As Introduced

126th General Assembly Regular Session 2005-2006

S. B. No. 26

Senators Amstutz, Austria, Clancy, Carey, Coughlin, Gardner, Goodman, Harris, Hottinger, Jacobson, Mumper, Padgett, Schuring, Spada, Wachtmann, Zurz 

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A BILL

To amend sections 5739.031, 5739.033, and 5739.034

1

and to enact section 5739.035 of the Revised Code

2

to establish a period during which vendors with

3

total Ohio taxable sales of one million dollars or

4

more must make the transition to destination-based

5

sourcing of their sales and to allow origin-based

6

situsing for sales made under certain

7

circumstances.

8

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

Section 1. That sections 5739.031, 5739.033, and 5739.034 be	9
amended and section 5739.035 of the Revised Code be enacted to	10
read as follows:	11

Sec. 5739.031.  (A) Upon application, the tax commissioner	12
may issue a direct payment permit that authorizes a consumer to	13
pay the sales tax levied by or pursuant to section 5739.02,	14
5739.021, 5739.023, or 5739.026 of the Revised Code or the use tax	15
levied by or pursuant to section 5741.02, 5741.021, 5741.022, or	16
5741.023 of the Revised Code directly to the state and waives the	17
collection of the tax by the vendor or seller if payment directly	18
to the state would improve compliance and increase the efficiency	19
of the administration of the tax. The commissioner may adopt rules	20
establishing the criteria for the issuance of such permits.	21

(B) Each permit holder, on or before the twenty-third day of	22
each month, shall make and file with the treasurer of state a	23
return for the preceding month in such form as is prescribed by	24
the tax commissioner and shall pay the tax shown on the return to	25
be due. The return shall show the sum of the prices of taxable	26
merchandise used and taxable services received, the amount of tax	27
due from the permit holder, and such other information as the	28
commissioner deems necessary. The commissioner, upon written	29
request by the permit holder, may extend the time for making and	30
filing returns and paying the tax. If the commissioner determines	31
that a permit holder's tax liability is not such as to merit	32
monthly filing, the commissioner may authorize the permit holder	33
to file returns and pay the tax at less frequent intervals. The	34
treasurer of state shall show on the return the date it was filed	35
and the amount of the payment remitted to the treasurer.	36
Thereafter, the treasurer immediately shall transmit all returns	37
filed under this section to the tax commissioner.	38

Any permit holder required to file a return and pay the tax	39
under this section whose total payment for any calendar year	40
equals or exceeds the amount shown in section 5739.032 of the	41
Revised Code shall make each payment required by this section in	42
the second ensuing and each succeeding year by electronic funds	43
transfer as prescribed by, and on or before the dates specified	44
in, section 5739.032 of the Revised Code, except as otherwise	45
prescribed by that section.	46

(C) For purposes of reporting and remitting the tax, the	47
price of tangible personal property or services purchased by, or	48
of tangible personal property produced by, the permit holder shall	49
be determined under division (G) of section 5741.01 of the Revised	50
Code. Except as otherwise provided in division (C)(E) of section	51
5739.033 of the Revised Code, the situs of any purchase	52
transaction made by the permit holder is the location where the	53
tangible personal property or service is received by the permit	54
holder.	55

(D) It shall be the duty of every permit holder required to	56
make a return and pay its tax under this section to keep and	57
preserve suitable records of purchases together with invoices of	58
purchases, bills of lading, asset ledgers, depreciation schedules,	59
transfer journals, and such other primary and secondary records	60
and documents in such form as the commissioner requires. All such	61
records and other documents shall be open during business hours to	62
the inspection of the tax commissioner, and shall be preserved for	63
a period of four years, unless the commissioner, in writing, has	64
authorized their destruction or disposal at an earlier date, or by	65
order or by reason of a waiver of the four-year time limitation	66
pursuant to section 5739.16 of the Revised Code requires that they	67
be kept longer.	68

