As Reported by the Senate Ways and Means and Economic Development Committee

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 157

Representative Hughes 

Cosponsors: Representatives Bubp, Schindel, Huffman, McGregor, J., Seitz, Combs, Miller, Collier, Fende, Evans, Widener, Latta, Setzer, Stebelton, Uecker, Yuko, Adams, Luckie, Gibbs, Aslanides, Bacon, Batchelder, Bolon, Book, Boyd, Brady, Brown, Budish, Coley, Distel, Domenick, Dyer, Flowers, Foley, Garrison, Gerberry, Hagan, R., Harwood, Lundy, Mandel, Oelslager, Otterman, Patton, Sayre, Stewart, D., Wachtmann, Williams, B., Zehringer 

Senators Amstutz, Spada, Schaffer 

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A BILL

To amend sections 3953.33, 5701.11, 5739.01, 5739.02,

1

5739.035, and 5747.08 of the Revised Code to

2

require a box on personal income tax returns that

3

a taxpayer may check to authorize a paid tax

4

preparer to speak to the Department of Taxation

5

about certain matters concerning the return, to

6

exempt property used to provide electronic

7

publishing services from sales and use taxation,

8

to incorporate changes in the Internal Revenue

9

Code since December 28, 2006, into Ohio's tax law,

10

and to revise the date by which title insurance

11

agents or agencies must have independent reviews

12

made of certain accounts.

13

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

Section 1. That sections 3953.33, 5701.11, 5739.01, 5739.02,	14
5739.035, and 5747.08 of the Revised Code be amended to read as	15
follows:	16

Sec. 3953.33. (A) Every title insurance agent or agency that	17
handles escrow, settlement, closing, or security deposit accounts	18
shall have an annual independent review made of its escrow,	19
settlement, closing, and security deposit accounts on a	20
fiscal-year basis within ninety days after the close of the	21
previous fiscal yeareach year on or before the thirty-first day	22
of December for the twelve-month period ending the preceding	23
thirty-first day of August. The title insurance agent or agency	24
shall provide proof of the annual review to each title insurance	25
company that it represents. The superintendent of insurance shall	26
promulgate rules under Chapter 119. of the Revised Code setting	27
forth the minimum threshold level at which a review is required,	28
the standards of the review, the minimum qualifications of the	29
independent party conducting the review, and the form of the	30
report that is required. The superintendent may also require title	31
insurance agents or agencies to provide a copy of their annual	32
review reports to the superintendent. The annual review required	33
by this division does not apply to interest on lawyer's trust	34
accounts established and maintained by an attorney pursuant to	35
sections 4705.09 and 4705.10 of the Revised Code.	36

(B) Title insurance agents and agencies shall allow the	37
superintendent and each and every title insurer that they	38
represent reasonable access to all of their escrow, settlement,	39
closing, and security deposit accounts and any and all supporting	40
account information in order to ascertain the safety and security	41
of the funds held by the title insurance agent or agency.	42

(C) Title insurance agents and agencies shall maintain	43
sufficient records of their affairs, including their escrow	44
operations and escrow trust accounts, so that the superintendent	45
may adequately ensure that the title insurance agent or agency is	46
in compliance of this chapter. Records kept pursuant to this	47
section shall be kept for a period of not less than ten years	48
following the transactions to which the records relate. The	49
superintendent may prescribe the specific records and documents to	50
be kept.	51

Sec. 5701.11.  The effective date referred to inwhich this	52
section refers is the effective date of this section as amended by	53
H.B. 699157 of the 126th127th general assembly.	54

(A)(1) Except as provided under division (A)(2) or (B) of	55
this section, any reference in Title LVII of the Revised Code to	56
the Internal Revenue Code, to the Internal Revenue Code "as	57
amended," to other laws of the United States, or to other laws of	58
the United States, "as amended," means the Internal Revenue Code	59
or other laws of the United States as they exist on the effective	60
date. This	61

(2) This section does not apply to any reference in Title	62
LVII of the Revised Code to the Internal Revenue Code as of a date	63
certain specifying the day, month, and year, or to other laws of	64
the United States as of a date certain specifying the day, month,	65
and year.	66

(B)(1) For purposes of applying section 5733.04, 5745.01, or	67
5747.01 of the Revised Code to a taxpayer's taxable year ending in	68
after December 28, 2006, and before the effective date, a taxpayer	69
may irrevocably elect to incorporate the provisions of the	70
Internal Revenue Code or other laws of the United States that are	71
in effect for federal income tax purposes for that taxable year if	72
those provisions differ from the provisions that, under division	73
(A) of this section, would otherwise be incorporated into section	74
5733.04, 5745.01, or 5747.01 of the Revised Code for that taxable	75
year under division (A) of this sectionapply. The filing of a	76
report or return by the taxpayer for that taxable year	77
incorporatingof a report or return that incorporates the	78
provisions of the Internal Revenue Code or other laws of the	79
United States applicable for federal income tax purposes tofor	80
that taxable year, withoutand that does not include any	81
adjustments to reverse the effects of any differences between	82
those provisions and the provisions that would otherwise be	83
incorporated under division (A) of this sectionapply, constitutes	84
the making of an irrevocable election under this division for that	85
taxable year.	86

(2) Elections under prior versions of division (B)(1) of this	87
section remain in effect for the taxable years to which they	88
apply.	89

Sec. 5739.01.  As used in this chapter:

90

(A) "Person" includes individuals, receivers, assignees,	91
trustees in bankruptcy, estates, firms, partnerships,	92
associations, joint-stock companies, joint ventures, clubs,	93
societies, corporations, the state and its political subdivisions,	94
and combinations of individuals of any form.	95

(B) "Sale" and "selling" include all of the following	96
transactions for a consideration in any manner, whether absolutely	97
or conditionally, whether for a price or rental, in money or by	98
exchange, and by any means whatsoever:	99

(1) All transactions by which title or possession, or both,	100
of tangible personal property, is or is to be transferred, or a	101
license to use or consume tangible personal property is or is to	102
be granted;	103

(2) All transactions by which lodging by a hotel is or is to	104
be furnished to transient guests;	105

(3) All transactions by which:

106

(a) An item of tangible personal property is or is to be	107
repaired, except property, the purchase of which would not be	108
subject to the tax imposed by section 5739.02 of the Revised Code;	109

(b) An item of tangible personal property is or is to be	110
installed, except property, the purchase of which would not be	111
subject to the tax imposed by section 5739.02 of the Revised Code	112
or property that is or is to be incorporated into and will become	113
a part of a production, transmission, transportation, or	114
distribution system for the delivery of a public utility service;	115

(c) The service of washing, cleaning, waxing, polishing, or	116
painting a motor vehicle is or is to be furnished;	117

(d) Until August 1, 2003, industrial laundry cleaning	118
services are or are to be provided and, on and after August 1,	119
2003, laundry and dry cleaning services are or are to be provided;	120

(e) Automatic data processing, computer services, or	121
electronic information services are or are to be provided for use	122
in business when the true object of the transaction is the receipt	123
by the consumer of automatic data processing, computer services,	124
or electronic information services rather than the receipt of	125
personal or professional services to which automatic data	126
processing, computer services, or electronic information services	127
are incidental or supplemental. Notwithstanding any other	128
provision of this chapter, such transactions that occur between	129
members of an affiliated group are not sales. An "affiliated	130
group" means two or more persons related in such a way that one	131
person owns or controls the business operation of another member	132
of the group. In the case of corporations with stock, one	133
corporation owns or controls another if it owns more than fifty	134
per cent of the other corporation's common stock with voting	135
rights.	136

(f) Telecommunications service, including prepaid calling	137
service, prepaid wireless calling service, or ancillary service,	138
is or is to be provided, but not including coin-operated telephone	139
service;	140

(g) Landscaping and lawn care service is or is to be	141
provided;	142

(h) Private investigation and security service is or is to be	143
provided;	144

(i) Information services or tangible personal property is	145
provided or ordered by means of a nine hundred telephone call;	146

(j) Building maintenance and janitorial service is or is to	147
be provided;	148

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

149

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

150

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

151

(n) Physical fitness facility service is or is to be	152
provided;	153

(o) Recreation and sports club service is or is to be	154
provided;	155

(p) On and after August 1, 2003, satellite broadcasting	156
service is or is to be provided;	157

(q) On and after August 1, 2003, personal care service is or	158
is to be provided to an individual. As used in this division,	159
"personal care service" includes skin care, the application of	160
cosmetics, manicuring, pedicuring, hair removal, tattooing, body	161
piercing, tanning, massage, and other similar services. "Personal	162
care service" does not include a service provided by or on the	163
order of a licensed physician or licensed chiropractor, or the	164
cutting, coloring, or styling of an individual's hair.	165

(r) On and after August 1, 2003, the transportation of	166
persons by motor vehicle or aircraft is or is to be provided, when	167
the transportation is entirely within this state, except for	168
transportation provided by an ambulance service, by a transit bus,	169
as defined in section 5735.01 of the Revised Code, and	170
transportation provided by a citizen of the United States holding	171
a certificate of public convenience and necessity issued under 49	172
U.S.C. 41102;	173

(s) On and after August 1, 2003, motor vehicle towing service	174
is or is to be provided. As used in this division, "motor vehicle	175
towing service" means the towing or conveyance of a wrecked,	176
disabled, or illegally parked motor vehicle.	177

(t) On and after August 1, 2003, snow removal service is or	178
is to be provided. As used in this division, "snow removal	179
service" means the removal of snow by any mechanized means, but	180
does not include the providing of such service by a person that	181
has less than five thousand dollars in sales of such service	182
during the calendar year.	183

(u) Electronic publishing service is or is to be provided to	184
a consumer for use in business, except that such transactions	185
occurring between members of an affiliated group, as defined in	186
division (B)(3)(e) of this section, are not sales.	187

(4) All transactions by which printed, imprinted,	188
overprinted, lithographic, multilithic, blueprinted, photostatic,	189
or other productions or reproductions of written or graphic matter	190
are or are to be furnished or transferred;	191

(5) The production or fabrication of tangible personal	192
property for a consideration for consumers who furnish either	193
directly or indirectly the materials used in the production of	194
fabrication work; and include the furnishing, preparing, or	195
serving for a consideration of any tangible personal property	196
consumed on the premises of the person furnishing, preparing, or	197
serving such tangible personal property. Except as provided in	198
section 5739.03 of the Revised Code, a construction contract	199
pursuant to which tangible personal property is or is to be	200
incorporated into a structure or improvement on and becoming a	201
part of real property is not a sale of such tangible personal	202
property. The construction contractor is the consumer of such	203
tangible personal property, provided that the sale and	204
installation of carpeting, the sale and installation of	205
agricultural land tile, the sale and erection or installation of	206
portable grain bins, or the provision of landscaping and lawn care	207
service and the transfer of property as part of such service is	208
never a construction contract.	209

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

210

(a) "Agricultural land tile" means fired clay or concrete	211
tile, or flexible or rigid perforated plastic pipe or tubing,	212
incorporated or to be incorporated into a subsurface drainage	213
system appurtenant to land used or to be used directly in	214
production by farming, agriculture, horticulture, or floriculture.	215
The term does not include such materials when they are or are to	216
be incorporated into a drainage system appurtenant to a building	217
or structure even if the building or structure is used or to be	218
used in such production.	219

(b) "Portable grain bin" means a structure that is used or to	220
be used by a person engaged in farming or agriculture to shelter	221
the person's grain and that is designed to be disassembled without	222
significant damage to its component parts.	223

(6) All transactions in which all of the shares of stock of a	224
closely held corporation are transferred, if the corporation is	225
not engaging in business and its entire assets consist of boats,	226
planes, motor vehicles, or other tangible personal property	227
operated primarily for the use and enjoyment of the shareholders;	228

(7) All transactions in which a warranty, maintenance or	229
service contract, or similar agreement by which the vendor of the	230
warranty, contract, or agreement agrees to repair or maintain the	231
tangible personal property of the consumer is or is to be	232
provided;	233

(8) The transfer of copyrighted motion picture films used	234
solely for advertising purposes, except that the transfer of such	235
films for exhibition purposes is not a sale.	236

(9) On and after August 1, 2003, all transactions by which	237
tangible personal property is or is to be stored, except such	238
property that the consumer of the storage holds for sale in the	239
regular course of business.	240

Except as provided in this section, "sale" and "selling" do	241
not include transfers of interest in leased property where the	242
original lessee and the terms of the original lease agreement	243
remain unchanged, or professional, insurance, or personal service	244
transactions that involve the transfer of tangible personal	245
property as an inconsequential element, for which no separate	246
charges are made.	247

