H. B. No. 508 As Introduced

As Introduced

129th General Assembly

Regular Session

2011-2012

H. B. No. 508

Representative Beck

A BILL

To amend sections 131.02, 1701.86, 1702.47, 3769.28,

4301.42, 4303.33, 4928.23, 4928.2314, 5703.261,

5703.37, 5703.47, 5727.84, 5727.86, 5731.39,

5733.26, 5735.02, 5735.03, 5735.35, 5739.01,

5739.02, 5739.021, 5739.023, 5739.026, 5739.04,

5739.17, 5741.08, 5743.20, 5743.61, 5743.66,

5747.082, 5747.11, 5751.01, 5751.011, 5751.012,

5751.03, 5751.04, 5751.05, 5751.051, 5751.08,

5751.12, 5751.20, 5751.22, and 5753.03, to enact

section 5703.061, and to repeal section 5751.032

of the Revised Code to make changes to the laws

governing the assessment, levy, and collection of

taxes in the state.

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

Section 1. That sections 131.02, 1701.86, 1702.47, 3769.28,	14
4301.42, 4303.33, 4928.23, 4928.2314, 5703.261, 5703.37, 5703.47,	15
5727.84, 5727.86, 5731.39, 5733.26, 5735.02, 5735.03, 5735.35,	16
5739.01, 5739.02, 5739.021, 5739.023, 5739.026, 5739.04, 5739.17,	17
5741.08, 5743.20, 5743.61, 5743.66, 5747.082, 5747.11, 5751.01,	18
5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051, 5751.08,	19
5751.12, 5751.20, 5751.22, and 5753.03 be amended and section	20
5703.061 of the Revised Code be enacted to read as follows:	21

Sec. 131.02. (A) Except as otherwise provided in section	22
4123.37, section 5703.061, and division (K) of section 4123.511 of	23
the Revised Code, whenever any amount is payable to the state, the	24
officer, employee, or agent responsible for administering the law	25
under which the amount is payable shall immediately proceed to	26
collect the amount or cause the amount to be collected and shall	27
pay the amount into the state treasury or into the appropriate	28
custodial fund in the manner set forth pursuant to section 113.08	29
of the Revised Code. Except as otherwise provided in this	30
division, if the amount is not paid within forty-five days after	31
payment is due, the officer, employee, or agent shall certify the	32
amount due to the attorney general, in the form and manner	33
prescribed by the attorney general, and notify the director of	34
budget and management thereof. In the case of an amount payable by	35
a student enrolled in a state institution of higher education, the	36
amount shall be certified within the later of forty-five days	37
after the amount is due or the tenth day after the beginning of	38
the next academic semester, quarter, or other session following	39
the session for which the payment is payable. The attorney general	40
may assess the collection cost to the amount certified in such	41
manner and amount as prescribed by the attorney general. If an	42
amount payable to a political subdivision is past due, the	43
political subdivision may, with the approval of the attorney	44
general, certify the amount to the attorney general pursuant to	45
this section.	46

For the purposes of this section, the attorney general and	47
the officer, employee, or agent responsible for administering the	48
law under which the amount is payable shall agree on the time a	49
payment is due, and that agreed upon time shall be one of the	50
following times:	51

(1) If a law, including an administrative rule, of this state	52
prescribes the time a payment is required to be made or reported,	53
when the payment is required by that law to be paid or reported.	54

(2) If the payment is for services rendered, when the	55
rendering of the services is completed.	56

(3) If the payment is reimbursement for a loss, when the loss	57
is incurred.	58

(4) In the case of a fine or penalty for which a law or	59
administrative rule does not prescribe a time for payment, when	60
the fine or penalty is first assessed.	61

(5) If the payment arises from a legal finding, judgment, or	62
adjudication order, when the finding, judgment, or order is	63
rendered or issued.	64

(6) If the payment arises from an overpayment of money by the	65
state to another person, when the overpayment is discovered.	66

(7) The date on which the amount for which an individual is	67
personally liable under section 5735.35, section 5739.33, or	68
division (G) of section 5747.07 of the Revised Code is determined.	69

(8) Upon proof of claim being filed in a bankruptcy case.

(9) Any other appropriate time determined by the attorney	71
general and the officer, employee, or agent responsible for	72
administering the law under which the amount is payable on the	73
basis of statutory requirements or ordinary business processes of	74
the state agency to which the payment is owed.	75

(B)(1) The attorney general shall give immediate notice by	76
mail or otherwise to the party indebted of the nature and amount	77
of the indebtedness.	78

(2) If the amount payable to this state arises from a tax	79
levied under Chapter 5733., 5739., 5741., 5747., or 5751. of the	80
Revised Code, the notice also shall specify all of the following:	81

(a) The assessment or case number;

(b) The tax pursuant to which the assessment is made;

(c) The reason for the liability, including, if applicable,	84
that a penalty or interest is due;	85

(d) An explanation of how and when interest will be added to	86
the amount assessed;	87

(e) That the attorney general and tax commissioner, acting	88
together, have the authority, but are not required, to compromise	89
the claim and accept payment over a reasonable time, if such	90
actions are in the best interest of the state.	91

(C) The attorney general shall collect the claim or secure a	92
judgment and issue an execution for its collection.	93

(D) Each claim shall bear interest, from the day on which the	94
claim became due, at the rate per annum required by section	95
5703.47 of the Revised Code.	96

(E) The attorney general and the chief officer of the agency	97
reporting a claim, acting together, may do any of the following if	98
such action is in the best interests of the state:	99

(1) Compromise the claim;

100

(2) Extend for a reasonable period the time for payment of	101
the claim by agreeing to accept monthly or other periodic	102
payments. The agreement may require security for payment of the	103
claim.	104

(3) Add fees to recover the cost of processing checks or	105
other draft instruments returned for insufficient funds and the	106
cost of providing electronic payment options.	107

(F)(1) Except as provided in division (F)(2) of this section,	108
if the attorney general finds, after investigation, that any claim	109
due and owing to the state is uncollectible, the attorney general,	110
with the consent of the chief officer of the agency reporting the	111
claim, may do the following:	112

(a) Sell, convey, or otherwise transfer the claim to one or	113
more private entities for collection;	114

(b) Cancel the claim or cause it to be canceled.

115

(2) The attorney general shall cancel or cause to be canceled	116
an unsatisfied claim on the date that is forty years after the	117
date the claim is certified.	118

(3) No initial action shall be commenced to collect any tax	119
payable to the state that is administered by the tax commissioner,	120
whether or not such tax is subject to division (B) of this	121
section, or any penalty, interest, or additional charge on such	122
tax, after the expiration of the period ending on the later of the	123
dates specified in divisions (F)(3)(a) and (b) of this section,	124
provided that such period shall be extended by the period of any	125
stay to such collection or by any other period to which the	126
parties mutually agree. If the initial action in aid of execution	127
is commenced before the later of the dates specified in divisions	128
(F)(3)(a) and (b) of this section, any and all subsequent actions	129
may be pursued in aid of execution of judgment for as long as the	130
debt exists.	131

(a) Seven years after the assessment of the tax, penalty,	132
interest, or additional charge is issued.	133

(b) Four years after the assessment of the tax, penalty,	134
interest, or additional charge becomes final. For the purposes of	135
division (F)(3)(b) of this section, the assessment becomes final	136
at the latest of the following: upon expiration of the period to	137
petition for reassessment, or if applicable, to appeal a final	138
determination of the commissioner or decision of the board of tax	139
appeals or a court, or, if applicable, upon decision of the United	140
States supreme court.	141

For the purposes of division (F)(3) of this section, an	142
initial action to collect a tax debt is commenced at the time when	143
any action, including any action in aid of execution on a	144
judgment, commences after a certified copy of the tax	145
commissioner's entry making an assessment final has been filed in	146
the office of the clerk of court of common pleas in the county in	147
which the taxpayer resides or has its principal place of business	148
in this state, or in the office of the clerk of court of common	149
pleas of Franklin county, as provided in section 5739.13, 5741.14,	150
5747.13, or 5751.09 of the Revised Code or in any other applicable	151
law requiring such a filing. If an assessment has not been issued	152
and there is no time limitation on the issuance of an assessment	153
under applicable law, an action to collect a tax debt commences	154
when the action is filed in the courts of this state to collect	155
the liability.	156

(4) If information contained in a claim that is sold,	157
conveyed, or transferred to a private entity pursuant to this	158
section is confidential pursuant to federal law or a section of	159
the Revised Code that implements a federal law governing	160
confidentiality, such information remains subject to that law	161
during and following the sale, conveyance, or transfer.	162

Sec. 1701.86. (A) A corporation may be dissolved voluntarily	163
in the manner provided in this section, provided the provisions of	164
Chapter 1704. of the Revised Code do not prevent the dissolution	165
from being effected.	166

(B) A resolution of dissolution for a corporation shall set	167
forth:	168

(1) That the corporation elects to be dissolved;

169

(2) Any additional provision considered necessary with	170
respect to the proposed dissolution and winding up.	171

(C) If an initial stated capital is not set forth in the	172
articles then before the corporation begins business, or if an	173
initial stated capital is set forth in the articles then before	174
subscriptions to shares shall have been received in the amount of	175
that initial stated capital, the incorporators or a majority of	176
them may adopt, by a writing signed by them, a resolution of	177
dissolution.	178

(D) The directors may adopt a resolution of dissolution in	179
the following cases:	180

(1) When the corporation has been adjudged bankrupt or has	181
made a general assignment for the benefit of creditors;	182

(2) By leave of the court, when a receiver has been appointed	183
in a general creditors' suit or in any suit in which the affairs	184
of the corporation are to be wound up;	185

(3) When substantially all of the assets have been sold at	186
judicial sale or otherwise;	187

(4) When the articles have been canceled for failure to file	188
annual franchise or excise tax returns or for failure to pay	189
franchise or excise taxes and the corporation has not been	190
reinstated or does not desire to be reinstated;	191

(5) When the period of existence of the corporation specified	192
in its articles has expired.	193

(E) The shareholders at a meeting held for such purpose may	194
adopt a resolution of dissolution by the affirmative vote of the	195
holders of shares entitling them to exercise two-thirds of the	196
voting power of the corporation on such proposal or, if the	197
articles provide or permit, by the affirmative vote of a greater	198
or lesser proportion, though less than a majority, of such voting	199
power, and by such affirmative vote of the holders of shares of	200
any particular class as is required by the articles. Notice of the	201
meeting of the shareholders shall be given to all the shareholders	202
whether or not entitled to vote at it.	203

(F) Upon the adoption of a resolution of dissolution, a	204
certificate shall be prepared, on a form prescribed by the	205
secretary of state, setting forth the following:	206

(1) The name of the corporation;

207

(2) A statement that a resolution of dissolution has been	208
adopted;	209

(3) A statement of the manner of adoption of such resolution,	210
and, in the case of its adoption by the incorporators or	211
directors, a statement of the basis for such adoption;	212

(4) The place in this state where its principal office is or	213
is to be located;	214

(5) The names and addresses of its directors and officers,	215
unless the resolution of dissolution is adopted by the	216
incorporators, in which event the names and addresses of the	217
incorporators shall be set forth in the certificate;	218

(6) The name and address of its statutory agent;

219

(7) The date of dissolution, if other than the filing date.

220

(G) Such certificate shall be signed as follows:

221

(1) When the resolution of dissolution is adopted by the	222
incorporators or a majority of them, the certificate shall be	223
signed by not less than a majority of them;	224

(2) When the resolution is adopted by the directors or by the	225
shareholders, the certificate shall be signed by any authorized	226
officer, unless the officer fails to execute and file such	227
certificate within thirty days after the adoption of the	228
resolution or upon any date specified in the resolution as the	229
date upon which such certificate is to be filed or upon the	230
expiration of any period specified in the resolution as the period	231
within which such certificate is to be filed, whichever is latest,	232
in which event the certificate of dissolution may be signed by any	233
three shareholders and shall set forth a statement that the	234
persons signing the certificate are shareholders and are filing	235
the certificate because of the failure of the officers to do so.	236

(H) A certificate of dissolution, filed with the secretary of	237
state, shall be accompanied by:	238

(1) ~~An affidavit of one or more of the persons executing the~~	239
~~certificate of dissolution or of an officer of the corporation~~	240
~~containing a statement of the counties, if any, in this state in~~	241
~~which the corporation has personal property or a statement that~~	242
~~the corporation is of a type required to pay personal property~~	243
~~taxes to state authorities only;~~	244

~~(2)~~ A receipt, certificate, or other evidence showing that	245
the ~~payment of all franchise, sales, use, and highway use taxes~~	246
~~accruing up to the date of such filing or, if applicable, to the~~	247
~~later date specified in the certificate of~~corporation has paid	248
all taxes imposed under the laws of this state that are or will be	249
due from the corporation on the date of the dissolution in	250
~~accordance with division (F) of this section~~, or that such payment	251
has been adequately guaranteed;	252

~~(3) A receipt, certificate, or other evidence showing the~~	253
~~payment of all personal property taxes accruing up to the date of~~	254
~~such filing or, if applicable, to the later date specified in the~~	255
~~certificate of dissolution in accordance with division (F) of this~~	256
~~section, or that such payment has been adequately guaranteed;~~	257

~~(4)~~(2) A receipt, certificate, or other evidence from the	258
director of job and family services showing that all contributions	259
due from the corporation as an employer have been paid, or that	260
such payment has been adequately guaranteed, or that the	261
corporation is not subject to such contributions;	262

~~(5)~~(3) A receipt, certificate, or other evidence from the	263
bureau of workers' compensation showing that all premiums due from	264
the corporation as an employer have been paid, or that such	265
payment has been adequately guaranteed, or that the corporation is	266
not subject to such premium payments;	267

~~(6)~~(4) In lieu of the receipt, certificate, or other evidence	268
described in division (H)(1), (2), or (3)~~, (4), or (5)~~ of this	269
section, an affidavit of one or more persons executing the	270
certificate of dissolution or of an officer of the corporation	271
containing a statement of the date upon which the particular	272
department, agency, or authority was advised in writing of the	273
scheduled effective date of the dissolution and was advised in	274
writing of the acknowledgment by the corporation of the	275
applicability of the provisions of section 1701.95 of the Revised	276
Code.	277

(I) Upon the filing of a certificate of dissolution and such	278
accompanying documents or on a later date specified in the	279
certificate that is not more than ninety days after the filing,	280
the corporation shall be dissolved.	281

Sec. 1702.47. (A) A corporation may be dissolved voluntarily	282
in the manner provided in this section.	283

(B) A resolution of dissolution for a corporation shall set	284
forth:	285

(1) That the corporation elects to be dissolved;

286

(2) Any additional provision deemed necessary with respect to	287
the proposed dissolution and winding up.	288

(C) The directors may adopt a resolution of dissolution in	289
the following cases:	290

(1) When the corporation has been adjudged bankrupt or has	291
made a general assignment for the benefit of creditors;	292

(2) By leave of the court, when a receiver has been appointed	293
in a general creditors' suit or in any suit in which the affairs	294
of the corporation are to be wound up;	295

(3) When substantially all of the assets have been sold at	296
judicial sale or otherwise;	297

(4) When the period of existence of the corporation specified	298
in its articles has expired.	299

(D)(1) The voting members at a meeting held for that purpose	300
may adopt a resolution of dissolution by the affirmative vote of a	301
majority of the voting members present in person or, if permitted,	302
by mail, by proxy, or by the use of authorized communications	303
equipment, if a quorum is present or, if the articles or the	304
regulations provide or permit, by the affirmative vote of a	305
greater or lesser proportion or number of the voting members, and	306
by the affirmative vote of the voting members or the affirmative	307
vote of the voting members of any particular class that is	308
required by the articles or the regulations. Notice of the meeting	309
of the members shall be sent to all the members who would be	310
entitled to vote at the meeting by mail, overnight delivery	311
service, or any authorized communications equipment.	312

(2) For purposes of division (D)(1) of this section,	313
participation by a voting member at a meeting through the use of	314
any of the means of communication described in that division	315
constitutes presence in person of that voting member at the	316
meeting for purposes of determining a quorum.	317

(E) Upon the adoption of a resolution of dissolution, a	318
certificate shall be prepared, on a form prescribed by the	319
secretary of state, setting forth the following:	320

(1) The name of the corporation;

321

(2) A statement that a resolution of dissolution has been	322
adopted;	323

(3) A statement of the manner of adoption of that resolution,	324
and, in the case of its adoption by the directors, a statement of	325
the basis for the adoption;	326

(4) The place in this state where its principal office is or	327
is to be located;	328

(5) The names and addresses of its directors and officers;

329

(6) The name and address of its statutory agent;

330

(7) The date of dissolution, if other than the filing date.

331

(F) The certificate described in division (E) of this section	332
shall be signed by any authorized officer, unless the officer	333
fails to execute and file the certificate within thirty days after	334
the adoption of the resolution, or upon any date specified in the	335
resolution as the date upon which the certificate is to be filed,	336
or upon the expiration of any period specified in the resolution	337
as the period within which the certificate is to be filed,	338
whichever is latest, in which event the certificate of dissolution	339
may be signed by any three voting members and shall set forth a	340
statement that the persons signing the certificate are voting	341
members and are filing the certificate because of the failure of	342
the officers to do so.	343

(G) A certificate of dissolution, filed with the secretary of	344
state, shall be accompanied by:	345

(1) ~~An affidavit of one or more of the persons executing the~~	346
~~certificate of dissolution or of an officer of the corporation~~	347
~~containing a statement of the counties, if any, in this state in~~	348
~~which the corporation has personal property subject to personal~~	349
~~property taxes or a statement that the corporation is of a type~~	350
~~required to pay personal property taxes to state authorities only;~~	351

~~(2) A receipt, certificate, or other evidence showing the~~	352
~~payment of all personal property taxes accruing up to the date of~~	353
~~such filing or, if applicable, to the later date specified in the~~	354
~~certificate of dissolution in accordance with division (E) of this~~	355
~~section, unless the affidavit provided for in division (G)(1) of~~	356
~~this section states that the corporation has in this state no~~	357
~~personal property subject to personal property taxes;~~	358

~~(3)~~ A receipt, certificate, or other evidence from the	359
director of job and family services showing that all contributions	360
due from the corporation as an employer have been paid, that such	361
payment has been adequately guaranteed, or that the corporation is	362
not subject to such contributions;	363

~~(4)~~(2) A receipt, certificate, or other evidence showing that	364
the ~~payment of all sales, use, and highway use taxes accruing up~~	365
~~to the date of such filing or, if applicable, to the later date~~	366
~~specified in the certificate of~~corporation has paid all taxes	367
imposed under the laws of this state that are or will be due from	368
the corporation on the date of the dissolution ~~in accordance with~~	369
~~division (E) of this section~~, or that such payment has been	370
adequately guaranteed;	371

~~(5)~~(3) In lieu of the receipt, certificate, or other evidence	372
described in division (G)(1) or (2)~~, (3), or (4)~~ of this section,	373
an affidavit of one or more of the persons executing the	374
certificate of dissolution or of an officer of the corporation	375
containing a statement of the date upon which the particular	376
department, agency, or authority was advised in writing of the	377
scheduled effective date of the dissolution and was advised in	378
writing of the acknowledgement by the corporation of the	379
applicability of section 1702.55 of the Revised Code.	380

(H) Upon the filing of a certificate of dissolution and those	381
accompanying documents or on a later date specified in the	382
certificate that is not more than ninety days after the filing,	383
the corporation shall be dissolved.	384

Sec. 3769.28. The tax commissioner shall collect from each	385
permit holder who conducts a pari-mutuel system of wagering where	386
the wagering is less than five million dollars a sum of money	387
equal to one-tenth of one per cent of the total amount wagered and	388
where the wagering is five million dollars or more a sum of money	389
equal to fifteen hundredths of one per cent of the total amount	390
wagered during any horse-racing meeting for the purpose of	391
providing operating revenue for the political subdivisions wherein	392
such meetings are held. ~~Such moneys shall be collected by the~~	393
~~commissioner within~~Within ten days after the close of ~~such~~a	394
meeting ~~and shall be sent back to~~, the permit holder ~~who paid the~~	395
~~tax. Such permit holder~~shall prepare and transmit to the tax	396
commissioner a final report showing the total amount wagered	397
during the horse-racing meeting and any other information required	398
by the commissioner relative to the tax levied by this section.	399
The final report shall be signed by the permit holder or an	400
authorized agent of the permit holder. The commissioner shall	401
prescribe the form of the final report.	402

The commissioner shall collect the tax due under this section	403
on amounts wagered during a horse-racing meeting within ten days	404
after the close of the meeting. The commissioner shall then	405
immediately forward the ~~moneys~~amount collected to the chief	406
fiscal officers of the municipal corporations or townships in	407
which such horse-racing meeting took place and in which any such	408
facilities or accessory uses therefor were located. ~~Such moneys~~	409
The amount collected shall be divided equally between the	410
municipal corporations or townships in which such horse-racing	411
meeting took place and in which any facilities or accessory uses	412
therefor were located. Such municipal corporations or townships	413
may distribute a portion of the moneys so received to any	414
adjoining political subdivision which incurs increased expenses	415
because of such horse-racing meeting.	416

This section shall not apply to any agricultural society	417
which holds a horse-racing permit.	418

The amount collected under this section from any one permit	419
holder shall not exceed fifteen thousand dollars from any one	420
horse-racing meeting in any calendar year.	421

Sec. 4301.42. For the purpose of providing revenue for the	422
support of the state, a tax is hereby levied on the sale of beer	423
in sealed bottles and cans having twelve ounces or less of liquid	424
content, at the rate of fourteen one-hundredths of one cent on	425
each ounce of liquid content or fractional part of each ounce of	426
liquid content, and on such containers in excess of twelve ounces,	427
at the rate of eighty-four one-hundredths of one cent on each six	428
ounces of liquid content or fractional part of each six ounces of	429
liquid content. Sections 4307.01 to 4307.12 of the Revised Code	430
apply in the administration of that tax. Manufacturers, bottlers,	431
and canners of ~~and wholesale dealers in~~ beer, wholesale dealers in	432
beer, and S permit holders have the duty to pay the tax imposed by	433
this section and are entitled to the privileges in the manner	434
provided in section 4303.33 of the Revised Code.	435

Sec. 4303.33. (A) Every A-1 permit holder in this state,	436
every bottler, importer, wholesale dealer, broker, producer, or	437
manufacturer of beer outside this state and within the United	438
States, and every B-1 permit holder and importer importing beer	439
from any manufacturer, bottler, person, or group of persons	440
however organized outside the United States for sale or	441
distribution for sale in this state, on or before the eighteenth	442
day of each month, shall make and file with the tax commissioner	443
upon a form prescribed by the tax commissioner an advance tax	444
payment in an amount estimated to equal the taxpayer's tax	445
liability for the month in which the advance tax payment is made.	446
If the advance tax payment credits claimed on the report are for	447
advance tax payments received by the tax commissioner on or before	448
the eighteenth day of the month covered by the report, the	449
taxpayer is entitled to an additional credit of three per cent of	450
the advance tax payment and a discount of three per cent shall be	451
allowed the taxpayer at the time of filing the report if filed as	452
provided in division (B) of this section on any amount by which	453
the tax liability reflected in the report exceeds the advance tax	454
payment estimate by not more than ten per cent. The additional	455
three per cent credit and three per cent discount shall be in	456
consideration for advancing the payment of the tax and other	457
services performed by the permit holder and other taxpayers in the	458
collection of the tax.	459

"Advance tax payment credit" means credit for payments made	460
by an A-1 or B-1 permit holder and any other persons during the	461
period covered by a report which was made in anticipation of the	462
tax liability required to be reported on that report.	463

"Tax liability" as used in division (A) of this section means	464
the total gross tax liability of an A-1 or B-1 permit holder and	465
any other persons for the period covered by a report before any	466
allowance for credits and discount.	467

(B) Every A-1 permit holder in this state, every bottler,	468
importer, wholesale dealer, broker, producer, or manufacturer of	469
beer outside this state and within the United States, ~~and~~ every	470
B-1 permit holder importing beer from any manufacturer, bottler,	471
person, or group of persons however organized outside the United	472
States, and every S permit holder, on or before the tenth day of	473
each month, shall make and file a report for the preceding month	474
upon a form prescribed by the tax commissioner which report shall	475
show the amount of beer produced, sold, and distributed for sale	476
in this state by the A-1 permit holder, sold and distributed for	477
sale in this state by each manufacturer, bottler, importer,	478
wholesale dealer, or broker outside this state and within the	479
United States, ~~and~~ the amount of beer imported into this state	480
from outside the United States and sold and distributed for sale	481
in this state by the B-1 permit holder or importer, and the amount	482
of beer sold in this state by the S permit holder.	483

The report shall be filed by mailing it to the tax	484
commissioner, together with payment of the tax levied by sections	485
4301.42 and 4305.01 of the Revised Code shown to be due on the	486
report after deduction of advance payment credits and any	487
additional credits or discounts provided for under this section.	488

(C)(1) Every A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S permit	489
holder in this state, on or before the eighteenth day of each	490
month, shall make and file a report with the tax commissioner upon	491
a form prescribed by the tax commissioner which report shall show,	492
on the report of each A-2, A-4, B-2a, and S permit holder the	493
amount of wine, cider, and mixed beverages produced and sold, or	494
sold in this state by each such A-2, A-4, B-2a, and S permit	495
holder for the next preceding calendar month and such other	496
information as the tax commissioner requires, and on the report of	497
each such B-2, B-3, B-4, and B-5 permit holder the amount of wine,	498
cider, and mixed beverages purchased from an importer, broker,	499
wholesale dealer, producer, or manufacturer located outside this	500
state and sold and distributed in this state by such B-2, B-3,	501
B-4, and B-5 permit holder, for the next preceding calendar month	502
and such other information as the tax commissioner requires.	503

(2) Every such A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S	504
permit holder in this state shall remit with the report the tax	505
levied by sections 4301.43 and, if applicable, 4301.432 of the	506
Revised Code less a discount thereon of three per cent of the	507
total tax so levied and paid, provided the return is filed	508
together with remittance of the amount of tax shown to be due	509
thereon, within the time prescribed. Any permit holder or other	510
persons who fail to file a report under this section, for each day	511
the person so fails, may be required to forfeit and pay into the	512
state treasury the sum of one dollar as revenue arising from the	513
tax imposed by sections 4301.42, 4301.43, 4301.432, and 4305.01 of	514
the Revised Code, and that sum may be collected by assessment in	515
the manner provided in section 4305.13 of the Revised Code.	516

