Cosponsors:
Representatives Schindel, Bolon, Foley, Hagan, J., Letson, Patton, Aslanides, Bacon, Batchelder, Blessing, Chandler, Collier, Combs, Domenick, Fessler, Flowers, Gardner, Hughes, McGregor, J., Raussen, Schneider, Setzer, Wachtmann, Webster
Senators Schuler, Amstutz, Spada, Kearney, Buehrer, Coughlin, Harris, Miller, D., Mumper, Niehaus, Seitz, Wilson, Mason, Sawyer, Padgett, Wagoner, Cafaro
Sec. 5703.70. (A) On the filing of an application for refund | 20 |
under section 3734.905, 4307.05, 4307.07, 5727.28, 5727.91, | 21 |
5728.061, 5733.12, 5735.122, 5735.13, 5735.14, 5735.141, 5735.142, | 22 |
5735.18, 5739.07, 5739.071, 5739.104, 5741.10, 5743.05, 5743.53,
| 23 |
5749.08, or 5751.08 of the
Revised Code, or an application for | 24 |
compensation under section 5739.1235739.061 of the Revised Code, | 25 |
if the
tax commissioner determines
that the amount
of the refund | 26 |
or
compensation to which the applicant is entitled
is less than | 27 |
the
amount claimed in the application, the
commissioner shall give | 28 |
the
applicant written notice by ordinary
mail of the amount. The | 29 |
notice shall be sent to the address shown
on the application | 30 |
unless the applicant notifies the
commissioner of a
different | 31 |
address. The applicant shall have
sixty days
from the
date the | 32 |
commissioner mails the notice to
provide
additional
information to | 33 |
the commissioner or request a
hearing,
or both. | 34 |
(C)(1) If the applicant requests a hearing within the time | 40 |
prescribed by division (A) of this section, the tax commissioner | 41 |
shall assign a time and place for the hearing and notify the | 42 |
applicant of such time and place, but the commissioner may | 43 |
continue the hearing from
time to time as necessary. After the | 44 |
hearing, the commissioner
may make such adjustments to the refund | 45 |
or compensation
as the commissioner finds
proper, and shall issue | 46 |
a final
determination thereon. | 47 |
(D) The tax commissioner shall certify to the director of | 59 |
budget and management and treasurer of state for payment from the | 60 |
tax refund fund created by section 5703.052 of the Revised Code, | 61 |
the amount of the refund to be refunded under division (B) or (C) | 62 |
of this
section. The commissioner also shall certify to the | 63 |
director and treasurer of state for payment from the general | 64 |
revenue fund the amount of compensation to be paid under division | 65 |
(B) or (C) of this section. | 66 |
Sec. 5739.03.
(A) Except as provided in section 5739.05 of | 67 |
the
Revised Code, the tax imposed by or pursuant to section | 68 |
5739.02,
5739.021, 5739.023, or 5739.026 of the Revised Code shall | 69 |
be paid
by the consumer to the vendor, and each vendor shall | 70 |
collect from
the consumer, as a trustee for the state of Ohio, the | 71 |
full and
exact amount of the tax payable on each taxable sale, in | 72 |
the
manner and at the times provided as follows: | 73 |
(2) If the price is otherwise paid or to be paid, the
vendor | 80 |
or the vendor's agent shall, at or prior to the
provision
of the | 81 |
service or the delivery of possession of the thing sold to
the | 82 |
consumer, charge the tax imposed by or pursuant to section | 83 |
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code to | 84 |
the account of the consumer, which amount shall be collected by | 85 |
the vendor from the consumer in addition to the price. Such sale | 86 |
shall be reported on and the amount of the tax applicable thereto | 87 |
shall be remitted with the return for the period in which the
sale | 88 |
is made, and the amount of the tax shall become a legal
charge in | 89 |
favor of the vendor and against the consumer. | 90 |
(B)(1)(a) If any sale is claimed to be exempt under division | 91 |
(E) of
section 5739.01 of the Revised Code or under section | 92 |
5739.02 of
the Revised Code, with the exception of divisions | 93 |
(B)(1) to (11)
or (28) of section 5739.02 of the Revised Code, the | 94 |
consumer must
provide to the vendor, and the vendor must
obtain | 95 |
from the
consumer, a certificate specifying the reason that
the | 96 |
sale is
not legally subject to the tax.
