As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 394

Representative Maag 

Cosponsors: Representatives Boose, Adams, J., Brenner, Combs, Letson 

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A BILL

To amend section 5739.02 of the Revised Code to

1

exempt from sales and use taxes the sale or use of

2

investment metal bullion and coins.

3

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

Section 1.  That section 5739.02 of the Revised Code be	4
amended to read as follows:	5

Sec. 5739.02.  For the purpose of providing revenue with	6
which to meet the needs of the state, for the use of the general	7
revenue fund of the state, for the purpose of securing a thorough	8
and efficient system of common schools throughout the state, for	9
the purpose of affording revenues, in addition to those from	10
general property taxes, permitted under constitutional	11
limitations, and from other sources, for the support of local	12
governmental functions, and for the purpose of reimbursing the	13
state for the expense of administering this chapter, an excise tax	14
is hereby levied on each retail sale made in this state.	15

(A)(1) The tax shall be collected as provided in section	16
5739.025 of the Revised Code. The rate of the tax shall be five	17
and one-half per cent. The tax applies and is collectible when the	18
sale is made, regardless of the time when the price is paid or	19
delivered.	20

(2) In the case of the lease or rental, with a fixed term of	21
more than thirty days or an indefinite term with a minimum period	22
of more than thirty days, of any motor vehicles designed by the	23
manufacturer to carry a load of not more than one ton, watercraft,	24
outboard motor, or aircraft, or of any tangible personal property,	25
other than motor vehicles designed by the manufacturer to carry a	26
load of more than one ton, to be used by the lessee or renter	27
primarily for business purposes, the tax shall be collected by the	28
vendor at the time the lease or rental is consummated and shall be	29
calculated by the vendor on the basis of the total amount to be	30
paid by the lessee or renter under the lease agreement. If the	31
total amount of the consideration for the lease or rental includes	32
amounts that are not calculated at the time the lease or rental is	33
executed, the tax shall be calculated and collected by the vendor	34
at the time such amounts are billed to the lessee or renter. In	35
the case of an open-end lease or rental, the tax shall be	36
calculated by the vendor on the basis of the total amount to be	37
paid during the initial fixed term of the lease or rental, and for	38
each subsequent renewal period as it comes due. As used in this	39
division, "motor vehicle" has the same meaning as in section	40
4501.01 of the Revised Code, and "watercraft" includes an outdrive	41
unit attached to the watercraft.	42

A lease with a renewal clause and a termination penalty or	43
similar provision that applies if the renewal clause is not	44
exercised is presumed to be a sham transaction. In such a case,	45
the tax shall be calculated and paid on the basis of the entire	46
length of the lease period, including any renewal periods, until	47
the termination penalty or similar provision no longer applies.	48
The taxpayer shall bear the burden, by a preponderance of the	49
evidence, that the transaction or series of transactions is not a	50
sham transaction.	51

(3) Except as provided in division (A)(2) of this section, in	52
the case of a sale, the price of which consists in whole or in	53
part of the lease or rental of tangible personal property, the tax	54
shall be measured by the installments of that lease or rental.	55

(4) In the case of a sale of a physical fitness facility	56
service or recreation and sports club service, the price of which	57
consists in whole or in part of a membership for the receipt of	58
the benefit of the service, the tax applicable to the sale shall	59
be measured by the installments thereof.	60

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

61

(1) Sales to the state or any of its political subdivisions,	62
or to any other state or its political subdivisions if the laws of	63
that state exempt from taxation sales made to this state and its	64
political subdivisions;	65

(2) Sales of food for human consumption off the premises	66
where sold;	67

(3) Sales of food sold to students only in a cafeteria,	68
dormitory, fraternity, or sorority maintained in a private,	69
public, or parochial school, college, or university;	70

(4) Sales of newspapers and of magazine subscriptions and	71
sales or transfers of magazines distributed as controlled	72
circulation publications;	73

(5) The furnishing, preparing, or serving of meals without	74
charge by an employer to an employee provided the employer records	75
the meals as part compensation for services performed or work	76
done;	77

