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

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 429

Representative Gibbs 

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 

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A BILL

To amend sections 5703.70, 5739.03, 5739.033,

1

5739.034, 5739.24, 5741.03, and 5741.05 and to

2

enact section 5739.061 of the Revised Code and

3

later to repeal sections 5739.035, 5739.123,

4

5739.24, and 5740.10 of the Revised Code to

5

require vendors to utilize origin-based sourcing

6

for intrastate sales beginning January 1, 2010,

7

to discontinue compensation of impacted

8

counties for sales tax losses incurred under

9

destination-based sourcing, to compensate vendors

10

required to convert from destination-based

11

sourcing to origin-based sourcing, to permit a

12

vendor, when making a refund, to retain the amount

13

of the delivery charge and sales taxes

14

attributable to the charge, and to declare an

15

emergency.

16

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

Section 1. That sections 5703.70, 5739.03, 5739.033,	17
5739.034, 5739.24, 5741.03, and 5741.05 be amended and section	18
5739.061 of the Revised Code be enacted to read as follows:	19

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

(B) If the applicant neither requests a hearing nor provides	35
additional information to the tax commissioner within the time	36
prescribed by division (A) of this section, the commissioner shall	37
take no further action, and the refund or compensation amount or	38
compensation amount denied becomes final.	39

(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

(2) If the applicant does not request a hearing, but provides	48
additional information, within the time prescribed by division (A)	49
of this section, the commissioner shall review the information,	50
make such adjustments to the refund or compensation as the	51
commissioner finds proper, and issue a final determination	52
thereon.	53

(3) The commissioner shall serve a copy of the final	54
determination made under division (C)(1) or (2) of this section on	55
the applicant in the manner provided in section 5703.37 of the	56
Revised Code, and the decision is final, subject to appeal under	57
section 5717.02 of the Revised Code.	58

(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

(1) If the price is, at or prior to the provision of the	74
service or the delivery of possession of the thing sold to the	75
consumer, paid in currency passed from hand to hand by the	76
consumer or the consumer's agent to the vendor or the vendor's	77
agent, the vendor or the vendor's agent shall collect the tax with	78
and at the same time as the price;	79

(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

(i) A vendor that fraudulently fails to collect tax;

108

(ii) A vendor that solicits consumers to participate in the	109
unlawful claim of an exemption;	110

(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

(iv) A vendor that accepts an exemption certificate from a	119
consumer who claims a multiple points of use exemption under	120
division (D) of section 5739.033 of the Revised Code, if the item	121
purchased is tangible personal property, other than prewritten	122
computer software.	123

(2) The vendor shall maintain records, including exemption	124
certificates, of all sales on which a consumer has claimed an	125
exemption, and provide them to the tax commissioner on request.	126

(3) The tax commissioner may establish an identification	127
system whereby the commissioner issues an identification number to	128
a consumer that is exempt from payment of the tax. The consumer	129
must present the number to the vendor, if any sale is claimed to	130
be exempt as provided in this section.	131

(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

(5) Certificates need not be obtained nor provided where the	140
identity of the consumer is such that the transaction is never	141
subject to the tax imposed or where the item of tangible personal	142
property sold or the service provided is never subject to the tax	143
imposed, regardless of use, or when the sale is in interstate	144
commerce.	145

(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

(C) As used in this division, "contractee" means a person who	157
seeks to enter or enters into a contract or agreement with a	158
contractor or vendor for the construction of real property or for	159
the sale and installation onto real property of tangible personal	160
property.	161

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

This division does not apply to any contract or agreement	201
where the tax commissioner determines as a fact that a	202
certification under this division was made solely on the decision	203
or advice of the contractor or vendor.	204

(D) Notwithstanding division (B) of section 5739.01 of the	205
Revised Code, whenever the total rate of tax imposed under this	206
chapter is increased after the date after a construction contract	207
is entered into, the contractee shall reimburse the construction	208
contractor for any additional tax paid on tangible property	209
consumed or services received pursuant to the contract.	210

(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

The commissioner shall consider such additional evidence in	223
reaching the final determination on the assessment and petition	224
for reassessment.	225

(F) Whenever a vendor refunds to the consumer the full price,	226
minus any separately stated delivery charge, of an item of	227
tangible personal property on which the tax imposed under this	228
chapter has been paid, the vendor shall also refund the full	229
amount of the tax paid, minus the amount of tax attributable to	230
the delivery charge.	231