The certificate shall
be | 97 |
in such form, and shall be provided either in a hard copy form or | 98 |
electronic form, as
the tax commissioner prescribes. | 99 |
(b) A vendor that obtains a fully completed exemption | 100 |
certificate from a consumer is relieved of liability for | 101 |
collecting and remitting tax on any sale covered by that | 102 |
certificate. If it is determined the exemption was improperly | 103 |
claimed, the consumer shall be liable for any tax due on that sale | 104 |
under section 5739.02, 5739.021, 5739.023, or 5739.026 or Chapter | 105 |
5741. of the Revised Code. Relief under this division from | 106 |
liability does not apply to any of the following: | 107 |
(iii) A vendor that accepts an exemption certificate from a | 111 |
consumer that claims an exemption based on who purchases or who | 112 |
sells property or a service, when the subject of the transaction | 113 |
sought to be covered by the exemption certificate is actually | 114 |
received by the consumer at a location operated by the vendor in | 115 |
this state, and this state has posted to its web site an exemption | 116 |
certificate form that clearly and affirmatively indicates that the | 117 |
claimed exemption is not available in this state; | 118 |
(4) If
no certificate is
provided or obtained
within ninety | 132 |
days after the date on which
such sale is
consummated, it shall be | 133 |
presumed
that the tax
applies.
Failure
to have so
provided or | 134 |
obtained a
certificate shall
not
preclude a vendor, within one | 135 |
hundred twenty days after the tax commissioner gives written | 136 |
notice of intent to levy an assessment,
from
either establishing | 137 |
that the sale
is
not
subject to the tax, or obtaining, in good | 138 |
faith, a fully completed exemption certificate. | 139 |
(6) If a transaction is claimed to be exempt under division | 146 |
(B)(13) of section 5739.02 of the Revised Code, the contractor | 147 |
shall obtain certification of the claimed exemption from the | 148 |
contractee. This certification shall be in addition to an | 149 |
exemption certificate provided by the contractor to the vendor. A | 150 |
contractee that provides a certification under this division shall | 151 |
be deemed to be the consumer of all items purchased by the | 152 |
contractor under the claim of exemption, if it is subsequently | 153 |
determined that the exemption is not properly claimed. The | 154 |
certification shall be in such form as the tax commissioner | 155 |
prescribes. | 156 |
Any contractor or vendor may request from any contractee a | 162 |
certification of what portion of the property to be transferred | 163 |
under such contract or agreement is to be incorporated into the | 164 |
realty and what portion will retain its status as tangible | 165 |
personal property after installation is completed. The
contractor | 166 |
or vendor shall request the certification by certified
mail | 167 |
delivered to the contractee, return receipt requested. Upon | 168 |
receipt of such request and prior to entering into the contract
or | 169 |
agreement, the contractee shall
provide to the contractor
or | 170 |
vendor a certification sufficiently detailed to enable the | 171 |
contractor or vendor to ascertain the resulting classification of | 172 |
all materials purchased or fabricated by the contractor or vendor | 173 |
and transferred to the contractee. This requirement applies to a | 174 |
contractee regardless of whether the contractee holds a direct | 175 |
payment permit under section 5739.031 of the Revised Code or
| 176 |
provides to the contractor or vendor an exemption
certificate as | 177 |
provided under this section. | 178 |
For the purposes of the taxes levied by this chapter and | 179 |
Chapter 5741. of the Revised Code, the contractor or vendor may
in | 180 |
good faith rely on the contractee's certification.
Notwithstanding | 181 |
division (B) of section 5739.01 of the Revised
Code, if the tax | 182 |
commissioner determines that certain property
certified by the | 183 |
contractee as tangible personal property
pursuant to this division | 184 |
is, in fact, real property, the
contractee shall be considered to | 185 |
be the consumer of all
materials so incorporated into that real | 186 |
property and shall be
liable for the applicable tax, and the | 187 |
contractor or vendor shall
be excused from any liability on those | 188 |
materials. | 189 |
If a contractee fails to provide such certification upon
the | 190 |
request of the contractor or vendor, the contractor or vendor | 191 |
shall comply with the provisions of this chapter and Chapter
5741. | 192 |
of the Revised Code without the certification. If the tax | 193 |
commissioner determines that such compliance has been performed
in | 194 |
good faith and that certain property treated as tangible
personal | 195 |
property by the contractor or vendor is, in fact, real
property, | 196 |
the contractee shall be considered to be the consumer
of all | 197 |
materials so incorporated into that real property and
shall be | 198 |
liable for the applicable tax, and the construction
contractor or | 199 |
vendor shall be excused from any liability on those
materials. | 200 |
(E) A vendor who files a petition for reassessment
contesting | 211 |
the assessment of tax on sales for which the
vendor
obtained no | 212 |
valid exemption certificates and for which the
vendor
failed to | 213 |
establish that the sales
were properly not
subject to
the tax | 214 |
during the
one-hundred-twenty-day
period allowed under
division | 215 |
(B) of this
section, may present to the tax commissioner | 216 |
additional evidence
to prove that the sales were properly subject | 217 |
to a claim of
exception or exemption. The vendor shall file such | 218 |
evidence
