this chapter,5468
and to prevent the evasion of the tax, it is presumed that all5469
sales made in this state are subject to the tax until the contrary5470
is established.5471

       As used in this section, except in division (B)(16) of this5472
section, "food" includes cereals and cereal products, milk and5473
milk products including ice cream, meat and meat products, fish5474
and fish products, eggs and egg products, vegetables and vegetable5475
products, fruits, fruit products, and pure fruit juices,5476
condiments, sugar and sugar products, coffee and coffee5477
substitutes, tea, and cocoa and cocoa products. It does not5478
include: spirituous or malt liquors; soft drinks; sodas and5479
beverages that are ordinarily dispensed at bars and soda fountains5480
or in connection therewith, other than coffee, tea, and cocoa;5481
root beer and root beer extracts; malt and malt extracts; mineral5482
oils, cod liver oils, and halibut liver oil; medicines, including5483
tonics, vitamin preparations, and other products sold primarily5484
for their medicinal properties; and water, including mineral,5485
bottled, and carbonated waters, and ice.5486

       (C) The levy of an excise tax on transactions by which5487
lodging by a hotel is or is to be furnished to transient guests5488
pursuant to this section and division (B) of section 5739.01 of5489
the Revised Code does not prevent any of the following:5490

       (1) A municipal corporation or township from levying an5491
excise tax for any lawful purpose not to exceed three per cent on5492
transactions by which lodging by a hotel is or is to be furnished5493
to transient guests in addition to the tax levied by this section.5494
If a municipal corporation or township repeals a tax imposed under5495
division (C)(1) of this section and a county in which the5496
municipal corporation or township has territory has a tax imposed5497
under division (C) of section 5739.024 of the Revised Code in5498
effect, the municipal corporation or township may not reimpose its5499
tax as long as that county tax remains in effect. A municipal5500
corporation or township in which a tax is levied under division5501
(B)(2) of section 351.021 of the Revised Code may not increase the5502
rate of its tax levied under division (C)(1) of this section to5503
any rate that would cause the total taxes levied under both of5504
those divisions to exceed three per cent on any lodging5505
transaction within the municipal corporation or township.5506

       (2) A municipal corporation or a township from levying an5507
additional excise tax not to exceed three per cent on such5508
transactions pursuant to division (B) of section 5739.024 of the5509
Revised Code. Such tax is in addition to any tax imposed under5510
division (C)(1) of this section.5511

       (3) A county from levying an excise tax pursuant to division5512
(A) of section 5739.024 of the Revised Code.5513

       (4) A county from levying an excise tax not to exceed three5514
per cent of such transactions pursuant to division (C) of section5515
5739.024 of the Revised Code. Such a tax is in addition to any5516
tax imposed under division (C)(3) of this section.5517

       (5) A convention facilities authority, as defined in5518
division (A) of section 351.01 of the Revised Code, from levying5519
the excise taxes provided for in division (B) of section 351.0215520
of the Revised Code.5521

       (6) A county from levying an excise tax not to exceed one5522
and one-half per cent of such transactions pursuant to division5523
(D) of section 5739.024 of the Revised Code. Such tax is in5524
addition to any tax imposed under division (C)(3) or (4) of this5525
section.5526

       (7) A county from levying an excise tax not to exceed one5527
and one-half per cent of such transactions pursuant to division5528
(E) of section 5739.024 of the Revised Code. Such a tax is in5529
addition to any tax imposed under division (C)(3), (4), or (6) of5530
this section.5531

       (D) The levy of this tax on retail sales of recreation and5532
sports club service shall not prevent a municipal corporation from5533
levying any tax on recreation and sports club dues or on any5534
income generated by recreation and sports club dues.5535

       Sec. 5739.026.  (A) A board of county commissioners may levy5536
a tax of one-fourth or one-half of one per cent on every retail5537
sale in the county, except sales of watercraft and outboard motors5538
required to be titled pursuant to Chapter 1548. of the Revised5539
Code and sales of motor vehicles, and may increase an existing5540
rate of one-fourth of one per cent to one-half of one per cent, to5541
pay the expenses of administering the tax and, except as provided5542
in division (A)(6) of this section, for any one or more of the5543
following purposes provided that the aggregate levy for all such5544
purposes does not exceed one-half of one per cent:5545

       (1) To provide additional revenues for the payment of bonds5546
or notes issued in anticipation of bonds issued by a convention5547
facilities authority established by the board of county5548
commissioners under Chapter 351. of the Revised Code and to5549
provide additional operating revenues for the convention5550
facilities authority;5551

       (2) To provide additional revenues for a transit authority5552
operating in the county;5553

       (3) To provide additional revenue for the county's general5554
fund;5555

       (4) To provide additional revenue for permanent improvements5556
within the county to be distributed by the community improvements5557
board in accordance with section 307.283 and to pay principal,5558
interest, and premium on bonds issued under section 307.284 of the5559
Revised Code;5560

       (5) To provide additional revenue for the acquisition,5561
construction, equipping, or repair of any specific permanent5562
improvement or any class or group of permanent improvements, which5563
improvement or class or group of improvements shall be enumerated5564
in the resolution required by division (D) of this section, and to5565
pay principal, interest, premium, and other costs associated with5566
the issuance of bonds or notes in anticipation of bonds issued5567
pursuant to Chapter 133. of the Revised Code for the acquisition,5568
construction, equipping, or repair of the specific permanent5569
improvement or class or group of permanent improvements;5570

       (6) To provide revenue for the implementation and operation5571
of a 9-1-1 system in the county. If the tax is levied or the rate5572
increased exclusively for such purpose, the tax shall not be5573
levied or the rate increased for more than five years. At the end5574
of the last year the tax is levied or the rate increased, any5575
balance remaining in the special fund established for such purpose5576
shall remain in that fund and be used exclusively for such purpose5577
until the fund is completely expended, and, notwithstanding5578
section 5705.16 of the Revised Code, the board of county5579
commissioners shall not petition for the transfer of money from5580
such special fund, and the tax commissioner shall not approve such5581
a petition.5582

       If the tax is levied or the rate increased for such purpose5583
for more than five years, the board of county commissioners also5584
shall levy the tax or increase the rate of the tax for one or more5585
of the purposes described in divisions (A)(1) to (5) of this5586
section and shall prescribe the method for allocating the revenues5587
from the tax each year in the manner required by division (C) of5588
this section.5589

       (7) To provide additional revenue for the operation or5590
maintenance of a detention facility, as that term is defined under5591
division (F) of section 2921.01 of the Revised Code;5592

       (8) To provide revenue to finance the construction or5593
renovation of a sports facility, but only if the tax is levied for5594
that purpose in the manner prescribed by section 5739.028 of the5595
Revised Code.5596

       As used in division (A)(8) of this section:5597

       (a) "Sports facility" means a facility intended to house5598
major league professional athletic teams.5599

       (b) "Constructing" or "construction" includes providing5600
fixtures, furnishings, and equipment.5601

       (9) To provide additional revenue for the acquisition of5602
agricultural easements, as defined in section 5301.67 of the5603
Revised Code; to pay principal, interest, and premium on bonds5604
issued under section 133.60 of the Revised Code; and for the5605
supervision and enforcement of agricultural easements held by the5606
county.5607

       Pursuant to section 755.171 of the Revised Code, a board of5608
county commissioners may pledge and contribute revenue from a tax5609
levied for the purpose of division (A)(5) of this section to the5610
payment of debt charges on bonds issued under section 755.17 of5611
the Revised Code.5612

       The rate of tax shall be a multiple of one-fourth of one per5613
cent, unless a portion of the rate of an existing tax levied under5614
section 5739.023 of the Revised Code has been reduced, and the5615
rate of tax levied under this section has been increased, pursuant5616
to section 5739.028 of the Revised Code, in which case the5617
aggregate of the rates of tax levied under this section and5618
section 5739.023 of the Revised Code shall be a multiple of5619
one-fourth of one per cent. The tax shall be levied and the rate5620
increased pursuant to a resolution adopted by a majority of the5621
members of the board.5622

       Prior to the adoption of any resolution to levy the tax or to5623
increase the rate of tax exclusively for the purpose set forth in5624
division (A)(3) of this section, the board of county commissioners5625
shall conduct two public hearings on the resolution, the second5626
hearing to be no fewer than three nor more than ten days after the5627
first. Notice of the date, time, and place of the hearings shall5628
be given by publication in a newspaper of general circulation in5629
the county once a week on the same day of the week for two5630
consecutive weeks, the second publication being no fewer than ten5631
nor more than thirty days prior to the first hearing. The5632
resolution shall become effective on the first day of the month5633
specified in the resolution but not earlier than the first day of5634
the month following the expiration of sixty days from the date of5635
its adoption, subject to a referendum as provided in sections5636
305.31 to 305.41 of the Revised Code, unless the resolution is5637
adopted as an emergency measure necessary for the immediate5638
preservation of the public peace, health, or safety, in which case5639
it shall go into effect on the first day of the month following5640
the expiration of thirty days from the date of notice by the board5641
of county commissioners to the tax commissioner of its adoption. 5642
The emergency measure shall receive an affirmative vote of all of5643
the members of the board of county commissioners and shall state5644
the reasons for the necessity.5645

       If the tax is for more than one of the purposes set forth in5646
divisions (A)(1) to (7) and (9) of this section or is exclusively5647
for one of the purposes set forth in division (A)(1), (2), (4),5648
(5), (6), (7), or (9) of this section, the resolution shall not go5649
into effect unless it is approved by a majority of the electors5650
voting on the question of the tax.5651

       (B) The board of county commissioners shall adopt a5652
resolution under section 351.02 of the Revised Code creating the5653
convention facilities authority, or under section 307.283 of the5654
Revised Code creating the community improvements board, before5655
adopting a resolution levying a tax for the purpose of a5656
convention facilities authority under division (A)(1) of this5657
section or for the purpose of a community improvements board under5658
division (A)(4) of this section.5659

       (C)(1) If the tax is to be used for more than one of the5660
purposes set forth in divisions (A)(1) to (7) and (9) of this5661
section, the board of county commissioners shall establish the5662
method that will be used to determine the amount or proportion of5663
the tax revenue received by the county during each year that will5664
be distributed for each of those purposes, including, if5665
applicable, provisions governing the reallocation of a convention5666
facilities authority's allocation if the authority is dissolved5667
while the tax is in effect. The allocation method may provide5668
that different proportions or amounts of the tax shall be5669
distributed among the purposes in different years, but it shall5670
clearly describe the method that will be used for each year.5671
Except as otherwise provided in division (C)(2) of this section,5672
the allocation method established by the board is not subject to5673
amendment during the life of the tax.5674

       (2) Subsequent to holding a public hearing on the proposed5675
amendment, the board of county commissioners may amend the5676
allocation method established under division (C)(1) of this5677
section for any year if the amendment is approved by the governing5678
board of each entity whose allocation for the year would be5679
reduced by the proposed amendment. In the case of a tax that is5680
levied for a continuing period of time, the board may not so amend5681
the allocation method for any year before the sixth year that the5682
tax is in effect.5683

       (a) If the additional revenues provided to the convention5684
facilities authority are pledged by the authority for the payment5685
of convention facilities authority revenue bonds for as long as5686
such bonds are outstanding, no reduction of the authority's5687
allocation of the tax shall be made for any year except to the5688
extent that the reduced authority allocation, when combined with5689
the authority's other revenues pledged for that purpose, is5690
sufficient to meet the debt service requirements for that year on5691
such bonds.5692

       (b) If the additional revenues provided to the county are5693
pledged by the county for the payment of bonds or notes described5694
in division (A)(4) or (5) of this section, for as long as such5695
bonds or notes are outstanding, no reduction of the county's or5696
the community improvements board's allocation of the tax shall be5697
made for any year except to the extent that the reduced county or5698
community improvements board allocation is sufficient to meet the5699
debt service requirements for that year on such bonds or notes.5700

       (c) If the additional revenues provided to the transit5701
authority are pledged by the authority for the payment of revenue5702
bonds issued under section 306.37 of the Revised Code, for as long5703
as such bonds are outstanding, no reduction of the authority's5704
allocation of tax shall be made for any year except to the extent5705
that the authority's reduced allocation, when combined with the5706
authority's other revenues pledged for that purpose, is sufficient5707
to meet the debt service requirements for that year on such bonds.5708

       (d) If the additional revenues provided to the county are5709
pledged by the county for the payment of bonds or notes issued5710
under section 133.60 of the Revised Code, for so long as the bonds5711
or notes are outstanding, no reduction of the county's allocation5712
of the tax shall be made for any year except to the extent that5713
the reduced county allocation is sufficient to meet the debt5714
service requirements for that year on the bonds or notes.5715

       (D)(1) The resolution levying the tax or increasing the rate5716
of tax shall state the rate of the tax or the rate of the5717
increase; the purpose or purposes for which it is to be levied;5718
the number of years for which it is to be levied or that it is for5719
a continuing period of time; the allocation method required by5720
division (C) of this section; and if required to be submitted to5721
the electors of the county under division (A) of this section, the5722
date of the election at which the proposal shall be submitted to5723
the electors of the county, which shall be not less than5724
seventy-five days after the certification of a copy of the5725
resolution to the board of elections and, if the tax is to be5726
levied exclusively for the purpose set forth in division (A)(3) of5727
this section, shall not occur in February or August of any year.5728
Upon certification of the resolution to the board of elections,5729
the board of county commissioners shall notify the tax5730
commissioner in writing of the levy question to be submitted to5731
the electors. If approved by a majority of the electors, the tax5732
shall become effective on the first day of the month specified in5733
the resolution but not earlier than the first day of the month5734
next following the thirtieth day following the certification of5735
the results of the election to the board of county commissioners5736
and the tax commissioner by the board of elections.5737

       (2)(a) A resolution specifying that the tax is to be used5738
exclusively for the purpose set forth in division (A)(3) of this5739
section that is not adopted as an emergency measure may direct the5740
board of elections to submit the question of levying the tax or5741
increasing the rate of the tax to the electors of the county at a5742
special election held on the date specified by the board of county5743
commissioners in the resolution, provided that the election occurs5744
not less than seventy-five days after the resolution is certified5745
to the board of elections and the election is not held in February5746
or August of any year. Upon certification of the resolution to5747
the board of elections, the board of county commissioners shall5748
notify the tax commissioner in writing of the levy question to be5749
submitted to the electors. No resolution adopted under division5750
(D)(2)(a) of this section shall go into effect unless approved by5751
a majority of those voting upon it and not until the first day of5752
the month specified in the resolution but not earlier than the5753
first day of the month following the expiration of thirty days5754
from the date of the notice to the tax commissioner by the board5755
of elections of the affirmative vote.5756

       (b) A resolution specifying that the tax is to be used5757
exclusively for the purpose set forth in division (A)(3) of this5758
section that is adopted as an emergency measure shall become5759
effective as provided in division (A) of this section but may5760
direct the board of elections to submit the question of repealing5761
the tax or increase in the rate of the tax to the electors of the5762
county at the next general election in the county occurring not5763
less than seventy-five days after the resolution is certified to5764
the board of elections. Upon certification of the resolution to5765
the board of elections, the board of county commissioners shall5766
notify the tax commissioner in writing of the levy question to be5767
submitted to the electors. The ballot question shall be the same5768
as that prescribed in section 5739.022 of the Revised Code. The5769
board of elections shall notify the board of county commissioners5770
and the tax commissioner of the result of the election immediately5771
after the result has been declared. If a majority of the5772
qualified electors voting on the question of repealing the tax or5773
increase in the rate of the tax vote for repeal of the tax or5774
repeal of the increase, the board of county commissioners, on the5775
first day of the month following the expiration of thirty days5776
after the date it received notice of the result of the election,5777
shall, in the case of a repeal of the tax, cease to levy the tax,5778
or, in the case of a repeal of an increase in the rate of the tax,5779
cease to levy the increased rate and levy the tax at the rate at5780
which it was imposed immediately prior to the increase in rate.5781

       (E) A board of county commissioners may by resolution reduce5782
the rate of a tax levied under division (A)(3) of this section to5783
a lower rate authorized by this section. Any such reduction shall5784
be made effective on the first day of the month specified in the5785
resolution but not sooner than the first day of the month next5786
following the thirtieth day after certification of the resolution5787
to the tax commissioner.5788

       (F) The tax levied pursuant to this section shall be in5789
addition to the tax levied by section 5739.02 of the Revised Code5790
and any tax levied pursuant to section 5739.021 or 5739.023 of the5791
Revised Code.5792

       A county that levies a tax pursuant to this section shall5793
levy a tax at the same rate pursuant to section 5741.023 of the5794
Revised Code.5795

       The additional tax levied by the county shall be collected5796
pursuant to section 5739.025 of the Revised Code.5797

       Any tax levied pursuant to this section is subject to the5798
exemptions provided in section 5739.02 of the Revised Code and in5799
addition shall not be applicable to sales not within the taxing5800
power of a county under the Constitution of the United States or5801
the Ohio Constitution.5802

       Sec. 5739.031.  (A) TheUpon application, the tax5803
commissioner may authorizeissue a direct payment permit that5804
authorizes a manufacturer or other consumer, who purchases5805
tangible personal property or services under circumstances that5806
normally make it impossible at the time of the purchase to5807
determine the manner in which the property or services will be5808
used, to pay the sales tax levied by or pursuant to section5809
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code or5810
the use tax levied by or pursuant to section 5741.02, 5741.021,5811
5741.022, or 5741.023 of the Revised Code directly to the state,5812
and waivewaives the collection of the tax by the vendor or5813
seller, but no such authority shall be granted or exercised except5814
upon application to the commissioner and the issuance by the5815
commissioner of a direct payment permit. If a direct payment5816
permit is granted, then payment of the sales and use taxes on all5817
purchases, including purchases of tangible personal property and5818
services, the use of which is known at the time of the purchase,5819
shall be made directly to the treasurer of state by the permit5820
holderif payment directly to the state would improve compliance5821
and increase the efficiency of the administration of the tax. The5822
commissioner may adopt rules establishing the criteria for the5823
issuance of such permits.5824

       (B) Each permit holder, on or before the twenty-third day of5825
each month, shall make and file with the treasurer of state a5826
return for the preceding month in such form as is prescribed by5827
the tax commissioner and shall pay the tax shown on the return to5828
be due. The return shall show the sum of the prices of taxable5829
merchandise used and taxable services received, the amount of tax5830
due from the permit holder, and such other information as the5831
commissioner deems necessary. The commissioner, upon written5832
request by the permit holder, may extend the time for making and5833
filing returns and paying the tax. If the commissioner determines5834
that a permit holder's tax liability is not such as to merit5835
monthly filing, the commissioner may authorize the permit holder5836
to file returns and pay the tax at less frequent intervals. The5837
treasurer of state shall show on the return the date it was filed5838
and the amount of the payment remitted to the treasurer.5839
Thereafter, the treasurer immediately shall transmit all returns5840
filed under this section to the tax commissioner.5841