(6) Sales of motor fuel upon receipt, use, distribution, or	78
sale of which in this state a tax is imposed by the law of this	79
state, but this exemption shall not apply to the sale of motor	80
fuel on which a refund of the tax is allowable under division (A)	81
of section 5735.14 of the Revised Code; and the tax commissioner	82
may deduct the amount of tax levied by this section applicable to	83
the price of motor fuel when granting a refund of motor fuel tax	84
pursuant to division (A) of section 5735.14 of the Revised Code	85
and shall cause the amount deducted to be paid into the general	86
revenue fund of this state;	87

(7) Sales of natural gas by a natural gas company, of water	88
by a water-works company, or of steam by a heating company, if in	89
each case the thing sold is delivered to consumers through pipes	90
or conduits, and all sales of communications services by a	91
telegraph company, all terms as defined in section 5727.01 of the	92
Revised Code, and sales of electricity delivered through wires;	93

(8) Casual sales by a person, or auctioneer employed directly	94
by the person to conduct such sales, except as to such sales of	95
motor vehicles, watercraft or outboard motors required to be	96
titled under section 1548.06 of the Revised Code, watercraft	97
documented with the United States coast guard, snowmobiles, and	98
all-purpose vehicles as defined in section 4519.01 of the Revised	99
Code;	100

(9)(a) Sales of services or tangible personal property, other	101
than motor vehicles, mobile homes, and manufactured homes, by	102
churches, organizations exempt from taxation under section	103
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	104
organizations operated exclusively for charitable purposes as	105
defined in division (B)(12) of this section, provided that the	106
number of days on which such tangible personal property or	107
services, other than items never subject to the tax, are sold does	108
not exceed six in any calendar year, except as otherwise provided	109
in division (B)(9)(b) of this section. If the number of days on	110
which such sales are made exceeds six in any calendar year, the	111
church or organization shall be considered to be engaged in	112
business and all subsequent sales by it shall be subject to the	113
tax. In counting the number of days, all sales by groups within a	114
church or within an organization shall be considered to be sales	115
of that church or organization.	116

(b) The limitation on the number of days on which tax-exempt	117
sales may be made by a church or organization under division	118
(B)(9)(a) of this section does not apply to sales made by student	119
clubs and other groups of students of a primary or secondary	120
school, or a parent-teacher association, booster group, or similar	121
organization that raises money to support or fund curricular or	122
extracurricular activities of a primary or secondary school.	123

(c) Divisions (B)(9)(a) and (b) of this section do not apply	124
to sales by a noncommercial educational radio or television	125
broadcasting station.	126

(10) Sales not within the taxing power of this state under	127
the Constitution of the United States;	128

(11) Except for transactions that are sales under division	129
(B)(3)(r) of section 5739.01 of the Revised Code, the	130
transportation of persons or property, unless the transportation	131
is by a private investigation and security service;	132

(12) Sales of tangible personal property or services to	133
churches, to organizations exempt from taxation under section	134
501(c)(3) of the Internal Revenue Code of 1986, and to any other	135
nonprofit organizations operated exclusively for charitable	136
purposes in this state, no part of the net income of which inures	137
to the benefit of any private shareholder or individual, and no	138
substantial part of the activities of which consists of carrying	139
on propaganda or otherwise attempting to influence legislation;	140
sales to offices administering one or more homes for the aged or	141
one or more hospital facilities exempt under section 140.08 of the	142
Revised Code; and sales to organizations described in division (D)	143
of section 5709.12 of the Revised Code.	144