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

(B)(1) As used in this division:

258

(a) "Delivery sale" means the taxable sale of tangible	259
personal property or a service that is received by a consumer, or	260
a donee designated by the consumer, in a taxing jurisdiction that	261
is not the taxing jurisdiction in which the vendor has a fixed	262
place of business.	263

(b) "Agreement" has the same meaning as in section 5740.01 of	264
the Revised Code.	265

(c) "Governing board" has the same meaning as in section	266
5740.02 of the Revised Code.	267

(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

(3) Except as otherwise provided in divisions (B)(4) and (5)	276
of this section, a vendor with total delivery sales within this	277
state in prior calendar years, beginning with calendar year 2007,	278
of less than five hundred thousand dollars may situs its sales	279
under section 5739.035 of the Revised Code.	280

(4) Once a vendor has total delivery sales in this state of	281
five hundred thousand dollars or more for a prior calendar year,	282
the vendor shall source its sales under divisions (C) to (I) of	283
this section and shall continue to source its sales under those	284
divisions regardless of the amount of the vendor's total delivery	285
sales in future years.	286

(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

(a) The vendor receives the order in this state and the	296
consumer receives the property or goods in this state;	297

(b) The location where the consumer receives the property or	298
goods is determined under division (C)(2), (3), or (4) of this	299
section; and	300

(c) The record-keeping system used by the vendor to calculate	301
the tax imposed captures the location where the order is received	302
at the time the order is received.	303

(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

(C) Except for sales, other than leases, of titled motor	341
vehicles, titled watercraft, or titled outboard motors as provided	342
in section 5741.05 of the Revised Code, or as otherwise provided	343
in this section and section 5739.034 of the Revised Code, all	344
sales shall be sourced as follows:	345

(1) If the consumer or a donee designated by the consumer	346
receives tangible personal property or a service at a vendor's	347
place of business, the sale shall be sourced to that place of	348
business.	349

(2) When the tangible personal property or service is not	350
received at a vendor's place of business, the sale shall be	351
sourced to the location known to the vendor where the consumer or	352
the donee designated by the consumer receives the tangible	353
personal property or service, including the location indicated by	354
instructions for delivery to the consumer or the consumer's donee.	355

(3) If divisions (C)(1) and (2) of this section do not apply,	356
the sale shall be sourced to the location indicated by an address	357
for the consumer that is available from the vendor's business	358
records that are maintained in the ordinary course of the	359
vendor's business, when use of that address does not constitute	360
bad faith.	361

(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

(6) As used in division (C) of this section, "receive" means	375
taking possession of tangible personal property or making first	376
use of a service. "Receive" does not include possession by a	377
shipping company on behalf of a consumer.	378

(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

(c) The exemption certificate claiming multiple points of use	405
shall remain in effect for all future sales by the vendor to the	406
business consumer until it is revoked in writing by the business	407
consumer, except as to the business consumer's specific	408
apportionment of a subsequent sale under division (D)(1)(b) of	409
this section and the facts existing at the time of the sale.	410

(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

(4) Nothing in this section shall limit a person's obligation	437
for sales or use tax to any state in which a digital good,	438
computer software, or service is concurrently available for use,	439
nor limit a person's ability under local, state, or federal law,	440
to claim a credit for sales or use taxes legally due and paid to	441
other jurisdictions.	442

(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

(F)(1) Notwithstanding divisions (C)(1) to (5) of this	451
section, the consumer of direct mail that is not a holder of a	452
direct payment permit shall provide to the vendor in conjunction	453
with the sale either an exemption certificate claiming direct mail	454
prescribed by the tax commissioner, or information to show the	455
jurisdictions to which the direct mail is delivered to recipients.	456

(2) Upon receipt of such exemption certificate, the vendor is	457
relieved of all obligations to collect, pay, or remit the	458
applicable tax and the consumer is obligated to pay that tax on a	459
direct pay basis. An exemption certificate claiming direct mail	460
shall remain in effect for all future sales of direct mail by the	461
vendor to the consumer until it is revoked in writing.	462

(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

(5) If a consumer of direct mail provides the vendor with	478
documentation of direct payment authority, the consumer shall not	479
be required to provide an exemption certificate claiming direct	480
mail or delivery information to the vendor.	481