(C) "Vendor" means the person providing the service or by	248
whom the transfer effected or license given by a sale is or is to	249
be made or given and, for sales described in division (B)(3)(i) of	250
this section, the telecommunications service vendor that provides	251
the nine hundred telephone service; if two or more persons are	252
engaged in business at the same place of business under a single	253
trade name in which all collections on account of sales by each	254
are made, such persons shall constitute a single vendor.	255

Physicians, dentists, hospitals, and veterinarians who are	256
engaged in selling tangible personal property as received from	257
others, such as eyeglasses, mouthwashes, dentifrices, or similar	258
articles, are vendors. Veterinarians who are engaged in	259
transferring to others for a consideration drugs, the dispensing	260
of which does not require an order of a licensed veterinarian or	261
physician under federal law, are vendors.	262

(D)(1) "Consumer" means the person for whom the service is	263
provided, to whom the transfer effected or license given by a sale	264
is or is to be made or given, to whom the service described in	265
division (B)(3)(f) or (i) of this section is charged, or to whom	266
the admission is granted.	267

(2) Physicians, dentists, hospitals, and blood banks operated	268
by nonprofit institutions and persons licensed to practice	269
veterinary medicine, surgery, and dentistry are consumers of all	270
tangible personal property and services purchased by them in	271
connection with the practice of medicine, dentistry, the rendition	272
of hospital or blood bank service, or the practice of veterinary	273
medicine, surgery, and dentistry. In addition to being consumers	274
of drugs administered by them or by their assistants according to	275
their direction, veterinarians also are consumers of drugs that	276
under federal law may be dispensed only by or upon the order of a	277
licensed veterinarian or physician, when transferred by them to	278
others for a consideration to provide treatment to animals as	279
directed by the veterinarian.	280

(3) A person who performs a facility management, or similar	281
service contract for a contractee is a consumer of all tangible	282
personal property and services purchased for use in connection	283
with the performance of such contract, regardless of whether title	284
to any such property vests in the contractee. The purchase of such	285
property and services is not subject to the exception for resale	286
under division (E)(1) of this section.	287

(4)(a) In the case of a person who purchases printed matter	288
for the purpose of distributing it or having it distributed to the	289
public or to a designated segment of the public, free of charge,	290
that person is the consumer of that printed matter, and the	291
purchase of that printed matter for that purpose is a sale.	292

(b) In the case of a person who produces, rather than	293
purchases, printed matter for the purpose of distributing it or	294
having it distributed to the public or to a designated segment of	295
the public, free of charge, that person is the consumer of all	296
tangile personal property and services purchased for use or	297
consumption in the production of that printed matter. That person	298
is not entitled to claim exemption under division (B)(42)(f) of	299
section 5739.02 of the Revised Code for any material incorporated	300
into the printed matter or any equipment, supplies, or services	301
primarily used to produce the printed matter.	302

(c) The distribution of printed matter to the public or to a	303
designated segment of the public, free of charge, is not a sale to	304
the members of the public to whom the printed matter is	305
distributed or to any persons who purchase space in the printed	306
matter for advertising or other purposes.	307

(5) A person who makes sales of any of the services listed in	308
division (B)(3) of this section is the consumer of any tangible	309
personal property used in performing the service. The purchase of	310
that property is not subject to the resale exception under	311
division (E)(1) of this section.	312

(6) A person who engages in highway transportation for hire	313
is the consumer of all packaging materials purchased by that	314
person and used in performing the service, except for packaging	315
materials sold by such person in a transaction separate from the	316
service.	317

(E) "Retail sale" and "sales at retail" include all sales,	318
except those in which the purpose of the consumer is to resell the	319
thing transferred or benefit of the service provided, by a person	320
engaging in business, in the form in which the same is, or is to	321
be, received by the person.	322

(F) "Business" includes any activity engaged in by any person	323
with the object of gain, benefit, or advantage, either direct or	324
indirect. "Business" does not include the activity of a person in	325
managing and investing the person's own funds.	326

(G) "Engaging in business" means commencing, conducting, or	327
continuing in business, and liquidating a business when the	328
liquidator thereof holds itself out to the public as conducting	329
such business. Making a casual sale is not engaging in business.	330

(H)(1)(a) "Price," except as provided in divisions (H)(2) and	331
(3) of this section, means the total amount of consideration,	332
including cash, credit, property, and services, for which tangible	333
personal property or services are sold, leased, or rented, valued	334
in money, whether received in money or otherwise, without any	335
deduction for any of the following:	336

(i) The vendor's cost of the property sold;

337

(ii) The cost of materials used, labor or service costs,	338
interest, losses, all costs of transportation to the vendor, all	339
taxes imposed on the vendor, including the tax imposed under	340
Chapter 5751. of the Revised Code, and any other expense of the	341
vendor;	342

(iii) Charges by the vendor for any services necessary to	343
complete the sale;	344

(iv) On and after August 1, 2003, delivery charges. As used	345
in this division, "delivery charges" means charges by the vendor	346
for preparation and delivery to a location designated by the	347
consumer of tangible personal property or a service, including	348
transportation, shipping, postage, handling, crating, and packing.	349

(v) Installation charges;

350

(vi) Credit for any trade-in.

351

(b) "Price" includes consideration received by the vendor	352
from a third party, if the vendor actually receives the	353
consideration from a party other than the consumer, and the	354
consideration is directly related to a price reduction or discount	355
on the sale; the vendor has an obligation to pass the price	356
reduction or discount through to the consumer; the amount of the	357
consideration attributable to the sale is fixed and determinable	358
by the vendor at the time of the sale of the item to the consumer;	359
and one of the following criteria is met:	360

(i) The consumer presents a coupon, certificate, or other	361
document to the vendor to claim a price reduction or discount	362
where the coupon, certificate, or document is authorized,	363
distributed, or granted by a third party with the understanding	364
that the third party will reimburse any vendor to whom the coupon,	365
certificate, or document is presented;	366

(ii) The consumer identifies the consumer's self to the	367
seller as a member of a group or organization entitled to a price	368
reduction or discount. A preferred customer card that is available	369
to any patron does not constitute membership in such a group or	370
organization.	371

(iii) The price reduction or discount is identified as a	372
third party price reduction or discount on the invoice received by	373
the consumer, or on a coupon, certificate, or other document	374
presented by the consumer.	375

(c) "Price" does not include any of the following:

376

(i) Discounts, including cash, term, or coupons that are not	377
reimbursed by a third party that are allowed by a vendor and taken	378
by a consumer on a sale;	379

(ii) Interest, financing, and carrying charges from credit	380
extended on the sale of tangible personal property or services, if	381
the amount is separately stated on the invoice, bill of sale, or	382
similar document given to the purchaser;	383

(iii) Any taxes legally imposed directly on the consumer that	384
are separately stated on the invoice, bill of sale, or similar	385
document given to the consumer. For the purpose of this division,	386
the tax imposed under Chapter 5751. of the Revised Code is not a	387
tax directly on the consumer, even if the tax or a portion thereof	388
is separately stated.	389

(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this	390
section, any discount allowed by an automobile manufacturer to its	391
employee, or to the employee of a supplier, on the purchase of a	392
new motor vehicle from a new motor vehicle dealer in this state.	393

(2) In the case of a sale of any new motor vehicle by a new	394
motor vehicle dealer, as defined in section 4517.01 of the Revised	395
Code, in which another motor vehicle is accepted by the dealer as	396
part of the consideration received, "price" has the same meaning	397
as in division (H)(1) of this section, reduced by the credit	398
afforded the consumer by the dealer for the motor vehicle received	399
in trade.	400

(3) In the case of a sale of any watercraft or outboard motor	401
by a watercraft dealer licensed in accordance with section	402
1547.543 of the Revised Code, in which another watercraft,	403
watercraft and trailer, or outboard motor is accepted by the	404
dealer as part of the consideration received, "price" has the same	405
meaning as in division (H)(1) of this section, reduced by the	406
credit afforded the consumer by the dealer for the watercraft,	407
watercraft and trailer, or outboard motor received in trade. As	408
used in this division, "watercraft" includes an outdrive unit	409
attached to the watercraft.	410

(I) "Receipts" means the total amount of the prices of the	411
sales of vendors, provided that cash discounts allowed and taken	412
on sales at the time they are consummated are not included, minus	413
any amount deducted as a bad debt pursuant to section 5739.121 of	414
the Revised Code. "Receipts" does not include the sale price of	415
property returned or services rejected by consumers when the full	416
sale price and tax are refunded either in cash or by credit.	417

(J) "Place of business" means any location at which a person	418
engages in business.	419

(K) "Premises" includes any real property or portion thereof	420
upon which any person engages in selling tangible personal	421
property at retail or making retail sales and also includes any	422
real property or portion thereof designated for, or devoted to,	423
use in conjunction with the business engaged in by such person.	424

(L) "Casual sale" means a sale of an item of tangible	425
personal property that was obtained by the person making the sale,	426
through purchase or otherwise, for the person's own use and was	427
previously subject to any state's taxing jurisdiction on its sale	428
or use, and includes such items acquired for the seller's use that	429
are sold by an auctioneer employed directly by the person for such	430
purpose, provided the location of such sales is not the	431
auctioneer's permanent place of business. As used in this	432
division, "permanent place of business" includes any location	433
where such auctioneer has conducted more than two auctions during	434
the year.	435

(M) "Hotel" means every establishment kept, used, maintained,	436
advertised, or held out to the public to be a place where sleeping	437
accommodations are offered to guests, in which five or more rooms	438
are used for the accommodation of such guests, whether the rooms	439
are in one or several structures.	440

(N) "Transient guests" means persons occupying a room or	441
rooms for sleeping accommodations for less than thirty consecutive	442
days.	443

(O) "Making retail sales" means the effecting of transactions	444
wherein one party is obligated to pay the price and the other	445
party is obligated to provide a service or to transfer title to or	446
possession of the item sold. "Making retail sales" does not	447
include the preliminary acts of promoting or soliciting the retail	448
sales, other than the distribution of printed matter which	449
displays or describes and prices the item offered for sale, nor	450
does it include delivery of a predetermined quantity of tangible	451
personal property or transportation of property or personnel to or	452
from a place where a service is performed, regardless of whether	453
the vendor is a delivery vendor.	454

(P) "Used directly in the rendition of a public utility	455
service" means that property that is to be incorporated into and	456
will become a part of the consumer's production, transmission,	457
transportation, or distribution system and that retains its	458
classification as tangible personal property after such	459
incorporation; fuel or power used in the production, transmission,	460
transportation, or distribution system; and tangible personal	461
property used in the repair and maintenance of the production,	462
transmission, transportation, or distribution system, including	463
only such motor vehicles as are specially designed and equipped	464
for such use. Tangible personal property and services used	465
primarily in providing highway transportation for hire are not	466
used directly in the rendition of a public utility service. In	467
this definition, "public utility" includes a citizen of the United	468
States holding, and required to hold, a certificate of public	469
convenience and necessity issued under 49 U.S.C. 41102.	470

(Q) "Refining" means removing or separating a desirable	471
product from raw or contaminated materials by distillation or	472
physical, mechanical, or chemical processes.	473

(R) "Assembly" and "assembling" mean attaching or fitting	474
together parts to form a product, but do not include packaging a	475
product.	476

(S) "Manufacturing operation" means a process in which	477
materials are changed, converted, or transformed into a different	478
state or form from which they previously existed and includes	479
refining materials, assembling parts, and preparing raw materials	480
and parts by mixing, measuring, blending, or otherwise committing	481
such materials or parts to the manufacturing process.	482
"Manufacturing operation" does not include packaging.	483

(T) "Fiscal officer" means, with respect to a regional	484
transit authority, the secretary-treasurer thereof, and with	485
respect to a county that is a transit authority, the fiscal	486
officer of the county transit board if one is appointed pursuant	487
to section 306.03 of the Revised Code or the county auditor if the	488
board of county commissioners operates the county transit system.	489

(U) "Transit authority" means a regional transit authority	490
created pursuant to section 306.31 of the Revised Code or a county	491
in which a county transit system is created pursuant to section	492
306.01 of the Revised Code. For the purposes of this chapter, a	493
transit authority must extend to at least the entire area of a	494
single county. A transit authority that includes territory in more	495
than one county must include all the area of the most populous	496
county that is a part of such transit authority. County population	497
shall be measured by the most recent census taken by the United	498
States census bureau.	499

(V) "Legislative authority" means, with respect to a regional	500
transit authority, the board of trustees thereof, and with respect	501
to a county that is a transit authority, the board of county	502
commissioners.	503

