REPRESENTATIVES Kilbane, Latta, Carano, McGregor, Cates, S. Patton, T. Patton, J. Stewart

To amend sections 165.09, 902.11, 2915.01, 4505.06,

1

4981.20, 5721.31, 5739.01, 5739.02, 5739.03,

2

5739.11, and 5741.02 of the Revised Code to

3

clarify who pays the sales or use tax on packaging

4

material used in highway transportation for hire,

5

to clarify when the transfer of motion picture

6

films is a sale, and to clarify who is to receive

7

notice of delinquent property tax certificates.

8

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

Section 1. That sections 165.09, 902.11, 2915.01, 4505.06,	9
4981.20, 5721.31, 5739.01, 5739.02, 5739.03, 5739.11, and 5741.02	10
of the Revised Code be amended to read as follows:	11

Sec. 165.09.  Any real or personal property, or both, of an	12
issuer whichthat is acquired, constructed, reconstructed,	13
enlarged, improved, furnished or equipped, or any combination	14
thereof, and leased or subleased under authority of either Chapter	15
165. or 761. of the Revised Code shall be subject to ad valorem,	16
sales, use, and franchise taxes and to zoning, planning, and	17
building regulations and fees, to the same extent and in the same	18
manner as if the lessee-user or sublessee-user thereof, rather	19
than the issuer, had acquired, constructed, reconstructed,	20
enlarged, improved, furnished, or equipped, or any combination	21
thereof, such real or personal property, and title thereto was in	22
the name of such lessee-user or sublessee-user.	23

The transfer of tangible personal property by lease or	24
sublease under authority of either Chapter 165. or 761. of the	25
Revised Code is not a sale as used in Chapter 5739. of the Revised	26
Code. The exemptions provided in divisions (B)(1) and (B)(14) of	27
section 5739.02 of the Revised Code shall not be applicable to	28
purchases for a project under either Chapters 165. or 761. of the	29
Revised Code.	30

An issuer shall be exempt from all taxes on its real or	31
personal property, or both, whichthat has been acquired,	32
constructed, reconstructed, enlarged, improved, furnished, or	33
equipped, or any combination thereof, under Chapter 165. or 761.	34
of the Revised Code, so long as such property is used by the	35
issuer for purposes whichthat would otherwise exempt such	36
property; has ceased to be used by a former lessee-user or	37
sublessee-user and is not occupied or used; or has been acquired	38
by the issuer, but development has not yet commenced. The	39
exemption shall be effective as of the date the exempt use begins.	40
All taxes on the exempt real or personal property for the year	41
should be prorated and the taxes for the exempt portion of the	42
year shall be remitted by the county auditor.	43

Sec. 902.11.  (A) Any real or personal property, or both, of	44
an issuer whichthat is acquired, constructed, reconstructed,	45
enlarged, improved, furnished, or equipped, or any combination	46
thereof, and leased or subleased under authority of this chapter	47
shall be subject to ad valorem, sales, use, and franchise taxes	48
and to zoning, planning, and building regulations and fees, to the	49
same extent and in the same manner as if the lessee-user or	50
sublessee-user thereof, rather than the issuer, had acquired,	51
constructed, reconstructed, enlarged, improved, furnished, or	52
equipped, or any combination thereof, such real or personal	53
property, and title thereto was in the name of such lessee-user or	54
sublessee-user.	55

The transfer of tangible personal property by lease or	56
sublease under authority of this chapter is not a sale as used in	57
Chapter 5739. of the Revised Code. The exemptions provided in	58
divisions (B)(1) and (14) of section 5739.02 of the Revised Code	59
shall not be applicable to purchases for a project under this	60
chapter.	61

An issuer shall be exempt from all taxes on its real or	62
personal property, or both, whichthat has been acquired,	63
constructed, reconstructed, enlarged, improved, furnished, or	64
equipped, or any combination thereof, under this chapter so long	65
as such property is used by the issuer for purposes whichthat	66
would otherwise exempt such property; has ceased to be used by a	67
former lessee-user or sublessee-user and is not occupied or used;	68
or has been acquired by the issuer, but development has not yet	69
commenced. The exemption shall be effective as of the date the	70
exempt use begins. All taxes on the exempt real or personal	71
property for the year should be prorated and the taxes for the	72
exempt portion of the year shall be remitted by the county	73
auditor.	74

(B) Bonds issued under this chapter, the transfer thereof,	75
and the interest and other income from the bonds, including any	76
profit made on the sale thereof, are free from taxation within the	77
state.	78

Sec. 2915.01.  As used in this chapter:

79

(A) "Bookmaking" means the business of receiving or paying	80
off bets.	81

(B) "Bet" means the hazarding of anything of value upon the	82
result of an event, undertaking, or contingency, but does not	83
include a bona fide business risk.	84

(C) "Scheme of chance" means a slot machine, lottery, numbers	85
game, pool, or other scheme in which a participant gives a	86
valuable consideration for a chance to win a prize, but does not	87
include bingo.	88

(D) "Game of chance" means poker, craps, roulette, or other	89
game in which a player gives anything of value in the hope of	90
gain, the outcome of which is determined largely by chance, but	91
does not include bingo.	92

(E) "Game of chance conducted for profit" means any game of	93
chance designed to produce income for the person who conducts or	94
operates the game of chance, but does not include bingo.	95

(F) "Gambling device" means any of the following:

96

(1) A book, totalizer, or other equipment for recording bets;

97

(2) A ticket, token, or other device representing a chance,	98
share, or interest in a scheme of chance or evidencing a bet;	99

(3) A deck of cards, dice, gaming table, roulette wheel, slot	100
machine, or other apparatus designed for use in connection with a	101
game of chance;	102

(4) Any equipment, device, apparatus, or paraphernalia	103
specially designed for gambling purposes;	104

(5) Bingo supplies sold or otherwise provided, or used, in	105
violation of this chapter.	106

(G) "Gambling offense" means any of the following:

107

(1) A violation of section 2915.02, 2915.03, 2915.04,	108
2915.05, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09, 2915.091,	109
2915.092, 2915.10, or 2915.11 of the Revised Code;	110

(2) A violation of an existing or former municipal ordinance	111
or law of this or any other state or the United States	112
substantially equivalent to any section listed in division (G)(1)	113
of this section or a violation of section 2915.06 of the Revised	114
Code as it existed prior to July 1, 1996;	115

(3) An offense under an existing or former municipal	116
ordinance or law of this or any other state or the United States,	117
of which gambling is an element;	118

(4) A conspiracy or attempt to commit, or complicity in	119
committing, any offense under division (G)(1), (2), or (3) of this	120
section.	121

(H) Except as otherwise provided in this chapter, "charitable	122
organization" means any tax exempt religious, educational,	123
veteran's, fraternal, service, nonprofit medical, volunteer rescue	124
service, volunteer firefighter's, senior citizen's, youth	125
athletic, amateur athletic, or youth athletic park organization.	126
An organization is tax exempt if the organization is, and has	127
received from the internal revenue service a determination letter	128
that currently is in effect stating that the organization is,	129
exempt from federal income taxation under subsection 501(a) and	130
described in subsection 501(c)(3), 501(c)(4), 501(c)(8),	131
501(c)(10), or 501(c)(19) of the Internal Revenue Code. To qualify	132
as a charitable organization, an organization, except a volunteer	133
rescue service or volunteer fire fighter's organization, shall	134
have been in continuous existence as such in this state for a	135
period of two years immediately preceding either the making of an	136
application for a bingo license under section 2915.08 of the	137
Revised Code or the conducting of any scheme of chance or game of	138
chance as provided in division (C) of section 2915.02 of the	139
Revised Code. A charitable organization that is exempt from	140
federal income taxation under subsection 501(a) and described in	141
subsection 501(c)(3) of the Internal Revenue Code and that is	142
created by a veteran's organization or a fraternal organization	143
does not have to have been in continuous existence as such in this	144
state for a period of two years immediately preceding either the	145
making of an application for a bingo license under section 2915.08	146
of the Revised Code or the conducting of any scheme of chance or	147
game of chance as provided in division (D) of section 2915.02 of	148
the Revised Code.	149

(I) "Religious organization" means any church, body of	150
communicants, or group that is not organized or operated for	151
profit and that gathers in common membership for regular worship	152
and religious observances.	153

(J) "Educational organization" means any organization within	154
this state that is not organized for profit, the exclusive purpose	155
of which is to educate and develop the capabilities of individuals	156
through instruction, and that operates or contributes to the	157
support of a school, academy, college, or university.	158

(K) "Veteran's organization" means any individual post of a	159
national veteran's association or an auxiliary unit of any	160
individual post of a national veteran's association, which post or	161
auxiliary unit has been incorporated as a nonprofit corporation	162
for at least two years and has received a letter from the state	163
headquarters of the national veteran's association indicating that	164
the individual post or auxiliary unit is in good standing with the	165
national veteran's association. As used in this division,	166
"national veteran's association" means any veteran's association	167
that has been in continuous existence as such for a period of at	168
least five years and either is incorporated by an act of the	169
United States congress or has a national dues-paying membership of	170
at least five thousand persons.	171

(L) "Volunteer firefighter's organization" means any	172
organization of volunteer firefighters, as defined in section	173
146.01 of the Revised Code, that is organized and operated	174
exclusively to provide financial support for a volunteer fire	175
department or a volunteer fire company and that is recognized or	176
ratified by a county, municipal corporation, or township.	177

(M) "Fraternal organization" means any society, order, or	178
association within this state, except a college or high school	179
fraternity, that is not organized for profit, that is a branch,	180
lodge, or chapter of a national or state organization, that exists	181
exclusively for the common business or sodality of its members,	182
and that has been in continuous existence in this state for a	183
period of five years.	184

(N) "Volunteer rescue service organization" means any	185
organization of volunteers organized to function as an emergency	186
medical service organization, as defined in section 4765.01 of the	187
Revised Code.	188

(O) "Service organization" means any organization, not	189
organized for profit, that is organized and operated exclusively	190
to provide, or to contribute to the support of organizations or	191
institutions organized and operated exclusively to provide,	192
medical and therapeutic services for persons who are crippled,	193
born with birth defects, or have any other mental or physical	194
defect or those organized and operated exclusively to protect, or	195
to contribute to the support of organizations or institutions	196
organized and operated exclusively to protect, animals from	197
inhumane treatment.	198

(P) "Nonprofit medical organization" means any organization	199
that has been incorporated as a nonprofit corporation for at least	200
five years and that has continuously operated and will be operated	201
exclusively to provide, or to contribute to the support of	202
organizations or institutions organized and operated exclusively	203
to provide, hospital, medical, research, or therapeutic services	204
for the public.	205

(Q) "Senior citizen's organization" means any private	206
organization, not organized for profit, that is organized and	207
operated exclusively to provide recreational or social services	208
for persons who are fifty-five years of age or older and that is	209
described and qualified under subsection 501(c)(3) of the Internal	210
Revenue Code.	211

(R) "Charitable bingo game" means any bingo game described in	212
division (S)(1) or (2) of this section that is conducted by a	213
charitable organization that has obtained a license pursuant to	214
section 2915.08 of the Revised Code and the proceeds of which are	215
used for a charitable purpose.	216

(S) "Bingo" means either of the following:

217

(1) A game with all of the following characteristics:

218

(a) The participants use bingo cards or sheets, including	219
paper formats and electronic representation or image formats, that	220
are divided into twenty-five spaces arranged in five horizontal	221
and five vertical rows of spaces, with each space, except the	222
central space, being designated by a combination of a letter and a	223
number and with the central space being designated as a free	224
space.	225

(b) The participants cover the spaces on the bingo cards or	226
sheets that correspond to combinations of letters and numbers that	227
are announced by a bingo game operator.	228

(c) A bingo game operator announces combinations of letters	229
and numbers that appear on objects that a bingo game operator	230
selects by chance, either manually or mechanically, from a	231
receptacle that contains seventy-five objects at the beginning of	232
each game, each object marked by a different combination of a	233
letter and a number that corresponds to one of the seventy-five	234
possible combinations of a letter and a number that can appear on	235
the bingo cards or sheets.	236

(d) The winner of the bingo game includes any participant who	237
properly announces during the interval between the announcements	238
of letters and numbers as described in division (S)(1)(c) of this	239
section, that a predetermined and preannounced pattern of spaces	240
has been covered on a bingo card or sheet being used by the	241
participant.	242

(2) Instant bingo, punch boards, and raffles.

243

(T) "Conduct" means to back, promote, organize, manage, carry	244
on, sponsor, or prepare for the operation of bingo or a game of	245
chance.	246

(U) "Bingo game operator" means any person, except security	247
personnel, who performs work or labor at the site of bingo,	248
including, but not limited to, collecting money from participants,	249
handing out bingo cards or sheets or objects to cover spaces on	250
bingo cards or sheets, selecting from a receptacle the objects	251
that contain the combination of letters and numbers that appear on	252
bingo cards or sheets, calling out the combinations of letters and	253
numbers, distributing prizes, selling or redeeming instant bingo	254
tickets or cards, supervising the operation of a punch board,	255
selling raffle tickets, selecting raffle tickets from a receptacle	256
and announcing the winning numbers in a raffle, and preparing,	257
selling, and serving food or beverages.	258

(V) "Participant" means any person who plays bingo.

259

(W) "Bingo session" means a period that includes both of the	260
following:	261

(1) Not to exceed five continuous hours for the conduct of	262
one or more games described in division (S)(1) of this section,	263
instant bingo, and seal cards;	264

(2) A period for the conduct of instant bingo and seal cards	265
for not more than two hours before and not more than two hours	266
after the period described in division (W)(1) of this section.	267

(X) "Gross receipts" means all money or assets, including	268
admission fees, that a person receives from bingo without the	269
deduction of any amounts for prizes paid out or for the expenses	270
of conducting bingo. "Gross receipts" does not include any money	271
directly taken in from the sale of food or beverages by a	272
charitable organization conducting bingo, or by a bona fide	273
auxiliary unit or society of a charitable organization conducting	274
bingo, provided all of the following apply:	275

(1) The auxiliary unit or society has been in existence as a	276
bona fide auxiliary unit or society of the charitable organization	277
for at least two years prior to conducting bingo.	278

(2) The person who purchases the food or beverage receives	279
nothing of value except the food or beverage and items customarily	280
received with the purchase of that food or beverage.	281

(3) The food and beverages are sold at customary and	282
reasonable prices.	283

(Y) "Security personnel" includes any person who either is a	284
sheriff, deputy sheriff, marshal, deputy marshal, township	285
constable, or member of an organized police department of a	286
municipal corporation or has successfully completed a peace	287
officer's training course pursuant to sections 109.71 to 109.79 of	288
the Revised Code and who is hired to provide security for the	289
premises on which bingo is conducted.	290

(Z) "Charitable purpose" means that the net profit of bingo,	291
other than instant bingo, is used by, or is given, donated, or	292
otherwise transferred to, any of the following:	293

(1) Any organization that is described in subsection	294
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	295
and is either a governmental unit or an organization that is tax	296
exempt under subsection 501(a) and described in subsection	297
501(c)(3) of the Internal Revenue Code;	298

(2) A veteran's organization that is a post, chapter, or	299
organization of veterans, or an auxiliary unit or society of, or a	300
trust or foundation for, any such post, chapter, or organization	301
organized in the United States or any of its possessions, at least	302
seventy-five per cent of the members of which are veterans and	303
substantially all of the other members of which are individuals	304
who are spouses, widows, or widowers of veterans, or such	305
individuals, provided that no part of the net earnings of such	306
post, chapter, or organization inures to the benefit of any	307
private shareholder or individual, and further provided that the	308
net profit is used by the post, chapter, or organization for the	309
charitable purposes set forth in division (B)(12) of section	310
5739.02 of the Revised Code, is used for awarding scholarships to	311
or for attendance at an institution mentioned in division (B)(12)	312
of section 5739.02 of the Revised Code, is donated to a	313
governmental agency, or is used for nonprofit youth activities,	314
the purchase of United States or Ohio flags that are donated to	315
schools, youth groups, or other bona fide nonprofit organizations,	316
promotion of patriotism, or disaster relief;	317

(3) A fraternal organization that has been in continuous	318
existence in this state for fifteen years and that uses the net	319
profit exclusively for religious, charitable, scientific,	320
literary, or educational purposes, or for the prevention of	321
cruelty to children or animals, if contributions for such use	322
would qualify as a deductible charitable contribution under	323
subsection 170 of the Internal Revenue Code;	324