"Charitable purposes" means the relief of poverty; the	145
improvement of health through the alleviation of illness, disease,	146
or injury; the operation of an organization exclusively for the	147
provision of professional, laundry, printing, and purchasing	148
services to hospitals or charitable institutions; the operation of	149
a home for the aged, as defined in section 5701.13 of the Revised	150
Code; the operation of a radio or television broadcasting station	151
that is licensed by the federal communications commission as a	152
noncommercial educational radio or television station; the	153
operation of a nonprofit animal adoption service or a county	154
humane society; the promotion of education by an institution of	155
learning that maintains a faculty of qualified instructors,	156
teaches regular continuous courses of study, and confers a	157
recognized diploma upon completion of a specific curriculum; the	158
operation of a parent-teacher association, booster group, or	159
similar organization primarily engaged in the promotion and	160
support of the curricular or extracurricular activities of a	161
primary or secondary school; the operation of a community or area	162
center in which presentations in music, dramatics, the arts, and	163
related fields are made in order to foster public interest and	164
education therein; the production of performances in music,	165
dramatics, and the arts; or the promotion of education by an	166
organization engaged in carrying on research in, or the	167
dissemination of, scientific and technological knowledge and	168
information primarily for the public.	169

Nothing in this division shall be deemed to exempt sales to	170
any organization for use in the operation or carrying on of a	171
trade or business, or sales to a home for the aged for use in the	172
operation of independent living facilities as defined in division	173
(A) of section 5709.12 of the Revised Code.	174

(13) Building and construction materials and services sold to	175
construction contractors for incorporation into a structure or	176
improvement to real property under a construction contract with	177
this state or a political subdivision of this state, or with the	178
United States government or any of its agencies; building and	179
construction materials and services sold to construction	180
contractors for incorporation into a structure or improvement to	181
real property that are accepted for ownership by this state or any	182
of its political subdivisions, or by the United States government	183
or any of its agencies at the time of completion of the structures	184
or improvements; building and construction materials sold to	185
construction contractors for incorporation into a horticulture	186
structure or livestock structure for a person engaged in the	187
business of horticulture or producing livestock; building	188
materials and services sold to a construction contractor for	189
incorporation into a house of public worship or religious	190
education, or a building used exclusively for charitable purposes	191
under a construction contract with an organization whose purpose	192
is as described in division (B)(12) of this section; building	193
materials and services sold to a construction contractor for	194
incorporation into a building under a construction contract with	195
an organization exempt from taxation under section 501(c)(3) of	196
the Internal Revenue Code of 1986 when the building is to be used	197
exclusively for the organization's exempt purposes; building and	198
construction materials sold for incorporation into the original	199
construction of a sports facility under section 307.696 of the	200
Revised Code; building and construction materials and services	201
sold to a construction contractor for incorporation into real	202
property outside this state if such materials and services, when	203
sold to a construction contractor in the state in which the real	204
property is located for incorporation into real property in that	205
state, would be exempt from a tax on sales levied by that state;	206
and, until one calendar year after the construction of a	207
convention center that qualifies for property tax exemption under	208
section 5709.084 of the Revised Code is completed, building and	209
construction materials and services sold to a construction	210
contractor for incorporation into the real property comprising	211
that convention center;	212

(14) Sales of ships or vessels or rail rolling stock used or	213
to be used principally in interstate or foreign commerce, and	214
repairs, alterations, fuel, and lubricants for such ships or	215
vessels or rail rolling stock;	216

(15) Sales to persons primarily engaged in any of the	217
activities mentioned in division (B)(42)(a), (g), or (h) of this	218
section, to persons engaged in making retail sales, or to persons	219
who purchase for sale from a manufacturer tangible personal	220
property that was produced by the manufacturer in accordance with	221
specific designs provided by the purchaser, of packages, including	222
material, labels, and parts for packages, and of machinery,	223
equipment, and material for use primarily in packaging tangible	224
personal property produced for sale, including any machinery,	225
equipment, and supplies used to make labels or packages, to	226
prepare packages or products for labeling, or to label packages or	227
products, by or on the order of the person doing the packaging, or	228
sold at retail. "Packages" includes bags, baskets, cartons,	229
crates, boxes, cans, bottles, bindings, wrappings, and other	230
similar devices and containers, but does not include motor	231
vehicles or bulk tanks, trailers, or similar devices attached to	232
motor vehicles. "Packaging" means placing in a package. Division	233
(B)(15) of this section does not apply to persons engaged in	234
highway transportation for hire.	235