(W) "Territory of the transit authority" means all of the	504
area included within the territorial boundaries of a transit	505
authority as they from time to time exist. Such territorial	506
boundaries must at all times include all the area of a single	507
county or all the area of the most populous county that is a part	508
of such transit authority. County population shall be measured by	509
the most recent census taken by the United States census bureau.	510

(X) "Providing a service" means providing or furnishing	511
anything described in division (B)(3) of this section for	512
consideration.	513

(Y)(1)(a) "Automatic data processing" means processing of	514
others' data, including keypunching or similar data entry services	515
together with verification thereof, or providing access to	516
computer equipment for the purpose of processing data.	517

(b) "Computer services" means providing services consisting	518
of specifying computer hardware configurations and evaluating	519
technical processing characteristics, computer programming, and	520
training of computer programmers and operators, provided in	521
conjunction with and to support the sale, lease, or operation of	522
taxable computer equipment or systems.	523

(c) "Electronic information services" means providing access	524
to computer equipment by means of telecommunications equipment for	525
the purpose of either of the following:	526

(i) Examining or acquiring data stored in or accessible to	527
the computer equipment;	528

(ii) Placing data into the computer equipment to be retrieved	529
by designated recipients with access to the computer equipment.	530

For transactions occurring on or after the effective date of	531
the amendment of this section by H.B. 157 of the 127th general	532
assembly, "electronic information services" does not include	533
electronic publishing as defined in division (LLL) of this	534
section.	535

(d) "Automatic data processing, computer services, or	536
electronic information services" shall not include personal or	537
professional services.	538

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	539
section, "personal and professional services" means all services	540
other than automatic data processing, computer services, or	541
electronic information services, including but not limited to:	542

(a) Accounting and legal services such as advice on tax	543
matters, asset management, budgetary matters, quality control,	544
information security, and auditing and any other situation where	545
the service provider receives data or information and studies,	546
alters, analyzes, interprets, or adjusts such material;	547

(b) Analyzing business policies and procedures;

548

(c) Identifying management information needs;

549

(d) Feasibility studies, including economic and technical	550
analysis of existing or potential computer hardware or software	551
needs and alternatives;	552

(e) Designing policies, procedures, and custom software for	553
collecting business information, and determining how data should	554
be summarized, sequenced, formatted, processed, controlled, and	555
reported so that it will be meaningful to management;	556

(f) Developing policies and procedures that document how	557
business events and transactions are to be authorized, executed,	558
and controlled;	559

(g) Testing of business procedures;

560

(h) Training personnel in business procedure applications;

561

(i) Providing credit information to users of such information	562
by a consumer reporting agency, as defined in the "Fair Credit	563
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or	564
as hereafter amended, including but not limited to gathering,	565
organizing, analyzing, recording, and furnishing such information	566
by any oral, written, graphic, or electronic medium;	567

(j) Providing debt collection services by any oral, written,	568
graphic, or electronic means.	569

The services listed in divisions (Y)(2)(a) to (j) of this	570
section are not automatic data processing or computer services.	571

(Z) "Highway transportation for hire" means the	572
transportation of personal property belonging to others for	573
consideration by any of the following:	574

(1) The holder of a permit or certificate issued by this	575
state or the United States authorizing the holder to engage in	576
transportation of personal property belonging to others for	577
consideration over or on highways, roadways, streets, or any	578
similar public thoroughfare;	579

(2) A person who engages in the transportation of personal	580
property belonging to others for consideration over or on	581
highways, roadways, streets, or any similar public thoroughfare	582
but who could not have engaged in such transportation on December	583
11, 1985, unless the person was the holder of a permit or	584
certificate of the types described in division (Z)(1) of this	585
section;	586

(3) A person who leases a motor vehicle to and operates it	587
for a person described by division (Z)(1) or (2) of this section.	588

(AA)(1) "Telecommunications service" means the electronic	589
transmission, conveyance, or routing of voice, data, audio, video,	590
or any other information or signals to a point, or between or	591
among points. "Telecommunications service" includes such	592
transmission, conveyance, or routing in which computer processing	593
applications are used to act on the form, code, or protocol of the	594
content for purposes of transmission, conveyance, or routing	595
without regard to whether the service is referred to as voice-over	596
internet protocol service or is classified by the federal	597
communications commission as enhanced or value-added.	598
"Telecommunications service" does not include any of the	599
following:	600

(a) Data processing and information services that allow data	601
to be generated, acquired, stored, processed, or retrieved and	602
delivered by an electronic transmission to a consumer where the	603
consumer's primary purpose for the underlying transaction is the	604
processed data or information;	605

(b) Installation or maintenance of wiring or equipment on a	606
customer's premises;	607

(c) Tangible personal property;

608

(d) Advertising, including directory advertising;

609

(e) Billing and collection services provided to third	610
parties;	611

(f) Internet access service;

612

(g) Radio and television audio and video programming	613
services, regardless of the medium, including the furnishing of	614
transmission, conveyance, and routing of such services by the	615
programming service provider. Radio and television audio and video	616
programming services include, but are not limited to, cable	617
service, as defined in 47 U.S.C. 522(6), and audio and video	618
programming services delivered by commercial mobile radio service	619
providers, as defined in 47 C.F.R. 20.3;	620

(h) Ancillary service;

621

(i) Digital products delivered electronically, including	622
software, music, video, reading materials, or ring tones.	623

(2) "Ancillary service" means a service that is associated	624
with or incidental to the provision of telecommunications service,	625
including conference bridging service, detailed telecommunications	626
billing service, directory assistance, vertical service, and voice	627
mail service. As used in this division:	628

(a) "Conference bridging service" means an ancillary service	629
that links two or more participants of an audio or video	630
conference call, including providing a telephone number.	631
"Conference bridging service" does not include telecommunications	632
services used to reach the conference bridge.	633

(b) "Detailed telecommunications billing service" means an	634
ancillary service of separately stating information pertaining to	635
individual calls on a customer's billing statement.	636

(c) "Directory assistance" means an ancillary service of	637
providing telephone number or address information.	638

(d) "Vertical service" means an ancillary service that is	639
offered in connection with one or more telecommunications	640
services, which offers advanced calling features that allow	641
customers to identify callers and manage multiple calls and call	642
connections, including conference bridging service.	643

(e) "Voice mail service" means an ancillary service that	644
enables the customer to store, send, or receive recorded messages.	645
"Voice mail service" does not include any vertical services that	646
the customer may be required to have in order to utilize the voice	647
mail service.	648

(3) "900 service" means an inbound toll telecommunications	649
service purchased by a subscriber that allows the subscriber's	650
customers to call in to the subscriber's prerecorded announcement	651
or live service, and which is typically marketed under the name	652
"900" service and any subsequent numbers designated by the federal	653
communications commission. "900 service" does not include the	654
charge for collection services provided by the seller of the	655
telecommunications service to the subscriber, or services or	656
products sold by the subscriber to the subscriber's customer.	657

(4) "Prepaid calling service" means the right to access	658
exclusively telecommunications services, which must be paid for in	659
advance and which enables the origination of calls using an access	660
number or authorization code, whether manually or electronically	661
dialed, and that is sold in predetermined units of dollars of	662
which the number declines with use in a known amount.	663

(5) "Prepaid wireless calling service" means a	664
telecommunications service that provides the right to utilize	665
mobile telecommunications service as well as other	666
non-telecommunications services, including the download of digital	667
products delivered electronically, and content and ancillary	668
services, that must be paid for in advance and that is sold in	669
predetermined units of dollars of which the number declines with	670
use in a known amount.	671

(6) "Value-added non-voice data service" means a	672
telecommunications service in which computer processing	673
applications are used to act on the form, content, code, or	674
protocol of the information or data primarily for a purpose other	675
than transmission, conveyance, or routing.	676

(7) "Coin-operated telephone service" means a	677
telecommunications service paid for by inserting money into a	678
telephone accepting direct deposits of money to operate.	679

(8) "Customer" has the same meaning as in section 5739.034 of	680
the Revised Code.	681

(BB) "Laundry and dry cleaning services" means removing soil	682
or dirt from towels, linens, articles of clothing, or other fabric	683
items that belong to others and supplying towels, linens, articles	684
of clothing, or other fabric items. "Laundry and dry cleaning	685
services" does not include the provision of self-service	686
facilities for use by consumers to remove soil or dirt from	687
towels, linens, articles of clothing, or other fabric items.	688

(CC) "Magazines distributed as controlled circulation	689
publications" means magazines containing at least twenty-four	690
pages, at least twenty-five per cent editorial content, issued at	691
regular intervals four or more times a year, and circulated	692
without charge to the recipient, provided that such magazines are	693
not owned or controlled by individuals or business concerns which	694
conduct such publications as an auxiliary to, and essentially for	695
the advancement of the main business or calling of, those who own	696
or control them.	697

(DD) "Landscaping and lawn care service" means the services	698
of planting, seeding, sodding, removing, cutting, trimming,	699
pruning, mulching, aerating, applying chemicals, watering,	700
fertilizing, and providing similar services to establish, promote,	701
or control the growth of trees, shrubs, flowers, grass, ground	702
cover, and other flora, or otherwise maintaining a lawn or	703
landscape grown or maintained by the owner for ornamentation or	704
other nonagricultural purpose. However, "landscaping and lawn care	705
service" does not include the providing of such services by a	706
person who has less than five thousand dollars in sales of such	707
services during the calendar year.	708

(EE) "Private investigation and security service" means the	709
performance of any activity for which the provider of such service	710
is required to be licensed pursuant to Chapter 4749. of the	711
Revised Code, or would be required to be so licensed in performing	712
such services in this state, and also includes the services of	713
conducting polygraph examinations and of monitoring or overseeing	714
the activities on or in, or the condition of, the consumer's home,	715
business, or other facility by means of electronic or similar	716
monitoring devices. "Private investigation and security service"	717
does not include special duty services provided by off-duty police	718
officers, deputy sheriffs, and other peace officers regularly	719
employed by the state or a political subdivision.	720

(FF) "Information services" means providing conversation,	721
giving consultation or advice, playing or making a voice or other	722
recording, making or keeping a record of the number of callers,	723
and any other service provided to a consumer by means of a nine	724
hundred telephone call, except when the nine hundred telephone	725
call is the means by which the consumer makes a contribution to a	726
recognized charity.	727

(GG) "Research and development" means designing, creating, or	728
formulating new or enhanced products, equipment, or manufacturing	729
processes, and also means conducting scientific or technological	730
inquiry and experimentation in the physical sciences with the goal	731
of increasing scientific knowledge which may reveal the bases for	732
new or enhanced products, equipment, or manufacturing processes.	733

(HH) "Qualified research and development equipment" means	734
capitalized tangible personal property, and leased personal	735
property that would be capitalized if purchased, used by a person	736
primarily to perform research and development. Tangible personal	737
property primarily used in testing, as defined in division (A)(4)	738
of section 5739.011 of the Revised Code, or used for recording or	739
storing test results, is not qualified research and development	740
equipment unless such property is primarily used by the consumer	741
in testing the product, equipment, or manufacturing process being	742
created, designed, or formulated by the consumer in the research	743
and development activity or in recording or storing such test	744
results.	745

(II) "Building maintenance and janitorial service" means	746
cleaning the interior or exterior of a building and any tangible	747
personal property located therein or thereon, including any	748
services incidental to such cleaning for which no separate charge	749
is made. However, "building maintenance and janitorial service"	750
does not include the providing of such service by a person who has	751
less than five thousand dollars in sales of such service during	752
the calendar year.	753

(JJ) "Employment service" means providing or supplying	754
personnel, on a temporary or long-term basis, to perform work or	755
labor under the supervision or control of another, when the	756
personnel so provided or supplied receive their wages, salary, or	757
other compensation from the provider or supplier of the employment	758
service or from a third party that provided or supplied the	759
personnel to the provider or supplier. "Employment service" does	760
not include:	761

(1) Acting as a contractor or subcontractor, where the	762
personnel performing the work are not under the direct control of	763
the purchaser.	764

(2) Medical and health care services.