(4) A volunteer firefighter's organization that uses the net	325
profit for the purposes set forth in division (L) of this section.	326

(AA) "Internal Revenue Code" means the "Internal Revenue Code	327
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter	328
amended.	329

(BB) "Youth athletic organization" means any organization,	330
not organized for profit, that is organized and operated	331
exclusively to provide financial support to, or to operate,	332
athletic activities for persons who are twenty-one years of age or	333
younger by means of sponsoring, organizing, operating, or	334
contributing to the support of an athletic team, club, league, or	335
association.	336

(CC) "Youth athletic park organization" means any	337
organization, not organized for profit, that satisfies both of the	338
following:	339

(1) It owns, operates, and maintains playing fields that	340
satisfy both of the following:	341

(a) The playing fields are used at least one hundred days per	342
year for athletic activities by one or more organizations, not	343
organized for profit, each of which is organized and operated	344
exclusively to provide financial support to, or to operate,	345
athletic activities for persons who are eighteen years of age or	346
younger by means of sponsoring, organizing, operating, or	347
contributing to the support of an athletic team, club, league, or	348
association.	349

(b) The playing fields are not used for any profit-making	350
activity at any time during the year.	351

(2) It uses the proceeds of bingo it conducts exclusively for	352
the operation, maintenance, and improvement of its playing fields	353
of the type described in division (CC)(1) of this section.	354

(DD) "Amateur athletic organization" means any organization,	355
not organized for profit, that is organized and operated	356
exclusively to provide financial support to, or to operate,	357
athletic activities for persons who are training for amateur	358
athletic competition that is sanctioned by a national governing	359
body as defined in the "Amateur Sports Act of 1978," 90 Stat.	360
3045, 36 U.S.C.A. 373.	361

(EE) "Bingo supplies" means bingo cards or sheets; instant	362
bingo tickets or cards; electronic bingo aids; raffle tickets;	363
punch boards; seal cards; instant bingo ticket dispensers; and	364
devices for selecting or displaying the combination of bingo	365
letters and numbers or raffle tickets. Items that are "bingo	366
supplies" are not gambling devices if sold or otherwise provided,	367
and used, in accordance with this chapter. For purposes of this	368
chapter, "bingo supplies" are not to be considered equipment used	369
to conduct a bingo game.	370

(FF) "Instant bingo" means a form of bingo that uses folded	371
or banded tickets or paper cards with perforated break-open tabs,	372
a face of which is covered or otherwise hidden from view to	373
conceal a number, letter, or symbol, or set of numbers, letters,	374
or symbols, some of which have been designated in advance as prize	375
winners. "Instant bingo" includes seal cards. "Instant bingo" does	376
not include any device that is activated by the insertion of a	377
coin, currency, token, or an equivalent, and that contains as one	378
of its components a video display monitor that is capable of	379
displaying numbers, letters, symbols, or characters in winning or	380
losing combinations.	381

(GG) "Seal card" means a form of instant bingo that uses	382
instant bingo tickets in conjunction with a board or placard that	383
contains one or more seals that, when removed or opened, reveal	384
predesignated winning numbers, letters, or symbols.	385

(HH) "Raffle" means a form of bingo in which the one or more	386
prizes are won by one or more persons who have purchased a raffle	387
ticket. The one or more winners of the raffle are determined by	388
drawing a ticket stub or other detachable section from a	389
receptacle containing ticket stubs or detachable sections	390
corresponding to all tickets sold for the raffle.	391

(II) "Punch board" means a board containing a number of holes	392
or receptacles of uniform size in which are placed, mechanically	393
and randomly, serially numbered slips of paper that may be punched	394
or drawn from the hole or receptacle when used in conjunction with	395
instant bingo. A player may punch or draw the numbered slips of	396
paper from the holes or receptacles and obtain the prize	397
established for the game if the number drawn corresponds to a	398
winning number or, if the punch board includes the use of a seal	399
card, a potential winning number.	400

(JJ) "Gross profit" means gross receipts minus the amount	401
actually expended for the payment of prize awards.	402

(KK) "Net profit" means gross profit minus expenses.

403

(LL) "Expenses" means the reasonable amount of gross profit	404
actually expended for all of the following:	405

(1) The purchase or lease of bingo supplies;

406

(2) The annual license fee required under section 2915.08 of	407
the Revised Code;	408

(3) Bank fees and service charges for a bingo session or game	409
account described in section 2915.10 of the Revised Code;	410

(4) Audits and accounting services;

411

(5) Safes;

412

(6) Cash registers;

413

(7) Hiring security personnel;

414

(8) Advertising bingo;

415

(9) Renting premises in which to conduct bingo;

416

(10) Tables and chairs;

417

(11) Any other product or service directly related to the	418
conduct of bingo that is authorized in rules adopted by the	419
attorney general under division (B)(1) of section 2915.08 of the	420
Revised Code.	421

(MM) "Person" has the same meaning as in section 1.59 of the	422
Revised Code and includes any firm or any other legal entity,	423
however organized.	424

(NN) "Revoke" means to void permanently all rights and	425
privileges of the holder of a license issued under section	426
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	427
gaming license issued by another jurisdiction.	428

(OO) "Suspend" means to interrupt temporarily all rights and	429
privileges of the holder of a license issued under section	430
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	431
gaming license issued by another jurisdiction.	432

(PP) "Distributor" means any person who purchases or obtains	433
bingo supplies and who sells, offers for sale, or otherwise	434
provides or offers to provide the bingo supplies to another person	435
for use in this state.	436

(QQ) "Manufacturer" means any person who assembles completed	437
bingo supplies from raw materials, other items, or subparts or who	438
modifies, converts, adds to, or removes parts from bingo supplies	439
to further their promotion or sale.	440

(RR) "Gross annual revenues" means the annual gross receipts	441
derived from the conduct of bingo described in division (S)(1) of	442
this section plus the annual net profit derived from the conduct	443
of bingo described in division (S)(2) of this section.	444

(SS) "Instant bingo ticket dispenser" means a mechanical	445
device that dispenses an instant bingo ticket or card as the sole	446
item of value dispensed and that has the following	447
characteristics:	448

(1) It is activated upon the insertion of United States	449
currency.	450

(2) It performs no gaming functions.

451

(3) It does not contain a video display monitor or generate	452
noise.	453

(4) It is not capable of displaying any numbers, letters,	454
symbols, or characters in winning or losing combinations.	455

(5) It does not simulate or display rolling or spinning	456
reels.	457

(6) It is incapable of determining whether a dispensed bingo	458
ticket or card is a winning or nonwinning ticket or card and	459
requires a winning ticket or card to be paid by a bingo game	460
operator.	461

(7) It may provide accounting and security features to aid in	462
accounting for the instant bingo tickets or cards it dispenses.	463

(8) It is not part of an electronic network and is not	464
interactive.	465

(TT)(1) "Electronic bingo aid" means an electronic device	466
used by a participant to monitor bingo cards or sheets purchased	467
at the time and place of a bingo session and that does all of the	468
following:	469

(a) It provides a means for a participant to input numbers	470
and letters announced by a bingo caller.	471

(b) It compares the numbers and letters entered by the	472
participant to the bingo faces previously stored in the memory of	473
the device.	474

(c) It identifies a winning bingo pattern.

475

(2) "Electronic bingo aid" does not include any device into	476
which a coin, currency, token, or an equivalent is inserted to	477
activate play.	478

(UU) "Deal of instant bingo tickets" means a single game of	479
instant bingo tickets all with the same serial number.	480

(VV) "Slot" machine means either of the following:

481

(1) Any mechanical, electronic, video, or digital device that	482
is capable of accepting anything of value, directly or indirectly,	483
from or on behalf of a player who gives the thing of value in the	484
hope of gain, the outcome of which is determined largely or wholly	485
by chance;	486

(2) Any mechanical, electronic, video, or digital device that	487
is capable of accepting anything of value, directly or indirectly,	488
from or on behalf of a player to conduct or dispense bingo or a	489
scheme or game of chance.	490

(WW) "Net profit from the proceeds of the sale of instant	491
bingo" means gross profit minus the ordinary, necessary, and	492
reasonable expense expended for the purchase of instant bingo	493
supplies.	494

(XX) "Charitable instant bingo organization" means an	495
organization that is exempt from federal income taxation under	496
subsection 501(a) and described in subsection 501(c)(3) of the	497
Internal Revenue Code and is a charitable organization as defined	498
in this section. A "charitable instant bingo organization" does	499
not include a charitable organization that is exempt from federal	500
income taxation under subsection 501(a) and described in	501
subsection 501(c)(3) of the Internal Revenue Code and that is	502
created by a veteran's organization or a fraternal organization in	503
regards to bingo conducted or assisted by a veteran's organization	504
or a fraternal organization pursuant to section 2915.13 of the	505
Revised Code.	506

Sec. 4505.06.  (A)(1) Application for a certificate of title	507
shall be made in a form prescribed by the registrar of motor	508
vehicles and shall be sworn to before a notary public or other	509
officer empowered to administer oaths. The application shall be	510
filed with the clerk of any court of common pleas. An application	511
for a certificate of title may be filed electronically by any	512
electronic means approved by the registrar in any county with the	513
clerk of the court of common pleas of that county. Any payments	514
required by this chapter shall be considered as accompanying any	515
electronically transmitted application when payment actually is	516
received by the clerk. Payment of any fee or taxes may be made by	517
electronic transfer of funds.	518

(2) The application for a certificate of title shall be	519
accompanied by the fee prescribed in section 4505.09 of the	520
Revised Code. The fee shall be retained by the clerk who issues	521
the certificate of title and shall be distributed in accordance	522
with that section. If a clerk of a court of common pleas, other	523
than the clerk of the court of common pleas of an applicant's	524
county of residence, issues a certificate of title to the	525
applicant, the clerk shall transmit data related to the	526
transaction to the automated title processing system.	527

(3) If a certificate of title previously has been issued for	528
a motor vehicle in this state, the application for a certificate	529
of title also shall be accompanied by that certificate of title	530
duly assigned, unless otherwise provided in this chapter. If a	531
certificate of title previously has not been issued for the motor	532
vehicle in this state, the application, unless otherwise provided	533
in this chapter, shall be accompanied by a manufacturer's or	534
importer's certificate or by a certificate of title of another	535
state from which the motor vehicle was brought into this state. If	536
the application refers to a motor vehicle last previously	537
registered in another state, the application also shall be	538
accompanied by the physical inspection certificate required by	539
section 4505.061 of the Revised Code. If the application is made	540
by two persons regarding a motor vehicle in which they wish to	541
establish joint ownership with right of survivorship, they may do	542
so as provided in section 2131.12 of the Revised Code. If the	543
applicant requests a designation of the motor vehicle in	544
beneficiary form so that upon the death of the owner of the motor	545
vehicle, ownership of the motor vehicle will pass to a designated	546
transfer-on-death beneficiary or beneficiaries, the applicant may	547
do so as provided in section 2131.13 of the Revised Code. A person	548
who establishes ownership of a motor vehicle that is transferable	549
on death in accordance with section 2131.13 of the Revised Code	550
may terminate that type of ownership or change the designation of	551
the transfer-on-death beneficiary or beneficiaries by applying for	552
a certificate of title pursuant to this section. The clerk shall	553
retain the evidence of title presented by the applicant and on	554
which the certificate of title is issued, except that, if an	555
application for a certificate of title is filed electronically by	556
an electronic motor vehicle dealer on behalf of the purchaser of a	557
motor vehicle, the clerk shall retain the completed electronic	558
record to which the dealer converted the certificate of title	559
application and other required documents. The electronic motor	560
vehicle dealer shall forward the actual application and all other	561
documents relating to the sale of the motor vehicle to any clerk	562
within thirty days after the certificate of title is issued. The	563
registrar, after consultation with the attorney general, shall	564
adopt rules that govern the location at which, and the manner in	565
which, are stored the actual application and all other documents	566
relating to the sale of a motor vehicle when an electronic motor	567
vehicle dealer files the application for a certificate of title	568
electronically on behalf of the purchaser.	569

The clerk shall use reasonable diligence in ascertaining	570
whether or not the facts in the application for a certificate of	571
title are true by checking the application and documents	572
accompanying it or the electronic record to which a dealer	573
converted the application and accompanying documents with the	574
records of motor vehicles in the clerk's office. If the clerk is	575
satisfied that the applicant is the owner of the motor vehicle	576
and that the application is in the proper form, the clerk, within	577
five business days after the application is filed, shall issue a	578
physical certificate of title over the clerk's signature and	579
sealed with the clerk's seal, unless the applicant specifically	580
requests the clerk not to issue a physical certificate of title	581
and instead to issue an electronic certificate of title. For	582
purposes of the transfer of a certificate of title, if the clerk	583
is satisfied that the secured party has duly discharged a lien	584
notation but has not canceled the lien notation with a clerk, the	585
clerk may cancel the lien notation on the automated title	586
processing system and notify the clerk of the county of origin.	587

(4) In the case of the sale of a motor vehicle to a general	588
buyer or user by a dealer, by a motor vehicle leasing dealer	589
selling the motor vehicle to the lessee or, in a case in which the	590
leasing dealer subleased the motor vehicle, the sublessee, at the	591
end of the lease agreement or sublease agreement, or by a	592
manufactured home broker, the certificate of title shall be	593
obtained in the name of the buyer by the dealer, leasing dealer,	594
or manufactured home broker, as the case may be, upon application	595
signed by the buyer. The certificate of title shall be issued, or	596
the process of entering the certificate of title application	597
information into the automated title processing system if a	598
physical certificate of title is not to be issued shall be	599
completed, within five business days after the application for	600
title is filed with the clerk. If the buyer of the motor vehicle	601
previously leased the motor vehicle and is buying the motor	602
vehicle at the end of the lease pursuant to that lease, the	603
certificate of title shall be obtained in the name of the buyer by	604
the motor vehicle leasing dealer who previously leased the motor	605
vehicle to the buyer or by the motor vehicle leasing dealer who	606
subleased the motor vehicle to the buyer under a sublease	607
agreement.	608

In all other cases, except as provided in section 4505.032	609
and division (D)(2) of section 4505.11 of the Revised Code, such	610
certificates shall be obtained by the buyer.	611

(5)(a)(i) If the certificate of title is being obtained in	612
the name of the buyer by a motor vehicle dealer or motor vehicle	613
leasing dealer and there is a security interest to be noted on the	614
certificate of title, the dealer or leasing dealer shall submit	615
the application for the certificate of title and payment of the	616
applicable tax to a clerk within seven business days after the	617
later of the delivery of the motor vehicle to the buyer or the	618
date the dealer or leasing dealer obtains the manufacturer's or	619
importer's certificate, or certificate of title issued in the name	620
of the dealer or leasing dealer, for the motor vehicle. Submission	621
of the application for the certificate of title and payment of the	622
applicable tax within the required seven business days may be	623
indicated by postmark or receipt by a clerk within that period.	624

(ii) Upon receipt of the certificate of title with the	625
security interest noted on its face, the dealer or leasing dealer	626
shall forward the certificate of title to the secured party at the	627
location noted in the financing documents or otherwise specified	628
by the secured party.	629

(iii) A motor vehicle dealer or motor vehicle leasing dealer	630
is liable to a secured party for a late fee of ten dollars per day	631
for each certificate of title application and payment of the	632
applicable tax that is submitted to a clerk more than seven	633
business days but less than twenty-one days after the later of the	634
delivery of the motor vehicle to the buyer or the date the dealer	635
or leasing dealer obtains the manufacturer's or importer's	636
certificate, or certificate of title issued in the name of the	637
dealer or leasing dealer, for the motor vehicle and, from then on,	638
twenty-five dollars per day until the application and applicable	639
tax are submitted to a clerk.	640

(b) In all cases of transfer of a motor vehicle, the	641
application for certificate of title shall be filed within thirty	642
days after the assignment or delivery of the motor vehicle. If an	643
application for a certificate of title is not filed within the	644
period specified in division (A)(5)(b) of this section, the clerk	645
shall collect a fee of five dollars for the issuance of the	646
certificate, except that no such fee shall be required from a	647
motor vehicle salvage dealer, as defined in division (A) of	648
section 4738.01 of the Revised Code, who immediately surrenders	649
the certificate of title for cancellation. The fee shall be in	650
addition to all other fees established by this chapter, and shall	651
be retained by the clerk. The registrar shall provide, on the	652
certificate of title form prescribed by section 4505.07 of the	653
Revised Code, language necessary to give evidence of the date on	654
which the assignment or delivery of the motor vehicle was made.	655