(E) A permit granted pursuant to this section shall continue	69
to be valid until surrendered by the holder or canceled for cause	70
by the tax commissioner.	71

(F) Persons who hold a direct payment permit that has not	72
been canceled shall not be required to issue exemption	73
certificates and shall not be required to pay the tax as	74
prescribed in sections 5739.03, 5739.033, and 5741.12 of the	75
Revised Code. Such persons shall notify vendors and sellers from	76
whom purchases of tangible personal property or services are made,	77
of their direct payment permit number and that the tax is being	78
paid directly to the state. Upon receipt of such notice, such	79
vendor or seller shall be absolved from all duties and liabilities	80
imposed by section 5739.03 or 5741.04 of the Revised Code with	81
respect to sales of tangible personal property or services to such	82
permit holder.	83

Vendors and sellers who make sales upon which the tax is not	84
collected by reason of the provisions of this section shall	85
maintain records in such manner that the amount involved and	86
identity of the purchaser may be ascertained. The receipts from	87
such sales shall not be subject to the tax levied in section	88
5739.10 of the Revised Code.	89

Upon the cancellation or surrender of a direct payment	90
permit, the provisions of sections 5739.03, 5741.04, and 5741.12	91
of the Revised Code shall immediately apply to all purchases made	92
subsequent to such cancellation or surrender by the person who	93
previously held such permit, and such person shall so notify	94
vendors and sellers from whom purchases of tangible personal	95
property or services are made, in writing, prior to or at the time	96
of the first purchase after such cancellation or surrender. Upon	97
receipt of such notice, the vendor shall be subject to the	98
provisions of sections 5739.03 and 5739.10 of the Revised Code and	99
the seller shall be subject to the provisions of section 5741.04	100
of the Revised Code, with respect to all sales subsequently made	101
to such person. Failure of any such person to notify vendors or	102
sellers from whom purchases of tangible personal property or	103
services are made of the cancellation or surrender of a direct	104
payment permit shall be considered as a refusal to pay the tax by	105
the person required to issue such notice.	106

Sec. 5739.033. The(A) Except as provided in division (B) of	107
this section, divisions (C) to (I) of this section apply to sales	108
made on and after July 1, 2005. Sales made before July 1, 2005,	109
are subject to section 5739.035 of the Revised Code. On and after	110
January 1, 2005, any vendor may irrevocably elect to comply with	111
divisions (C) to (I) of this section for all of the vendor's sales	112
and places of business in this state.	113

Beginning January 1, 2005, the amount of tax due pursuant to	114
sections 5739.02, 5739.021, 5739.023, and 5739.026 of the Revised	115
Code is the sum of the taxes imposed pursuant to those sections at	116
the sourcing location of the sale as determined under this section	117
or, if applicable, under division (C) of section 5739.031 or	118
section 5739.034 of the Revised Code, or at the situs of the sale	119
as determined under section 5739.035 of the Revised Code. This	120
section applies only to a vendor's or seller's obligation to	121
collect and remit sales taxes under section 5739.02, 5739.021,	122
5739.023, or 5739.026 of the Revised Code or use taxes under	123
section 5741.02, 5741.021, 5741.022, or 5741.023 of the Revised	124
Code. Division (A) of this section does not apply in determining	125
the jurisdiction for which sellers are required to collect the use	126
tax under section 5741.05 of the Revised Code. This section does	127
not affect the obligation of a consumer to remit use taxes on the	128
storage, use, or other consumption of tangible personal property	129
or on the benefit realized of any service provided, to the	130
jurisdiction of that storage, use, or consumption, or benefit	131
realized.	132

(A)(B)(1) A vendor with total Ohio taxable sales in calendar	133
year 2004 that are less than five million dollars may continue to	134
situs its sales under section 5739.035 of the Revised Code until	135
January 1, 2007.	136

(2) A vendor with total Ohio taxable sales in calendar year	137
2006 that are less than three million dollars may continue to	138
situs its sales under section 5739.035 of the Revised Code until	139
January 1, 2008.	140