765

(3) Supplying personnel to a purchaser pursuant to a contract	766
of at least one year between the service provider and the	767
purchaser that specifies that each employee covered under the	768
contract is assigned to the purchaser on a permanent basis.	769

(4) Transactions between members of an affiliated group, as	770
defined in division (B)(3)(e) of this section.	771

(5) Transactions where the personnel so provided or supplied	772
by a provider or supplier to a purchaser of an employment service	773
are then provided or supplied by that purchaser to a third party	774
as an employment service, except "employment service" does include	775
the transaction between that purchaser and the third party.	776

(KK) "Employment placement service" means locating or finding	777
employment for a person or finding or locating an employee to fill	778
an available position.	779

(LL) "Exterminating service" means eradicating or attempting	780
to eradicate vermin infestations from a building or structure, or	781
the area surrounding a building or structure, and includes	782
activities to inspect, detect, or prevent vermin infestation of a	783
building or structure.	784

(MM) "Physical fitness facility service" means all	785
transactions by which a membership is granted, maintained, or	786
renewed, including initiation fees, membership dues, renewal fees,	787
monthly minimum fees, and other similar fees and dues, by a	788
physical fitness facility such as an athletic club, health spa, or	789
gymnasium, which entitles the member to use the facility for	790
physical exercise.	791

(NN) "Recreation and sports club service" means all	792
transactions by which a membership is granted, maintained, or	793
renewed, including initiation fees, membership dues, renewal fees,	794
monthly minimum fees, and other similar fees and dues, by a	795
recreation and sports club, which entitles the member to use the	796
facilities of the organization. "Recreation and sports club" means	797
an organization that has ownership of, or controls or leases on a	798
continuing, long-term basis, the facilities used by its members	799
and includes an aviation club, gun or shooting club, yacht club,	800
card club, swimming club, tennis club, golf club, country club,	801
riding club, amateur sports club, or similar organization.	802

(OO) "Livestock" means farm animals commonly raised for food	803
or food production, and includes but is not limited to cattle,	804
sheep, goats, swine, and poultry. "Livestock" does not include	805
invertebrates, fish, amphibians, reptiles, horses, domestic pets,	806
animals for use in laboratories or for exhibition, or other	807
animals not commonly raised for food or food production.	808

(PP) "Livestock structure" means a building or structure used	809
exclusively for the housing, raising, feeding, or sheltering of	810
livestock, and includes feed storage or handling structures and	811
structures for livestock waste handling.	812

(QQ) "Horticulture" means the growing, cultivation, and	813
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	814
and nursery stock. As used in this division, "nursery stock" has	815
the same meaning as in section 927.51 of the Revised Code.	816

(RR) "Horticulture structure" means a building or structure	817
used exclusively for the commercial growing, raising, or	818
overwintering of horticultural products, and includes the area	819
used for stocking, storing, and packing horticultural products	820
when done in conjunction with the production of those products.	821

(SS) "Newspaper" means an unbound publication bearing a title	822
or name that is regularly published, at least as frequently as	823
biweekly, and distributed from a fixed place of business to the	824
public in a specific geographic area, and that contains a	825
substantial amount of news matter of international, national, or	826
local events of interest to the general public.	827

(TT) "Professional racing team" means a person that employs	828
at least twenty full-time employees for the purpose of conducting	829
a motor vehicle racing business for profit. The person must	830
conduct the business with the purpose of racing one or more motor	831
racing vehicles in at least ten competitive professional racing	832
events each year that comprise all or part of a motor racing	833
series sanctioned by one or more motor racing sanctioning	834
organizations. A "motor racing vehicle" means a vehicle for which	835
the chassis, engine, and parts are designed exclusively for motor	836
racing, and does not include a stock or production model vehicle	837
that may be modified for use in racing. For the purposes of this	838
division:	839

(1) A "competitive professional racing event" is a motor	840
vehicle racing event sanctioned by one or more motor racing	841
sanctioning organizations, at which aggregate cash prizes in	842
excess of eight hundred thousand dollars are awarded to the	843
competitors.	844

(2) "Full-time employee" means an individual who is employed	845
for consideration for thirty-five or more hours a week, or who	846
renders any other standard of service generally accepted by custom	847
or specified by contract as full-time employment.	848

(UU)(1) "Lease" or "rental" means any transfer of the	849
possession or control of tangible personal property for a fixed or	850
indefinite term, for consideration. "Lease" or "rental" includes	851
future options to purchase or extend, and agreements described in	852
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where	853
the amount of consideration may be increased or decreased by	854
reference to the amount realized upon the sale or disposition of	855
the property. "Lease" or "rental" does not include:	856

(a) A transfer of possession or control of tangible personal	857
property under a security agreement or a deferred payment plan	858
that requires the transfer of title upon completion of the	859
required payments;	860

(b) A transfer of possession or control of tangible personal	861
property under an agreement that requires the transfer of title	862
upon completion of required payments and payment of an option	863
price that does not exceed the greater of one hundred dollars or	864
one per cent of the total required payments;	865

(c) Providing tangible personal property along with an	866
operator for a fixed or indefinite period of time, if the operator	867
is necessary for the property to perform as designed. For purposes	868
of this division, the operator must do more than maintain,	869
inspect, or set-up the tangible personal property.	870

(2) "Lease" and "rental," as defined in division (UU) of this	871
section, shall not apply to leases or rentals that exist before	872
June 26, 2003.	873

(3) "Lease" and "rental" have the same meaning as in division	874
(UU)(1) of this section regardless of whether a transaction is	875
characterized as a lease or rental under generally accepted	876
accounting principles, the Internal Revenue Code, Title XIII of	877
the Revised Code, or other federal, state, or local laws.	878

(VV) "Mobile telecommunications service" has the same meaning	879
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.	880
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and,	881
on and after August 1, 2003, includes related fees and ancillary	882
services, including universal service fees, detailed billing	883
service, directory assistance, service initiation, voice mail	884
service, and vertical services, such as caller ID and three-way	885
calling.	886

(WW) "Certified service provider" has the same meaning as in	887
section 5740.01 of the Revised Code.	888

(XX) "Satellite broadcasting service" means the distribution	889
or broadcasting of programming or services by satellite directly	890
to the subscriber's receiving equipment without the use of ground	891
receiving or distribution equipment, except the subscriber's	892
receiving equipment or equipment used in the uplink process to the	893
satellite, and includes all service and rental charges, premium	894
channels or other special services, installation and repair	895
service charges, and any other charges having any connection with	896
the provision of the satellite broadcasting service.	897

(YY) "Tangible personal property" means personal property	898
that can be seen, weighed, measured, felt, or touched, or that is	899
in any other manner perceptible to the senses. For purposes of	900
this chapter and Chapter 5741. of the Revised Code, "tangible	901
personal property" includes motor vehicles, electricity, water,	902
gas, steam, and prewritten computer software.	903

(ZZ) "Direct mail" means printed material delivered or	904
distributed by United States mail or other delivery service to a	905
mass audience or to addressees on a mailing list provided by the	906
consumer or at the direction of the consumer when the cost of the	907
items are not billed directly to the recipients. "Direct mail"	908
includes tangible personal property supplied directly or	909
indirectly by the consumer to the direct mail vendor for inclusion	910
in the package containing the printed material. "Direct mail" does	911
not include multiple items of printed material delivered to a	912
single address.	913

(AAA) "Computer" means an electronic device that accepts	914
information in digital or similar form and manipulates it for a	915
result based on a sequence of instructions.	916

(BBB) "Computer software" means a set of coded instructions	917
designed to cause a computer or automatic data processing	918
equipment to perform a task.	919

(CCC) "Delivered electronically" means delivery of computer	920
software from the seller to the purchaser by means other than	921
tangible storage media.	922

(DDD) "Prewritten computer software" means computer software,	923
including prewritten upgrades, that is not designed and developed	924
by the author or other creator to the specifications of a specific	925
purchaser. The combining of two or more prewritten computer	926
software programs or prewritten portions thereof does not cause	927
the combination to be other than prewritten computer software.	928
"Prewritten computer software" includes software designed and	929
developed by the author or other creator to the specifications of	930
a specific purchaser when it is sold to a person other than the	931
purchaser. If a person modifies or enhances computer software of	932
which the person is not the author or creator, the person shall be	933
deemed to be the author or creator only of such person's	934
modifications or enhancements. Prewritten computer software or a	935
prewritten portion thereof that is modified or enhanced to any	936
degree, where such modification or enhancement is designed and	937
developed to the specifications of a specific purchaser, remains	938
prewritten computer software; provided, however, that where there	939
is a reasonable, separately stated charge or an invoice or other	940
statement of the price given to the purchaser for the modification	941
or enhancement, the modification or enhancement shall not	942
constitute prewritten computer software.	943

(EEE)(1) "Food" means substances, whether in liquid,	944
concentrated, solid, frozen, dried, or dehydrated form, that are	945
sold for ingestion or chewing by humans and are consumed for their	946
taste or nutritional value. "Food" does not include alcoholic	947
beverages, dietary supplements, soft drinks, or tobacco.	948

(2) As used in division (EEE)(1) of this section:

949

(a) "Alcoholic beverages" means beverages that are suitable	950
for human consumption and contain one-half of one per cent or more	951
of alcohol by volume.	952

(b) "Dietary supplements" means any product, other than	953
tobacco, that is intended to supplement the diet and that is	954
intended for ingestion in tablet, capsule, powder, softgel,	955
gelcap, or liquid form, or, if not intended for ingestion in such	956
a form, is not represented as conventional food for use as a sole	957
item of a meal or of the diet; that is required to be labeled as a	958
dietary supplement, identifiable by the "supplement facts" box	959
found on the label, as required by 21 C.F.R. 101.36; and that	960
contains one or more of the following dietary ingredients:	961

(i) A vitamin;

962

(ii) A mineral;

963

(iii) An herb or other botanical;

964

(iv) An amino acid;

965

(v) A dietary substance for use by humans to supplement the	966
diet by increasing the total dietary intake;	967

(vi) A concentrate, metabolite, constituent, extract, or	968
combination of any ingredient described in divisions	969
(EEE)(2)(b)(i) to (v) of this section.	970

(c) "Soft drinks" means nonalcoholic beverages that contain	971
natural or artificial sweeteners. "Soft drinks" does not include	972
beverages that contain milk or milk products, soy, rice, or	973
similar milk substitutes, or that contains greater than fifty per	974
cent vegetable or fruit juice by volume.	975

(d) "Tobacco" means cigarettes, cigars, chewing or pipe	976
tobacco, or any other item that contains tobacco.	977

(FFF) "Drug" means a compound, substance, or preparation, and	978
any component of a compound, substance, or preparation, other than	979
food, dietary supplements, or alcoholic beverages that is	980
recognized in the official United States pharmacopoeia, official	981
homeopathic pharmacopoeia of the United States, or official	982
national formulary, and supplements to them; is intended for use	983
in the diagnosis, cure, mitigation, treatment, or prevention of	984
disease; or is intended to affect the structure or any function of	985
the body.	986

(GGG) "Prescription" means an order, formula, or recipe	987
issued in any form of oral, written, electronic, or other means of	988
transmission by a duly licensed practitioner authorized by the	989
laws of this state to issue a prescription.	990

(HHH) "Durable medical equipment" means equipment, including	991
repair and replacement parts for such equipment, that can	992
withstand repeated use, is primarily and customarily used to serve	993
a medical purpose, generally is not useful to a person in the	994
absence of illness or injury, and is not worn in or on the body.	995
"Durable medical equipment" does not include mobility enhancing	996
equipment.	997

(III) "Mobility enhancing equipment" means equipment,	998
including repair and replacement parts for such equipment, that is	999
primarily and customarily used to provide or increase the ability	1000
to move from one place to another and is appropriate for use	1001
either in a home or a motor vehicle, that is not generally used by	1002
persons with normal mobility, and that does not include any motor	1003
vehicle or equipment on a motor vehicle normally provided by a	1004
motor vehicle manufacturer. "Mobility enhancing equipment" does	1005
not include durable medical equipment.	1006

(JJJ) "Prosthetic device" means a replacement, corrective, or	1007
supportive device, including repair and replacement parts for the	1008
device, worn on or in the human body to artificially replace a	1009
missing portion of the body, prevent or correct physical deformity	1010
or malfunction, or support a weak or deformed portion of the body.	1011
As used in this division, "prosthetic device" does not include	1012
corrective eyeglasses, contact lenses, or dental prosthesis.	1013

(KKK)(1) "Fractional aircraft ownership program" means a	1014
program in which persons within an affiliated group sell and	1015
manage fractional ownership program aircraft, provided that at	1016
least one hundred airworthy aircraft are operated in the program	1017
and the program meets all of the following criteria:	1018

(a) Management services are provided by at least one program	1019
manager within an affiliated group on behalf of the fractional	1020
owners.	1021

(b) Each program aircraft is owned or possessed by at least	1022
one fractional owner.	1023

(c) Each fractional owner owns or possesses at least a	1024
one-sixteenth interest in at least one fixed-wing program	1025
aircraft.	1026