(6) As used in division (A) of this section, "lease	656
agreement," "lessee," and "sublease agreement" have the same	657
meanings as in section 4505.04 of the Revised Code.	658

(B) The clerk, except as provided in this section, shall	659
refuse to accept for filing any application for a certificate of	660
title and shall refuse to issue a certificate of title unless the	661
dealer or manufactured home broker or the applicant, in cases in	662
which the certificate shall be obtained by the buyer, submits with	663
the application payment of the tax levied by or pursuant to	664
Chapters 5739. and 5741. of the Revised Code based on the	665
purchaser's county of residence. Upon payment of the tax in	666
accordance with division (E) of this section, the clerk shall	667
issue a receipt prescribed by the registrar and agreed upon by the	668
tax commissioner showing payment of the tax or a receipt issued by	669
the commissioner showing the payment of the tax. When submitting	670
payment of the tax to the clerk, a dealer shall retain any	671
discount to which the dealer is entitled under section 5739.12 of	672
the Revised Code.	673

For receiving and disbursing such taxes paid to the clerk by	674
a resident of the clerk's county, the clerk may retain a poundage	675
fee of one and one one-hundredth per cent, and the clerk shall	676
pay the poundage fee into the certificate of title administration	677
fund created by section 325.33 of the Revised Code. The clerk	678
shall not retain a poundage fee from payments of taxes by persons	679
who do not reside in the clerk's county.	680

A clerk, however, may retain from the taxes paid to the clerk	681
an amount equal to the poundage fees associated with certificates	682
of title issued by other clerks of courts of common pleas to	683
applicants who reside in the first clerk's county. The registrar,	684
in consultation with the tax commissioner and the clerks of the	685
courts of common pleas, shall develop a report from the automated	686
title processing system that informs each clerk of the amount of	687
the poundage fees that the clerk is permitted to retain from those	688
taxes because of certificates of title issued by the clerks of	689
other counties to applicants who reside in the first clerk's	690
county.	691

In the case of casual sales of motor vehicles, as defined in	692
section 4517.01 of the Revised Code, the price for the purpose of	693
determining the tax shall be the purchase price on the assigned	694
certificate of title executed by the seller and filed with the	695
clerk by the buyer on a form to be prescribed by the registrar,	696
which shall be prima-facie evidence of the amount for the	697
determination of the tax.	698

(C)(1) If the transferor indicates on the certificate of	699
title that the odometer reflects mileage in excess of the designed	700
mechanical limit of the odometer, the clerk shall enter the phrase	701
"exceeds mechanical limits" following the mileage designation. If	702
the transferor indicates on the certificate of title that the	703
odometer reading is not the actual mileage, the clerk shall enter	704
the phrase "nonactual: warning - odometer discrepancy" following	705
the mileage designation. The clerk shall use reasonable care in	706
transferring the information supplied by the transferor, but is	707
not liable for any errors or omissions of the clerk or those of	708
the clerk's deputies in the performance of the clerk's duties	709
created by this chapter.	710

The registrar shall prescribe an affidavit in which the	711
transferor shall swear to the true selling price and, except as	712
provided in this division, the true odometer reading of the motor	713
vehicle. The registrar may prescribe an affidavit in which the	714
seller and buyer provide information pertaining to the odometer	715
reading of the motor vehicle in addition to that required by this	716
section, as such information may be required by the United States	717
secretary of transportation by rule prescribed under authority of	718
subchapter IV of the "Motor Vehicle Information and Cost Savings	719
Act," 86 Stat. 961 (1972), 15 U.S.C. 1981.	720

(2) Division (C)(1) of this section does not require the	721
giving of information concerning the odometer and odometer reading	722
of a motor vehicle when ownership of a motor vehicle is being	723
transferred as a result of a bequest, under the laws of intestate	724
succession, to a survivor pursuant to section 2106.18, 2131.12, or	725
4505.10 of the Revised Code, to a transfer-on-death beneficiary or	726
beneficiaries pursuant to section 2131.13 of the Reviseed Code, or	727
in connection with the creation of a security interest.	728

(D) When the transfer to the applicant was made in some	729
other state or in interstate commerce, the clerk, except as	730
provided in this section, shall refuse to issue any certificate	731
of title unless the tax imposed by or pursuant to Chapter 5741. of	732
the Revised Code based on the purchaser's county of residence has	733
been paid as evidenced by a receipt issued by the tax	734
commissioner, or unless the applicant submits with the application	735
payment of the tax. Upon payment of the tax in accordance with	736
division (E) of this section, the clerk shall issue a receipt	737
prescribed by the registrar and agreed upon by the tax	738
commissioner, showing payment of the tax.	739

For receiving and disbursing such taxes paid to the clerk by	740
a resident of the clerk's county, the clerk may retain a poundage	741
fee of one and one one-hundredth per cent. The clerk shall not	742
retain a poundage fee from payments of taxes by persons who do not	743
reside in the clerk's county.	744

A clerk, however, may retain from the taxes paid to the clerk	745
an amount equal to the poundage fees associated with certificates	746
of title issued by other clerks of courts of common pleas to	747
applicants who reside in the first clerk's county. The registrar,	748
in consultation with the tax commissioner and the clerks of the	749
courts of common pleas, shall develop a report from the automated	750
title processing system that informs each clerk of the amount of	751
the poundage fees that the clerk is permitted to retain from those	752
taxes because of certificates of title issued by the clerks of	753
other counties to applicants who reside in the first clerk's	754
county.	755

When the vendor is not regularly engaged in the business of	756
selling motor vehicles, the vendor shall not be required to	757
purchase a vendor's license or make reports concerning those	758
sales.	759

(E) The clerk shall accept any payment of a tax in cash, or	760
by cashier's check, certified check, draft, money order, or	761
teller check issued by any insured financial institution payable	762
to the clerk and submitted with an application for a certificate	763
of title under division (B) or (D) of this section. The clerk	764
also may accept payment of the tax by corporate, business, or	765
personal check, credit card, electronic transfer or wire transfer,	766
debit card, or any other accepted form of payment made payable to	767
the clerk. The clerk may require bonds, guarantees, or letters of	768
credit to ensure the collection of corporate, business, or	769
personal checks. Any service fee charged by a third party to a	770
clerk for the use of any form of payment may be paid by the clerk	771
from the certificate of title administration fund created in	772
section 325.33 of the Revised Code, or may be assessed by the	773
clerk upon the applicant as an additional fee. Upon collection,	774
the additional fees shall be paid by the clerk into that	775
certificate of title administration fund.	776

The clerk shall make a good faith effort to collect any	777
payment of taxes due but not made because the payment was returned	778
or dishonored, but the clerk is not personally liable for the	779
payment of uncollected taxes or uncollected fees. The clerk shall	780
notify the tax commissioner of any such payment of taxes that is	781
due but not made and shall furnish the information to the	782
commissioner that the commissioner requires. The clerk shall	783
deduct the amount of taxes due but not paid from the clerk's	784
periodic remittance of tax payments, in accordance with procedures	785
agreed upon by the tax commissioner. The commissioner may collect	786
taxes due by assessment in the manner provided in section 5739.13	787
of the Revised Code.	788

Any person who presents payment that is returned or	789
dishonored for any reason is liable to the clerk for payment of a	790
penalty over and above the amount of the taxes due. The clerk	791
shall determine the amount of the penalty, and the penalty shall	792
be no greater than that amount necessary to compensate the clerk	793
for banking charges, legal fees, or other expenses incurred by the	794
clerk in collecting the returned or dishonored payment. The	795
remedies and procedures provided in this section are in addition	796
to any other available civil or criminal remedies. Subsequently	797
collected penalties, poundage fees, and title fees, less any title	798
fee due the state, from returned or dishonored payments collected	799
by the clerk shall be paid into the certificate of title	800
administration fund. Subsequently collected taxes, less poundage	801
fees, shall be sent by the clerk to the treasurer of state at the	802
next scheduled periodic remittance of tax payments, with	803
information as the commissioner may require. The clerk may abate	804
all or any part of any penalty assessed under this division.	805

(F) In the following cases, the clerk shall accept for	806
filing an application and shall issue a certificate of title	807
without requiring payment or evidence of payment of the tax:	808

(1) When the purchaser is this state or any of its political	809
subdivisions, a church, or an organization whose purchases are	810
exempted by section 5739.02 of the Revised Code;	811

(2) When the transaction in this state is not a retail sale	812
as defined by section 5739.01 of the Revised Code;	813

(3) When the purchase is outside this state or in interstate	814
commerce and the purpose of the purchaser is not to use, store, or	815
consume within the meaning of section 5741.01 of the Revised Code;	816

(4) When the purchaser is the federal government;

817

(5) When the motor vehicle was purchased outside this state	818
for use outside this state;	819

(6) When the motor vehicle is purchased by a nonresident of	820
this state for immediate removal from this state, and will be	821
permanently titled and registered in another state, as provided	822
by division (B)(23) of section 5739.02 of the Revised Code, and	823
upon presentation of a copy of the affidavit provided by that	824
section, and a copy of the exemption certificate provided by	825
section 5739.03 of the Revised Code.	826

The clerk shall forward all payments of taxes, less poundage	827
fees, to the treasurer of state in a manner to be prescribed by	828
the tax commissioner and shall furnish information to the	829
commissioner as the commissioner requires.	830

(G) An application, as prescribed by the registrar and	831
agreed to by the tax commissioner, shall be filled out and sworn	832
to by the buyer of a motor vehicle in a casual sale. The	833
application shall contain the following notice in bold lettering:	834
"WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): You are	835
required by law to state the true selling price. A false	836
statement is in violation of section 2921.13 of the Revised Code	837
and is punishable by six months' imprisonment or a fine of up to	838
one thousand dollars, or both. All transfers are audited by the	839
department of taxation. The seller and buyer must provide any	840
information requested by the department of taxation. The buyer	841
may be assessed any additional tax found to be due."	842

(H) For sales of manufactured homes or mobile homes	843
occurring on or after January 1, 2000, the clerk shall accept for	844
filing, pursuant to Chapter 5739. of the Revised Code, an	845
application for a certificate of title for a manufactured home or	846
mobile home without requiring payment of any tax pursuant to	847
section 5739.02, 5741.021, 5741.022, or 5741.023 of the Revised	848
Code, or a receipt issued by the tax commissioner showing payment	849
of the tax. For sales of manufactured homes or mobile homes	850
occurring on or after January 1, 2000, the applicant shall pay to	851
the clerk an additional fee of five dollars for each certificate	852
of title issued by the clerk for a manufactured or mobile home	853
pursuant to division (H) of section 4505.11 of the Revised Code	854
and for each certificate of title issued upon transfer of	855
ownership of the home. The clerk shall credit the fee to the	856
county certificate of title administration fund, and the fee shall	857
be used to pay the expenses of archiving those certificates	858
pursuant to division (A) of section 4505.08 and division (H)(3) of	859
section 4505.11 of the Revised Code. The tax commissioner shall	860
administer any tax on a manufactured or mobile home pursuant to	861
Chapters 5739. and 5741. of the Revised Code.	862

(I) Every clerk shall have the capability to transact by	863
electronic means all procedures and transactions relating to the	864
issuance of motor vehicle certificates of title that are	865
described in the Revised Code as being accomplished by electronic	866
means.	867

Sec. 4981.20.  (A) Any real or personal property, or both, of	868
the Ohio rail development commission that is acquired,	869
constructed, reconstructed, enlarged, improved, furnished, or	870
equipped, or any combination thereof, and leased or subleased	871
under authority of sections 4981.11 to 4981.26 of the Revised Code	872
shall be subject to ad valorem, sales, use, and franchise taxes	873
and to zoning, planning, and building regulations and fees, to the	874
same extent and in the same manner as if the lessee-user or	875
sublessee-user thereof, rather than the issuer, had acquired,	876
constructed, reconstructed, enlarged, improved, furnished, or	877
equipped, or any combination thereof, such real or personal	878
property, and title thereto was in the name of such lessee-user or	879
sublessee-user.	880

The transfer of tangible personal property by lease or	881
sublease under authority of sections 4981.11 to 4981.26 of the	882
Revised Code is not a sale as used in Chapter 5739. of the Revised	883
Code. The exemptions provided in divisions (B)(1) and (14) of	884
section 5739.02 of the Revised Code shall not be applicable to	885
purchases for a project under sections 4981.11 to 4981.26 of the	886
Revised Code.	887

The issuer shall be exempt from all taxes on its real or	888
personal property, or both, which has been acquired, constructed,	889
reconstructed, enlarged, improved, furnished, or equipped, or any	890
combination thereof, under sections 4981.11 to 4981.26 of the	891
Revised Code so long as such property is used by the issuer for	892
purposes whichthat would otherwise exempt such property; has	893
ceased to be used by a former lessee-user or sublessee-user and is	894
not occupied or used; or has been acquired by the issuer but	895
development has not yet commenced. The exemption shall be	896
effective as of the date the exempt use begins. All taxes on the	897
exempt real or personal property for the year should be prorated	898
and the taxes for the exempt portion of the year shall be remitted	899
by the county auditor.	900

(B) Bonds issued under sections 4981.11 to 4981.26 of the	901
Revised Code, the transfer thereof, and the interest and other	902
income from the bonds, including any profit made on the sale	903
thereof, are free from taxation within the state.	904

Sec. 5721.31.  (A) After receipt of a duplicate of the	905
delinquent land list compiled under section 5721.011 of the	906
Revised Code, or a delinquent land list compiled previously under	907
that section, for a county having a population of at least two	908
hundred thousand according to the most recent federal decennial	909
census, the county treasurer may select from the list parcels of	910
delinquent land the lien against which the county treasurer may	911
attempt to transfer by the sale of tax certificates under sections	912
5721.30 to 5721.41 of the Revised Code. The county treasurer may	913
select only those eligible parcels for which taxes, assessments,	914
penalties, interest, and charges have not yet been paid or for	915
which a valid delinquent tax contract under section 323.31 of the	916
Revised Code is not in force. Each certificate shall contain the	917
same information as is required to be contained in the delinquent	918
land list. The county treasurer shall compile a separate list, the	919
list of parcels selected for tax certificate sales, including the	920
same information as is required to be included in the delinquent	921
land list.	922

Upon compiling the list of parcels selected for tax	923
certificate sales, the county treasurer may conduct a title search	924
for any parcel on the list.	925

(B)(1) When tax certificates are to be sold under section	926
5721.32 of the Revised Code with respect to parcels, the county	927
treasurer shall send written notice by certified or registered	928
mail to either the owner of record or all interested parties	929
discoverable through a title search, or both, of each parcel on	930
the list. A notice to an owner shall be sent to the owner's last	931
known tax mailing address. The notice shall inform the owner or	932
interested parties that a tax certificate will be offered for sale	933
on the parcel, and that the owner or interested parties may incur	934
additional expenses as a result of the sale.	935

(2) When tax certificates are to be sold under section	936
5721.33 of the Revised Code with respect to parcels, the county	937
treasurer, at least sixty days prior to the date of sale of such	938
tax certificates, shall send written notice of the sale by	939
certified or registered mail, or both, to the last known	940
tax-mailing address of the record owner of the property or parcel	941
andor to all parties with an interest in the property that has	942
been recorded in the property records of the county pursuant to	943
section 317.08 of the Revised Code, theor to such owner and all	944
such parties. The notice shall state that a tax certificate will	945
be offered for sale on the parcel, and that the owner or	946
interested parties may incur additional expenses as a result of	947
the sale.	948

(C) The county treasurer shall advertise the sale of tax	949
certificates under section 5721.32 of the Revised Code in a	950
newspaper of general circulation in the county, once a week for	951
two consecutive weeks. The advertisement shall include the date,	952
the time, and the place of the public auction, descriptions of the	953
parcels, and the names of the owners of record of the parcels.	954