(3) A vendor with total Ohio taxable sales in calendar year	141
2007 that are less than one million dollars may situs its sales	142
under section 5739.035 of the Revised Code. If, in any calendar	143
year after January 1, 2009, the vendor has total Ohio taxable	144
sales of one million dollars or more, the vendor shall source its	145
sales under divisions (C) to (I) of this section and shall	146
continue to source its sales under those divisions, regardless of	147
the amount of total Ohio taxable sales in future years.	148

(C) Except for sales, other than leases, of titled motor	149
vehicles, titled watercraft, or titled outboard motors as provided	150
in section 5741.05 of the Revised Code, or as otherwise provided	151
in this section and section 5739.034 of the Revised Code, all	152
sales shall be sourced as follows:	153

(1) If the consumer or a donee designated by the consumer	154
receives tangible personal property or a service at a vendor's	155
place of business, or if the consumer or donee is present at a	156
vendor's place of business and concludes a sale of tangible	157
personal property or a service at the vendor's place of business,	158
regardless of the location of delivery of the property or service,	159
the sale shall be sourced to that place of business.	160

(2) WhenExcept as provided in division (C)(1) of this	161
section, when the tangible personal property or service is not	162
received at a vendor's place of business, the sale shall be	163
sourced to the location known to the vendor where the consumer or	164
the donee designated by the consumer receives the tangible	165
personal property or service, including the location indicated by	166
instructions for delivery to the consumer or the consumer's donee.	167

(3) If divisions (A)(C)(1) and (2) of this section do not	168
apply, the sale shall be sourced to the location indicated by an	169
address for the consumer that is available from the vendor's	170
business records that are maintained in the ordinary course of the	171
vendor's business, when use of that address does not constitute	172
bad faith.	173

(4) If divisions (A)(C)(1), (2), and (3) of this section do	174
not apply, the sale shall be sourced to the location indicated by	175
an address for the consumer obtained during the consummation of	176
the sale, including the address associated with the consumer's	177
payment instrument, if no other address is available, when use of	178
that address does not constitute bad faith.	179

(5) If divisions (A)(C)(1), (2), (3), and (4) of this section	180
do not apply, including in the circumstance where the vendor is	181
without sufficient information to apply any of those divisions,	182
the sale shall be sourced to the address from which tangible	183
personal property was shipped, or from which the service was	184
provided, disregarding any location that merely provided the	185
electronic transfer of the property sold or service provided.	186

(6) As used in division (A)(C) of this section, "receive"	187
means taking possession of tangible personal property or making	188
first use of a service. "Receive" does not include possession by a	189
shipping company on behalf of a consumer.	190

(B)(D)(1) Notwithstanding divisions (A)(C)(1) to (5) of this	191
section, a consumer that is not a holder of a direct payment	192
permit granted under section 5739.031 of the Revised Code, that	193
purchases computer software delivered electronically or a service	194
for use in business, and that knows at the time of purchase that	195
such software or service will be concurrently available for use in	196
more than one taxing jurisdiction shall deliver to the vendor in	197
conjunction with its purchase a multiple points of use exemption	198
form prescribed by the tax commissioner disclosing this fact. On	199
receipt of the multiple points of use exemption form, the vendor	200
is relieved of its obligation to collect, pay, or remit the tax	201
due, and the consumer must pay the tax directly to the state.	202

(2) A consumer that delivers such form to a vendor may use	203
any reasonable, consistent, and uniform method of apportioning the	204
tax due on the computer software delivered electronically or	205
service for use in business that is supported by the consumer's	206
business records as they existed at the time of the sale.	207

(3) The multiple points of use exemption form shall remain in	208
effect for all future sales by the vendor to the consumer until it	209
is revoked in writing by the consumer, except as to the consumer's	210
specific apportionment of a subsequent sale under division	211
(B)(D)(2) of this section and the facts existing at the time of	212
the sale.	213