(G) If the vendor provides lodging to transient guests as	482
specified in division (B)(2) of section 5739.01 of the Revised	483
Code, the sale shall be sourced to the location where the lodging	484
is located.	485

(H)(1) As used in this division and division (I) of this	486
section, "transportation equipment" means any of the following:	487

(a) Locomotives and railcars that are utilized for the	488
carriage of persons or property in interstate commerce.	489

(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

(c) Aircraft that are operated by air carriers authorized and	498
certificated by the United States department of transportation or	499
another federal authority to engage in the carriage of persons or	500
property in interstate or foreign commerce.	501

(d) Containers designed for use on and component parts	502
attached to or secured on the items set forth in division	503
(H)(1)(a), (b), or (c) of this section.	504

(2) A sale, lease, or rental of transportation equipment	505
shall be sourced pursuant to division (C) of this section.	506

(I)(1) A lease or rental of tangible personal property that	507
does not require recurring periodic payments shall be sourced	508
pursuant to division (C) of this section.	509

(2) A lease or rental of tangible personal property that	510
requires recurring periodic payments shall be sourced as follows:	511

(a) In the case of a motor vehicle, other than a motor	512
vehicle that is transportation equipment, or an aircraft, other	513
than an aircraft that is transportation equipment, such lease or	514
rental shall be sourced as follows:	515

(i) An accelerated tax payment on a lease or rental taxed	516
pursuant to division (A)(2) of section 5739.02 of the Revised Code	517
shall be sourced to the primary property location at the time the	518
lease or rental is consummated. Any subsequent taxable charges on	519
the lease or rental shall be sourced to the primary property	520
location for the period in which the charges are incurred.	521

(ii) For a lease or rental taxed pursuant to division (A)(3)	522
of section 5739.02 of the Revised Code, each lease or rental	523
installment shall be sourced to the primary property location for	524
the period covered by the installment.	525

(b) In the case of a lease or rental of all other tangible	526
personal property, other than transportation equipment, such lease	527
or rental shall be sourced as follows:	528

(i) An accelerated tax payment on a lease or rental that is	529
taxed pursuant to division (A)(2) of section 5739.02 of the	530
Revised Code shall be sourced pursuant to division (C) of this	531
section at the time the lease or rental is consummated. Any	532
subsequent taxable charges on the lease or rental shall be sourced	533
to the primary property location for the period in which the	534
charges are incurred.	535

(ii) For a lease or rental that is taxed pursuant to division	536
(A)(3) of section 5739.02 of the Revised Code, the initial lease	537
or rental installment shall be sourced pursuant to division (C) of	538
this section. Each subsequent installment shall be sourced to the	539
primary property location for the period covered by the	540
installment.	541

(3) As used in division (I) of this section, "primary	542
property location" means an address for tangible personal property	543
provided by the lessee or renter that is available to the lessor	544
or owner from its records maintained in the ordinary course of	545
business, when use of that address does not constitute bad faith.	546

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

547

(1) "Air-to-ground radiotelephone service" means a radio	548
service, as defined in 47 C.F.R. 22.99, in which common carriers	549
are authorized to offer and provide radio telecommunications	550
service for hire to subscribers in aircraft.	551

(2) "Call-by-call basis" means any method of charging for	552
telecommunications services where the price is measured by	553
individual calls.	554

(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

(4) "End user" means the person who utilizes the	564
telecommunications service. In the case of a person other than an	565
individual, "end user" means the individual who utilizes the	566
service on behalf of the person.	567

(5) "Home service provider" has the same meaning as in the	568
"Mobile Telecommunications Sourcing Act," Pub. L. No. 106-252, 114	569
Stat. 631 (2000), 4 U.S.C. 124(5), as amended.	570

(6) "Place of primary use" means the street address	571
representative of where the customer's use of the	572
telecommunications service primarily occurs, which must be the	573
residential street address or the primary business street address	574
of the customer. In the case of mobile telecommunications	575
services, "place of primary use" must be within the licensed	576
service area of the home service provider.	577

(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

(8) "Prepaid calling service" and "prepaid wireless calling	588
service" have the same meanings as in section 5739.01 of the	589
Revised Code.	590

(9) "Service address" means:

591

(a) The location of the telecommunications equipment to which	592
a customer's call is charged and from which the call originates or	593
terminates, regardless of where the call is billed or paid.	594

(b) If the location in division (A)(9)(a) of this section is	595
not known, "service address" means the origination point of the	596
signal of the telecommunications service first identified by	597
either the seller's telecommunications system or in information	598
received by the seller from its service provider, where the system	599
used to transport such signals is not that of the seller.	600

(c) If the locations in divisions (A)(9)(a) and (b) of this	601
section are not known, "service address" means the location of the	602
customer's place of primary use.	603

(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

(D) Except for the telecommunications services described in	625
division (E) of this section, a sale of telecommunications	626
services sold on a basis other than a call-by-call basis shall be	627
sourced to the customer's place of primary use.	628

(E) The sale of the following telecommunications services	629
shall be sourced to each level of taxing jurisdiction, as follows:	630

(1) A sale of mobile telecommunications service, other than	631
air-to-ground radiotelephone service and prepaid calling service,	632
shall be sourced to the customer's place of primary use as	633
required by the Mobile Telecommunications Sourcing Act.	634

(2) A sale of post-paid calling service shall be sourced to	635
the origination point of the telecommunications signal as first	636
identified by the service provider's telecommunications system, or	637
information received by the seller from its service provider,	638
where the system used to transport such signals is not that of the	639
seller.	640

(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

(4) A sale of a private communication service shall be	650
sourced as follows:	651

(a) Service for a separate charge related to a customer	652
channel termination point shall be sourced to each level of	653
jurisdiction in which the customer channel termination point is	654
located;	655

(b) Service where all customer channel termination points are	656
located entirely within one jurisdiction or level of jurisdiction	657
shall be sourced in the jurisdiction in which the customer channel	658
termination points are located;	659

(c) Service for segments of a channel between two customer	660
channel termination points located in different jurisdictions and	661
which segments of a channel are separately charged shall be	662
sourced fifty per cent in each level of jurisdiction in which the	663
customer channel termination points are located;	664

(d) Service for segments of a channel located in more than	665
one jurisdiction or level of jurisdiction and which segments are	666
not separately billed shall be sourced in each jurisdiction based	667
on the percentage determined by dividing the number of customer	668
channel termination points in the jurisdiction by the total number	669
of customer channel termination points.	670

Sec. 5739.061.  (A) As used in this section, "origin-based	671
sourcing requirements" means the manner in which intrastate sales	672
are to be sourced under division (B)(1) of section 5739.033 of the	673
Revised Code.	674

(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

(D) The compensation provided under this section shall not	704
reduce the amount required to be returned to counties and transit	705
authorities under section 5739.21 of the Revised Code.	706

Sec. 5739.24.  (A) As used in this section:

707

(1) "Destination-based sourcing requirements" has the same	708
meaning as in section 5739.123 of the Revised Code.	709

(2) "Impacted county" means a county having a population of	710
less than seventy-five thousand as of the decennial census of 2000	711
taken by the United States census bureau.	712

(3) "Master account holder" means a person that holds more	713
than one vendor's license under division (A) of section 5739.17 of	714
the Revised Code, operates in multiple tax jurisdictions under the	715
same ownership, and files or is required to file a consolidated	716
return under section 5739.12 of the Revised Code.	717

(4) "Tax jurisdiction" means a county or, if applicable, the	718
portion of a county in which a transit authority has territory.	719

(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

(C)(1) Beginning in 2006 and ending April 17, 2009, within	747
seventy-five days after the thirty-first day of July each year and	748
the thirty-first day of January of the following year, the tax	749
commissioner shall determine for each county both of the	750
following:	751

(a) The amount of taxes reported on returns filed by all	752
vendors licensed under division (A) of section 5739.17 of the	753
Revised Code that were levied by sections 5739.021 and 5739.026 of	754
the Revised Code and were reported as due in accordance with the	755
destination-based sourcing requirements;	756

(b) The amount of taxes levied by those sections that would	757
have been paid to the county by vendors licensed under division	758
(A) of section 5739.17 of the Revised Code if the taxes had been	759
collected in accordance with section 5739.035 of the Revised Code,	760
as that section exists when the determination is made.	761

The commissioner may make any adjustments that are necessary	762
to account for delinquent tax returns or reports.	763