(3) If the tax commissioner determines that the quantity	517
reported by a person does not warrant monthly reporting, the	518
commissioner may authorize the filing of returns and the payment	519
of the tax required by this section for periods longer than one	520
month.	521

(D) Every B-1 permit holder and importer in this state	522
importing beer from any manufacturer, bottler, person, or group of	523
persons however organized, outside the United States, if required	524
by the tax commissioner shall post a bond payable to the state in	525
such form and amount as the commissioner prescribes with surety to	526
the satisfaction of the tax commissioner, conditioned upon the	527
payment to the tax commissioner of taxes levied by sections	528
4301.42 and 4305.01 of the Revised Code.	529

(E) No such wine, beer, cider, or mixed beverages sold or	530
distributed in this state shall be taxed more than once under	531
sections 4301.42, 4301.43, and 4305.01 of the Revised Code.	532

(F) As used in this section:

533

(1) "Cider" has the same meaning as in section 4301.01 of the	534
Revised Code.	535

(2) "Wine" has the same meaning as in section 4301.01 of the	536
Revised Code, except that "wine" does not include cider.	537

(G) All money collected by the tax commissioner under this	538
section shall be paid to the treasurer of state as revenue arising	539
from the taxes levied by sections 4301.42, 4301.43, 4301.432, and	540
4305.01 of the Revised Code.	541

Sec. 4928.23. As used in sections 4928.23 to 4928.2318 of the	542
Revised Code:	543

(A) "Ancillary agreement" means any bond insurance policy,	544
letter of credit, reserve account, surety bond, swap arrangement,	545
hedging arrangement, liquidity or credit support arrangement, or	546
other similar agreement or arrangement entered into in connection	547
with the issuance of phase-in-recovery bonds that is designed to	548
promote the credit quality and marketability of the bonds or to	549
mitigate the risk of an increase in interest rates.	550

(B) "Assignee" means any person or entity to which an	551
interest in phase-in-recovery property is sold, assigned,	552
transferred, or conveyed, other than as security, and any	553
successor to or subsequent assignee of such a person or entity.	554

(C) "Bond" includes debentures, notes, certificates of	555
participation, certificates of beneficial interest, certificates	556
of ownership or other evidences of indebtedness or ownership that	557
are issued by an electric distribution utility or an assignee	558
under a final financing order, the proceeds of which are used	559
directly or indirectly to recover, finance, or refinance phase-in	560
costs and financing costs, and that are secured by or payable from	561
revenues from phase-in-recovery charges.	562

(D) "Bondholder" means any holder or owner of a	563
phase-in-recovery bond.	564

(E) "Financing costs" means any of the following:

565

(1) Principal, interest, and redemption premiums that are	566
payable on phase-in-recovery bonds;	567

(2) Any payment required under an ancillary agreement;

568

(3) Any amount required to fund or replenish a reserve	569
account or another account established under any indenture,	570
ancillary agreement, or other financing document relating to	571
phase-in-recovery bonds;	572

(4) Any costs of retiring or refunding any existing debt and	573
equity securities of an electric distribution utility in	574
connection with either the issuance of, or the use of proceeds	575
from, phase-in-recovery bonds;	576

(5) Any costs incurred by an electric distribution utility to	577
obtain modifications of or amendments to any indenture, financing	578
agreement, security agreement, or similar agreement or instrument	579
relating to any existing secured or unsecured obligation of the	580
electric distribution utility in connection with the issuance of	581
phase-in-recovery bonds;	582

(6) Any costs incurred by an electric distribution utility to	583
obtain any consent, release, waiver, or approval from any holder	584
of an obligation described in division (E)(5) of this section that	585
are necessary to be incurred for the electric distribution utility	586
to issue or cause the issuance of phase-in-recovery bonds;	587

(7) Any taxes, franchise fees, or license fees imposed on	588
phase-in-recovery revenues;	589

(8) Any costs related to issuing or servicing	590
phase-in-recovery bonds or related to obtaining a financing order,	591
including servicing fees and expenses, trustee fees and expenses,	592
legal, accounting, or other professional fees and expenses,	593
administrative fees, placement fees, underwriting fees,	594
capitalized interest and equity, and rating-agency fees;	595

(9) Any other similar costs that the public utilities	596
commission finds appropriate.	597

(F) "Financing order" means an order issued by the public	598
utilities commission under section 4928.232 of the Revised Code	599
that authorizes an electric distribution utility or an assignee to	600
issue phase-in-recovery bonds and recover phase-in-recovery	601
charges.	602

(G) "Final financing order" means a financing order that has	603
become final and has taken effect as provided in section 4928.233	604
of the Revised Code.	605

(H) "Financing party" means either of the following:

606

(1) Any trustee, collateral agent, or other person acting for	607
the benefit of any bondholder;	608

(2) Any party to an ancillary agreement, the rights and	609
obligations of which relate to or depend upon the existence of	610
phase-in-recovery property, the enforcement and priority of a	611
security interest in phase-in-recovery property, the timely	612
collection and payment of phase-in-recovery revenues, or a	613
combination of these factors.	614

(I) "Financing statement" has the same meaning as in section	615
1309.102 of the Revised Code.	616

(J) "Phase-in costs" means costs, inclusive of carrying	617
charges incurred before, on, or after ~~the effective date of this~~	618
~~section~~March 22, 2012, authorized by the commission before, on,	619
or after ~~the effective date of this section~~March 22, 2012, to be	620
securitized or deferred as regulatory assets in proceedings under	621
section 4909.18 of the Revised Code, sections 4928.141 to	622
4928.143, or 4928.144 of the Revised Code, or section 4928.14 of	623
the Revised Code as it existed prior to July 31, 2008, pursuant to	624
a final order for which appeals have been exhausted. "Phase-in	625
costs" excludes the following:	626

(1) With respect to any electric generating facility that, on	627
and after ~~the effective date of this section~~March 22, 2012, is	628
owned, in whole or in part, by an electric distribution utility	629
applying for a financing order under section 4928.231 of the	630
Revised Code, costs that are authorized under division (B)(2)(b)	631
or (c) of section 4928.143 of the Revised Code;	632

(2) Costs incurred after ~~the effective date of this section~~	633
March 22, 2012, related to the ongoing operation of an electric	634
generating facility, but not environmental clean-up or remediation	635
costs incurred by an electric distribution utility because of its	636
ownership or operation of an electric generating facility prior to	637
~~the effective date of this section~~March 22, 2012, which such	638
clean-up or remediation costs are imposed or incurred pursuant to	639
federal or state law, rules, or regulations and for which the	640
commission approves recovery in accordance with section 4909.18 of	641
the Revised Code, sections 4928.141 to 4928.143, or 4928.144 of	642
the Revised Code, or section 4928.14 of the Revised Code as it	643
existed prior to July 31, 2008.	644

(K) "Phase-in-recovery property" means the property, rights,	645
and interests of an electric distribution utility or an assignee	646
under a final financing order, including the right to impose,	647
charge, and collect the phase-in-recovery charges that shall be	648
used to pay and secure the payment of phase-in-recovery bonds and	649
financing costs, and including the right to obtain adjustments to	650
those charges, and any revenues, receipts, collections, rights to	651
payment, payments, moneys, claims, or other proceeds arising from	652
the rights and interests created under the final financing order.	653
"Phase-in-recovery property" does not include tangible personal	654
property constituting the generation, transmission, or	655
distribution property of an electric distribution utility or an	656
assignee thereof.	657

(L) "Phase-in-recovery revenues" means all revenues,	658
receipts, collections, payments, moneys, claims, or other proceeds	659
arising from phase-in-recovery property.	660

(M) "Successor" means, with respect to any entity, another	661
entity that succeeds by operation of law to the rights and	662
obligations of the first legal entity pursuant to any bankruptcy,	663
reorganization, restructuring, or other insolvency proceeding, any	664
merger, acquisition, or consolidation, or any sale or transfer of	665
assets, regardless of whether any of these occur as a result of a	666
restructuring of the electric power industry or otherwise.	667

Sec. 4928.2314. (A) The transfer and ownership of	668
phase-in-recovery property and the imposition, charging,	669
collection, and receipt of phase-in-recovery revenues under	670
sections 4928.231 to 4928.2317 of the Revised Code are exempt from	671
all taxes and similar charges imposed by the state or any county,	672
municipal corporation, school district, local authority, or other	673
subdivision.	674

(B) Phase-in-recovery bonds issued under a final financing	675
order shall not constitute a debt or a pledge of the faith and	676
credit or taxing power of this state or of any county, municipal	677
corporation, or any other political subdivision of this state.	678
Bondholders shall have no right to have taxes levied by this state	679
or the taxing authority of any county, municipal corporation, or	680
any other political subdivision of this state for the payment of	681
the principal of or interest on the bonds. The issuance of	682
phase-in-recovery bonds does not, directly, indirectly, or	683
contingently, obligate this state or any county, municipal	684
corporation, or political subdivision of this state to levy any	685
tax or make any appropriation for payment of the principal of or	686
interest on the bonds.	687

(C) Nothing in this section prohibits the levy of the tax	688
imposed under Chapter 5751. of the Revised Code.	689

Sec. 5703.061. The tax commissioner may cancel a debt owed to	690
the state arising from any tax administered by the commissioner if	691
the total amount of the debt does not exceed fifty dollars and if	692
the debt consists only of unpaid taxes due for a single reporting	693
period and of any penalty, interest, assessment, or other charge	694
arising from such unpaid taxes.	695

Sec. 5703.261. If(A) As used in this section:

696

(1) "Instrument" has the same meaning as in section 1303.03	697
of the Revised Code.	698

(2) "Financial transaction device" has the same meaning as in	699
section 113.40 of the Revised Code.	700

(B) If a taxpayer or employer required by any tax	701
administered by the department of taxation to pay taxes,	702
penalties, or interest makes payment of the taxes, penalties, or	703
interest with a ~~nonnegotiable or~~ dishonored instrument, an	704
instrument that is determined to be nonnegotiable, or with any	705
financial transaction device that is declined, returned, or	706
dishonored, a penalty of fifty dollars shall be added to the	707
amount due. The penalty imposed by this section shall be assessed	708
and collected in the same manner as the taxes, penalties, or	709
interest. All or part of any penalty imposed under this section	710
may be abated by the tax commissioner.	711

Sec. 5703.37. (A)(1) Except as provided in division (B) of	712
this section, whenever service of a notice or order is required in	713
the manner provided in this section, a copy of the notice or order	714
shall be served upon the person affected thereby either by	715
personal service, by certified mail, or by a delivery service	716
authorized under section 5703.056 of the Revised Code that	717
notifies the tax commissioner of the date of delivery.	718

(2) ~~With the permission of the person affected by the notice~~	719
~~or order, the commissioner may enter into a written agreement to~~	720
~~deliver a notice or order by~~In lieu of serving a copy of a notice	721
or order through one of the means provided in division (A)(1) of	722
this section, the commissioner may serve a notice or order upon	723
the person affected thereby through alternative means as provided	724
in this section, including, but not limited to, delivery by secure	725
electronic mail as provided in division (F) of this section.	726
Delivery by such means satisfies the requirements for delivery	727
under this section.	728

(B)(1)(a) If certified mail is returned because of an	729
undeliverable address, the commissioner shall first utilize	730
reasonable means to ascertain a new last known address, including	731
the use of a change of address service offered by the United	732
States postal service or an authorized delivery service under	733
section 5703.056 of the Revised Code. If, after using reasonable	734
means, the commissioner is unable to ascertain a new last known	735
address, the assessment is final for purposes of section 131.02 of	736
the Revised Code sixty days after the notice or order sent by	737
certified mail is first returned to the commissioner, and the	738
commissioner shall certify the notice or order, if applicable, to	739
the attorney general for collection under section 131.02 of the	740
Revised Code.	741

(b) Notwithstanding certification to the attorney general	742
under division (B)(1)(a) of this section, once the commissioner or	743
attorney general, or the designee of either, makes an initial	744
contact with the person to whom the notice or order is directed,	745
the person may protest an assessment by filing a petition for	746
reassessment within sixty days after the initial contact. The	747
certification of an assessment under division (B)(1)(a) of this	748
section is prima-facie evidence that delivery is complete and that	749
the notice or order is served.	750

(2) If mailing of a notice or order by certified mail is	751
returned for some cause other than an undeliverable address, the	752
~~tax~~ commissioner shall resend the notice or order by ordinary	753
mail. The notice or order shall show the date the commissioner	754
sends the notice or order and include the following statement:	755

"This notice or order is deemed to be served on the addressee	756
under applicable law ten days from the date this notice or order	757
was mailed by the commissioner as shown on the notice or order,	758
and all periods within which an appeal may be filed apply from and	759
after that date."	760

Unless the mailing is returned because of an undeliverable	761
address, the mailing of that information is prima-facie evidence	762
that delivery of the notice or order was completed ten days after	763
the commissioner sent the notice or order by ordinary mail and	764
that the notice or order was served.	765

If the ordinary mail is subsequently returned because of an	766
undeliverable address, the commissioner shall proceed under	767
division (B)(1)(a) of this section. A person may challenge the	768
presumption of delivery and service under this division in	769
accordance with division (C) of this section.	770

(C)(1) A person disputing the presumption of delivery and	771
service under division (B) of this section bears the burden of	772
proving by a preponderance of the evidence that the address to	773
which the notice or order was sent was not an address with which	774
the person was associated at the time the commissioner originally	775
mailed the notice or order by certified mail. For the purposes of	776
this section, a person is associated with an address at the time	777
the commissioner originally mailed the notice or order if, at that	778
time, the person was residing, receiving legal documents, or	779
conducting business at the address; or if, before that time, the	780
person had conducted business at the address and, when the notice	781
or order was mailed, the person's agent or the person's affiliate	782
was conducting business at the address. For the purposes of this	783
section, a person's affiliate is any other person that, at the	784
time the notice or order was mailed, owned or controlled at least	785
twenty per cent, as determined by voting rights, of the	786
addressee's business.	787

(2) If the person elects to protest an assessment certified	788
to the attorney general for collection, the person must do so	789
within sixty days after the attorney general's initial contact	790
with the person. The attorney general may enter into a compromise	791
with the person under sections 131.02 and 5703.06 of the Revised	792
Code if the person does not file a petition for reassessment with	793
the ~~tax~~ commissioner.	794

(D) Nothing in this section prohibits the ~~tax~~ commissioner or	795
the commissioner's designee from delivering a notice or order by	796
personal service.	797

(E) Collection actions taken pursuant to section 131.02 of	798
the Revised Code upon any assessment being challenged under	799
division (B)(1)(b) of this section shall be stayed upon the	800
pendency of an appeal under this section. If a petition for	801
reassessment is filed pursuant to this section on a claim that has	802
been certified to the attorney general for collection, the claim	803
shall be uncertified.	804

(F) The commissioner may serve a notice or order upon the	805
person affected by the notice or order through secure electronic	806
means only with the person's consent. The commissioner must inform	807
the recipient, electronically or by mail, that a notice or order	808
is available for electronic review and provide instructions to	809
access and print the notice or order. The recipient's electronic	810
access of the notice or order satisfies the requirements for	811
delivery under this section. If the recipient fails to access the	812
notice or order electronically within ten business days, the	813
notice or order shall be served upon the person through one of the	814
means provided in division (A)(1) of this section.	815

(G) As used in this section:

816

(1) "Last known address" means the address the department has	817
at the time the document is originally sent by certified mail, or	818
any address the department can ascertain using reasonable means	819
such as the use of a change of address service offered by the	820
United States postal service or an authorized delivery service	821
under section 5703.056 of the Revised Code.	822

(2) "Undeliverable address" means an address to which the	823
United States postal service or an authorized delivery service	824
under section 5703.056 of the Revised Code is not able to deliver	825
a notice or order, except when the reason for nondelivery is	826
because the addressee fails to acknowledge or accept the notice or	827
order.	828

Sec. 5703.47. (A) As used in this section, "federal	829
short-term rate" means the rate of the average market yield on	830
outstanding marketable obligations of the United States with	831
remaining periods to maturity of three years or less, as	832
determined under section 1274 of the "Internal Revenue Code of	833
1986," 100 Stat. 2085, 26 U.S.C.A. 1274, for July of the current	834
year.	835

(B) On the fifteenth day of October of each year, the tax	836
commissioner shall determine the federal short-term rate. For	837
purposes of any section of the Revised Code requiring interest to	838
be computed at the rate per annum required by this section, the	839
rate determined by the commissioner under this section, rounded to	840
the nearest whole number per cent, plus ~~three~~one per cent, shall	841
be the interest rate per annum used in making the computation for	842
interest that accrues during the following calendar year. ~~For the~~	843
~~purposes of sections 5719.041 and 5731.23 of the Revised Code,~~	844
~~references to the "federal short-term rate" are references to the~~	845
~~federal short-term rate as determined by the tax commissioner~~	846
~~under this section rounded to the nearest whole number per cent.~~	847

(C) Within ten days after the interest rate per annum is	848
determined under this section, the tax commissioner shall notify	849
the auditor of each county ~~in writing~~ of that rate of interest.	850

Sec. 5727.84. (A) As used in this section and sections	851
5727.85, 5727.86, and 5727.87 of the Revised Code:	852

(1) "School district" means a city, local, or exempted	853
village school district.	854

(2) "Joint vocational school district" means a joint	855
vocational school district created under section 3311.16 of the	856
Revised Code, and includes a cooperative education school district	857
created under section 3311.52 or 3311.521 of the Revised Code and	858
a county school financing district created under section 3311.50	859
of the Revised Code.	860

(3) "Local taxing unit" means a subdivision or taxing unit,	861
as defined in section 5705.01 of the Revised Code, a park district	862
created under Chapter 1545. of the Revised Code, or a township	863
park district established under section 511.23 of the Revised	864
Code, but excludes school districts and joint vocational school	865
districts.	866

(4) "State education aid," for a school district, means the	867
following:	868

(a) For fiscal years prior to fiscal year 2010, the sum of	869
state aid amounts computed for the district under the following	870
provisions, as they existed for the applicable fiscal year:	871
divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section	872
3317.022; divisions (B), (C), and (D) of section 3317.023;	873
divisions (G), (L), and (N) of section 3317.024; and sections	874
3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and	875
3317.053 of the Revised Code; and the adjustments required by:	876
division (C) of section 3310.08; division (C)(2) of section	877
3310.41; division (C) of section 3314.08; division (D)(2) of	878
section 3314.091; division (D) of section 3314.13; divisions (E),	879
(K), (L), (M), and (N) of section 3317.023; division (C) of	880
section 3317.20; and sections 3313.979 and 3313.981 of the Revised	881
Code. However, when calculating state education aid for a school	882
district for fiscal years 2008 and 2009, include the amount	883
computed for the district under Section 269.20.80 of H.B. 119 of	884
the 127th general assembly, as subsequently amended, instead of	885
division (D) of section 3317.022 of the Revised Code; and include	886
amounts calculated under Section 269.30.80 of H.B. 119 of the	887
127th general assembly, as subsequently amended.	888

(b) For fiscal years 2010 and 2011, the sum of the amounts	889
computed for the district under former sections 3306.052, 3306.12,	890
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code and	891
the following provisions, as they existed for the applicable	892
fiscal year: division (G) of section 3317.024; sections 3317.05,	893
3317.052, and 3317.053 of the Revised Code; and the adjustments	894
required by division (C) of section 3310.08; division (C)(2) of	895
section 3310.41; division (C) of section 3314.08; division (D)(2)	896
of section 3314.091; division (D) of section 3314.13; divisions	897
(E), (K), (L), (M), and (N) of section 3317.023; division (C) of	898
section 3317.20; and sections 3313.979, 3313.981, and 3326.33 of	899
the Revised Code.	900

(c) For fiscal years 2012 and 2013, the amount paid in	901
accordance with the section of H.B. 153 of the 129th general	902
assembly entitled "FUNDING FOR CITY, EXEMPTED VILLAGE, AND LOCAL	903
SCHOOL DISTRICTS" and the adjustments required by division (C) of	904
section 3310.08; division (C)(2) of section 3310.41; section	905
3310.55; division (C) of section 3314.08; division (D)(2) of	906
section 3314.091; division (D) of section 3314.13; divisions (B),	907
(H), (I), (J), and (K) of section 3317.023; division (C) of	908
section 3317.20; and sections 3313.979 and 3313.981 of the Revised	909
Code.	910

(5) "State education aid," for a joint vocational school	911
district, means the following:	912

(a) For fiscal years prior to fiscal year 2010, the sum of	913
the state aid amounts computed for the district under division (N)	914
of section 3317.024 and section 3317.16 of the Revised Code.	915
However, when calculating state education aid for a joint	916
vocational school district for fiscal years 2008 and 2009, include	917
the amount computed for the district under Section 269.30.90 of	918
H.B. 119 of the 127th general assembly, as subsequently amended.	919

(b) For fiscal years 2010 and 2011, the amount computed for	920
the district in accordance with the section of H.B. 1 of the 128th	921
general assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL	922
DISTRICTS".	923

(c) For fiscal years 2012 and 2013, the amount paid in	924
accordance with the section of H.B. 153 of the 129th general	925
assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL DISTRICTS."	926

(6) "State education aid offset" means the amount determined	927
for each school district or joint vocational school district under	928
division (A)(1) of section 5727.85 of the Revised Code.	929

(7) "Recognized valuation" has the same meaning as in section	930
3317.02 of the Revised Code.	931

(8) "Electric company tax value loss" means the amount	932
determined under division (D) of this section.	933

(9) "Natural gas company tax value loss" means the amount	934
determined under division (E) of this section.	935

(10) "Tax value loss" means the sum of the electric company	936
tax value loss and the natural gas company tax value loss.	937

(11) "Fixed-rate levy" means any tax levied on property other	938
than a fixed-sum levy.	939

(12) "Fixed-rate levy loss" means the amount determined under	940
division (G) of this section.	941

(13) "Fixed-sum levy" means a tax levied on property at	942
whatever rate is required to produce a specified amount of tax	943
money or levied in excess of the ten-mill limitation to pay debt	944
charges, and includes school district emergency levies ~~imposed~~	945
charged and payable pursuant to section 5705.194 of the Revised	946
Code.	947

(14) "Fixed-sum levy loss" means the amount determined under	948
division (H) of this section.	949

(15) "Consumer price index" means the consumer price index	950
(all items, all urban consumers) prepared by the bureau of labor	951
statistics of the United States department of labor.	952

(16) "Total resources" ~~has~~and "total library resources" have	953
the same ~~meaning~~meanings as in section 5751.20 of the Revised	954
Code.	955

(17) "2011 current expense S.B. 3 allocation" means the sum	956
of payments received by a school district or joint vocational	957
school district in fiscal year 2011 for current expense levy	958
losses pursuant to division (C)(2) of section 5727.85 of the	959
Revised Code. If a fixed-rate levy eligible for reimbursement is	960
not ~~imposed~~charged and payable in any year after tax year 2010,	961
"2011 current expense S.B. 3 allocation" used to compute payments	962
to be made under division (C)(3) of section 5727.85 of the Revised	963
Code in the tax years following the last year the levy is ~~imposed~~	964
charged and payable shall be reduced ~~by the amount of~~to the	965
extent that those payments are attributable to the fixed-rate levy	966
loss of that levy.	967

(18) "2010 current expense S.B. 3 allocation" means the sum	968
of payments received by a municipal corporation in calendar year	969
2010 for current expense levy losses pursuant to division (A)(1)	970
of section 5727.86 of the Revised Code, excluding any such	971
payments received for current expense levy losses attributable to	972
a tax levied under section 5705.23 of the Revised Code. If a	973
fixed-rate levy eligible for reimbursement is not ~~imposed~~charged	974
and payable in any year after tax year 2010, "2010 current expense	975
S.B. 3 allocation" used to compute payments to be made under	976
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code	977
in the tax years following the last year the levy is ~~imposed~~	978
charged and payable shall be reduced ~~by the amount of~~to the	979
extent that those payments are attributable to the fixed-rate levy	980
loss of that levy.	981

(19) "2010 S.B. 3 allocation" means the sum of payments	982
received by a local taxing unit during calendar year 2010 pursuant	983
to division (A)(1) of section 5727.86 of the Revised Code,	984
excluding any such payments received for fixed-rate levy losses	985
attributable to a tax levied under section 5705.23 of the Revised	986
Code. If a fixed-rate levy eligible for reimbursement is not	987
~~imposed~~charged and payable in any year after tax year 2010, "2010	988
S.B. 3 allocation" used to compute payments to be made under	989
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code	990
in the tax years following the last year the levy is ~~imposed~~	991
charged and payable shall be reduced ~~by the amount of~~to the	992
extent that those payments are attributable to the fixed-rate levy	993
loss of that levy.	994

(20) "Total S.B. 3 allocation" means, in the case of a school	995
district or joint vocational school district, the sum of the	996
~~amounts~~payments received in fiscal year 2011 pursuant to	997
divisions (C)(2) and (D) of section 5727.85 of the Revised Code.	998
In the case of a local taxing unit, "total S.B. 3 allocation"	999
means the sum of payments received by the unit in calendar year	1000
2010 pursuant to divisions (A)(1) and (4) of section 5727.86 of	1001
the Revised Code, excluding any such payments received for	1002
fixed-rate levy losses attributable to a tax levied under section	1003
5705.23 of the Revised Code. If a fixed-rate levy eligible for	1004
reimbursement is not ~~imposed~~charged and payable in any year after	1005
tax year 2010, "total S.B. 3 allocation" used to compute payments	1006
to be made under division (C)(3) of section 5727.85 or division	1007
(A)(1)(d) or (e) of section 5727.86 of the Revised Code in the tax	1008
years following the last year the levy is ~~imposed~~charged and	1009
payable shall be reduced ~~by the amount of~~to the extent that those	1010
payments are attributable to the fixed-rate levy loss of that levy	1011
as would be computed under division (C)(2) of section 5727.85 or	1012
division (A)(1)(b) of section 5727.86 of the Revised Code.	1013

(21) "2011 non-current expense S.B. 3 allocation" means the	1014
difference of a school district's or joint vocational school	1015
district's total S.B. 3 allocation minus the sum of the school	1016
district's 2011 current expense S.B. 3 allocation and the portion	1017
of the school district's total S.B. 3 allocation constituting	1018
reimbursement for debt levies pursuant to division (D) of section	1019
5727.85 of the Revised Code.	1020