(C)(E) A person who holds a direct payment permit issued	214
under section 5739.031 of the Revised Code is not required to	215
deliver a multiple points of use exemption form to a vendor. But	216
such permit holder shall comply with division (B)(D)(2) of this	217
section in apportioning the tax due on computer software delivered	218
electronically or a service used in business that will be	219
concurrently available for use in more than one taxing	220
jurisdiction.	221

(D)(F)(1) Notwithstanding divisions (A)(C)(1) to (5) of this	222
section, the purchaser of direct mail that is not a holder of a	223
direct payment permit shall provide to the vendor in conjunction	224
with the purchase either a direct mail form prescribed by the tax	225
commissioner, or information to show the jurisdictions to which	226
the direct mail is delivered to recipients.	227

(2) Upon receipt of a direct mail form, the vendor is	228
relieved of all obligations to collect, pay, or remit the	229
applicable tax and the purchaser is obligated to pay that tax on a	230
direct pay basis. A direct mail form shall remain in effect for	231
all future sales of direct mail by the vendor to the purchaser	232
until it is revoked in writing.	233

(3) Upon receipt of information from the purchaser showing	234
the jurisdictions to which the direct mail is delivered to	235
recipients, the vendor shall collect the tax according to the	236
delivery information provided by the purchaser. In the absence of	237
bad faith, the vendor is relieved of any further obligation to	238
collect tax on any transaction where the vendor has collected tax	239
pursuant to the delivery information provided by the purchaser.	240

(4) If the purchaser of direct mail does not have a direct	241
payment permit and does not provide the vendor with either a	242
direct mail form or delivery information as required by division	243
(D)(F)(1) of this section, the vendor shall collect the tax	244
according to division (A)(C)(5) of this section. Nothing in	245
division (D)(F)(4) of this section shall limit a purchaser's	246
obligation to pay sales or use tax to any state to which the	247
direct mail is delivered.	248

(5) If a purchaser of direct mail provides the vendor with	249
documentation of direct payment authority, the purchaser shall not	250
be required to provide a direct mail form or delivery information	251
to the vendor.	252

(E)(G) If the vendor provides lodging to transient guests as	253
specified in division (B)(2) of section 5739.01 of the Revised	254
Code, the sale shall be sourced to the location where the lodging	255
is located.	256

(F)(H)(1) As used in this division and division (G)(I) of	257
this section, "transportation equipment" means any of the	258
following:	259

(a) Locomotives and railcars that are utilized for the	260
carriage of persons or property in interstate commerce.	261

(b) Trucks and truck-tractors with a gross vehicle weight	262
rating of greater than ten thousand pounds, trailers,	263
semi-trailers, or passenger buses that are registered through the	264
international registration plan and are operated under authority	265
of a carrier authorized and certificated by the United States	266
department of transportation or another federal authority to	267
engage in the carriage of persons or property in interstate	268
commerce.	269

(c) Aircraft that are operated by air carriers authorized and	270
certificated by the United States department of transportation or	271
another federal authority to engage in the carriage of persons or	272
property in interstate or foreign commerce.	273

(d) Containers designed for use on and component parts	274
attached to or secured on the items set forth in division	275
(F)(H)(1)(a), (b), or (c) of this section.	276

(2) A sale, lease, or rental of transportation equipment	277
shall be sourced pursuant to division (A)(C) of this section.	278

(G)(I)(1) A lease or rental of tangible personal property	279
that does not require recurring periodic payments shall be sourced	280
pursuant to division (A)(C) of this section.	281

(2) A lease or rental of tangible personal property that	282
requires recurring periodic payments shall be sourced as follows:	283

(a) In the case of a motor vehicle, other than a motor	284
vehicle that is transportation equipment, such lease or rental	285
shall be sourced to the primary property location as follows:	286

(i) For a lease or rental taxed pursuant to division (A)(2)	287
of section 5739.02 of the Revised Code, the primary property	288
location is the address of the lessee or renter used for titling	289
the motor vehicle pursuant to section 4505.06 of the Revised Code	290
at the time the lease or rental is consummated.	291