(16) Sales of food to persons using supplemental nutrition	236
assistance program benefits to purchase the food. As used in this	237
division, "food" has the same meaning as in 7 U.S.C. 2012 and	238
federal regulations adopted pursuant to the Food and Nutrition Act	239
of 2008.	240

(17) Sales to persons engaged in farming, agriculture,	241
horticulture, or floriculture, of tangible personal property for	242
use or consumption primarily in the production by farming,	243
agriculture, horticulture, or floriculture of other tangible	244
personal property for use or consumption primarily in the	245
production of tangible personal property for sale by farming,	246
agriculture, horticulture, or floriculture; or material and parts	247
for incorporation into any such tangible personal property for use	248
or consumption in production; and of tangible personal property	249
for such use or consumption in the conditioning or holding of	250
products produced by and for such use, consumption, or sale by	251
persons engaged in farming, agriculture, horticulture, or	252
floriculture, except where such property is incorporated into real	253
property;	254

(18) Sales of drugs for a human being that may be dispensed	255
only pursuant to a prescription; insulin as recognized in the	256
official United States pharmacopoeia; urine and blood testing	257
materials when used by diabetics or persons with hypoglycemia to	258
test for glucose or acetone; hypodermic syringes and needles when	259
used by diabetics for insulin injections; epoetin alfa when	260
purchased for use in the treatment of persons with medical	261
disease; hospital beds when purchased by hospitals, nursing homes,	262
or other medical facilities; and medical oxygen and medical	263
oxygen-dispensing equipment when purchased by hospitals, nursing	264
homes, or other medical facilities;	265

(19) Sales of prosthetic devices, durable medical equipment	266
for home use, or mobility enhancing equipment, when made pursuant	267
to a prescription and when such devices or equipment are for use	268
by a human being.	269

(20) Sales of emergency and fire protection vehicles and	270
equipment to nonprofit organizations for use solely in providing	271
fire protection and emergency services, including trauma care and	272
emergency medical services, for political subdivisions of the	273
state;	274

(21) Sales of tangible personal property manufactured in this	275
state, if sold by the manufacturer in this state to a retailer for	276
use in the retail business of the retailer outside of this state	277
and if possession is taken from the manufacturer by the purchaser	278
within this state for the sole purpose of immediately removing the	279
same from this state in a vehicle owned by the purchaser;	280

(22) Sales of services provided by the state or any of its	281
political subdivisions, agencies, instrumentalities, institutions,	282
or authorities, or by governmental entities of the state or any of	283
its political subdivisions, agencies, instrumentalities,	284
institutions, or authorities;	285

(23) Sales of motor vehicles to nonresidents of this state	286
under the circumstances described in division (B) of section	287
5739.029 of the Revised Code;	288

(24) Sales to persons engaged in the preparation of eggs for	289
sale of tangible personal property used or consumed directly in	290
such preparation, including such tangible personal property used	291
for cleaning, sanitizing, preserving, grading, sorting, and	292
classifying by size; packages, including material and parts for	293
packages, and machinery, equipment, and material for use in	294
packaging eggs for sale; and handling and transportation equipment	295
and parts therefor, except motor vehicles licensed to operate on	296
public highways, used in intraplant or interplant transfers or	297
shipment of eggs in the process of preparation for sale, when the	298
plant or plants within or between which such transfers or	299
shipments occur are operated by the same person. "Packages"	300
includes containers, cases, baskets, flats, fillers, filler flats,	301
cartons, closure materials, labels, and labeling materials, and	302
"packaging" means placing therein.	303

(25)(a) Sales of water to a consumer for residential use,	304
except the sale of bottled water, distilled water, mineral water,	305
carbonated water, or ice;	306

(b) Sales of water by a nonprofit corporation engaged	307
exclusively in the treatment, distribution, and sale of water to	308
consumers, if such water is delivered to consumers through pipes	309
or tubing.	310

(26) Fees charged for inspection or reinspection of motor	311
vehicles under section 3704.14 of the Revised Code;	312

(27) Sales to persons licensed to conduct a food service	313
operation pursuant to section 3717.43 of the Revised Code, of	314
tangible personal property primarily used directly for the	315
following:	316