(22) "2010 non-current expense S.B. 3 allocation" means the	1021
difference of a municipal corporation's total S.B. 3 allocation	1022
minus the sum of its 2010 current expense S.B. 3 allocation and	1023
the portion of its total S.B. 3 allocation constituting	1024
reimbursement for debt levies pursuant to division (A)(4) of	1025
section 5727.86 of the Revised Code.	1026

(23) "S.B. 3 allocation for library purposes" means, in the	1027
case of a county, municipal corporation, school district, or	1028
township public library that receives the proceeds of a tax levied	1029
under section 5705.23 of the Revised Code, the sum of the payments	1030
received by the public library in calendar year 2010 pursuant to	1031
section 5727.86 of the Revised Code for fixed-rate levy losses	1032
attributable to a tax levied under section 5705.23 of the Revised	1033
Code. If a fixed-rate levy authorized under section 5705.23 of the	1034
Revised Code that is eligible for reimbursement is not charged and	1035
payable in any year after tax year 2010, "S.B. 3 allocation for	1036
library purposes" used to compute payments to be made under	1037
division (A)(1)(f) of section 5727.86 of the Revised Code in the	1038
tax years following the last year the levy is charged and payable	1039
shall be reduced to the extent that those payments are	1040
attributable to the fixed-rate levy loss of that levy as would be	1041
computed under division (A)(1)(b) of section 5727.86 of the	1042
Revised Code.	1043

(24) "Threshold per cent" means, in the case of a school	1044
district or joint vocational school district, two per cent for	1045
fiscal year 2012 and four per cent for fiscal years 2013 and	1046
thereafter. In the case of a local taxing unit or public library	1047
that receives the proceeds of a tax levied under section 5705.23	1048
of the Revised Code, "threshold per cent" means two per cent for	1049
calendar year 2011, four per cent for calendar year 2012, and six	1050
per cent for calendar years 2013 and thereafter.	1051

(B) The kilowatt-hour tax receipts fund is hereby created in	1052
the state treasury and shall consist of money arising from the tax	1053
imposed by section 5727.81 of the Revised Code. All money in the	1054
kilowatt-hour tax receipts fund shall be credited as follows:	1055

Fiscal Year	General Revenue Fund	School District Property Tax Replacement Fund	Local Government Property Tax Replacement Fund	1056
2001-2011	63.0%	25.4%	11.6%	1057
2012 and thereafter	88.0%	9.0%	3.0%	1058

(C) The natural gas tax receipts fund is hereby created in	1059
the state treasury and shall consist of money arising from the tax	1060
imposed by section 5727.811 of the Revised Code. All money in the	1061
fund shall be credited as follows:	1062

(1) For fiscal years before fiscal year 2012:

1063

(a) Sixty-eight and seven-tenths per cent shall be credited	1064
to the school district property tax replacement fund for the	1065
purpose of making the payments described in section 5727.85 of the	1066
Revised Code.	1067

(b) Thirty-one and three-tenths per cent shall be credited to	1068
the local government property tax replacement fund for the purpose	1069
of making the payments described in section 5727.86 of the Revised	1070
Code.	1071

(2) For fiscal years 2012 and thereafter, one hundred per	1072
cent to the general revenue fund.	1073

(D) Not later than January 1, 2002, the tax commissioner	1074
shall determine for each taxing district its electric company tax	1075
value loss, which is the sum of the applicable amounts described	1076
in divisions (D)(1) to (4) of this section:	1077

(1) The difference obtained by subtracting the amount	1078
described in division (D)(1)(b) from the amount described in	1079
division (D)(1)(a) of this section.	1080

(a) The value of electric company and rural electric company	1081
tangible personal property as assessed by the tax commissioner for	1082
tax year 1998 on a preliminary assessment, or an amended	1083
preliminary assessment if issued prior to March 1, 1999, and as	1084
apportioned to the taxing district for tax year 1998;	1085

(b) The value of electric company and rural electric company	1086
tangible personal property as assessed by the tax commissioner for	1087
tax year 1998 had the property been apportioned to the taxing	1088
district for tax year 2001, and assessed at the rates in effect	1089
for tax year 2001.	1090

(2) The difference obtained by subtracting the amount	1091
described in division (D)(2)(b) from the amount described in	1092
division (D)(2)(a) of this section.	1093

(a) The three-year average for tax years 1996, 1997, and 1998	1094
of the assessed value from nuclear fuel materials and assemblies	1095
assessed against a person under Chapter 5711. of the Revised Code	1096
from the leasing of them to an electric company for those	1097
respective tax years, as reflected in the preliminary assessments;	1098

(b) The three-year average assessed value from nuclear fuel	1099
materials and assemblies assessed under division (D)(2)(a) of this	1100
section for tax years 1996, 1997, and 1998, as reflected in the	1101
preliminary assessments, using an assessment rate of twenty-five	1102
per cent.	1103

(3) In the case of a taxing district having a nuclear power	1104
plant within its territory, any amount, resulting in an electric	1105
company tax value loss, obtained by subtracting the amount	1106
described in division (D)(1) of this section from the difference	1107
obtained by subtracting the amount described in division (D)(3)(b)	1108
of this section from the amount described in division (D)(3)(a) of	1109
this section.	1110

(a) The value of electric company tangible personal property	1111
as assessed by the tax commissioner for tax year 2000 on a	1112
preliminary assessment, or an amended preliminary assessment if	1113
issued prior to March 1, 2001, and as apportioned to the taxing	1114
district for tax year 2000;	1115

(b) The value of electric company tangible personal property	1116
as assessed by the tax commissioner for tax year 2001 on a	1117
preliminary assessment, or an amended preliminary assessment if	1118
issued prior to March 1, 2002, and as apportioned to the taxing	1119
district for tax year 2001.	1120

(4) In the case of a taxing district having a nuclear power	1121
plant within its territory, the difference obtained by subtracting	1122
the amount described in division (D)(4)(b) of this section from	1123
the amount described in division (D)(4)(a) of this section,	1124
provided that such difference is greater than ten per cent of the	1125
amount described in division (D)(4)(a) of this section.	1126

(a) The value of electric company tangible personal property	1127
as assessed by the tax commissioner for tax year 2005 on a	1128
preliminary assessment, or an amended preliminary assessment if	1129
issued prior to March 1, 2006, and as apportioned to the taxing	1130
district for tax year 2005;	1131

(b) The value of electric company tangible personal property	1132
as assessed by the tax commissioner for tax year 2006 on a	1133
preliminary assessment, or an amended preliminary assessment if	1134
issued prior to March 1, 2007, and as apportioned to the taxing	1135
district for tax year 2006.	1136

(E) Not later than January 1, 2002, the tax commissioner	1137
shall determine for each taxing district its natural gas company	1138
tax value loss, which is the sum of the amounts described in	1139
divisions (E)(1) and (2) of this section:	1140

(1) The difference obtained by subtracting the amount	1141
described in division (E)(1)(b) from the amount described in	1142
division (E)(1)(a) of this section.	1143

(a) The value of all natural gas company tangible personal	1144
property, other than property described in division (E)(2) of this	1145
section, as assessed by the tax commissioner for tax year 1999 on	1146
a preliminary assessment, or an amended preliminary assessment if	1147
issued prior to March 1, 2000, and apportioned to the taxing	1148
district for tax year 1999;	1149

(b) The value of all natural gas company tangible personal	1150
property, other than property described in division (E)(2) of this	1151
section, as assessed by the tax commissioner for tax year 1999 had	1152
the property been apportioned to the taxing district for tax year	1153
2001, and assessed at the rates in effect for tax year 2001.	1154

(2) The difference in the value of current gas obtained by	1155
subtracting the amount described in division (E)(2)(b) from the	1156
amount described in division (E)(2)(a) of this section.	1157

(a) The three-year average assessed value of current gas as	1158
assessed by the tax commissioner for tax years 1997, 1998, and	1159
1999 on a preliminary assessment, or an amended preliminary	1160
assessment if issued prior to March 1, 2001, and as apportioned in	1161
the taxing district for those respective years;	1162

(b) The three-year average assessed value from current gas	1163
under division (E)(2)(a) of this section for tax years 1997, 1998,	1164
and 1999, as reflected in the preliminary assessment, using an	1165
assessment rate of twenty-five per cent.	1166

(F) The tax commissioner may request that natural gas	1167
companies, electric companies, and rural electric companies file a	1168
report to help determine the tax value loss under divisions (D)	1169
and (E) of this section. The report shall be filed within thirty	1170
days of the commissioner's request. A company that fails to file	1171
the report or does not timely file the report is subject to the	1172
penalty in section 5727.60 of the Revised Code.	1173

(G) Not later than January 1, 2002, the tax commissioner	1174
shall determine for each school district, joint vocational school	1175
district, and local taxing unit its fixed-rate levy loss, which is	1176
the sum of its electric company tax value loss multiplied by the	1177
tax rate in effect in tax year 1998 for fixed-rate levies and its	1178
natural gas company tax value loss multiplied by the tax rate in	1179
effect in tax year 1999 for fixed-rate levies.	1180

(H) Not later than January 1, 2002, the tax commissioner	1181
shall determine for each school district, joint vocational school	1182
district, and local taxing unit its fixed-sum levy loss, which is	1183
the amount obtained by subtracting the amount described in	1184
division (H)(2) of this section from the amount described in	1185
division (H)(1) of this section:	1186

(1) The sum of the electric company tax value loss multiplied	1187
by the tax rate in effect in tax year 1998, and the natural gas	1188
company tax value loss multiplied by the tax rate in effect in tax	1189
year 1999, for fixed-sum levies for all taxing districts within	1190
each school district, joint vocational school district, and local	1191
taxing unit. For the years 2002 through 2006, this computation	1192
shall include school district emergency levies that existed in	1193
1998 in the case of the electric company tax value loss, and 1999	1194
in the case of the natural gas company tax value loss, and all	1195
other fixed-sum levies that existed in 1998 in the case of the	1196
electric company tax value loss and 1999 in the case of the	1197
natural gas company tax value loss and continue to be charged in	1198
the tax year preceding the distribution year. For the years 2007	1199
through 2016 in the case of school district emergency levies, and	1200
for all years after 2006 in the case of all other fixed-sum	1201
levies, this computation shall exclude all fixed-sum levies that	1202
existed in 1998 in the case of the electric company tax value loss	1203
and 1999 in the case of the natural gas company tax value loss,	1204
but are no longer in effect in the tax year preceding the	1205
distribution year. For the purposes of this section, an emergency	1206
levy that existed in 1998 in the case of the electric company tax	1207
value loss, and 1999 in the case of the natural gas company tax	1208
value loss, continues to exist in a year beginning on or after	1209
January 1, 2007, but before January 1, 2017, if, in that year, the	1210
board of education levies a school district emergency levy for an	1211
annual sum at least equal to the annual sum levied by the board in	1212
tax year 1998 or 1999, respectively, less the amount of the	1213
payment certified under this division for 2002.	1214

(2) The total taxable value in tax year 1999 less the tax	1215
value loss in each school district, joint vocational school	1216
district, and local taxing unit multiplied by one-fourth of one	1217
mill.	1218

If the amount computed under division (H) of this section for	1219
any school district, joint vocational school district, or local	1220
taxing unit is greater than zero, that amount shall equal the	1221
fixed-sum levy loss reimbursed pursuant to division (F) of section	1222
5727.85 of the Revised Code or division (A)(2) of section 5727.86	1223
of the Revised Code, and the one-fourth of one mill that is	1224
subtracted under division (H)(2) of this section shall be	1225
apportioned among all contributing fixed-sum levies in the	1226
proportion of each levy to the sum of all fixed-sum levies within	1227
each school district, joint vocational school district, or local	1228
taxing unit.	1229

(I) Notwithstanding divisions (D), (E), (G), and (H) of this	1230
section, in computing the tax value loss, fixed-rate levy loss,	1231
and fixed-sum levy loss, the tax commissioner shall use the	1232
greater of the 1998 tax rate or the 1999 tax rate in the case of	1233
levy losses associated with the electric company tax value loss,	1234
but the 1999 tax rate shall not include for this purpose any tax	1235
levy approved by the voters after June 30, 1999, and the tax	1236
commissioner shall use the greater of the 1999 or the 2000 tax	1237
rate in the case of levy losses associated with the natural gas	1238
company tax value loss.	1239

(J) Not later than January 1, 2002, the tax commissioner	1240
shall certify to the department of education the tax value loss	1241
determined under divisions (D) and (E) of this section for each	1242
taxing district, the fixed-rate levy loss calculated under	1243
division (G) of this section, and the fixed-sum levy loss	1244
calculated under division (H) of this section. The calculations	1245
under divisions (G) and (H) of this section shall separately	1246
display the levy loss for each levy eligible for reimbursement.	1247

(K) Not later than September 1, 2001, the tax commissioner	1248
shall certify the amount of the fixed-sum levy loss to the county	1249
auditor of each county in which a school district with a fixed-sum	1250
levy loss has territory.	1251

Sec. 5727.86. (A) ~~Not later than January 1, 2002, the~~The	1252
tax commissioner shall compute the payments to be made to each	1253
local taxing unit, and to each public library that receives the	1254
proceeds of a tax levied under section 5705.23 of the Revised	1255
Code, for each year according to divisions (A)(1), (2), (3), and	1256
(4) and division (E) of this section, and shall distribute the	1257
payments in the manner prescribed by division (C) of this section.	1258
The calculation of the fixed-sum levy loss shall cover a time	1259
period sufficient to include all fixed-sum levies for which the	1260
tax commissioner determined, pursuant to division (H) of section	1261
5727.84 of the Revised Code, that a fixed-sum levy loss is to be	1262
reimbursed.	1263

(1) Except as provided in divisions (A)(3) and (4) of this	1264
section, the following amounts shall be paid on or before the	1265
thirty-first day of August and the twenty-eighth day of February:	1266

(a) For years 2002 through 2006, fifty per cent of the	1267
fixed-rate levy loss computed under division (G) of section	1268
5727.84 of the Revised Code;	1269

(b) For years 2007 through 2010, forty per cent of the	1270
fixed-rate levy loss computed under division (G) of section	1271
5727.84 of the Revised Code;	1272

(c) For the payment in 2011 to be made on or before the	1273
twentieth day of February, the amount required to be paid in 2010	1274
on or before the twentieth day of February;	1275

(d) For the payment in 2011 to be made on or before the	1276
thirty-first day of August ~~and for all payments to be made in~~	1277
~~years 2012 and thereafter~~, the sum of the amounts in divisions	1278
(A)(1)(d)(i) or (ii) and (iii) of this section:	1279

(i) If the ratio of fifty per cent of the taxing unit's 2010	1280
S.B. 3 allocation to its total resources is equal to or less than	1281
the threshold per cent, zero;	1282

(ii) If the ratio of fifty per cent of the taxing unit's 2010	1283
S.B. 3 allocation to its total resources is greater than the	1284
threshold per cent, the difference of fifty per cent of the 2010	1285
S.B. 3 allocation minus the product of total resources multiplied	1286
by the threshold per cent;	1287

(iii) In the case of a municipal corporation, fifty per cent	1288
of the product of its 2010 non-current expense S.B. 3 allocation	1289
multiplied by seventy-five per cent ~~for year 2011, fifty per cent~~	1290
~~for year 2012, and twenty-five percent for years 2013 and~~	1291
~~thereafter~~.	1292

(e) For 2012 and each year thereafter, the sum of the amounts	1293
in divisions (A)(1)(e)(i) or (ii) and (iii) of this section:	1294

(i) If the ratio of the taxing unit's 2010 S.B. 3 allocation	1295
to its total resources is equal to or less than the threshold per	1296
cent, zero;	1297

(ii) If the ratio of the taxing unit's 2010 S.B. 3 allocation	1298
to its total resources is greater than the threshold per cent,	1299
fifty per cent of the difference of the 2010 S.B. 3 allocation	1300
minus the product of total resources multiplied by the threshold	1301
per cent;	1302

(iii) In the case of a municipal corporation, fifty per cent	1303
of the product of its 2010 non-current expense S.B. 3 allocation	1304
multiplied by fifty per cent for year 2012 and by twenty-five per	1305
cent for years 2013 and thereafter.	1306

(f) For the payment in 2012 to be made to a public library on	1307
or before the thirty-first day of August and for all such payments	1308
to be made in 2013 and thereafter, the amount in division	1309
(A)(1)(f)(i) or (ii) of this section:	1310

(i) If the ratio of S.B. 3 allocation for library purposes to	1311
total library resources is equal to or less than the threshold per	1312
cent, zero;	1313

(ii) If the ratio of S.B. 3 allocation for library purposes	1314
to total library resources is greater than the threshold per cent,	1315
fifty per cent of the difference of the S.B. 3 allocation for	1316
library purposes minus the product of total library resources	1317
multiplied by the threshold per cent.	1318

(2) For fixed-sum levy losses determined under division (H)	1319
of section 5727.84 of the Revised Code, payments shall be made in	1320
the amount of one hundred per cent of the fixed-sum levy loss for	1321
payments required to be made in 2002 and thereafter.	1322

(3) A local taxing unit in a county of less than two hundred	1323
fifty square miles that receives eighty per cent or more of its	1324
combined general fund and bond retirement fund revenues from	1325
property taxes and rollbacks based on 1997 actual revenues as	1326
presented in its 1999 tax budget, and in which electric companies	1327
and rural electric companies comprise over twenty per cent of its	1328
property valuation, shall receive one hundred per cent of its	1329
fixed-rate levy losses from electric company tax value losses	1330
certified under division (A) of this section in years 2002 to	1331
2010. Beginning in 2011, payments for such local taxing units	1332
shall be determined under division (A)(1) of this section.	1333

(4) For taxes levied within the ten-mill limitation or	1334
pursuant to a municipal charter for debt purposes in tax year 1998	1335
in the case of electric company tax value losses, and in tax year	1336
1999 in the case of natural gas company tax value losses, payments	1337
shall be made equal to one hundred per cent of the loss computed	1338
as if the tax were a fixed-rate levy, but those payments shall	1339
extend from 2011 through 2016 if the levy was ~~imposed~~charged and	1340
payable for debt purposes in tax year 2010. If the levy is not	1341
~~imposed~~charged and payable for debt purposes in tax year 2010 or	1342
any following tax year before tax year 2016, payments for that	1343
levy shall be made under division (A)(1) of this section beginning	1344
with the first year after the year the levy is ~~imposed~~charged and	1345
payable for a purpose other than debt. For the purposes of this	1346
division, taxes levied pursuant to a municipal charter refer to	1347
taxes levied pursuant to a provision of a municipal charter that	1348
permits the tax to be levied without prior voter approval.	1349

(B) Beginning in 2003, by the thirty-first day of January of	1350
each year, the tax commissioner shall review the calculation	1351
originally made under division (A) of this section of the	1352
fixed-sum levy loss determined under division (H) of section	1353
5727.84 of the Revised Code. If the commissioner determines that a	1354
fixed-sum levy that had been scheduled to be reimbursed in the	1355
current year has expired, a revised calculation for that and all	1356
subsequent years shall be made.	1357

(C) Payments to local taxing units and public libraries	1358
required to be made under divisions (A) and (E) of this section	1359
shall be paid from the local government property tax replacement	1360
fund to the county undivided income tax fund in the proper county	1361
treasury. The county treasurer shall distribute amounts paid under	1362
division (A) of this section to the proper local taxing unit or	1363
public library as if they had been levied and collected as taxes,	1364
and the local taxing unit or public library shall apportion the	1365
amounts so received among its funds in the same proportions as if	1366
those amounts had been levied and collected as taxes. Except in	1367
the case of amounts distributed to the county as a local taxing	1368
unit, amounts distributed under division (E)(2) of this section	1369
shall be credited to the general fund of the local taxing unit	1370
that receives them. Amounts distributed to each county as a local	1371
taxing unit under division (E)(2) of this section shall be	1372
credited in the proportion that the current taxes charged and	1373
payable from each levy of or by the county bears to the total	1374
current taxes charged and payable from all levies of or by the	1375
county.	1376

(D) By February 5, 2002, the tax commissioner shall estimate	1377
the amount of money in the local government property tax	1378
replacement fund in excess of the amount necessary to make	1379
payments in that month under division (C) of this section.	1380
Notwithstanding division (A) of this section, the tax commissioner	1381
may pay any local taxing unit, from those excess funds, nine and	1382
four-tenths times the amount computed for 2002 under division	1383
(A)(1) of this section. A payment made under this division shall	1384
be in lieu of the payment to be made in February 2002 under	1385
division (A)(1) of this section. A local taxing unit receiving a	1386
payment under this division will no longer be entitled to any	1387
further payments under division (A)(1) of this section. A payment	1388
made under this division shall be paid from the local government	1389
property tax replacement fund to the county undivided income tax	1390
fund in the proper county treasury. The county treasurer shall	1391
distribute the payment to the proper local taxing unit as if it	1392
had been levied and collected as taxes, and the local taxing unit	1393
shall apportion the amounts so received among its funds in the	1394
same proportions as if those amounts had been levied and collected	1395
as taxes.	1396

(E)(1) On the thirty-first day of July of 2002, 2003, 2004,	1397
2005, and 2006, and on the thirty-first day of January and July of	1398
2007 through January 2011, if the amount credited to the local	1399
government property tax replacement fund exceeds the amount needed	1400
to be distributed from the fund under division (A) of this section	1401
in the following month, the tax commissioner shall distribute the	1402
excess to each county as follows:	1403

(a) One-half shall be distributed to each county in	1404
proportion to each county's population.	1405

(b) One-half shall be distributed to each county in the	1406
proportion that the amounts determined under divisions (G) and (H)	1407
of section 5727.84 of the Revised Code for all local taxing units	1408
in the county is of the total amounts so determined for all local	1409
taxing units in the state.	1410

(2) The amounts distributed to each county under division (E)	1411
of this section shall be distributed by the county auditor to each	1412
local taxing unit in the county in the proportion that the unit's	1413
current taxes charged and payable are of the total current taxes	1414
charged and payable of all the local taxing units in the county.	1415
If the amount that the county auditor determines to be distributed	1416
to a local taxing unit is less than five dollars, that amount	1417
shall not be distributed, and the amount not distributed shall	1418
remain credited to the county undivided income tax fund. At the	1419
time of the next distribution under division (E)(2) of this	1420
section, any amount that had not been distributed in the prior	1421
distribution shall be added to the amount available for the next	1422
distribution prior to calculation of the amount to be distributed.	1423
As used in this division, "current taxes charged and payable"	1424
means the taxes charged and payable as most recently determined	1425
for local taxing units in the county.	1426

After January 2011, any amount that exceeds the amount needed	1427
to be distributed from the fund under division (A) of this section	1428
in the following month shall be transferred to the general revenue	1429
fund.	1430

(F) If the total amount in the local government property tax	1431
replacement fund is insufficient to make all payments under	1432
division (C) of this section at the times the payments are to be	1433
made, the director of budget and management shall transfer from	1434
the general revenue fund to the local government property tax	1435
replacement fund the difference between the total amount to be	1436
paid and the amount in the local government property tax	1437
replacement fund, except that no transfer shall be made by reason	1438
of a deficiency to the extent that it results from the amendment	1439
of section 5727.84 of the Revised Code by Amended Substitute House	1440
Bill 95 of the 125th general assembly.	1441

(G) If all or a part of the territories of two or more local	1442
taxing units are merged, or unincorporated territory of a township	1443
is annexed by a municipal corporation, the tax commissioner shall	1444
adjust the payments made under this section to each of the local	1445
taxing units in proportion to the square mileage apportioned to	1446
the merged or annexed territory, or as otherwise provided by a	1447
written agreement between the legislative authorities of the local	1448
taxing units certified to the tax commissioner not later than the	1449
first day of June of the calendar year in which the payment is to	1450
be made.	1451

Sec. 5731.39. ~~(A)~~This section does not apply to, and the	1452
written permission of the tax commissioner is not required for	1453
asset transfers with respect to, decedents dying on or after	1454
January 1, 2013.	1455

(A) No corporation organized or existing under the laws of	1456
this state shall transfer on its books or issue a new certificate	1457
for any share of its capital stock registered in the name of a	1458
decedent, or in trust for a decedent, or in the name of a decedent	1459
and another person or persons, without the written consent of the	1460
tax commissioner.	1461

(B) No safe deposit company, trust company, financial	1462
institution as defined in division (A) of section 5725.01 of the	1463
Revised Code or other corporation or person, having in possession,	1464
control, or custody a deposit standing in the name of a decedent,	1465
or in trust for a decedent, or in the name of a decedent and	1466
another person or persons, shall deliver or transfer an amount in	1467
excess of three-fourths of the total value of such deposit,	1468
including accrued interest and dividends, as of the date of	1469
decedent's death, without the written consent of the tax	1470
commissioner. The written consent of the tax commissioner need not	1471
be obtained prior to the delivery or transfer of amounts having a	1472
value of three-fourths or less of said total value.	1473

(C) No life insurance company shall pay the proceeds of an	1474
annuity or matured endowment contract, or of a life insurance	1475
contract payable to the estate of a decedent, or of any other	1476
insurance contract taxable under Chapter 5731. of the Revised	1477
Code, without the written consent of the tax commissioner. Any	1478
life insurance company may pay the proceeds of any insurance	1479
contract not specified in this division (C) without the written	1480
consent of the tax commissioner.	1481

(D) No trust company or other corporation or person shall pay	1482
the proceeds of any death benefit, retirement, pension or profit	1483
sharing plan in excess of two thousand dollars, without the	1484
written consent of the tax commissioner. Such trust company or	1485
other corporation or person, however, may pay the proceeds of any	1486
death benefit, retirement, pension, or profit-sharing plan which	1487
consists of insurance on the life of the decedent payable to a	1488
beneficiary other than the estate of the insured without the	1489
written consent of the tax commissioner.	1490

(E) No safe deposit company, trust company, financial	1491
institution as defined in division (A) of section 5725.01 of the	1492
Revised Code, or other corporation or person, having in	1493
possession, control, or custody securities, assets, or other	1494
property (including the shares of the capital stock of, or other	1495
interest in, such safe deposit company, trust company, financial	1496
institution as defined in division (A) of section 5725.01 of the	1497
Revised Code, or other corporation), standing in the name of a	1498
decedent, or in trust for a decedent, or in the name of a decedent	1499
and another person or persons, and the transfer of which is	1500
taxable under Chapter 5731. of the Revised Code, shall deliver or	1501
transfer any such securities, assets, or other property which have	1502
a value as of the date of decedent's death in excess of	1503
three-fourths of the total value thereof, without the written	1504
consent of the tax commissioner. The written consent of the tax	1505
commissioner need not be obtained prior to the delivery or	1506
transfer of any such securities, assets, or other property having	1507
a value of three-fourths or less of said total value.	1508