(ii) For a lease or rental taxed pursuant to division (A)(3)	292
of section 5739.02 of the Revised Code, the primary property	293
location for each lease or rental installment is the primary	294
property location for the period covered by the installment.	295

(b) In the case of an aircraft, other than an aircraft that	296
is transportation equipment, such lease or rental shall be sourced	297
to the primary property location as follows:	298

(i) For a lease or rental taxed pursuant to division (A)(2)	299
of section 5739.02 of the Revised Code, the primary property	300
location is the primary property location at the time the lease or	301
rental is consummated.	302

(ii) For a lease or rental taxed pursuant to division (A)(3)	303
of section 5739.02 of the Revised Code, the primary property	304
location for each lease or rental installment is the primary	305
property location for the period covered by the installment.	306

(c) In the case of a watercraft or an outboard motor required	307
to be titled in this state pursuant to Chapter 1548. of the	308
Revised Code, such lease or rental shall be sourced to the primary	309
property location as follows:	310

(i) For a lease or rental taxed pursuant to division (A)(2)	311
of section 5739.02 of the Revised Code, the primary property	312
location is the address of the lessee or renter shown on the	313
title.	314

(ii) For a lease or rental taxed pursuant to division (A)(3)	315
of section 5739.02 of the Revised Code, the primary property	316
location for the initial lease or rental installment is the	317
address of the lessee or renter shown on the title. For each	318
subsequent installment, the primary property location is the	319
primary property location for the period covered by the	320
installment.	321

(d) In the case of a lease or rental of all other tangible	322
personal property, other than transportation equipment, such lease	323
or rental shall be sourced as follows:	324

(i) For a lease or rental that is taxed pursuant to division	325
(A)(2) of section 5739.02 of the Revised Code, the lease or rental	326
shall be sourced pursuant to division (A)(C) of this section at	327
the time the lease or rental is consummated.	328

(ii) For a lease or rental that is taxed pursuant to division	329
(A)(3) of section 5739.02 of the Revised Code, the initial lease	330
or rental installment shall be sourced pursuant to division (A)(C)	331
of this section. Each subsequent installment shall be sourced to	332
the primary property location for the period covered by the	333
installment.	334

(3) As used in division (G)(I) of this section, "primary	335
property location" means an address for tangible personal property	336
provided by the lessee or renter that is available to the lessor	337
or owner from its records maintained in the ordinary course of	338
business, when use of that address does not constitute bad faith.	339

Sec. 5739.034. (A) As used in this section:

340

(1) "Air-to-ground radiotelephone service" means a radio	341
service, as defined in 47 C.F.R. 22.99, in which common carriers	342
are authorized to offer and provide radio telecommunications	343
service for hire to subscribers in aircraft.	344

(2) "Call-by-call basis" means any method of charging for	345
telecommunications services where the price is measured by	346
individual calls.	347

(3) "Customer" means the person or entity that contracts with	348
a seller of telecommunications service. If the end user of	349
telecommunications service is not the contracting party, the end	350
user of the telecommunications service is the customer of the	351
telecommunications service. "Customer" does not include a reseller	352
of telecommunications service or of mobile telecommunications	353
service of a serving carrier under an agreement to serve the	354
customer outside the home service provider's licensed service	355
area.	356

(4) "End user" means the person who utilizes the	357
telecommunications service. In the case of a person other than an	358
individual, "end user" means the individual who utilizes the	359
service on behalf of the person.	360

(5) "Home service provider" has the same meaning as in the	361
"Mobile Telecommunications Sourcing Act," Pub. L. No. 106-252, 114	362
Stat. 631 (2000), 4 U.S.C. 124(5), as amended.	363

(6) "Place of primary use" means the street address	364
representative of where the customer's use of the	365
telecommunications service primarily occurs, which must be the	366
residential street address or the primary business street address	367
of the customer. In the case of mobile telecommunications	368
services, "place of primary use" must be within the licensed	369
service area of the home service provider.	370