within ninety days of the receipt by the vendor of the | 219 |
notice of
assessment, except that, upon application and for | 220 |
reasonable
cause, the period for submitting such evidence shall
be | 221 |
extended
thirty days. | 222 |
Sec. 5739.033. (A) Except as provided in division (B) of
| 232 |
this section, divisions (C) to (I) of this section apply to sales
| 233 |
made on and after January 1, 2008. Any vendor previously
required
| 234 |
to comply with divisions (C) to (I) of this section and
any
| 235 |
vendor that irrevocably
elects to comply with divisions
(C) to
| 236 |
(I) of this section for all
of the vendor's sales and
places of
| 237 |
business in this state shall continue to source its
sales under
| 238 |
those divisions. | 239 |
The amount of tax due pursuant to sections
5739.02, 5739.021,
| 240 |
5739.023, and 5739.026 of the Revised Code is
the sum of the taxes
| 241 |
imposed pursuant to those sections at the
sourcing location of the
| 242 |
sale as determined under this
section or, if
applicable, under
| 243 |
division (C) of section 5739.031 or section 5739.034 of the
| 244 |
Revised Code, or at the situs of the sale as determined under
| 245 |
section 5739.035 of the Revised
Code. This section applies only to
| 246 |
a vendor's or seller's obligation to collect and remit sales taxes
| 247 |
under section 5739.02, 5739.021, 5739.023, or 5739.026 of the
| 248 |
Revised Code or use taxes under section 5741.02, 5741.021,
| 249 |
5741.022, or 5741.023 of the Revised Code. Division (A) of this
| 250 |
section does not apply in determining the jurisdiction for which
| 251 |
sellers are required to collect the use tax under section 5741.05
| 252 |
of the Revised Code. This section does not affect the obligation
| 253 |
of a consumer to remit use taxes on the storage, use, or other
| 254 |
consumption of tangible personal property or on the benefit
| 255 |
realized of any service provided, to the jurisdiction of that
| 256 |
storage, use, or consumption, or benefit realized.
| 257 |
(2) If the tax commissioner does not make the
certification
| 268 |
under section 5740.10 of the Revised Code, a vendor
that is not
| 269 |
required by division (A) of this section to situs
sales
under
| 270 |
divisions (C) to (I) of this section on the date of
the
| 271 |
commissioner's certification may continue after that date to
| 272 |
situs
its sales under section 5739.035 of the Revised Code unless
| 273 |
it is
required, under division (B)(5) of this section, to situs
| 274 |
its
sales under divisions (C) to (I) of this section. | 275 |
(5) A vendor permitted under division (B)(3) of this section
| 287 |
to situs its sales under section 5739.035 of the Revised Code that
| 288 |
fails to provide, absent a clerical error, the notices required
| 289 |
under division (I)(1) of
section 5739.035 of the Revised Code
| 290 |
shall situs all subsequent
sales as required under divisions (C)
| 291 |
to (I) of this sectionBeginning January 1, 2010,
retail sales, | 292 |
excluding the lease or rental, of tangible personal
property or | 293 |
digital goods shall be sourced to the location where
the vendor | 294 |
receives an order for the sale of such property or goods if: | 295 |
(2) A consumer has no additional liability to this state | 304 |
under this chapter or Chapter 5741. of the Revised Code for
tax, | 305 |
penalty, or interest on a sale for which the consumer remits
tax | 306 |
to the vendor in the amount invoiced by the vendor if the
invoice | 307 |
amount is calculated at either the rate applicable to the | 308 |
location where the consumer receives the property or digital good | 309 |
or at the rate applicable to the location where the order is | 310 |
received by the vendor. A consumer may rely on a written | 311 |
representation by the vendor as to the location where the order | 312 |
for the sale was received by the vendor. If the consumer does not | 313 |
have a written representation by the vendor as to the location | 314 |
where the order was received by the vendor, the consumer may use a | 315 |
location indicated by a business address for the vendor that is | 316 |
available from records that are maintained in the ordinary course | 317 |
of the consumer's business to determine the rate applicable to the | 318 |
location where the order was received. | 319 |
(3) For the purposes of division (B) of this section, the | 320 |
location where an order is received by or on behalf of a vendor | 321 |
means the physical location of the vendor or a third party such as | 322 |
an established outlet, office location, or automated order receipt | 323 |
system operated by or on behalf of the vendor, where an order is | 324 |
initially received by or on behalf of the vendor, and not where | 325 |
the order may be subsequently accepted, completed, or fulfilled. | 326 |
An order is received when all necessary information to determine | 327 |
whether the order can be accepted has been received by or on | 328 |
behalf of the vendor. The location from which the property or | 329 |
digital good is shipped
shall not be used to determine the | 330 |
location where the order is
received by the vendor. | 331 |
(4) For the purposes of division (B) of this section, if | 332 |
services subject to taxation under this chapter or Chapter 5741. | 333 |
of the Revised Code are sold with tangible personal property or | 334 |
digital goods pursuant to a single contract or in the same | 335 |
transaction, the services are billed on the same billing statement | 336 |
or invoice, and, because of the application of division (B) of | 337 |
this section, the
transaction would be sourced to more than one | 338 |
jurisdiction, the
situs of the transaction shall be the location | 339 |
where the order is
received by or on behalf of the vendor.