(F) No safe deposit company, financial institution as defined	1509
in division (A) of section 5725.01 of the Revised Code, or other	1510
corporation or person having possession or control of a safe	1511
deposit box or similar receptacle standing in the name of a	1512
decedent or in the name of the decedent and another person or	1513
persons, or to which the decedent had a right of access, except	1514
when such safe deposit box or other receptacle stands in the name	1515
of a corporation or partnership, or in the name of the decedent as	1516
guardian or executor, shall deliver any of the contents thereof	1517
unless the safe deposit box or similar receptacle has been opened	1518
and inventoried in the presence of the tax commissioner or the	1519
commissioner's agent, and a written consent to transfer issued;	1520
provided, however, that a safe deposit company, financial	1521
institution, or other corporation or person having possession or	1522
control of a safe deposit box may deliver wills, deeds to burial	1523
lots, and insurance policies to a representative of the decedent,	1524
but that a representative of the safe deposit company, financial	1525
institution, or other corporation or person must supervise the	1526
opening of the box and make a written record of the wills, deeds,	1527
and policies removed. Such written record shall be included in the	1528
tax commissioner's inventory records.	1529

(G) Notwithstanding any provision of this section:

1530

(1) The tax commissioner may authorize any delivery or	1531
transfer or waive any of the foregoing requirements under such	1532
terms and conditions as the commissioner may prescribe;	1533

(2) An adult care facility, as defined in section 5119.70 of	1534
the Revised Code, or a home, as defined in section 3721.10 of the	1535
Revised Code, may transfer or use the money in a personal needs	1536
allowance account in accordance with section 5111.113 of the	1537
Revised Code without the written consent of the tax commissioner,	1538
and without the account having been opened and inventoried in the	1539
presence of the commissioner or the commissioner's agent.	1540

Failure to comply with this section shall render such safe	1541
deposit company, trust company, life insurance company, financial	1542
institution as defined in division (A) of section 5725.01 of the	1543
Revised Code, or other corporation or person liable for the amount	1544
of the taxes and interest due under the provisions of Chapter	1545
5731. of the Revised Code on the transfer of such stock, deposit,	1546
proceeds of an annuity or matured endowment contract or of a life	1547
insurance contract payable to the estate of a decedent, or other	1548
insurance contract taxable under Chapter 5731. of the Revised	1549
Code, proceeds of any death benefit, retirement, pension, or	1550
profit sharing plan in excess of two thousand dollars, or	1551
securities, assets, or other property of any resident decedent,	1552
and in addition thereto, to a penalty of not less than five	1553
hundred or more than five thousand dollars.	1554

Sec. 5733.26. (A) Except as provided in section 5733.261 of	1555
the Revised Code, if the tax imposed by sections 5733.06,	1556
5733.065, and 5733.066 of the Revised Code for the tax year,	1557
reduced by the credits listed in section 5733.98 of the Revised	1558
Code, is not paid on or before the date prescribed for its	1559
payment, interest shall be assessed, collected, and paid, in the	1560
same manner as the tax, upon such unpaid amount at the rate per	1561
annum prescribed by section 5703.47 of the Revised Code from the	1562
date prescribed for its payment until it is paid or until the day	1563
an assessment is issued under section 5733.11 of the Revised Code,	1564
whichever occurs first. For estimated tax payments due under	1565
division (B) of section 5733.021 of the Revised Code, the interest	1566
due on the delinquent portion of the estimated tax required to be	1567
paid under that section shall be based on the tax owed for the tax	1568
year without regard to division (C) of section 5733.021 of the	1569
Revised Code.	1570

(B) ~~Interest~~Except as provided in division (C) of this	1571
section, interest shall be allowed and paid at the rate per annum	1572
prescribed by section 5703.47 of the Revised Code upon amounts	1573
refunded with respect to the tax imposed by sections 5733.06,	1574
5733.065, and 5733.066 of the Revised Code. The interest shall run	1575
from whichever of the following dates is the latest until the date	1576
the refund is paid: the date of the illegal, erroneous, or	1577
excessive payment; the ninetieth day after the final date the	1578
annual report under section 5733.02 of the Revised Code was	1579
required to be filed; or the ninetieth day after the date that	1580
report was filed.	1581

If the overpayment results from the carryback of a net	1582
capital loss to a previous taxable year, the overpayment is deemed	1583
not to have been made prior to the filing date, including any	1584
extension thereof, for the taxable year in which the net capital	1585
loss arises.	1586

(C) If a taxpayer claims a refundable credit against the tax	1587
imposed under section 5733.06 of the Revised Code, any payment	1588
that is refunded to the taxpayer as a result of the allowance of	1589
the credit shall not be considered an illegal, erroneous, or	1590
excessive payment for purposes of division (B) of this section. No	1591
interest shall be allowed on an amount refunded to a taxpayer to	1592
the extent that the refund results from the allowance of a	1593
refundable credit.	1594

Sec. 5735.02. (A) A motor fuel dealer shall not receive, use,	1595
sell, or distribute any motor fuel or engage in business within	1596
this state unless the motor fuel dealer holds an unrevoked license	1597
issued by the tax commissioner to engage in such business. To	1598

(B) To procure ~~such~~a motor fuel dealer's license, every	1599
motor fuel dealer shall file with the commissioner an application	1600
verified under oath by the applicant and in such form as the	1601
commissioner prescribes, setting forth, in addition to such other	1602
information required by the commissioner, the following:	1603

~~(A)~~(1) The name under which the motor fuel dealer will	1604
transact business within the state;	1605

~~(B)~~(2) The location, including street number address, of its	1606
principal office or place of business within this state;	1607

~~(C)~~(3) The name and address of the owner, or the names and	1608
addresses of the partners if such motor fuel dealer is a	1609
partnership, or the names and addresses of the principal officers	1610
if such motor fuel dealer is a corporation or an association;	1611

~~(D)~~(4) If such motor fuel dealer is a corporation organized	1612
under the laws of another state, territory, or country, a	1613
certified copy of the certificate or license issued by the Ohio	1614
secretary of state showing that such corporation is authorized to	1615
transact business in this state;	1616

~~(E)~~(5) An agreement that the motor fuel dealer will assume	1617
the liability and will pay the tax on any shipment of motor fuel	1618
made into the state from any other state or foreign country and	1619
sold or caused to be sold by such motor fuel dealer for delivery	1620
to a person in this state who is not the holder of an unrevoked	1621
motor fuel dealer's license.	1622

An(C)(1) Except as provided in division (C)(2) of this	1623
section, an application for a license shall be accompanied by a	1624
bond, of the character stipulated and in the amount provided for	1625
in section 5735.03 of the Revised Code, which shall be filed with	1626
the commissioner.	1627

(2) The tax commissioner may exempt a motor fuel dealer from	1628
the requirements set forth in division (C)(1) of this section and	1629
section 5753.03 of the Revised Code if the motor fuel dealer	1630
primarily sells or distributes motor fuel upon which the motor	1631
fuel taxes imposed under this chapter have been paid or are not	1632
required to be paid by the motor fuel dealer.	1633

(D) If any application for a license to transact business as	1634
a motor fuel dealer in the state is filed by any person who has	1635
had any license previously canceled for cause by the tax	1636
commissioner; if the commissioner believes that such application	1637
is not filed in good faith or that such application is filed as a	1638
subterfuge by some person for the real person in interest who has	1639
previously had any license canceled for cause by the tax	1640
commissioner; or if the person has violated any provision of this	1641
chapter, then the tax commissioner, after a hearing, of which the	1642
applicant shall be given five days' notice in writing and at which	1643
said applicant shall have the right to appear in person or by	1644
counsel and present testimony, may refuse to issue to such person	1645
a license to transact business as a motor fuel dealer in the	1646
state.	1647

(E) When the application in proper form has been accepted for	1648
filing, and the bond accepted and approved, the commissioner shall	1649
issue to such motor fuel dealer a license to transact business as	1650
a motor fuel dealer in the state, subject to cancellation of such	1651
license as provided by law.	1652

(F) No person shall make a false or fraudulent statement on	1653
the application required by this section.	1654

Sec. 5735.03. ~~Every~~Except as provided in division (C)(2) of	1655
section 5735.02 of the Revised Code, every motor fuel dealer shall	1656
file with the tax commissioner a surety bond of not less than five	1657
thousand dollars, but may be required by the tax commissioner to	1658
submit a surety bond equal to three months' average tax liability,	1659
on a form approved by and with a surety satisfactory to the	1660
commissioner, upon which the motor fuel dealer shall be the	1661
principal obligor and the state shall be the obligee, conditioned	1662
upon the prompt filing of true reports and the payment by the	1663
motor fuel dealer to the treasurer of state of all motor fuel	1664
excise taxes levied by the state, provided that after notice is	1665
received from the state by the surety of the delinquency of any	1666
taxes, if the surety pays the taxes within thirty days after the	1667
receipt of the notice no penalties or interest shall be charged	1668
against the surety. If the surety does not pay the taxes within	1669
thirty days, but does pay within ninety days from the date of the	1670
receipt of notice from the state by the surety, no penalty shall	1671
be assessed against the surety but the surety shall pay interest	1672
at the rate of six per cent per annum on the unpaid taxes from the	1673
date the taxes are due and payable. If the surety does not pay	1674
within ninety days then the surety shall be liable for interest	1675
and penalties, and the tax commissioner may cancel all bonds	1676
issued by the surety.	1677

The commissioner may increase or reduce the amount of the	1678
bond required to be filed by any licensed motor fuel dealer. If	1679
the commissioner finds that it is necessary to increase the bond	1680
to assure payment of the tax, the bond may be increased to an	1681
amount equal to three months/average liability or fifty thousand	1682
dollars, whichever is greater.	1683

If liability upon the bond thus filed by the motor fuel	1684
dealer with the commissioner is discharged or reduced, whether by	1685
judgment rendered, payment made, or otherwise, or if, in the	1686
opinion of the commissioner any surety on the bond theretofore	1687
given has become unsatisfactory or unacceptable, the commissioner	1688
may require the motor fuel dealer to file a new bond with	1689
satisfactory sureties in the same amount, and if a new bond is not	1690
filed the commissioner shall forthwith cancel the license of the	1691
motor fuel dealer. If a new bond is furnished by the motor fuel	1692
dealer, the commissioner shall cancel and surrender the bond of	1693
the motor fuel dealer for which the new bond is substituted.	1694

A surety on a bond furnished by a motor fuel dealer shall be	1695
released from all liability to the state accruing on the bond	1696
after the expiration of sixty days from the date upon which the	1697
surety lodges with the commissioner a written request to be	1698
released. The request shall not operate to release the surety from	1699
any liability already accrued, or which accrues before the	1700
expiration of the sixty-day period. The commissioner shall	1701
promptly on receipt of notice of the request notify the motor fuel	1702
dealer who furnished the bond and, unless the motor fuel dealer on	1703
or before the expiration of the sixty-day period files with the	1704
commissioner a new bond with a surety satisfactory to the	1705
commissioner in the amount and form provided in this section, the	1706
commissioner shall forthwith cancel the license of the motor fuel	1707
dealer. If the new bond is furnished by said motor fuel dealer,	1708
the commissioner shall cancel and surrender the bond of the motor	1709
fuel dealer for which the new bond is substituted.	1710

The commissioner, in lieu of any surety bond required by this	1711
section, may accept a deposit by a motor fuel dealer of cash. Any	1712
cash thus accepted shall be deposited with the treasurer of state	1713
to be held by the treasurer of state, in the same manner as other	1714
cash required to be deposited with the treasurer of state under	1715
the laws of the state, for the account of such motor fuel dealer	1716
and subject to any lawful claim of the state for any excise tax	1717
upon motor fuel, and penalties and interest thereon levied by the	1718
laws of this state. The state shall have a lien upon cash thus	1719
deposited for the amount of any motor fuel excise taxes and	1720
penalty and interest due to the state from the motor fuel dealer	1721
in whose behalf they were deposited. The amount of cash to be thus	1722
accepted shall in all respects be determined in the same manner as	1723
provided in this section for the amount of surety bonds. Any cash	1724
deposited shall be subject to levy upon execution to satisfy any	1725
judgment secured in any action by the state to recover any motor	1726
fuel excise taxes, and penalties and interest found to be due to	1727
the state from such motor fuel dealer. The cash shall be released	1728
by the treasurer of state upon certificate of the commissioner	1729
that the license of the motor fuel dealer in whose behalf they	1730
have been deposited has been canceled or that other security has	1731
been accepted in lieu thereof, and that the state asserts no claim	1732
thereto.	1733

Sec. 5735.35. (A)(1) If any ~~corporation or business trust~~	1734
person, regardless of organizational form, required to file	1735
reports and to remit taxes imposed under this chapter fails for	1736
any reason to file such reports or pay such taxes, any employees	1737
of the ~~corporation or business trust~~person having control or	1738
supervision of, or charged with the responsibility of, filing	1739
reports and making payments, or any officers or trustees of the	1740
~~corporation or business trust~~person responsible for the execution	1741
of the ~~corporation's or business trust's~~person's fiscal	1742
responsibilities, are personally liable for the ~~unpaid liability~~	1743
~~resulting from the~~ failure ~~to file such reports or pay such taxes~~.	1744

(2) The dissolution, termination, or bankruptcy of a	1745
~~corporation or business trust~~person shall not discharge a	1746
responsible officer's, shareholder's, member's, manager's,	1747
employee's, or trustee's liability for failure of the person to	1748
file reports or remit taxes. The sum due for the liability may be	1749
collected by assessment in the manner provided in sections 5735.12	1750
and 5735.121 of the Revised Code.	1751

(B) If more than one ~~person~~individual is personally liable	1752
under this section for the unpaid tax of a ~~corporation or business~~	1753
~~trust~~person, then the liability of all such individuals shall be	1754
joint and several.	1755

Sec. 5739.01. As used in this chapter:

1756

(A) "Person" includes individuals, receivers, assignees,	1757
trustees in bankruptcy, estates, firms, partnerships,	1758
associations, joint-stock companies, joint ventures, clubs,	1759
societies, corporations, the state and its political subdivisions,	1760
and combinations of individuals of any form.	1761

(B) "Sale" and "selling" include all of the following	1762
transactions for a consideration in any manner, whether absolutely	1763
or conditionally, whether for a price or rental, in money or by	1764
exchange, and by any means whatsoever:	1765

(1) All transactions by which title or possession, or both,	1766
of tangible personal property, is or is to be transferred, or a	1767
license to use or consume tangible personal property is or is to	1768
be granted;	1769

(2) All transactions by which lodging by a hotel is or is to	1770
be furnished to transient guests;	1771

(3) All transactions by which:

1772

(a) An item of tangible personal property is or is to be	1773
repaired, except property, the purchase of which would not be	1774
subject to the tax imposed by section 5739.02 of the Revised Code;	1775

(b) An item of tangible personal property is or is to be	1776
installed, except property, the purchase of which would not be	1777
subject to the tax imposed by section 5739.02 of the Revised Code	1778
or property that is or is to be incorporated into and will become	1779
a part of a production, transmission, transportation, or	1780
distribution system for the delivery of a public utility service;	1781

(c) The service of washing, cleaning, waxing, polishing, or	1782
painting a motor vehicle is or is to be furnished;	1783

(d) Until August 1, 2003, industrial laundry cleaning	1784
services are or are to be provided and, on and after August 1,	1785
2003, laundry and dry cleaning services are or are to be provided;	1786

(e) Automatic data processing, computer services, or	1787
electronic information services are or are to be provided for use	1788
in business when the true object of the transaction is the receipt	1789
by the consumer of automatic data processing, computer services,	1790
or electronic information services rather than the receipt of	1791
personal or professional services to which automatic data	1792
processing, computer services, or electronic information services	1793
are incidental or supplemental. Notwithstanding any other	1794
provision of this chapter, such transactions that occur between	1795
members of an affiliated group are not sales. An "affiliated	1796
group" means two or more persons related in such a way that one	1797
person owns or controls the business operation of another member	1798
of the group. In the case of corporations with stock, one	1799
corporation owns or controls another if it owns more than fifty	1800
per cent of the other corporation's common stock with voting	1801
rights.	1802

(f) Telecommunications service, including prepaid calling	1803
service, prepaid wireless calling service, or ancillary service,	1804
is or is to be provided, but not including coin-operated telephone	1805
service;	1806

(g) Landscaping and lawn care service is or is to be	1807
provided;	1808

(h) Private investigation and security service is or is to be	1809
provided;	1810

(i) Information services or tangible personal property is	1811
provided or ordered by means of a nine hundred telephone call;	1812

(j) Building maintenance and janitorial service is or is to	1813
be provided;	1814

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

1815

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

1816

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

1817

(n) Physical fitness facility service is or is to be	1818
provided;	1819

(o) Recreation and sports club service is or is to be	1820
provided;	1821

(p) On and after August 1, 2003, satellite broadcasting	1822
service is or is to be provided;	1823

(q) On and after August 1, 2003, personal care service is or	1824
is to be provided to an individual. As used in this division,	1825
"personal care service" includes skin care, the application of	1826
cosmetics, manicuring, pedicuring, hair removal, tattooing, body	1827
piercing, tanning, massage, and other similar services. "Personal	1828
care service" does not include a service provided by or on the	1829
order of a licensed physician or licensed chiropractor, or the	1830
cutting, coloring, or styling of an individual's hair.	1831

(r) On and after August 1, 2003, the transportation of	1832
persons by motor vehicle or aircraft is or is to be provided, when	1833
the transportation is entirely within this state, except for	1834
transportation provided by an ambulance service, by a transit bus,	1835
as defined in section 5735.01 of the Revised Code, and	1836
transportation provided by a citizen of the United States holding	1837
a certificate of public convenience and necessity issued under 49	1838
U.S.C. 41102;	1839

(s) On and after August 1, 2003, motor vehicle towing service	1840
is or is to be provided. As used in this division, "motor vehicle	1841
towing service" means the towing or conveyance of a wrecked,	1842
disabled, or illegally parked motor vehicle.	1843

(t) On and after August 1, 2003, snow removal service is or	1844
is to be provided. As used in this division, "snow removal	1845
service" means the removal of snow by any mechanized means, but	1846
does not include the providing of such service by a person that	1847
has less than five thousand dollars in sales of such service	1848
during the calendar year.	1849

(u) Electronic publishing service is or is to be provided to	1850
a consumer for use in business, except that such transactions	1851
occurring between members of an affiliated group, as defined in	1852
division (B)(3)(e) of this section, are not sales.	1853

(4) All transactions by which printed, imprinted,	1854
overprinted, lithographic, multilithic, blueprinted, photostatic,	1855
or other productions or reproductions of written or graphic matter	1856
are or are to be furnished or transferred;	1857

(5) The production or fabrication of tangible personal	1858
property for a consideration for consumers who furnish either	1859
directly or indirectly the materials used in the production of	1860
fabrication work; and include the furnishing, preparing, or	1861
serving for a consideration of any tangible personal property	1862
consumed on the premises of the person furnishing, preparing, or	1863
serving such tangible personal property. Except as provided in	1864
section 5739.03 of the Revised Code, a construction contract	1865
pursuant to which tangible personal property is or is to be	1866
incorporated into a structure or improvement on and becoming a	1867
part of real property is not a sale of such tangible personal	1868
property. The construction contractor is the consumer of such	1869
tangible personal property, provided that the sale and	1870
installation of carpeting, the sale and installation of	1871
agricultural land tile, the sale and erection or installation of	1872
portable grain bins, or the provision of landscaping and lawn care	1873
service and the transfer of property as part of such service is	1874
never a construction contract.	1875

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

1876

(a) "Agricultural land tile" means fired clay or concrete	1877
tile, or flexible or rigid perforated plastic pipe or tubing,	1878
incorporated or to be incorporated into a subsurface drainage	1879
system appurtenant to land used or to be used primarily in	1880
production by farming, agriculture, horticulture, or floriculture.	1881
The term does not include such materials when they are or are to	1882
be incorporated into a drainage system appurtenant to a building	1883
or structure even if the building or structure is used or to be	1884
used in such production.	1885

(b) "Portable grain bin" means a structure that is used or to	1886
be used by a person engaged in farming or agriculture to shelter	1887
the person's grain and that is designed to be disassembled without	1888
significant damage to its component parts.	1889

(6) All transactions in which all of the shares of stock of a	1890
closely held corporation are transferred, if the corporation is	1891
not engaging in business and its entire assets consist of boats,	1892
planes, motor vehicles, or other tangible personal property	1893
operated primarily for the use and enjoyment of the shareholders;	1894

(7) All transactions in which a warranty, maintenance or	1895
service contract, or similar agreement by which the vendor of the	1896
warranty, contract, or agreement agrees to repair or maintain the	1897
tangible personal property of the consumer is or is to be	1898
provided;	1899

(8) The transfer of copyrighted motion picture films used	1900
solely for advertising purposes, except that the transfer of such	1901
films for exhibition purposes is not a sale;	1902

(9) On and after August 1, 2003, all transactions by which	1903
tangible personal property is or is to be stored, except such	1904
property that the consumer of the storage holds for sale in the	1905
regular course of business;	1906

(10) All transactions in which "guaranteed auto protection"	1907
is provided whereby a person promises to pay to the consumer the	1908
difference between the amount the consumer receives from motor	1909
vehicle insurance and the amount the consumer owes to a person	1910
holding title to or a lien on the consumer's motor vehicle in the	1911
event the consumer's motor vehicle suffers a total loss under the	1912
terms of the motor vehicle insurance policy or is stolen and not	1913
recovered, if the protection and its price are included in the	1914
purchase or lease agreement;	1915

(11)(a) Except as provided in division (B)(11)(b) of this	1916
section, on and after October 1, 2009, all transactions by which	1917
health care services are paid for, reimbursed, provided,	1918
delivered, arranged for, or otherwise made available by a medicaid	1919
health insuring corporation pursuant to the corporation's contract	1920
with the state.	1921

(b) If the centers for medicare and medicaid services of the	1922
United States department of health and human services determines	1923
that the taxation of transactions described in division (B)(11)(a)	1924
of this section constitutes an impermissible health care-related	1925
tax under section 1903(w) of the "Social Security Act," 49 Stat.	1926
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations	1927
adopted thereunder, the director of job and family services shall	1928
notify the tax commissioner of that determination. Beginning with	1929
the first day of the month following that notification, the	1930
transactions described in division (B)(11)(a) of this section are	1931
not sales for the purposes of this chapter or Chapter 5741. of the	1932
Revised Code. The tax commissioner shall order that the collection	1933
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026,	1934
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code	1935
shall cease for transactions occurring on or after that date.	1936

Except as provided in this section, "sale" and "selling" do	1937
not include transfers of interest in leased property where the	1938
original lessee and the terms of the original lease agreement	1939
remain unchanged, or professional, insurance, or personal service	1940
transactions that involve the transfer of tangible personal	1941
property as an inconsequential element, for which no separate	1942
charges are made.	1943

(C) "Vendor" means the person providing the service or by	1944
whom the transfer effected or license given by a sale is or is to	1945
be made or given and, for sales described in division (B)(3)(i) of	1946
this section, the telecommunications service vendor that provides	1947
the nine hundred telephone service; if two or more persons are	1948
engaged in business at the same place of business under a single	1949
trade name in which all collections on account of sales by each	1950
are made, such persons shall constitute a single vendor.	1951

Physicians, dentists, hospitals, and veterinarians who are	1952
engaged in selling tangible personal property as received from	1953
others, such as eyeglasses, mouthwashes, dentifrices, or similar	1954
articles, are vendors. Veterinarians who are engaged in	1955
transferring to others for a consideration drugs, the dispensing	1956
of which does not require an order of a licensed veterinarian or	1957
physician under federal law, are vendors.	1958

(D)(1) "Consumer" means the person for whom the service is	1959
provided, to whom the transfer effected or license given by a sale	1960
is or is to be made or given, to whom the service described in	1961
division (B)(3)(f) or (i) of this section is charged, or to whom	1962
the admission is granted.	1963

(2) Physicians, dentists, hospitals, and blood banks operated	1964
by nonprofit institutions and persons licensed to practice	1965
veterinary medicine, surgery, and dentistry are consumers of all	1966
tangible personal property and services purchased by them in	1967
connection with the practice of medicine, dentistry, the rendition	1968
of hospital or blood bank service, or the practice of veterinary	1969
medicine, surgery, and dentistry. In addition to being consumers	1970
of drugs administered by them or by their assistants according to	1971
their direction, veterinarians also are consumers of drugs that	1972
under federal law may be dispensed only by or upon the order of a	1973
licensed veterinarian or physician, when transferred by them to	1974
others for a consideration to provide treatment to animals as	1975
directed by the veterinarian.	1976

(3) A person who performs a facility management, or similar	1977
service contract for a contractee is a consumer of all tangible	1978
personal property and services purchased for use in connection	1979
with the performance of such contract, regardless of whether title	1980
to any such property vests in the contractee. The purchase of such	1981
property and services is not subject to the exception for resale	1982
under division (E)(1) of this section.	1983

(4)(a) In the case of a person who purchases printed matter	1984
for the purpose of distributing it or having it distributed to the	1985
public or to a designated segment of the public, free of charge,	1986
that person is the consumer of that printed matter, and the	1987
purchase of that printed matter for that purpose is a sale.	1988

(b) In the case of a person who produces, rather than	1989
purchases, printed matter for the purpose of distributing it or	1990
having it distributed to the public or to a designated segment of	1991
the public, free of charge, that person is the consumer of all	1992
tangible personal property and services purchased for use or	1993
consumption in the production of that printed matter. That person	1994
is not entitled to claim exemption under division (B)(42)(f) of	1995
section 5739.02 of the Revised Code for any material incorporated	1996
into the printed matter or any equipment, supplies, or services	1997
primarily used to produce the printed matter.	1998

(c) The distribution of printed matter to the public or to a	1999
designated segment of the public, free of charge, is not a sale to	2000
the members of the public to whom the printed matter is	2001
distributed or to any persons who purchase space in the printed	2002
matter for advertising or other purposes.	2003

(5) A person who makes sales of any of the services listed in	2004
division (B)(3) of this section is the consumer of any tangible	2005
personal property used in performing the service. The purchase of	2006
that property is not subject to the resale exception under	2007
division (E)(1) of this section.	2008

(6) A person who engages in highway transportation for hire	2009
is the consumer of all packaging materials purchased by that	2010
person and used in performing the service, except for packaging	2011
materials sold by such person in a transaction separate from the	2012
service.	2013

(7) In the case of a transaction for health care services	2014
under division (B)(11) of this section, a medicaid health insuring	2015
corporation is the consumer of such services. The purchase of such	2016
services by a medicaid health insuring corporation is not subject	2017
to the exception for resale under division (E)(1) of this section	2018
or to the exemptions provided under divisions (B)(12), (18), (19),	2019
and (22) of section 5739.02 of the Revised Code.	2020

(E) "Retail sale" and "sales at retail" include all sales,	2021
except those in which the purpose of the consumer is to resell the	2022
thing transferred or benefit of the service provided, by a person	2023
engaging in business, in the form in which the same is, or is to	2024
be, received by the person.	2025

(F) "Business" includes any activity engaged in by any person	2026
with the object of gain, benefit, or advantage, either direct or	2027
indirect. "Business" does not include the activity of a person in	2028
managing and investing the person's own funds.	2029

(G) "Engaging in business" means commencing, conducting, or	2030
continuing in business, and liquidating a business when the	2031
liquidator thereof holds itself out to the public as conducting	2032
such business. Making a casual sale is not engaging in business.	2033

(H)(1)(a) "Price," except as provided in divisions (H)(2),	2034
(3), and (4) of this section, means the total amount of	2035
consideration, including cash, credit, property, and services, for	2036
which tangible personal property or services are sold, leased, or	2037
rented, valued in money, whether received in money or otherwise,	2038
without any deduction for any of the following:	2039

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

2040

(ii) The cost of materials used, labor or service costs,	2041
interest, losses, all costs of transportation to the vendor, all	2042
taxes imposed on the vendor, including the tax imposed under	2043
Chapter 5751. of the Revised Code, and any other expense of the	2044
vendor;	2045

(iii) Charges by the vendor for any services necessary to	2046
complete the sale;	2047

(iv) On and after August 1, 2003, delivery charges. As used	2048
in this division, "delivery charges" means charges by the vendor	2049
for preparation and delivery to a location designated by the	2050
consumer of tangible personal property or a service, including	2051
transportation, shipping, postage, handling, crating, and packing.	2052

(v) Installation charges;

2053

(vi) Credit for any trade-in.