       Any permit holder required to file a return and pay the tax5842
under this section whose total payment for any calendar year5843
indicated in that section equals or exceeds the amount shown in5844
section 5739.032 of the Revised Code shall make each payment5845
required by this section in the second ensuing and each succeeding5846
year by electronic funds transfer as prescribed by section5847
5739.032 of the Revised Code, except as otherwise prescribed by5848
that section.5849

       (C) For purposes of reporting and remitting the tax, the5850
price of tangible personal property or services purchased by, or5851
of tangible personal property produced by, the permit holder shall5852
be determined under division (G) of section 5741.01 of the Revised5853
Code. Notwithstanding section 5739.033 of the Revised Code, all5854
the situs of any purchase transactionstransaction made by the5855
permit holder are conclusively determined to be consummated atis5856
the location where the tangible personal property or service is5857
received by the permit holder.5858

       (D) It shall be the duty of every permit holder required to5859
make a return and pay anyits tax under this section to keep and5860
preserve suitable records of purchases together with invoices of5861
purchases, bills of lading, asset ledgers, depreciation schedules,5862
transfer journals, and such other primary and secondary records5863
and documents in such form as the commissioner requires. All such5864
records and other documents shall be open during business hours to5865
the inspection of the tax commissioner, and shall be preserved for5866
a period of four years, unless the commissioner, in writing, has5867
authorized their destruction or disposal at an earlier date, or by5868
order or by reason of a waiver of the four-year time limitation5869
pursuant to section 5739.16 of the Revised Code requires that they5870
be kept longer.5871

       (E) A permit granted pursuant to this section shall continue5872
to be valid until surrendered by the holder or canceled for cause5873
by the tax commissioner.5874

       (F) Persons who hold a direct payment permit that has not5875
been canceled shall not be required to issue exemption5876
certificates and shall not be required to pay the tax as5877
prescribed in sections 5739.03, 5739.033, and 5741.12 of the5878
Revised Code. Such persons shall notify vendors and sellers from5879
whom purchases of tangible personal property or services are made,5880
of their direct payment permit number and that the tax is being5881
paid directly to the state. Upon receipt of such notice, such5882
vendor or seller shall be absolved from all duties and liabilities5883
imposed by section 5739.03 or 5741.04 of the Revised Code with5884
respect to sales of tangible personal property or services to such5885
permit holder.5886

       Vendors and sellers who make sales upon which the tax is not5887
collected by reason of the provisions of this section shall5888
maintain records in such manner that the amount involved and5889
identity of the purchaser may be ascertained. The receipts from5890
such sales shall not be subject to the tax levied in section5891
5739.10 of the Revised Code.5892

       Upon the cancellation or surrender of a direct payment5893
permit, the provisions of sections 5739.03, 5741.04 and 5741.12 of5894
the Revised Code shall immediately apply to all purchases made5895
subsequent to such cancellation or surrender by the person who5896
previously held such permit, and such person shall so notify5897
vendors and sellers from whom purchases of tangible personal5898
property or services are made, in writing, prior to or at the time5899
of the first purchase after such cancellation or surrender. Upon5900
receipt of such notice, the vendor shall be subject to the5901
provisions of sections 5739.03 and 5739.10 of the Revised Code and5902
the seller shall be subject to the provisions of section 5741.045903
of the Revised Code, with respect to all sales subsequently made5904
to such person. Failure of any such person to notify vendors or5905
sellers from whom purchases of tangible personal property or5906
services are made of the cancellation or surrender of a direct5907
payment permit shall be considered as a refusal to pay the tax by5908
the person required to issue such notice.5909

       Sec. 5739.033.  The amount of tax due pursuant to sections5910
5739.02, 5739.021, 5739.023, and 5739.026 of the Revised Code is5911
the sum of the taxes imposed pursuant to those sections at the5912
situs of the consummation of the sale as determined under this5913
section or, if applicable, under division (C) of section 5739.0315914
of the Revised Code.5915

       (A) Except as otherwise provided in this section and,5916
division (C) of section 5739.031, and section 5739.034 of the5917
Revised Code, the situs of all sales are conclusively determined5918
to be consummated atis the vendor's place of business.5919

       (1) If the consumer or the consumer's agent takes possession5920
of the tangible personal property at a place of business of the5921
vendor where the purchase contract or agreement was made, the5922
situs of the sale is consummated at that place of business.5923

       (2) If the consumer or the consumer's agent takes possession5924
of the tangible personal property other than at a place of5925
business of the vendor, or takes possession at a warehouse or5926
similar facility of the vendor, the situs of the sale is5927
consummated at the vendor's place of business where the purchase5928
contract or agreement was made or the purchase order was received.5929

       (3) If the vendor provides a service specified in division5930
(B)(3)(a), (b), (c), (d), (n), or (o) of section 5739.01 of the5931
Revised Code, the situs of the sale is consummated at the vendor's5932
place of business where the service is performed or the contract5933
or agreement for the service was made or the purchase order was5934
received.5935

       (B) If the vendor is a transient vendor as specified in5936
division (B) of section 5739.17 of the Revised Code, the situs of5937
the sale is conclusively determined to be consummated at the5938
vendor's temporary place of business or, if the transient vendor5939
is the lessor of titled motor vehicles, titled watercraft, or5940
titled outboard motors, at the location where the lessee keeps the5941
leased property.5942

       (C) If the vendor makes sales of tangible personal property5943
from a stock of goods carried in a motor vehicle, from which the5944
purchaser makes selection and takes possession, or from which the5945
vendor sells tangible personal property the quantity of which has5946
not been determined prior to the time the purchaser takes5947
possession, the situs of the sale is conclusively determined to be5948
consummated at the location of the motor vehicle when the sale is5949
made.5950

       (D) If the vendor is a delivery vendor as specified in5951
division (D) of section 5739.17 of the Revised Code, the situs of5952
the sale is conclusively determined to be consummated at the place5953
where the tangible personal property is delivered, where the5954
leased property is used, or where the service is performed or5955
received.5956

       (E) If the vendor provides a service specified in division5957
(B)(3)(e), (g), (h), (j), (k), (l), or (m) of section 5739.01 of5958
the Revised Code, the situs of the sale is conclusively determined5959
to be consummated at the location of the consumer where the5960
service is performed or received.5961

       (F) Except as provided in division (I) or (J) of this5962
section, if:5963

       (1) If the vendor provides a service specified in division5964
(B)(3)(f) or (i) of section 5739.01 of the Revised Code, the situs5965
of the sale is conclusively determined to be consummated at the5966
location of the telephone number or account as reflected in the5967
records of the vendor. If, in5968

       (2) In the case of a telecommunications service, if the5969
telephone number or account is located outside this state, the5970
situs of the sale is conclusively determined to be consummated at5971
the location in this state from which the service originated.5972

       (G) If the vendor provides lodging to transient guests as5973
specified in division (B)(2) of section 5739.01 of the Revised5974
Code, the situs of the sale is conclusively determined to be5975
consummated at the location where the lodging is located.5976

       (H) If the vendor sells a warranty, maintenance or service5977
contract, or similar agreement as specified in division (B)(7) of5978
section 5739.01 of the Revised Code and the vendor is a delivery5979
vendor, the situs of the sale is conclusively determined to be5980
consummated at the location of the consumer. If the vendor is not5981
a delivery vendor, the situs of the sale is conclusively5982
determined to be consummated at the vendor's place of business5983
where the contract or agreement was made, unless the warranty or5984
contract is a component of the sale of a titled motor vehicle,5985
titled watercraft, or titled outboard motor, in which case the5986
situs of the sale is conclusively determined to be consummated in5987
the county of titling.5988

       (I) Except as otherwise provided in this division, if the5989
vendor sells a prepaid authorization number or a prepaid telephone5990
calling card, the situs of the sale is conclusively determined to5991
be consummated at the vendor's place of business and shall be5992
taxed at the time of sale. If the vendor sells a prepaid5993
authorization number or prepaid telephone calling card through a5994
telephone call, electronic commerce, or any other form of remote5995
commerce, the situs of the sale is conclusively determined to be5996
made at the consumer's shipping address, or, if there is no item5997
shipped, at the consumer's billing address.5998

       Sec. 5739.034. (A) As used in this section, "customer,5999
enhanced zip code," "home service provider," "licensed service6000
area," and "place of primary use" have the same meanings as in the6001
"Mobile Telecommunications Sourcing Act," Pub. L. No. 106-252, 1146002
Stat. 631 (2000), 4 U.S.C.A. 124, as amended.6003

       (B) Notwithstanding section 5739.033 of the Revised Code, on6004
and after August 1, 2002, if a vendor provides mobile6005
telecommunications service, the situs of all sales of that service6006
is the residential or business street address that is the6007
customer's place of primary use of the service that is within the6008
licensed service area of the home service provider, regardless of6009
whether such mobile telecommunications service originates,6010
terminates, or passes through this state. No mobile6011
telecommunications service provided to a customer with a place of6012
primary use outside this state shall be subject to taxes, charges,6013
or fees imposed in this state. The situs of all sales of mobile6014
telecommunications service shall be determined under the "Mobile6015
Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 Stat.6016
626-632 (2000), 4 U.S.C.A. 116-126, as amended.6017

       (C) Pursuant to 4 U.S.C.A. 123, when otherwise taxable and6018
nontaxable charges for mobile telecommunications service are6019
aggregated, the charges for nontaxable mobile telecommunications6020
service shall be subject to taxation, unless the home service6021
provider can reasonably identify charges not subject to taxation6022
from its books and records that are kept in the regular course of6023
business.6024

       (D) The tax commissioner may provide a home service provider6025
with an electronic database that meets the requirements of 46026
U.S.C.A. 119. If such database is provided, a home service6027
provider shall be held harmless from any tax, charge, or fee6028
liability for errors or omissions due solely to reliance on the6029
data contained in the database, subject to 4 U.S.C.A. 119 and 121.6030
If no electronic database is provided by the commissioner, a home6031
service provider may use an enhanced zip code to assign each6032
street address to a specific taxing jurisdiction, and the provider6033
shall be held harmless from any tax, charge, or fee liability in6034
this state that otherwise would be due solely as a result of an6035
assignment of a street address to an incorrect taxing6036
jurisdiction, subject to 4 U.S.C.A. 120 and 121.6037

       (E) The tax commissioner shall require a home service6038
provider to obtain and maintain a customer's place of primary use6039
and shall allow the home service provider to rely on this address6040
as provided under 4 U.S.C.A. 122. The commissioner may correct6041
the place of primary use, or correct the assignment of a taxing6042
jurisdiction by a home service provider, in accordance with 46043
U.S.C.A. 121.6044

       Sec. 5739.05.  (A) The tax commissioner shall enforce and6045
administer sections 5739.01 to 5739.31 of the Revised Code, which6046
are hereby declared to be sections which the commissioner is6047
required to administer within the meaning of sections 5703.17 to6048
5703.37, 5703.39, 5703.41, and 5703.45 of the Revised Code. The6049
commissioner may adopt and promulgate, in accordance with sections6050
119.01 to 119.13 of the Revised Code, such rules as hethe6051
commissioner deems necessary to administer sections 5739.01 to6052
5739.31 of the Revised Code.6053

       (B) TheUpon application, the commissioner may authorize a6054
vendor to prepaypay on a predetermined basis the tax levied by or6055
pursuant to section 5739.02, 5739.021, 5739.023, or 5739.026 of6056
the Revised Code upon sales of things produced or distributed or6057
services provided by such vendor, and hethe commissioner may6058
waive the collection of the tax from the consumer; but no such6059
authority shall be granted or exercised except upon application to6060
the. The commissioner andshall not grant such authority unless6061
the commissioner finds that the conditions of the applicant's6062
business are such that the collection of the tax from the consumer6063
in the manner provided in sections 5739.01 to 5739.31 of the6064
Revised Code, would impose an unreasonable burden on the vendor;6065
nor shall the authority granted be exercised, nor the vendors6066
actually selling such products be exempted, from the other6067
provisions of sections 5739.01 to 5739.31 of the Revised Code,6068
unless thegranting of the authority would improve compliance and6069
increase the efficiency of the administration of the tax. The6070
person to whom such authority is granted prints plainly upon the6071
product sold or offered for sale, a statement that the tax has6072
been paid in advance, or otherwise conveys said information to the6073
consumer, by written notice. The commissioner may require6074
security to his satisfaction to be filed with him, in such amount6075
as he determines to be sufficient to secure the prepayment under6076
the provisions of this section of the taxes levied by or pursuant6077
to section 5739.02, 5739.021, 5739.023, or 5739.026 of the Revised6078
Code in the manner desiredshall post a notice, if required by the6079
commissioner, at the location where the product is offered for6080
sale that the tax is included in the selling price. The6081
comissioner may adopt rules to administer this division.6082

       (C) The commissioner may authorize a vendor to pay, on the6083
basis of a prearranged agreement under this division, the tax6084
levied by section 5739.02 or pursuant to section 5739.021,6085
5739.023, or 5739.026 of the Revised Code, and waive the6086
requirement that the vendor maintain the complete and accurate6087
record of individual taxable sales and tax collected thereon6088
required by section 5739.11 of the Revised Code, upon application6089
filed with him byof the vendor, if hethe commissioner finds that6090
the conditions of the vendor-applicant's business are such that6091
the maintenance of such records of individual taxable sales and6092
tax collected thereon would impose an unreasonable burden upon the6093
vendor. If the commissioner determines that such unreasonable6094
burden has been imposed, the vendor and the commissioner shall6095
agree to the terms and conditions of a test check to be conducted.6096
If the parties are unable to agree to the terms and conditions of6097
the test check, the application shall be denied. The test check6098
conducted shall determine the proportion that taxable retail sales6099
bear to all of histhe vendor's retail sales and the ratio which6100
the tax required to be collected under sections 5739.02, 5739.021,6101
and 5739.023 of the Revised Code bears to the receipts from the6102
vendor's taxable retail sales.6103

       The vendor shall collect the tax on histhe vendor's taxable6104
sales and histhe vendor's liability for collecting or remitting6105
shall be based upon the proportions and ratios established by the6106
test check, and not upon any other basis of determination, until6107
such time as a subsequent test check is made at the request of6108
either the vendor or the commissioner where either party believes6109
that the nature of the vendor's business has so changed as to make6110
the prior or existing test check no longer representative. The6111
commissioner may give notice to the vendor at any time that the6112
authorization is revoked or the vendor may notify the commissioner6113
that hethe vendor no longer elects to report under the6114
authorization. Such notice shall be delivered to the other party6115
personally or by registered mail. The revocation or cancellation6116
is not effective prior to the date of receipt of such notice.6117

       (D) The commissioner shall, for the audit of vendors' sales6118
tax accounts and records, employ a sufficient number of auditors,6119
not less than one auditor for each one thousand vendors'6120
certificates outstanding.6121

       Sec. 5739.07. (A) Where a vendor has paid taxes to the6122
treasurer of state or to the treasurer's agent pursuant to this6123
chapter, the tax commissioner shall refund to the vendor the6124
amount of taxes paid if the vendor has refunded to the consumer6125
the full amount of taxes the consumer paid illegally or6126
erroneously or if the vendor has illegally or erroneously billed6127
the consumer but has not collected the taxes from the consumer.6128

       (B) Where a consumer has paid taxes directly to the6129
treasurer of state or to the treasurer's agent pursuant to this6130
chapter and the payment or assessment was illegal or erroneous,6131
the tax commissioner shall refund to the consumer the full amount6132
of illegal or erroneous taxes paid.6133

       (C) The commissioner shall refund to the consumer taxes paid6134
illegally or erroneously to a vendor only if:6135

       (1) The commissioner has not refunded the tax to the vendor6136
and the vendor has not refunded the tax to the consumer; or6137

       (2) The consumer has received a refund from a manufacturer6138
or other person, other than the vendor, of the full purchase6139
price, but not the tax, paid to the vendor in settlement of a6140
complaint by the consumer about the property or service purchased.6141

       The commissioner may require the consumer to obtain or the6142
vendor to provide a written statement confirming that the vendor6143
has paid the tax to the treasurer or the treasurer's agent, has6144
not refunded the tax to the consumer, and has not filed an6145
application for refund of the tax with the commissioner.6146

       (D) An application for refund shall be filed with the tax6147
commissioner on the form prescribed by the commissioner within6148
four years from the date of the illegal or erroneous payment of6149
the tax, unless the vendor or consumer waives the time limitation6150
under division (A)(3) of section 5739.16 of the Revised Code. If6151
the time limitation is waived, the refund application period shall6152
be extended for the same period as the waiver.6153

       (E) On the filing of an application for a refund, the6154
commissioner shall determine the amount of refund to which the6155
applicant is entitled. If the amount is not less than that6156
claimed, the commissioner shall certify that amount to the6157
director of budget and management and the treasurer of state for6158
payment from the tax refund fund created by section 5703.052 of6159
the Revised Code. If the amount is less than that claimed, the6160
commissioner shall proceed in accordance with section 5703.70 of6161
the Revised Code.6162

       (F) When a refund is granted under this section, it shall6163
include interest thereon as provided by section 5739.132 of the6164
Revised Code.6165

       Sec. 5739.104.  The tax commissioner shall refund to a person6166
subject to a tax under section 5739.101 of the Revised Code the6167
amount of taxes paid illegally or erroneously or paid on an6168
illegal or erroneous assessment. Applications for a refund shall6169
be filed with the commissioner, on a form prescribed by himthe6170
commissioner, within four years from the date of the illegal or6171
erroneous payment of the tax, except where the person subject to6172
the tax waives the time limitation under division (C) of section6173
5739.16 of the Revised Code, in which case the four-year refund6174
limitation shall be extended for the same period of time as the6175
waiver. On6176

       On the filing of an application for a refund, the6177
commissioner shall determine the amount of refund due andto which6178
the applicant is entitled. If the amount is not less than that6179
claimed, the commissioner shall certify thatthe amount to the6180
treasurer of state for payment from the current resort area excise6181
tax receipts of the municipal corporation or township from which6182
the refund is due. WhenIf the amount is less than that claimed,6183
the commissioner shall proceed in accordance with section 5703.706184
of the Revised Code.6185

       If a refund is granted for payment of an illegal or erroneous6186
assessment issued by the commissioner, the refund shall include6187
interest computed at the rate per annum prescribed under section6188
5703.47 of the Revised Code.6189

       Sec. 5739.13.  (A) If any vendor collects the tax imposed by6190
or pursuant to section 5739.02, 5739.021, 5739.023, or 5739.026 of6191
the Revised Code, and fails to remit the tax to the state as6192
prescribed, or on the sale of a motor vehicle, watercraft, or6193
outboard motor required to be titled, fails to remit payment to a6194
clerk of a court of common pleas as provided in section 1548.06 or6195
4505.06 of the Revised Code, the vendor shall be personally liable6196
for any tax collected and not remitted. The tax commissioner may6197
make an assessment against such vendor based upon any information6198
in the commissioner's possession.6199