| 340 |
(4) If divisions (C)(1), (2), and (3) of this section do
not
| 362 |
apply, the sale shall be sourced to
the location indicated by an
| 363 |
address for the
consumer obtained
during the consummation of the
| 364 |
sale, including
the address
associated with the consumer's payment
| 365 |
instrument, if
no other
address is available, when use of that
| 366 |
address does not
constitute
bad faith.
| 367 |
(5) If divisions (C)(1), (2), (3), and (4) of this section
do
| 368 |
not apply, including in the circumstance where the vendor is
| 369 |
without sufficient information to apply any of those divisions,
| 370 |
the sale shall be sourced to
the
address from which tangible
| 371 |
personal property was shipped,
or from
which the service was
| 372 |
provided, disregarding any
location
that
merely provided the
| 373 |
electronic transfer of the
property sold
or
service provided.
| 374 |
(D)(1)(a) Notwithstanding divisions (C)(1) to (5) of this
| 379 |
section, a business consumer that is not a holder of
a direct
| 380 |
payment permit granted under section 5739.031 of the
Revised Code,
| 381 |
that purchases a digital good, computer software, except computer
| 382 |
software received in person by a business consumer at a vendor's
| 383 |
place of business, or a
service, and that knows at the time of
| 384 |
purchase that such digital good, software, or service will be
| 385 |
concurrently
available for use in more than one taxing
| 386 |
jurisdiction shall
deliver to the vendor in conjunction with its
| 387 |
purchase an exemption certificate claiming multiple
points of use,
| 388 |
or shall meet the requirements of division (D)(2) of this section.
| 389 |
On receipt of the exemption certificate claiming multiple points
| 390 |
of use, the vendor is relieved of its obligation to
collect, pay,
| 391 |
or remit the tax due, and the business consumer must
pay the tax
| 392 |
directly to the state.
| 393 |
(b) A business consumer that delivers the exemption
| 394 |
certificate claiming multiple points of use to a vendor may use
| 395 |
any reasonable, consistent, and uniform method of apportioning the
| 396 |
tax due on the digital good, computer software, or service that is
| 397 |
supported by the consumer's business records as they existed at
| 398 |
the
time of the sale. The business consumer shall report and pay
| 399 |
the appropriate tax to each jurisdiction where concurrent use
| 400 |
occurs. The tax due shall be calculated as if the apportioned
| 401 |
amount of the digital good, computer software, or service had been
| 402 |
delivered to each jurisdiction to which the sale is apportioned
| 403 |
under this division.
| 404 |
(2) When the vendor knows that a digital good, computer
| 411 |
software, or service sold will be concurrently available for use
| 412 |
by the business consumer in more than one jurisdiction, but the
| 413 |
business consumer does not provide an exemption certificate
| 414 |
claiming multiple points of use as required by division (D)(1) of
| 415 |
this section, the vendor may work with the business consumer to
| 416 |
produce the correct apportionment. Governed by the principles of
| 417 |
division (D)(1)(b) of this section, the vendor and business
| 418 |
consumer may use any reasonable, but consistent and uniform,
| 419 |
method of apportionment that is supported by the vendor's and
| 420 |
business consumer's books and records as they exist at the time
| 421 |
the sale is reported for purposes of the taxes levied under this
| 422 |
chapter. If the business consumer certifies to the accuracy of the
| 423 |
apportionment and the vendor accepts the certification, the vendor
| 424 |
shall collect and remit the tax accordingly. In the absence of bad
| 425 |
faith, the vendor is relieved of any further obligation to collect
| 426 |
tax on any transaction where the vendor has collected tax pursuant
| 427 |
to the information certified by the business consumer.
| 428 |
(3) When the vendor knows that the digital good, computer
| 429 |
software, or service will be concurrently available for use in
| 430 |
more than one jurisdiction, and the business consumer does not
| 431 |
have a direct pay permit and does not provide to the vendor an
| 432 |
exemption certificate claiming multiple points of use as required
| 433 |
in division (D)(1) of this section, or certification pursuant to
| 434 |
division (D)(2) of this section, the vendor shall collect and
| 435 |
remit the tax based on division (C) of this section.