2054

(b) "Price" includes consideration received by the vendor	2055
from a third party, if the vendor actually receives the	2056
consideration from a party other than the consumer, and the	2057
consideration is directly related to a price reduction or discount	2058
on the sale; the vendor has an obligation to pass the price	2059
reduction or discount through to the consumer; the amount of the	2060
consideration attributable to the sale is fixed and determinable	2061
by the vendor at the time of the sale of the item to the consumer;	2062
and one of the following criteria is met:	2063

(i) The consumer presents a coupon, certificate, or other	2064
document to the vendor to claim a price reduction or discount	2065
where the coupon, certificate, or document is authorized,	2066
distributed, or granted by a third party with the understanding	2067
that the third party will reimburse any vendor to whom the coupon,	2068
certificate, or document is presented;	2069

(ii) The consumer identifies the consumer's self to the	2070
seller as a member of a group or organization entitled to a price	2071
reduction or discount. A preferred customer card that is available	2072
to any patron does not constitute membership in such a group or	2073
organization.	2074

(iii) The price reduction or discount is identified as a	2075
third party price reduction or discount on the invoice received by	2076
the consumer, or on a coupon, certificate, or other document	2077
presented by the consumer.	2078

2079

(i) Discounts, including cash, term, or coupons that are not	2080
reimbursed by a third party that are allowed by a vendor and taken	2081
by a consumer on a sale;	2082

(ii) Interest, financing, and carrying charges from credit	2083
extended on the sale of tangible personal property or services, if	2084
the amount is separately stated on the invoice, bill of sale, or	2085
similar document given to the purchaser;	2086

(iii) Any taxes legally imposed directly on the consumer that	2087
are separately stated on the invoice, bill of sale, or similar	2088
document given to the consumer. For the purpose of this division,	2089
the tax imposed under Chapter 5751. of the Revised Code is not a	2090
tax directly on the consumer, even if the tax or a portion thereof	2091
is separately stated.	2092

(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this	2093
section, any discount allowed by an automobile manufacturer to its	2094
employee, or to the employee of a supplier, on the purchase of a	2095
new motor vehicle from a new motor vehicle dealer in this state.	2096

(v) The dollar value of a gift card that is not sold by a	2097
vendor or purchased by a consumer and that is redeemed by the	2098
consumer in purchasing tangible personal property or services if	2099
the vendor is not reimbursed and does not receive compensation	2100
from a third party to cover all or part of the gift card value.	2101
For the purposes of this division, a gift card is not sold by a	2102
vendor or purchased by a consumer if it is distributed pursuant to	2103
an awards, loyalty, or promotional program. Past and present	2104
purchases of tangible personal property or services by the	2105
consumer shall not be treated as consideration exchanged for a	2106
gift card.	2107

(2) In the case of a sale of any new motor vehicle by a new	2108
motor vehicle dealer, as defined in section 4517.01 of the Revised	2109
Code, in which another motor vehicle is accepted by the dealer as	2110
part of the consideration received, "price" has the same meaning	2111
as in division (H)(1) of this section, reduced by the credit	2112
afforded the consumer by the dealer for the motor vehicle received	2113
in trade.	2114

(3) In the case of a sale of any watercraft or outboard motor	2115
by a watercraft dealer licensed in accordance with section	2116
1547.543 of the Revised Code, in which another watercraft,	2117
watercraft and trailer, or outboard motor is accepted by the	2118
dealer as part of the consideration received, "price" has the same	2119
meaning as in division (H)(1) of this section, reduced by the	2120
credit afforded the consumer by the dealer for the watercraft,	2121
watercraft and trailer, or outboard motor received in trade. As	2122
used in this division, "watercraft" includes an outdrive unit	2123
attached to the watercraft.	2124

(4) In the case of transactions for health care services	2125
under division (B)(11) of this section, "price" means the amount	2126
of managed care premiums received each month by a medicaid health	2127
insuring corporation.	2128

(I) "Receipts" means the total amount of the prices of the	2129
sales of vendors, provided that the dollar value of gift cards	2130
distributed pursuant to an awards, loyalty, or promotional	2131
program, and cash discounts allowed and taken on sales at the time	2132
they are consummated are not included, minus any amount deducted	2133
as a bad debt pursuant to section 5739.121 of the Revised Code.	2134
"Receipts" does not include the sale price of property returned or	2135
services rejected by consumers when the full sale price and tax	2136
are refunded either in cash or by credit.	2137

(J) "Place of business" means any location at which a person	2138
engages in business.	2139

(K) "Premises" includes any real property or portion thereof	2140
upon which any person engages in selling tangible personal	2141
property at retail or making retail sales and also includes any	2142
real property or portion thereof designated for, or devoted to,	2143
use in conjunction with the business engaged in by such person.	2144

(L) "Casual sale" means a sale of an item of tangible	2145
personal property that was obtained by the person making the sale,	2146
through purchase or otherwise, for the person's own use and was	2147
previously subject to any state's taxing jurisdiction on its sale	2148
or use, and includes such items acquired for the seller's use that	2149
are sold by an auctioneer employed directly by the person for such	2150
purpose, provided the location of such sales is not the	2151
auctioneer's permanent place of business. As used in this	2152
division, "permanent place of business" includes any location	2153
where such auctioneer has conducted more than two auctions during	2154
the year.	2155

(M) "Hotel" means every establishment kept, used, maintained,	2156
advertised, or held out to the public to be a place where sleeping	2157
accommodations are offered to guests, in which five or more rooms	2158
are used for the accommodation of such guests, whether the rooms	2159
are in one or several structures, except as otherwise provided in	2160
division (G) of section 5739.09 of the Revised Code.	2161

(N) "Transient guests" means persons occupying a room or	2162
rooms for sleeping accommodations for less than thirty consecutive	2163
days.	2164

(O) "Making retail sales" means the effecting of transactions	2165
wherein one party is obligated to pay the price and the other	2166
party is obligated to provide a service or to transfer title to or	2167
possession of the item sold. "Making retail sales" does not	2168
include the preliminary acts of promoting or soliciting the retail	2169
sales, other than the distribution of printed matter which	2170
displays or describes and prices the item offered for sale, nor	2171
does it include delivery of a predetermined quantity of tangible	2172
personal property or transportation of property or personnel to or	2173
from a place where a service is performed~~, regardless of whether~~	2174
~~the vendor is a delivery vendor~~.	2175

(P) "Used directly in the rendition of a public utility	2176
service" means that property that is to be incorporated into and	2177
will become a part of the consumer's production, transmission,	2178
transportation, or distribution system and that retains its	2179
classification as tangible personal property after such	2180
incorporation; fuel or power used in the production, transmission,	2181
transportation, or distribution system; and tangible personal	2182
property used in the repair and maintenance of the production,	2183
transmission, transportation, or distribution system, including	2184
only such motor vehicles as are specially designed and equipped	2185
for such use. Tangible personal property and services used	2186
primarily in providing highway transportation for hire are not	2187
used directly in the rendition of a public utility service. In	2188
this definition, "public utility" includes a citizen of the United	2189
States holding, and required to hold, a certificate of public	2190
convenience and necessity issued under 49 U.S.C. 41102.	2191

(Q) "Refining" means removing or separating a desirable	2192
product from raw or contaminated materials by distillation or	2193
physical, mechanical, or chemical processes.	2194

(R) "Assembly" and "assembling" mean attaching or fitting	2195
together parts to form a product, but do not include packaging a	2196
product.	2197

(S) "Manufacturing operation" means a process in which	2198
materials are changed, converted, or transformed into a different	2199
state or form from which they previously existed and includes	2200
refining materials, assembling parts, and preparing raw materials	2201
and parts by mixing, measuring, blending, or otherwise committing	2202
such materials or parts to the manufacturing process.	2203
"Manufacturing operation" does not include packaging.	2204

(T) "Fiscal officer" means, with respect to a regional	2205
transit authority, the secretary-treasurer thereof, and with	2206
respect to a county that is a transit authority, the fiscal	2207
officer of the county transit board if one is appointed pursuant	2208
to section 306.03 of the Revised Code or the county auditor if the	2209
board of county commissioners operates the county transit system.	2210

(U) "Transit authority" means a regional transit authority	2211
created pursuant to section 306.31 of the Revised Code or a county	2212
in which a county transit system is created pursuant to section	2213
306.01 of the Revised Code. For the purposes of this chapter, a	2214
transit authority must extend to at least the entire area of a	2215
single county. A transit authority that includes territory in more	2216
than one county must include all the area of the most populous	2217
county that is a part of such transit authority. County population	2218
shall be measured by the most recent census taken by the United	2219
States census bureau.	2220

(V) "Legislative authority" means, with respect to a regional	2221
transit authority, the board of trustees thereof, and with respect	2222
to a county that is a transit authority, the board of county	2223
commissioners.	2224

(W) "Territory of the transit authority" means all of the	2225
area included within the territorial boundaries of a transit	2226
authority as they from time to time exist. Such territorial	2227
boundaries must at all times include all the area of a single	2228
county or all the area of the most populous county that is a part	2229
of such transit authority. County population shall be measured by	2230
the most recent census taken by the United States census bureau.	2231

(X) "Providing a service" means providing or furnishing	2232
anything described in division (B)(3) of this section for	2233
consideration.	2234

(Y)(1)(a) "Automatic data processing" means processing of	2235
others' data, including keypunching or similar data entry services	2236
together with verification thereof, or providing access to	2237
computer equipment for the purpose of processing data.	2238

(b) "Computer services" means providing services consisting	2239
of specifying computer hardware configurations and evaluating	2240
technical processing characteristics, computer programming, and	2241
training of computer programmers and operators, provided in	2242
conjunction with and to support the sale, lease, or operation of	2243
taxable computer equipment or systems.	2244

(c) "Electronic information services" means providing access	2245
to computer equipment by means of telecommunications equipment for	2246
the purpose of either of the following:	2247

(i) Examining or acquiring data stored in or accessible to	2248
the computer equipment;	2249

(ii) Placing data into the computer equipment to be retrieved	2250
by designated recipients with access to the computer equipment.	2251

For transactions occurring on or after the effective date of	2252
the amendment of this section by H.B. 157 of the 127th general	2253
assembly, December 21, 2007, "electronic information services"	2254
does not include electronic publishing as defined in division	2255
(LLL) of this section.	2256

(d) "Automatic data processing, computer services, or	2257
electronic information services" shall not include personal or	2258
professional services.	2259

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	2260
section, "personal and professional services" means all services	2261
other than automatic data processing, computer services, or	2262
electronic information services, including but not limited to:	2263

(a) Accounting and legal services such as advice on tax	2264
matters, asset management, budgetary matters, quality control,	2265
information security, and auditing and any other situation where	2266
the service provider receives data or information and studies,	2267
alters, analyzes, interprets, or adjusts such material;	2268

(b) Analyzing business policies and procedures;

2269

2270

(d) Feasibility studies, including economic and technical	2271
analysis of existing or potential computer hardware or software	2272
needs and alternatives;	2273

(e) Designing policies, procedures, and custom software for	2274
collecting business information, and determining how data should	2275
be summarized, sequenced, formatted, processed, controlled, and	2276
reported so that it will be meaningful to management;	2277

(f) Developing policies and procedures that document how	2278
business events and transactions are to be authorized, executed,	2279
and controlled;	2280

(g) Testing of business procedures;

2281

(h) Training personnel in business procedure applications;

2282

(i) Providing credit information to users of such information	2283
by a consumer reporting agency, as defined in the "Fair Credit	2284
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or	2285
as hereafter amended, including but not limited to gathering,	2286
organizing, analyzing, recording, and furnishing such information	2287
by any oral, written, graphic, or electronic medium;	2288

(j) Providing debt collection services by any oral, written,	2289
graphic, or electronic means.	2290

The services listed in divisions (Y)(2)(a) to (j) of this	2291
section are not automatic data processing or computer services.	2292

(Z) "Highway transportation for hire" means the	2293
transportation of personal property belonging to others for	2294
consideration by any of the following:	2295

(1) The holder of a permit or certificate issued by this	2296
state or the United States authorizing the holder to engage in	2297
transportation of personal property belonging to others for	2298
consideration over or on highways, roadways, streets, or any	2299
similar public thoroughfare;	2300

(2) A person who engages in the transportation of personal	2301
property belonging to others for consideration over or on	2302
highways, roadways, streets, or any similar public thoroughfare	2303
but who could not have engaged in such transportation on December	2304
11, 1985, unless the person was the holder of a permit or	2305
certificate of the types described in division (Z)(1) of this	2306
section;	2307

(3) A person who leases a motor vehicle to and operates it	2308
for a person described by division (Z)(1) or (2) of this section.	2309

(AA)(1) "Telecommunications service" means the electronic	2310
transmission, conveyance, or routing of voice, data, audio, video,	2311
or any other information or signals to a point, or between or	2312
among points. "Telecommunications service" includes such	2313
transmission, conveyance, or routing in which computer processing	2314
applications are used to act on the form, code, or protocol of the	2315
content for purposes of transmission, conveyance, or routing	2316
without regard to whether the service is referred to as voice-over	2317
internet protocol service or is classified by the federal	2318
communications commission as enhanced or value-added.	2319
"Telecommunications service" does not include any of the	2320
following:	2321

(a) Data processing and information services that allow data	2322
to be generated, acquired, stored, processed, or retrieved and	2323
delivered by an electronic transmission to a consumer where the	2324
consumer's primary purpose for the underlying transaction is the	2325
processed data or information;	2326

(b) Installation or maintenance of wiring or equipment on a	2327
customer's premises;	2328

2329

(d) Advertising, including directory advertising;

2330

(e) Billing and collection services provided to third	2331
parties;	2332

(f) Internet access service;

2333

(g) Radio and television audio and video programming	2334
services, regardless of the medium, including the furnishing of	2335
transmission, conveyance, and routing of such services by the	2336
programming service provider. Radio and television audio and video	2337
programming services include, but are not limited to, cable	2338
service, as defined in 47 U.S.C. 522(6), and audio and video	2339
programming services delivered by commercial mobile radio service	2340
providers, as defined in 47 C.F.R. 20.3;	2341

(h) Ancillary service;

2342

(i) Digital products delivered electronically, including	2343
software, music, video, reading materials, or ring tones.	2344

(2) "Ancillary service" means a service that is associated	2345
with or incidental to the provision of telecommunications service,	2346
including conference bridging service, detailed telecommunications	2347
billing service, directory assistance, vertical service, and voice	2348
mail service. As used in this division:	2349

(a) "Conference bridging service" means an ancillary service	2350
that links two or more participants of an audio or video	2351
conference call, including providing a telephone number.	2352
"Conference bridging service" does not include telecommunications	2353
services used to reach the conference bridge.	2354

(b) "Detailed telecommunications billing service" means an	2355
ancillary service of separately stating information pertaining to	2356
individual calls on a customer's billing statement.	2357

(c) "Directory assistance" means an ancillary service of	2358
providing telephone number or address information.	2359

(d) "Vertical service" means an ancillary service that is	2360
offered in connection with one or more telecommunications	2361
services, which offers advanced calling features that allow	2362
customers to identify callers and manage multiple calls and call	2363
connections, including conference bridging service.	2364

(e) "Voice mail service" means an ancillary service that	2365
enables the customer to store, send, or receive recorded messages.	2366
"Voice mail service" does not include any vertical services that	2367
the customer may be required to have in order to utilize the voice	2368
mail service.	2369

(3) "900 service" means an inbound toll telecommunications	2370
service purchased by a subscriber that allows the subscriber's	2371
customers to call in to the subscriber's prerecorded announcement	2372
or live service, and which is typically marketed under the name	2373
"900" service and any subsequent numbers designated by the federal	2374
communications commission. "900 service" does not include the	2375
charge for collection services provided by the seller of the	2376
telecommunications service to the subscriber, or services or	2377
products sold by the subscriber to the subscriber's customer.	2378

(4) "Prepaid calling service" means the right to access	2379
exclusively telecommunications services, which must be paid for in	2380
advance and which enables the origination of calls using an access	2381
number or authorization code, whether manually or electronically	2382
dialed, and that is sold in predetermined units of dollars of	2383
which the number declines with use in a known amount.	2384

(5) "Prepaid wireless calling service" means a	2385
telecommunications service that provides the right to utilize	2386
mobile telecommunications service as well as other	2387
non-telecommunications services, including the download of digital	2388
products delivered electronically, and content and ancillary	2389
services, that must be paid for in advance and that is sold in	2390
predetermined units of dollars of which the number declines with	2391
use in a known amount.	2392

(6) "Value-added non-voice data service" means a	2393
telecommunications service in which computer processing	2394
applications are used to act on the form, content, code, or	2395
protocol of the information or data primarily for a purpose other	2396
than transmission, conveyance, or routing.	2397

(7) "Coin-operated telephone service" means a	2398
telecommunications service paid for by inserting money into a	2399
telephone accepting direct deposits of money to operate.	2400

(8) "Customer" has the same meaning as in section 5739.034 of	2401
the Revised Code.	2402

(BB) "Laundry and dry cleaning services" means removing soil	2403
or dirt from towels, linens, articles of clothing, or other fabric	2404
items that belong to others and supplying towels, linens, articles	2405
of clothing, or other fabric items. "Laundry and dry cleaning	2406
services" does not include the provision of self-service	2407
facilities for use by consumers to remove soil or dirt from	2408
towels, linens, articles of clothing, or other fabric items.	2409

(CC) "Magazines distributed as controlled circulation	2410
publications" means magazines containing at least twenty-four	2411
pages, at least twenty-five per cent editorial content, issued at	2412
regular intervals four or more times a year, and circulated	2413
without charge to the recipient, provided that such magazines are	2414
not owned or controlled by individuals or business concerns which	2415
conduct such publications as an auxiliary to, and essentially for	2416
the advancement of the main business or calling of, those who own	2417
or control them.	2418

(DD) "Landscaping and lawn care service" means the services	2419
of planting, seeding, sodding, removing, cutting, trimming,	2420
pruning, mulching, aerating, applying chemicals, watering,	2421
fertilizing, and providing similar services to establish, promote,	2422
or control the growth of trees, shrubs, flowers, grass, ground	2423
cover, and other flora, or otherwise maintaining a lawn or	2424
landscape grown or maintained by the owner for ornamentation or	2425
other nonagricultural purpose. However, "landscaping and lawn care	2426
service" does not include the providing of such services by a	2427
person who has less than five thousand dollars in sales of such	2428
services during the calendar year.	2429

(EE) "Private investigation and security service" means the	2430
performance of any activity for which the provider of such service	2431
is required to be licensed pursuant to Chapter 4749. of the	2432
Revised Code, or would be required to be so licensed in performing	2433
such services in this state, and also includes the services of	2434
conducting polygraph examinations and of monitoring or overseeing	2435
the activities on or in, or the condition of, the consumer's home,	2436
business, or other facility by means of electronic or similar	2437
monitoring devices. "Private investigation and security service"	2438
does not include special duty services provided by off-duty police	2439
officers, deputy sheriffs, and other peace officers regularly	2440
employed by the state or a political subdivision.	2441

(FF) "Information services" means providing conversation,	2442
giving consultation or advice, playing or making a voice or other	2443
recording, making or keeping a record of the number of callers,	2444
and any other service provided to a consumer by means of a nine	2445
hundred telephone call, except when the nine hundred telephone	2446
call is the means by which the consumer makes a contribution to a	2447
recognized charity.	2448

(GG) "Research and development" means designing, creating, or	2449
formulating new or enhanced products, equipment, or manufacturing	2450
processes, and also means conducting scientific or technological	2451
inquiry and experimentation in the physical sciences with the goal	2452
of increasing scientific knowledge which may reveal the bases for	2453
new or enhanced products, equipment, or manufacturing processes.	2454

(HH) "Qualified research and development equipment" means	2455
capitalized tangible personal property, and leased personal	2456
property that would be capitalized if purchased, used by a person	2457
primarily to perform research and development. Tangible personal	2458
property primarily used in testing, as defined in division (A)(4)	2459
of section 5739.011 of the Revised Code, or used for recording or	2460
storing test results, is not qualified research and development	2461
equipment unless such property is primarily used by the consumer	2462
in testing the product, equipment, or manufacturing process being	2463
created, designed, or formulated by the consumer in the research	2464
and development activity or in recording or storing such test	2465
results.	2466

(II) "Building maintenance and janitorial service" means	2467
cleaning the interior or exterior of a building and any tangible	2468
personal property located therein or thereon, including any	2469
services incidental to such cleaning for which no separate charge	2470
is made. However, "building maintenance and janitorial service"	2471
does not include the providing of such service by a person who has	2472
less than five thousand dollars in sales of such service during	2473
the calendar year.	2474

(JJ) "Employment service" means providing or supplying	2475
personnel, on a temporary or long-term basis, to perform work or	2476
labor under the supervision or control of another, when the	2477
personnel so provided or supplied receive their wages, salary, or	2478
other compensation from the provider or supplier of the employment	2479
service or from a third party that provided or supplied the	2480
personnel to the provider or supplier. "Employment service" does	2481
not include:	2482

(1) Acting as a contractor or subcontractor, where the	2483
personnel performing the work are not under the direct control of	2484
the purchaser.	2485

(2) Medical and health care services.