(D) After the county treasurer has compiled the list of	955
parcels selected for tax certificate sales but before a tax	956
certificate respecting a parcel is sold, if the owner of record of	957
the parcel pays to the county treasurer in cash the full amount of	958
delinquent taxes, assessments, penalties, interest, and charges	959
then due and payable or enters into a valid delinquent tax	960
contract under section 323.31 of the Revised Code to pay that	961
amount, the owner of record of the parcel also shall pay a fee in	962
an amount prescribed by the treasurer to cover the administrative	963
costs of the treasurer under this section respecting the parcel	964
and credited to the tax certificate administration fund.	965

(E) A tax certificate administration fund shall be created in	966
the county treasury of each county selling tax certificates under	967
sections 5721.30 to 5721.41 of the Revised Code. The fund shall be	968
administered by the county treasurer, and used solely for the	969
purposes of sections 5721.30 to 5721.41 of the Revised Code. Any	970
fee received by the treasurer under sections 5721.30 to 5721.41 of	971
the Revised Code shall be credited to the fund, except the bidder	972
registration fee under division (B) of section 5721.32 of the	973
Revised Code and the county prosecuting attorney's fee under	974
division (B)(3) of section 5721.37 of the Revised Code.	975

(F) The county treasurers of more than one county may jointly	976
conduct a regional sale of tax certificates under section 5721.32	977
of the Revised Code. A regional sale shall be held at a single	978
location in one county, where the tax certificates from each of	979
the participating counties shall be offered for sale at public	980
auction. Before the regional sale, each county treasurer shall	981
advertise the sale for the parcels in the treasurer's county as	982
required by division (C) of this section. At the regional sale,	983
tax certificates shall be sold on parcels from one county at a	984
time, with all of the certificates for one county offered for sale	985
before any certificates for the next county are offered for sale.	986

(G) The tax commissioner shall prescribe the form of the tax	987
certificate under this section, and county treasurers shall use	988
the form prescribed by the commissioner.	989

Sec. 5739.01.  As used in this chapter:

990

(A) "Person" includes individuals, receivers, assignees,	991
trustees in bankruptcy, estates, firms, partnerships,	992
associations, joint-stock companies, joint ventures, clubs,	993
societies, corporations, the state and its political subdivisions,	994
and combinations of individuals of any form.	995

(B) "Sale" and "selling" include all of the following	996
transactions for a consideration in any manner, whether absolutely	997
or conditionally, whether for a price or rental, in money or by	998
exchange, and by any means whatsoever:	999

(1) All transactions by which title or possession, or both,	1000
of tangible personal property, is or is to be transferred, or a	1001
license to use or consume tangible personal property is or is to	1002
be granted;	1003

(2) All transactions by which lodging by a hotel is or is to	1004
be furnished to transient guests;	1005

(3) All transactions by which:

1006

(a) An item of tangible personal property is or is to be	1007
repaired, except property, the purchase of which would not be	1008
subject to the tax imposed by section 5739.02 of the Revised Code;	1009

(b) An item of tangible personal property is or is to be	1010
installed, except property, the purchase of which would not be	1011
subject to the tax imposed by section 5739.02 of the Revised Code	1012
or property that is or is to be incorporated into and will become	1013
a part of a production, transmission, transportation, or	1014
distribution system for the delivery of a public utility service;	1015

(c) The service of washing, cleaning, waxing, polishing, or	1016
painting a motor vehicle is or is to be furnished;	1017

(d) Industrial laundry cleaning services are or are to be	1018
provided;	1019

(e) Automatic data processing, computer services, or	1020
electronic information services are or are to be provided for use	1021
in business when the true object of the transaction is the receipt	1022
by the consumer of automatic data processing, computer services,	1023
or electronic information services rather than the receipt of	1024
personal or professional services to which automatic data	1025
processing, computer services, or electronic information services	1026
are incidental or supplemental. Notwithstanding any other	1027
provision of this chapter, such transactions that occur between	1028
members of an affiliated group are not sales. An affiliated group	1029
means two or more persons related in such a way that one person	1030
owns or controls the business operation of another member of the	1031
group. In the case of corporations with stock, one corporation	1032
owns or controls another if it owns more than fifty per cent of	1033
the other corporation's common stock with voting rights.	1034

(f) Telecommunications service, other than mobile	1035
telecommunications service after July 31, 2002, is or is to be	1036
provided that originates or terminates in this state and is	1037
charged in the records of the telecommunications service vendor to	1038
the consumer's telephone number or account in this state, or that	1039
both originates and terminates in this state; but does not include	1040
transactions by which telecommunications service is paid for by	1041
using a prepaid authorization number or prepaid telephone calling	1042
card, or by which local telecommunications service is obtained	1043
from a coin-operated telephone and paid for by using coin;	1044

(g) Landscaping and lawn care service is or is to be	1045
provided;	1046

(h) Private investigation and security service is or is to be	1047
provided;	1048

(i) Information services or tangible personal property is	1049
provided or ordered by means of a nine hundred telephone call;	1050

(j) Building maintenance and janitorial service is or is to	1051
be provided;	1052

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

1053

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

1054

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

1055

(n) Physical fitness facility service is or is to be	1056
provided;	1057

(o) Recreation and sports club service is or is to be	1058
provided.	1059

(p) After July 31, 2002, mobile telecommunications service is	1060
or is to be provided in this state when that service is sitused to	1061
this state pursuant to the "Mobile Telecommunications Sourcing	1062
Act," P. Pub. L. No. 106-252, 114 Stat. 626 to 632 (2000), 4	1063
U.S.C.A. 116 to 126, as amended.	1064

(4) All transactions by which printed, imprinted,	1065
overprinted, lithographic, multilithic, blueprinted, photostatic,	1066
or other productions or reproductions of written or graphic matter	1067
are or are to be furnished or transferred;	1068

(5) The production or fabrication of tangible personal	1069
property for a consideration for consumers who furnish either	1070
directly or indirectly the materials used in the production of	1071
fabrication work; and include the furnishing, preparing, or	1072
serving for a consideration of any tangible personal property	1073
consumed on the premises of the person furnishing, preparing, or	1074
serving such tangible personal property. Except as provided in	1075
section 5739.03 of the Revised Code, a construction contract	1076
pursuant to which tangible personal property is or is to be	1077
incorporated into a structure or improvement on and becoming a	1078
part of real property is not a sale of such tangible personal	1079
property. The construction contractor is the consumer of such	1080
tangible personal property, provided that the sale and	1081
installation of carpeting, the sale and installation of	1082
agricultural land tile, the sale and erection or installation of	1083
portable grain bins, or the provision of landscaping and lawn care	1084
service and the transfer of property as part of such service is	1085
never a construction contract. The transfer of copyrighted motion	1086
picture films for exhibition purposes is not a sale, except such	1087
films as are used solely for advertising purposes. Other than as	1088
provided in this section, "sale" and "selling" do not include	1089
transfers of interest in leased property where the original lessee	1090
and the terms of the original lease agreement remain unchanged, or	1091
professional, insurance, or personal service transactions that	1092
involve the transfer of tangible personal property as an	1093
inconsequential element, for which no separate charges are made.	1094

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

1095

(a) "Agricultural land tile" means fired clay or concrete	1096
tile, or flexible or rigid perforated plastic pipe or tubing,	1097
incorporated or to be incorporated into a subsurface drainage	1098
system appurtenant to land used or to be used directly in	1099
production by farming, agriculture, horticulture, or floriculture.	1100
The term does not include such materials when they are or are to	1101
be incorporated into a drainage system appurtenant to a building	1102
or structure even if the building or structure is used or to be	1103
used in such production.	1104

(b) "Portable grain bin" means a structure that is used or to	1105
be used by a person engaged in farming or agriculture to shelter	1106
the person's grain and that is designed to be disassembled without	1107
significant damage to its component parts.	1108

(6) All transactions in which all of the shares of stock of a	1109
closely held corporation are transferred, if the corporation is	1110
not engaging in business and its entire assets consist of boats,	1111
planes, motor vehicles, or other tangible personal property	1112
operated primarily for the use and enjoyment of the shareholders;	1113

(7) All transactions in which a warranty, maintenance or	1114
service contract, or similar agreement by which the vendor of the	1115
warranty, contract, or agreement agrees to repair or maintain the	1116
tangible personal property of the consumer is or is to be	1117
provided;	1118

(8) All transactions by which a prepaid authorization number	1119
or a prepaid telephone calling card is or is to be transferred;	1120

(9) The transfer of copyrighted motion picture films used	1121
solely for advertising purposes, except that the transfer of such	1122
films for exhibition purposes is not a sale.	1123

Other than as provided in this section, "sale" and "selling"	1124
do not include transfers of interest in leased property where the	1125
original lessee and the terms of the original lease agreement	1126
remain unchanged; or professional, insurance, or personal service	1127
transactions that involve the transfer of tangible personal	1128
property as an inconsequential element, for which no separate	1129
charges are made.	1130

(C) "Vendor" means the person providing the service or by	1131
whom the transfer effected or license given by a sale is or is to	1132
be made or given and, for sales described in division (B)(3)(i) of	1133
this section, the telecommunications service vendor that provides	1134
the nine hundred telephone service; if two or more persons are	1135
engaged in business at the same place of business under a single	1136
trade name in which all collections on account of sales by each	1137
are made, such persons shall constitute a single vendor.	1138

Physicians, dentists, hospitals, and veterinarians who are	1139
engaged in selling tangible personal property as received from	1140
others, such as eyeglasses, mouthwashes, dentifrices, or similar	1141
articles, are vendors. Veterinarians who are engaged in	1142
transferring to others for a consideration drugs, the dispensing	1143
of which does not require an order of a licensed veterinarian or	1144
physician under federal law, are vendors.	1145

(D)(1) "Consumer" means the person for whom the service is	1146
provided, to whom the transfer effected or license given by a sale	1147
is or is to be made or given, to whom the service described in	1148
division (B)(3)(f) or (i) of this section is charged, or to whom	1149
the admission is granted.	1150

(2) Physicians, dentists, hospitals, and blood banks operated	1151
by nonprofit institutions and persons licensed to practice	1152
veterinary medicine, surgery, and dentistry are consumers of all	1153
tangible personal property and services purchased by them in	1154
connection with the practice of medicine, dentistry, the rendition	1155
of hospital or blood bank service, or the practice of veterinary	1156
medicine, surgery, and dentistry. In addition to being consumers	1157
of drugs administered by them or by their assistants according to	1158
their direction, veterinarians also are consumers of drugs that	1159
under federal law may be dispensed only by or upon the order of a	1160
licensed veterinarian or physician, when transferred by them to	1161
others for a consideration to provide treatment to animals as	1162
directed by the veterinarian.	1163

(3) A person who performs a facility management, or similar	1164
service contract for a contractee is a consumer of all tangible	1165
personal property and services purchased for use in connection	1166
with the performance of such contract, regardless of whether title	1167
to any such property vests in the contractee. The purchase of such	1168
property and services is not subject to the exception for resale	1169
under division (E)(1) of this section.	1170

(4)(a) In the case of a person who purchases printed matter	1171
for the purpose of distributing it or having it distributed to the	1172
public or to a designated segment of the public, free of charge,	1173
that person is the consumer of that printed matter, and the	1174
purchase of that printed matter for that purpose is a sale.	1175

(b) In the case of a person who produces, rather than	1176
purchases, printed matter for the purpose of distributing it or	1177
having it distributed to the public or to a designated segment of	1178
the public, free of charge, that person is the consumer of all	1179
tangible personal property and services purchased for use or	1180
consumption in the production of that printed matter. That person	1181
is not entitled to claim exception under division (E)(8) of this	1182
section for any material incorporated into the printed matter or	1183
any equipment, supplies, or services primarily used to produce the	1184
printed matter.	1185

(c) The distribution of printed matter to the public or to a	1186
designated segment of the public, free of charge, is not a sale to	1187
the members of the public to whom the printed matter is	1188
distributed or to any persons who purchase space in the printed	1189
matter for advertising or other purposes.	1190

(5) A person who makes sales of any of the services listed in	1191
division (B)(3) of this section is the consumer of any tangible	1192
personal property used in performing the service. The purchase of	1193
that property is not subject to the resale exception under	1194
division (E)(1) of this section.	1195

(6) A person who engages in highway transportation for hire	1196
is the consumer of all packaging materials purchased by that	1197
person and used in performing the service, except for packaging	1198
materials sold by such person in a transaction separate from the	1199
service.	1200

(E) "Retail sale" and "sales at retail" include all sales	1201
except those in which the purpose of the consumer is:	1202

(1) To resell the thing transferred or benefit of the service	1203
provided, by a person engaging in business, in the form in which	1204
the same is, or is to be, received by the person;	1205

(2) To incorporate the thing transferred as a material or a	1206
part, into tangible personal property to be produced for sale by	1207
manufacturing, assembling, processing, or refining, or to use or	1208
consume the thing transferred directly in producing a product for	1209
sale by mining, including without limitation the extraction from	1210
the earth of all substances that are classed geologically as	1211
minerals, production of crude oil and natural gas, farming,	1212
agriculture, horticulture, or floriculture, and persons engaged in	1213
rendering farming, agricultural, horticultural, or floricultural	1214
services, and services in the exploration for, and production of,	1215
crude oil and natural gas, for others are deemed engaged directly	1216
in farming, agriculture, horticulture, and floriculture, or	1217
exploration for, and production of, crude oil and natural gas;	1218
directly in the rendition of a public utility service, except that	1219
the sales tax levied by section 5739.02 of the Revised Code shall	1220
be collected upon all meals, drinks, and food for human	1221
consumption sold upon Pullman and railroad coaches. This paragraph	1222
does not exempt or except from "retail sale" or "sales at retail"	1223
the sale of tangible personal property that is to be incorporated	1224
into a structure or improvement to real property.	1225

(3) To hold the thing transferred as security for the	1226
performance of an obligation of the vendor;	1227

(4) To use or consume the thing transferred in the process of	1228
reclamation as required by Chapters 1513. and 1514. of the Revised	1229
Code;	1230

(5) To resell, hold, use, or consume the thing transferred as	1231
evidence of a contract of insurance;	1232

(6) To use or consume the thing directly in commercial	1233
fishing;	1234

(7) To incorporate the thing transferred as a material or a	1235
part into, or to use or consume the thing transferred directly in	1236
the production of, magazines distributed as controlled circulation	1237
publications;	1238

(8) To use or consume the thing transferred in the production	1239
and preparation in suitable condition for market and sale of	1240
printed, imprinted, overprinted, lithographic, multilithic,	1241
blueprinted, photostatic, or other productions or reproductions of	1242
written or graphic matter;	1243

(9) To use the thing transferred, as described in section	1244
5739.011 of the Revised Code, primarily in a manufacturing	1245
operation to produce tangible personal property for sale;	1246

(10) To use the benefit of a warranty, maintenance or service	1247
contract, or similar agreement, as defined in division (B)(7) of	1248
this section, to repair or maintain tangible personal property, if	1249
all of the property that is the subject of the warranty, contract,	1250
or agreement would be exempt on its purchase from the tax imposed	1251
by section 5739.02 of the Revised Code;	1252

(11) To use the thing transferred as qualified research and	1253
development equipment;	1254

(12) To use or consume the thing transferred primarily in	1255
storing, transporting, mailing, or otherwise handling purchased	1256
sales inventory in a warehouse, distribution center, or similar	1257
facility when the inventory is primarily distributed outside this	1258
state to retail stores of the person who owns or controls the	1259
warehouse, distribution center, or similar facility, to retail	1260
stores of an affiliated group of which that person is a member, or	1261
by means of direct marketing. Division (E)(12) of this section	1262
does not apply to motor vehicles registered for operation on the	1263
public highways. As used in division (E)(12) of this section,	1264
"affiliated group" has the same meaning as in division (B)(3)(e)	1265
of this section and "direct marketing" has the same meaning as in	1266
division (B)(36) of section 5739.02 of the Revised Code.	1267

(13) To use or consume the thing transferred to fulfill a	1268
contractual obligation incurred by a warrantor pursuant to a	1269
warranty provided as a part of the price of the tangible personal	1270
property sold or by a vendor of a warranty, maintenance or service	1271
contract, or similar agreement the provision of which is defined	1272
as a sale under division (B)(7) of this section;	1273

(14) To use or consume the thing transferred in the	1274
production of a newspaper for distribution to the public;	1275

(15) To use tangible personal property to perform a service	1276
listed in division (B)(3) of this section, if the property is or	1277
is to be permanently transferred to the consumer of the service as	1278
an integral part of the performance of the service.	1279