       If any vendor fails to collect the tax or any consumer fails6200
to pay the tax imposed by or pursuant to section 5739.02,6201
5739.021, 5739.023, or 5739.026 of the Revised Code, on any6202
transaction subject to the tax, the vendor or consumer shall be6203
personally liable for the amount of the tax applicable to the6204
transaction. The commissioner may make an assessment against6205
either the vendor or consumer, as the facts may require, based6206
upon any information in the commissioner's possession.6207

       An assessment against a vendor when the tax imposed by or6208
pursuant to section 5739.02, 5739.021, 5739.023, or 5739.026 of6209
the Revised Code has not been collected or paid, shall not6210
discharge the purchaser's or consumer's liability to reimburse the6211
vendor for the tax applicable to such transaction.6212

       An assessment issued against either, pursuant to this6213
section, shall not be considered an election of remedies, nor a6214
bar to an assessment against the other for the tax applicable to6215
the same transaction, provided that no assessment shall be issued6216
against any person for the tax due on a particular transaction if6217
the tax on that transaction actually has been paid by another.6218

       The commissioner may make an assessment against any vendor6219
who fails to file a return or remit the proper amount of tax6220
required by this chapter, or against any consumer who fails to pay6221
the proper amount of tax required by this chapter. When6222
information in the possession of the commissioner indicates that6223
the amount required to be collected or paid under this chapter is6224
greater than the amount remitted by the vendor or paid by the6225
consumer, the commissioner may audit a sample of the vendor's6226
sales or the consumer's purchases for a representative period, to6227
ascertain the per cent of exempt or taxable transactions or the6228
effective tax rate and may issue an assessment based on the audit.6229
The commissioner shall make a good faith effort to reach agreement6230
with the vendor or consumer in selecting a representative sample6231
period.6232

       The tax commissioner may make an assessment, based on any6233
information in his possession, against any person who fails to6234
file a return or remit the proper amount of tax required by6235
section 5739.102 of the Revised Code.6236

       The tax commissioner may issue an assessment on any6237
transaction for which any tax imposed under this chapter or6238
Chapter 5741. of the Revised Code was due and unpaid on the date6239
the vendor or consumer was informed by an agent of the tax6240
commissioner of an investigation or audit. If the vendor or6241
consumer remits any payment of the tax for the period covered by6242
the assessment after the vendor or consumer was informed of the6243
investigation or audit, the payment shall be credited against the6244
amount of the assessment.6245

       The commissioner shall give the party assessed written notice6246
of the assessment asin the manner provided in section 5703.37 of6247
the Revised Code. With the notice, the commissioner shall provide6248
instructions on how to petition for reassessment and request a6249
hearing on the petition.6250

       (B) Unless the party to whom the notice of assessment is6251
directedassessed files with the commissioner within sixty days6252
after service of the notice of assessment, either personally or by6253
certified mail, a written petition for reassessment in writing,6254
signed by the party assessed, or by thethat party's authorized6255
agent having knowledge of the facts, the assessment shall become6256
becomes final and the amount of the assessment shall beis due6257
from the party assessed and payable to the treasurer of state and6258
remitted to the tax commissioner. The petition shall indicate the6259
objections of the party assessed, but additional objections may be6260
raised in writing if received by the commissioner prior to the6261
date shown on the final determination by the commissioner.6262

       Unless the petitioner waives a hearing, the commissioner6263
shall assign a time and place for the hearing on the petition and6264
notify the petitioner of the time and place of the hearing by6265
personal service or certified mail, but the commissioner may6266
continue the hearing from time to time if necessary.6267

       The commissioner may make such correction to the assessment6268
as the commissioner finds proper. The commissioner shall serve a6269
copy of the commissioner's final determination on the petitioner6270
by personal service or certified mail, and the commissioner's6271
decision in the matter shall be final, subject to appeal as6272
provided in section 5717.02 of the Revised Code. Only objections6273
decided on the merits by the board of tax appeals or a court shall6274
be given collateral estoppel or res judicata effect in considering6275
an application for refund of amounts paid pursuant to the6276
assessment. If the petition has been properly filed, the6277
commissioner shall proceed under section 5703.60 of the Revised6278
Code.6279

       (C) After an assessment becomes final, if any portion of the6280
assessment remains unpaid, including accrued interest, a certified6281
copy of the commissioner's entry making the assessment final may6282
be filed in the office of the clerk of the court of common pleas6283
in the county in which the place of business of the party assessed6284
is located or the county in which the party assessed resides. If6285
the party assessed maintains no place of business in this state6286
and is not a resident of this state, the certified copy of the6287
entry may be filed in the office of the clerk of the court of6288
common pleas of Franklin county.6289

       The clerk, immediatelyImmediately upon the filing of such6290
the entry, the clerk shall enter a judgment for the state against6291
the party assessed in the amount shown on the entry. The judgment6292
may be filed by the clerk in a loose-leaf book entitled "special6293
judgments for state, county, and transit authority retail sales6294
tax" or, if appropriate, "special judgments for resort area excise6295
tax," and shall have the same effect as other judgments. Execution6296
shall issue upon the judgment upon the request of the tax6297
commissioner, and all laws applicable to sales on execution shall6298
apply to sales made under the judgment except as otherwise6299
provided in this chapter.6300

       The portion of the assessment not paid within sixty days6301
after the date the assessment was issued shall bear interest at6302
the rate per annum prescribed by section 5703.47 of the Revised6303
Code from the day the tax commissioner issues the assessment until6304
the assessment is paid. Interest shall be paid in the same manner6305
as the tax and may be collected by issuing an assessment under6306
this section.6307

       (D) All money collected by the tax commissioner under this6308
section shall be paid to the treasurer of state, and when paid6309
shall be considered as revenue arising from the taxes imposed by6310
or pursuant to sections 5739.01 to 5739.31 of the Revised Code.6311

       Sec. 5739.17.  (A) No person shall engage in making retail6312
sales subject to a tax imposed by or pursuant to section 5739.02,6313
5739.021, 5739.023, or 5739.026 of the Revised Code as a business6314
without having a license therefor, except as otherwise provided in6315
divisions (A)(1), (2), and (3) of this section.6316

       (1) In the dissolution of a partnership by death, the6317
surviving partner may operate under the license of the partnership6318
for a period of sixty days.6319

       (2) The heirs or legal representatives of deceased persons,6320
and receivers and trustees in bankruptcy, appointed by any6321
competent authority, may operate under the license of the person6322
so succeeded in possession.6323

       (3) Two or more persons who are not partners may operate a6324
single place of business under one license. In such case neither6325
the retirement of any such person from business at that place of6326
business, nor the entrance of any person, under an existing6327
arrangement, shall affect the license or require the issuance of a6328
new license, unless the person retiring from the business is the6329
individual named on the vendor's license.6330

       Except as otherwise provided in this section, each applicant6331
for a license shall make out and deliver to the county auditor of6332
each county in which the applicant desires to engage in business,6333
upon a blank to be furnished by such auditor for that purpose, a6334
statement showing the name of the applicant, each place of6335
business in the county where the applicant will make retail sales,6336
the nature of the business, and any other information the tax6337
commissioner reasonably prescribes in the form of a statement6338
prescribed by the commissioner.6339

       At the time of making the application, the applicant shall6340
pay into the county treasury a license fee in the sum of6341
twenty-five dollars for each fixed place of business in the county6342
wherethat will be the situs of retail sales will be consummated.6343
Upon receipt of the application and exhibition of the county6344
treasurer's receipt, showing the payment of the license fee, the6345
county auditor shall issue to the applicant a license for each6346
fixed place of business designated in the application, authorizing6347
the applicant to engage in business at that location. If a6348
vendor's identity changes, the vendor shall apply for a new6349
license. If a vendor wishes to move an existing fixed place of6350
business to a new location within the same county, the vendor6351
shall obtain a new vendor's license or submit a request to the tax6352
commissioner to transfer the existing vendor's license to the new6353
location. When the new location has been verified as being within6354
the same county, the tax commissioner shall authorize the transfer6355
and notify the county auditor of the change of location. If a6356
vendor wishes to move an existing fixed place of business to6357
another county, the vendor's license shall not transfer and the6358
vendor shall obtain a new vendor's license from the county in6359
which the business is to be located. The form of the license6360
shall be prescribed by the commissioner. The fees collected shall6361
be credited to the general fund of the county.6362

       A vendor that makes retail sales subject to tax under Chapter6363
5739. of the Revised Code pursuant to a permit issued by the6364
division of liquor control shall obtain a vendor's license in the6365
identical name and for the identical address as shown on the6366
permit.6367

       Except as otherwise provided in this section, if a vendor has6368
no fixed place of business and sells from a vehicle, each vehicle6369
intended to be used within a county constitutes a place of6370
business for the purpose of this section.6371

       (B) As used in this division, "transient vendor" means any6372
person who makes sales of tangible personal property from vending6373
machines located on land owned by others, who leases titled motor6374
vehicles, titled watercraft, or titled outboard motors, or who, in6375
the usual course of the person's business, transports inventory,6376
stock of goods, or similar tangible personal property to a6377
temporary place of business or temporary exhibition, show, fair,6378
flea market, or similar event in a county in which the person has6379
no fixed place of business, for the purpose of making retail sales6380
of such property. A "temporary place of business" means any6381
public or quasi-public place including, but not limited to, a6382
hotel, rooming house, storeroom, building, part of a building,6383
tent, vacant lot, railroad car, or motor vehicle that is6384
temporarily occupied for the purpose of making retail sales of6385
goods to the public. A place of business is not temporary if the6386
same person conducted business at the place continuously for more6387
than six months or occupied the premises as the person's permanent6388
residence for more than six months, or if the person intends it to6389
be a fixed place of business.6390

       Any transient vendor, in lieu of obtaining a vendor's license6391
under division (A) of this section for counties in which the6392
transient vendor has no fixed place of business, may apply to the6393
tax commissioner, on a form prescribed by the commissioner, for a6394
transient vendor's license. The transient vendor's license6395
authorizes the transient vendor to make retail sales in any county6396
in which the transient vendor does not maintain a fixed place of6397
business. Any holder of a transient vendor's license shall not be6398
required to obtain a separate vendor's license from the county6399
auditor in that county. Upon the tax commissioner's determination6400
that an applicant is a transient vendor, the applicant shall pay a6401
license fee in the amount of twenty-five dollars, at which time6402
the tax commissioner shall issue the license. The tax6403
commissioner may require a vendor to be licensed as a transient6404
vendor if, in the opinion of the commissioner, such licensing is6405
necessary for the efficient administration of the tax.6406

       Any holder of a valid transient vendor's license may make6407
retail sales at a temporary place of business or temporary6408
exhibition, show, fair, flea market, or similar event, held6409
anywhere in the state without complying with any provision of6410
section 311.37 of the Revised Code. Any holder of a valid6411
vendor's license may make retail sales as a transient vendor at a6412
temporary place of business or temporary exhibition, show, fair,6413
flea market, or similar event held in any county in which the6414
vendor maintains a fixed place of business for which the vendor6415
holds a vendor's license without obtaining a transient vendor's6416
license.6417

       (C) As used in this division, "service vendor" means any6418
person who, in the usual course of the person's business, sells6419
services described in division (B)(3)(e), (f), (g), (h), (i), (j),6420
(k), (l), or (m) of section 5739.01 of the Revised Code.6421

       Every service vendor shall make application to the tax6422
commissioner for a service vendor's license. Each applicant shall6423
pay a license fee in the amount of twenty-five dollars. Upon the6424
commissioner's determination that an applicant is a service vendor6425
and payment of the fee, the commissioner shall issue the applicant6426
a service vendor's license.6427

       Only sales described in division (B)(3)(e), (f), (g), (h),6428
(i), (j), (k), (l), or (m) of section 5739.01 of the Revised Code6429
may be made under authority of a service vendor's license, and6430
that license authorizes sales to be made at any place in this6431
state. Any service vendor who makes sales of other services or6432
tangible personal property subject to the sales tax also shall be6433
licensed under division (A), (B), or (D) of this section.6434

       (D) As used in this division, "delivery vendor" means any6435
vendor who engages in one or more of the activities described in6436
divisions (D)(1) to (4) of this section, and who maintains no6437
store, showroom, or similar fixed place of business or other6438
location where merchandise regularly is offered for sale or6439
displayed or shown in catalogs for selection or pick-up by6440
consumers, or where consumers bring goods for repair or other6441
service.6442

       (1) The vendor makes retail sales of tangible personal6443
property;6444

       (2) The vendor rents or leases, at retail, tangible personal6445
property, except titled motor vehicles, titled watercraft, or6446
titled outboard motors;6447

       (3) The vendor provides a service, at retail, described in6448
division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the6449
Revised Code; or6450

       (4) The vendor makes retail sales of warranty, maintenance6451
or service contracts, or similar agreements as described in6452
division (B)(7) of section 5739.01 of the Revised Code.6453

       A transient vendor or a seller registered pursuant to section6454
5741.17 of the Revised Code is not a delivery vendor.6455

       Delivery vendors shall apply to the tax commissioner, on a6456
form prescribed by the commissioner, for a delivery vendor's6457
license. Each applicant shall pay a license fee of twenty-five6458
dollars for each delivery vendor's license, to be credited to the6459
general revenue fund. Upon the commissioner's determination that6460
the applicant is a delivery vendor, the commissioner shall issue6461
the license. A delivery vendor's license authorizes retail sales6462
to be made throughout the state. All sales of the vendor must be6463
reported under the delivery license. The commissioner may require6464
a vendor to be licensed as a delivery vendor if, in the opinion of6465
the commissioner, such licensing is necessary for the efficient6466
administration of the tax. The commissioner shall not issue a6467
delivery vendor license to a vendor who holds a license issued6468
under division (A) of this section.6469

       (E) Any transient vendor who is issued a license pursuant to6470
this section shall display the license or a copy of it6471
prominently, in plain view, at every place of business of the6472
transient vendor. Every owner, organizer, or promoter who6473
operates a fair, flea market, show, exhibition, convention, or6474
similar event at which transient vendors are present shall keep a6475
comprehensive record of all such vendors, listing the vendor's6476
name, permanent address, vendor's license number, and the type of6477
goods sold. Such records shall be kept for four years and shall6478
be open to inspection by the tax commissioner.6479

       Sec. 5739.31.  (A)(1) No person shall engage in the business6480
of selling at retail or sell at retail incidental to any other6481
regularly conducted business without having a license therefor, as6482
required by sections 5739.01 to 5739.31 of the Revised Code.6483

       (2) No person shall engage in the business of selling at6484
retail as a transient vendor, as defined in division (B) of6485
section 5739.17 of the Revised Code, without first having obtained6486
a license as required by that section.6487

       (3) No person shall engage in the business of selling at6488
retail as a limited vendor as defined in division (B) of section6489
5739.17 of the Revised Code, without first having a license as6490
required by that section.6491

       (B) No person shall continue to engage in the business of6492
selling at retail or sell at retail incidental to any other6493
regularly conducted business after the license issued to that6494
person pursuant to section 5739.17 of the Revised Code has been6495
revoked under section 5739.19 of the Revised Code or while the6496
license is suspended by the tax commissioner under division (B)(2)6497
of section 5739.30 of the Revised Code, nor shall any person6498
obtain a new license from the county auditor or the tax6499
commissioner while such revocation or suspension is in effect. If6500
a corporation's license has been revoked or suspended, none of its6501
officers, or employees having control or supervision of or charged6502
with the responsibility of filing returns and making payments of6503
tax due, shall obtain a license from the county auditor or the tax6504
commissioner during the period of such revocation or suspension.6505

       Sec. 5739.99.  (A) Whoever violates section 5739.26 or6506
5739.29 of the Revised Code shall be fined not less than6507
twenty-five nor more than one hundred dollars for a first offense;6508
for each subsequent offense such person shall, if a corporation,6509
be fined not less than one hundred nor more than five hundred6510
dollars, or if an individual, or a member of a partnership, firm,6511
or association, be fined not less than twenty-five nor more than6512
one hundred dollars, or imprisoned not more than sixty days, or6513
both.6514

       (B) Whoever violates division (A) of section 5739.30 of the6515
Revised Code shall be fined not less than one hundred nor more6516
than one thousand dollars, or imprisoned not more than sixty days,6517
or both.6518

       (C)(1) Whoever violates division (A)(1) of section 5739.316519
of the Revised Code shall be fined not less than twenty-five nor6520
more than one hundred dollars. If the offender previously has6521
been convicted of a violation of division (A)(1) of section6522
5739.31 of the Revised Code, hethe offender is guilty of a felony6523
of the fourth degree.6524

       (2) Whoever violates division (A)(2) of section 5739.31 of6525
the Revised Code shall be fined not less than one hundred dollars6526
nor more than five hundred dollars, or imprisoned for not more6527
than ten days, or both, for the first offense; for each subsequent6528
offense, each such person shall be fined not less than one6529
thousand dollars nor more than twenty-five hundred dollars, or6530
imprisoned not more than thirty days, or both. The motor vehicles6531
and goods of any person charged with violating division (A)(2) of6532
section 5739.31 of the Revised Code may be impounded and held6533
pending the disposition of the charge, and may be sold at auction6534
by the county sheriff in the manner prescribed by law to satisfy6535
any fine imposed by this division.6536

       (3) Whoever violates division (A)(3) of section 5739.31 of6537
the Revised Code shall be fined not less than twenty-five nor more6538
than one hundred dollars.6539

       (4) Whoever violates division (B) of section 5739.31 of the6540
Revised Code is guilty of a felony of the fourth degree. Each day6541
that business is conducted while a vendor's license is suspended6542
or revoked constitutes a separate offense.6543

       (D) Except as otherwise provided in this section, whoever6544
violates sections 5739.01 to 5739.31 of the Revised Code, or any6545
lawful rule promulgated by the department of taxation under6546
authority of such sections, shall be fined not less than6547
twenty-five nor more than one hundred dollars.6548

       (E) Whoever violates section 5739.12 of the Revised Code by6549
failing to remit to the state the tax collected under section6550
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code is6551
guilty of a felony of the fourth degree and shall suffer the loss6552
of histhe person's vendor's license as required by section6553
5739.17 of the Revised Code. A person shall not be eligible for a6554
vendor's license for two years following conviction.6555

       (F) Whoever violates division (D)(E) of section 5739.17 of6556
the Revised Code is guilty of failure to display a transient or6557
limited vendor's license, a minor misdemeanor. A sheriff or6558
police officer in a municipal corporation may enforce this6559
division. The prosecuting attorney of a county shall inform the6560
tax commissioner of any instance when a complaint is brought6561
against a transient or limited vendor pursuant to this division.6562

       (G) Whoever violates section 5739.103 of the Revised Code6563
shall be fined not less than twenty-five nor more than one hundred6564
dollars. If the offender previously has been convicted of6565
violating that section, hethe offender is guilty of a felony of6566
the fourth degree.6567

       (H) The penalties provided in this section are in addition6568
to any penalties imposed by the tax commissioner under section6569
5739.133 of the Revised Code.6570