(7) "Post-paid calling service" means the telecommunications	371
service obtained by making a payment on a call-by-call basis	372
either through the use of a credit card or payment mechanism such	373
as a bank card, travel card, credit card, or debit card, or by	374
charge made to a telephone number that is not associated with the	375
origination or termination of the telecommunications service.	376
"Post-paid calling service" includes a telecommunications service	377
that would be a prepaid calling service, but for the fact that it	378
is not exclusively a telecommunications service.	379

(8) "Prepaid calling service" means the right to access	380
exclusively a telecommunications service that must be paid for in	381
advance, that enables the origination of calls using an access	382
number or authorization code, whether manually or electronically	383
dialed, and that is sold in predetermined units or dollars of	384
which the number declines with use in a known amount.	385

(9) "Service address" means:

386

(a) The location of the telecommunications equipment to which	387
a customer's call is charged and from which the call originates or	388
terminates, regardless of where the call is billed or paid.	389

(b) If the location in division (A)(9)(a) of this section is	390
not known, "service address" means the origination point of the	391
signal of the telecommunications service first identified by	392
either the seller's telecommunications system or in information	393
received by the seller from its service provider, where the system	394
used to transport such signals is not that of the seller.	395

(c) If the locations in divisions (A)(9)(a) and (b) of this	396
section are not known, "service address" means the location of the	397
customer's place of primary use.	398

(B) The amount of tax due pursuant to sections 5739.02,	399
5739.021, 5739.023, and 5739.026 of the Revised Code on sales of	400
telecommunications service, information service, or mobile	401
telecommunications service, is the sum of the taxes imposed	402
pursuant to those sections at the sourcing location of the sale as	403
determined under this section.	404

(C) Except for the telecommunications services described in	405
division (E) of this section, the sale of telecommunications	406
service sold on a call-by-call basis shall be sourced to each	407
level of taxing jurisdiction where the call originates and	408
terminates in that jurisdiction, or each level of taxing	409
jurisdiction where the call either originates or terminates and in	410
which the service address also is located.	411

(D) Except for the telecommunications services described in	412
division (E) of this section, a sale of telecommunications	413
services sold on a basis other than a call-by-call basis shall be	414
sourced to the customer's place of primary use.	415

(E) The sale of the following telecommunications services	416
shall be sourced to each level of taxing jurisdiction, as follows:	417

(1) A sale of mobile telecommunications service, other than	418
air-to-ground radiotelephone service and prepaid calling service,	419
shall be sourced to the customer's place of primary use as	420
required by the Mobile Telecommunications Sourcing Act.	421

(2) A sale of post-paid calling service shall be sourced to	422
the origination point of the telecommunications signal as first	423
identified by the service provider's telecommunications system, or	424
information received by the seller from its service provider,	425
where the system used to transport such signals is not that of the	426
seller.	427

(3) A sale of prepaid calling service made prior to January	428
1, 2004, shall be sourced under division (H) of section 5739.033	429
of the Revised Code. On and after January 1, 2004, a sale of	430
mobile telecommunications service that is a prepaid	431
telecommunications service shall be sourced under division	432
(A)(5)(C) of section 5739.033 of the Revised Code, but inor, if	433
permitted by division (B) of that section, shall be sitused under	434
section 5739.035 of the Revised Code. In lieu of sourcing the sale	435
of thethat service under thatdivision (C)(5) of section 5739.033	436
of the Revised Code, it may be sourced to the location associated	437
with the mobile telephone number.	438

Sec. 5739.035. This section only applies to sales that are	439
required to be sitused under this section pursuant to division (A)	440
of section 5739.033 of the Revised Code.	441

(A) Except as otherwise provided in this section, the situs	442
of all sales is the vendor's place of business.	443