As used in division (E) of this section, "thing" includes all	1280
transactions included in divisions (B)(3)(a), (b), and (e) of this	1281
section.	1282

Sales conducted through a coin-operated device that activates	1283
vacuum equipment or equipment that dispenses water, whether or not	1284
in combination with soap or other cleaning agents or wax, to the	1285
consumer for the consumer's use on the premises in washing,	1286
cleaning, or waxing a motor vehicle, provided no other personal	1287
property or personal service is provided as part of the	1288
transaction, are not retail sales or sales at retail.	1289

(F) "Business" includes any activity engaged in by any person	1290
with the object of gain, benefit, or advantage, either direct or	1291
indirect. "Business" does not include the activity of a person in	1292
managing and investing the person's own funds.	1293

(G) "Engaging in business" means commencing, conducting, or	1294
continuing in business, and liquidating a business when the	1295
liquidator thereof holds itself out to the public as conducting	1296
such business. Making a casual sale is not engaging in business.	1297

(H)(1) "Price," except as provided in divisions (H)(2) and	1298
(3) of this section, means the aggregate value in money of	1299
anything paid or delivered, or promised to be paid or delivered,	1300
in the complete performance of a retail sale, without any	1301
deduction on account of the cost of the property sold, cost of	1302
materials used, labor or service cost, interest, discount paid or	1303
allowed after the sale is consummated, or any other expense. If	1304
the retail sale consists of the rental or lease of tangible	1305
personal property, "price" means the aggregate value in money of	1306
anything paid or delivered, or promised to be paid or delivered,	1307
in the complete performance of the rental or lease, without any	1308
deduction for tax, interest, labor or service charge, damage	1309
liability waiver, termination or damage charge, discount paid or	1310
allowed after the lease is consummated, or any other expense.	1311
Except as provided in division (H)(4) of this section, the sales	1312
tax shall be calculated and collected by the lessor on each	1313
payment made by the lessee. "Price" does not include the	1314
consideration received as a deposit refundable to the consumer	1315
upon return of a beverage container, the consideration received as	1316
a deposit on a carton or case that is used for such returnable	1317
containers, or the consideration received as a refundable security	1318
deposit for the use of tangible personal property to the extent	1319
that it actually is refunded, if the consideration for such	1320
refundable deposit is separately stated from the consideration	1321
received or to be received for the tangible personal property	1322
transferred in the retail sale. Such separation must appear in the	1323
sales agreement or on the initial invoice or initial billing	1324
rendered by the vendor to the consumer. "Price" also does not	1325
include delivery charges that are separately stated on the initial	1326
invoice or initial billing rendered by the vendor. Price is the	1327
amount received inclusive of the tax, provided the vendor	1328
establishes to the satisfaction of the tax commissioner that the	1329
tax was added to the price. When the price includes both a charge	1330
for tangible personal property and a charge for providing a	1331
service and the sale of the property and the charge for the	1332
service are separately taxable, or have a separately determinable	1333
tax status, the price shall be separately stated for each such	1334
charge so the tax can be correctly computed and charged.	1335

The tax collected by the vendor from the consumer under this	1336
chapter is not part of the price, but is a tax collection for the	1337
benefit of the state and of counties levying an additional sales	1338
tax pursuant to section 5739.021 or 5739.026 of the Revised Code	1339
and of transit authorities levying an additional sales tax	1340
pursuant to section 5739.023 of the Revised Code. Except for the	1341
discount authorized in section 5739.12 of the Revised Code and the	1342
effects of any rounding pursuant to section 5703.055 of the	1343
Revised Code, no person other than the state or such a county or	1344
transit authority shall derive any benefit from the collection or	1345
payment of such tax.	1346

As used in division (H)(1) of this section, "delivery	1347
charges" means charges by the vendor for preparation and delivery	1348
to a location designated by the consumer of tangible personal	1349
property or a service, including transportation, shipping,	1350
postage, handling, crating, and packing.	1351

(2) In the case of a sale of any new motor vehicle by a new	1352
motor vehicle dealer, as defined in section 4517.01 of the Revised	1353
Code, in which another motor vehicle is accepted by the dealer as	1354
part of the consideration received, "price" has the same meaning	1355
as in division (H)(1) of this section, reduced by the credit	1356
afforded the consumer by the dealer for the motor vehicle received	1357
in trade.	1358

(3) In the case of a sale of any watercraft or outboard motor	1359
by a watercraft dealer licensed in accordance with section	1360
1547.543 of the Revised Code, in which another watercraft,	1361
watercraft and trailer, or outboard motor is accepted by the	1362
dealer as part of the consideration received, "price" has the same	1363
meaning as in division (H)(1) of this section, reduced by the	1364
credit afforded the consumer by the dealer for the watercraft,	1365
watercraft and trailer, or outboard motor received in trade.	1366

(4) In the case of the lease of any motor vehicle designed by	1367
the manufacturer to carry a load of not more than one ton,	1368
watercraft, outboard motor, or aircraft, or the lease of any	1369
tangible personal property, other than motor vehicles designed by	1370
the manufacturer to carry a load of more than one ton, to be used	1371
by the lessee primarily for business purposes, the sales tax shall	1372
be collected by the vendor at the time the lease is consummated	1373
and shall be calculated by the vendor on the basis of the total	1374
amount to be paid by the lessee under the lease agreement. If the	1375
total amount of the consideration for the lease includes amounts	1376
that are not calculated at the time the lease is executed, the tax	1377
shall be calculated and collected by the vendor at the time such	1378
amounts are billed to the lessee. In the case of an open-end	1379
lease, the sales tax shall be calculated by the vendor on the	1380
basis of the total amount to be paid during the initial fixed term	1381
of the lease, and then for each subsequent renewal period as it	1382
comes due.	1383

As used in divisions (H)(3) and (4) of this section, "motor	1384
vehicle" has the same meaning as in section 4501.01 of the Revised	1385
Code, and "watercraft" includes an outdrive unit attached to the	1386
watercraft.	1387

(I) "Receipts" means the total amount of the prices of the	1388
sales of vendors, provided that cash discounts allowed and taken	1389
on sales at the time they are consummated are not included, minus	1390
any amount deducted as a bad debt pursuant to section 5739.121 of	1391
the Revised Code. "Receipts" does not include the sale price of	1392
property returned or services rejected by consumers when the full	1393
sale price and tax are refunded either in cash or by credit.	1394

(J) "Place of business" means any location at which a person	1395
engages in business.	1396

(K) "Premises" includes any real property or portion thereof	1397
upon which any person engages in selling tangible personal	1398
property at retail or making retail sales and also includes any	1399
real property or portion thereof designated for, or devoted to,	1400
use in conjunction with the business engaged in by such person.	1401

(L) "Casual sale" means a sale of an item of tangible	1402
personal property that was obtained by the person making the sale,	1403
through purchase or otherwise, for the person's own use and was	1404
previously subject to any state's taxing jurisdiction on its sale	1405
or use, and includes such items acquired for the seller's use	1406
that are sold by an auctioneer employed directly by the person for	1407
such purpose, provided the location of such sales is not the	1408
auctioneer's permanent place of business. As used in this	1409
division, "permanent place of business" includes any location	1410
where such auctioneer has conducted more than two auctions during	1411
the year.	1412

(M) "Hotel" means every establishment kept, used, maintained,	1413
advertised, or held out to the public to be a place where sleeping	1414
accommodations are offered to guests, in which five or more rooms	1415
are used for the accommodation of such guests, whether the rooms	1416
are in one or several structures.	1417

(N) "Transient guests" means persons occupying a room or	1418
rooms for sleeping accommodations for less than thirty consecutive	1419
days.	1420

(O) "Making retail sales" means the effecting of transactions	1421
wherein one party is obligated to pay the price and the other	1422
party is obligated to provide a service or to transfer title to or	1423
possession of the item sold. "Making retail sales" does not	1424
include the preliminary acts of promoting or soliciting the retail	1425
sales, other than the distribution of printed matter which	1426
displays or describes and prices the item offered for sale, nor	1427
does it include delivery of a predetermined quantity of tangible	1428
personal property or transportation of property or personnel to or	1429
from a place where a service is performed, regardless of whether	1430
the vendor is a delivery vendor.	1431

(P) "Used directly in the rendition of a public utility	1432
service" means that property which is to be incorporated into and	1433
will become a part of the consumer's production, transmission,	1434
transportation, or distribution system and that retains its	1435
classification as tangible personal property after such	1436
incorporation; fuel or power used in the production, transmission,	1437
transportation, or distribution system; and tangible personal	1438
property used in the repair and maintenance of the production,	1439
transmission, transportation, or distribution system, including	1440
only such motor vehicles as are specially designed and equipped	1441
for such use. Tangible personal property and services used	1442
primarily in providing highway transportation for hire are not	1443
used in providing a public utility service as defined in this	1444
division.	1445

(Q) "Refining" means removing or separating a desirable	1446
product from raw or contaminated materials by distillation or	1447
physical, mechanical, or chemical processes.	1448

(R) "Assembly" and "assembling" mean attaching or fitting	1449
together parts to form a product, but do not include packaging a	1450
product.	1451

(S) "Manufacturing operation" means a process in which	1452
materials are changed, converted, or transformed into a different	1453
state or form from which they previously existed and includes	1454
refining materials, assembling parts, and preparing raw materials	1455
and parts by mixing, measuring, blending, or otherwise committing	1456
such materials or parts to the manufacturing process.	1457
"Manufacturing operation" does not include packaging.	1458

(T) "Fiscal officer" means, with respect to a regional	1459
transit authority, the secretary-treasurer thereof, and with	1460
respect to a county that is a transit authority, the fiscal	1461
officer of the county transit board if one is appointed pursuant	1462
to section 306.03 of the Revised Code or the county auditor if the	1463
board of county commissioners operates the county transit system.	1464

(U) "Transit authority" means a regional transit authority	1465
created pursuant to section 306.31 of the Revised Code or a county	1466
in which a county transit system is created pursuant to section	1467
306.01 of the Revised Code. For the purposes of this chapter, a	1468
transit authority must extend to at least the entire area of a	1469
single county. A transit authority that includes territory in more	1470
than one county must include all the area of the most populous	1471
county that is a part of such transit authority. County population	1472
shall be measured by the most recent census taken by the United	1473
States census bureau.	1474

(V) "Legislative authority" means, with respect to a regional	1475
transit authority, the board of trustees thereof, and with respect	1476
to a county that is a transit authority, the board of county	1477
commissioners.	1478

(W) "Territory of the transit authority" means all of the	1479
area included within the territorial boundaries of a transit	1480
authority as they from time to time exist. Such territorial	1481
boundaries must at all times include all the area of a single	1482
county or all the area of the most populous county that is a part	1483
of such transit authority. County population shall be measured by	1484
the most recent census taken by the United States census bureau.	1485

(X) "Providing a service" means providing or furnishing	1486
anything described in division (B)(3) of this section for	1487
consideration.	1488

(Y)(1)(a) "Automatic data processing" means processing of	1489
others' data, including keypunching or similar data entry services	1490
together with verification thereof, or providing access to	1491
computer equipment for the purpose of processing data.	1492

(b) "Computer services" means providing services consisting	1493
of specifying computer hardware configurations and evaluating	1494
technical processing characteristics, computer programming, and	1495
training of computer programmers and operators, provided in	1496
conjunction with and to support the sale, lease, or operation of	1497
taxable computer equipment or systems.	1498

(c) "Electronic information services" means providing access	1499
to computer equipment by means of telecommunications equipment for	1500
the purpose of either of the following:	1501

(i) Examining or acquiring data stored in or accessible to	1502
the computer equipment;	1503

(ii) Placing data into the computer equipment to be retrieved	1504
by designated recipients with access to the computer equipment.	1505

(d) "Automatic data processing, computer services, or	1506
electronic information services" shall not include personal or	1507
professional services.	1508

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	1509
section, "personal and professional services" means all services	1510
other than automatic data processing, computer services, or	1511
electronic information services, including but not limited to:	1512

(a) Accounting and legal services such as advice on tax	1513
matters, asset management, budgetary matters, quality control,	1514
information security, and auditing and any other situation where	1515
the service provider receives data or information and studies,	1516
alters, analyzes, interprets, or adjusts such material;	1517

(b) Analyzing business policies and procedures;

1518

(c) Identifying management information needs;

1519

(d) Feasibility studies, including economic and technical	1520
analysis of existing or potential computer hardware or software	1521
needs and alternatives;	1522

(e) Designing policies, procedures, and custom software for	1523
collecting business information, and determining how data should	1524
be summarized, sequenced, formatted, processed, controlled, and	1525
reported so that it will be meaningful to management;	1526

(f) Developing policies and procedures that document how	1527
business events and transactions are to be authorized, executed,	1528
and controlled;	1529

(g) Testing of business procedures;

1530

(h) Training personnel in business procedure applications;

1531

(i) Providing credit information to users of such information	1532
by a consumer reporting agency, as defined in the "Fair Credit	1533
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or	1534
as hereafter amended, including but not limited to gathering,	1535
organizing, analyzing, recording, and furnishing such information	1536
by any oral, written, graphic, or electronic medium;	1537

(j) Providing debt collection services by any oral, written,	1538
graphic, or electronic means.	1539

The services listed in divisions (Y)(2)(a) to (j) of this	1540
section are not automatic data processing or computer services.	1541

(Z) "Highway transportation for hire" means the	1542
transportation of personal property belonging to others for	1543
consideration by any of the following:	1544

(1) The holder of a permit or certificate issued by this	1545
state or the United States authorizing the holder to engage in	1546
transportation of personal property belonging to others for	1547
consideration over or on highways, roadways, streets, or any	1548
similar public thoroughfare;	1549

(2) A person who engages in the transportation of personal	1550
property belonging to others for consideration over or on	1551
highways, roadways, streets, or any similar public thoroughfare	1552
but who could not have engaged in such transportation on December	1553
11, 1985, unless the person was the holder of a permit or	1554
certificate of the types described in division (Z)(1) of this	1555
section;	1556

(3) A person who leases a motor vehicle to and operates it	1557
for a person described by division (Z)(1) or (2) of this section.	1558

(AA) "Telecommunications service" means the transmission of	1559
any interactive, two-way electromagnetic communications, including	1560
voice, image, data, and information, through the use of any medium	1561
such as wires, cables, microwaves, cellular radio, radio waves,	1562
light waves, or any combination of those or similar media.	1563
"Telecommunications service" includes message toll service even	1564
though the vendor provides the message toll service by means of	1565
wide area transmission type service or private communications	1566
service purchased from another telecommunications service	1567
provider, but does not include any of the following:	1568

(1) Sales of incoming or outgoing wide area transmission	1569
service or wide area transmission type service, including eight	1570
hundred or eight-hundred-type service, to the person contracting	1571
for the receipt of that service;	1572

(2) Sales of private communications service to the person	1573
contracting for the receipt of that service that entitles the	1574
purchaser to exclusive or priority use of a communications channel	1575
or group of channels between exchanges;	1576

(3) Sales of telecommunications service by companies subject	1577
to the excise tax imposed by Chapter 5727. of the Revised Code;	1578

(4) Sales of telecommunications service to a provider of	1579
telecommunications service, including access services, for use in	1580
providing telecommunications service;	1581

(5) Value-added nonvoice services in which computer	1582
processing applications are used to act on the form, content,	1583
code, or protocol of the information to be transmitted;	1584

(6) Transmission of interactive video programming by a cable	1585
television system as defined in section 505.90 of the Revised	1586
Code;	1587

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

1588

(BB) "Industrial laundry cleaning services" means removing	1589
soil or dirt from or supplying towels, linens, or articles of	1590
clothing that belong to others and are used in a trade or	1591
business.	1592

(CC) "Magazines distributed as controlled circulation	1593
publications" means magazines containing at least twenty-four	1594
pages, at least twenty-five per cent editorial content, issued at	1595
regular intervals four or more times a year, and circulated	1596
without charge to the recipient, provided that such magazines are	1597
not owned or controlled by individuals or business concerns which	1598
conduct such publications as an auxiliary to, and essentially for	1599
the advancement of the main business or calling of, those who own	1600
or control them.	1601