2486

(3) Supplying personnel to a purchaser pursuant to a contract	2487
of at least one year between the service provider and the	2488
purchaser that specifies that each employee covered under the	2489
contract is assigned to the purchaser on a permanent basis.	2490

(4) Transactions between members of an affiliated group, as	2491
defined in division (B)(3)(e) of this section.	2492

(5) Transactions where the personnel so provided or supplied	2493
by a provider or supplier to a purchaser of an employment service	2494
are then provided or supplied by that purchaser to a third party	2495
as an employment service, except "employment service" does include	2496
the transaction between that purchaser and the third party.	2497

(KK) "Employment placement service" means locating or finding	2498
employment for a person or finding or locating an employee to fill	2499
an available position.	2500

(LL) "Exterminating service" means eradicating or attempting	2501
to eradicate vermin infestations from a building or structure, or	2502
the area surrounding a building or structure, and includes	2503
activities to inspect, detect, or prevent vermin infestation of a	2504
building or structure.	2505

(MM) "Physical fitness facility service" means all	2506
transactions by which a membership is granted, maintained, or	2507
renewed, including initiation fees, membership dues, renewal fees,	2508
monthly minimum fees, and other similar fees and dues, by a	2509
physical fitness facility such as an athletic club, health spa, or	2510
gymnasium, which entitles the member to use the facility for	2511
physical exercise.	2512

(NN) "Recreation and sports club service" means all	2513
transactions by which a membership is granted, maintained, or	2514
renewed, including initiation fees, membership dues, renewal fees,	2515
monthly minimum fees, and other similar fees and dues, by a	2516
recreation and sports club, which entitles the member to use the	2517
facilities of the organization. "Recreation and sports club" means	2518
an organization that has ownership of, or controls or leases on a	2519
continuing, long-term basis, the facilities used by its members	2520
and includes an aviation club, gun or shooting club, yacht club,	2521
card club, swimming club, tennis club, golf club, country club,	2522
riding club, amateur sports club, or similar organization.	2523

(OO) "Livestock" means farm animals commonly raised for food,	2524
food production, or other agricultural purposes, including, but	2525
not limited to, cattle, sheep, goats, swine, poultry, and captive	2526
deer. "Livestock" does not include invertebrates, amphibians,	2527
reptiles, domestic pets, animals for use in laboratories or for	2528
exhibition, or other animals not commonly raised for food or food	2529
production.	2530

(PP) "Livestock structure" means a building or structure used	2531
exclusively for the housing, raising, feeding, or sheltering of	2532
livestock, and includes feed storage or handling structures and	2533
structures for livestock waste handling.	2534

(QQ) "Horticulture" means the growing, cultivation, and	2535
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	2536
and nursery stock. As used in this division, "nursery stock" has	2537
the same meaning as in section 927.51 of the Revised Code.	2538

(RR) "Horticulture structure" means a building or structure	2539
used exclusively for the commercial growing, raising, or	2540
overwintering of horticultural products, and includes the area	2541
used for stocking, storing, and packing horticultural products	2542
when done in conjunction with the production of those products.	2543

(SS) "Newspaper" means an unbound publication bearing a title	2544
or name that is regularly published, at least as frequently as	2545
biweekly, and distributed from a fixed place of business to the	2546
public in a specific geographic area, and that contains a	2547
substantial amount of news matter of international, national, or	2548
local events of interest to the general public.	2549

(TT) "Professional racing team" means a person that employs	2550
at least twenty full-time employees for the purpose of conducting	2551
a motor vehicle racing business for profit. The person must	2552
conduct the business with the purpose of racing one or more motor	2553
racing vehicles in at least ten competitive professional racing	2554
events each year that comprise all or part of a motor racing	2555
series sanctioned by one or more motor racing sanctioning	2556
organizations. A "motor racing vehicle" means a vehicle for which	2557
the chassis, engine, and parts are designed exclusively for motor	2558
racing, and does not include a stock or production model vehicle	2559
that may be modified for use in racing. For the purposes of this	2560
division:	2561

(1) A "competitive professional racing event" is a motor	2562
vehicle racing event sanctioned by one or more motor racing	2563
sanctioning organizations, at which aggregate cash prizes in	2564
excess of eight hundred thousand dollars are awarded to the	2565
competitors.	2566

(2) "Full-time employee" means an individual who is employed	2567
for consideration for thirty-five or more hours a week, or who	2568
renders any other standard of service generally accepted by custom	2569
or specified by contract as full-time employment.	2570

(UU)(1) "Lease" or "rental" means any transfer of the	2571
possession or control of tangible personal property for a fixed or	2572
indefinite term, for consideration. "Lease" or "rental" includes	2573
future options to purchase or extend, and agreements described in	2574
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where	2575
the amount of consideration may be increased or decreased by	2576
reference to the amount realized upon the sale or disposition of	2577
the property. "Lease" or "rental" does not include:	2578

(a) A transfer of possession or control of tangible personal	2579
property under a security agreement or a deferred payment plan	2580
that requires the transfer of title upon completion of the	2581
required payments;	2582

(b) A transfer of possession or control of tangible personal	2583
property under an agreement that requires the transfer of title	2584
upon completion of required payments and payment of an option	2585
price that does not exceed the greater of one hundred dollars or	2586
one per cent of the total required payments;	2587

(c) Providing tangible personal property along with an	2588
operator for a fixed or indefinite period of time, if the operator	2589
is necessary for the property to perform as designed. For purposes	2590
of this division, the operator must do more than maintain,	2591
inspect, or set-up the tangible personal property.	2592

(2) "Lease" and "rental," as defined in division (UU) of this	2593
section, shall not apply to leases or rentals that exist before	2594
June 26, 2003.	2595

(3) "Lease" and "rental" have the same meaning as in division	2596
(UU)(1) of this section regardless of whether a transaction is	2597
characterized as a lease or rental under generally accepted	2598
accounting principles, the Internal Revenue Code, Title XIII of	2599
the Revised Code, or other federal, state, or local laws.	2600

(VV) "Mobile telecommunications service" has the same meaning	2601
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.	2602
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and,	2603
on and after August 1, 2003, includes related fees and ancillary	2604
services, including universal service fees, detailed billing	2605
service, directory assistance, service initiation, voice mail	2606
service, and vertical services, such as caller ID and three-way	2607
calling.	2608

(WW) "Certified service provider" has the same meaning as in	2609
section 5740.01 of the Revised Code.	2610

(XX) "Satellite broadcasting service" means the distribution	2611
or broadcasting of programming or services by satellite directly	2612
to the subscriber's receiving equipment without the use of ground	2613
receiving or distribution equipment, except the subscriber's	2614
receiving equipment or equipment used in the uplink process to the	2615
satellite, and includes all service and rental charges, premium	2616
channels or other special services, installation and repair	2617
service charges, and any other charges having any connection with	2618
the provision of the satellite broadcasting service.	2619

(YY) "Tangible personal property" means personal property	2620
that can be seen, weighed, measured, felt, or touched, or that is	2621
in any other manner perceptible to the senses. For purposes of	2622
this chapter and Chapter 5741. of the Revised Code, "tangible	2623
personal property" includes motor vehicles, electricity, water,	2624
gas, steam, and prewritten computer software.	2625

(ZZ) "Direct mail" means printed material delivered or	2626
distributed by United States mail or other delivery service to a	2627
mass audience or to addressees on a mailing list provided by the	2628
consumer or at the direction of the consumer when the cost of the	2629
items are not billed directly to the recipients. "Direct mail"	2630
includes tangible personal property supplied directly or	2631
indirectly by the consumer to the direct mail vendor for inclusion	2632
in the package containing the printed material. "Direct mail" does	2633
not include multiple items of printed material delivered to a	2634
single address.	2635

(AAA) "Computer" means an electronic device that accepts	2636
information in digital or similar form and manipulates it for a	2637
result based on a sequence of instructions.	2638

(BBB) "Computer software" means a set of coded instructions	2639
designed to cause a computer or automatic data processing	2640
equipment to perform a task.	2641

(CCC) "Delivered electronically" means delivery of computer	2642
software from the seller to the purchaser by means other than	2643
tangible storage media.	2644

(DDD) "Prewritten computer software" means computer software,	2645
including prewritten upgrades, that is not designed and developed	2646
by the author or other creator to the specifications of a specific	2647
purchaser. The combining of two or more prewritten computer	2648
software programs or prewritten portions thereof does not cause	2649
the combination to be other than prewritten computer software.	2650
"Prewritten computer software" includes software designed and	2651
developed by the author or other creator to the specifications of	2652
a specific purchaser when it is sold to a person other than the	2653
purchaser. If a person modifies or enhances computer software of	2654
which the person is not the author or creator, the person shall be	2655
deemed to be the author or creator only of such person's	2656
modifications or enhancements. Prewritten computer software or a	2657
prewritten portion thereof that is modified or enhanced to any	2658
degree, where such modification or enhancement is designed and	2659
developed to the specifications of a specific purchaser, remains	2660
prewritten computer software; provided, however, that where there	2661
is a reasonable, separately stated charge or an invoice or other	2662
statement of the price given to the purchaser for the modification	2663
or enhancement, the modification or enhancement shall not	2664
constitute prewritten computer software.	2665

(EEE)(1) "Food" means substances, whether in liquid,	2666
concentrated, solid, frozen, dried, or dehydrated form, that are	2667
sold for ingestion or chewing by humans and are consumed for their	2668
taste or nutritional value. "Food" does not include alcoholic	2669
beverages, dietary supplements, soft drinks, or tobacco.	2670

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

2671

(a) "Alcoholic beverages" means beverages that are suitable	2672
for human consumption and contain one-half of one per cent or more	2673
of alcohol by volume.	2674

(b) "Dietary supplements" means any product, other than	2675
tobacco, that is intended to supplement the diet and that is	2676
intended for ingestion in tablet, capsule, powder, softgel,	2677
gelcap, or liquid form, or, if not intended for ingestion in such	2678
a form, is not represented as conventional food for use as a sole	2679
item of a meal or of the diet; that is required to be labeled as a	2680
dietary supplement, identifiable by the "supplement facts" box	2681
found on the label, as required by 21 C.F.R. 101.36; and that	2682
contains one or more of the following dietary ingredients:	2683

(i) A vitamin;

2684

(ii) A mineral;

2685

(iii) An herb or other botanical;

2686

(iv) An amino acid;

2687

(v) A dietary substance for use by humans to supplement the	2688
diet by increasing the total dietary intake;	2689

(vi) A concentrate, metabolite, constituent, extract, or	2690
combination of any ingredient described in divisions	2691
(EEE)(2)(b)(i) to (v) of this section.	2692

(c) "Soft drinks" means nonalcoholic beverages that contain	2693
natural or artificial sweeteners. "Soft drinks" does not include	2694
beverages that contain milk or milk products, soy, rice, or	2695
similar milk substitutes, or that contains greater than fifty per	2696
cent vegetable or fruit juice by volume.	2697

(d) "Tobacco" means cigarettes, cigars, chewing or pipe	2698
tobacco, or any other item that contains tobacco.	2699

(FFF) "Drug" means a compound, substance, or preparation, and	2700
any component of a compound, substance, or preparation, other than	2701
food, dietary supplements, or alcoholic beverages that is	2702
recognized in the official United States pharmacopoeia, official	2703
homeopathic pharmacopoeia of the United States, or official	2704
national formulary, and supplements to them; is intended for use	2705
in the diagnosis, cure, mitigation, treatment, or prevention of	2706
disease; or is intended to affect the structure or any function of	2707
the body.	2708

(GGG) "Prescription" means an order, formula, or recipe	2709
issued in any form of oral, written, electronic, or other means of	2710
transmission by a duly licensed practitioner authorized by the	2711
laws of this state to issue a prescription.	2712

(HHH) "Durable medical equipment" means equipment, including	2713
repair and replacement parts for such equipment, that can	2714
withstand repeated use, is primarily and customarily used to serve	2715
a medical purpose, generally is not useful to a person in the	2716
absence of illness or injury, and is not worn in or on the body.	2717
"Durable medical equipment" does not include mobility enhancing	2718
equipment.	2719

(III) "Mobility enhancing equipment" means equipment,	2720
including repair and replacement parts for such equipment, that is	2721
primarily and customarily used to provide or increase the ability	2722
to move from one place to another and is appropriate for use	2723
either in a home or a motor vehicle, that is not generally used by	2724
persons with normal mobility, and that does not include any motor	2725
vehicle or equipment on a motor vehicle normally provided by a	2726
motor vehicle manufacturer. "Mobility enhancing equipment" does	2727
not include durable medical equipment.	2728

(JJJ) "Prosthetic device" means a replacement, corrective, or	2729
supportive device, including repair and replacement parts for the	2730
device, worn on or in the human body to artificially replace a	2731
missing portion of the body, prevent or correct physical deformity	2732
or malfunction, or support a weak or deformed portion of the body.	2733
As used in this division, "prosthetic device" does not include	2734
corrective eyeglasses, contact lenses, or dental prosthesis.	2735

(KKK)(1) "Fractional aircraft ownership program" means a	2736
program in which persons within an affiliated group sell and	2737
manage fractional ownership program aircraft, provided that at	2738
least one hundred airworthy aircraft are operated in the program	2739
and the program meets all of the following criteria:	2740

(a) Management services are provided by at least one program	2741
manager within an affiliated group on behalf of the fractional	2742
owners.	2743

(b) Each program aircraft is owned or possessed by at least	2744
one fractional owner.	2745

(c) Each fractional owner owns or possesses at least a	2746
one-sixteenth interest in at least one fixed-wing program	2747
aircraft.	2748

(d) A dry-lease aircraft interchange arrangement is in effect	2749
among all of the fractional owners.	2750

(e) Multi-year program agreements are in effect regarding the	2751
fractional ownership, management services, and dry-lease aircraft	2752
interchange arrangement aspects of the program.	2753

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

2754

(a) "Affiliated group" has the same meaning as in division	2755
(B)(3)(e) of this section.	2756

(b) "Fractional owner" means a person that owns or possesses	2757
at least a one-sixteenth interest in a program aircraft and has	2758
entered into the agreements described in division (KKK)(1)(e) of	2759
this section.	2760

(c) "Fractional ownership program aircraft" or "program	2761
aircraft" means a turbojet aircraft that is owned or possessed by	2762
a fractional owner and that has been included in a dry-lease	2763
aircraft interchange arrangement and agreement under divisions	2764
(KKK)(1)(d) and (e) of this section, or an aircraft a program	2765
manager owns or possesses primarily for use in a fractional	2766
aircraft ownership program.	2767

(d) "Management services" means administrative and aviation	2768
support services furnished under a fractional aircraft ownership	2769
program in accordance with a management services agreement under	2770
division (KKK)(1)(e) of this section, and offered by the program	2771
manager to the fractional owners, including, at a minimum, the	2772
establishment and implementation of safety guidelines; the	2773
coordination of the scheduling of the program aircraft and crews;	2774
program aircraft maintenance; program aircraft insurance; crew	2775
training for crews employed, furnished, or contracted by the	2776
program manager or the fractional owner; the satisfaction of	2777
record-keeping requirements; and the development and use of an	2778
operations manual and a maintenance manual for the fractional	2779
aircraft ownership program.	2780

(e) "Program manager" means the person that offers management	2781
services to fractional owners pursuant to a management services	2782
agreement under division (KKK)(1)(e) of this section.	2783

(LLL) "Electronic publishing" means providing access to one	2784
or more of the following primarily for business customers,	2785
including the federal government or a state government or a	2786
political subdivision thereof, to conduct research: news;	2787
business, financial, legal, consumer, or credit materials;	2788
editorials, columns, reader commentary, or features; photos or	2789
images; archival or research material; legal notices, identity	2790
verification, or public records; scientific, educational,	2791
instructional, technical, professional, trade, or other literary	2792
materials; or other similar information which has been gathered	2793
and made available by the provider to the consumer in an	2794
electronic format. Providing electronic publishing includes the	2795
functions necessary for the acquisition, formatting, editing,	2796
storage, and dissemination of data or information that is the	2797
subject of a sale.	2798

(MMM) "Medicaid health insuring corporation" means a health	2799
insuring corporation that holds a certificate of authority under	2800
Chapter 1751. of the Revised Code and is under contract with the	2801
department of job and family services pursuant to section 5111.17	2802
of the Revised Code.	2803

(NNN) "Managed care premium" means any premium, capitation,	2804
or other payment a medicaid health insuring corporation receives	2805
for providing or arranging for the provision of health care	2806
services to its members or enrollees residing in this state.	2807

(OOO) "Captive deer" means deer and other cervidae that have	2808
been legally acquired, or their offspring, that are privately	2809
owned for agricultural or farming purposes.	2810

(PPP) "Gift card" means a document, card, certificate, or	2811
other record, whether tangible or intangible, that may be redeemed	2812
by a consumer for a dollar value when making a purchase of	2813
tangible personal property or services.	2814

Sec. 5739.02. For the purpose of providing revenue with	2815
which to meet the needs of the state, for the use of the general	2816
revenue fund of the state, for the purpose of securing a thorough	2817
and efficient system of common schools throughout the state, for	2818
the purpose of affording revenues, in addition to those from	2819
general property taxes, permitted under constitutional	2820
limitations, and from other sources, for the support of local	2821
governmental functions, and for the purpose of reimbursing the	2822
state for the expense of administering this chapter, an excise tax	2823
is hereby levied on each retail sale made in this state.	2824

(A)(1) The tax shall be collected as provided in section	2825
5739.025 of the Revised Code. The rate of the tax shall be five	2826
and one-half per cent. The tax applies and is collectible when the	2827
sale is made, regardless of the time when the price is paid or	2828
delivered.	2829

(2) In the case of the lease or rental, with a fixed term of	2830
more than thirty days or an indefinite term with a minimum period	2831
of more than thirty days, of any motor vehicles designed by the	2832
manufacturer to carry a load of not more than one ton, watercraft,	2833
outboard motor, or aircraft, or of any tangible personal property,	2834
other than motor vehicles designed by the manufacturer to carry a	2835
load of more than one ton, to be used by the lessee or renter	2836
primarily for business purposes, the tax shall be collected by the	2837
vendor at the time the lease or rental is consummated and shall be	2838
calculated by the vendor on the basis of the total amount to be	2839
paid by the lessee or renter under the lease agreement. If the	2840
total amount of the consideration for the lease or rental includes	2841
amounts that are not calculated at the time the lease or rental is	2842
executed, the tax shall be calculated and collected by the vendor	2843
at the time such amounts are billed to the lessee or renter. In	2844
the case of an open-end lease or rental, the tax shall be	2845
calculated by the vendor on the basis of the total amount to be	2846
paid during the initial fixed term of the lease or rental, and for	2847
each subsequent renewal period as it comes due. As used in this	2848
division, "motor vehicle" has the same meaning as in section	2849
4501.01 of the Revised Code, and "watercraft" includes an outdrive	2850
unit attached to the watercraft.	2851

A lease with a renewal clause and a termination penalty or	2852
similar provision that applies if the renewal clause is not	2853
exercised is presumed to be a sham transaction. In such a case,	2854
the tax shall be calculated and paid on the basis of the entire	2855
length of the lease period, including any renewal periods, until	2856
the termination penalty or similar provision no longer applies.	2857
The taxpayer shall bear the burden, by a preponderance of the	2858
evidence, that the transaction or series of transactions is not a	2859
sham transaction.	2860

(3) Except as provided in division (A)(2) of this section, in	2861
the case of a sale, the price of which consists in whole or in	2862
part of the lease or rental of tangible personal property, the tax	2863
shall be measured by the installments of that lease or rental.	2864

(4) In the case of a sale of a physical fitness facility	2865
service or recreation and sports club service, the price of which	2866
consists in whole or in part of a membership for the receipt of	2867
the benefit of the service, the tax applicable to the sale shall	2868
be measured by the installments thereof.	2869

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

2870

(1) Sales to the state or any of its political subdivisions,	2871
or to any other state or its political subdivisions if the laws of	2872
that state exempt from taxation sales made to this state and its	2873
political subdivisions;	2874

(2) Sales of food for human consumption off the premises	2875
where sold;	2876

(3) Sales of food sold to students only in a cafeteria,	2877
dormitory, fraternity, or sorority maintained in a private,	2878
public, or parochial school, college, or university;	2879

(4) Sales of newspapers and of magazine subscriptions and	2880
sales or transfers of magazines distributed as controlled	2881
circulation publications;	2882

(5) The furnishing, preparing, or serving of meals without	2883
charge by an employer to an employee provided the employer records	2884
the meals as part compensation for services performed or work	2885
done;	2886

(6) Sales of motor fuel upon receipt, use, distribution, or	2887
sale of which in this state a tax is imposed by the law of this	2888
state, but this exemption shall not apply to the sale of motor	2889
fuel on which a refund of the tax is allowable under division (A)	2890
of section 5735.14 of the Revised Code; and the tax commissioner	2891
may deduct the amount of tax levied by this section applicable to	2892
the price of motor fuel when granting a refund of motor fuel tax	2893
pursuant to division (A) of section 5735.14 of the Revised Code	2894
and shall cause the amount deducted to be paid into the general	2895
revenue fund of this state;	2896

(7) Sales of natural gas by a natural gas company, of water	2897
by a water-works company, or of steam by a heating company, if in	2898
each case the thing sold is delivered to consumers through pipes	2899
or conduits, and all sales of communications services by a	2900
telegraph company, all terms as defined in section 5727.01 of the	2901
Revised Code, and sales of electricity delivered through wires;	2902

(8) Casual sales by a person, or auctioneer employed directly	2903
by the person to conduct such sales, except as to such sales of	2904
motor vehicles, watercraft or outboard motors required to be	2905
titled under section 1548.06 of the Revised Code, watercraft	2906
documented with the United States coast guard, snowmobiles, and	2907
all-purpose vehicles as defined in section 4519.01 of the Revised	2908
Code;	2909

(9)(a) Sales of services or tangible personal property, other	2910
than motor vehicles, mobile homes, and manufactured homes, by	2911
churches, organizations exempt from taxation under section	2912
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	2913
organizations operated exclusively for charitable purposes as	2914
defined in division (B)(12) of this section, provided that the	2915
number of days on which such tangible personal property or	2916
services, other than items never subject to the tax, are sold does	2917
not exceed six in any calendar year, except as otherwise provided	2918
in division (B)(9)(b) of this section. If the number of days on	2919
which such sales are made exceeds six in any calendar year, the	2920
church or organization shall be considered to be engaged in	2921
business and all subsequent sales by it shall be subject to the	2922
tax. In counting the number of days, all sales by groups within a	2923
church or within an organization shall be considered to be sales	2924
of that church or organization.	2925

(b) The limitation on the number of days on which tax-exempt	2926
sales may be made by a church or organization under division	2927
(B)(9)(a) of this section does not apply to sales made by student	2928
clubs and other groups of students of a primary or secondary	2929
school, or a parent-teacher association, booster group, or similar	2930
organization that raises money to support or fund curricular or	2931
extracurricular activities of a primary or secondary school.	2932

(c) Divisions (B)(9)(a) and (b) of this section do not apply	2933
to sales by a noncommercial educational radio or television	2934
broadcasting station.	2935

(10) Sales not within the taxing power of this state under	2936
the Constitution of the United States;	2937

(11) Except for transactions that are sales under division	2938
(B)(3)(r) of section 5739.01 of the Revised Code, the	2939
transportation of persons or property, unless the transportation	2940
is by a private investigation and security service;	2941

(12) Sales of tangible personal property or services to	2942
churches, to organizations exempt from taxation under section	2943
501(c)(3) of the Internal Revenue Code of 1986, and to any other	2944
nonprofit organizations operated exclusively for charitable	2945
purposes in this state, no part of the net income of which inures	2946
to the benefit of any private shareholder or individual, and no	2947
substantial part of the activities of which consists of carrying	2948
on propaganda or otherwise attempting to influence legislation;	2949
sales to offices administering one or more homes for the aged or	2950
one or more hospital facilities exempt under section 140.08 of the	2951
Revised Code; and sales to organizations described in division (D)	2952
of section 5709.12 of the Revised Code.	2953

"Charitable purposes" means the relief of poverty; the	2954
improvement of health through the alleviation of illness, disease,	2955
or injury; the operation of an organization exclusively for the	2956
provision of professional, laundry, printing, and purchasing	2957
services to hospitals or charitable institutions; the operation of	2958
a home for the aged, as defined in section 5701.13 of the Revised	2959
Code; the operation of a radio or television broadcasting station	2960
that is licensed by the federal communications commission as a	2961
noncommercial educational radio or television station; the	2962
operation of a nonprofit animal adoption service or a county	2963
humane society; the promotion of education by an institution of	2964
learning that maintains a faculty of qualified instructors,	2965
teaches regular continuous courses of study, and confers a	2966
recognized diploma upon completion of a specific curriculum; the	2967
operation of a parent-teacher association, booster group, or	2968
similar organization primarily engaged in the promotion and	2969
support of the curricular or extracurricular activities of a	2970
primary or secondary school; the operation of a community or area	2971
center in which presentations in music, dramatics, the arts, and	2972
related fields are made in order to foster public interest and	2973
education therein; the production of performances in music,	2974
dramatics, and the arts; or the promotion of education by an	2975
organization engaged in carrying on research in, or the	2976
dissemination of, scientific and technological knowledge and	2977
information primarily for the public.	2978

Nothing in this division shall be deemed to exempt sales to	2979
any organization for use in the operation or carrying on of a	2980
trade or business, or sales to a home for the aged for use in the	2981
operation of independent living facilities as defined in division	2982
(A) of section 5709.12 of the Revised Code.	2983

(13) Building and construction materials and services sold to	2984
construction contractors for incorporation into a structure or	2985
improvement to real property under a construction contract with	2986
this state or a political subdivision of this state, or with the	2987
United States government or any of its agencies; building and	2988
construction materials and services sold to construction	2989
contractors for incorporation into a structure or improvement to	2990
real property that are accepted for ownership by this state or any	2991
of its political subdivisions, or by the United States government	2992
or any of its agencies at the time of completion of the structures	2993
or improvements; building and construction materials sold to	2994
construction contractors for incorporation into a horticulture	2995
structure or livestock structure for a person engaged in the	2996
business of horticulture or producing livestock; building	2997
materials and services sold to a construction contractor for	2998
incorporation into a house of public worship or religious	2999
education, or a building used exclusively for charitable purposes	3000
under a construction contract with an organization whose purpose	3001
is as described in division (B)(12) of this section; building	3002
materials and services sold to a construction contractor for	3003
incorporation into a building under a construction contract with	3004
an organization exempt from taxation under section 501(c)(3) of	3005
the Internal Revenue Code of 1986 when the building is to be used	3006
exclusively for the organization's exempt purposes; building and	3007
construction materials sold for incorporation into the original	3008
construction of a sports facility under section 307.696 of the	3009
Revised Code; building and construction materials and services	3010
sold to a construction contractor for incorporation into real	3011
property outside this state if such materials and services, when	3012
sold to a construction contractor in the state in which the real	3013
property is located for incorporation into real property in that	3014
state, would be exempt from a tax on sales levied by that state;	3015
and, until one calendar year after the construction of a	3016
convention center that qualifies for property tax exemption under	3017
section 5709.084 of the Revised Code is completed, building and	3018
construction materials and services sold to a construction	3019
contractor for incorporation into the real property comprising	3020
that convention center;	3021

(14) Sales of ships or vessels or rail rolling stock used or	3022
to be used principally in interstate or foreign commerce, and	3023
repairs, alterations, fuel, and lubricants for such ships or	3024
vessels or rail rolling stock;	3025

(15) Sales to persons primarily engaged in any of the	3026
activities mentioned in division (B)(42)(a), (g), or (h) of this	3027
section, to persons engaged in making retail sales, or to persons	3028
who purchase for sale from a manufacturer tangible personal	3029
property that was produced by the manufacturer in accordance with	3030
specific designs provided by the purchaser, of packages, including	3031
material, labels, and parts for packages, and of machinery,	3032
equipment, and material for use primarily in packaging tangible	3033
personal property produced for sale, including any machinery,	3034
equipment, and supplies used to make labels or packages, to	3035
prepare packages or products for labeling, or to label packages or	3036
products, by or on the order of the person doing the packaging, or	3037
sold at retail. "Packages" includes bags, baskets, cartons,	3038
crates, boxes, cans, bottles, bindings, wrappings, and other	3039
similar devices and containers, but does not include motor	3040
vehicles or bulk tanks, trailers, or similar devices attached to	3041
motor vehicles. "Packaging" means placing in a package. Division	3042
(B)(15) of this section does not apply to persons engaged in	3043
highway transportation for hire.	3044

(16) Sales of food to persons using supplemental nutrition	3045
assistance program benefits to purchase the food. As used in this	3046
division, "food" has the same meaning as in 7 U.S.C. 2012 and	3047
federal regulations adopted pursuant to the Food and Nutrition Act	3048
of 2008.	3049