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

317

(b) To preserve food that has been or will be prepared for	318
human consumption for sale by the food service operator, not	319
including tangible personal property used to display food for	320
selection by the consumer;	321

(c) To clean tangible personal property used to prepare or	322
serve food for human consumption for sale.	323

(28) Sales of animals by nonprofit animal adoption services	324
or county humane societies;	325

(29) Sales of services to a corporation described in division	326
(A) of section 5709.72 of the Revised Code, and sales of tangible	327
personal property that qualifies for exemption from taxation under	328
section 5709.72 of the Revised Code;	329

(30) Sales and installation of agricultural land tile, as	330
defined in division (B)(5)(a) of section 5739.01 of the Revised	331
Code;	332

(31) Sales and erection or installation of portable grain	333
bins, as defined in division (B)(5)(b) of section 5739.01 of the	334
Revised Code;	335

(32) The sale, lease, repair, and maintenance of, parts for,	336
or items attached to or incorporated in, motor vehicles that are	337
primarily used for transporting tangible personal property	338
belonging to others by a person engaged in highway transportation	339
for hire, except for packages and packaging used for the	340
transportation of tangible personal property;	341

(33) Sales to the state headquarters of any veterans'	342
organization in this state that is either incorporated and issued	343
a charter by the congress of the United States or is recognized by	344
the United States veterans administration, for use by the	345
headquarters;	346

(34) Sales to a telecommunications service vendor, mobile	347
telecommunications service vendor, or satellite broadcasting	348
service vendor of tangible personal property and services used	349
directly and primarily in transmitting, receiving, switching, or	350
recording any interactive, one- or two-way electromagnetic	351
communications, including voice, image, data, and information,	352
through the use of any medium, including, but not limited to,	353
poles, wires, cables, switching equipment, computers, and record	354
storage devices and media, and component parts for the tangible	355
personal property. The exemption provided in this division shall	356
be in lieu of all other exemptions under division (B)(42)(a) or	357
(n) of this section to which the vendor may otherwise be entitled,	358
based upon the use of the thing purchased in providing the	359
telecommunications, mobile telecommunications, or satellite	360
broadcasting service.	361

(35)(a) Sales where the purpose of the consumer is to use or	362
consume the things transferred in making retail sales and	363
consisting of newspaper inserts, catalogues, coupons, flyers, gift	364
certificates, or other advertising material that prices and	365
describes tangible personal property offered for retail sale.	366

(b) Sales to direct marketing vendors of preliminary	367
materials such as photographs, artwork, and typesetting that will	368
be used in printing advertising material; of printed matter that	369
offers free merchandise or chances to win sweepstake prizes and	370
that is mailed to potential customers with advertising material	371
described in division (B)(35)(a) of this section; and of equipment	372
such as telephones, computers, facsimile machines, and similar	373
tangible personal property primarily used to accept orders for	374
direct marketing retail sales.	375

(c) Sales of automatic food vending machines that preserve	376
food with a shelf life of forty-five days or less by refrigeration	377
and dispense it to the consumer.	378

For purposes of division (B)(35) of this section, "direct	379
marketing" means the method of selling where consumers order	380
tangible personal property by United States mail, delivery	381
service, or telecommunication and the vendor delivers or ships the	382
tangible personal property sold to the consumer from a warehouse,	383
catalogue distribution center, or similar fulfillment facility by	384
means of the United States mail, delivery service, or common	385
carrier.	386

(36) Sales to a person engaged in the business of	387
horticulture or producing livestock of materials to be	388
incorporated into a horticulture structure or livestock structure;	389

(37) Sales of personal computers, computer monitors, computer	390
keyboards, modems, and other peripheral computer equipment to an	391
individual who is licensed or certified to teach in an elementary	392
or a secondary school in this state for use by that individual in	393
preparation for teaching elementary or secondary school students;	394

(38) Sales to a professional racing team of any of the	395
following:	396

(a) Motor racing vehicles;

397

(b) Repair services for motor racing vehicles;