| 436 |
(E) A person who holds a direct payment permit issued under
| 443 |
section 5739.031 of the Revised Code is not required to deliver an
| 444 |
exemption certificate claiming
multiple points of use to a vendor.
| 445 |
But such
permit holder shall comply with division (D)(2) of this
| 446 |
section in
apportioning the tax due on a digital good, computer
| 447 |
software, or a
service for use in business that will be
| 448 |
concurrently available for use in more than
one taxing
| 449 |
jurisdiction.
| 450 |
(3) Upon receipt of information from the consumer showing the
| 463 |
jurisdictions to which the direct mail is delivered to recipients,
| 464 |
the vendor shall collect the tax according to the delivery
| 465 |
information provided by the consumer. In the absence of bad faith,
| 466 |
the vendor is relieved of any further obligation to collect tax on
| 467 |
any transaction where the vendor has collected tax pursuant to the
| 468 |
delivery information provided by the consumer.
| 469 |
(4) If the consumer of direct mail does not have a direct
| 470 |
payment permit and does not provide the vendor with either an
| 471 |
exemption certificate claiming direct mail or delivery information
| 472 |
as required by division (F)(1) of this section, the vendor shall
| 473 |
collect the tax according to division (C)(5) of this section.
| 474 |
Nothing in division (F)(4) of this section shall limit a
| 475 |
consumer's obligation to pay sales or use tax to any state to
| 476 |
which the direct mail is delivered.
| 477 |
(b) Trucks and truck-tractors with a gross vehicle weight
| 490 |
rating of greater than ten thousand pounds, trailers,
| 491 |
semi-trailers, or passenger buses that are registered through the
| 492 |
international registration plan and are operated under authority
| 493 |
of a carrier authorized and certificated by the United States
| 494 |
department of transportation or another federal authority to
| 495 |
engage in the carriage of persons or property in interstate
| 496 |
commerce.
| 497 |
(3) "Customer" means the person or entity that contracts with | 555 |
a seller of telecommunications service. If the end user of | 556 |
telecommunications service is not the contracting party, the end | 557 |
user of the telecommunications service is the customer of the | 558 |
telecommunications service. "Customer" does not include a reseller | 559 |
of telecommunications service or of mobile telecommunications | 560 |
service of a serving carrier under an agreement to serve the | 561 |
customer outside the home service provider's licensed service | 562 |
area. | 563 |
(7) "Post-paid calling service" means the telecommunications | 578 |
service obtained by making a payment on a call-by-call basis | 579 |
either through the use of a credit card or payment mechanism such | 580 |
as a bank card, travel card, credit card, or debit card, or by | 581 |
charge made to a telephone number that is not associated with the | 582 |
origination or termination of the telecommunications service. | 583 |
"Post-paid calling service" includes a telecommunications service, | 584 |
except a prepaid wireless calling service, that would be a prepaid | 585 |
calling service, but for the fact that it is not exclusively a | 586 |
telecommunications service. | 587 |
(10) "Private communication service" means a | 604 |
telecommunications service that entitles a customer to exclusive | 605 |
or priority use of a communications channel or group of channels | 606 |
between or among termination points, regardless of the manner in | 607 |
which the channel or channels are connected, and includes | 608 |
switching capacity, extension lines, stations, and any other | 609 |
associated services that are provided in connection with the use | 610 |
of such channel or channels. | 611 |
(B) The amount of tax due pursuant to sections 5739.02, | 612 |
5739.021, 5739.023, and 5739.026 of the Revised Code on sales of | 613 |
telecommunications service, information service, or mobile | 614 |
telecommunications service, is the sum of the taxes imposed | 615 |
pursuant to those sections at the sourcing location of the sale as | 616 |
determined under this section. | 617 |
(C) Except for the telecommunications services described in | 618 |
division (E) of this section, the sale of telecommunications | 619 |
service sold on a call-by-call basis shall be sourced to each | 620 |
level of taxing jurisdiction where the call originates and | 621 |
terminates in that jurisdiction, or each level of taxing | 622 |
jurisdiction where the call either originates or terminates and in | 623 |
which the service address also is located. | 624 |
(3) A sale of prepaid calling service or prepaid wireless | 641 |
calling service shall be sourced under division (C) of section | 642 |
5739.033 of the Revised Code or, if permitted by division (B) of | 643 |
that section, shall be sitused under section 5739.035 of the | 644 |
Revised Code. But in the case of prepaid wireless calling service, | 645 |
in lieu of sourcing the sale of the service under division (C)(5) | 646 |
of section 5739.033 of the Revised Code, the service provider may | 647 |
elect to source the sale to the location associated with the | 648 |
mobile telephone number. | 649 |
(B) On and after July 1, 2009, a vendor that received | 675 |