       Sec. 5741.01.  As used in this chapter:6571

       (A) "Person" includes individuals, receivers, assignees,6572
trustees in bankruptcy, estates, firms, partnerships,6573
associations, joint-stock companies, joint ventures, clubs,6574
societies, corporations, business trusts, governments, and6575
combinations of individuals of any form.6576

       (B) "Storage" means and includes any keeping or retention in6577
this state for use or other consumption in this state.6578

       (C) "Use" means and includes the exercise of any right or6579
power incidental to the ownership of the thing used. A thing is6580
also "used" in this state if its consumer gives or otherwise6581
distributes it, without charge, to recipients in this state.6582

       (D) "Purchase" means acquired or received for a6583
consideration, whether such acquisition or receipt was effected by6584
a transfer of title, or of possession, or of both, or a license to6585
use or consume; whether such transfer was absolute or conditional,6586
and by whatever means the transfer was effected; and whether the6587
consideration was money, credit, barter, or exchange. Purchase6588
includes production, even though the article produced was used,6589
stored, or consumed by the producer. The transfer of copyrighted6590
motion picture films for exhibition purposes is not a purchase,6591
except such films as are used solely for advertising purposes.6592

       (E) "Seller" means the person from whom a purchase is made,6593
and includes every person engaged in this state or elsewhere in6594
the business of selling tangible personal property or providing a6595
service for storage, use, or other consumption or benefit in this6596
state; and when, in the opinion of the tax commissioner, it is6597
necessary for the efficient administration of this chapter, to6598
regard any salesman, representative, peddler, or canvasser as the6599
agent of a dealer, distributor, supervisor, or employer under whom6600
hethe person operates, or from whom hethe person obtains6601
tangible personal property, sold by himthe person for storage,6602
use, or other consumption in this state, irrespective of whether6603
or not hethe person is making such sales on histhe person's own6604
behalf, or on behalf of such dealer, distributor, supervisor, or6605
employer, the commissioner may regard himthe person as such6606
agent, and may regard such dealer, distributor, supervisor, or6607
employer as the seller. "Seller" does not include any person to6608
the extent the person provides a communications medium, such as,6609
but not limited to, newspapers, magazines, radio, television, or6610
cable television, by means of which sellers solicit purchases of6611
their goods or services.6612

       (F) "Consumer" means any person who has purchased tangible6613
personal property or has been provided a service for storage, use,6614
or other consumption or benefit in this state. "Consumer" does not6615
include a person who receives, without charge, tangible personal6616
property or a service.6617

       A person who performs a facility management or similar6618
service contract for a contractee is a consumer of all tangible6619
personal property and services purchased for use in connection6620
with the performance of such contract, regardless of whether title6621
to any such property vests in the contractee. The purchase of6622
such property and services is not subject to the exception for6623
resale under division (E)(1) of section 5739.01 of the Revised6624
Code.6625

       (G)(1) "Price," except in the case of watercraft, outboard6626
motors, or new motor vehicles, means the aggregate value in money6627
of anything paid or delivered, or promised to be paid or6628
delivered, by a consumer to a seller in the complete performance6629
of the transaction by which tangible personal property has been6630
purchased or a service has been provided for storage, use, or6631
other consumption or benefit in this state, without any deduction6632
or exclusion on account of the cost of the property sold, cost of6633
materials used, labor or service cost, interest, discount paid or6634
allowed after the sale is consummated, or any other expense. If6635
the transaction consists of the rental or lease of tangible6636
personal property, "price" means the aggregate value in money of6637
anything paid or delivered, or promised to be paid or delivered by6638
the lessee to the lessor, in the complete performance of the6639
rental or lease, without any deduction or exclusion of tax,6640
interest, labor or service charge, damage liability waiver,6641
termination or damage charge, discount paid or allowed after the6642
lease is consummated, or any other expense. The tax shall be6643
calculated and collected by the lessor on each payment made by the6644
lessee. If a consumer produces the tangible personal property6645
used by himthe consumer, the price is the produced cost of such6646
tangible personal property. The tax collected by the seller from6647
the consumer under such sections is not a part of the price, but6648
is a tax collection for the benefit of the state, and of counties6649
levying an additional use tax pursuant to section 5741.021 or6650
5741.023 of the Revised Code and of transit authorities levying an6651
additional use tax pursuant to section 5741.022 of the Revised6652
Code and, except for the discount authorized under section 5741.126653
of the Revised Code and the effects of any rounding pursuant to6654
section 5703.055 of the Revised Code, no person other than the6655
state or such a county or transit authority shall derive any6656
benefit from the collection or payment of such tax.6657

       (2) In the case of watercraft, outboard motors, or new motor6658
vehicles, "price" has the same meaning as in division (H) of6659
section 5739.01 of the Revised Code.6660

       (3) In the case of a nonresident business consumer that6661
purchases and uses tangible personal property outside this state6662
and subsequently temporarily stores, uses, or otherwise consumes6663
such tangible personal property in the conduct of business in this6664
state, the consumer or the tax commissioner may determine the6665
price based on the value of the temporary storage, use, or other6666
consumption, in lieu of determining the price pursuant to division6667
(G)(1) of this section. A price determination made by the6668
consumer is subject to review and redetermination by the6669
commissioner.6670

       (4) In the case of tangible personal property held in this6671
state as inventory for sale or lease, and that is temporarily6672
stored, used, or otherwise consumed in a taxable manner, the price6673
is the value of the temporary use. A price determination made by6674
the consumer is subject to review and redetermination by the6675
commissioner.6676

       (5) In the case of tangible personal property originally6677
purchased and used by the consumer outside this state, and that6678
becomes permanently stored, used, or otherwise consumed in this6679
state more than six months after its acquisition by the consumer,6680
the consumer or the tax commissioner may determine the price based6681
on the current value of such tangible personal property, in lieu6682
of determining the price pursuant to division (G)(1) of this6683
section. A price determination made by the consumer is subject to6684
review and redetermination by the commissioner.6685

       (H) "Nexus with this state" means that the seller engages in6686
continuous and widespread solicitation of purchases from residents6687
of this state or otherwise purposefully directs its business6688
activities at residents of this state.6689

       (I) "Substantial nexus with this state" means that the seller6690
has sufficient contact with this state, in accordance with Section6691
8 of Article I of the Constitution of the United States, to allow6692
the state to require the seller to collect and remit use tax on6693
sales of tangible personal property or services made to consumers6694
in this state. "Substantial nexus with this state" exists when the6695
seller does any of the following:6696

       (1) Maintains a place of business within this state, whether6697
operated by employees or agents of the seller, by a member of an6698
affiliated group, as described in division (B)(3)(e) of section6699
5739.01 of the Revised Code, of which the seller is a member, or6700
by a franchisee using a trade name of the seller;6701

       (2) Regularly has employees, agents, representatives,6702
solicitors, installers, repairmen, salesmen, or other individuals6703
in this state for the purpose of conducting the business of the6704
seller;6705

       (3) Uses a person in this state for the purpose of receiving6706
or processing orders of the seller's goods or services;6707

       (4) Makes regular deliveries of tangible personal property6708
into this state by means other than common carrier;6709

       (5) Has membership in an affiliated group, as described in6710
division (B)(3)(e) of section 5739.01 of the Revised Code, at6711
least one other member of which has substantial nexus with this6712
state;6713

       (6) Owns tangible personal property that is rented or leased6714
to a consumer in this state, or offers tangible personal property,6715
on approval, to consumers in this state;6716

       (7) Is registered with the secretary of state to do business6717
in this state or is registered or licensed by any state agency,6718
board, or commission to transact business in this state or to make6719
sales to persons in this state;6720

       (8) Has any other contact with this state that would allow6721
this state to require the seller to collect and remit use tax6722
under Section 8 of Article I of the Constitution of the United6723
States.6724

       (J) "Fiscal officer" means, with respect to a regional6725
transit authority, the secretary-treasurer thereof, and with6726
respect to a county which is a transit authority, the fiscal6727
officer of the county transit board appointed pursuant to section6728
306.03 of the Revised Code or, if the board of county6729
commissioners operates the county transit system, the county6730
auditor.6731

       (K) "Territory of the transit authority" means all of the6732
area included within the territorial boundaries of a transit6733
authority as they from time to time exist. Such territorial6734
boundaries must at all times include all the area of a single6735
county or all the area of the most populous county which is a part6736
of such transit authority. County population shall be measured by6737
the most recent census taken by the United States census bureau.6738

       (L) "Transit authority" means a regional transit authority6739
created pursuant to section 306.31 of the Revised Code or a county6740
in which a county transit system is created pursuant to section6741
306.01 of the Revised Code. For the purposes of this chapter, a6742
transit authority must extend to at least the entire area of a6743
single county. A transit authority which includes territory in6744
more than one county must include all the area of the most6745
populous county which is a part of such transit authority. County6746
population shall be measured by the most recent census taken by6747
the United States census bureau.6748

       (M) "Providing a service" has the same meaning as in division6749
(X) of section 5739.01 of the Revised Code.6750

       (N) "Other consumption" includes receiving the benefits of a6751
service.6752

       Sec. 5741.10. Refunds of taxes paid pursuant to this chapter6753
by a seller or consumer illegally or erroneously shall be made in6754
the same manner as refunds are made to a vendor or consumer under6755
section 5739.07 of the Revised Code.6756

       Sec. 5741.13.  If any person required by section 5741.12 of6757
the Revised Code to make a return to the tax commissioner fails to6758
make such return at the time required by or under authority of6759
such section, the commissioner may make an assessment against such6760
person, based upon any information within histhe commissioner's6761
possession. If information in the possession of the commissioner6762
indicates that the tax paid by any consumer is less than that due,6763
the commissioner may audit a sample of that consumer's purchases6764
for a representative period and may issue an assessment based6765
thereon. The commissioner shall make a good faith effort to reach6766
agreement with the consumer in selecting a representative sample6767
period. The commissioner shall give to such person written notice6768
of suchthe assessment. Such notice may be served upon such6769
person personally, or by certified mailas provided in section6770
5703.37 of the Revised Code.6771

       If information in the possession of the commissioner6772
indicates that the tax paid by any consumer is less than that due,6773
the commissioner may audit a representative sample of that6774
consumer's purchases and may issue an assessment based thereon.6775
The commissioner shall make a good faith effort to reach agreement6776
with the consumer on selecting a representative sample.6777

       If information in the possession of the commissioner6778
indicates that the amount required to be collected or paid under6779
this chapter is greater than the amount remitted by the seller,6780
the commissioner may audit a representative sample of the seller's6781
sales to determine the per cent of exempt or taxable transactions6782
or the effective tax rate and may issue an assessment based on the6783
audit. The commissioner shall make a good faith effort to reach6784
agreement with the seller in selecting a representative sample.6785

       Sec. 5743.05.  All stamps provided for by section 5743.03 of6786
the Revised Code, when procured by the tax commissioner, shall be6787
immediately delivered to the treasurer of state, who shall execute6788
a receipt therefor showing the number and aggregate face value of6789
each denomination received by the treasurer of state and any other6790
information that the commissioner requires to enforce the6791
collection and distribution of all taxes imposed under section6792
5743.024 or 5743.026 of the Revised Code, and deliver the receipt6793
to the commissioner. The treasurer of state shall sell the stamps6794
and, on the fifth day of each month, make a report showing all6795
sales made during the preceding month, with the names of6796
purchasers, the number of each denomination, the aggregate face6797
value purchased by each, and any other information as the6798
commissioner requires to enforce the collection and distribution6799
of all taxes imposed under section 5743.024 of the Revised Code,6800
and deliver it to the commissioner. The treasurer of state shall6801
be accountable for all stamps received and unsold. The stamps6802
shall be sold and accounted for at their face value, except the6803
commissioner shall, by rule certified to the treasurer of state,6804
authorize the sale of stamps and meter impressions to wholesale or6805
retail dealers in this state, or to wholesale dealers outside this6806
state, at a discount of not less than three and six-tenths per6807
cent or more than ten per cent of their face value, as a6808
commission for affixing and canceling the stamps or meter6809
impressions.6810

       The tax commissioner, by rule certified to the treasurer of6811
state, shall authorize the delivery of stamps and meter6812
impressions to wholesale and retail dealers in this state and to6813
wholesale dealers outside this state on credit when the purchaser6814
files with the commissioner a bond to the state in the amount and6815
in the form prescribed by the commissioner, and with surety to the6816
satisfaction of the treasurer of state, conditioned on payment to6817
the treasurer of state within thirty days for stamps or meter6818
impressions delivered within that time. The tax commissioner6819
shall limit delivery of stamps and meter impressions on credit to6820
the period running from the first day of July of the fiscal year6821
until the first day of the following May. Any discount allowed as6822
a commission for affixing and canceling stamps or meter6823
impressions shall be allowed with respect to sales of stamps and6824
meter impressions on credit.6825

       The treasurer of state shall redeem and pay for any6826
destroyed, unused, or spoiled tax stamps and any unused meter6827
impressions at their net value, and he shall refund to wholesale6828
dealers the net amount of state and county taxes paid erroneously6829
or paid on cigarettes whichthat have been sold in interstate or6830
foreign commerce or whichthat have become unsalable, and the net6831
amount of county taxes that were paid on cigarettes that have been6832
sold at retail or for retail sale outside a taxing county. An6833

       An application for a refund of tax shall be filed with the6834
tax commissioner, on the form prescribed by the commissioner for6835
that purpose, within three years from the date the tax stamps are6836
destroyed or spoiled, from the date of the erroneous payment, or6837
from the date that cigarettes on which taxes have been paid have6838
been sold in interstate or foreign commerce or have become6839
unsalable. On6840

       On the filing of the application, the commissioner shall6841
determine the amount of refund, to which the applicant is entitled6842
payable from receipts of the state tax, and, if applicable,6843
payable from receipts of a county tax and. If the amount is not6844
less than that claimed, the commissioner shall certify such6845
amountsthe amount to the director of budget and management and6846
treasurer of state for payment from the tax refund fund created by6847
section 5703.052 of the Revised Code. WhenIf the amount is less6848
than that claimed, the commissioner shall proceed in accordance6849
with section 5703.70 of the Revised Code.6850

       If a refund is granted for payment of an illegal or erroneous6851
assessment issued by the department, the refund shall include6852
interest on the amount of the refund from the date of the6853
overpayment. The interest shall be computed at the rate per annum6854
prescribed by section 5703.47 of the Revised Code.6855

       Sec. 5743.081.  (A) If any wholesale dealer or retail dealer6856
fails to pay the tax levied under sections 5743.02, 5743.023,6857
5743.024, or 5743.026 of the Revised Code as required by sections6858
5743.01 to 5743.20 of the Revised Code, and by the rules of the6859
tax commissioner, or fails to collect the tax from the purchaser6860
or consumer, the commissioner may make an assessment against the6861
wholesale or retail dealer based upon any information in the6862
commissioner's possession.6863

       The commissioner may make an assessment against any wholesale6864
or retail dealer who fails to file a return required by section6865
5743.03 or 5743.025 of the Revised Code.6866

       No assessment shall be made against any wholesale or retail6867
dealer for any taxes imposed under sections 5743.02, 5743.023,6868
5743.024, or 5743.026 of the Revised Code more than three years6869
after the last day of the calendar month whichthat immediately6870
follows the semiannual period prescribed in section 5743.03 of the6871
Revised Code in which the sale was made, or more than three years6872
after the semiannual return for such period is filed, whichever is6873
later. This section does not bar an assessment against any6874
wholesale or retail dealer who fails to file a return as required6875
by section 5743.025 or 5743.03 or 5743.025 of the Revised Code, or6876
who files a fraudulent return.6877

       A penalty of up to thirty per cent may be added to the amount6878
of every assessment made under this section. The commissioner may6879
adopt rules providing for the imposition and remission of6880
penalties added to assessments made under this section.6881

       The commissioner shall give the party assessed written notice6882
of the assessment asin the manner provided in section 5703.37 of6883
the Revised Code. The notice shall specify separately any portion6884
of the assessment that represents a county tax. With the notice,6885
the commissioner shall provide instructions on how to petition for6886
reassessment and request a hearing on the petition.6887

       (B) Unless the party to whom the notice of assessment is6888
directedassessed files with the tax commissioner within sixty6889
days after service of the notice of assessment, either personally6890
or by certified mail, a written petition for reassessment in6891
writing, signed by the party assessed, or by the that party's6892
authorized agent having knowledge of the facts, the assessment6893
shall becomebecomes final and the amount of the assessment shall6894
beis due and payable from the party assessed to the treasurer of6895
state. The petition shall indicate the objections of the party6896
assessed, but additional objections may be raised in writing if6897
received by the commissioner prior to the date shown on the final6898
determination by the commissioner.6899

       Unless the petitioner waives a hearing, the commissioner6900
shall assign a time and place for the hearing on the petition and6901
notify the petitioner of the time and place of the hearing by6902
personal service or certified mail, but the commissioner may6903
continue the hearing from time to time if necessary.6904

       The commissioner may make such correction to an assessment as6905
the commissioner finds proper. The commissioner shall serve a6906
copy of the final determination on the petitioner by personal6907
service or certified mail, and the commissioner's decision in the6908
matter shall be final, subject to appeal as provided in section6909
5717.02 of the Revised Code. Only objections decided on the merits6910
by the board of tax appeals or a court shall be given collateral6911
estoppel or res judicata effect in considering an application for6912
refund of amounts paid pursuant to the assessment. If the petition6913
has been properly filed, the commissioner shall proceed under6914
section 5703.60 of the Revised Code.6915

       (C) After an assessment becomes final, if any portion of the6916
assessment remains unpaid, including accrued interest, a certified6917
copy of the tax commissioner's entry making the assessment final6918
may be filed in the office of the clerk of the court of common6919
pleas in the county in which the wholesale or retail dealer's6920
place of business is located or the county in which the party6921
assessed resides. If the party assessed maintains no place of6922
business in this state and is not a resident of this state, the6923
certified copy of the entry may be filed in the office of the6924
clerk of the court of common pleas of Franklin county.6925

       The clerk, immediatelyImmediately upon the filing of the6926
commissioner's entry, the clerk shall enter a judgment for the6927
state against the party assessed in the amount shown on the entry.6928
The judgment may be filed by the clerk in a loose-leaf book6929
entitled "special judgments for state cigarette sales tax," and6930
shall have the same effect as other judgments. Execution shall6931
issue upon the judgment upon the request of the tax commissioner,6932
and all laws applicable to sales on execution shall apply to sales6933
made under the judgment, except as otherwise provided in sections6934
5743.01 to 5743.20 of the Revised Code.6935

       The portion of the assessment not paid within sixty days6936
after the assessment was issued shall bear interest at the rate6937
per annum prescribed by section 5703.47 of the Revised Code from6938
the day the tax commissioner issues the assessment until it is6939
paid. Interest shall be paid in the same manner as the tax and6940
may be collected by the issuance of an assessment under this6941
section.6942