(2) In making the determination required by division (C)(1)	764
of this section, the commissioner shall use the lesser of the	765
county's tax rate in effect as of January 1, 2006, or the actual	766
tax rate in effect for the six-month period for which the	767
compensation was calculated.	768

(3) The commissioner also shall calculate the percentage	769
difference between the amounts determined under divisions	770
(C)(1)(a) and (b) of this section by using a fraction, with the	771
amount determined under division (C)(1)(a) of this section in the	772
numerator, and the amount determined under division (C)(1)(b) of	773
this section in the denominator.	774

(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

(F) The commissioner shall make available to the public the	812
determinations made under division (C) of this section, but any	813
data obtained from taxpayers under this section or that would	814
identify those taxpayers shall remain confidential.	815

(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

Sec. 5741.03.  (A) One hundred per cent of all money	832
deposited into the state treasury under sections 5741.01 to	833
5741.22 of the Revised Code that is not required to be distributed	834
as provided in division (B) or (C) of this section shall be	835
credited to the general revenue fund.	836

(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

(1) The total sales and use tax revenue distributed to	869
counties and transit authorities in the calendar year that ended	870
in the preceding fiscal year;	871

(2) The sum of the total sales and use tax revenue	872
distributed to such counties and transit authorities in that	873
calendar year plus the total revenue collected in that calendar	874
year from the taxes levied under sections 5739.02 and 5741.02 of	875
the Revised Code.	876

(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

(1) The total sales and use tax revenue distributed to the	886
county or transit authority under division (B) of section 5739.21	887
of the Revised Code in the calendar year that ended in the	888
preceding fiscal year;	889

(2) The total sales and use tax revenue distributed to all	890
counties and transit authorities under division (B) of section	891
5739.21 of the Revised Code in that calendar year.	892

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

(B)(1) Divisions (B) and (C) of this section apply only if	908
the tax commissioner makes the certification under section 5740.10	909
of the Revised Code.	910

(2) For the purposes of this division and division (C) of	911
this section, "delivery sale" has the same meaning as in section	912
5739.033 of the Revised Code, and "tax jurisdiction" has the same	913
meaning as in section 5739.24 of the Revised Code.	914

(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

(4) Once a seller has total delivery sales in this state of	925
five hundred thousand dollars or more for a prior calendar year,	926
the seller shall source its sales pursuant to division (A) of	927
this section regardless of the amount of the seller's total	928
delivery sales in future years.	929

(C)(1) In each sale by a seller permitted to collect use tax	930
under division (B) of this section, the seller shall clearly	931
indicate on each invoice or other similar document provided to the	932
purchaser at the time of the sale that the seller is authorized to	933
collect use tax at the rate prescribed in division (B)(3) of this	934
section.	935

(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 2. That existing sections 5703.70, 5739.03, 5739.033,	957
5739.034, 5739.24, 5741.03, and 5741.05 of the Revised Code are	958
hereby repealed.	959

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 4.  That the amendment by this act of sections	966
5703.70, 5739.033, 5739.034, 5741.03, and 5741.05 of the Revised	967
Code shall take effect January 1, 2010.	968

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 6. That sections 5739.035, 5739.123, and 5740.10 of	978
the Revised Code are hereby repealed effective January 1, 2010.	979

Section 7. That the amendment by this act of section 5739.03	980
of the Revised Code shall take effect the first day of the month	981
that begins after the effective date of this section.	982

Section 8.  Section 5739.034 of the Revised Code is	983
presented in this act as a composite of the section as amended by	984
both Am. Sub. H.B. 66 and Am. Sub. S.B. 26 of the 126th General	985
Assembly. The General Assembly, applying the principle stated in	986
division (B) of section 1.52 of the Revised Code that amendments	987
are to be harmonized if reasonably capable of simultaneous	988
operation, finds that the composite is the resulting version of	989
the section in effect prior to the effective date of the section	990
as presented in this act.	991

Section 9. This act is hereby declared to be an emergency	992
measure necessary for the immediate preservation of the public	993
peace, health, and safety. The reason for such necessity is that	994
destination-based sourcing is causing counties to lose sales tax	995
revenues on sale orders made by residents of other counties, and	996
an immediate conversion back to origin-based sourcing for	997
intrastate sales is needed to prevent that loss. Therefore, this	998
act shall go into immediate effect.	999