temporary compensation under section 5739.123 of the Revised Code | 676 |
as that section existed before its repeal by H.B. 429 of the 127th | 677 |
general assembly may apply for compensation to assist the vendor | 678 |
in complying with the origin-based sourcing requirements. The | 679 |
vendor shall file an application in accordance with division (C) | 680 |
of this section. The compensation shall be a one-time payment | 681 |
equal to the actual total costs the vendor incurred in complying | 682 |
with the origin-based sourcing requirements, not to exceed one | 683 |
thousand dollars for vendors that were required to comply with | 684 |
divisions (C) to (I) of section 5739.033 of the Revised Code | 685 |
before the effective date of this section, and six hundred dollars | 686 |
for vendors that irrevocably elected to comply with divisions (C) | 687 |
to (I) of that section before the effective date of this section. | 688 |
In no event shall a vendor receive compensation that exceeds its | 689 |
total cost of complying with the origin-based sourcing | 690 |
requirements. | 691 |
(C) To be considered for compensation under this section, a | 692 |
vendor shall file an application with the tax commissioner on a | 693 |
form prescribed by the commissioner. The commissioner shall | 694 |
determine the amount of compensation to which the vendor is | 695 |
entitled, and if that amount is equal to or greater than the | 696 |
amount claimed on the application, the commissioner shall certify | 697 |
that amount to the director of budget and management and the | 698 |
treasurer of state for payment from the general revenue fund. If | 699 |
the commissioner determines that the amount of compensation to | 700 |
which the vendor is entitled is less than the amount claimed on | 701 |
the vendor's application, the commissioner shall proceed in | 702 |
accordance with section 5703.70 of the Revised Code. | 703 |
(B)(1) Beginning in 2006 and ending January 31, 2009, within
| 720 |
thirty days after the thirtieth day of June and the thirty-first
| 721 |
day of December of each year, a master account holder that makes a
| 722 |
sale that is subject to the destination-based sourcing
| 723 |
requirements shall file with the tax commissioner a report that
| 724 |
details the total taxable sales it made for the prior six-month
| 725 |
period in each tax jurisdiction and at each fixed place of
| 726 |
business for which the master account holder holds or should hold
| 727 |
a license, irrespective of where those sales were sourced under
| 728 |
those requirements. The commissioner may extend the time for
| 729 |
filing the report under this section.
| 730 |
(2) If the report required by division (B)(1) of this section
| 731 |
is not timely filed by a master account holder, the tax
| 732 |
commissioner shall mail notice of a delinquent report to the
| 733 |
holder. In addition to any other penalties or additional charges
| 734 |
imposed under this chapter, the commissioner may impose a penalty
| 735 |
of up to fifty dollars for each fixed place of business of the
| 736 |
master account holder. If the report is filed within fifteen days
| 737 |
after the commissioner mails the delinquency notice, the penalty
| 738 |
may be remitted in full or in part by the commissioner. But if the
| 739 |
master account holder fails to file the report within fifteen days
| 740 |
after the commissioner mails the notice, the commissioner shall
| 741 |
impose a penalty of up to one hundred dollars for each fixed place
| 742 |
of business of the master account holder. This penalty may not be
| 743 |
remitted in full by the commissioner. A penalty imposed under this
| 744 |
division is subject to collection and assessment in the same
| 745 |
manner as any tax levied under this chapter.
| 746 |
(D)(1) If the percentage difference calculated under division
| 775 |
(C)(3) of this section for a county is ninety-six per cent or
| 776 |
less, and the county is an impacted county under this section, the
| 777 |
county shall receive compensation. Beginning in 2006 and ending
| 778 |
May 1, 2009, within ninety days after the thirty-first day of July
| 779 |
each year and the thirty-first day of January of the following
| 780 |
year, the tax commissioner, in the next ensuing payment to be made
| 781 |
under division (B)(1) of section 5739.21 of the Revised Code,
| 782 |
shall in addition provide from the general revenue fund to such
| 783 |
county compensation in the amount of ninety-eight per cent of the
| 784 |
denominator calculated under division (C)(3) of this section,
| 785 |
minus the numerator calculated under division (C)(3) of this
| 786 |
section.
| 787 |
(2) A county that is entitled to compensation under division
| 788 |
(D)(1) of this section may request an advance payment of that
| 789 |
compensation. The commissioner shall adopt rules that establish
| 790 |
the manner by which such county may make the request and the
| 791 |
method the commissioner will use to determine the amount of the
| 792 |
advance payment to be made to the county. Compensation provided
| 793 |
under division (D)(1) of this section shall be adjusted
| 794 |
accordingly to account for advance payments made under division
| 795 |
(D)(2) of this section.