       (D) All money collected by the tax commissioner under this6943
section shall be paid to the treasurer of state, and when paid6944
shall be considered as revenue arising from the taxes imposed by6945
sections 5743.01 to 5743.20 of the Revised Code.6946

       Sec. 5743.53.  (A) The treasurer of state shall refund to a6947
taxpayer any of the following:6948

       (1) Any tobacco products tax paid erroneously;6949

       (2) Any tobacco products tax paid on an illegal or erroneous6950
assessment;6951

       (3) Any tax paid on tobacco products that have been sold or6952
shipped to retail or wholesale dealers outside this state,6953
returned to the manufacturer, or destroyed by the taxpayer with6954
the prior approval of the tax commissioner.6955

       Any application for refund shall be filed with the tax6956
commissioner on a form prescribed by himthe commissioner for that6957
purpose. The commissioner may not pay any refund on an6958
application for refund filed with the tax commissioner more than6959
three years from the date of payment of the tax.6960

       (B) UponOn the filing of the application for refund, the6961
commissioner shall determine the amount of the refund due andto6962
which the applicant is entitled. If the amount is not less than6963
that claimed, the commissioner shall certify thatthe amount to6964
the director of budget and management and to the treasurer of6965
state for payment from the tax refund fund created by section6966
5703.052 of the Revised Code. WhenIf the amount is less than that6967
claimed, the commissioner shall proceed in accordance with section6968
5703.70 of the Revised Code.6969

       If a refund is granted for payment of an illegal or erroneous6970
assessment issued by the department of taxation, the refund shall6971
include interest on the amount of the refund from the date of the6972
overpayment. The interest shall be computed at the rate per annum6973
in the manner prescribed by section 5703.47 of the Revised Code.6974

       (C) If any person entitled to a refund of tax under this6975
section or section 5703.70 of the Revised Code is indebted to the6976
state for any tax administered by the tax commissioner, or any6977
charge, penalties, or interest arising from such tax, the amount6978
allowable on the application for refund first shall be applied in6979
satisfaction of the debt.6980

       (D) In lieu of granting a refund payable under division6981
(A)(3) of this section, the tax commissioner may allow a taxpayer6982
to claim a credit of the amount of refundable tax on the return6983
for the period during which the tax became refundable. The6984
commissioner may require taxpayers to submit any information6985
necessary to support a claim for a credit under this section, and6986
the commissioner shall allow no credit if that information is not6987
provided.6988

       Sec. 5743.56.  (A) Any person required to pay the tax6989
imposed by section 5743.51, 5743.62, or 5743.63 of the Revised6990
Code is personally liable for the tax. The tax commissioner may6991
make an assessment, based upon any information in the6992
commissioner's possession, against any person who fails to file a6993
return or pay any tax, interest, or additional charge as required6994
by this chapter. The commissioner shall give the person assessed6995
written notice of such assessment asin the manner provided in6996
section 5703.37 of the Revised Code. With the notice, the6997
commissioner shall provide instructions on how to petition for6998
reassessment and request a hearing on the petition.6999

       (B) When the information in the possession of the tax7000
commissioner indicates that a person liable for the tax imposed by7001
section 5743.51, 5743.62, or 5743.63 of the Revised Code has not7002
paid the full amount of tax due, the commissioner may audit a7003
representative sample of the person's business and may issue an7004
assessment based on such audit.7005

       (C) A penalty of up to fifteen per cent may be added to all7006
amounts assessed under this section. The tax commissioner may7007
adopt rules providing for the imposition and remission of such7008
penalties.7009

       (D) Unless the person assessed files with the tax7010
commissioner within sixty days after service of the notice of7011
assessment, either personally or by certified mail, a written7012
petition for reassessment in writingsigned by the person assessed7013
or thethat person's authorized agent of the person assessed7014
having knowledge of the facts, the assessment becomes final and7015
the amount of the assessment is due and payable from the person7016
assessed to the treasurer of state. A petition shall indicate the7017
objections to the assessment of the person assessed, but7018
additional objections may be raised in writing if received by the7019
commissioner prior to the date shown on the final determination of7020
the tax commissioner. The commissioner shall grant the petitioner7021
a hearing on the petition, unless waived by the petitioner.7022

       The commissioner may make such correction to the assessment7023
as the commissioner finds proper and shall issue a final7024
determination thereon. The commissioner shall serve a copy of the7025
final determination on the petitioner either by personal service7026
or by certified mail, and the commissioner's decision in the7027
matter is final, subject to appeal under section 5717.02 of the7028
Revised Code. If the petition has been properly filed, the7029
commissioner shall proceed under section 5703.60 of the Revised7030
Code.7031

       (E) After an assessment becomes final, if any portion of the7032
assessment, including accrued interest, remains unpaid, a7033
certified copy of the tax commissioner's entry making the7034
assessment final may be filed in the office of the clerk of the7035
court of common pleas in the county in which the person assessed7036
resides or in which the person assessed conducts business. If the7037
person assessed maintains no place of business in this state and7038
is not a resident of this state, the certified copy of the entry7039
may be filed in the office of the clerk of the court of common7040
pleas of Franklin county.7041

       The clerk, immediatelyImmediately upon the filing of the7042
entry, the clerk shall enter a judgment for the state against the7043
person assessed in the amount shown to be dueon the entry. The7044
judgment may be filed by the clerk in a loose-leaf book entitled7045
"special judgments for state tobacco products tax," and shall have7046
the same effect as other judgments. Execution shall issue upon the7047
judgment upon the request of the tax commissioner, and all laws7048
applicable to sales on execution shall apply to sales made under7049
the judgment.7050

       The portion of the assessment not paid within sixty days7051
after the day the assessment is issued shall bear interest at the7052
rate per annum prescribed by section 5703.47 of the Revised Code7053
from the day the tax commissioner issues the assessment until the7054
assessment is paid. Interest shall be paid in the same manner as7055
the tax and may be collected by issuing an assessment under this7056
section.7057

       (F) If the tax commissioner believes that collection of the7058
tax will be jeopardized unless proceedings to collect or secure7059
collection of the tax are instituted without delay, the7060
commissioner may issue a jeopardy assessment against the person7061
liable for the tax. UponImmediately upon the issuance of the7062
jeopardy assessment, the commissioner immediately shall file an7063
entry with the clerk of the court of common pleas in the manner7064
prescribed by division (E) of this section. Notice of the7065
jeopardy assessment shall be served on the person assessed or the7066
legal representative of the person assessed, as provided in7067
section 5703.37 of the Revised Code, within five days of the7068
filing of the entry with the clerk. The total amount assessed is7069
immediately due and payable, unless the person assessed files a7070
petition for reassessment in accordance with division (D) of this7071
section and provides security in a form satisfactory to the7072
commissioner and in an amount sufficient to satisfy the unpaid7073
balance of the assessment. Full or partial payment of the7074
assessment does not prejudice the commissioner's consideration of7075
the petition for reassessment.7076

       (G) All money collected by the tax commissioner under this7077
section shall be paid to the treasurer of state as revenue arising7078
from the tax imposed by sections 5743.51, 5743.62, and 5743.63 of7079
the Revised Code.7080

       Sec. 5745.11.  An application to refund to a taxpayer the7081
amount of taxes paid on any illegal, erroneous, or excessive7082
payment of tax under this chapter, including assessments, shall be7083
filed with the tax commissioner within three years after the date7084
of the illegal, erroneous, or excessive payment of the tax, or7085
within any additional period allowed by division (A) of section7086
5745.12 of the Revised Code. The application shall be filed in7087
the form prescribed by the tax commissioner.7088

       UponOn the filing of a refund application, the tax7089
commissioner shall determine the amount of refund due andto which7090
the applicant is entitled. If the amount is not less than that7091
claimed, the commissioner shall certify the amount of the refund7092
to each municipal corporation to which the overpayment was made.7093
TheIf the amount is less than that claimed, the commissioner7094
shall proceed in accordance with section 5703.70 of the Revised7095
Code.7096

       On receipt of a certification of a refund, the municipal7097
corporation shall issue a refund to the taxpayer, or, upon the7098
taxpayer's written request, shall credit the amount of the refund7099
against the taxpayer's estimated tax payments to the municipal7100
corporation for an ensuing taxable year. Any7101

       Any portion of the refund not issued within ninety days after7102
the tax commissioner's notice is received by the municipal7103
corporation shall bear interest at the rate per annum prescribed7104
by section 5703.47 of the Revised Code from the ninetieth day7105
after such notice is received by the municipal corporation until7106
the day the refund is paid or credited. On an illegal or7107
erroneous assessment, interest shall be paid at that rate from the7108
date of payment on the illegal or erroneous assessment until the7109
day the refund is paid or credited.7110

       Sec. 5745.12.  (A) If any taxpayer required to file a report7111
under this chapter fails to file the report within the time7112
prescribed, files an incorrect report, or fails to remit the full7113
amount of the tax due for the period covered by the report, the7114
tax commissioner may make an assessment against the taxpayer for7115
any deficiency for the period for which the report or tax is due,7116
based upon any information in the commissioner's possession.7117

       The tax commissioner shall not make or issue an assessment7118
against a taxpayer more than three years after the later of the7119
final date the report subject to assessment was required to be7120
filed or the date the report was filed. Such time limit may be7121
extended if both the taxpayer and the commissioner consent in7122
writing to the extension. Any such extension shall extend the7123
three-year time limit in section 5745.11 of the Revised Code for7124
the same period of time. There shall be no bar or limit to an7125
assessment against a taxpayer that fails to file a report subject7126
to assessment as required by this chapter, or that files a7127
fraudulent report. The commissioner shall give the partytaxpayer7128
assessed written notice of the assessment by personal service or7129
certified mailas provided in section 5703.37 of the Revised Code.7130
With the notice, the commissioner shall provide instructions on7131
how to petition for reassessment and request a hearing on the7132
petition.7133

       (B) Unless the taxpayer to which the notice of assessment is7134
directedassessed files with the tax commissioner within sixty7135
days after service thereofof the notice of assessment, either7136
personally or by certified mail, a written petition for7137
reassessment in writing, signed by the authorized agent of the7138
taxpayer assessed having knowledge of the facts, and makes payment7139
of the portion of the assessment required by division (E) of this7140
section, the assessment shall becomebecomes final, and the amount7141
of the assessment shall beis due and payable from the taxpayer to7142
the treasurer of state. The petition shall indicate the7143
taxpayer's objections, but additional objections may be raised in7144
writing if received by the commissioner prior to the date shown on7145
the final determination by the commissioner.7146

       Unless the petitioner waives a hearing, the commissioner7147
shall assign a time and place for the hearing on the petition and7148
notify the petitioner of the time and place of the hearing by7149
personal service or certified mail, but the commissioner may7150
continue the hearing from time to time if necessary.7151

       The commissioner may make such correction to the assessment7152
as the commissioner finds proper. The commissioner shall serve a7153
copy of the final determination on the petitioner by personal7154
service or by certified mail, and the commissioner's decision in7155
the matter shall be final, subject to appeal as provided in 7156
section 5717.02 of the Revised Code. Only objections decided on7157
the merits by the board of tax appeals or a court shall be given7158
collateral estoppel or res judicata effect in considering an7159
application for refund of amounts paid pursuant to the assessment.7160
If the petition has been properly filed, the commissioner shall7161
proceed under section 5703.60 of the Revised Code.7162

       (C) After an assessment becomes final, if any portion of the7163
assessment remains unpaid, including accrued interest, a certified7164
copy of the tax commissioner's entry making the assessment final7165
may be filed in the office of the clerk of the court of common7166
pleas in the county in which the taxpayer has an office or place7167
of business in this state, the county in which the taxpayer's7168
statutory agent is located, or Franklin county.7169

       Immediately upon the filing of the entry, the clerk shall7170
enter a judgment against the taxpayer assessed in the amount shown7171
on the entry. The judgment may be filed by the clerk in a7172
loose-leaf book entitled "special judgments for municipal income7173
taxes," and shall have the same effect as other judgments.7174
Execution shall issue upon the judgment upon the request of the7175
tax commissioner, and all laws applicable to sales on execution7176
shall apply to sales made under the judgment.7177

       The portion of an assessment not paid within sixty days after7178
the day the assessment was issued shall bear interest at the rate7179
per annum prescribed by section 5703.47 of the Revised Code from7180
the day the tax commissioner issues the assessment until the7181
assessment is paid. Interest shall be paid in the same manner as7182
the tax and may be collected by issuing an assessment under this7183
section.7184

       (D) All money collected under this section shall be credited7185
and distributed to the municipal corporation to which the money is7186
owed based on the assessment issued under this section.7187

       (E) The portion of an assessment which must be paid upon the7188
filing of a petition for reassessment shall be as follows:7189

       (1) If the sole item objected to is the assessed penalty or7190
interest, payment of the assessment excluding any penalty is7191
required.7192

       (2) If the taxpayer that is assessed failed to file, prior7193
to the date of issuance of the assessment, the annual report7194
required by section 5745.03 of the Revised Code, full payment of7195
the assessment including penalty and interest is required.7196

       (3) If the taxpayer that is assessed filed, prior to the7197
date of issuance of the assessment, the annual report required by7198
section 5745.03 of the Revised Code, and a balance of the taxes7199
shown due on the reports as computed on the reports remains7200
unpaid, payment of only that portion of the assessment7201
representing the unpaid balance is required.7202

       (4) If none of the conditions specified in divisions (E)(1)7203
to (3) of this section apply, no payment is requiredIf the tax7204
commissioner believes that collection of the tax imposed by this7205
chapter will be jeopardized unless proceedings to collect or7206
secure collection of the tax are instituted without delay, the7207
commissioner may issue a jeopardy assessment against the taxpayer7208
liable for the tax. Immediately upon the issuance of the jeopardy7209
assessment, the commissioner shall file an entry with the clerk of7210
the court of common pleas in the manner prescribed by division (C)7211
of this section. Notice of the jeopardy assessment shall be7212
served on the taxpayer assessed or the taxpayer's legal7213
representative in the manner provided in section 5703.37 of the7214
Revised Code within five days of the filing of the entry with the7215
clerk. The total amount assessed is immediately due and payable,7216
unless the taxpayer assessed files a petition for reassessment in7217
accordance with division (B) of this section and provides security7218
in a form satisfactory to the commissioner and in an amount7219
sufficient to satisfy the unpaid balance of the assessment. Full7220
or partial payment of the assessment does not prejudice the7221
commissioner's consideration of the petition for reassessment.7222

       (F) Notwithstanding the fact that a petition for7223
reassessment is pending, the taxpayer may pay all or a portion of7224
the assessment that is the subject of the petition. The7225
acceptance of a payment by the treasurer of state does not7226
prejudice any claim for refund upon final determination of the7227
petition.7228

       If upon final determination of the petition an error in the7229
assessment is corrected by the tax commissioner, upon petition so7230
filed or pursuant to a decision of the board of tax appeals or any7231
court to which the determination or decision has been appealed, so7232
that the amount due from the taxpayer under the corrected7233
assessment is less than the portion paid, there shall be issued to7234
the taxpayer, its assigns, or legal representative a refund in the7235
amount of the overpayment as provided by section 5745.11 of the7236
Revised Code, with interest on that amount as provided by section7237
5745.11 of the Revised Code.7238

       Sec. 5745.13.  If, upon examination of any books, records,7239
reports, or other documents of a taxpayer, the tax commissioner7240
determines that an adjustment shall be made in the portion of the7241
taxpayer's income that is to be apportioned to a municipal7242
corporation, the tax commissioner shall notify the taxpayer and,7243
if the adjustment causes an adjustment in the taxpayer's tax of7244
more than five hundred dollars, shall notify each affected7245
municipal corporation that the taxpayer's tax has been adjusted.7246

       Any municipal corporation to which such a notice is issued7247
may request a review and redetermination of the taxpayer's federal7248
taxable income, Ohio net income, or the portion of Ohio net income7249
apportioned to the municipal corporation by filing a petition with7250
the tax commissioner not later than sixty days after the tax7251
commissioner issues the notice. The petition shall be filed7252
either personally or by certified mail, and shall indicate the7253
objections of the municipal corporation.7254

       Upon receiving such a petition, if a hearing on the petition7255
is requested, the tax commissioner shall assign a time and place7256
for athe hearing on the petition and shall notify the petitioner7257
of thesuch time and place of the hearing by ordinary mail. The7258
tax commissioner may continue the hearing from time to time as7259
necessary. The tax commissioner shall make any correction to the7260
taxpayer's federal taxable income, Ohio net income, or7261
apportionment of Ohio net income that the commissioner finds7262
properpursuant to section 5703.60 of the Revised Code, and issue7263
notice of any correction by ordinary mail to the petitioner, to7264
each other municipal corporation affected by the correction of the7265
apportionment, and to the taxpayer. The tax commissioner's7266
decision on the matter is final, and is not subject to further7267
appeal.7268

       Sec. 5747.025.  (A) The personal exemption for the taxpayer7269
and the taxpayer's spouse shall be seven hundred fifty dollars7270
each for the taxable year beginning in 1996, eight hundred fifty7271
dollars each for the taxable year beginning in 1997, nine hundred7272
fifty dollars each for the taxable year beginning in 1998, and one7273
thousand fifty dollars each for the taxable year beginning in 19997274
and taxable years beginning after 1999. The personal exemption7275
amount prescribed in this division for taxable years beginning7276
after 1999 shall be adjusted each year in the manner prescribed in7277
division (C) of this section.7278

       (B) The personal exemption for each dependent shall be eight7279
hundred fifty dollars for the taxable year beginning in 1996, and7280
one thousand fifty dollars for the taxable year beginning in 19977281
and taxable years beginning after 1997. The personal exemption7282
amount prescribed in this division for taxable years beginning7283
after 1999 shall be adjusted each year in the manner prescribed in7284
division (C) of this section.7285

       (C) EachIn September of each year, beginning in 2000, the7286
tax commissioner shall determine the percentage increase in the7287
gross domestic product deflator determined by the bureau of7288
economic analysis of the United States department of commerce from7289
the first day of JulyJanuary of the preceding calendar year to7290
the last day of JuneDecember of the currentpreceding year, and7291
adjust the personal exemption amount for taxable years beginning7292
in the current calendar year by multiplying that amount by the7293
percentage increase in the gross domestic product deflator for7294
that period; adding the resulting product to the personal7295
exemption amount for taxable years beginning in the preceding7296
calendar year; and rounding the resulting sum upward to the7297
nearest multiple of fifty dollars. The tax commissioner shall not7298
make such an adjustment in any calendar year in which the amount7299
resulting from the adjustment would be less than the amount7300
resulting from the adjustment in the preceding calendar year.7301