(d) A dry-lease aircraft interchange arrangement is in effect	1027
among all of the fractional owners.	1028

(e) Multi-year program agreements are in effect regarding the	1029
fractional ownership, management services, and dry-lease aircraft	1030
interchange arrangement aspects of the program.	1031

(2) As used in division (KKK)(1) of this section:

1032

(a) "Affiliated group" has the same meaning as in division	1033
(B)(3)(e) of this section.	1034

(b) "Fractional owner" means a person that owns or possesses	1035
at least a one-sixteenth interest in a program aircraft and has	1036
entered into the agreements described in division (KKK)(1)(e) of	1037
this section.	1038

(c) "Fractional ownership program aircraft" or "program	1039
aircraft" means a turbojet aircraft that is owned or possessed by	1040
a fractional owner and that has been included in a dry-lease	1041
aircraft interchange arrangement and agreement under divisions	1042
(KKK)(1)(d) and (e) of this section, or an aircraft a program	1043
manager owns or possesses primarily for use in a fractional	1044
aircraft ownership program.	1045

(d) "Management services" means administrative and aviation	1046
support services furnished under a fractional aircraft ownership	1047
program in accordance with a management services agreement under	1048
division (KKK)(1)(e) of this section, and offered by the program	1049
manager to the fractional owners, including, at a minimum, the	1050
establishment and implementation of safety guidelines; the	1051
coordination of the scheduling of the program aircraft and crews;	1052
program aircraft maintenance; program aircraft insurance; crew	1053
training for crews employed, furnished, or contracted by the	1054
program manager or the fractional owner; the satisfaction of	1055
record-keeping requirements; and the development and use of an	1056
operations manual and a maintenance manual for the fractional	1057
aircraft ownership program.	1058

(e) "Program manager" means the person that offers management	1059
services to fractional owners pursuant to a management services	1060
agreement under division (KKK)(1)(e) of this section.	1061

(LLL) "Electronic publishing" means providing access to one	1062
or more of the following primarily for business customers,	1063
including the federal government or a state government or a	1064
political subdivision thereof, to conduct research: news;	1065
business, financial, legal, consumer, or credit materials;	1066
editorials, columns, reader commentary, or features; photos or	1067
images; archival or research material; legal notices, identity	1068
verification, or public records; scientific, educational,	1069
instructional, technical, professional, trade, or other literary	1070
materials; or other similar information which has been gathered	1071
and made available by the provider to the consumer in an	1072
electronic format. Providing electronic publishing includes the	1073
functions necessary for the acquisition, formatting, editing,	1074
storage, and dissemination of data or information that is the	1075
subject of a sale.	1076

Sec. 5739.02.  For the purpose of providing revenue with	1077
which to meet the needs of the state, for the use of the general	1078
revenue fund of the state, for the purpose of securing a thorough	1079
and efficient system of common schools throughout the state, for	1080
the purpose of affording revenues, in addition to those from	1081
general property taxes, permitted under constitutional	1082
limitations, and from other sources, for the support of local	1083
governmental functions, and for the purpose of reimbursing the	1084
state for the expense of administering this chapter, an excise tax	1085
is hereby levied on each retail sale made in this state.	1086

(A)(1) The tax shall be collected as provided in section	1087
5739.025 of the Revised Code, provided that on and after July 1,	1088
2003, and on or before June 30, 2005, the rate of tax shall be six	1089
per cent. On and after July 1, 2005, the rate of the tax shall be	1090
five and one-half per cent. The tax applies and is collectible	1091
when the sale is made, regardless of the time when the price is	1092
paid or delivered.	1093

(2) In the case of the lease or rental, with a fixed term of	1094
more than thirty days or an indefinite term with a minimum period	1095
of more than thirty days, of any motor vehicles designed by the	1096
manufacturer to carry a load of not more than one ton, watercraft,	1097
outboard motor, or aircraft, or of any tangible personal property,	1098
other than motor vehicles designed by the manufacturer to carry a	1099
load of more than one ton, to be used by the lessee or renter	1100
primarily for business purposes, the tax shall be collected by the	1101
vendor at the time the lease or rental is consummated and shall be	1102
calculated by the vendor on the basis of the total amount to be	1103
paid by the lessee or renter under the lease agreement. If the	1104
total amount of the consideration for the lease or rental includes	1105
amounts that are not calculated at the time the lease or rental is	1106
executed, the tax shall be calculated and collected by the vendor	1107
at the time such amounts are billed to the lessee or renter. In	1108
the case of an open-end lease or rental, the tax shall be	1109
calculated by the vendor on the basis of the total amount to be	1110
paid during the initial fixed term of the lease or rental, and for	1111
each subsequent renewal period as it comes due. As used in this	1112
division, "motor vehicle" has the same meaning as in section	1113
4501.01 of the Revised Code, and "watercraft" includes an outdrive	1114
unit attached to the watercraft.	1115

A lease with a renewal clause and a termination penalty or	1116
similar provision that applies if the renewal clause is not	1117
exercised is presumed to be a sham transaction. In such a case,	1118
the tax shall be calculated and paid on the basis of the entire	1119
length of the lease period, including any renewal periods, until	1120
the termination penalty or similar provision no longer applies.	1121
The taxpayer shall bear the burden, by a preponderance of the	1122
evidence, that the transaction or series of transactions is not a	1123
sham transaction.	1124

(3) Except as provided in division (A)(2) of this section, in	1125
the case of a sale, the price of which consists in whole or in	1126
part of the lease or rental of tangible personal property, the tax	1127
shall be measured by the installments of that lease or rental.	1128

(4) In the case of a sale of a physical fitness facility	1129
service or recreation and sports club service, the price of which	1130
consists in whole or in part of a membership for the receipt of	1131
the benefit of the service, the tax applicable to the sale shall	1132
be measured by the installments thereof.	1133

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

1134

(1) Sales to the state or any of its political subdivisions,	1135
or to any other state or its political subdivisions if the laws of	1136
that state exempt from taxation sales made to this state and its	1137
political subdivisions;	1138

(2) Sales of food for human consumption off the premises	1139
where sold;	1140

(3) Sales of food sold to students only in a cafeteria,	1141
dormitory, fraternity, or sorority maintained in a private,	1142
public, or parochial school, college, or university;	1143

(4) Sales of newspapers and of magazine subscriptions and	1144
sales or transfers of magazines distributed as controlled	1145
circulation publications;	1146

(5) The furnishing, preparing, or serving of meals without	1147
charge by an employer to an employee provided the employer records	1148
the meals as part compensation for services performed or work	1149
done;	1150

(6) Sales of motor fuel upon receipt, use, distribution, or	1151
sale of which in this state a tax is imposed by the law of this	1152
state, but this exemption shall not apply to the sale of motor	1153
fuel on which a refund of the tax is allowable under division (A)	1154
of section 5735.14 of the Revised Code; and the tax commissioner	1155
may deduct the amount of tax levied by this section applicable to	1156
the price of motor fuel when granting a refund of motor fuel tax	1157
pursuant to division (A) of section 5735.14 of the Revised Code	1158
and shall cause the amount deducted to be paid into the general	1159
revenue fund of this state;	1160

(7) Sales of natural gas by a natural gas company, of water	1161
by a water-works company, or of steam by a heating company, if in	1162
each case the thing sold is delivered to consumers through pipes	1163
or conduits, and all sales of communications services by a	1164
telegraph company, all terms as defined in section 5727.01 of the	1165
Revised Code, and sales of electricity delivered through wires;	1166

(8) Casual sales by a person, or auctioneer employed directly	1167
by the person to conduct such sales, except as to such sales of	1168
motor vehicles, watercraft or outboard motors required to be	1169
titled under section 1548.06 of the Revised Code, watercraft	1170
documented with the United States coast guard, snowmobiles, and	1171
all-purpose vehicles as defined in section 4519.01 of the Revised	1172
Code;	1173

(9)(a) Sales of services or tangible personal property, other	1174
than motor vehicles, mobile homes, and manufactured homes, by	1175
churches, organizations exempt from taxation under section	1176
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	1177
organizations operated exclusively for charitable purposes as	1178
defined in division (B)(12) of this section, provided that the	1179
number of days on which such tangible personal property or	1180
services, other than items never subject to the tax, are sold does	1181
not exceed six in any calendar year, except as otherwise provided	1182
in division (B)(9)(b) of this section. If the number of days on	1183
which such sales are made exceeds six in any calendar year, the	1184
church or organization shall be considered to be engaged in	1185
business and all subsequent sales by it shall be subject to the	1186
tax. In counting the number of days, all sales by groups within a	1187
church or within an organization shall be considered to be sales	1188
of that church or organization.	1189

(b) The limitation on the number of days on which tax-exempt	1190
sales may be made by a church or organization under division	1191
(B)(9)(a) of this section does not apply to sales made by student	1192
clubs and other groups of students of a primary or secondary	1193
school, or a parent-teacher association, booster group, or similar	1194
organization that raises money to support or fund curricular or	1195
extracurricular activities of a primary or secondary school.	1196

(c) Divisions (B)(9)(a) and (b) of this section do not apply	1197
to sales by a noncommercial educational radio or television	1198
broadcasting station.	1199

(10) Sales not within the taxing power of this state under	1200
the Constitution of the United States;	1201

(11) Except for transactions that are sales under division	1202
(B)(3)(r) of section 5739.01 of the Revised Code, the	1203
transportation of persons or property, unless the transportation	1204
is by a private investigation and security service;	1205

(12) Sales of tangible personal property or services to	1206
churches, to organizations exempt from taxation under section	1207
501(c)(3) of the Internal Revenue Code of 1986, and to any other	1208
nonprofit organizations operated exclusively for charitable	1209
purposes in this state, no part of the net income of which inures	1210
to the benefit of any private shareholder or individual, and no	1211
substantial part of the activities of which consists of carrying	1212
on propaganda or otherwise attempting to influence legislation;	1213
sales to offices administering one or more homes for the aged or	1214
one or more hospital facilities exempt under section 140.08 of the	1215
Revised Code; and sales to organizations described in division (D)	1216
of section 5709.12 of the Revised Code.	1217

"Charitable purposes" means the relief of poverty; the	1218
improvement of health through the alleviation of illness, disease,	1219
or injury; the operation of an organization exclusively for the	1220
provision of professional, laundry, printing, and purchasing	1221
services to hospitals or charitable institutions; the operation of	1222
a home for the aged, as defined in section 5701.13 of the Revised	1223
Code; the operation of a radio or television broadcasting station	1224
that is licensed by the federal communications commission as a	1225
noncommercial educational radio or television station; the	1226
operation of a nonprofit animal adoption service or a county	1227
humane society; the promotion of education by an institution of	1228
learning that maintains a faculty of qualified instructors,	1229
teaches regular continuous courses of study, and confers a	1230
recognized diploma upon completion of a specific curriculum; the	1231
operation of a parent-teacher association, booster group, or	1232
similar organization primarily engaged in the promotion and	1233
support of the curricular or extracurricular activities of a	1234
primary or secondary school; the operation of a community or area	1235
center in which presentations in music, dramatics, the arts, and	1236
related fields are made in order to foster public interest and	1237
education therein; the production of performances in music,	1238
dramatics, and the arts; or the promotion of education by an	1239
organization engaged in carrying on research in, or the	1240
dissemination of, scientific and technological knowledge and	1241
information primarily for the public.	1242

Nothing in this division shall be deemed to exempt sales to	1243
any organization for use in the operation or carrying on of a	1244
trade or business, or sales to a home for the aged for use in the	1245
operation of independent living facilities as defined in division	1246
(A) of section 5709.12 of the Revised Code.	1247

(13) Building and construction materials and services sold to	1248
construction contractors for incorporation into a structure or	1249
improvement to real property under a construction contract with	1250
this state or a political subdivision of this state, or with the	1251
United States government or any of its agencies; building and	1252
construction materials and services sold to construction	1253
contractors for incorporation into a structure or improvement to	1254
real property that are accepted for ownership by this state or any	1255
of its political subdivisions, or by the United States government	1256
or any of its agencies at the time of completion of the structures	1257
or improvements; building and construction materials sold to	1258
construction contractors for incorporation into a horticulture	1259
structure or livestock structure for a person engaged in the	1260
business of horticulture or producing livestock; building	1261
materials and services sold to a construction contractor for	1262
incorporation into a house of public worship or religious	1263
education, or a building used exclusively for charitable purposes	1264
under a construction contract with an organization whose purpose	1265
is as described in division (B)(12) of this section; building	1266
materials and services sold to a construction contractor for	1267
incorporation into a building under a construction contract with	1268
an organization exempt from taxation under section 501(c)(3) of	1269
the Internal Revenue Code of 1986 when the building is to be used	1270
exclusively for the organization's exempt purposes; building and	1271
construction materials sold for incorporation into the original	1272
construction of a sports facility under section 307.696 of the	1273
Revised Code; and building and construction materials and services	1274
sold to a construction contractor for incorporation into real	1275
property outside this state if such materials and services, when	1276
sold to a construction contractor in the state in which the real	1277
property is located for incorporation into real property in that	1278
state, would be exempt from a tax on sales levied by that state;	1279