| 796 |
(E) If, under division (C)(1) of this section, the tax
| 797 |
commissioner determines that a county received more taxes under
| 798 |
the destination-based sourcing requirements than it would have
| 799 |
received if taxes had been paid in accordance with section
| 800 |
5739.035 of the Revised Code, as that section existed when the | 801 |
determination was made, the county is a windfall county
under | 802 |
this division. Beginning in 2006, within ninety days after
the | 803 |
thirty-first day of July each year and the thirty-first day of
| 804 |
January of the following year, the commissioner, in the next
| 805 |
ensuing payment to be made under division (B)(1) of section
| 806 |
5739.21 of the Revised Code, shall reduce the amount to be
| 807 |
returned to each windfall county by the total amount of excess
| 808 |
taxes that would have been received by all windfall counties in
| 809 |
proportion to the total amount needed to compensate counties under
| 810 |
division (D) of this section.
| 811 |
(G) There is hereby created the county compensation tax study
| 816 |
committee. The committee shall consist of the following seven
| 817 |
members: the tax commissioner, three members of the senate
| 818 |
appointed by the president of the senate, and three members of the
| 819 |
house of representatives appointed by the speaker of the house of
| 820 |
representatives. The appointments shall be made not later than
| 821 |
January 31, 2007. The tax commissioner shall be the chairperson of
| 822 |
the committee and the department of taxation shall provide any
| 823 |
information and assistance that is required by the committee to
| 824 |
carry out its duties. The committee shall study the extent to
| 825 |
which each county has been impacted by the destination-based
| 826 |
sourcing requirements. Not later than June 30, 2007, the committee
| 827 |
shall issue a report of its findings and shall make
| 828 |
recommendations to the president of the senate and the speaker of
| 829 |
the house of representatives, at which time the committee shall
| 830 |
cease to exist.
| 831 |
(B) In any case where any county or transit authority has | 837 |
levied a tax or taxes pursuant to section 5741.021, 5741.022, or | 838 |
5741.023 of the Revised Code, the tax commissioner shall, within | 839 |
forty-five days after the end of each month, determine and certify | 840 |
to the director of budget and management the amount of the | 841 |
proceeds of such tax or taxes
from billings and assessments | 842 |
received during that month, or shown on tax returns or reports | 843 |
filed during that month, to be returned to the county or transit | 844 |
authority levying the tax or taxes, which amounts shall be | 845 |
determined in the manner provided in section 5739.21 of the | 846 |
Revised Code. The director of budget and management shall | 847 |
transfer, from the general revenue fund, to
the permissive tax | 848 |
distribution fund created by division (B)(1) of
section 4301.423 | 849 |
of the Revised Code and to the local sales tax
administrative | 850 |
fund created by division (C) of section 5739.21
of the Revised | 851 |
Code, the amounts certified by the tax
commissioner. The tax | 852 |
commissioner shall then, on or before the
twentieth day of the | 853 |
month in which such certification is made,
provide for payment of | 854 |
such respective amounts to the county
treasurer or to the fiscal | 855 |
officer of the transit authority
levying the tax or taxes. The | 856 |
amount transferred to the local
sales tax administrative fund is | 857 |
for use by the tax commissioner
in defraying costs the | 858 |
commissioner incurs in administering such
taxes levied by a | 859 |
county or
transit authority. | 860 |
(C) Of the revenue deposited into the state treasury from | 861 |
taxes paid under division (B) of section 5741.05 of the Revised | 862 |
Code, a percentage shall be distributed each fiscal year to all | 863 |
counties and transit authorities that levy a tax under section | 864 |
5739.021, 5739.023, or 5739.026 of the Revised Code. The | 865 |
percentage to be distributed each fiscal year shall be computed by | 866 |
dividing the amount described in division (C)(1) by the amount | 867 |
described in division (C)(2) of this section: | 868 |
(D) Each county and transit authority shall receive a | 877 |
quarterly
distribution each fiscal year from the revenue to be | 878 |
distributed
as provided in division (C) of this section. The | 879 |
amount of the
distribution for each such county and transit | 880 |
authority shall
equal one-fourth of a percentage of the revenue | 881 |
to be distributed in the fiscal
year under that division. The | 882 |
percentage shall be computed by
dividing the amount described in | 883 |
division (D)(1) by the amount
described in division (D)(2) of | 884 |
this section: | 885 |
Sec. 5741.05. (A) Except as
provided in division (B) of this | 893 |
section, aA seller that collects
the tax levied by
sections | 894 |
5741.02, 5741.021, 5741.022, or
5741.023 of the Revised
Code on | 895 |
transactions, other than sales of