(DD) "Landscaping and lawn care service" means the services	1602
of planting, seeding, sodding, removing, cutting, trimming,	1603
pruning, mulching, aerating, applying chemicals, watering,	1604
fertilizing, and providing similar services to establish, promote,	1605
or control the growth of trees, shrubs, flowers, grass, ground	1606
cover, and other flora, or otherwise maintaining a lawn or	1607
landscape grown or maintained by the owner for ornamentation or	1608
other nonagricultural purpose. However, "landscaping and lawn care	1609
service" does not include the providing of such services by a	1610
person who has less than five thousand dollars in sales of such	1611
services during the calendar year.	1612

(EE) "Private investigation and security service" means the	1613
performance of any activity for which the provider of such service	1614
is required to be licensed pursuant to Chapter 4749. of the	1615
Revised Code, or would be required to be so licensed in performing	1616
such services in this state, and also includes the services of	1617
conducting polygraph examinations and of monitoring or overseeing	1618
the activities on or in, or the condition of, the consumer's home,	1619
business, or other facility by means of electronic or similar	1620
monitoring devices. "Private investigation and security service"	1621
does not include special duty services provided by off-duty police	1622
officers, deputy sheriffs, and other peace officers regularly	1623
employed by the state or a political subdivision.	1624

(FF) "Information services" means providing conversation,	1625
giving consultation or advice, playing or making a voice or other	1626
recording, making or keeping a record of the number of callers,	1627
and any other service provided to a consumer by means of a nine	1628
hundred telephone call, except when the nine hundred telephone	1629
call is the means by which the consumer makes a contribution to a	1630
recognized charity.	1631

(GG) "Research and development" means designing, creating, or	1632
formulating new or enhanced products, equipment, or manufacturing	1633
processes, and also means conducting scientific or technological	1634
inquiry and experimentation in the physical sciences with the goal	1635
of increasing scientific knowledge which may reveal the bases for	1636
new or enhanced products, equipment, or manufacturing processes.	1637

(HH) "Qualified research and development equipment" means	1638
capitalized tangible personal property, and leased personal	1639
property that would be capitalized if purchased, used by a person	1640
primarily to perform research and development. Tangible personal	1641
property primarily used in testing, as defined in division (A)(4)	1642
of section 5739.011 of the Revised Code, or used for recording or	1643
storing test results, is not qualified research and development	1644
equipment unless such property is primarily used by the consumer	1645
in testing the product, equipment, or manufacturing process being	1646
created, designed, or formulated by the consumer in the research	1647
and development activity or in recording or storing such test	1648
results.	1649

(II) "Building maintenance and janitorial service" means	1650
cleaning the interior or exterior of a building and any tangible	1651
personal property located therein or thereon, including any	1652
services incidental to such cleaning for which no separate charge	1653
is made. However, "building maintenance and janitorial service"	1654
does not include the providing of such service by a person who has	1655
less than five thousand dollars in sales of such service during	1656
the calendar year.	1657

(JJ) "Employment service" means providing or supplying	1658
personnel, on a temporary or long-term basis, to perform work or	1659
labor under the supervision or control of another, when the	1660
personnel so supplied receive their wages, salary, or other	1661
compensation from the provider of the service. "Employment	1662
service" does not include:	1663

(1) Acting as a contractor or subcontractor, where the	1664
personnel performing the work are not under the direct control of	1665
the purchaser.	1666

(2) Medical and health care services.

1667

(3) Supplying personnel to a purchaser pursuant to a contract	1668
of at least one year between the service provider and the	1669
purchaser that specifies that each employee covered under the	1670
contract is assigned to the purchaser on a permanent basis.	1671

(4) Transactions between members of an affiliated group, as	1672
defined in division (B)(3)(e) of this section.	1673

(KK) "Employment placement service" means locating or finding	1674
employment for a person or finding or locating an employee to fill	1675
an available position.	1676

(LL) "Exterminating service" means eradicating or attempting	1677
to eradicate vermin infestations from a building or structure, or	1678
the area surrounding a building or structure, and includes	1679
activities to inspect, detect, or prevent vermin infestation of a	1680
building or structure.	1681

(MM) "Physical fitness facility service" means all	1682
transactions by which a membership is granted, maintained, or	1683
renewed, including initiation fees, membership dues, renewal fees,	1684
monthly minimum fees, and other similar fees and dues, by a	1685
physical fitness facility such as an athletic club, health spa, or	1686
gymnasium, which entitles the member to use the facility for	1687
physical exercise.	1688

(NN) "Recreation and sports club service" means all	1689
transactions by which a membership is granted, maintained, or	1690
renewed, including initiation fees, membership dues, renewal fees,	1691
monthly minimum fees, and other similar fees and dues, by a	1692
recreation and sports club, which entitles the member to use the	1693
facilities of the organization. "Recreation and sports club" means	1694
an organization that has ownership of, or controls or leases on a	1695
continuing, long-term basis, the facilities used by its members	1696
and includes an aviation club, gun or shooting club, yacht club,	1697
card club, swimming club, tennis club, golf club, country club,	1698
riding club, amateur sports club, or similar organization.	1699

(OO) "Livestock" means farm animals commonly raised for food	1700
or food production, and includes but is not limited to cattle,	1701
sheep, goats, swine, and poultry. "Livestock" does not include	1702
invertebrates, fish, amphibians, reptiles, horses, domestic pets,	1703
animals for use in laboratories or for exhibition, or other	1704
animals not commonly raised for food or food production.	1705

(PP) "Livestock structure" means a building or structure used	1706
exclusively for the housing, raising, feeding, or sheltering of	1707
livestock, and includes feed storage or handling structures and	1708
structures for livestock waste handling.	1709

(QQ) "Horticulture" means the growing, cultivation, and	1710
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	1711
and nursery stock. As used in this division, "nursery stock" has	1712
the same meaning as in section 927.51 of the Revised Code.	1713

(RR) "Horticulture structure" means a building or structure	1714
used exclusively for the commercial growing, raising, or	1715
overwintering of horticultural products, and includes the area	1716
used for stocking, storing, and packing horticultural products	1717
when done in conjunction with the production of those products.	1718

(SS) "Newspaper" means an unbound publication bearing a title	1719
or name that is regularly published, at least as frequently as	1720
biweekly, and distributed from a fixed place of business to the	1721
public in a specific geographic area, and that contains a	1722
substantial amount of news matter of international, national, or	1723
local events of interest to the general public.	1724

(TT) "Professional racing team" means a person that employs	1725
at least twenty full-time employees for the purpose of conducting	1726
a motor vehicle racing business for profit. The person must	1727
conduct the business with the purpose of racing one or more motor	1728
racing vehicles in at least ten competitive professional racing	1729
events each year that comprise all or part of a motor racing	1730
series sanctioned by one or more motor racing sanctioning	1731
organizations. A "motor racing vehicle" means a vehicle for which	1732
the chassis, engine, and parts are designed exclusively for motor	1733
racing, and does not include a stock or production model vehicle	1734
that may be modified for use in racing. For the purposes of this	1735
division:	1736

(1) A "competitive professional racing event" is a motor	1737
vehicle racing event sanctioned by one or more motor racing	1738
sanctioning organizations, at which aggregate cash prizes in	1739
excess of eight hundred thousand dollars are awarded to the	1740
competitors.	1741

(2) "Full-time employee" means an individual who is employed	1742
for consideration for thirty-five or more hours a week, or who	1743
renders any other standard of service generally accepted by custom	1744
or specified by contract as full-time employment.	1745

(UU)(1) "Prepaid authorization number" means a numeric or	1746
alphanumeric combination that represents a prepaid account that	1747
can be used by the account holder solely to obtain	1748
telecommunications service, and includes any renewals or increases	1749
in the prepaid account.	1750

(2) "Prepaid telephone calling card" means a tangible item	1751
that contains a prepaid authorization number that can be used	1752
solely to obtain telecommunications service, and includes any	1753
renewals or increases in the prepaid account.	1754

(VV) "Lease" means any transfer for a consideration of the	1755
possession of and right to use, but not title to, tangible	1756
personal property for a fixed period of time greater than thirty	1757
days or for an open-ended period of time with a minimum fixed	1758
period of more than thirty days.	1759

(WW) "Mobile telecommunications service" has the same meaning	1760
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.	1761
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended.	1762

(XX) "Certified service provider" has the same meaning as in	1763
section 5740.01 of the Revised Code.	1764

Sec. 5739.02.  For the purpose of providing revenue with	1765
which to meet the needs of the state, for the use of the general	1766
revenue fund of the state, for the purpose of securing a thorough	1767
and efficient system of common schools throughout the state, for	1768
the purpose of affording revenues, in addition to those from	1769
general property taxes, permitted under constitutional	1770
limitations, and from other sources, for the support of local	1771
governmental functions, and for the purpose of reimbursing the	1772
state for the expense of administering this chapter, an excise tax	1773
is hereby levied on each retail sale made in this state.	1774

(A) The tax shall be collected pursuant to the schedules in	1775
section 5739.025 of the Revised Code.	1776

The tax applies and is collectible when the sale is made,	1777
regardless of the time when the price is paid or delivered.	1778

In the case of a sale, the price of which consists in whole	1779
or in part of rentals for the use of the thing transferred, the	1780
tax, as regards those rentals, shall be measured by the	1781
installments of those rentals.	1782

In the case of a sale of a service defined under division	1783
(MM) or (NN) of section 5739.01 of the Revised Code, the price of	1784
which consists in whole or in part of a membership for the receipt	1785
of the benefit of the service, the tax applicable to the sale	1786
shall be measured by the installments thereof.	1787

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

1788

(1) Sales to the state or any of its political subdivisions,	1789
or to any other state or its political subdivisions if the laws of	1790
that state exempt from taxation sales made to this state and its	1791
political subdivisions;	1792

(2) Sales of food for human consumption off the premises	1793
where sold;	1794

(3) Sales of food sold to students only in a cafeteria,	1795
dormitory, fraternity, or sorority maintained in a private,	1796
public, or parochial school, college, or university;	1797

(4) Sales of newspapers and of magazine subscriptions and	1798
sales or transfers of magazines distributed as controlled	1799
circulation publications;	1800

(5) The furnishing, preparing, or serving of meals without	1801
charge by an employer to an employee provided the employer records	1802
the meals as part compensation for services performed or work	1803
done;	1804

(6) Sales of motor fuel upon receipt, use, distribution, or	1805
sale of which in this state a tax is imposed by the law of this	1806
state, but this exemption shall not apply to the sale of motor	1807
fuel on which a refund of the tax is allowable under section	1808
5735.14 of the Revised Code; and the tax commissioner may deduct	1809
the amount of tax levied by this section applicable to the price	1810
of motor fuel when granting a refund of motor fuel tax pursuant to	1811
section 5735.14 of the Revised Code and shall cause the amount	1812
deducted to be paid into the general revenue fund of this state;	1813

(7) Sales of natural gas by a natural gas company, of water	1814
by a water-works company, or of steam by a heating company, if in	1815
each case the thing sold is delivered to consumers through pipes	1816
or conduits, and all sales of communications services by a	1817
telephone or telegraph company, all terms as defined in section	1818
5727.01 of the Revised Code;	1819

(8) Casual sales by a person, or auctioneer employed directly	1820
by the person to conduct such sales, except as to such sales of	1821
motor vehicles, watercraft or outboard motors required to be	1822
titled under section 1548.06 of the Revised Code, watercraft	1823
documented with the United States coast guard, snowmobiles, and	1824
all-purpose vehicles as defined in section 4519.01 of the Revised	1825
Code;	1826

(9) Sales of services or tangible personal property, other	1827
than motor vehicles, mobile homes, and manufactured homes, by	1828
churches, organizations exempt from taxation under section	1829
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	1830
organizations operated exclusively for charitable purposes as	1831
defined in division (B)(12) of this section, provided that the	1832
number of days on which such tangible personal property or	1833
services, other than items never subject to the tax, are sold does	1834
not exceed six in any calendar year. If the number of days on	1835
which such sales are made exceeds six in any calendar year, the	1836
church or organization shall be considered to be engaged in	1837
business and all subsequent sales by it shall be subject to the	1838
tax. In counting the number of days, all sales by groups within a	1839
church or within an organization shall be considered to be sales	1840
of that church or organization, except that sales made by separate	1841
student clubs and other groups of students of a primary or	1842
secondary school, and sales made by a parent-teacher association,	1843
booster group, or similar organization that raises money to	1844
support or fund curricular or extracurricular activities of a	1845
primary or secondary school, shall not be considered to be sales	1846
of such school, and sales by each such club, group, association,	1847
or organization shall be counted separately for purposes of the	1848
six-day limitation. This division does not apply to sales by a	1849
noncommercial educational radio or television broadcasting	1850
station.	1851

(10) Sales not within the taxing power of this state under	1852
the Constitution of the United States;	1853

(11) The transportation of persons or property, unless the	1854
transportation is by a private investigation and security service;	1855

(12) Sales of tangible personal property or services to	1856
churches, to organizations exempt from taxation under section	1857
501(c)(3) of the Internal Revenue Code of 1986, and to any other	1858
nonprofit organizations operated exclusively for charitable	1859
purposes in this state, no part of the net income of which inures	1860
to the benefit of any private shareholder or individual, and no	1861
substantial part of the activities of which consists of carrying	1862
on propaganda or otherwise attempting to influence legislation;	1863
sales to offices administering one or more homes for the aged or	1864
one or more hospital facilities exempt under section 140.08 of the	1865
Revised Code; and sales to organizations described in division (D)	1866
of section 5709.12 of the Revised Code.	1867

"Charitable purposes" means the relief of poverty; the	1868
improvement of health through the alleviation of illness, disease,	1869
or injury; the operation of an organization exclusively for the	1870
provision of professional, laundry, printing, and purchasing	1871
services to hospitals or charitable institutions; the operation of	1872
a home for the aged, as defined in section 5701.13 of the Revised	1873
Code; the operation of a radio or television broadcasting station	1874
that is licensed by the federal communications commission as a	1875
noncommercial educational radio or television station; the	1876
operation of a nonprofit animal adoption service or a county	1877
humane society; the promotion of education by an institution of	1878
learning that maintains a faculty of qualified instructors,	1879
teaches regular continuous courses of study, and confers a	1880
recognized diploma upon completion of a specific curriculum; the	1881
operation of a parent-teacher association, booster group, or	1882
similar organization primarily engaged in the promotion and	1883
support of the curricular or extracurricular activities of a	1884
primary or secondary school; the operation of a community or area	1885
center in which presentations in music, dramatics, the arts, and	1886
related fields are made in order to foster public interest and	1887
education therein; the production of performances in music,	1888
dramatics, and the arts; or the promotion of education by an	1889
organization engaged in carrying on research in, or the	1890
dissemination of, scientific and technological knowledge and	1891
information primarily for the public.	1892

Nothing in this division shall be deemed to exempt sales to	1893
any organization for use in the operation or carrying on of a	1894
trade or business, or sales to a home for the aged for use in the	1895
operation of independent living facilities as defined in division	1896
(A) of section 5709.12 of the Revised Code.	1897

(13) Building and construction materials and services sold to	1898
construction contractors for incorporation into a structure or	1899
improvement to real property under a construction contract with	1900
this state or a political subdivision of this state, or with the	1901
United States government or any of its agencies; building and	1902
construction materials and services sold to construction	1903
contractors for incorporation into a structure or improvement to	1904
real property that are accepted for ownership by this state or any	1905
of its political subdivisions, or by the United States government	1906
or any of its agencies at the time of completion of the structures	1907
or improvements; building and construction materials sold to	1908
construction contractors for incorporation into a horticulture	1909
structure or livestock structure for a person engaged in the	1910
business of horticulture or producing livestock; building	1911
materials and services sold to a construction contractor for	1912
incorporation into a house of public worship or religious	1913
education, or a building used exclusively for charitable purposes	1914
under a construction contract with an organization whose purpose	1915
is as described in division (B)(12) of this section; building	1916
materials and services sold to a construction contractor for	1917
incorporation into a building under a construction contract with	1918
an organization exempt from taxation under section 501(c)(3) of	1919
the Internal Revenue Code of 1986 when the building is to be used	1920
exclusively for the organization's exempt purposes; building and	1921
construction materials sold for incorporation into the original	1922
construction of a sports facility under section 307.696 of the	1923
Revised Code; and building and construction materials and services	1924
sold to a construction contractor for incorporation into real	1925
property outside this state if such materials and services, when	1926
sold to a construction contractor in the state in which the real	1927
property is located for incorporation into real property in that	1928
state, would be exempt from a tax on sales levied by that state;	1929