(17) Sales to persons engaged in farming, agriculture,	3050
horticulture, or floriculture, of tangible personal property for	3051
use or consumption primarily in the production by farming,	3052
agriculture, horticulture, or floriculture of other tangible	3053
personal property for use or consumption primarily in the	3054
production of tangible personal property for sale by farming,	3055
agriculture, horticulture, or floriculture; or material and parts	3056
for incorporation into any such tangible personal property for use	3057
or consumption in production; and of tangible personal property	3058
for such use or consumption in the conditioning or holding of	3059
products produced by and for such use, consumption, or sale by	3060
persons engaged in farming, agriculture, horticulture, or	3061
floriculture, except where such property is incorporated into real	3062
property;	3063

(18) Sales of drugs for a human being that may be dispensed	3064
only pursuant to a prescription; insulin as recognized in the	3065
official United States pharmacopoeia; urine and blood testing	3066
materials when used by diabetics or persons with hypoglycemia to	3067
test for glucose or acetone; hypodermic syringes and needles when	3068
used by diabetics for insulin injections; epoetin alfa when	3069
purchased for use in the treatment of persons with medical	3070
disease; hospital beds when purchased by hospitals, nursing homes,	3071
or other medical facilities; and medical oxygen and medical	3072
oxygen-dispensing equipment when purchased by hospitals, nursing	3073
homes, or other medical facilities;	3074

(19) Sales of prosthetic devices, durable medical equipment	3075
for home use, or mobility enhancing equipment, when made pursuant	3076
to a prescription and when such devices or equipment are for use	3077
by a human being.	3078

(20) Sales of emergency and fire protection vehicles and	3079
equipment to nonprofit organizations for use solely in providing	3080
fire protection and emergency services, including trauma care and	3081
emergency medical services, for political subdivisions of the	3082
state;	3083

(21) Sales of tangible personal property manufactured in this	3084
state, if sold by the manufacturer in this state to a retailer for	3085
use in the retail business of the retailer outside of this state	3086
and if possession is taken from the manufacturer by the purchaser	3087
within this state for the sole purpose of immediately removing the	3088
same from this state in a vehicle owned by the purchaser;	3089

(22) Sales of services provided by the state or any of its	3090
political subdivisions, agencies, instrumentalities, institutions,	3091
or authorities, or by governmental entities of the state or any of	3092
its political subdivisions, agencies, instrumentalities,	3093
institutions, or authorities;	3094

(23) Sales of motor vehicles to nonresidents of this state	3095
under the circumstances described in division (B) of section	3096
5739.029 of the Revised Code;	3097

(24) Sales to persons engaged in the preparation of eggs for	3098
sale of tangible personal property used or consumed directly in	3099
such preparation, including such tangible personal property used	3100
for cleaning, sanitizing, preserving, grading, sorting, and	3101
classifying by size; packages, including material and parts for	3102
packages, and machinery, equipment, and material for use in	3103
packaging eggs for sale; and handling and transportation equipment	3104
and parts therefor, except motor vehicles licensed to operate on	3105
public highways, used in intraplant or interplant transfers or	3106
shipment of eggs in the process of preparation for sale, when the	3107
plant or plants within or between which such transfers or	3108
shipments occur are operated by the same person. "Packages"	3109
includes containers, cases, baskets, flats, fillers, filler flats,	3110
cartons, closure materials, labels, and labeling materials, and	3111
"packaging" means placing therein.	3112

(25)(a) Sales of water to a consumer for residential use,	3113
~~except the sale of bottled water, distilled water, mineral water,~~	3114
~~carbonated water, or ice~~;	3115

(b) Sales of water by a nonprofit corporation engaged	3116
exclusively in the treatment, distribution, and sale of water to	3117
consumers, if such water is delivered to consumers through pipes	3118
or tubing.	3119

(26) Fees charged for inspection or reinspection of motor	3120
vehicles under section 3704.14 of the Revised Code;	3121

(27) Sales to persons licensed to conduct a food service	3122
operation pursuant to section 3717.43 of the Revised Code, of	3123
tangible personal property primarily used directly for the	3124
following:	3125

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

3126

(b) To preserve food that has been or will be prepared for	3127
human consumption for sale by the food service operator, not	3128
including tangible personal property used to display food for	3129
selection by the consumer;	3130

(c) To clean tangible personal property used to prepare or	3131
serve food for human consumption for sale.	3132

(28) Sales of animals by nonprofit animal adoption services	3133
or county humane societies;	3134

(29) Sales of services to a corporation described in division	3135
(A) of section 5709.72 of the Revised Code, and sales of tangible	3136
personal property that qualifies for exemption from taxation under	3137
section 5709.72 of the Revised Code;	3138

(30) Sales and installation of agricultural land tile, as	3139
defined in division (B)(5)(a) of section 5739.01 of the Revised	3140
Code;	3141

(31) Sales and erection or installation of portable grain	3142
bins, as defined in division (B)(5)(b) of section 5739.01 of the	3143
Revised Code;	3144

(32) The sale, lease, repair, and maintenance of, parts for,	3145
or items attached to or incorporated in, motor vehicles that are	3146
primarily used for transporting tangible personal property	3147
belonging to others by a person engaged in highway transportation	3148
for hire, except for packages and packaging used for the	3149
transportation of tangible personal property;	3150

(33) Sales to the state headquarters of any veterans'	3151
organization in this state that is either incorporated and issued	3152
a charter by the congress of the United States or is recognized by	3153
the United States veterans administration, for use by the	3154
headquarters;	3155

(34) Sales to a telecommunications service vendor, mobile	3156
telecommunications service vendor, or satellite broadcasting	3157
service vendor of tangible personal property and services used	3158
directly and primarily in transmitting, receiving, switching, or	3159
recording any interactive, one- or two-way electromagnetic	3160
communications, including voice, image, data, and information,	3161
through the use of any medium, including, but not limited to,	3162
poles, wires, cables, switching equipment, computers, and record	3163
storage devices and media, and component parts for the tangible	3164
personal property. The exemption provided in this division shall	3165
be in lieu of all other exemptions under division (B)(42)(a) or	3166
(n) of this section to which the vendor may otherwise be entitled,	3167
based upon the use of the thing purchased in providing the	3168
telecommunications, mobile telecommunications, or satellite	3169
broadcasting service.	3170

(35)(a) Sales where the purpose of the consumer is to use or	3171
consume the things transferred in making retail sales and	3172
consisting of newspaper inserts, catalogues, coupons, flyers, gift	3173
certificates, or other advertising material that prices and	3174
describes tangible personal property offered for retail sale.	3175

(b) Sales to direct marketing vendors of preliminary	3176
materials such as photographs, artwork, and typesetting that will	3177
be used in printing advertising material; of printed matter that	3178
offers free merchandise or chances to win sweepstake prizes and	3179
that is mailed to potential customers with advertising material	3180
described in division (B)(35)(a) of this section; and of equipment	3181
such as telephones, computers, facsimile machines, and similar	3182
tangible personal property primarily used to accept orders for	3183
direct marketing retail sales.	3184

(c) Sales of automatic food vending machines that preserve	3185
food with a shelf life of forty-five days or less by refrigeration	3186
and dispense it to the consumer.	3187

For purposes of division (B)(35) of this section, "direct	3188
marketing" means the method of selling where consumers order	3189
tangible personal property by United States mail, delivery	3190
service, or telecommunication and the vendor delivers or ships the	3191
tangible personal property sold to the consumer from a warehouse,	3192
catalogue distribution center, or similar fulfillment facility by	3193
means of the United States mail, delivery service, or common	3194
carrier.	3195

(36) Sales to a person engaged in the business of	3196
horticulture or producing livestock of materials to be	3197
incorporated into a horticulture structure or livestock structure;	3198

(37) Sales of personal computers, computer monitors, computer	3199
keyboards, modems, and other peripheral computer equipment to an	3200
individual who is licensed or certified to teach in an elementary	3201
or a secondary school in this state for use by that individual in	3202
preparation for teaching elementary or secondary school students;	3203

(38) Sales to a professional racing team of any of the	3204
following:	3205

(a) Motor racing vehicles;

3206

(b) Repair services for motor racing vehicles;

3207

(c) Items of property that are attached to or incorporated in	3208
motor racing vehicles, including engines, chassis, and all other	3209
components of the vehicles, and all spare, replacement, and	3210
rebuilt parts or components of the vehicles; except not including	3211
tires, consumable fluids, paint, and accessories consisting of	3212
instrumentation sensors and related items added to the vehicle to	3213
collect and transmit data by means of telemetry and other forms of	3214
communication.	3215

(39) Sales of used manufactured homes and used mobile homes,	3216
as defined in section 5739.0210 of the Revised Code, made on or	3217
after January 1, 2000;	3218

(40) Sales of tangible personal property and services to a	3219
provider of electricity used or consumed directly and primarily in	3220
generating, transmitting, or distributing electricity for use by	3221
others, including property that is or is to be incorporated into	3222
and will become a part of the consumer's production, transmission,	3223
or distribution system and that retains its classification as	3224
tangible personal property after incorporation; fuel or power used	3225
in the production, transmission, or distribution of electricity;	3226
energy conversion equipment as defined in section 5727.01 of the	3227
Revised Code; and tangible personal property and services used in	3228
the repair and maintenance of the production, transmission, or	3229
distribution system, including only those motor vehicles as are	3230
specially designed and equipped for such use. The exemption	3231
provided in this division shall be in lieu of all other exemptions	3232
in division (B)(42)(a) or (n) of this section to which a provider	3233
of electricity may otherwise be entitled based on the use of the	3234
tangible personal property or service purchased in generating,	3235
transmitting, or distributing electricity.	3236

(41) Sales to a person providing services under division	3237
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	3238
personal property and services used directly and primarily in	3239
providing taxable services under that section.	3240

(42) Sales where the purpose of the purchaser is to do any of	3241
the following:	3242

(a) To incorporate the thing transferred as a material or a	3243
part into tangible personal property to be produced for sale by	3244
manufacturing, assembling, processing, or refining; or to use or	3245
consume the thing transferred directly in producing tangible	3246
personal property for sale by mining, including, without	3247
limitation, the extraction from the earth of all substances that	3248
are classed geologically as minerals, production of crude oil and	3249
natural gas, or directly in the rendition of a public utility	3250
service, except that the sales tax levied by this section shall be	3251
collected upon all meals, drinks, and food for human consumption	3252
sold when transporting persons. Persons engaged in rendering	3253
services in the exploration for, and production of, crude oil and	3254
natural gas for others are deemed engaged directly in the	3255
exploration for, and production of, crude oil and natural gas.	3256
This paragraph does not exempt from "retail sale" or "sales at	3257
retail" the sale of tangible personal property that is to be	3258
incorporated into a structure or improvement to real property.	3259

(b) To hold the thing transferred as security for the	3260
performance of an obligation of the vendor;	3261

(c) To resell, hold, use, or consume the thing transferred as	3262
evidence of a contract of insurance;	3263

(d) To use or consume the thing directly in commercial	3264
fishing;	3265

(e) To incorporate the thing transferred as a material or a	3266
part into, or to use or consume the thing transferred directly in	3267
the production of, magazines distributed as controlled circulation	3268
publications;	3269

(f) To use or consume the thing transferred in the production	3270
and preparation in suitable condition for market and sale of	3271
printed, imprinted, overprinted, lithographic, multilithic,	3272
blueprinted, photostatic, or other productions or reproductions of	3273
written or graphic matter;	3274

(g) To use the thing transferred, as described in section	3275
5739.011 of the Revised Code, primarily in a manufacturing	3276
operation to produce tangible personal property for sale;	3277

(h) To use the benefit of a warranty, maintenance or service	3278
contract, or similar agreement, as described in division (B)(7) of	3279
section 5739.01 of the Revised Code, to repair or maintain	3280
tangible personal property, if all of the property that is the	3281
subject of the warranty, contract, or agreement would not be	3282
subject to the tax imposed by this section;	3283

(i) To use the thing transferred as qualified research and	3284
development equipment;	3285

(j) To use or consume the thing transferred primarily in	3286
storing, transporting, mailing, or otherwise handling purchased	3287
sales inventory in a warehouse, distribution center, or similar	3288
facility when the inventory is primarily distributed outside this	3289
state to retail stores of the person who owns or controls the	3290
warehouse, distribution center, or similar facility, to retail	3291
stores of an affiliated group of which that person is a member, or	3292
by means of direct marketing. This division does not apply to	3293
motor vehicles registered for operation on the public highways. As	3294
used in this division, "affiliated group" has the same meaning as	3295
in division (B)(3)(e) of section 5739.01 of the Revised Code and	3296
"direct marketing" has the same meaning as in division (B)(35) of	3297
this section.	3298

(k) To use or consume the thing transferred to fulfill a	3299
contractual obligation incurred by a warrantor pursuant to a	3300
warranty provided as a part of the price of the tangible personal	3301
property sold or by a vendor of a warranty, maintenance or service	3302
contract, or similar agreement the provision of which is defined	3303
as a sale under division (B)(7) of section 5739.01 of the Revised	3304
Code;	3305

(l) To use or consume the thing transferred in the production	3306
of a newspaper for distribution to the public;	3307

(m) To use tangible personal property to perform a service	3308
listed in division (B)(3) of section 5739.01 of the Revised Code,	3309
if the property is or is to be permanently transferred to the	3310
consumer of the service as an integral part of the performance of	3311
the service;	3312

(n) To use or consume the thing transferred primarily in	3313
producing tangible personal property for sale by farming,	3314
agriculture, horticulture, or floriculture. Persons engaged in	3315
rendering farming, agriculture, horticulture, or floriculture	3316
services for others are deemed engaged primarily in farming,	3317
agriculture, horticulture, or floriculture. This paragraph does	3318
not exempt from "retail sale" or "sales at retail" the sale of	3319
tangible personal property that is to be incorporated into a	3320
structure or improvement to real property.	3321

(o) To use or consume the thing transferred in acquiring,	3322
formatting, editing, storing, and disseminating data or	3323
information by electronic publishing.	3324

As used in division (B)(42) of this section, "thing" includes	3325
all transactions included in divisions (B)(3)(a), (b), and (e) of	3326
section 5739.01 of the Revised Code.	3327

(43) Sales conducted through a coin operated device that	3328
activates vacuum equipment or equipment that dispenses water,	3329
whether or not in combination with soap or other cleaning agents	3330
or wax, to the consumer for the consumer's use on the premises in	3331
washing, cleaning, or waxing a motor vehicle, provided no other	3332
personal property or personal service is provided as part of the	3333
transaction.	3334

(44) Sales of replacement and modification parts for engines,	3335
airframes, instruments, and interiors in, and paint for, aircraft	3336
used primarily in a fractional aircraft ownership program, and	3337
sales of services for the repair, modification, and maintenance of	3338
such aircraft, and machinery, equipment, and supplies primarily	3339
used to provide those services.	3340

(45) Sales of telecommunications service that is used	3341
directly and primarily to perform the functions of a call center.	3342
As used in this division, "call center" means any physical	3343
location where telephone calls are placed or received in high	3344
volume for the purpose of making sales, marketing, customer	3345
service, technical support, or other specialized business	3346
activity, and that employs at least fifty individuals that engage	3347
in call center activities on a full-time basis, or sufficient	3348
individuals to fill fifty full-time equivalent positions.	3349

(46) Sales by a telecommunications service vendor of 900	3350
service to a subscriber. This division does not apply to	3351
information services, as defined in division (FF) of section	3352
5739.01 of the Revised Code.	3353

(47) Sales of value-added non-voice data service. This	3354
division does not apply to any similar service that is not	3355
otherwise a telecommunications service.	3356

(48)(a) Sales of machinery, equipment, and software to a	3357
qualified direct selling entity for use in a warehouse or	3358
distribution center primarily for storing, transporting, or	3359
otherwise handling inventory that is held for sale to independent	3360
salespersons who operate as direct sellers and that is held	3361
primarily for distribution outside this state;	3362

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

3363

(i) "Direct seller" means a person selling consumer products	3364
to individuals for personal or household use and not from a fixed	3365
retail location, including selling such product at in-home product	3366
demonstrations, parties, and other one-on-one selling.	3367

(ii) "Qualified direct selling entity" means an entity	3368
selling to direct sellers at the time the entity enters into a tax	3369
credit agreement with the tax credit authority pursuant to section	3370
122.17 of the Revised Code, provided that the agreement was	3371
entered into on or after January 1, 2007. Neither contingencies	3372
relevant to the granting of, nor later developments with respect	3373
to, the tax credit shall impair the status of the qualified direct	3374
selling entity under division (B)(48) of this section after	3375
execution of the tax credit agreement by the tax credit authority.	3376

(c) Division (B)(48) of this section is limited to machinery,	3377
equipment, and software first stored, used, or consumed in this	3378
state within the period commencing June 24, 2008, and ending on	3379
the date that is five years after that date.	3380

(49) Sales of materials, parts, equipment, or engines used in	3381
the repair or maintenance of aircraft or avionics systems of such	3382
aircraft, and sales of repair, remodeling, replacement, or	3383
maintenance services in this state performed on aircraft or on an	3384
aircraft's avionics, engine, or component materials or parts. As	3385
used in division (B)(49) of this section, "aircraft" means	3386
aircraft of more than six thousand pounds maximum certified	3387
takeoff weight or used exclusively in general aviation.	3388

(50) Sales of full flight simulators that are used for pilot	3389
or flight-crew training, sales of repair or replacement parts or	3390
components, and sales of repair or maintenance services for such	3391
full flight simulators. "Full flight simulator" means a replica of	3392
a specific type, or make, model, and series of aircraft cockpit.	3393
It includes the assemblage of equipment and computer programs	3394
necessary to represent aircraft operations in ground and flight	3395
conditions, a visual system providing an out-of-the-cockpit view,	3396
and a system that provides cues at least equivalent to those of a	3397
three-degree-of-freedom motion system, and has the full range of	3398
capabilities of the systems installed in the device as described	3399
in appendices A and B of part 60 of chapter 1 of title 14 of the	3400
Code of Federal Regulations.	3401

(51) Any transfer or lease of tangible personal property	3402
between the state and a successful proposer in accordance with	3403
sections 126.60 to 126.605 of the Revised Code, provided the	3404
property is part of a project as defined in section 126.60 of the	3405
Revised Code and the state retains ownership of the project or	3406
part thereof that is being transferred or leased, between the	3407
state and JobsOhio in accordance with section 4313.02 of the	3408
Revised Code.	3409

(C) For the purpose of the proper administration of this	3410
chapter, and to prevent the evasion of the tax, it is presumed	3411
that all sales made in this state are subject to the tax until the	3412
contrary is established.	3413

(D) The levy of this tax on retail sales of recreation and	3414
sports club service shall not prevent a municipal corporation from	3415
levying any tax on recreation and sports club dues or on any	3416
income generated by recreation and sports club dues.	3417

(E) The tax collected by the vendor from the consumer under	3418
this chapter is not part of the price, but is a tax collection for	3419
the benefit of the state, and of counties levying an additional	3420
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	3421
Code and of transit authorities levying an additional sales tax	3422
pursuant to section 5739.023 of the Revised Code. Except for the	3423
discount authorized under section 5739.12 of the Revised Code and	3424
the effects of any rounding pursuant to section 5703.055 of the	3425
Revised Code, no person other than the state or such a county or	3426
transit authority shall derive any benefit from the collection or	3427
payment of the tax levied by this section or section 5739.021,	3428
5739.023, or 5739.026 of the Revised Code.	3429

Sec. 5739.021. (A) For the purpose of providing additional	3430
general revenues for the county or supporting criminal and	3431
administrative justice services in the county, or both, and to pay	3432
the expenses of administering such levy, any county may levy a tax	3433
at the rate of not more than one per cent at any multiple of	3434
one-fourth of one per cent upon every retail sale made in the	3435
county, except sales of watercraft and outboard motors required to	3436
be titled pursuant to Chapter 1548. of the Revised Code and sales	3437
of motor vehicles, and may increase the rate of an existing tax to	3438
not more than one per cent at any multiple of one-fourth of one	3439
per cent.	3440

The tax shall be levied and the rate increased pursuant to a	3441
resolution of the board of county commissioners. The resolution	3442
shall state the purpose for which the tax is to be levied and the	3443
number of years for which the tax is to be levied, or that it is	3444
for a continuing period of time. If the tax is to be levied for	3445
the purpose of providing additional general revenues and for the	3446
purpose of supporting criminal and administrative justice	3447
services, the resolution shall state the rate or amount of the tax	3448
to be apportioned to each such purpose. The rate or amount may be	3449
different for each year the tax is to be levied, but the rates or	3450
amounts actually apportioned each year shall not be different from	3451
that stated in the resolution for that year. If the resolution is	3452
adopted as an emergency measure necessary for the immediate	3453
preservation of the public peace, health, or safety, it must	3454
receive an affirmative vote of all of the members of the board of	3455
county commissioners and shall state the reasons for such	3456
necessity. The board shall deliver a certified copy of the	3457
resolution to the tax commissioner, not later than the sixty-fifth	3458
day prior to the date on which the tax is to become effective,	3459
which shall be the first day of the calendar quarter.	3460

Prior to the adoption of any resolution under this section,	3461
the board of county commissioners shall conduct two public	3462
hearings on the resolution, the second hearing to be not less than	3463
three nor more than ten days after the first. Notice of the date,	3464
time, and place of the hearings shall be given by publication in a	3465
newspaper of general circulation in the county, or as provided in	3466
section 7.16 of the Revised Code, once a week on the same day of	3467
the week for two consecutive weeks, the second publication being	3468
not less than ten nor more than thirty days prior to the first	3469
hearing.	3470

Except as provided in division (B)(3) of this section, the	3471
resolution shall be subject to a referendum as provided in	3472
sections 305.31 to 305.41 of the Revised Code.	3473

If a petition for a referendum is filed, the county auditor	3474
with whom the petition was filed shall, within five days, notify	3475
the board of county commissioners and the tax commissioner of the	3476
filing of the petition by certified mail. If the board of	3477
elections with which the petition was filed declares the petition	3478
invalid, the board of elections, within five days, shall notify	3479
the board of county commissioners and the tax commissioner of that	3480
declaration by certified mail. If the petition is declared to be	3481
invalid, the effective date of the tax or increased rate of tax	3482
levied by this section shall be the first day of a calendar	3483
quarter following the expiration of sixty-five days from the date	3484
the commissioner receives notice from the board of elections that	3485
the petition is invalid.	3486

(B)(1) A resolution that is not adopted as an emergency	3487
measure may direct the board of elections to submit the question	3488
of levying the tax or increasing the rate of tax to the electors	3489
of the county at a special election held on the date specified by	3490
the board of county commissioners in the resolution, provided that	3491
the election occurs not less than ninety days after a certified	3492
copy of such resolution is transmitted to the board of elections	3493
and the election is not held in February or August of any year.	3494
Upon transmission of the resolution to the board of elections, the	3495
board of county commissioners shall notify the tax commissioner in	3496
writing of the levy question to be submitted to the electors. No	3497
resolution adopted under this division shall go into effect unless	3498
approved by a majority of those voting upon it, and, except as	3499
provided in division (B)(3) of this section, shall become	3500
effective on the first day of a calendar quarter following the	3501
expiration of sixty-five days from the date the tax commissioner	3502
receives notice from the board of elections of the affirmative	3503
vote.	3504

(2) A resolution that is adopted as an emergency measure	3505
shall go into effect as provided in division (A) of this section,	3506
but may direct the board of elections to submit the question of	3507
repealing the tax or increase in the rate of the tax to the	3508
electors of the county at the next general election in the county	3509
occurring not less than ninety days after a certified copy of the	3510
resolution is transmitted to the board of elections. Upon	3511
transmission of the resolution to the board of elections, the	3512
board of county commissioners shall notify the tax commissioner in	3513
writing of the levy question to be submitted to the electors. The	3514
ballot question shall be the same as that prescribed in section	3515
5739.022 of the Revised Code. The board of elections shall notify	3516
the board of county commissioners and the tax commissioner of the	3517
result of the election immediately after the result has been	3518
declared. If a majority of the qualified electors voting on the	3519
question of repealing the tax or increase in the rate of the tax	3520
vote for repeal of the tax or repeal of the increase, the board of	3521
county commissioners, on the first day of a calendar quarter	3522
following the expiration of sixty-five days after the date the	3523
board and tax commissioner receive notice of the result of the	3524
election, shall, in the case of a repeal of the tax, cease to levy	3525
the tax, or, in the case of a repeal of an increase in the rate of	3526
the tax, cease to levy the increased rate and levy the tax at the	3527
rate at which it was imposed immediately prior to the increase in	3528
rate.	3529

(3) If a vendor ~~that is registered with the central~~	3530
~~electronic registration system provided for in section 5740.05 of~~	3531
~~the Revised Code~~ makes a sale in this state by printed catalog and	3532
the consumer computed the tax on the sale based on local rates	3533
published in the catalog, any tax levied or repealed or rate	3534
changed under this section shall not apply to such a sale until	3535
the first day of a calendar quarter following the expiration of	3536
one hundred twenty days from the date of notice by the tax	3537
commissioner pursuant to division (H) of this section.	3538

(C) If a resolution is rejected at a referendum or if a	3539
resolution adopted after January 1, 1982, as an emergency measure	3540
is repealed by the electors pursuant to division (B)(2) of this	3541
section or section 5739.022 of the Revised Code, then for one year	3542
after the date of the election at which the resolution was	3543
rejected or repealed the board of county commissioners may not	3544
adopt any resolution authorized by this section as an emergency	3545
measure.	3546

(D) The board of county commissioners, at any time while a	3547
tax levied under this section is in effect, may by resolution	3548
reduce the rate at which the tax is levied to a lower rate	3549
authorized by this section. Any reduction in the rate at which the	3550
tax is levied shall be made effective on the first day of a	3551
calendar quarter next following the sixty-fifth day after a	3552
certified copy of the resolution is delivered to the tax	3553
commissioner.	3554

(E) The tax on every retail sale subject to a tax levied	3555
pursuant to this section shall be in addition to the tax levied by	3556
section 5739.02 of the Revised Code and any tax levied pursuant to	3557
section 5739.023 or 5739.026 of the Revised Code.	3558

A county that levies a tax pursuant to this section shall	3559
levy a tax at the same rate pursuant to section 5741.021 of the	3560
Revised Code.	3561

The additional tax levied by the county shall be collected	3562
pursuant to section 5739.025 of the Revised Code. If the	3563
additional tax or some portion thereof is levied for the purpose	3564
of criminal and administrative justice services, the revenue from	3565
the tax, or the amount or rate apportioned to that purpose, shall	3566
be credited to a special fund created in the county treasury for	3567
receipt of that revenue.	3568