titled motor vehicles,
titled | 896 |
watercraft, or titled outboard
motors, shall determine
under | 897 |
section 5739.033 or 5739.034 of the
Revised Code
the
jurisdiction | 898 |
for which to
collect the tax. A
vendor or seller of
motor | 899 |
vehicles, watercraft, or
outboard motors
required to be
titled in | 900 |
this state shall collect the tax levied
by section
5739.02 or | 901 |
5741.02 of the Revised Code and the
additional taxes
levied by | 902 |
division (A)(1) of section 5741.021,
division (A)(1) of
section | 903 |
5741.022, and division (A)(1) of
section 5741.023 of the
Revised | 904 |
Code for the consumer's county of
residence as provided in | 905 |
section 1548.06 and division (B) of
section 4505.06 of the | 906 |
Revised
Code. | 907 |
(3) Except as otherwise provided in division (B)(4) of this | 915 |
section, and notwithstanding sections 5741.02, 5741.021, 5741.022, | 916 |
and 5741.023 of the Revised Code, beginning January 1, 2008, a | 917 |
seller with total delivery
sales in this state in calendar year | 918 |
2007 and each calendar year
thereafter of less than five hundred | 919 |
thousand dollars may elect to
collect the tax due under this | 920 |
chapter at a rate equal to the sum
of the tax levied under | 921 |
section 5741.02 of the Revised Code and
the lowest combined rate | 922 |
of tax levied in any tax jurisdiction in
this state under | 923 |
sections 5741.021, 5741.022, and 5741.023 of the
Revised Code. | 924 |
(2) If a purchaser purchases tangible personal property from | 936 |
a seller permitted to collect use tax pursuant to division (B) of | 937 |
this section and pays the tax due under that division to the | 938 |
seller, no assessment may be made against the purchaser for | 939 |
additional tax due under section 5741.021, 5741.022, or 5741.023 | 940 |
of the Revised Code unless the purchaser subsequently removes the | 941 |
property from the tax jurisdiction in which the resident received | 942 |
the property to another tax jurisdiction with a higher tax rate. | 943 |
(3) Nothing in this section relieves a person that claims to | 944 |
be authorized to collect the tax as provided in division (B) of | 945 |
this section, but that is not so authorized, from liability for | 946 |
tax, penalties, interest, or additional charges imposed under this | 947 |
chapter for failure to collect the amount of tax lawfully due | 948 |
applying the situsing provisions of division (A) of this section. | 949 |
(D) A vendor or seller
is not responsible for collecting or | 950 |
remitting additional tax if a
consumer subsequently stores, uses, | 951 |
or consumes the tangible
personal property or service in another | 952 |
jurisdiction with a rate
of tax imposed by sections 5741.02, | 953 |
5741.021, 5741.022, or
5741.023 of the Revised Code that is higher | 954 |
than the amount
collected by the vendor or seller pursuant to | 955 |
Chapter 5739. or
5741. of the Revised Code. | 956 |
Section 3. That section 5739.24 of the Revised Code is hereby
| 960 |
repealed effective May 1, 2009. No payments or reductions in
| 961 |
payments required by division (D) of section 5739.24 of the
| 962 |
Revised Code shall be effected after May 1, 2009. No request for
| 963 |
an advance of the payment that, but for this act, would have been
| 964 |
made after May 1, 2009, shall be honored.
| 965 |
Section 5. That a vendor may source sales in the
manner | 969 |
prescribed by division (B)(1) of section 5739.033 of the
Revised | 970 |
Code, as amended by this act, before the effective date
specified | 971 |
in Section 4 of this act. A vendor that elects under this section | 972 |
to source sales in that manner before the effective date specified | 973 |
in Section 4 of this act shall begin sourcing sales in that manner | 974 |
on the first day of a month. Once a vendor sources sales in the | 975 |
manner so prescribed the vendor shall continue to source all sales | 976 |
described in that division as
so prescribed. | 977 |
Section 8. Section 5739.034 of the Revised Code is | 982 |
presented in
this act as a composite of the section as amended by | 983 |
both Am. Sub. H.B. 66 and Am. Sub. S.B. 26 of
the 126th General | 984 |
Assembly. The General Assembly, applying the
principle stated in | 985 |
division (B) of section 1.52 of the Revised
Code that amendments | 986 |
are to be harmonized if reasonably capable of
simultaneous | 987 |
operation, finds that the composite is the resulting
version of | 988 |
the section in effect prior to the effective date of
the section | 989 |
as presented in this act. | 990 |
Section 9. This act is hereby declared to be an emergency | 991 |
measure necessary for the immediate preservation of the public | 992 |
peace, health, and safety. The reason for such necessity is that | 993 |
destination-based sourcing is causing counties to lose sales tax | 994 |
revenues on sale orders made by residents of other counties, and | 995 |
an immediate conversion back to origin-based sourcing for | 996 |
intrastate sales is needed to prevent that loss. Therefore, this | 997 |
act shall go into immediate effect. | 998 |