(14) Sales of ships or vessels or rail rolling stock used or	1280
to be used principally in interstate or foreign commerce, and	1281
repairs, alterations, fuel, and lubricants for such ships or	1282
vessels or rail rolling stock;	1283

(15) Sales to persons primarily engaged in any of the	1284
activities mentioned in division (B)(42)(a) or (g) of this	1285
section, to persons engaged in making retail sales, or to persons	1286
who purchase for sale from a manufacturer tangible personal	1287
property that was produced by the manufacturer in accordance with	1288
specific designs provided by the purchaser, of packages, including	1289
material, labels, and parts for packages, and of machinery,	1290
equipment, and material for use primarily in packaging tangible	1291
personal property produced for sale, including any machinery,	1292
equipment, and supplies used to make labels or packages, to	1293
prepare packages or products for labeling, or to label packages or	1294
products, by or on the order of the person doing the packaging, or	1295
sold at retail. "Packages" includes bags, baskets, cartons,	1296
crates, boxes, cans, bottles, bindings, wrappings, and other	1297
similar devices and containers, but does not include motor	1298
vehicles or bulk tanks, trailers, or similar devices attached to	1299
motor vehicles. "Packaging" means placing in a package. Division	1300
(B)(15) of this section does not apply to persons engaged in	1301
highway transportation for hire.	1302

(16) Sales of food to persons using food stamp benefits to	1303
purchase the food. As used in this division, "food" has the same	1304
meaning as in the "Food Stamp Act of 1977," 91 Stat. 958, 7 U.S.C.	1305
2012, as amended, and federal regulations adopted pursuant to that	1306
act.	1307

(17) Sales to persons engaged in farming, agriculture,	1308
horticulture, or floriculture, of tangible personal property for	1309
use or consumption directly in the production by farming,	1310
agriculture, horticulture, or floriculture of other tangible	1311
personal property for use or consumption directly in the	1312
production of tangible personal property for sale by farming,	1313
agriculture, horticulture, or floriculture; or material and parts	1314
for incorporation into any such tangible personal property for use	1315
or consumption in production; and of tangible personal property	1316
for such use or consumption in the conditioning or holding of	1317
products produced by and for such use, consumption, or sale by	1318
persons engaged in farming, agriculture, horticulture, or	1319
floriculture, except where such property is incorporated into real	1320
property;	1321

(18) Sales of drugs for a human being that may be dispensed	1322
only pursuant to a prescription; insulin as recognized in the	1323
official United States pharmacopoeia; urine and blood testing	1324
materials when used by diabetics or persons with hypoglycemia to	1325
test for glucose or acetone; hypodermic syringes and needles when	1326
used by diabetics for insulin injections; epoetin alfa when	1327
purchased for use in the treatment of persons with medical	1328
disease; hospital beds when purchased by hospitals, nursing homes,	1329
or other medical facilities; and medical oxygen and medical	1330
oxygen-dispensing equipment when purchased by hospitals, nursing	1331
homes, or other medical facilities;	1332

(19) Sales of prosthetic devices, durable medical equipment	1333
for home use, or mobility enhancing equipment, when made pursuant	1334
to a prescription and when such devices or equipment are for use	1335
by a human being.	1336

(20) Sales of emergency and fire protection vehicles and	1337
equipment to nonprofit organizations for use solely in providing	1338
fire protection and emergency services, including trauma care and	1339
emergency medical services, for political subdivisions of the	1340
state;	1341

(21) Sales of tangible personal property manufactured in this	1342
state, if sold by the manufacturer in this state to a retailer for	1343
use in the retail business of the retailer outside of this state	1344
and if possession is taken from the manufacturer by the purchaser	1345
within this state for the sole purpose of immediately removing the	1346
same from this state in a vehicle owned by the purchaser;	1347

(22) Sales of services provided by the state or any of its	1348
political subdivisions, agencies, instrumentalities, institutions,	1349
or authorities, or by governmental entities of the state or any of	1350
its political subdivisions, agencies, instrumentalities,	1351
institutions, or authorities;	1352

(23) Sales of motor vehicles to nonresidents of this state	1353
under the circumstances described in division (B) of section	1354
5739.029 of the Revised Code;	1355

(24) Sales to persons engaged in the preparation of eggs for	1356
sale of tangible personal property used or consumed directly in	1357
such preparation, including such tangible personal property used	1358
for cleaning, sanitizing, preserving, grading, sorting, and	1359
classifying by size; packages, including material and parts for	1360
packages, and machinery, equipment, and material for use in	1361
packaging eggs for sale; and handling and transportation equipment	1362
and parts therefor, except motor vehicles licensed to operate on	1363
public highways, used in intraplant or interplant transfers or	1364
shipment of eggs in the process of preparation for sale, when the	1365
plant or plants within or between which such transfers or	1366
shipments occur are operated by the same person. "Packages"	1367
includes containers, cases, baskets, flats, fillers, filler flats,	1368
cartons, closure materials, labels, and labeling materials, and	1369
"packaging" means placing therein.	1370

(25)(a) Sales of water to a consumer for residential use,	1371
except the sale of bottled water, distilled water, mineral water,	1372
carbonated water, or ice;	1373

(b) Sales of water by a nonprofit corporation engaged	1374
exclusively in the treatment, distribution, and sale of water to	1375
consumers, if such water is delivered to consumers through pipes	1376
or tubing.	1377

(26) Fees charged for inspection or reinspection of motor	1378
vehicles under section 3704.14 of the Revised Code;	1379

(27) Sales to persons licensed to conduct a food service	1380
operation pursuant to section 3717.43 of the Revised Code, of	1381
tangible personal property primarily used directly for the	1382
following:	1383

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

1384

(b) To preserve food that has been or will be prepared for	1385
human consumption for sale by the food service operator, not	1386
including tangible personal property used to display food for	1387
selection by the consumer;	1388

(c) To clean tangible personal property used to prepare or	1389
serve food for human consumption for sale.	1390

(28) Sales of animals by nonprofit animal adoption services	1391
or county humane societies;	1392

(29) Sales of services to a corporation described in division	1393
(A) of section 5709.72 of the Revised Code, and sales of tangible	1394
personal property that qualifies for exemption from taxation under	1395
section 5709.72 of the Revised Code;	1396

(30) Sales and installation of agricultural land tile, as	1397
defined in division (B)(5)(a) of section 5739.01 of the Revised	1398
Code;	1399

(31) Sales and erection or installation of portable grain	1400
bins, as defined in division (B)(5)(b) of section 5739.01 of the	1401
Revised Code;	1402

(32) The sale, lease, repair, and maintenance of, parts for,	1403
or items attached to or incorporated in, motor vehicles that are	1404
primarily used for transporting tangible personal property	1405
belonging to others by a person engaged in highway transportation	1406
for hire, except for packages and packaging used for the	1407
transportation of tangible personal property;	1408

(33) Sales to the state headquarters of any veterans'	1409
organization in this state that is either incorporated and issued	1410
a charter by the congress of the United States or is recognized by	1411
the United States veterans administration, for use by the	1412
headquarters;	1413

(34) Sales to a telecommunications service vendor, mobile	1414
telecommunications service vendor, or satellite broadcasting	1415
service vendor of tangible personal property and services used	1416
directly and primarily in transmitting, receiving, switching, or	1417
recording any interactive, one- or two-way electromagnetic	1418
communications, including voice, image, data, and information,	1419
through the use of any medium, including, but not limited to,	1420
poles, wires, cables, switching equipment, computers, and record	1421
storage devices and media, and component parts for the tangible	1422
personal property. The exemption provided in this division shall	1423
be in lieu of all other exemptions under division (B)(42)(a) of	1424
this section to which the vendor may otherwise be entitled, based	1425
upon the use of the thing purchased in providing the	1426
telecommunications, mobile telecommunications, or satellite	1427
broadcasting service.	1428

(35)(a) Sales where the purpose of the consumer is to use or	1429
consume the things transferred in making retail sales and	1430
consisting of newspaper inserts, catalogues, coupons, flyers, gift	1431
certificates, or other advertising material that prices and	1432
describes tangible personal property offered for retail sale.	1433

(b) Sales to direct marketing vendors of preliminary	1434
materials such as photographs, artwork, and typesetting that will	1435
be used in printing advertising material; of printed matter that	1436
offers free merchandise or chances to win sweepstake prizes and	1437
that is mailed to potential customers with advertising material	1438
described in division (B)(35)(a) of this section; and of equipment	1439
such as telephones, computers, facsimile machines, and similar	1440
tangible personal property primarily used to accept orders for	1441
direct marketing retail sales.	1442

(c) Sales of automatic food vending machines that preserve	1443
food with a shelf life of forty-five days or less by refrigeration	1444
and dispense it to the consumer.	1445

For purposes of division (B)(35) of this section, "direct	1446
marketing" means the method of selling where consumers order	1447
tangible personal property by United States mail, delivery	1448
service, or telecommunication and the vendor delivers or ships the	1449
tangible personal property sold to the consumer from a warehouse,	1450
catalogue distribution center, or similar fulfillment facility by	1451
means of the United States mail, delivery service, or common	1452
carrier.	1453

(36) Sales to a person engaged in the business of	1454
horticulture or producing livestock of materials to be	1455
incorporated into a horticulture structure or livestock structure;	1456

(37) Sales of personal computers, computer monitors, computer	1457
keyboards, modems, and other peripheral computer equipment to an	1458
individual who is licensed or certified to teach in an elementary	1459
or a secondary school in this state for use by that individual in	1460
preparation for teaching elementary or secondary school students;	1461

(38) Sales to a professional racing team of any of the	1462
following:	1463

(a) Motor racing vehicles;

1464

(b) Repair services for motor racing vehicles;

1465

(c) Items of property that are attached to or incorporated in	1466
motor racing vehicles, including engines, chassis, and all other	1467
components of the vehicles, and all spare, replacement, and	1468
rebuilt parts or components of the vehicles; except not including	1469
tires, consumable fluids, paint, and accessories consisting of	1470
instrumentation sensors and related items added to the vehicle to	1471
collect and transmit data by means of telemetry and other forms of	1472
communication.	1473

(39) Sales of used manufactured homes and used mobile homes,	1474
as defined in section 5739.0210 of the Revised Code, made on or	1475
after January 1, 2000;	1476

(40) Sales of tangible personal property and services to a	1477
provider of electricity used or consumed directly and primarily in	1478
generating, transmitting, or distributing electricity for use by	1479
others, including property that is or is to be incorporated into	1480
and will become a part of the consumer's production, transmission,	1481
or distribution system and that retains its classification as	1482
tangible personal property after incorporation; fuel or power used	1483
in the production, transmission, or distribution of electricity;	1484
and tangible personal property and services used in the repair and	1485
maintenance of the production, transmission, or distribution	1486
system, including only those motor vehicles as are specially	1487
designed and equipped for such use. The exemption provided in this	1488
division shall be in lieu of all other exemptions in division	1489
(B)(42)(a) of this section to which a provider of electricity may	1490
otherwise be entitled based on the use of the tangible personal	1491
property or service purchased in generating, transmitting, or	1492
distributing electricity.	1493

(41) Sales to a person providing services under division	1494
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	1495
personal property and services used directly and primarily in	1496
providing taxable services under that section.	1497

(42) Sales where the purpose of the purchaser is to do any of	1498
the following:	1499

(a) To incorporate the thing transferred as a material or a	1500
part into tangible personal property to be produced for sale by	1501
manufacturing, assembling, processing, or refining; or to use or	1502
consume the thing transferred directly in producing tangible	1503
personal property for sale by mining, including, without	1504
limitation, the extraction from the earth of all substances that	1505
are classed geologically as minerals, production of crude oil and	1506
natural gas, farming, agriculture, horticulture, or floriculture,	1507
or directly in the rendition of a public utility service, except	1508
that the sales tax levied by this section shall be collected upon	1509
all meals, drinks, and food for human consumption sold when	1510
transporting persons. Persons engaged in rendering farming,	1511
agricultural, horticultural, or floricultural services, and	1512
services in the exploration for, and production of, crude oil and	1513
natural gas, for others are deemed engaged directly in farming,	1514
agriculture, horticulture, and floriculture, or exploration for,	1515
and production of, crude oil and natural gas. This paragraph does	1516
not exempt from "retail sale" or "sales at retail" the sale of	1517
tangible personal property that is to be incorporated into a	1518
structure or improvement to real property.	1519