398

(c) Items of property that are attached to or incorporated in	399
motor racing vehicles, including engines, chassis, and all other	400
components of the vehicles, and all spare, replacement, and	401
rebuilt parts or components of the vehicles; except not including	402
tires, consumable fluids, paint, and accessories consisting of	403
instrumentation sensors and related items added to the vehicle to	404
collect and transmit data by means of telemetry and other forms of	405
communication.	406

(39) Sales of used manufactured homes and used mobile homes,	407
as defined in section 5739.0210 of the Revised Code, made on or	408
after January 1, 2000;	409

(40) Sales of tangible personal property and services to a	410
provider of electricity used or consumed directly and primarily in	411
generating, transmitting, or distributing electricity for use by	412
others, including property that is or is to be incorporated into	413
and will become a part of the consumer's production, transmission,	414
or distribution system and that retains its classification as	415
tangible personal property after incorporation; fuel or power used	416
in the production, transmission, or distribution of electricity;	417
energy conversion equipment as defined in section 5727.01 of the	418
Revised Code; and tangible personal property and services used in	419
the repair and maintenance of the production, transmission, or	420
distribution system, including only those motor vehicles as are	421
specially designed and equipped for such use. The exemption	422
provided in this division shall be in lieu of all other exemptions	423
in division (B)(42)(a) or (n) of this section to which a provider	424
of electricity may otherwise be entitled based on the use of the	425
tangible personal property or service purchased in generating,	426
transmitting, or distributing electricity.	427

(41) Sales to a person providing services under division	428
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	429
personal property and services used directly and primarily in	430
providing taxable services under that section.	431

(42) Sales where the purpose of the purchaser is to do any of	432
the following:	433

(a) To incorporate the thing transferred as a material or a	434
part into tangible personal property to be produced for sale by	435
manufacturing, assembling, processing, or refining; or to use or	436
consume the thing transferred directly in producing tangible	437
personal property for sale by mining, including, without	438
limitation, the extraction from the earth of all substances that	439
are classed geologically as minerals, production of crude oil and	440
natural gas, or directly in the rendition of a public utility	441
service, except that the sales tax levied by this section shall be	442
collected upon all meals, drinks, and food for human consumption	443
sold when transporting persons. Persons engaged in rendering	444
services in the exploration for, and production of, crude oil and	445
natural gas for others are deemed engaged directly in the	446
exploration for, and production of, crude oil and natural gas.	447
This paragraph does not exempt from "retail sale" or "sales at	448
retail" the sale of tangible personal property that is to be	449
incorporated into a structure or improvement to real property.	450

(b) To hold the thing transferred as security for the	451
performance of an obligation of the vendor;	452

(c) To resell, hold, use, or consume the thing transferred as	453
evidence of a contract of insurance;	454

(d) To use or consume the thing directly in commercial	455
fishing;	456

(e) To incorporate the thing transferred as a material or a	457
part into, or to use or consume the thing transferred directly in	458
the production of, magazines distributed as controlled circulation	459
publications;	460

(f) To use or consume the thing transferred in the production	461
and preparation in suitable condition for market and sale of	462
printed, imprinted, overprinted, lithographic, multilithic,	463
blueprinted, photostatic, or other productions or reproductions of	464
written or graphic matter;	465

(g) To use the thing transferred, as described in section	466
5739.011 of the Revised Code, primarily in a manufacturing	467
operation to produce tangible personal property for sale;	468

(h) To use the benefit of a warranty, maintenance or service	469
contract, or similar agreement, as described in division (B)(7) of	470
section 5739.01 of the Revised Code, to repair or maintain	471
tangible personal property, if all of the property that is the	472
subject of the warranty, contract, or agreement would not be	473
subject to the tax imposed by this section;	474

(i) To use the thing transferred as qualified research and	475
development equipment;	476