       Sec. 5747.06.  (A) Except as provided in division (E)(3) of7302
this section, every employer, including the state and its7303
political subdivisions, maintaining an office or transacting7304
business within this state and making payment of any compensation7305
to an employee who is a taxpayer shall deduct and withhold from7306
such compensation for each payroll period a tax computed in such7307
manner as to result, as far as practicable, in withholding from7308
the employee's compensation during each calendar year an amount7309
substantially equivalent to the tax reasonably estimated to be due7310
from the employee under this chapter and Chapter 5748. of the7311
Revised Code with respect to the amount of such compensation7312
included in histhe employee's adjusted gross income during the7313
calendar year. The employer shall deduct and withhold the tax on7314
the date that the employer directly, indirectly, or constructively7315
pays the compensation to, or credits the compensation to the7316
benefit of, the employee. The method of determining the amount to7317
be withheld shall be prescribed by rule of the tax commissioner.7318

       In addition to any other exclusions from withholding7319
permitted under this section, no tax shall be withheld by an7320
employer from the compensation of an employee when such7321
compensation is paid for:7322

       (1) Agricultural labor as defined in division G of section7323
3121 of Title 26 of the United States Code;7324

       (2) Domestic service in a private home, local college club,7325
or local chapter of a college fraternity or sorority;7326

       (3) Service performed in any calendar quarter by an employee7327
unless the cash remuneration paid for such service is three7328
hundred dollars or more and such service is performed by an7329
individual who is regularly employed by such employer to perform7330
such service;7331

       (4) Services performed for a foreign government or an7332
international organization;7333

       (5) Services performed by an individual under the age of7334
eighteen in the delivery or distribution of newspapers or shopping7335
news, not including delivery or distribution to any point for7336
subsequent delivery or distribution, or when performed by such7337
individual under the age of eighteen under an arrangement where7338
newspapers or magazines are to be sold by himthe individual at a7339
fixed price, histhe individual's compensation being based on the7340
retention of the excess of such price over the amount at which the7341
newspapers or magazines are charged to himthe individual;7342

       (6) Services not in the course of the employer's trade or7343
business to the extent paid in any medium other than cash.7344

       (B) Every employer required to deduct and withhold tax from7345
the compensation of an employee under this chapter shall furnish7346
to each employee, with respect to the compensation paid by such7347
employer to such employee during the calendar year, on or before7348
the thirty-first day of January of the succeeding year, or, if his7349
the employee's employment is terminated before the close of such7350
calendar year, within thirty days from the date on which the last7351
payment of compensation was made, a written statement as7352
prescribed by the tax commissioner showing the amount of7353
compensation paid by the employer to the employee, the amount7354
deducted and withheld as state income tax, any amount deducted and7355
withheld as school district income tax for each applicable school7356
district, and any other information as the commissioner7357
prescribes.7358

       (C) The failure of an employer to withhold tax as required7359
by this section or to remit such tax as required by law does not7360
relieve an employee from the liability for the tax. The failure of7361
an employer to remit the tax as required by law does not relieve7362
an employee from liability for the tax if the tax commissioner7363
ascertains that the employee colluded with the employer with7364
respect to the failure to remit the tax.7365

       (D) If an employer fails to deduct and withhold any tax as7366
required, and thereafter the tax is paid, the tax so required to7367
be deducted and withheld shall not be collected from the employer,7368
but the employer is not relieved from liability for penalties and7369
interest otherwise applicable in respect to the failure to deduct7370
and withhold the tax.7371

       (E) To ensure that taxes imposed pursuant to Chapter 5748.7372
of the Revised Code are deducted and withheld as provided in this7373
section:7374

       (1) EachAn employer shall request that each of his employees7375
employee furnish the name of the employee's school district of7376
residence;7377

       (2) Each employee shall furnish histhe employer with7378
sufficient and correct information to enable the employer to7379
withhold the taxes imposed under Chapter 5748. of the Revised7380
Code. The employee shall provide additional or corrected7381
information whenever information previously provided by him to his7382
the employer becomes insufficient or incorrect.7383

       (3) If the employer complies with the requirements of7384
division (E)(1) of this section and if the employee fails to7385
comply with the requirements of division (E)(2) of this section,7386
the employer is not required to withhold and pay the taxes imposed7387
under Chapter 5748. of the Revised Code and is not subject to any7388
penalties and interest otherwise applicable for failing to deduct7389
and withhold such taxes.7390

       Sec. 5747.08.  An annual return with respect to the tax7391
imposed by section 5747.02 of the Revised Code and each tax7392
imposed under Chapter 5748. of the Revised Code shall be made by7393
every taxpayer for any taxable year for which the taxpayer is7394
liable for the tax imposed by that section or under that chapter,7395
unless the total credits allowed under divisions (E), (F), and (G)7396
of section 5747.05 of the Revised Code for the year are equal to7397
or exceed the tax imposed by section 5747.02 of the Revised Code,7398
in which case no return shall be required unless the taxpayer is7399
liable for a tax imposed pursuant to Chapter 5748. of the Revised7400
Code.7401

       (A) If an individual is deceased, any return or notice7402
required of that individual under this chapter shall be made and7403
filed by that decedent's executor, administrator, or other person7404
charged with the property of that decedent.7405

       (B) If an individual is unable to make a return or notice7406
required by this chapter, the return or notice required of that7407
individual shall be made and filed by the individual's duly7408
authorized agent, guardian, conservator, fiduciary, or other7409
person charged with the care of the person or property of that7410
individual.7411

       (C) Returns or notices required of an estate or a trust7412
shall be made and filed by the fiduciary of the estate or trust.7413

       (D)(1)(a) Except as otherwise provided in division (D)(1)(b)7414
of this section, any pass-through entity may file a single return7415
on behalf of one or more of the entity's investors other than an7416
investor that is a person subject to the tax imposed under section7417
5733.06 of the Revised Code. The single return shall set forth7418
the name, address, and social security number or other identifying7419
number of each of those pass-through entity investors and shall7420
indicate the distributive share of each of those pass-through7421
entity investor's income taxable in this state in accordance with7422
sections 5747.20 to 5747.231 of the Revised Code. Such7423
pass-through entity investors for whom the pass-through entity7424
elects to file a single return are not entitled to the exemption7425
or credit provided for by sections 5747.02 and 5747.022 of the7426
Revised Code; shall calculate the tax before business credits at7427
the highest rate of tax set forth in section 5747.02 of the7428
Revised Code for the taxable year for which the return is filed;7429
and are entitled to only their distributive share of the business7430
credits as defined in division (D)(2) of this section. A single7431
check drawn by the pass-through entity shall accompany the return7432
in full payment of the tax due, as shown on the single return, for7433
such investors, other than investors who are persons subject to7434
the tax imposed under section 5733.06 of the Revised Code.7435

       (b)(i) A pass-through entity shall not include in such a7436
single return any investor that is a trust to the extent that any7437
direct or indirect current, future, or contingent beneficiary of7438
the trust is a person subject to the tax imposed under section7439
5733.06 of the Revised Code.7440

       (ii) A pass-through entity shall not include in such a7441
single return any investor that is itself a pass-through entity to7442
the extent that any direct or indirect investor in the second7443
pass-through entity is a person subject to the tax imposed under7444
section 5733.06 of the Revised Code.7445

       (c) Nothing in division (D) of this section precludes the7446
tax commissioner from requiring such investors to file the return7447
and make the payment of taxes and related interest, penalty, and7448
interest penalty required by this section or section 5747.02,7449
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)7450
of this section shall be construed to provide to such an investor7451
or pass-through entity any additional deduction or credit, other7452
than the credit provided by division (J) of this section, solely7453
on account of the entity's filing a return in accordance with this7454
section. Such a pass-through entity also shall make the filing7455
and payment of estimated taxes on behalf of the pass-through7456
entity investors other than an investor that is a person subject7457
to the tax imposed under section 5733.06 of the Revised Code.7458

       (2) For the purposes of this section, "business credits"7459
means the credits listed in section 5747.98 of the Revised Code7460
excluding the following credits:7461

       (a) The retirement credit under division (B) of section7462
5747.055 of the Revised Code;7463

       (b) The senior citizen credit under division (C) of section7464
5747.05 of the Revised Code;7465

       (c) The lump sum distribution credit under division (D) of7466
section 5747.05 of the Revised Code;7467

       (d) The dependent care credit under section 5747.054 of the7468
Revised Code;7469

       (e) The lump sum retirement income credit under division (C)7470
of section 5747.055 of the Revised Code;7471

       (f) The lump sum retirement income credit under division (D)7472
of section 5747.055 of the Revised Code;7473

       (g) The lump sum retirement income credit under division (E)7474
of section 5747.055 of the Revised Code;7475

       (h) The credit for displaced workers who pay for job7476
training under section 5747.27 of the Revised Code;7477

       (i) The twenty-dollar personal exemption credit under7478
section 5747.022 of the Revised Code;7479

       (j) The joint filing credit under division (G) of section7480
5747.05 of the Revised Code;7481

       (k) The nonresident credit under division (A) of section7482
5747.05 of the Revised Code;7483

       (l) The credit for a resident's out-of-state income under7484
division (B) of section 5747.05 of the Revised Code.7485

       (3) The election provided for under division (D) of this7486
section applies only to the taxable year for which the election is7487
made by the pass-through entity. Unless the tax commissioner7488
provides otherwise, this election, once made, is binding and7489
irrevocable for the taxable year for which the election is made.7490
Nothing in this division shall be construed to provide for any7491
deduction or credit that would not be allowable if a nonresident7492
pass-through entity investor were to file an annual return.7493

       (4) If a pass-through entity makes the election provided for7494
under division (D) of this section, the pass-through entity shall7495
be liable for any additional taxes, interest, interest penalty, or7496
penalties imposed by this chapter if the tax commissioner7497
determinesfinds that the single return does not reflect the7498
correct tax due by nonresidentthe pass-through entity investors7499
covered by that return. Nothing in this division shall be7500
construed to limit or alter the liability, if any, imposed on7501
pass-through entity investors for unpaid or underpaid taxes,7502
interest, interest penalty, or penalties as a result of the7503
pass-through entity's making the election provided for under7504
division (D) of this section. For the purposes of division (D) of7505
this section, "correct tax due" means the tax that would have been7506
paid by the pass-through entity had the single return been filed7507
in a manner reflecting and including the commissioner's findings7508
and determinations made by the tax commissioner. Nothing in7509
division (D) of this section shall be construed to make or hold a7510
pass-through entity liable for tax attributable to a pass-through7511
entity investor's income from a source other than the pass-through7512
entity electing to file the single return.7513

       (E) If a husband and wife file a joint federal income tax7514
return for a taxable year, they shall file a joint return under7515
this section for that taxable year, and their liabilities are7516
joint and several, but, if the federal income tax liability of7517
either spouse is determined on a separate federal income tax7518
return, they shall file separate returns under this section.7519

       If either spouse is not required to file a federal income tax7520
return and either or both are required to file a return pursuant7521
to this chapter, they may elect to file separate or joint returns,7522
and, pursuant to that election, their liabilities are separate or7523
joint and several. If a husband and wife file separate returns7524
pursuant to this chapter, each must claim the taxpayer's own7525
exemption, but not both, as authorized under section 5747.02 of7526
the Revised Code on the taxpayer's own return.7527

       (F) Each return or notice required to be filed under this7528
section shall contain the signature of the taxpayer or the7529
taxpayer's duly authorized agent and of the person who prepared7530
the return for the taxpayer, and shall include the taxpayer's7531
social security number. Each return shall be verified by a7532
declaration under the penalties of perjury. The tax commissioner7533
shall prescribe the form that the signature and declaration shall7534
take.7535

       (G) Each return or notice required to be filed under this7536
section shall be made and filed as required by section 5747.04 of7537
the Revised Code, on or before the fifteenth day of April of each7538
year, on forms that the tax commissioner shall prescribe, together7539
with remittance made payable to the treasurer of state in the7540
combined amount of the state and all school district income taxes7541
shown to be due on the form, unless the combined amount shown to7542
be due is one dollar or less, in which case that amount need not7543
be remitted.7544

       Upon good cause shown, the commissioner may extend the period7545
for filing any notice or return required to be filed under this7546
section and may adopt rules relating to extensions. If the7547
extension results in an extension of time for the payment of any7548
state or school district income tax liability with respect to7549
which the return is filed, the taxpayer shall pay at the time the7550
tax liability is paid an amount of interest computed at the rate7551
per annum prescribed by section 5703.47 of the Revised Code on7552
that liability from the time that payment is due without extension7553
to the time of actual payment. Except as provided in section7554
5747.132 of the Revised Code, in addition to all other interest7555
charges and penalties, all taxes imposed under this chapter or7556
Chapter 5748. of the Revised Code and remaining unpaid after they7557
become due, except combined amounts due of one dollar or less,7558
bear interest at the rate per annum prescribed by section 5703.477559
of the Revised Code until paid or until the day an assessment is7560
issued under section 5747.13 of the Revised Code, whichever occurs7561
first.7562

       If the commissioner considers it necessary in order to ensure7563
the payment of the tax imposed by section 5747.02 of the Revised7564
Code or any tax imposed under Chapter 5748. of the Revised Code,7565
the commissioner may require returns and payments to be made7566
otherwise than as provided in this section.7567

       (H) If any report, claim, statement, or other document7568
required to be filed, or any payment required to be made, within a7569
prescribed period or on or before a prescribed date under this7570
chapter is delivered after that period or that date by United7571
States mail to the agency, officer, or office with which the7572
report, claim, statement, or other document is required to be7573
filed, or to which the payment is required to be made, the date of7574
the postmark stamped on the cover in which the report, claim,7575
statement, or other document, or payment is mailed shall be deemed7576
to be the date of delivery or the date of payment.7577

       If a payment is required to be made by electronic funds7578
transfer pursuant to section 5747.072 of the Revised Code, the7579
payment is considered to be made when the payment is received by7580
the treasurer of state or credited to an account designated by the7581
treasurer of state for the receipt of tax payments.7582

       "The date of the postmark" means, in the event there is more7583
than one date on the cover, the earliest date imprinted on the7584
cover by the United States postal service.7585

       (I) The amounts withheld by the employer pursuant to section7586
5747.06 of the Revised Code shall be allowed to the recipient of7587
the compensation as credits against payment of the appropriate7588
taxes imposed on the recipient by section 5747.02 and under7589
Chapter 5748. of the Revised Code.7590

       (J) If, in accordance with division (D) of this section, a7591
pass-through entity elects to file a single return and if any7592
investor is required to file the return and make the payment of7593
taxes required by this chapter on account of the investor's other7594
income that is not included in a single return filed by a7595
pass-through entity, the investor is entitled to a refundable7596
credit equal to the investor's proportionate share of the tax paid7597
by the pass-through entity on behalf of the investor. The7598
investor shall claim the credit for the investor's taxable year in7599
which or with which ends the taxable year of the pass-through7600
entity. Nothing in this chapter shall be construed to allow any7601
credit provided in this chapter to be claimed more than once. For7602
the purposes of computing any interest, penalty, or interest7603
penalty, the investor shall be deemed to have paid the refundable7604
credit provided by this division on the day that the pass-through7605
entity paid the estimated tax or the tax giving rise to the7606
credit.7607

       Sec. 5747.13.  (A) If any employer collects the tax imposed7608
by section 5747.02 or under Chapter 5748. of the Revised Code and7609
fails to remit the tax as required by law, or fails to collect the7610
tax, the employer is personally liable for any amount collected7611
whichthat the employer fails to remit, or any amount whichthat7612
the employer fails to collect. If any taxpayer fails to file a7613
return or fails to pay the tax imposed by section 5747.02 or under7614
Chapter 5748. of the Revised Code, the taxpayer is personally7615
liable for the amount of the tax.7616

       If any employer, taxpayer, or qualifying entity required to7617
file a return under this chapter fails to file the return within7618
the time prescribed, files an incorrect return, fails to remit the7619
full amount of the taxes due for the period covered by the return,7620
or fails to remit any additional tax due as a result of a7621
reduction in the amount of the credit allowed under division (B)7622
of section 5747.05 of the Revised Code together with interest on7623
the additional tax within the time prescribed by that division,7624
the tax commissioner may make an assessment against any person7625
liable for any deficiency for the period for which the return is7626
or taxes are due, based upon any information in the commissioner's7627
possession.7628

       An assessment issued against either the employer or the7629
taxpayer pursuant to this section shall not be considered an7630
election of remedies or a bar to an assessment against the other7631
for failure to report or pay the same tax. No assessment shall be7632
issued against any person if the tax actually has been paid by7633
another.7634

       No assessment shall be made or issued against an employer,7635
taxpayer, or qualifying entity more than four years after the7636
final date the return subject to assessment was required to be7637
filed or the date the return was filed, whichever is later.7638
However, the commissioner may assess any balance due as the result7639
of a reduction in the credit allowed under division (B) of section7640
5747.05 of the Revised Code, including applicable penalty and7641
interest, within four years of the date on which the taxpayer7642
reports a change in either the portion of the taxpayer's adjusted7643
gross income subjected to an income tax or tax measured by income7644
in another state or the District of Columbia, or the amount of7645
liability for an income tax or tax measured by income to another7646
state or the District of Columbia, as required by division (B)(3)7647
of section 5747.05 of the Revised Code. Such time limits may be7648
extended if both the employer, taxpayer, or qualifying entity and7649
the commissioner consent in writing to the extension. Any such7650
extension shall extend the four-year time limit in division (B) of7651
section 5747.11 of the Revised Code for the same period of time.7652
There shall be no bar or limit to an assessment against an7653
employer for taxes withheld from employees and not remitted to the7654
state, against an employer, taxpayer, or qualifying entity that7655
fails to file a return subject to assessment as required by this7656
chapter, or against an employer, taxpayer, or qualifying entity7657
that files a fraudulent return.7658

       The commissioner shall give the party assessed written notice7659
of the assessment asin the manner provided in section 5703.37 of7660
the Revised Code. With the notice, the commissioner shall provide7661
instructions on how to petition for reassessment and request a7662
hearing on the petition.7663

       (B) Unless the party to whom the notice of assessment is7664
directedassessed files with the tax commissioner within sixty7665
days after service of the notice of assessment, either personally7666
or by certified mail, a written petition for reassessment in7667
writing, signed by the party assessed, or by thethat party's7668
authorized agent having knowledge of the facts and makes payment7669
of the portion of the assessment required by division (E) of this7670
section, the assessment shall becomebecomes final, and the amount7671
of the assessment shall beis due and payable from the party7672
assessed to the commissioner with remittance made payable to the7673
treasurer of state. The petition shall indicate the objections of7674
the party assessed, but additional objections may be raised in7675
writing if received by the commissioner prior to the date shown on7676
the final determination by the commissioner.7677

       Unless the petitioner waives a hearing, the commissioner7678
shall assign a time and place for the hearing on the petition and7679
notify the petitioner of the time and place of the hearing by7680
personal service or certified mail, but the commissioner may7681
continue the hearing from time to time if necessary.7682

       The commissioner may make such correction to an assessment7683
as the commissioner finds proper. The commissioner shall serve a7684
copy of a final determination on the petitioner by personal7685
service or certified mail, and the commissioner's decision in the7686
matter shall be final, subject to appeal as provided in section7687
5717.02 of the Revised Code. Only objections decided on the merits7688
by the board of tax appeals or a court shall be given collateral7689
estoppel or res judicata effect in considering an application for7690
refund of amounts paid pursuant to the assessment. If the petition7691
has been properly filed, the commissioner shall proceed under7692
section 5703.60 of the Revised Code.7693