(14) Sales of ships or vessels or rail rolling stock used or	1930
to be used principally in interstate or foreign commerce, and	1931
repairs, alterations, fuel, and lubricants for such ships or	1932
vessels or rail rolling stock;	1933

(15) Sales to persons primarily engaged in any of the	1934
activities mentioned in division (E)(2) or (9) of section 5739.01	1935
of the Revised Code, to persons engaged in making retail sales, or	1936
to persons who purchase for sale from a manufacturer tangible	1937
personal property that was produced by the manufacturer in	1938
accordance with specific designs provided by the purchaser, of	1939
packages, including material, labels, and parts for packages, and	1940
of machinery, equipment, and material for use primarily in	1941
packaging tangible personal property produced for sale, including	1942
any machinery, equipment, and supplies used to make labels or	1943
packages, to prepare packages or products for labeling, or to	1944
label packages or products, by or on the order of the person doing	1945
the packaging, or sold at retail. "Packages" includes bags,	1946
baskets, cartons, crates, boxes, cans, bottles, bindings,	1947
wrappings, and other similar devices and containers, and	1948
"packaging"but does not include motor vehicles or bulk tanks,	1949
trailers, or similar devices attached to motor vehicles.	1950
"Packaging" means placing thereinin a package. Division (B)(14)	1951
of this section does not apply to persons engaged in highway	1952
transportation for hire.	1953

(16) Sales of food to persons using food stamp benefits to	1954
purchase the food. As used in division (B)(16) of this section,	1955
"food" has the same meaning as in the "Food Stamp Act of 1977," 91	1956
Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations	1957
adopted pursuant to that act.	1958

(17) Sales to persons engaged in farming, agriculture,	1959
horticulture, or floriculture, of tangible personal property for	1960
use or consumption directly in the production by farming,	1961
agriculture, horticulture, or floriculture of other tangible	1962
personal property for use or consumption directly in the	1963
production of tangible personal property for sale by farming,	1964
agriculture, horticulture, or floriculture; or material and parts	1965
for incorporation into any such tangible personal property for use	1966
or consumption in production; and of tangible personal property	1967
for such use or consumption in the conditioning or holding of	1968
products produced by and for such use, consumption, or sale by	1969
persons engaged in farming, agriculture, horticulture, or	1970
floriculture, except where such property is incorporated into real	1971
property;	1972

(18) Sales of drugs dispensed by a licensed pharmacist upon	1973
the order of a licensed health professional authorized to	1974
prescribe drugs to a human being, as the term "licensed health	1975
professional authorized to prescribe drugs" is defined in section	1976
4729.01 of the Revised Code; insulin as recognized in the official	1977
United States pharmacopoeia; urine and blood testing materials	1978
when used by diabetics or persons with hypoglycemia to test for	1979
glucose or acetone; hypodermic syringes and needles when used by	1980
diabetics for insulin injections; epoetin alfa when purchased for	1981
use in the treatment of persons with end-stage renal disease;	1982
hospital beds when purchased for use by persons with medical	1983
problems for medical purposes; and oxygen and oxygen-dispensing	1984
equipment when purchased for use by persons with medical problems	1985
for medical purposes;	1986

(19)(a) Sales of artificial limbs or portion thereof, breast	1987
prostheses, and other prosthetic devices for humans; braces or	1988
other devices for supporting weakened or nonfunctioning parts of	1989
the human body; crutches or other devices to aid human	1990
perambulation; and items of tangible personal property used to	1991
supplement impaired functions of the human body such as	1992
respiration, hearing, or elimination;	1993

(b) Sales of wheelchairs; items incorporated into or used in	1994
conjunction with a motor vehicle for the purpose of transporting	1995
wheelchairs, other than transportation conducted in connection	1996
with the sale or delivery of wheelchairs; and items incorporated	1997
into or used in conjunction with a motor vehicle that are	1998
specifically designed to assist a person with a disability to	1999
access or operate the motor vehicle. As used in this division,	2000
"person with a disability" means any person who has lost the use	2001
of one or both legs or one or both arms, who is blind, deaf, or	2002
disabled to the extent that the person is unable to move about	2003
without the aid of crutches or a wheelchair, or whose mobility is	2004
restricted by a permanent cardiovascular, pulmonary, or other	2005
disabling condition.	2006

(c) No exemption under this division shall be allowed for	2007
nonprescription drugs, medicines, or remedies; items or devices	2008
used to supplement vision; items or devices whose function is	2009
solely or primarily cosmetic; or physical fitness equipment. This	2010
division does not apply to sales to a physician or medical	2011
facility for use in the treatment of a patient.	2012

(20) Sales of emergency and fire protection vehicles and	2013
equipment to nonprofit organizations for use solely in providing	2014
fire protection and emergency services, including trauma care and	2015
emergency medical services, for political subdivisions of the	2016
state;	2017

(21) Sales of tangible personal property manufactured in this	2018
state, if sold by the manufacturer in this state to a retailer for	2019
use in the retail business of the retailer outside of this state	2020
and if possession is taken from the manufacturer by the purchaser	2021
within this state for the sole purpose of immediately removing the	2022
same from this state in a vehicle owned by the purchaser;	2023

(22) Sales of services provided by the state or any of its	2024
political subdivisions, agencies, instrumentalities, institutions,	2025
or authorities, or by governmental entities of the state or any of	2026
its political subdivisions, agencies, instrumentalities,	2027
institutions, or authorities;	2028

(23) Sales of motor vehicles to nonresidents of this state	2029
upon the presentation of an affidavit executed in this state by	2030
the nonresident purchaser affirming that the purchaser is a	2031
nonresident of this state, that possession of the motor vehicle is	2032
taken in this state for the sole purpose of immediately removing	2033
it from this state, that the motor vehicle will be permanently	2034
titled and registered in another state, and that the motor vehicle	2035
will not be used in this state;	2036

(24) Sales to persons engaged in the preparation of eggs for	2037
sale of tangible personal property used or consumed directly in	2038
such preparation, including such tangible personal property used	2039
for cleaning, sanitizing, preserving, grading, sorting, and	2040
classifying by size; packages, including material and parts for	2041
packages, and machinery, equipment, and material for use in	2042
packaging eggs for sale; and handling and transportation equipment	2043
and parts therefor, except motor vehicles licensed to operate on	2044
public highways, used in intraplant or interplant transfers or	2045
shipment of eggs in the process of preparation for sale, when the	2046
plant or plants within or between which such transfers or	2047
shipments occur are operated by the same person. "Packages"	2048
includes containers, cases, baskets, flats, fillers, filler flats,	2049
cartons, closure materials, labels, and labeling materials, and	2050
"packaging" means placing therein.	2051

(25)(a) Sales of water to a consumer for residential use,	2052
except the sale of bottled water, distilled water, mineral water,	2053
carbonated water, or ice;	2054

(b) Sales of water by a nonprofit corporation engaged	2055
exclusively in the treatment, distribution, and sale of water to	2056
consumers, if such water is delivered to consumers through pipes	2057
or tubing.	2058

(26) Fees charged for inspection or reinspection of motor	2059
vehicles under section 3704.14 of the Revised Code;	2060

(27) Sales to persons licensed to conduct a food service	2061
operation pursuant to section 3717.43 of the Revised Code, of	2062
tangible personal property primarily used directly for the	2063
following:	2064

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

2065

(b) To preserve food that has been or will be prepared for	2066
human consumption for sale by the food service operator, not	2067
including tangible personal property used to display food for	2068
selection by the consumer;	2069

(c) To clean tangible personal property used to prepare or	2070
serve food for human consumption for sale.	2071

(28) Sales of animals by nonprofit animal adoption services	2072
or county humane societies;	2073

(29) Sales of services to a corporation described in division	2074
(A) of section 5709.72 of the Revised Code, and sales of tangible	2075
personal property that qualifies for exemption from taxation under	2076
section 5709.72 of the Revised Code;	2077

(30) Sales and installation of agricultural land tile, as	2078
defined in division (B)(5)(a) of section 5739.01 of the Revised	2079
Code;	2080

(31) Sales and erection or installation of portable grain	2081
bins, as defined in division (B)(5)(b) of section 5739.01 of the	2082
Revised Code;	2083

(32) The sale, lease, repair, and maintenance of, parts for,	2084
or items attached to or incorporated in, motor vehicles that are	2085
primarily used for transporting tangible personal property	2086
belonging to others by a person engaged in highway transportation	2087
for hire, except for packages and packaging used for the	2088
transportation of tangible personal property;	2089

(33) Sales to the state headquarters of any veterans'	2090
organization in this state that is either incorporated and issued	2091
a charter by the congress of the United States or is recognized by	2092
the United States veterans administration, for use by the	2093
headquarters;	2094

(34) Sales to a telecommunications service vendor of tangible	2095
personal property and services used directly and primarily in	2096
transmitting, receiving, switching, or recording any interactive,	2097
two-way electromagnetic communications, including voice, image,	2098
data, and information, through the use of any medium, including,	2099
but not limited to, poles, wires, cables, switching equipment,	2100
computers, and record storage devices and media, and component	2101
parts for the tangible personal property. The exemption provided	2102
in division (B)(34) of this section shall be in lieu of all other	2103
exceptions under division (E)(2) of section 5739.01 of the Revised	2104
Code to which a telecommunications service vendor may otherwise be	2105
entitled based upon the use of the thing purchased in providing	2106
the telecommunications service.	2107

(35) Sales of investment metal bullion and investment coins.	2108
"Investment metal bullion" means any elementary precious metal	2109
that has been put through a process of smelting or refining,	2110
including, but not limited to, gold, silver, platinum, and	2111
palladium, and which is in such state or condition that its value	2112
depends upon its content and not upon its form. "Investment metal	2113
bullion" does not include fabricated precious metal that has been	2114
processed or manufactured for one or more specific and customary	2115
industrial, professional, or artistic uses. "Investment coins"	2116
means numismatic coins or other forms of money and legal tender	2117
manufactured of gold, silver, platinum, palladium, or other metal	2118
under the laws of the United States or any foreign nation with a	2119
fair market value greater than any statutory or nominal value of	2120
such coins.	2121

(36)(a) Sales where the purpose of the consumer is to use or	2122
consume the things transferred in making retail sales and	2123
consisting of newspaper inserts, catalogues, coupons, flyers, gift	2124
certificates, or other advertising material that prices and	2125
describes tangible personal property offered for retail sale.	2126

(b) Sales to direct marketing vendors of preliminary	2127
materials such as photographs, artwork, and typesetting that will	2128
be used in printing advertising material; of printed matter that	2129
offers free merchandise or chances to win sweepstake prizes and	2130
that is mailed to potential customers with advertising material	2131
described in division (B)(36)(a) of this section; and of equipment	2132
such as telephones, computers, facsimile machines, and similar	2133
tangible personal property primarily used to accept orders for	2134
direct marketing retail sales.	2135

(c) Sales of automatic food vending machines that preserve	2136
food with a shelf life of forty-five days or less by refrigeration	2137
and dispense it to the consumer.	2138

For purposes of division (B)(36) of this section, "direct	2139
marketing" means the method of selling where consumers order	2140
tangible personal property by United States mail, delivery	2141
service, or telecommunication and the vendor delivers or ships the	2142
tangible personal property sold to the consumer from a warehouse,	2143
catalogue distribution center, or similar fulfillment facility by	2144
means of the United States mail, delivery service, or common	2145
carrier.	2146

(37) Sales to a person engaged in the business of	2147
horticulture or producing livestock of materials to be	2148
incorporated into a horticulture structure or livestock structure;	2149

(38) The sale of a motor vehicle that is used exclusively for	2150
a vanpool ridesharing arrangement to persons participating in the	2151
vanpool ridesharing arrangement when the vendor is selling the	2152
vehicle pursuant to a contract between the vendor and the	2153
department of transportation;	2154

(39) Sales of personal computers, computer monitors, computer	2155
keyboards, modems, and other peripheral computer equipment to an	2156
individual who is licensed or certified to teach in an elementary	2157
or a secondary school in this state for use by that individual in	2158
preparation for teaching elementary or secondary school students;	2159

(40) Sales to a professional racing team of any of the	2160
following:	2161

(a) Motor racing vehicles;

2162

(b) Repair services for motor racing vehicles;

2163

(c) Items of property that are attached to or incorporated in	2164
motor racing vehicles, including engines, chassis, and all other	2165
components of the vehicles, and all spare, replacement, and	2166
rebuilt parts or components of the vehicles; except not including	2167
tires, consumable fluids, paint, and accessories consisting of	2168
instrumentation sensors and related items added to the vehicle to	2169
collect and transmit data by means of telemetry and other forms of	2170
communication.	2171

(41) Sales of used manufactured homes and used mobile homes,	2172
as defined in section 5739.0210 of the Revised Code, made on or	2173
after January 1, 2000;	2174

(42) Sales of tangible personal property and services to a	2175
provider of electricity used or consumed directly and primarily in	2176
generating, transmitting, or distributing electricity for use by	2177
others, including property that is or is to be incorporated into	2178
and will become a part of the consumer's production, transmission,	2179
or distribution system and that retains its classification as	2180
tangible personal property after incorporation; fuel or power used	2181
in the production, transmission, or distribution of electricity;	2182
and tangible personal property and services used in the repair and	2183
maintenance of the production, transmission, or distribution	2184
system, including only those motor vehicles as are specially	2185
designed and equipped for such use. The exemption provided in this	2186
division shall be in lieu of all other exceptions in division	2187
(E)(2) of section 5739.01 of the Revised Code to which a provider	2188
of electricity may otherwise be entitled based on the use of the	2189
tangible personal property or service purchased in generating,	2190
transmitting, or distributing electricity.	2191

(C) For the purpose of the proper administration of this	2192
chapter, and to prevent the evasion of the tax, it is presumed	2193
that all sales made in this state are subject to the tax until the	2194
contrary is established.	2195

(D) As used in this section, except in division (B)(16) of	2196
this section, "food" includes cereals and cereal products, milk	2197
and milk products including ice cream, meat and meat products,	2198
fish and fish products, eggs and egg products, vegetables and	2199
vegetable products, fruits, fruit products, and pure fruit juices,	2200
condiments, sugar and sugar products, coffee and coffee	2201
substitutes, tea, and cocoa and cocoa products. It does not	2202
include: spirituous liquors, wine, mixed beverages, or beer; soft	2203
drinks; sodas and beverages that are ordinarily dispensed at or in	2204
connection with bars and soda fountains, other than coffee, tea,	2205
and cocoa; root beer and root beer extracts; malt and malt	2206
extracts; mineral oils, cod liver oils, and halibut liver oil;	2207
medicines, including tonics, vitamin preparations, and other	2208
products sold primarily for their medicinal properties; and water,	2209
including mineral, bottled, and carbonated waters, and ice.	2210

(C)(E) The levy of this tax on retail sales of recreation and	2211
sports club service shall not prevent a municipal corporation from	2212
levying any tax on recreation and sports club dues or on any	2213
income generated by recreation and sports club dues.	2214

Sec. 5739.03.  (A) Except as provided in section 5739.05 of	2215
the Revised Code, the tax imposed by or pursuant to section	2216
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code shall	2217
be paid by the consumer to the vendor, and each vendor shall	2218
collect from the consumer, as a trustee for the state of Ohio, the	2219
full and exact amount of the tax payable on each taxable sale, in	2220
the manner and at the times provided as follows:	2221

(1) If the price is, at or prior to the provision of the	2222
service or the delivery of possession of the thing sold to the	2223
consumer, paid in currency passed from hand to hand by the	2224
consumer or the consumer's agent to the vendor or the vendor's	2225
agent, the vendor or the vendor's agent shall collect the tax with	2226
and at the same time as the price;	2227

(2) If the price is otherwise paid or to be paid, the vendor	2228
or the vendor's agent shall, at or prior to the provision of the	2229
service or the delivery of possession of the thing sold to the	2230
consumer, charge the tax imposed by or pursuant to section	2231
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code to	2232
the account of the consumer, which amount shall be collected by	2233
the vendor from the consumer in addition to the price. Such sale	2234
shall be reported on and the amount of the tax applicable thereto	2235
shall be remitted with the return for the period in which the sale	2236
is made, and the amount of the tax shall become a legal charge in	2237
favor of the vendor and against the consumer.	2238