(j) To use or consume the thing transferred primarily in	477
storing, transporting, mailing, or otherwise handling purchased	478
sales inventory in a warehouse, distribution center, or similar	479
facility when the inventory is primarily distributed outside this	480
state to retail stores of the person who owns or controls the	481
warehouse, distribution center, or similar facility, to retail	482
stores of an affiliated group of which that person is a member, or	483
by means of direct marketing. This division does not apply to	484
motor vehicles registered for operation on the public highways. As	485
used in this division, "affiliated group" has the same meaning as	486
in division (B)(3)(e) of section 5739.01 of the Revised Code and	487
"direct marketing" has the same meaning as in division (B)(35) of	488
this section.	489

(k) To use or consume the thing transferred to fulfill a	490
contractual obligation incurred by a warrantor pursuant to a	491
warranty provided as a part of the price of the tangible personal	492
property sold or by a vendor of a warranty, maintenance or service	493
contract, or similar agreement the provision of which is defined	494
as a sale under division (B)(7) of section 5739.01 of the Revised	495
Code;	496

(l) To use or consume the thing transferred in the production	497
of a newspaper for distribution to the public;	498

(m) To use tangible personal property to perform a service	499
listed in division (B)(3) of section 5739.01 of the Revised Code,	500
if the property is or is to be permanently transferred to the	501
consumer of the service as an integral part of the performance of	502
the service;	503

(n) To use or consume the thing transferred primarily in	504
producing tangible personal property for sale by farming,	505
agriculture, horticulture, or floriculture. Persons engaged in	506
rendering farming, agriculture, horticulture, or floriculture	507
services for others are deemed engaged primarily in farming,	508
agriculture, horticulture, or floriculture. This paragraph does	509
not exempt from "retail sale" or "sales at retail" the sale of	510
tangible personal property that is to be incorporated into a	511
structure or improvement to real property.	512

(o) To use or consume the thing transferred in acquiring,	513
formatting, editing, storing, and disseminating data or	514
information by electronic publishing.	515

As used in division (B)(42) of this section, "thing" includes	516
all transactions included in divisions (B)(3)(a), (b), and (e) of	517
section 5739.01 of the Revised Code.	518

(43) Sales conducted through a coin operated device that	519
activates vacuum equipment or equipment that dispenses water,	520
whether or not in combination with soap or other cleaning agents	521
or wax, to the consumer for the consumer's use on the premises in	522
washing, cleaning, or waxing a motor vehicle, provided no other	523
personal property or personal service is provided as part of the	524
transaction.	525

(44) Sales of replacement and modification parts for engines,	526
airframes, instruments, and interiors in, and paint for, aircraft	527
used primarily in a fractional aircraft ownership program, and	528
sales of services for the repair, modification, and maintenance of	529
such aircraft, and machinery, equipment, and supplies primarily	530
used to provide those services.	531

(45) Sales of telecommunications service that is used	532
directly and primarily to perform the functions of a call center.	533
As used in this division, "call center" means any physical	534
location where telephone calls are placed or received in high	535
volume for the purpose of making sales, marketing, customer	536
service, technical support, or other specialized business	537
activity, and that employs at least fifty individuals that engage	538
in call center activities on a full-time basis, or sufficient	539
individuals to fill fifty full-time equivalent positions.	540

(46) Sales by a telecommunications service vendor of 900	541
service to a subscriber. This division does not apply to	542
information services, as defined in division (FF) of section	543
5739.01 of the Revised Code.	544

(47) Sales of value-added non-voice data service. This	545
division does not apply to any similar service that is not	546
otherwise a telecommunications service.	547

(48)(a) Sales of machinery, equipment, and software to a	548
qualified direct selling entity for use in a warehouse or	549
distribution center primarily for storing, transporting, or	550
otherwise handling inventory that is held for sale to independent	551
salespersons who operate as direct sellers and that is held	552
primarily for distribution outside this state;	553

(b) As used in division (B)(48)(a) of this section:

554

(i) "Direct seller" means a person selling consumer products	555
to individuals for personal or household use and not from a fixed	556
retail location, including selling such product at in-home product	557
demonstrations, parties, and other one-on-one selling.	558