(b) To hold the thing transferred as security for the	1520
performance of an obligation of the vendor;	1521

(c) To resell, hold, use, or consume the thing transferred as	1522
evidence of a contract of insurance;	1523

(d) To use or consume the thing directly in commercial	1524
fishing;	1525

(e) To incorporate the thing transferred as a material or a	1526
part into, or to use or consume the thing transferred directly in	1527
the production of, magazines distributed as controlled circulation	1528
publications;	1529

(f) To use or consume the thing transferred in the production	1530
and preparation in suitable condition for market and sale of	1531
printed, imprinted, overprinted, lithographic, multilithic,	1532
blueprinted, photostatic, or other productions or reproductions of	1533
written or graphic matter;	1534

(g) To use the thing transferred, as described in section	1535
5739.011 of the Revised Code, primarily in a manufacturing	1536
operation to produce tangible personal property for sale;	1537

(h) To use the benefit of a warranty, maintenance or service	1538
contract, or similar agreement, as described in division (B)(7) of	1539
section 5739.01 of the Revised Code, to repair or maintain	1540
tangible personal property, if all of the property that is the	1541
subject of the warranty, contract, or agreement would not be	1542
subject to the tax imposed by this section;	1543

(i) To use the thing transferred as qualified research and	1544
development equipment;	1545

(j) To use or consume the thing transferred primarily in	1546
storing, transporting, mailing, or otherwise handling purchased	1547
sales inventory in a warehouse, distribution center, or similar	1548
facility when the inventory is primarily distributed outside this	1549
state to retail stores of the person who owns or controls the	1550
warehouse, distribution center, or similar facility, to retail	1551
stores of an affiliated group of which that person is a member, or	1552
by means of direct marketing. This division does not apply to	1553
motor vehicles registered for operation on the public highways. As	1554
used in this division, "affiliated group" has the same meaning as	1555
in division (B)(3)(e) of section 5739.01 of the Revised Code and	1556
"direct marketing" has the same meaning as in division (B)(35) of	1557
this section.	1558

(k) To use or consume the thing transferred to fulfill a	1559
contractual obligation incurred by a warrantor pursuant to a	1560
warranty provided as a part of the price of the tangible personal	1561
property sold or by a vendor of a warranty, maintenance or service	1562
contract, or similar agreement the provision of which is defined	1563
as a sale under division (B)(7) of section 5739.01 of the Revised	1564
Code;	1565

(l) To use or consume the thing transferred in the production	1566
of a newspaper for distribution to the public;	1567

(m) To use tangible personal property to perform a service	1568
listed in division (B)(3) of section 5739.01 of the Revised Code,	1569
if the property is or is to be permanently transferred to the	1570
consumer of the service as an integral part of the performance of	1571
the service.	1572

(n) To use or consume the thing transferred in acquiring,	1573
formatting, editing, storing, and disseminating data or	1574
information by electronic publishing.	1575

As used in division (B)(42) of this section, "thing" includes	1576
all transactions included in divisions (B)(3)(a), (b), and (e) of	1577
section 5739.01 of the Revised Code.	1578

(43) Sales conducted through a coin operated device that	1579
activates vacuum equipment or equipment that dispenses water,	1580
whether or not in combination with soap or other cleaning agents	1581
or wax, to the consumer for the consumer's use on the premises in	1582
washing, cleaning, or waxing a motor vehicle, provided no other	1583
personal property or personal service is provided as part of the	1584
transaction.	1585

(44) Sales of replacement and modification parts for engines,	1586
airframes, instruments, and interiors in, and paint for, aircraft	1587
used primarily in a fractional aircraft ownership program, and	1588
sales of services for the repair, modification, and maintenance of	1589
such aircraft, and machinery, equipment, and supplies primarily	1590
used to provide those services.	1591

(45) Sales of telecommunications service that is used	1592
directly and primarily to perform the functions of a call center.	1593
As used in this division, "call center" means any physical	1594
location where telephone calls are placed or received in high	1595
volume for the purpose of making sales, marketing, customer	1596
service, technical support, or other specialized business	1597
activity, and that employs at least fifty individuals that engage	1598
in call center activities on a full-time basis, or sufficient	1599
individuals to fill fifty full-time equivalent positions.	1600

(46) Sales by a telecommunications service vendor of 900	1601
service to a subscriber. This division does not apply to	1602
information services, as defined in division (FF) of section	1603
5739.01 of the Revised Code.	1604

(47) Sales of value-added non-voice data service. This	1605
division does not apply to any similar service that is not	1606
otherwise a telecommunications service.	1607

(C) For the purpose of the proper administration of this	1608
chapter, and to prevent the evasion of the tax, it is presumed	1609
that all sales made in this state are subject to the tax until the	1610
contrary is established.	1611

(D) The levy of this tax on retail sales of recreation and	1612
sports club service shall not prevent a municipal corporation from	1613
levying any tax on recreation and sports club dues or on any	1614
income generated by recreation and sports club dues.	1615

(E) The tax collected by the vendor from the consumer under	1616
this chapter is not part of the price, but is a tax collection for	1617
the benefit of the state, and of counties levying an additional	1618
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	1619
Code and of transit authorities levying an additional sales tax	1620
pursuant to section 5739.023 of the Revised Code. Except for the	1621
discount authorized under section 5739.12 of the Revised Code and	1622
the effects of any rounding pursuant to section 5703.055 of the	1623
Revised Code, no person other than the state or such a county or	1624
transit authority shall derive any benefit from the collection or	1625
payment of the tax levied by this section or section 5739.021,	1626
5739.023, or 5739.026 of the Revised Code.	1627

Sec. 5739.035. This section only applies to sales that may be	1628
sitused under this section pursuant to division (B) of section	1629
5739.033 of the Revised Code.	1630

(A) Except as otherwise provided in this section, the situs	1631
of all sales is the vendor's place of business.	1632

(1) If the consumer or the consumer's agent takes possession	1633
of the tangible personal property at a place of business of the	1634
vendor where the purchase contract or agreement was made, the	1635
situs of the sale is that place of business.	1636

(2) If the consumer or the consumer's agent takes possession	1637
of the tangible personal property other than at a place of	1638
business of the vendor, or takes possession at a warehouse or	1639
similar facility of the vendor, the situs of the sale is the	1640
vendor's place of business where the purchase contract or	1641
agreement was made or the purchase order was received.	1642

(3) If the vendor provides a service specified in division	1643
(B)(3)(a), (b), (c), (d), (n), (o), (q), (r), or (s) of section	1644
5739.01 or makes a sale specified in division (B)(8) of section	1645
5739.01 of the Revised Code, the situs of the sale is the vendor's	1646
place of business where the service is performed or the contract	1647
or agreement for the service was made or the purchase order was	1648
received.	1649

(B) If the vendor is a transient vendor as specified in	1650
division (B) of section 5739.17 of the Revised Code, the situs of	1651
the sale is the vendor's temporary place of business or, if the	1652
transient vendor is the lessor of titled motor vehicles, titled	1653
watercraft, or titled outboard motors, at the location where the	1654
lessee keeps the leased property.	1655

(C) If the vendor makes sales of tangible personal property	1656
from a stock of goods carried in a motor vehicle, from which the	1657
purchaser makes selection and takes possession, or from which the	1658
vendor sells tangible personal property the quantity of which has	1659
not been determined prior to the time the purchaser takes	1660
possession, the situs of the sale is the location of the motor	1661
vehicle when the sale is made.	1662

(D) If the vendor is a delivery vendor as specified in	1663
division (D) of section 5739.17 of the Revised Code, the situs of	1664
the sale is the place where the tangible personal property is	1665
delivered, where the leased property is used, or where the service	1666
is performed or received.	1667

(E) If the vendor provides a service specified in division	1668
(B)(3)(e), (g), (h), (j), (k), (l), (m), (p), or (t), or (u) of	1669
section 5739.01 of the Revised Code, the situs of the sale is the	1670
location of the consumer where the service is performed or	1671
received.	1672

(F) If the vendor provides lodging to transient guests as	1673
specified in division (B)(2) of section 5739.01 of the Revised	1674
Code, the situs of the sale is the location where the lodging is	1675
located.	1676

(G) If the vendor sells a warranty, maintenance or service	1677
contract, or similar agreement as specified in division (B)(7) of	1678
section 5739.01 of the Revised Code and the vendor is a delivery	1679
vendor, the situs of the sale is the location of the consumer. If	1680
the vendor is not a delivery vendor, the situs of the sale is the	1681
vendor's place of business where the contract or agreement was	1682
made, unless the warranty or contract is a component of the sale	1683
of a titled motor vehicle, titled watercraft, or titled outboard	1684
motor, in which case the situs of the sale is the county of	1685
titling.	1686

(H) Except as otherwise provided in this division, if the	1687
vendor sells a prepaid authorization number or a prepaid telephone	1688
calling card, the situs of the sale is the vendor's place of	1689
business and shall be taxed at the time of sale. If the vendor	1690
sells a prepaid authorization number or prepaid telephone calling	1691
card through a telephone call, electronic commerce, or any other	1692
form of remote commerce, the situs of the sale is the consumer's	1693
shipping address, or, if there is no item shipped, at the	1694
consumer's billing address.	1695

(I) Division (I) of this section applies only if the tax	1696
commissioner makes the certification provided under section	1697
5740.10 of the Revised Code.	1698

(1) In each delivery sale by a vendor permitted to situs its	1699
sales under this section, the vendor shall clearly indicate on	1700
the invoice or other similar document provided to the purchaser	1701
at the time of the sale that the vendor is a vendor permitted to	1702
situs its sales under this section.	1703

(2) A purchaser that receives tangible personal property or	1704
services in a delivery sale from a vendor permitted to situs its	1705
sales under this section may claim a refund of the tax the vendor	1706
collected and remitted on the sale in an amount equal to the	1707
excess of the tax collected and remitted over the tax that would	1708
have been due if the sale had been sitused to the tax jurisdiction	1709
in which the purchaser received the property or service.	1710

A refund is authorized under this division only if the	1711
invoice or other similar document provided to the purchaser at the	1712
time of the sale includes the notice required under division	1713
(I)(1) of this section.	1714

Refunds shall be filed directly with the tax commissioner and	1715
claimed in the manner prescribed by section 5739.07 of the	1716
Revised Code.	1717

(3) A purchaser of tangible personal property from a vendor	1718
permitted to situs its sales under this section that removes the	1719
property from the tax jurisdiction in which the resident received	1720
the property is liable for additional tax in an amount equal to	1721
the excess of the tax that would have been due on the sale if the	1722
sale had been sitused to the tax jurisdiction to which the	1723
purchaser removed the property over the tax that the vendor	1724
collected and remitted on the sale.	1725

(4) Nothing in this section relieves a person claiming to be	1726
authorized to situs sales under this section, but not so	1727
authorized, from liability for tax, penalty, interest, or	1728
additional charges imposed under this chapter for failure to	1729
collect the amount of tax lawfully due applying the situsing	1730
provisions of divisions (C) to (I) of section 5739.033 of the	1731
Revised Code.	1732

(5) For the purposes of division (I) of this section,	1733
"delivery sale" has the same meaning as in section 5739.033 of the	1734
Revised Code, and "tax jurisdiction" has the same meaning as in	1735
section 5739.24 of the Revised Code.	1736

Sec. 5747.08.  An annual return with respect to the tax	1737
imposed by section 5747.02 of the Revised Code and each tax	1738
imposed under Chapter 5748. of the Revised Code shall be made by	1739
every taxpayer for any taxable year for which the taxpayer is	1740
liable for the tax imposed by that section or under that chapter,	1741
unless the total credits allowed under divisions (E), (F), and (G)	1742
of section 5747.05 of the Revised Code for the year are equal to	1743
or exceed the tax imposed by section 5747.02 of the Revised Code,	1744
in which case no return shall be required unless the taxpayer is	1745
liable for a tax imposed pursuant to Chapter 5748. of the Revised	1746
Code.	1747

(A) If an individual is deceased, any return or notice	1748
required of that individual under this chapter shall be made and	1749
filed by that decedent's executor, administrator, or other person	1750
charged with the property of that decedent.	1751