(B)(1) If any sale is claimed to be exempt under division (E)	2239
of section 5739.01 of the Revised Code or under section 5739.02 of	2240
the Revised Code, with the exception of divisions (B)(1) to (11)	2241
or (28) of section 5739.02 of the Revised Code, the consumer must	2242
provide to the vendor, and the vendor must obtain from the	2243
consumer, a certificate specifying the reason that the sale is not	2244
legally subject to the tax. The certificate shall be provided	2245
either in a hard copy form or electronic form, as prescribed by	2246
the tax commissioner. If the transaction is claimed to be exempt	2247
under division (B)(13) of section 5739.02 of the Revised Code, the	2248
exemption certificate shall be provided by both the contractor and	2249
the contractee. Such contractee shall be deemed to be the consumer	2250
of all items purchased under such claim of exemption, if it is	2251
subsequently determined that the exemption is not properly	2252
claimed. The certificate shall be in such form as the tax	2253
commissioner by regulation prescribes.	2254

(2) The vendor shall maintain records, including exemption	2255
certificates, of all sales on which a consumer has claimed an	2256
exemption, and provide them to the tax commissioner on request.	2257

(3) The tax commissioner may establish an identification	2258
system whereby the commissioner issues an identification number to	2259
a consumer that is exempt from payment of the tax. The consumer	2260
must present the number to the vendor, if any sale is claimed to	2261
be exempt as provided in this section.	2262

(4) If no certificate is provided or obtained within the	2263
period for filing the return for the period in which such sale is	2264
consummated, it shall be presumed that the tax applies. Failure to	2265
have so provided, or to have so obtained, a certificate shall not	2266
prevent a vendor or consumer from establishing that the sale is	2267
not subject to the tax within one hundred twenty days of the	2268
giving of notice by the commissioner of intention to levy an	2269
assessment, in which event the tax shall not apply.	2270

(5) Certificates need not be obtained nor provided where the	2271
identity of the consumer is such that the transaction is never	2272
subject to the tax imposed or where the item of tangible personal	2273
property sold or the service provided is never subject to the tax	2274
imposed, regardless of use, or when the sale is in interstate	2275
commerce.	2276

(C) As used in this division, "contractee" means a person who	2277
seeks to enter or enters into a contract or agreement with a	2278
contractor or vendor for the construction of real property or for	2279
the sale and installation onto real property of tangible personal	2280
property.	2281

Any contractor or vendor may request from any contractee a	2282
certification of what portion of the property to be transferred	2283
under such contract or agreement is to be incorporated into the	2284
realty and what portion will retain its status as tangible	2285
personal property after installation is completed. The contractor	2286
or vendor shall request the certification by certified mail	2287
delivered to the contractee, return receipt requested. Upon	2288
receipt of such request and prior to entering into the contract or	2289
agreement, the contractee shall provide to the contractor or	2290
vendor a certification sufficiently detailed to enable the	2291
contractor or vendor to ascertain the resulting classification of	2292
all materials purchased or fabricated by the contractor or vendor	2293
and transferred to the contractee. This requirement applies to a	2294
contractee regardless of whether the contractee holds a direct	2295
payment permit under section 5739.031 of the Revised Code or	2296
provides to the contractor or vendor an exemption certificate as	2297
provided under this section.	2298

For the purposes of the taxes levied by this chapter and	2299
Chapter 5741. of the Revised Code, the contractor or vendor may in	2300
good faith rely on the contractee's certification. Notwithstanding	2301
division (B) of section 5739.01 of the Revised Code, if the tax	2302
commissioner determines that certain property certified by the	2303
contractee as tangible personal property pursuant to this division	2304
is, in fact, real property, the contractee shall be considered to	2305
be the consumer of all materials so incorporated into that real	2306
property and shall be liable for the applicable tax, and the	2307
contractor or vendor shall be excused from any liability on those	2308
materials.	2309

If a contractee fails to provide such certification upon the	2310
request of the contractor or vendor, the contractor or vendor	2311
shall comply with the provisions of this chapter and Chapter 5741.	2312
of the Revised Code without the certification. If the tax	2313
commissioner determines that such compliance has been performed in	2314
good faith and that certain property treated as tangible personal	2315
property by the contractor or vendor is, in fact, real property,	2316
the contractee shall be considered to be the consumer of all	2317
materials so incorporated into that real property and shall be	2318
liable for the applicable tax, and the construction contractor or	2319
vendor shall be excused from any liability on those materials.	2320

This division does not apply to any contract or agreement	2321
where the tax commissioner determines as a fact that a	2322
certification under this division was made solely on the decision	2323
or advice of the contractor or vendor.	2324

(D) Notwithstanding division (B) of section 5739.01 of the	2325
Revised Code, whenever the total rate of tax imposed under this	2326
chapter is increased after the date after a construction contract	2327
is entered into, the contractee shall reimburse the construction	2328
contractor for any additional tax paid on tangible property	2329
consumed or services received pursuant to the contract.	2330

(E) A vendor who files a petition for reassessment contesting	2331
the assessment of tax on sales for which the vendor obtained no	2332
valid exemption certificates and for which the vendor failed to	2333
establish that the sales were properly not subject to the tax	2334
during the one-hundred-twenty-day period allowed under division	2335
(B) of this section, may present to the tax commissioner	2336
additional evidence to prove that the sales were properly subject	2337
to a claim of exception or exemption. The vendor shall file such	2338
evidence within ninety days of the receipt by the vendor of the	2339
notice of assessment, except that, upon application and for	2340
reasonable cause, the period for submitting such evidence shall be	2341
extended thirty days.	2342

The commissioner shall consider such additional evidence in	2343
reaching the final determination on the assessment and petition	2344
for reassessment.	2345

(F) Whenever a vendor refunds to the consumer the full price	2346
of an item of tangible personal property on which the tax imposed	2347
under this chapter has been paid, the vendor shall also refund the	2348
full amount of the tax paid.	2349

Sec. 5739.11.  As used in this section, "food service	2350
operator" means a vendor who conducts a food service operation	2351
under Chapter 3717. of the Revised Code.	2352

Each vendor shall keep complete and accurate records of	2353
sales, together with a record of the tax collected on the sales,	2354
which shall be the amount due under sections 5739.01 to 5739.31 of	2355
the Revised Code, and shall keep all invoices, bills of lading,	2356
and other such pertinent documents. Alternatively, any food	2357
service operator who has not been convicted under section 5739.99	2358
of the Revised Code, with respect to the vendor's food service	2359
operation, may keep a sample of primary sales records. Such sample	2360
shall consist of all sales invoices, guest checks, cash register	2361
tapes, and other such documents for each of fourteen days in every	2362
calendar quarter. The specific days to be included in the sample	2363
shall be determined by the tax commissioner and entered in the	2364
commissioner's journal within ten days after the close of every	2365
calendar quarter. The tax commissioner shall notify each such	2366
operator registered pursuant to section 5739.17 of the Revised	2367
Code who requests such notification of the days to be included in	2368
each sample by the last day of the month following the close of	2369
each calendar quarter. The notice also shall contain a statement	2370
that destruction of primary records for time periods other than	2371
the specified sample period is optional, and that some operators	2372
may wish to keep all such records for four full years so as to be	2373
able to clearly demonstrate that they have fully complied with	2374
this chapter and Chapter 5741. of the Revised Code. The tax	2375
commissioner shall further make such determination known through a	2376
general news release.	2377

Each vendor shall keep exemption certificates required to be	2378
obtained under section 5739.03 of the Revised Code. If the vendor	2379
makes sales not subject to the tax and not required to be	2380
evidenced by an exemption certificate, the vendor's records shall	2381
show the identity of the purchaser, if the sale was exempted by	2382
reason of such identity, or the nature of the transaction, if	2383
exempted for any other reason. Vendors are not required to	2384
differentiate in record-keeping between sales that are exempt from	2385
taxation under division (B)(2) of section 5739.02 of the Revised	2386
Code and those that are exempt under division (B)(16) of that	2387
section. Such records and other documents required to be kept by	2388
this section shall be open during business hours to the inspection	2389
of the tax commissioner, and shall be preserved for a period of	2390
four years, unless the commissioner, in writing, consents to their	2391
destruction within that period, or by order requires that they be	2392
kept longer.	2393

Sec. 5741.02.  (A) For the use of the general revenue fund of	2394
the state, an excise tax is hereby levied on the storage, use, or	2395
other consumption in this state of tangible personal property or	2396
the benefit realized in this state of any service provided. The	2397
tax shall be collected pursuant to the schedules in section	2398
5739.025 of the Revised Code.	2399

(B) Each consumer, storing, using, or otherwise consuming in	2400
this state tangible personal property or realizing in this state	2401
the benefit of any service provided, shall be liable for the tax,	2402
and such liability shall not be extinguished until the tax has	2403
been paid to this state; provided, that the consumer shall be	2404
relieved from further liability for the tax if the tax has been	2405
paid to a seller in accordance with section 5741.04 of the Revised	2406
Code or prepaid by the seller in accordance with section 5741.06	2407
of the Revised Code.	2408

(C) The tax does not apply to the storage, use, or	2409
consumption in this state of the following described tangible	2410
personal property or services, nor to the storage, use, or	2411
consumption or benefit in this state of tangible personal property	2412
or services purchased under the following described circumstances:	2413

(1) When the sale of property or service in this state is	2414
subject to the excise tax imposed by sections 5739.01 to 5739.31	2415
of the Revised Code, provided said tax has been paid;	2416

(2) Except as provided in division (D) of this section,	2417
tangible personal property or services, the acquisition of which,	2418
if made in Ohio, would be a sale not subject to the tax imposed by	2419
sections 5739.01 to 5739.31 of the Revised Code;	2420

(3) Property or services, the storage, use, or other	2421
consumption of or benefit from which this state is prohibited from	2422
taxing by the Constitution of the United States, laws of the	2423
United States, or the Constitution of this state. This exemption	2424
shall not exempt from the application of the tax imposed by this	2425
section the storage, use, or consumption of tangible personal	2426
property that was purchased in interstate commerce, but that has	2427
come to rest in this state, provided that fuel to be used or	2428
transported in carrying on interstate commerce that is stopped	2429
within this state pending transfer from one conveyance to another	2430
is exempt from the excise tax imposed by this section and section	2431
5739.02 of the Revised Code;	2432

(4) Transient use of tangible personal property in this state	2433
by a nonresident tourist or vacationer, or a non-business use	2434
within this state by a nonresident of this state, if the property	2435
so used was purchased outside this state for use outside this	2436
state and is not required to be registered or licensed under the	2437
laws of this state;	2438

(5) Tangible personal property or services rendered, upon	2439
which taxes have been paid to another jurisdiction to the extent	2440
of the amount of the tax paid to such other jurisdiction. Where	2441
the amount of the tax imposed by this section and imposed pursuant	2442
to section 5741.021, 5741.022, or 5741.023 of the Revised Code	2443
exceeds the amount paid to another jurisdiction, the difference	2444
shall be allocated between the tax imposed by this section and any	2445
tax imposed by a county or a transit authority pursuant to section	2446
5741.021, 5741.022, or 5741.023 of the Revised Code, in proportion	2447
to the respective rates of such taxes.	2448

As used in this subdivision, "taxes paid to another	2449
jurisdiction" means the total amount of retail sales or use tax or	2450
similar tax based upon the sale, purchase, or use of tangible	2451
personal property or services rendered legally, levied by and paid	2452
to another state or political subdivision thereof, or to the	2453
District of Columbia, where the payment of such tax does not	2454
entitle the taxpayer to any refund or credit for such payment.	2455

(6) The transfer of a used manufactured home or used mobile	2456
home, as defined by section 5739.0210 of the Revised Code, made on	2457
or after January 1, 2000;	2458

(7) Drugs that are or are intended to be distributed free of	2459
charge to a practitioner licensed to prescribe, dispense, and	2460
administer drugs to a human being in the course of a professional	2461
practice and that by law may be dispensed only by or upon the	2462
order of such a practitioner.	2463

(D) The tax applies to the storage, use, or other consumption	2464
in this state of tangible personal property or services, the	2465
acquisition of which at the time of sale was excepted under	2466
division (E)(1) of section 5739.01 of the Revised Code from the	2467
tax imposed by section 5739.02 of the Revised Code, but which has	2468
subsequently been temporarily or permanently stored, used, or	2469
otherwise consumed in a taxable manner.	2470

(E)(1) If any transaction is claimed to be exempt under	2471
division (E) of section 5739.01 of the Revised Code or under	2472
section 5739.02 of the Revised Code, with the exception of	2473
divisions (B)(1) to (11) or (28) of section 5739.02 of the Revised	2474
Code, the consumer shall provide to the seller, and the seller	2475
shall obtain from the consumer, a certificate specifying the	2476
reason that the transaction is not subject to the tax. The	2477
certificate shall be provided either in a hard copy form or	2478
electronic form, as prescribed by the tax commissioner. If the	2479
transaction is claimed to be exempt under division (B)(13) of	2480
section 5739.02 of the Revised Code, the exemption certificate	2481
shall be provided by both the contractor and contractee. Such	2482
contractee shall be deemed to be the consumer of all items	2483
purchased under the claim of exemption, if it is subsequently	2484
determined that the exemption is not properly claimed. The	2485
certificate shall be in such form as the tax commissioner by rule	2486
prescribes. The seller shall maintain records, including exemption	2487
certificates, of all sales on which a consumer has claimed an	2488
exemption, and provide them to the tax commissioner on request.	2489

(2) If no certificate is provided or obtained within the	2490
period for filing the return for the period in which the	2491
transaction is consummated, it shall be presumed that the tax	2492
applies. The failure to have so provided or obtained a certificate	2493
shall not preclude a seller or consumer from establishing, within	2494
one hundred twenty days of the giving of notice by the	2495
commissioner of intention to levy an assessment, that the	2496
transaction is not subject to the tax.	2497

(F) A seller who files a petition for reassessment contesting	2498
the assessment of tax on transactions for which the seller	2499
obtained no valid exemption certificates, and for which the seller	2500
failed to establish that the transactions were not subject to the	2501
tax during the one-hundred-twenty-day period allowed under	2502
division (E) of this section, may present to the tax commissioner	2503
additional evidence to prove that the transactions were exempt.	2504
The seller shall file such evidence within ninety days of the	2505
receipt by the seller of the notice of assessment, except that,	2506
upon application and for reasonable cause, the tax commissioner	2507
may extend the period for submitting such evidence thirty days.	2508

(G) For the purpose of the proper administration of sections	2509
5741.01 to 5741.22 of the Revised Code, and to prevent the evasion	2510
of the tax hereby levied, it shall be presumed that any use,	2511
storage, or other consumption of tangible personal property in	2512
this state is subject to the tax until the contrary is	2513
established.	2514

Section 2. That existing sections 165.09, 902.11, 2915.01,	2515
4505.06, 4981.20, 5721.31, 5739.01, 5739.02, 5739.03, 5739.11, and	2516
5741.02 of the Revised Code are hereby repealed.	2517

Section 3.  Section 5739.01 of the Revised Code was amended	2518
by Am. Sub. H.B. 524, Am. Sub. S.B. 143, and Sub. S.B. 200, all of	2519
the 124th General Assembly. Comparison of these amendments in	2520
pursuance of section 1.52 of the Revised Code discloses that while	2521
certain of the amendments of these acts are reconcilable, certain	2522
other of the amendments are substantively irreconcilable. Am. Sub.	2523
H.B. 524 was passed on March 21, 2002; Am. Sub. S.B. 143 was	2524
passed on January 30, 2002; Sub. S.B. 200 was passed on March 13,	2525
2002. Section 5739.01 of the Revised Code is therefore presented	2526
in this act as it results from Am. Sub. H.B. 524 and Sub. S.B. 200	2527
and such of the amendments of Am. Sub. S.B. 143 as are not in	2528
conflict with the amendments of Sub. S.B. 200. The General	2529
Assembly, applying the principle stated in division (B) of section	2530
1.52 of the Revised Code that amendments are to be harmonized if	2531
reasonably capable of simultaneous operation, finds that the	2532
composite is the resulting version of the section in effect prior	2533
to the effective date of the section as presented in this act.	2534