(ii) "Qualified direct selling entity" means an entity	559
selling to direct sellers at the time the entity enters into a tax	560
credit agreement with the tax credit authority pursuant to section	561
122.17 of the Revised Code, provided that the agreement was	562
entered into on or after January 1, 2007. Neither contingencies	563
relevant to the granting of, nor later developments with respect	564
to, the tax credit shall impair the status of the qualified direct	565
selling entity under division (B)(48) of this section after	566
execution of the tax credit agreement by the tax credit authority.	567

(c) Division (B)(48) of this section is limited to machinery,	568
equipment, and software first stored, used, or consumed in this	569
state within the period commencing June 24, 2008, and ending on	570
the date that is five years after that date.	571

(49) Sales of materials, parts, equipment, or engines used in	572
the repair or maintenance of aircraft or avionics systems of such	573
aircraft, and sales of repair, remodeling, replacement, or	574
maintenance services in this state performed on aircraft or on an	575
aircraft's avionics, engine, or component materials or parts. As	576
used in division (B)(49) of this section, "aircraft" means	577
aircraft of more than six thousand pounds maximum certified	578
takeoff weight or used exclusively in general aviation.	579

(50) Sales of full flight simulators that are used for pilot	580
or flight-crew training, sales of repair or replacement parts or	581
components, and sales of repair or maintenance services for such	582
full flight simulators. "Full flight simulator" means a replica of	583
a specific type, or make, model, and series of aircraft cockpit.	584
It includes the assemblage of equipment and computer programs	585
necessary to represent aircraft operations in ground and flight	586
conditions, a visual system providing an out-of-the-cockpit view,	587
and a system that provides cues at least equivalent to those of a	588
three-degree-of-freedom motion system, and has the full range of	589
capabilities of the systems installed in the device as described	590
in appendices A and B of part 60 of chapter 1 of title 14 of the	591
Code of Federal Regulations.	592

(51) Any transfer or lease of tangible personal property	593
between the state and a successful proposer in accordance with	594
sections 126.60 to 126.605 of the Revised Code, provided the	595
property is part of a project as defined in section 126.60 of the	596
Revised Code and the state retains ownership of the project or	597
part thereof that is being transferred or leased, between the	598
state and JobsOhio in accordance with section 4313.02 of the	599
Revised Code.	600

(52) Sales of investment metal bullion and investment coins.	601
"Investment metal bullion" means any elementary precious metal	602
that has been put through a process of smelting or refining,	603
including, but not limited to, gold, silver, platinum, and	604
palladium, and which is in such state or condition that its value	605
depends upon its content and not upon its form. "Investment metal	606
bullion" does not include fabricated precious metal that has been	607
processed or manufactured for one or more specific and customary	608
industrial, professional, or artistic uses. "Investment coins"	609
means numismatic coins or other forms of money and legal tender	610
manufactured of gold, silver, platinum, palladium, or other metal	611
under the laws of the United States or any foreign nation with a	612
fair market value greater than any statutory or nominal value of	613
such coins.	614

(C) For the purpose of the proper administration of this	615
chapter, and to prevent the evasion of the tax, it is presumed	616
that all sales made in this state are subject to the tax until the	617
contrary is established.	618

(D) The levy of this tax on retail sales of recreation and	619
sports club service shall not prevent a municipal corporation from	620
levying any tax on recreation and sports club dues or on any	621
income generated by recreation and sports club dues.	622

(E) The tax collected by the vendor from the consumer under	623
this chapter is not part of the price, but is a tax collection for	624
the benefit of the state, and of counties levying an additional	625
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	626
Code and of transit authorities levying an additional sales tax	627
pursuant to section 5739.023 of the Revised Code. Except for the	628
discount authorized under section 5739.12 of the Revised Code and	629
the effects of any rounding pursuant to section 5703.055 of the	630
Revised Code, no person other than the state or such a county or	631
transit authority shall derive any benefit from the collection or	632
payment of the tax levied by this section or section 5739.021,	633
5739.023, or 5739.026 of the Revised Code.	634

Section 2.  That existing section 5739.02 of the Revised Code	635
is hereby repealed.	636

Section 3.  That the amendment by this act of section 5739.02	637
of the Revised Code applies on and after the first day of the	638
first month that begins after the effective date of this act.	639