SENATORS Amstutz, Goodman

To amend sections 5739.21 and 5741.03 of the Revised

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Code to change the procedure used to return sales

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and use tax collections to counties under the

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sourcing law that is scheduled to take effect

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January 1, 2005.

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

Section 1. That sections 5739.21 and 5741.03 of the Revised	6
Code be amended to read as follows:	7

Sec. 5739.21.  (A) Four and two-tenths per cent of all money	8
deposited into the state treasury under sections 5739.01 to	9
5739.31 of the Revised Code and not required to be distributed as	10
provided in section 5739.102 of the Revised Code or division (B)	11
of this section shall be credited to the local government fund for	12
distribution in accordance with section 5747.50 of the Revised	13
Code, six-tenths of one per cent shall be credited to the local	14
government revenue assistance fund for distribution in accordance	15
with section 5747.61 of the Revised Code, and ninety-five and	16
two-tenths per cent shall be credited to the general revenue fund.	17

(B)(1) In any case where any county or transit authority has	18
levied a tax or taxes pursuant to section 5739.021, 5739.023, or	19
5739.026 of the Revised Code, the tax commissioner shall, within	20
forty-five days after the end of each month, determine and certify	21
to the director of budget and management the amount of the	22
proceeds of such tax or taxes received during that month from	23
billings and assessments, or associated with tax returns or	24
reports filed during that month, to be returned to the county or	25
transit authority levying the tax or taxes. The amount to be	26
returned to each county and transit authority shall be a fraction	27
of the aggregate amount of money collected with respect to each	28
area in which one or more of such taxes are concurrently in effect	29
with the tax levied by section 5739.02 of the Revised Code. The	30
numerator of the fraction is the rate of the tax levied by the	31
county or transit authority and the denominator of the fraction is	32
the aggregate rate of such taxes applicable to such area, but on	33
and after January 1, 2005, when determining the aggregate amount	34
of money collected with respect to a county, the tax commissioner	35
shall attribute and return to the county the amount of money it	36
would have collected under section 5739.033 of the Revised Code as	37
that section existed on December 31, 2004. The amount to be	38
returned to each county or transit authority shall be reduced by	39
the amount of any refunds of county or transit authority tax paid	40
pursuant to section 5739.07 of the Revised Code during the same	41
month, or transfers made pursuant to division (B)(2) of section	42
5703.052 of the Revised Code.	43

(2) On a periodic basis, using the best information	44
available, the tax commissioner shall distribute any amount of a	45
county or transit authority tax that cannot be distributed under	46
division (B)(1) of this section. Through audit or other means, the	47
commissioner shall attempt to obtain the information necessary to	48
make the distribution as provided under that division and, on	49
receipt of that information, shall make adjustments to	50
distributions previously made under this division.	51

(C) The aggregate amount to be returned to any county or	52
transit authority shall be reduced by one per cent, which shall be	53
certified directly to the credit of the local sales tax	54
administrative fund, which is hereby created in the state	55
treasury. For the purpose of determining the amount to be returned	56
to a county and transit authority in which the rate of tax imposed	57
by the transit authority has been reduced under section 5739.028	58
of the Revised Code, the tax commissioner shall use the respective	59
rates of tax imposed by the county or transit authority that	60
results from the change in the rates authorized under that	61
section.	62

(D) The director of budget and management shall transfer,	63
from the same funds and in the same proportions specified in	64
division (A) of this section, to the permissive tax distribution	65
fund created by division (B)(1) of section 4301.423 of the Revised	66
Code and to the local sales tax administrative fund, the amounts	67
certified by the tax commissioner. The tax commissioner shall	68
then, on or before the twentieth day of the month in which such	69
certification is made, provide for payment of such respective	70
amounts to the county treasurer and to the fiscal officer of the	71
transit authority levying the tax or taxes. The amount transferred	72
to the local sales tax administrative fund is for use by the tax	73
commissioner in defraying costs incurred in administering such	74
taxes levied by a county or transit authority.	75

Sec. 5741.03.  (A) Four and two-tenths per cent of all money	76
deposited into the state treasury under sections 5741.01 to	77
5741.22 of the Revised Code that is not required to be distributed	78
as provided in division (B) of this section shall be credited to	79
the local government fund for distribution in accordance with	80
section 5747.50 of the Revised Code, six-tenths of one per cent	81
shall be credited to the local government revenue assistance fund	82
for distribution in accordance with section 5747.61 of the Revised	83
Code, and ninety-five and two-tenths per cent shall be credited to	84
the general revenue fund.	85

(B) In any case where any county or transit authority has	86
levied a tax or taxes pursuant to section 5741.021, 5741.022, or	87
5741.023 of the Revised Code, the tax commissioner shall, within	88
forty-five days after the end of each month, determine and certify	89
to the director of budget and management the amount of the	90
proceeds of such tax or taxes from billings and assessments	91
received during that month, or shown on tax returns or reports	92
filed during that month, to be returned to the county or transit	93
authority levying the tax or taxes, which amounts shall be	94
determined in the manner provided in section 5739.21 of the	95
Revised Code. The director of budget and management shall	96
transfer, from the same funds and in the same proportions	97
specified in division (A) of this section, to the permissive tax	98
distribution fund created by division (B)(1) of section 4301.423	99
of the Revised Code and to the local sales tax administrative fund	100
created by division (B)(C) of section 5739.21 of the Revised Code,	101
the amounts certified by the tax commissioner. The tax	102
commissioner shall then, on or before the twentieth day of the	103
month in which such certification is made, provide for payment of	104
such respective amounts to the county treasurer or to the fiscal	105
officer of the transit authority levying the tax or taxes. The	106
amount transferred to the local sales tax administrative fund is	107
for use by the tax commissioner in defraying costs the	108
commissioner incurs in administering such taxes levied by a county	109
or transit authority.	110

Section 2. That existing sections 5739.21 and 5741.03 of the	111
Revised Code are hereby repealed.	112