(1) If the consumer or the consumer's agent takes possession	444
of the tangible personal property at a place of business of the	445
vendor where the purchase contract or agreement was made, the	446
situs of the sale is that place of business.	447

(2) If the consumer or the consumer's agent takes possession	448
of the tangible personal property other than at a place of	449
business of the vendor, or takes possession at a warehouse or	450
similar facility of the vendor, the situs of the sale is the	451
vendor's place of business where the purchase contract or	452
agreement was made or the purchase order was received.	453

(3) If the vendor provides a service specified in division	454
(B)(3)(a), (b), (c), (d), (n), (o), (r), (s), or (t) of section	455
5739.01 or makes a sale specified in division (B)(8) of section	456
5739.01 of the Revised Code, the situs of the sale is the vendor's	457
place of business where the service is performed or the contract	458
or agreement for the service was made or the purchase order was	459
received.	460

(B) If the vendor is a transient vendor as specified in	461
division (B) of section 5739.17 of the Revised Code, the situs of	462
the sale is the vendor's temporary place of business or, if the	463
transient vendor is the lessor of titled motor vehicles, titled	464
watercraft, or titled outboard motors, at the location where the	465
lessee keeps the leased property.	466

(C) If the vendor makes sales of tangible personal property	467
from a stock of goods carried in a motor vehicle, from which the	468
purchaser makes selection and takes possession, or from which the	469
vendor sells tangible personal property the quantity of which has	470
not been determined prior to the time the purchaser takes	471
possession, the situs of the sale is the location of the motor	472
vehicle when the sale is made.	473

(D) If the vendor is a delivery vendor as specified in	474
division (D) of section 5739.17 of the Revised Code, the situs of	475
the sale is the place where the tangible personal property is	476
delivered, where the leased property is used, or where the service	477
is performed or received.	478

(E) If the vendor provides a service specified in division	479
(B)(3)(e), (g), (h), (j), (k), (l), (m), (q), or (u) of section	480
5739.01 of the Revised Code, the situs of the sale is the location	481
of the consumer where the service is performed or received.	482

(F) If the vendor provides lodging to transient guests as	483
specified in division (B)(2) of section 5739.01 of the Revised	484
Code, the situs of the sale is the location where the lodging is	485
located.	486

(G) If the vendor sells a warranty, maintenance or service	487
contract, or similar agreement as specified in division (B)(7) of	488
section 5739.01 of the Revised Code and the vendor is a delivery	489
vendor, the situs of the sale is the location of the consumer. If	490
the vendor is not a delivery vendor, the situs of the sale is the	491
vendor's place of business where the contract or agreement was	492
made, unless the warranty or contract is a component of the sale	493
of a titled motor vehicle, titled watercraft, or titled outboard	494
motor, in which case the situs of the sale is the county of	495
titling.	496

(H) Except as otherwise provided in this division, if the	497
vendor sells a prepaid authorization number or a prepaid telephone	498
calling card, the situs of the sale is the vendor's place of	499
business and shall be taxed at the time of sale. If the vendor	500
sells a prepaid authorization number or prepaid telephone calling	501
card through a telephone call, electronic commerce, or any other	502
form of remote commerce, the situs of the sale is the consumer's	503
shipping address, or, if there is no item shipped, at the	504
consumer's billing address.	505

Section 2. That existing sections 5739.031, 5739.033, and	506
5739.034 of the Revised Code are hereby repealed.	507

Section 3. Sections 5739.031, 5739.033, 5739.034, and	508
5739.035 of the Revised Code, as amended or enacted by this act,	509
provide for or are essential to the implementation of a tax levy.	510
Therefore, under Ohio Constitution, Article II, Section 1d, those	511
sections as amended or enacted by this act are not subject to the	512
referendum and go into immediate effect when this act becomes law.	513

This section provides for or is essential to the	514
implementation of a tax levy. Therefore, under Ohio Constitution,	515
Article II, Section 1d, this section is not subject to the	516
referendum and goes into immediate effect when this act becomes	517
law.	518