(B) If an individual is unable to make a return or notice	1752
required by this chapter, the return or notice required of that	1753
individual shall be made and filed by the individual's duly	1754
authorized agent, guardian, conservator, fiduciary, or other	1755
person charged with the care of the person or property of that	1756
individual.	1757

(C) Returns or notices required of an estate or a trust shall	1758
be made and filed by the fiduciary of the estate or trust.	1759

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	1760
of this section, any pass-through entity may file a single return	1761
on behalf of one or more of the entity's investors other than an	1762
investor that is a person subject to the tax imposed under section	1763
5733.06 of the Revised Code. The single return shall set forth the	1764
name, address, and social security number or other identifying	1765
number of each of those pass-through entity investors and shall	1766
indicate the distributive share of each of those pass-through	1767
entity investor's income taxable in this state in accordance with	1768
sections 5747.20 to 5747.231 of the Revised Code. Such	1769
pass-through entity investors for whom the pass-through entity	1770
elects to file a single return are not entitled to the exemption	1771
or credit provided for by sections 5747.02 and 5747.022 of the	1772
Revised Code; shall calculate the tax before business credits at	1773
the highest rate of tax set forth in section 5747.02 of the	1774
Revised Code for the taxable year for which the return is filed;	1775
and are entitled to only their distributive share of the business	1776
credits as defined in division (D)(2) of this section. A single	1777
check drawn by the pass-through entity shall accompany the return	1778
in full payment of the tax due, as shown on the single return, for	1779
such investors, other than investors who are persons subject to	1780
the tax imposed under section 5733.06 of the Revised Code.	1781

(b)(i) A pass-through entity shall not include in such a	1782
single return any investor that is a trust to the extent that any	1783
direct or indirect current, future, or contingent beneficiary of	1784
the trust is a person subject to the tax imposed under section	1785
5733.06 of the Revised Code.	1786

(ii) A pass-through entity shall not include in such a single	1787
return any investor that is itself a pass-through entity to the	1788
extent that any direct or indirect investor in the second	1789
pass-through entity is a person subject to the tax imposed under	1790
section 5733.06 of the Revised Code.	1791

(c) Nothing in division (D) of this section precludes the tax	1792
commissioner from requiring such investors to file the return and	1793
make the payment of taxes and related interest, penalty, and	1794
interest penalty required by this section or section 5747.02,	1795
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	1796
of this section shall be construed to provide to such an investor	1797
or pass-through entity any additional deduction or credit, other	1798
than the credit provided by division (J) of this section, solely	1799
on account of the entity's filing a return in accordance with this	1800
section. Such a pass-through entity also shall make the filing and	1801
payment of estimated taxes on behalf of the pass-through entity	1802
investors other than an investor that is a person subject to the	1803
tax imposed under section 5733.06 of the Revised Code.	1804

(2) For the purposes of this section, "business credits"	1805
means the credits listed in section 5747.98 of the Revised Code	1806
excluding the following credits:	1807

(a) The retirement credit under division (B) of section	1808
5747.055 of the Revised Code;	1809

(b) The senior citizen credit under division (C) of section	1810
5747.05 of the Revised Code;	1811

(c) The lump sum distribution credit under division (D) of	1812
section 5747.05 of the Revised Code;	1813

(d) The dependent care credit under section 5747.054 of the	1814
Revised Code;	1815

(e) The lump sum retirement income credit under division (C)	1816
of section 5747.055 of the Revised Code;	1817

(f) The lump sum retirement income credit under division (D)	1818
of section 5747.055 of the Revised Code;	1819

(g) The lump sum retirement income credit under division (E)	1820
of section 5747.055 of the Revised Code;	1821

(h) The credit for displaced workers who pay for job training	1822
under section 5747.27 of the Revised Code;	1823

(i) The twenty-dollar personal exemption credit under section	1824
5747.022 of the Revised Code;	1825

(j) The joint filing credit under division (G) of section	1826
5747.05 of the Revised Code;	1827

(k) The nonresident credit under division (A) of section	1828
5747.05 of the Revised Code;	1829

(l) The credit for a resident's out-of-state income under	1830
division (B) of section 5747.05 of the Revised Code;	1831

(m) The low-income credit under section 5747.056 of the	1832
Revised Code.	1833

(3) The election provided for under division (D) of this	1834
section applies only to the taxable year for which the election is	1835
made by the pass-through entity. Unless the tax commissioner	1836
provides otherwise, this election, once made, is binding and	1837
irrevocable for the taxable year for which the election is made.	1838
Nothing in this division shall be construed to provide for any	1839
deduction or credit that would not be allowable if a nonresident	1840
pass-through entity investor were to file an annual return.	1841

(4) If a pass-through entity makes the election provided for	1842
under division (D) of this section, the pass-through entity shall	1843
be liable for any additional taxes, interest, interest penalty, or	1844
penalties imposed by this chapter if the tax commissioner finds	1845
that the single return does not reflect the correct tax due by the	1846
pass-through entity investors covered by that return. Nothing in	1847
this division shall be construed to limit or alter the liability,	1848
if any, imposed on pass-through entity investors for unpaid or	1849
underpaid taxes, interest, interest penalty, or penalties as a	1850
result of the pass-through entity's making the election provided	1851
for under division (D) of this section. For the purposes of	1852
division (D) of this section, "correct tax due" means the tax that	1853
would have been paid by the pass-through entity had the single	1854
return been filed in a manner reflecting the tax commissioner's	1855
findings. Nothing in division (D) of this section shall be	1856
construed to make or hold a pass-through entity liable for tax	1857
attributable to a pass-through entity investor's income from a	1858
source other than the pass-through entity electing to file the	1859
single return.	1860

(E) If a husband and wife file a joint federal income tax	1861
return for a taxable year, they shall file a joint return under	1862
this section for that taxable year, and their liabilities are	1863
joint and several, but, if the federal income tax liability of	1864
either spouse is determined on a separate federal income tax	1865
return, they shall file separate returns under this section.	1866

If either spouse is not required to file a federal income tax	1867
return and either or both are required to file a return pursuant	1868
to this chapter, they may elect to file separate or joint returns,	1869
and, pursuant to that election, their liabilities are separate or	1870
joint and several. If a husband and wife file separate returns	1871
pursuant to this chapter, each must claim the taxpayer's own	1872
exemption, but not both, as authorized under section 5747.02 of	1873
the Revised Code on the taxpayer's own return.	1874

(F) Each return or notice required to be filed under this	1875
section shall contain the signature of the taxpayer or the	1876
taxpayer's duly authorized agent and of the person who prepared	1877
the return for the taxpayer, and shall include the taxpayer's	1878
social security number. Each return shall be verified by a	1879
declaration under the penalties of perjury. The tax commissioner	1880
shall prescribe the form that the signature and declaration shall	1881
take.	1882

(G) Each return or notice required to be filed under this	1883
section shall be made and filed as required by section 5747.04 of	1884
the Revised Code, on or before the fifteenth day of April of each	1885
year, on forms that the tax commissioner shall prescribe, together	1886
with remittance made payable to the treasurer of state in the	1887
combined amount of the state and all school district income taxes	1888
shown to be due on the form, unless the combined amount shown to	1889
be due is one dollar or less, in which case that amount need not	1890
be remitted.	1891

Upon good cause shown, the tax commissioner may extend the	1892
period for filing any notice or return required to be filed under	1893
this section and may adopt rules relating to extensions. If the	1894
extension results in an extension of time for the payment of any	1895
state or school district income tax liability with respect to	1896
which the return is filed, the taxpayer shall pay at the time the	1897
tax liability is paid an amount of interest computed at the rate	1898
per annum prescribed by section 5703.47 of the Revised Code on	1899
that liability from the time that payment is due without extension	1900
to the time of actual payment. Except as provided in section	1901
5747.132 of the Revised Code, in addition to all other interest	1902
charges and penalties, all taxes imposed under this chapter or	1903
Chapter 5748. of the Revised Code and remaining unpaid after they	1904
become due, except combined amounts due of one dollar or less,	1905
bear interest at the rate per annum prescribed by section 5703.47	1906
of the Revised Code until paid or until the day an assessment is	1907
issued under section 5747.13 of the Revised Code, whichever occurs	1908
first.	1909

If the tax commissioner considers it necessary in order to	1910
ensure the payment of the tax imposed by section 5747.02 of the	1911
Revised Code or any tax imposed under Chapter 5748. of the Revised	1912
Code, the tax commissioner may require returns and payments to be	1913
made otherwise than as provided in this section.	1914

To the extent that any provision in this division conflicts	1915
with any provision in section 5747.026 of the Revised Code, the	1916
provision in that section prevails.	1917

(H) If any report, claim, statement, or other document	1918
required to be filed, or any payment required to be made, within a	1919
prescribed period or on or before a prescribed date under this	1920
chapter is delivered after that period or that date by United	1921
States mail to the agency, officer, or office with which the	1922
report, claim, statement, or other document is required to be	1923
filed, or to which the payment is required to be made, the date of	1924
the postmark stamped on the cover in which the report, claim,	1925
statement, or other document, or payment is mailed shall be deemed	1926
to be the date of delivery or the date of payment.	1927

If a payment is required to be made by electronic funds	1928
transfer pursuant to section 5747.072 of the Revised Code, the	1929
payment is considered to be made when the payment is received by	1930
the treasurer of state or credited to an account designated by the	1931
treasurer of state for the receipt of tax payments.	1932

"The date of the postmark" means, in the event there is more	1933
than one date on the cover, the earliest date imprinted on the	1934
cover by the United States postal service.	1935

(I) The amounts withheld by the employer pursuant to section	1936
5747.06 of the Revised Code shall be allowed to the recipient of	1937
the compensation as credits against payment of the appropriate	1938
taxes imposed on the recipient by section 5747.02 and under	1939
Chapter 5748. of the Revised Code.	1940

(J) If, in accordance with division (D) of this section, a	1941
pass-through entity elects to file a single return and if any	1942
investor is required to file the return and make the payment of	1943
taxes required by this chapter on account of the investor's other	1944
income that is not included in a single return filed by a	1945
pass-through entity, the investor is entitled to a refundable	1946
credit equal to the investor's proportionate share of the tax paid	1947
by the pass-through entity on behalf of the investor. The investor	1948
shall claim the credit for the investor's taxable year in which or	1949
with which ends the taxable year of the pass-through entity.	1950
Nothing in this chapter shall be construed to allow any credit	1951
provided in this chapter to be claimed more than once. For the	1952
purposes of computing any interest, penalty, or interest penalty,	1953
the investor shall be deemed to have paid the refundable credit	1954
provided by this division on the day that the pass-through entity	1955
paid the estimated tax or the tax giving rise to the credit.	1956

(K) The tax commissioner shall ensure that each return	1957
required to be filed under this section includes a box that the	1958
taxpayer may check to authorize a paid tax preparer who prepared	1959
the return to communicate with the department of taxation about	1960
matters pertaining to the return. The return or instructions	1961
accompanying the return shall indicate that by checking the box	1962
the taxpayer authorizes the department of taxation to contact the	1963
preparer concerning questions that arise during the processing of	1964
the return and authorizes the preparer only to provide the	1965
department with information that is missing from the return, to	1966
contact the department for information about the processing of the	1967
return or the status of the taxpayer's refund or payments, and to	1968
respond to notices about mathematical errors, offsets, or return	1969
preparation that the taxpayer has received from the department and	1970
has shown to the preparer.	1971

Section 2. That existing sections 3953.33, 5701.11, 5739.01,	1972
5739.02, 5739.035, and 5747.08 of the Revised Code are hereby	1973
repealed.	1974

Section 3. The amendments by this act of sections 5701.11,	1975
5739.01, 5739.02, and 5739.035 of the Revised Code provide for or	1976
are essential to implementation of a tax levy. Therefore, under	1977
Ohio Constitution, Article II, Section 1d, the amendments, and	1978
the items of which they are composed, are not subject to the	1979
referendum and go into immediate effect when this act becomes law.	1980

Section 4.  Section 5739.01 of the Revised Code is presented	1981
in this act as a composite of the section as amended by both Sub.	1982
H.B. 293 and Am. Sub. H.B. 699 of the 126th General Assembly. The	1983
General Assembly, applying the principle stated in division (B)	1984
of section 1.52 of the Revised Code that amendments are to be	1985
harmonized if reasonably capable of simultaneous operation, finds	1986
that the composite is the resulting version of the section in	1987
effect prior to the effective date of the section as presented in	1988
this act.	1989