       (C) After an assessment becomes final, if any portion of the7694
assessment remains unpaid, including accrued interest, a certified7695
copy of the tax commissioner's entry making the assessment final7696
may be filed in the office of the clerk of the court of common7697
pleas in the county in which the employer's, taxpayer's, or7698
qualifying entity's place of business is located or the county in7699
which the party assessed resides. If the party assessed is not a7700
resident of this state, the certified copy of the entry may be7701
filed in the office of the clerk of the court of common pleas of7702
Franklin county.7703

       Immediately upon the filing of the entry, the clerk shall7704
enter a judgment against the party assessed in the amount shown on7705
the entry. The judgment shall be filed by the clerk in one of two7706
loose-leaf books, one entitled "special judgments for state and7707
school district income taxes," and the other entitled "special7708
judgments for qualifying entity taxes." The judgment shall have7709
the same effect as other judgments. Execution shall issue upon7710
the judgment upon the request of the tax commissioner, and all7711
laws applicable to sales on execution shall apply to sales made7712
under the judgment.7713

       The portion of the assessment not paid within sixty days7714
after the assessment was issued shall bear interest at the rate7715
per annum prescribed by section 5703.47 of the Revised Code from7716
the day the tax commissioner issues the assessment until it is7717
paid. Interest shall be paid in the same manner as the tax and7718
may be collected by the issuance of an assessment under this7719
section.7720

       (D) All money collected under this section shall be7721
considered as revenue arising from the taxes imposed by this7722
chapter or Chapter 5733. or 5748. of the Revised Code, as7723
appropriate.7724

       (E) The portion of an assessment whichthat must be paid7725
upon the filing of a petition for reassessment shall be as7726
follows:7727

       (1) If the sole item objected to is the assessed penalty or7728
interest, payment of the assessment, including interest but not7729
penalty, is required;7730

       (2) If the taxpayer or qualifying entity that is assessed7731
failed to file, prior to the date of issuance of the assessment,7732
the annual return or report required by section 5747.08 or 5747.427733
of the Revised Code, any amended return or amended report required7734
by section 5747.10 or 5747.45 of the Revised Code for the taxable7735
year at issue, or any report required by division (B) of section7736
5747.05 of the Revised Code to indicate a reduction in the amount7737
of the credit provided under that division, payment of the7738
assessment, including interest but not penalty, is required,7739
except as otherwise provided under division (E)(6) or (7) of this7740
section;7741

       (3) If the employer assessed had not filed, prior to the7742
date of issuance of the assessment, the annual return required by7743
division (E)(2) of section 5747.07 of the Revised Code covering7744
the period at issue, payment of the assessment, including interest7745
but not penalty, is required;7746

       (4) If the taxpayer or qualifying entity that is assessed7747
filed, prior to the date of issuance of the assessment, the annual7748
return or report required by section 5747.08 or 5747.42 of the7749
Revised Code, all amended returns or reports required by section7750
5747.10 or 5747.45 of the Revised Code for the taxable year at7751
issue, and all reports required by division (B) of section 5747.057752
of the Revised Code to indicate a reduction in the amount of the7753
credit provided under that division, and a balance of the taxes7754
shown due on the returns or reports as computed on the returns or7755
reports remains unpaid, payment of only that portion of the7756
assessment representing the unpaid balance of tax and interest is7757
required;7758

       (5) If the employer assessed filed, prior to the date of7759
issuance of the assessment, the annual return required by division7760
(E)(2) of section 5747.07 of the Revised Code covering the period7761
at issue, and a balance of the taxes shown due on the return as7762
computed on the return remains unpaid, payment of only that7763
portion of the assessment representing the unpaid balance of tax7764
and interest is required;7765

       (6) In the case of a party assessed as a qualifying entity7766
subject to the tax levied under section 5733.41 or 5747.41 of the7767
Revised Code, if the party does not dispute that it is a7768
qualifying entity subject to that tax but claims the protections7769
of section 101 of Public Law 86-272, 73 Stat. 555, 15 U.S.C.A.7770
381, as amended, no payment is required;7771

       (7) In the case of a party assessed as a qualifying entity7772
subject to the tax levied under section 5733.41 or 5747.41 of the7773
Revised Code, if the party does dispute that it is a qualifying7774
entity subject to that tax, no payment is required;7775

       (8) If none of the conditions specified in divisions (E)(1)7776
to (7) of this section apply, no payment is required.7777

       (F) Notwithstanding the fact that a petition for7778
reassessment is pending, the petitioner may pay all or a portion7779
of the assessment that is the subject of the petition. The7780
acceptance of a payment by the treasurer of state does not7781
prejudice any claim for refund upon final determination of the7782
petition.7783

       If upon final determination of the petition an error in the7784
assessment is corrected by the tax commissioner, upon petition so7785
filed or pursuant to a decision of the board of tax appeals or any7786
court to which the determination or decision has been appealed, so7787
that the amount due from the party assessed under the corrected7788
assessment is less than the portion paid, there shall be issued to7789
the petitioner or to the petitioner's assigns or legal7790
representative a refund in the amount of the overpayment as7791
provided by section 5747.11 of the Revised Code, with interest on7792
that amount as provided by such section, subject to section7793
5747.12 of the Revised Code.7794

       Sec. 5749.07.  (A) If any severer required by this chapter7795
to make and file returns and pay the tax levied by section 5749.027796
of the Revised Code, fails to make such return or pay such tax,7797
the tax commissioner may make an assessment against the severer7798
based upon any information in the commissioner's possession.7799

       No assessment shall be made or issued against any severer for7800
any tax imposed by section 5749.02 of the Revised Code more than7801
four years after the return was due or was filed, whichever is7802
later. This section does not bar an assessment against a severer7803
who fails to file a return as required by this chapter, or who7804
files a fraudulent return.7805

       The commissioner shall give the party assessed written notice7806
of such assessment asin the manner provided in section 5703.37 of7807
the Revised Code. With the notice, the commissioner shall provide7808
instructions on how to petition for reassessment and request a7809
hearing on the petition.7810

       (B) Unless the party to whom such notice of assessment is7811
directedassessed files with the commissioner within sixty days7812
after service of the notice of assessment, either personally or by7813
certified mail, a written petition for reassessment in writing,7814
signed by the party assessed, or by anthat party's authorized7815
agent of the party assessed having knowledge of the facts, the7816
assessment shall becomebecomes final and the amount of the7817
assessment shall beis due and payable from the party assessed to7818
the treasurer of state. The petition shall indicate the objections7819
of the party assessed, but additional objections may be raised in7820
writing if received by the commissioner prior to the date shown on7821
the final determination by the commissioner.7822

       Unless the petitioner waives a hearing, the commissioner7823
shall assign a time and place for the hearing on the petition and7824
notify the petitioner of the time and place of the hearing by7825
personal service or certified mail, but the commissioner may7826
continue the hearing from time to time if necessary.7827

       The commissioner may make such correction to the assessment7828
as the commissioner finds proper. The commissioner shall serve a7829
copy of the final determination on the petitioner by personal7830
service or by certified mail, and the commissioner's decision in7831
the matter shall be final, subject to appeal as provided in7832
section 5717.02 of the Revised Code. Only objections decided on7833
the merits by the board of tax appeals or a court shall be given7834
collateral estoppel or res judicata effect in considering an7835
application for refund of amounts paid pursuant to the assessment.7836
If the petition has been properly filed, the commissioner shall7837
proceed under section 5703.60 of the Revised Code.7838

       (C) After an assessment becomes final, if any portion of the7839
assessment remains unpaid, including accrued interest, a certified7840
copy of the tax commissioner's entry making the assessment final7841
may be filed in the office of the clerk of the court of common7842
pleas in the county in which the party assessed resides or in7843
which the party's business is conducted. If the party assessed7844
maintains no place of business in this state and is not a resident7845
of this state, the certified copy of the entry may be filed in the7846
office of the clerk of the court of common pleas of Franklin7847
county.7848

       The clerk, immediatelyImmediately upon the filing of such7849
entry, the clerk shall enter a judgment for the state against the7850
party assessed in the amount shown on the entry. The judgment may7851
be filed by the clerk in a loose-leaf book entitled "special7852
judgments for state severance tax," and shall have the same effect7853
as other judgments. Execution shall issue upon the judgment upon7854
the request of the tax commissioner, and all laws applicable to7855
sales on execution shall apply to sales made under the judgment.7856

       The portion of the assessment not paid within sixty days7857
after the day the assessment is issued shall bear interest at the7858
rate per annum prescribed by section 5703.47 of the Revised Code7859
from the day the tax commissioner issues the assessment until it7860
is paid. Interest shall be paid in the same manner as the tax and7861
may be collected by the issuance of an assessment under this7862
section.7863

       (D) All money collected by the tax commissioner under this7864
section shall be paid to the treasurer of state, and when paid7865
shall be considered as revenue arising from the tax imposed by7866
section 5749.02 of the Revised Code.7867

       Sec. 5749.08.  The tax commissioner shall refund to taxpayers7868
the amount of taxes paid illegally or erroneously or paid on an7869
illegal or erroneous assessment. Applications for refund shall be7870
filed with the tax commissioner, on the form prescribed by the7871
commissioner, within four years from the date of the illegal or7872
erroneous payment of the tax. On the filing of suchthe7873
application, the commissioner shall determine the amount of refund7874
dueto which the applicant is entitled, plus interest computed in7875
accordance with section 5703.47 of the Revised Code from the date7876
of the payment of an erroneous or illegal assessment until the7877
date the refund is paid and. If the amount is not less than that7878
claimed, the commissioner shall certify suchthe amount to the7879
director of budget and management and treasurer of state payment7880
from the tax refund fund created by section 5703.052 of the7881
Revised Code. If the amount is less than that claimed, the7882
commissioner shall proceed in accordance with section 5703.70 of7883
the Revised Code.7884

       Section 2. That existing sections 323.152, 2935.01, 3317.026,7885
3734.905, 3734.907, 3769.088, 3924.66, 4305.131, 4307.05, 4307.07,7886
4503.065, 5117.071, 5703.05, 5703.21, 5703.37, 5703.51, 5711.31,7887
5715.49, 5715.50, 5717.02, 5727.26, 5727.28, 5727.39, 5727.47,7888
5727.471, 5727.89, 5727.91, 5727.93, 5728.01, 5728.02, 5728.03,7889
5728.04, 5728.06, 5728.061, 5728.07, 5728.08, 5728.09, 5728.10,7890
5728.11, 5728.13, 5733.021, 5733.04, 5733.05, 5733.11, 5733.12,7891
5733.28, 5735.06, 5735.11, 5735.12, 5735.122, 5735.13, 5735.14,7892
5735.141, 5735.142, 5735.18, 5735.311, 5739.01, 5739.011, 5739.02,7893
5739.026, 5739.031, 5739.033, 5739.05, 5739.104, 5739.13, 5739.17,7894
5739.31, 5739.99, 5741.01, 5741.13, 5743.05, 5743.081, 5743.53,7895
5743.56, 5745.11, 5745.12, 5745.13, 5747.025, 5747.06, 5747.08,7896
5747.13, 5749.07, and 5749.08 and sections 5728.05, 5735.31,7897
5739.07, 5741.10, and 5747.181 of the Revised Code are hereby7898
repealed.7899

       Section 3. That the versions of sections 5733.021 and 5733.127900
of the Revised Code that are scheduled to take effect July 1,7901
2002, be amended to read as follows:7902

       Sec. 5733.021.  (A) Each taxpayer whichthat does not in the7903
month of January file the report and make the payment required by7904
section 5733.02 of the Revised Code shall make and file a7905
declaration of estimated tax report for the tax year.7906

       The declaration of estimated tax report shall be filed with7907
the tax commissioner on or before the last day of January in such7908
form as prescribed by the tax commissioner, and shall reflect an7909
estimate of the total amount due under this chapter for the tax7910
year.7911

       (B) A taxpayer required to file a declaration of estimated7912
tax report shall make remittance of such estimated tax to the tax7913
commissioner as follows:7914

       (1) The entire estimated tax at the time of filing the7915
declaration of estimated tax report, if such estimated tax is not7916
in excess of the minimum tax as provided in section 5733.06 of the7917
Revised Code;7918

       (2) If the estimated tax is in excess of the minimum tax:7919

       (a) One-third of the estimated tax at the time of filing the7920
declaration of estimated tax report;7921

       (b) Two-thirds of the estimated tax on or before the last7922
day of March of the tax year, unlessif the report and payment7923
required by section 5733.02 of the Revised Code areis filed and7924
paid on or before the last day of March of the tax year.7925

       (3) If the estimated tax due is in excess of the minimum7926
tax, and an extension of time for filing the report required by7927
section 5733.02 of the Revised Code has been granted pursuant to7928
section 5733.13 of the Revised Code:7929

       (a) One-third of the estimated tax at the time of filing the7930
declaration of estimated tax report;7931

       (b) One-third of the estimated tax on or before the last day7932
of March of the tax year;7933

       (c) One-third of the estimated tax on or before the last day7934
of May of the tax year, unless the report and payments required by7935
section 5733.02 of the Revised Code are filed and paid on or7936
before the last day of May of the tax year.7937

       Remittance of the estimated tax shall be made payable to the7938
treasurer of state and shall be made in the form prescribed by the 7939
tax commissioner, including electronic funds transfer if required7940
by section 5733.022 of the Revised Code.7941

       The tax commissioner shall immediately forward to the7942
treasurer of state all amounts received under this section, and7943
the treasurer of state shall credit all payments of such estimated7944
tax as provided in section 5733.12 of the Revised Code.7945

       (C)(1) For any period of delinquency ending prior to the7946
first day of June of the tax year:7947

       (a) The penalty under division (A)(2) of section 5733.28 of7948
the Revised Code may only be imposed on the delinquent portion of7949
the estimated tax required to be paid under divisions (B)(2)(a)7950
and (b) and (B)(3)(a) and (b) of this section.7951

       (b) The interest under section 5733.26 of the Revised Code7952
shall only be imposed on the delinquent portion of estimated tax7953
required to be paid under divisions (B)(2)(a), (B)(2)(b),7954
(B)(3)(a), and (B)(3)(b) of this section.7955

       (c) If the taxpayer was not subject to tax for the7956
immediately preceding tax year, "estimated tax" for purposes of7957
division (C)(1) of this section is ninety per cent of the7958
qualifying tax for the current tax year. If the taxpayer was7959
subject to the tax for the immediately preceding tax year,7960
"estimated tax" for purposes of division (C)(1) of this section is7961
the lesser of one hundred per cent of the qualifying net tax for7962
the immediately preceding tax year or ninety per cent of the7963
qualifying net tax for the current tax year.7964

       (2) For any period of delinquency commencing the first day7965
of June of the tax year and concluding on the extended due date7966
pursuant to section 5733.13 of the Revised Code:7967

       (a) The penalty under division (A)(2) of section 5733.28 of7968
the Revised Code may only be imposed on the delinquent portion of7969
the estimated tax required to be paid under division (B)(3)(c) of7970
this section.7971

       (b) The interest under section 5733.26 of the Revised Code7972
shall be imposed on the delinquent portion of the amount in7973
division (C)(3)(a) of this section for the current tax year.7974

       (c) For purposes of division (C)(2) of this section,7975
"estimated tax" is ninety per cent of the qualifying net tax for7976
the current tax year.7977

       (3) If the taxpayer did not file a report under section7978
5733.02 of the Revised Code for the tax year or failed to prepare7979
and file the report in good faith for the tax year, "qualifying7980
net tax" as used in division (C) of this section for that tax year7981
means the amount described in division (C)(3)(a) of this division.7982
Otherwise, "qualifying net tax" as used in division (C) of this7983
section for that tax year means the lesser of the amount described7984
in division (C)(3)(a) or (b) of this section:7985

       (a) The tax imposed by sections 5733.06, 5733.065, and7986
5733.066 of the Revised Code for that tax year reduced by the7987
credits listed in section 5733.98 of the Revised Code. If the7988
credits exceed the total tax, the qualifying net tax is zero.7989

       (b) The lesser of the tax shown on the report, reduced by7990
the credits shown on that report, or the tax shown on an amended7991
report prepared and filed in good faith, reduced by the credits7992
shown on that amended report. If the credits shown exceed the7993
total tax shown, the qualifying net tax is zero.7994

       Sec. 5733.12.  (A) Four and two-tenths per cent of all7995
payments received from the taxes imposed under sections 5733.067996
and 5733.41 of the Revised Code shall be credited to the local7997
government fund for distribution in accordance with section7998
5747.50 of the Revised Code, six-tenths of one per cent shall be7999
credited to the local government revenue assistance fund for8000
distribution in accordance with section 5747.61 of the Revised8001
Code, and ninety-five and two-tenths per cent shall be credited to8002
the general revenue fund.8003

       (B) Except as otherwise provided under divisions (C) and (D)8004
of this section, an application to refund to the corporation the8005
amount of taxes imposed under section 5733.06 of the Revised Code8006
that are overpaid, paid illegally or erroneously, or paid on any8007
illegal, erroneous, or excessive assessment, with interest thereon8008
as provided by section 5733.26 of the Revised Code, shall be filed8009
with the tax commissioner, on the form prescribed by the8010
commissioner, within three years from the date of the illegal,8011
erroneous, or excessive payment of the tax, or within any8012
additional period allowed by division (C)(2) of section 5733.031,8013
division (D)(2) of section 5733.067, or division (A) of section8014
5733.11 of the Revised Code. For purposes of division (B) of this8015
section, any payment that the applicant made before the due date8016
or extended due date for filing the report to which the payment8017
relates shall be deemed to have been made on the due date or8018
extended due date.8019

       On the filing of the refund application, the commissioner8020
shall determine the amount of refund due andto which the8021
applicant is entitled. If the amount is not less than that8022
claimed the commissioner shall certify suchthe amount to the8023
director of budget and management and treasurer of state for8024
payment from the tax refund fund created by section 5703.052 of8025
the Revised Code. If the amount is less than that claimed, the8026
commissioner shall proceed in accordance with section 5703.70 of8027
the Revised Code.8028

       (C) "Ninety days" shall be substituted for "three years" in8029
division (B) of this section if the taxpayer satisfies both of the8030
following:8031

       (1) The taxpayer has applied for a refund based in whole or8032
in part upon section 5733.0611 of the Revised Code;8033

       (2) The taxpayer asserts that the imposition or collection8034
of the tax imposed or charged by section 5733.06 of the Revised8035
Code or any portion of such tax violates the Constitution of the8036
United States or the Constitution of this state.8037

       (D)(1) Division (D)(2) of this section applies only if all8038
of the following conditions are satisfied:8039

       (a) A qualifying pass-through entity pays an amount of the8040
tax imposed by section 5733.41 of the Revised Code;8041

       (b) The taxpayer is a qualifying investor as to that8042
qualifying pass-through entity;8043

       (c) The taxpayer did not claim the credit provided for in8044
section 5733.0611 of the Revised Code as to the tax described in8045
division (D)(1)(a) of this section;8046

       (d) The three-year period described in division (B) of this8047
section has ended as to the taxable year for which the taxpayer8048
otherwise would have claimed that credit.8049

       (2) A taxpayer shall file an application for refund pursuant8050
to this division within one year after the date the payment8051
described in division (D)(1)(a) of this section is made. An8052
application filed under this division shall only claim refund of8053
overpayments resulting from the taxpayer's failure to claim the8054
credit described in division (D)(1)(c) of this section. Nothing8055
in this division shall be construed to relieve a taxpayer from8056
complying with the provisions of division (I)(14) of section8057
5733.04 of the Revised Code.8058

       Section 4. That the existing versions of sections 5733.0218059
and 5733.12 of the Revised Code that are scheduled to take effect8060
July 1, 2002, are hereby repealed.8061

       Section 5. That the versions of sections 5727.26, 5728.08,8062
and 5735.06 of the Revised Code that are scheduled to take effect8063
January 1, 2003, be amended to read as follows:8064

       Sec. 5727.26.  (A) The tax commissioner may make an8065
assessment, based on any information in the commissioner's8066
possession, against any natural gas company or combined company8067
that fails to file a return or pay any tax, interest, or8068
additional charge as required by sections 5727.24 to 5727.29 of8069
the Revised Code. The commissioner shall give the company8070
assessed written notice of the assessment as provided in section8071
5703.37 of the Revised Code. With the notice, the commissioner8072
shall provide instructions on how to petition for reassessment and8073
request a hearing on the petition. A penalty of up to fifteen per8074
cent may be added to all amounts assessed under this section. The8075
tax commissioner may adopt rules providing for the imposition and8076
remission of the penalty.8077

       (B) If a party to whom the notice of assessment is directed8078
objects to the assessment, the party may file a petition for8079
reassessmentUnless the company assessed, within sixty days after8080
service of the notice of assessment, files with the tax8081
commissioner. The, either personally or by certified mail, a8082
written petition must be made in writing, signed by the party or8083
the party'scompany's authorized agent having knowledge of the8084
facts, and filed with the commissioner, either personally or by8085
certified mail, within sixty days after service of the notice of8086
assessment becomes final, and the amount of the assessment is due8087
and payable from the company assessed to the treasurer of state.8088
The petition shall indicate the objections of the company8089
assessed, but additional objections may be raised in writing if8090
received by the commissioner prior to the date shown on the final8091
determination of the commissioner. Upon receipt of8092

       If a petition for reassessment has been properly filed8093
petition, the commissioner may notify the treasurer of state.8094
Unless the petitioner waives a hearing, the commissioner shall8095
grant the petitioner a hearing on the petition, assign a time and8096
place for the hearing, and notify the petitioner of the time and8097
place of the hearing as provided inshall proceed under section8098
5703.375703.60 of the Revised Code. The commissioner may continue8099
the hearing from time to time, if necessary.8100

       If the party to whom the notice of assessment is directed8101
does not file a petition for reassessment, the assessment is final8102
and the amount of the assessment is due and payable from the8103
company assessed. The company assessed shall make the payment8104
payable to the treasurer of state and shall deliver the payment to8105
the tax commissioner.8106

       (C) The tax commissioner may make any correction to the8107
assessment that the commissioner finds proper and shall issue a8108
final determination thereon. The commissioner shall serve a copy8109
of the final determination on the petitioner as provided in8110
section 5703.37 of the Revised Code, and the commissioner's8111
decision in the matter is final, subject to appeal under section8112
5717.02 of the Revised Code. The commissioner may transmit a8113
copy of the final determination to the treasurer of state. Only8114
objections decided on the merits by the board of tax appeals or a8115
court shall be given collateral estoppel or res judicata effect in8116
considering an application for refund of an amount paid pursuant8117
to the assessment.8118

       (D)(C) After an assessment becomes final, if any portion of8119
the assessment, including accrued interest, remains unpaid, a8120
certified copy of the tax commissioner's entry making the8121
assessment final may be filed in the office of the clerk of the8122
court of common pleas in the county in which the natural gas8123
company's or combined company's principal place of business is8124
located, or in the office of the clerk of court of common pleas of8125
Franklin county.8126

       The clerk, immediatelyImmediately on the filing of the8127
entry, mustthe clerk shall enter judgment for the state against8128
the company assessed in the amount shown on the entry. The8129
judgment may be filed by the clerk in a loose-leaf book entitled,8130
"special judgments for the public utility excise tax on natural8131
gas and combined companies," and shall have the same effect as8132
other judgments. Execution shall issue upon the judgment at the8133
request of the tax commissioner, and all laws applicable to sales8134
on execution shall apply to sales made under the judgment.8135

       The portion of the assessment not paid within sixty days8136
after the day the assessment was issued shall bear interest at the8137
rate per annum prescribed by section 5703.47 of the Revised Code8138
from the day the tax commissioner issues the assessment until it8139
is paid. Interest shall be paid in the same manner as the tax and8140
may be collected by the issuance of an assessment under this8141
section.8142

       (E)(D) If the tax commissioner believes that collection of8143
the tax will be jeopardized unless proceedings to collect or8144
secure collection of the tax are instituted without delay, the8145
commissioner may issue a jeopardy assessment against the person8146
company liable for the tax. OnImmediately upon the issuance of8147
the jeopardy assessment, the commissioner immediately shall file8148
an entry with the clerk of the court of common pleas in the manner8149
prescribed by division (D)(C) of this section. Notice of the8150
jeopardy assessment shall be served on the partycompany assessed8151
or the party's legal representative ascompany's authorized agent8152
in the manner provided in section 5703.37 of the Revised Code8153
within five days of the filing of the entry with the clerk. The8154
total amount assessed is immediately due and payable, unless the8155
personcompany assessed files a petition for reassessment in8156
accordance with division (B) of this section and provides security8157
in a form satisfactory to the commissioner and in an amount8158
sufficient to satisfy the unpaid balance of the assessment. Full8159
or partial payment of the assessment does not prejudice the8160
commissioner's consideration of the petition for reassessment.8161

       (F)(E) The tax commissioner shall immediately forward to the8162
treasurer of state all amounts that the tax commissioner receives8163
under this section, and such amounts shall be considered revenue8164
arising from the tax imposed by section 5727.24 of the Revised8165
Code.8166

       (G)(F) No assessment shall be made or issued against a8167
natural gas company or combined company for the tax imposed by8168
section 5727.24 of the Revised Code more than four years after the8169
return date for the period in which the tax was reported, or more8170
than four years after the return for the period was filed,8171
whichever is later.8172

       Sec. 5728.08.  Except as provided in section 5728.03 of the8173
Revised Code and except as otherwise provided in this section,8174
whoever is liable for the payment of the tax levied by section8175
5728.06 of the Revised Code, on or before the last day of each8176
January, April, July, and October, shall file with the tax8177
commissioner, on forms prescribed by the tax commissioner, a8178
highwayfuel use tax return and make payment of the full amount of8179
the tax due for the operation of each commercial car and8180
commercial tractor for the next preceding three calendar months.8181
If the commercial cars or commercial tractors are farm trucks and8182
the amount of motor fuel used to operate the trucks during the8183
next preceding twelve calendar months was less than fifteen8184
thousand gallons, the highwayfuel use tax return shall be filed8185
and the full amount of tax due paid on or before the last day of8186
each July for the next preceding twelve calendar months. If the8187
commercial cars or commercial tractors are farm trucks and the8188
amount of motor fuel used to operate the trucks during the next8189
preceding twelve calendar months was fifteen thousand gallons or8190
more, the highwayfuel use tax return shall be filed and the full8191
amount of the tax due paid either on or before the last day of8192
each July for the next preceding twelve calendar months, or on or8193
before the last day of each January, April, July, and October for8194
the next preceding three calendar months, at the option of the8195
person liable for payment of the tax. If the commercial cars or8196
commercial tractors are not farm trucks, and if, in the estimation8197
of the tax commissioner, the amount of the tax due does not8198
warrant quarterly filing, the commissioner may authorize the8199
filing of the highwayfuel use tax return and payment of the full8200
amount due on or before the last day of each July for the next8201
preceding twelve months.8202

       The tax commissioner shall immediately forward to the8203
treasurer of state all money received from the tax levied by8204
section 5728.06 of the Revised Code.8205

       The treasurer of state shall place to the credit of the tax8206
refund fund created by section 5703.052 of the Revised Code, out8207
of receipts from the taxes levied by section 5728.06 of the8208
Revised Code, amounts equal to the refund certified by the tax8209
commissioner pursuant to section 5728.061 of the Revised Code.8210
Receipts from the tax shall be used by the tax commissioner to8211
defray expenses incurred by the department of taxation in8212
administering sections 5728.01 to 5728.14 of the Revised Code.8213

       All moneys received in the state treasury from taxes levied8214
by section 5728.06 of the Revised Code and fees assessed under8215
sections 5728.02 andsection 5728.03 of the Revised Code which8216
that are not required to be placed to the credit of the tax refund8217
fund as provided by this section shall, during each calendar year,8218
be credited to the highway improvement bond retirement fund8219
created by section 5528.12 of the Revised Code until the8220
commissioners of the sinking fund certify to the treasurer of8221
state, as required by section 5528.17 of the Revised Code, that8222
there are sufficient moneys to the credit of the highway8223
improvement bond retirement fund to meet in full all payments of8224
interest, principal, and charges for the retirement of bonds and8225
other obligations issued pursuant to Section 2g of Article VIII,8226
Ohio Constitution, and sections 5528.10 and 5528.11 of the Revised8227
Code due and payable during the current calendar year and during8228
the next succeedingfollowing calendar year. From the date of the8229
receipt of the certification required by section 5528.17 of the8230
Revised Code by the treasurer of state until the thirty-first day8231
of December of the calendar year in which the certification is8232
made, all moneys received in the state treasury from taxes levied8233
under section 5728.06 of the Revised Code and fees assessed under8234
sections 5728.02 andsection 5728.03 of the Revised Code which8235
that are not required to be placed to the credit of the tax refund8236
fund as provided by this section shall be credited to the highway8237
obligations bond retirement fund created by section 5528.32 of the8238
Revised Code until the commissioners of the sinking fund certify8239
to the treasurer of state, as required by section 5528.38 of the8240
Revised Code, that there are sufficient moneys to the credit of8241
the highway obligations bond retirement fund to meet in full all8242
payments of interest, principal, and charges for the retirement of8243
bonds and other obligations issued pursuant to Section 2i of8244
Article VIII, Ohio Constitution, and sections 5528.30 and 5528.318245
of the Revised Code due and payable during the current calendar8246
year and during the next succeedingfollowing calendar year. From8247
the date of the receipt of the certification required by section8248
5528.38 of the Revised Code by the treasurer of state until the8249
thirty-first day of December of the calendar year in which the8250
certification is made, all moneys received in the state treasury8251
from taxes levied under section 5728.06 of the Revised Code and8252
fees assessed under sections 5728.02 andsection 5728.03 of the8253
Revised Code whichthat are not required to be placed to the8254
credit of the tax refund fund as provided by this section shall be8255
credited to the highway operating fund created by section 5735.2918256
of the Revised Code, except as provided by the next succeeding8257
following paragraph of this section.8258

       From the date of the receipt by the treasurer of state of8259
certifications from the commissioners of the sinking fund, as8260
required by sections 5528.18 and 5528.39 of the Revised Code,8261
certifying that the moneys to the credit of the highway8262
improvement bond retirement fund are sufficient to meet in full8263
all payments of interest, principal, and charges for the8264
retirement of all bonds and other obligations whichthat may be8265
issued pursuant to Section 2g of Article VIII, Ohio Constitution,8266
and sections 5528.10 and 5528.11 of the Revised Code, and to the8267
credit of the highway obligations bond retirement fund are8268
sufficient to meet in full all payments of interest, principal,8269
and charges for the retirement of all obligations issued pursuant8270
to Section 2i of Article VIII, Ohio Constitution, and sections8271
5528.30 and 5528.31 of the Revised Code, all moneys received in8272
the state treasury from the taxes levied under section 5728.06 and8273
fees assessed under sections 5728.02 andsection 5728.03 of the8274
Revised Code, whichthat are not required to be placed to the8275
credit of the tax refund fund as provided by this section, shall8276
be deposited to the credit of the highway operating fund.8277

       As used in this section, "farm truck" means any commercial8278
car or commercial tractor that is registered as a farm truck under8279
Chapter 4503. of the Revised Code.8280

       Sec. 5735.06.  (A) On or before the last day of each month,8281
each motor fuel dealer shall file with the tax commissioner a8282
report for the preceding calendar month, on forms prescribed by or8283
in a form acceptable to the tax commissioner. The report shall8284
include the following information:8285

       (1) An itemized statement of the number of gallons of all8286
motor fuel received during the preceding calendar month by such8287
motor fuel dealer, which has been produced, refined, prepared,8288
distilled, manufactured, blended, or compounded by such motor fuel8289
dealer in the state;8290

       (2) An itemized statement of the number of gallons of all8291
motor fuel received by such motor fuel dealer in the state from8292
any source during the preceding calendar month, other than motor8293
fuel included in division (A)(1) of this section, together with a8294
statement showing the date of receipt of such motor fuel; the name8295
of the person from whom purchased or received; the date of receipt8296
of each shipment of motor fuel; the point of origin and the point8297
of destination of each shipment; the quantity of each of said8298
purchases or shipments; the name of the carrier; the number of8299
gallons contained in each car if shipped by rail; the point of8300
origin, destination, and shipper if shipped by pipe line; or the8301
name and owner of the boat, barge, or vessel if shipped by water;8302

       (3) An itemized statement of the number of gallons of motor8303
fuel which such motor fuel dealer has during the preceding8304
calendar month:8305

       (a) For motor fuel other than gasoline sold for use other8306
than for operating motor vehicles on the public highways or on8307
waters within the boundaries of this state;8308

       (b) Exported from this state to any other state or foreign8309
country as provided in division (A)(3)(4) of section 5735.05 of8310
the Revised Code;8311

       (c) Sold to the United States government or any of its8312
agencies;8313

       (d) Sold for delivery to motor fuel dealers;8314

       (e) Sold exclusively for use in the operation of aircraft;8315

       (4) Such other information incidental to the enforcement of8316
the motor fuel laws of the state as the commissioner requires.8317

       (B) The report shall show the tax due, computed as follows:8318

       (1) The following deductions shall be made from the total8319
number of gallons of motor fuel received by the motor fuel dealer8320
within the state during the preceding calendar month:8321

       (a) The total number of gallons of motor fuel received by8322
the motor fuel dealer within the state and sold or otherwise8323
disposed of during the preceding calendar month as set forth in8324
section 5735.05 of the Revised Code;8325

       (b) The total number of gallons received during the8326
preceding calendar month and sold or otherwise disposed of to8327
another licensed motor fuel dealer pursuant to section 5735.05 of8328
the Revised Code;8329

       (c) To cover the costs of the motor fuel dealer in compiling8330
the report, and evaporation, shrinkage, or other unaccounted-for8331
losses:8332

       (i) If the report is timely filed and the tax is timely8333
paid, three per cent of the total number of gallons of motor fuel8334
received by the motor fuel dealer within the state during the8335
preceding calendar month less the total number of gallons deducted8336
under divisions (B)(1)(a) and (b) of this section, less one per8337
cent of the total number of gallons of motor fuel that were sold8338
to a retail dealer during the preceding calendar month;8339

       (ii) If the report required by division (A) of this section8340
is not timely filed and the tax is not timely paid, no deduction8341
shall be allowed;8342

       (iii) If the report is incomplete, no deduction shall be8343
allowed for any fuel on which the tax is not timely reported and8344
paid;8345

       (2) The number of gallons remaining after the deductions8346
have been made shall be multiplied separately by each of the8347
following amounts:8348

       (a) The cents per gallon rate;8349

       (b) Two cents.8350

       The sum of the products obtained in divisions (B)(2)(a) and8351
(b) of this section shall be the amount of motor fuel tax for the8352
preceding calendar month.8353

       (C) The report shall be filed together with payment of the8354
tax shown on the report to be due, unless the motor fuel dealer is8355
required by section 5735.062 of the Revised Code to pay the tax by8356
electronic funds transfer, in which case the dealer shall file the8357
report pursuant to this section and pay the tax pursuant to8358
section 5735.062 of the Revised Code. The commissioner may extend8359
the time for filing reports and may remit all or part of penalties8360
which may become due under sections 5735.01 to 5735.99 of the8361
Revised Code. For purposes of this section and sections 5735.0628362
and 5735.12 of the Revised Code, a report required to be filed8363
under this section is considered filed when it is received by the 8364
tax commissioner, and remittance of the tax due is considered to8365
be made when the remittance is received by the tax commissioner8366
or when credited to an account designated by the treasurer of8367
state and the tax commissioner for the receipt of tax remittances.8368
The tax commissioner shall immediately forward to the treasurer of8369
state all amounts received under this section.8370

       (D) The tax commissioner may require a motor fuel dealer to8371
file a report for a period other than one month. Such a report,8372
together with payment of the tax, shall be filed not later than8373
thirty days after the last day of the prescribed reporting period.8374

       (E) No person required by this section to file a tax report8375
shall file a false or fraudulent tax report or supporting8376
schedule.8377

       Section 6. That existing sections 5727.26, 5728.08, and8378
5735.06 of the Revised Code that are scheduled to take effect8379
January 1, 2003, are hereby repealed.8380

       Section 7.  Section 5727.26 of the Revised Code is presented8381
in Section 1 of this act as a composite of the section as amended8382
by both H.B. 612 and Am. Sub. H.B. 640 of the 123rd General8383
Assembly. Section 5727.47 of the Revised Code is presented in8384
this act as a composite of the section as amended by both Sub.8385
H.B. 589 and H.B. 612 of the 123rd General Assembly. Section8386
5733.05 of the Revised Code is presented in this act as a8387
composite of the section as amended by both Am. Sub. H.B. 283 and8388
Am. Sub. S.B. 3 of the 123rd General Assembly. Section 5739.028389
of the Revised Code is presented in this act as a composite of the8390
section as amended by Am. Sub. H.B. 138, H.B. 612, and Am. Sub.8391
H.B. 640 all of the 123rd General Assembly. Section 5739.031 of8392
the Revised Code is presented in this act as a composite of the8393
section as amended by both Am. Sub. H.B. 740 and Sub. H.B. 791 of8394
the 119th General Assembly. The General Assembly, applying the8395
principle stated in division (B) of section 1.52 of the Revised8396
Code that amendments are to be harmonized if reasonably capable of8397
simultaneous operation, finds that the composite is the resulting8398
version of the section in effect prior to the effective date of8399
the section as presented in this act.8400