Any tax levied pursuant to this section is subject to the	3569
exemptions provided in section 5739.02 of the Revised Code and in	3570
addition shall not be applicable to sales not within the taxing	3571
power of a county under the Constitution of the United States or	3572
the Ohio Constitution.	3573

(F) For purposes of this section, a copy of a resolution is	3574
"certified" when it contains a written statement attesting that	3575
the copy is a true and exact reproduction of the original	3576
resolution.	3577

(G) If a board of commissioners intends to adopt a resolution	3578
to levy a tax in whole or in part for the purpose of criminal and	3579
administrative justice services, the board shall prepare and make	3580
available at the first public hearing at which the resolution is	3581
considered a statement containing the following information:	3582

(1) For each of the two preceding fiscal years, the amount of	3583
expenditures made by the county from the county general fund for	3584
the purpose of criminal and administrative justice services;	3585

(2) For the fiscal year in which the resolution is adopted,	3586
the board's estimate of the amount of expenditures to be made by	3587
the county from the county general fund for the purpose of	3588
criminal and administrative justice services;	3589

(3) For each of the two fiscal years after the fiscal year in	3590
which the resolution is adopted, the board's preliminary plan for	3591
expenditures to be made from the county general fund for the	3592
purpose of criminal and administrative justice services, both	3593
under the assumption that the tax will be imposed for that purpose	3594
and under the assumption that the tax would not be imposed for	3595
that purpose, and for expenditures to be made from the special	3596
fund created under division (E) of this section under the	3597
assumption that the tax will be imposed for that purpose.	3598

The board shall prepare the statement and the preliminary	3599
plan using the best information available to the board at the time	3600
the statement is prepared. Neither the statement nor the	3601
preliminary plan shall be used as a basis to challenge the	3602
validity of the tax in any court of competent jurisdiction, nor	3603
shall the statement or preliminary plan limit the authority of the	3604
board to appropriate, pursuant to section 5705.38 of the Revised	3605
Code, an amount different from that specified in the preliminary	3606
plan.	3607

(H) Upon receipt from a board of county commissioners of a	3608
certified copy of a resolution required by division (A) or (D) of	3609
this section, or from the board of elections of a notice of the	3610
results of an election required by division (A) or (B)(1) or (2)	3611
of this section, the tax commissioner shall provide notice of a	3612
tax rate change in a manner that is reasonably accessible to all	3613
affected vendors. The commissioner shall provide this notice at	3614
least sixty days prior to the effective date of the rate change.	3615
The commissioner, by rule, may establish the method by which	3616
notice will be provided.	3617

(I) As used in this section, "criminal and administrative	3618
justice services" means the exercise by the county sheriff of all	3619
powers and duties vested in that office by law; the exercise by	3620
the county prosecuting attorney of all powers and duties vested in	3621
that office by law; the exercise by any court in the county of all	3622
powers and duties vested in that court; the exercise by the clerk	3623
of the court of common pleas, any clerk of a municipal court	3624
having jurisdiction throughout the county, or the clerk of any	3625
county court of all powers and duties vested in the clerk by law	3626
except, in the case of the clerk of the court of common pleas, the	3627
titling of motor vehicles or watercraft pursuant to Chapter 1548.	3628
or 4505. of the Revised Code; the exercise by the county coroner	3629
of all powers and duties vested in that office by law; making	3630
payments to any other public agency or a private, nonprofit	3631
agency, the purposes of which in the county include the diversion,	3632
adjudication, detention, or rehabilitation of criminals or	3633
juvenile offenders; the operation and maintenance of any detention	3634
facility, as defined in section 2921.01 of the Revised Code; and	3635
the construction, acquisition, equipping, or repair of such a	3636
detention facility, including the payment of any debt charges	3637
incurred in the issuance of securities pursuant to Chapter 133. of	3638
the Revised Code for the purpose of constructing, acquiring,	3639
equipping, or repairing such a facility.	3640

Sec. 5739.023. (A)(1) For the purpose of providing	3641
additional general revenues for a transit authority and paying the	3642
expenses of administering such levy, any transit authority as	3643
defined in division (U) of section 5739.01 of the Revised Code may	3644
levy a tax upon every retail sale made in the territory of the	3645
transit authority, except sales of watercraft and outboard motors	3646
required to be titled pursuant to Chapter 1548. of the Revised	3647
Code and sales of motor vehicles, at a rate of not more than one	3648
and one-half per cent at any multiple of one-fourth of one per	3649
cent and may increase the existing rate of tax to not more than	3650
one and one-half per cent at any multiple of one-fourth of one per	3651
cent. The tax shall be levied and the rate increased pursuant to a	3652
resolution of the legislative authority of the transit authority	3653
and a certified copy of the resolution shall be delivered by the	3654
fiscal officer to the board of elections as provided in section	3655
3505.071 of the Revised Code and to the tax commissioner. The	3656
resolution shall specify the number of years for which the tax is	3657
to be in effect or that the tax is for a continuing period of	3658
time, and the date of the election on the question of the tax	3659
pursuant to section 306.70 of the Revised Code. The board of	3660
elections shall certify the results of the election to the transit	3661
authority and tax commissioner.	3662

(2) Except as provided in division (C) of this section, the	3663
tax levied by the resolution shall become effective on the first	3664
day of a calendar quarter next following the sixty-fifth day	3665
following the date the tax commissioner receives from the board of	3666
elections the certification of the results of the election on the	3667
question of the tax.	3668

(B) The legislative authority may, at any time while the tax	3669
is in effect, by resolution fix the rate of the tax at any rate	3670
authorized by this section and not in excess of that approved by	3671
the voters pursuant to section 306.70 of the Revised Code. Except	3672
as provided in division (C) of this section, any change in the	3673
rate of the tax shall be made effective on the first day of a	3674
calendar quarter next following the sixty-fifth day following the	3675
date the tax commissioner receives the certification of the	3676
resolution; provided, that in any case where bonds, or notes in	3677
anticipation of bonds, of a regional transit authority have been	3678
issued under section 306.40 of the Revised Code without a vote of	3679
the electors while the tax proposed to be reduced was in effect,	3680
the board of trustees of the regional transit authority shall	3681
continue to levy and collect under authority of the original	3682
election authorizing the tax a rate of tax that the board of	3683
trustees reasonably estimates will produce an amount in that year	3684
equal to the amount of principal of and interest on those bonds as	3685
is payable in that year.	3686

(C) Upon receipt from the board of elections of the	3687
certification of the results of the election required by division	3688
(A) of this section, or from the legislative authority of the	3689
certification of a resolution under division (B) of this section,	3690
the tax commissioner shall provide notice of a tax rate change in	3691
a manner that is reasonably accessible to all affected vendors.	3692
The commissioner shall provide this notice at least sixty days	3693
prior to the effective date of the rate change. The commissioner,	3694
by rule, may establish the method by which notice will be	3695
provided.	3696

(D) If a vendor ~~that is registered with the central~~	3697
~~electronic registration system provided for in section 5740.05 of~~	3698
~~the Revised Code~~ makes a sale in this state by printed catalog and	3699
the consumer computed the tax on the sale based on local rates	3700
published in the catalog, any tax levied or rate changed under	3701
this section shall not apply to such a sale until the first day of	3702
a calendar quarter following the expiration of one hundred twenty	3703
days from the date of notice by the tax commissioner pursuant to	3704
division (C) of this section.	3705

(E) The tax on every retail sale subject to a tax levied	3706
pursuant to this section is in addition to the tax levied by	3707
section 5739.02 of the Revised Code and any tax levied pursuant to	3708
section 5739.021 or 5739.026 of the Revised Code.	3709

(F) The additional tax levied by the transit authority shall	3710
be collected pursuant to section 5739.025 of the Revised Code.	3711

(G) Any tax levied pursuant to this section is subject to the	3712
exemptions provided in section 5739.02 of the Revised Code and in	3713
addition shall not be applicable to sales not within the taxing	3714
power of a transit authority under the constitution of the United	3715
States or the constitution of this state.	3716

(H) The rate of a tax levied under this section is subject to	3717
reduction under section 5739.028 of the Revised Code, if a ballot	3718
question is approved by voters pursuant to that section.	3719

Sec. 5739.026. (A) A board of county commissioners may levy	3720
a tax of one-fourth or one-half of one per cent on every retail	3721
sale in the county, except sales of watercraft and outboard motors	3722
required to be titled pursuant to Chapter 1548. of the Revised	3723
Code and sales of motor vehicles, and may increase an existing	3724
rate of one-fourth of one per cent to one-half of one per cent, to	3725
pay the expenses of administering the tax and, except as provided	3726
in division (A)(6) of this section, for any one or more of the	3727
following purposes provided that the aggregate levy for all such	3728
purposes does not exceed one-half of one per cent:	3729

(1) To provide additional revenues for the payment of bonds	3730
or notes issued in anticipation of bonds issued by a convention	3731
facilities authority established by the board of county	3732
commissioners under Chapter 351. of the Revised Code and to	3733
provide additional operating revenues for the convention	3734
facilities authority;	3735

(2) To provide additional revenues for a transit authority	3736
operating in the county;	3737

(3) To provide additional revenue for the county's general	3738
fund;	3739

(4) To provide additional revenue for permanent improvements	3740
within the county to be distributed by the community improvements	3741
board in accordance with section 307.283 and to pay principal,	3742
interest, and premium on bonds issued under section 307.284 of the	3743
Revised Code;	3744

(5) To provide additional revenue for the acquisition,	3745
construction, equipping, or repair of any specific permanent	3746
improvement or any class or group of permanent improvements, which	3747
improvement or class or group of improvements shall be enumerated	3748
in the resolution required by division (D) of this section, and to	3749
pay principal, interest, premium, and other costs associated with	3750
the issuance of bonds or notes in anticipation of bonds issued	3751
pursuant to Chapter 133. of the Revised Code for the acquisition,	3752
construction, equipping, or repair of the specific permanent	3753
improvement or class or group of permanent improvements;	3754

(6) To provide revenue for the implementation and operation	3755
of a 9-1-1 system in the county. If the tax is levied or the rate	3756
increased exclusively for such purpose, the tax shall not be	3757
levied or the rate increased for more than five years. At the end	3758
of the last year the tax is levied or the rate increased, any	3759
balance remaining in the special fund established for such purpose	3760
shall remain in that fund and be used exclusively for such purpose	3761
until the fund is completely expended, and, notwithstanding	3762
section 5705.16 of the Revised Code, the board of county	3763
commissioners shall not petition for the transfer of money from	3764
such special fund, and the tax commissioner shall not approve such	3765
a petition.	3766

If the tax is levied or the rate increased for such purpose	3767
for more than five years, the board of county commissioners also	3768
shall levy the tax or increase the rate of the tax for one or more	3769
of the purposes described in divisions (A)(1) to (5) of this	3770
section and shall prescribe the method for allocating the revenues	3771
from the tax each year in the manner required by division (C) of	3772
this section.	3773

(7) To provide additional revenue for the operation or	3774
maintenance of a detention facility, as that term is defined under	3775
division (F) of section 2921.01 of the Revised Code;	3776

(8) To provide revenue to finance the construction or	3777
renovation of a sports facility, but only if the tax is levied for	3778
that purpose in the manner prescribed by section 5739.028 of the	3779
Revised Code.	3780

As used in division (A)(8) of this section:

3781

(a) "Sports facility" means a facility intended to house	3782
major league professional athletic teams.	3783

(b) "Constructing" or "construction" includes providing	3784
fixtures, furnishings, and equipment.	3785

(9) To provide additional revenue for the acquisition of	3786
agricultural easements, as defined in section 5301.67 of the	3787
Revised Code; to pay principal, interest, and premium on bonds	3788
issued under section 133.60 of the Revised Code; and for the	3789
supervision and enforcement of agricultural easements held by the	3790
county;	3791

(10) To provide revenue for the provision of ambulance,	3792
paramedic, or other emergency medical services.	3793

Pursuant to section 755.171 of the Revised Code, a board of	3794
county commissioners may pledge and contribute revenue from a tax	3795
levied for the purpose of division (A)(5) of this section to the	3796
payment of debt charges on bonds issued under section 755.17 of	3797
the Revised Code.	3798

The rate of tax shall be a multiple of one-fourth of one per	3799
cent, unless a portion of the rate of an existing tax levied under	3800
section 5739.023 of the Revised Code has been reduced, and the	3801
rate of tax levied under this section has been increased, pursuant	3802
to section 5739.028 of the Revised Code, in which case the	3803
aggregate of the rates of tax levied under this section and	3804
section 5739.023 of the Revised Code shall be a multiple of	3805
one-fourth of one per cent. The tax shall be levied and the rate	3806
increased pursuant to a resolution adopted by a majority of the	3807
members of the board. The board shall deliver a certified copy of	3808
the resolution to the tax commissioner, not later than the	3809
sixty-fifth day prior to the date on which the tax is to become	3810
effective, which shall be the first day of a calendar quarter.	3811

Prior to the adoption of any resolution to levy the tax or to	3812
increase the rate of tax exclusively for the purpose set forth in	3813
division (A)(3) of this section, the board of county commissioners	3814
shall conduct two public hearings on the resolution, the second	3815
hearing to be no fewer than three nor more than ten days after the	3816
first. Notice of the date, time, and place of the hearings shall	3817
be given by publication in a newspaper of general circulation in	3818
the county, or as provided in section 7.16 of the Revised Code,	3819
once a week on the same day of the week for two consecutive weeks.	3820
The second publication shall be no fewer than ten nor more than	3821
thirty days prior to the first hearing. Except as provided in	3822
division (E) of this section, the resolution shall be subject to a	3823
referendum as provided in sections 305.31 to 305.41 of the Revised	3824
Code. If the resolution is adopted as an emergency measure	3825
necessary for the immediate preservation of the public peace,	3826
health, or safety, it must receive an affirmative vote of all of	3827
the members of the board of county commissioners and shall state	3828
the reasons for the necessity.	3829

If the tax is for more than one of the purposes set forth in	3830
divisions (A)(1) to (7), (9), and (10) of this section, or is	3831
exclusively for one of the purposes set forth in division (A)(1),	3832
(2), (4), (5), (6), (7), (9), or (10) of this section, the	3833
resolution shall not go into effect unless it is approved by a	3834
majority of the electors voting on the question of the tax.	3835

(B) The board of county commissioners shall adopt a	3836
resolution under section 351.02 of the Revised Code creating the	3837
convention facilities authority, or under section 307.283 of the	3838
Revised Code creating the community improvements board, before	3839
adopting a resolution levying a tax for the purpose of a	3840
convention facilities authority under division (A)(1) of this	3841
section or for the purpose of a community improvements board under	3842
division (A)(4) of this section.	3843

(C)(1) If the tax is to be used for more than one of the	3844
purposes set forth in divisions (A)(1) to (7), (9), and (10) of	3845
this section, the board of county commissioners shall establish	3846
the method that will be used to determine the amount or proportion	3847
of the tax revenue received by the county during each year that	3848
will be distributed for each of those purposes, including, if	3849
applicable, provisions governing the reallocation of a convention	3850
facilities authority's allocation if the authority is dissolved	3851
while the tax is in effect. The allocation method may provide that	3852
different proportions or amounts of the tax shall be distributed	3853
among the purposes in different years, but it shall clearly	3854
describe the method that will be used for each year. Except as	3855
otherwise provided in division (C)(2) of this section, the	3856
allocation method established by the board is not subject to	3857
amendment during the life of the tax.	3858

(2) Subsequent to holding a public hearing on the proposed	3859
amendment, the board of county commissioners may amend the	3860
allocation method established under division (C)(1) of this	3861
section for any year, if the amendment is approved by the	3862
governing board of each entity whose allocation for the year would	3863
be reduced by the proposed amendment. In the case of a tax that is	3864
levied for a continuing period of time, the board may not so amend	3865
the allocation method for any year before the sixth year that the	3866
tax is in effect.	3867

(a) If the additional revenues provided to the convention	3868
facilities authority are pledged by the authority for the payment	3869
of convention facilities authority revenue bonds for as long as	3870
such bonds are outstanding, no reduction of the authority's	3871
allocation of the tax shall be made for any year except to the	3872
extent that the reduced authority allocation, when combined with	3873
the authority's other revenues pledged for that purpose, is	3874
sufficient to meet the debt service requirements for that year on	3875
such bonds.	3876

(b) If the additional revenues provided to the county are	3877
pledged by the county for the payment of bonds or notes described	3878
in division (A)(4) or (5) of this section, for as long as such	3879
bonds or notes are outstanding, no reduction of the county's or	3880
the community improvements board's allocation of the tax shall be	3881
made for any year, except to the extent that the reduced county or	3882
community improvements board allocation is sufficient to meet the	3883
debt service requirements for that year on such bonds or notes.	3884

(c) If the additional revenues provided to the transit	3885
authority are pledged by the authority for the payment of revenue	3886
bonds issued under section 306.37 of the Revised Code, for as long	3887
as such bonds are outstanding, no reduction of the authority's	3888
allocation of tax shall be made for any year, except to the extent	3889
that the authority's reduced allocation, when combined with the	3890
authority's other revenues pledged for that purpose, is sufficient	3891
to meet the debt service requirements for that year on such bonds.	3892

(d) If the additional revenues provided to the county are	3893
pledged by the county for the payment of bonds or notes issued	3894
under section 133.60 of the Revised Code, for so long as the bonds	3895
or notes are outstanding, no reduction of the county's allocation	3896
of the tax shall be made for any year, except to the extent that	3897
the reduced county allocation is sufficient to meet the debt	3898
service requirements for that year on the bonds or notes.	3899

(D)(1) The resolution levying the tax or increasing the rate	3900
of tax shall state the rate of the tax or the rate of the	3901
increase; the purpose or purposes for which it is to be levied;	3902
the number of years for which it is to be levied or that it is for	3903
a continuing period of time; the allocation method required by	3904
division (C) of this section; and if required to be submitted to	3905
the electors of the county under division (A) of this section, the	3906
date of the election at which the proposal shall be submitted to	3907
the electors of the county, which shall be not less than ninety	3908
days after the certification of a copy of the resolution to the	3909
board of elections and, if the tax is to be levied exclusively for	3910
the purpose set forth in division (A)(3) of this section, shall	3911
not occur in February or August of any year. Upon certification of	3912
the resolution to the board of elections, the board of county	3913
commissioners shall notify the tax commissioner in writing of the	3914
levy question to be submitted to the electors. If approved by a	3915
majority of the electors, the tax shall become effective on the	3916
first day of a calendar quarter next following the sixty-fifth day	3917
following the date the board of county commissioners and tax	3918
commissioner receive from the board of elections the certification	3919
of the results of the election, except as provided in division (E)	3920
of this section.	3921

(2)(a) A resolution specifying that the tax is to be used	3922
exclusively for the purpose set forth in division (A)(3) of this	3923
section that is not adopted as an emergency measure may direct the	3924
board of elections to submit the question of levying the tax or	3925
increasing the rate of the tax to the electors of the county at a	3926
special election held on the date specified by the board of county	3927
commissioners in the resolution, provided that the election occurs	3928
not less than ninety days after the resolution is certified to the	3929
board of elections and the election is not held in February or	3930
August of any year. Upon certification of the resolution to the	3931
board of elections, the board of county commissioners shall notify	3932
the tax commissioner in writing of the levy question to be	3933
submitted to the electors. No resolution adopted under division	3934
(D)(2)(a) of this section shall go into effect unless approved by	3935
a majority of those voting upon it and, except as provided in	3936
division (E) of this section, not until the first day of a	3937
calendar quarter following the expiration of sixty-five days from	3938
the date the tax commissioner receives notice from the board of	3939
elections of the affirmative vote.	3940

(b) A resolution specifying that the tax is to be used	3941
exclusively for the purpose set forth in division (A)(3) of this	3942
section that is adopted as an emergency measure shall become	3943
effective as provided in division (A) of this section, but may	3944
direct the board of elections to submit the question of repealing	3945
the tax or increase in the rate of the tax to the electors of the	3946
county at the next general election in the county occurring not	3947
less than ninety days after the resolution is certified to the	3948
board of elections. Upon certification of the resolution to the	3949
board of elections, the board of county commissioners shall notify	3950
the tax commissioner in writing of the levy question to be	3951
submitted to the electors. The ballot question shall be the same	3952
as that prescribed in section 5739.022 of the Revised Code. The	3953
board of elections shall notify the board of county commissioners	3954
and the tax commissioner of the result of the election immediately	3955
after the result has been declared. If a majority of the qualified	3956
electors voting on the question of repealing the tax or increase	3957
in the rate of the tax vote for repeal of the tax or repeal of the	3958
increase, the board of county commissioners, on the first day of a	3959
calendar quarter following the expiration of sixty-five days after	3960
the date the board and tax commissioner received notice of the	3961
result of the election, shall, in the case of a repeal of the tax,	3962
cease to levy the tax, or, in the case of a repeal of an increase	3963
in the rate of the tax, cease to levy the increased rate and levy	3964
the tax at the rate at which it was imposed immediately prior to	3965
the increase in rate.	3966

(c) A board of county commissioners, by resolution, may	3967
reduce the rate of a tax levied exclusively for the purpose set	3968
forth in division (A)(3) of this section to a lower rate	3969
authorized by this section. Any such reduction shall be made	3970
effective on the first day of the calendar quarter next following	3971
the sixty-fifth day after the tax commissioner receives a	3972
certified copy of the resolution from the board.	3973

(E) If a vendor ~~that is registered with the central~~	3974
~~electronic registration system provided for in section 5740.05 of~~	3975
~~the Revised Code~~ makes a sale in this state by printed catalog and	3976
the consumer computed the tax on the sale based on local rates	3977
published in the catalog, any tax levied or repealed or rate	3978
changed under this section shall not apply to such a sale until	3979
the first day of a calendar quarter following the expiration of	3980
one hundred twenty days from the date of notice by the tax	3981
commissioner pursuant to division (G) of this section.	3982

(F) The tax levied pursuant to this section shall be in	3983
addition to the tax levied by section 5739.02 of the Revised Code	3984
and any tax levied pursuant to section 5739.021 or 5739.023 of the	3985
Revised Code.	3986

A county that levies a tax pursuant to this section shall	3987
levy a tax at the same rate pursuant to section 5741.023 of the	3988
Revised Code.	3989

The additional tax levied by the county shall be collected	3990
pursuant to section 5739.025 of the Revised Code.	3991

Any tax levied pursuant to this section is subject to the	3992
exemptions provided in section 5739.02 of the Revised Code and in	3993
addition shall not be applicable to sales not within the taxing	3994
power of a county under the Constitution of the United States or	3995
the Ohio Constitution.	3996

(G) Upon receipt from a board of county commissioners of a	3997
certified copy of a resolution required by division (A) of this	3998
section, or from the board of elections a notice of the results of	3999
an election required by division (D)(1), (2)(a), (b), or (c) of	4000
this section, the tax commissioner shall provide notice of a tax	4001
rate change in a manner that is reasonably accessible to all	4002
affected vendors. The commissioner shall provide this notice at	4003
least sixty days prior to the effective date of the rate change.	4004
The commissioner, by rule, may establish the method by which	4005
notice will be provided.	4006

Sec. 5739.04. If modification of a county's jurisdictional	4007
boundaries or a transit authority's territory results in a change	4008
in the tax rate levied under section 5739.021, 5739.023, or	4009
5739.026 of the Revised Code, the tax commissioner, within thirty	4010
days of such change, shall notify any vendor ~~that is registered~~	4011
~~with the central electronic registration system provided for in~~	4012
~~section 5740.05 of the Revised Code~~ or the vendor's certified	4013
service provider, if the vendor has selected one, of such change.	4014
The rate change shall not apply to sales made by such vendor until	4015
the first day of a calendar quarter following the expiration of	4016
sixty days from the date of notice by the ~~tax~~ commissioner.	4017

Sec. 5739.17. (A) No person shall engage in making retail	4018
sales subject to a tax imposed by or pursuant to section 5739.02,	4019
5739.021, 5739.023, or 5739.026 of the Revised Code as a business	4020
without having a license therefor, except as otherwise provided in	4021
divisions (A)(1), (2), and (3) of this section.	4022

(1) In the dissolution of a partnership by death, the	4023
surviving partner may operate under the license of the partnership	4024
for a period of sixty days.	4025

(2) The heirs or legal representatives of deceased persons,	4026
and receivers and trustees in bankruptcy, appointed by any	4027
competent authority, may operate under the license of the person	4028
so succeeded in possession.	4029

(3) Two or more persons who are not partners may operate a	4030
single place of business under one license. In such case neither	4031
the retirement of any such person from business at that place of	4032
business, nor the entrance of any person, under an existing	4033
arrangement, shall affect the license or require the issuance of a	4034
new license, unless the person retiring from the business is the	4035
individual named on the vendor's license.	4036

Except as otherwise provided in this section, each applicant	4037
for a license shall make out and deliver to the county auditor of	4038
each county in which the applicant desires to engage in business,	4039
upon a blank to be furnished by such auditor for that purpose, a	4040
statement showing the name of the applicant, each place of	4041
business in the county where the applicant will make retail sales,	4042
the nature of the business, and any other information the tax	4043
commissioner reasonably prescribes in the form of a statement	4044
prescribed by the commissioner.	4045

At the time of making the application, the applicant shall	4046
pay into the county treasury a license fee in the sum of	4047
twenty-five dollars for each fixed place of business in the county	4048
that will be the situs of retail sales. Upon receipt of the	4049
application and exhibition of the county treasurer's receipt,	4050
showing the payment of the license fee, the county auditor shall	4051
issue to the applicant a license for each fixed place of business	4052
designated in the application, authorizing the applicant to engage	4053
in business at that location. If	4054

(B) If a vendor's identity changes, the vendor shall apply	4055
for a new license. If a vendor wishes to move an existing fixed	4056
place of business to a new location within the same county, the	4057
vendor shall obtain a new vendor's license or submit a request to	4058
the ~~tax~~ commissioner to transfer the existing vendor's license to	4059
the new location. When the new location has been verified as being	4060
within the same county, the commissioner shall authorize the	4061
transfer and notify the county auditor of the change of location.	4062
If a vendor wishes to move an existing fixed place of business to	4063
another county, the vendor's license shall not transfer and the	4064
vendor shall obtain a new vendor's license from the county in	4065
which the business is to be located. The form of the license shall	4066
be prescribed by the commissioner. The fees collected shall be	4067
credited to the general fund of the county. If a vendor fails to	4068
notify the commissioner of a change of location of its fixed place	4069
of business or that its business has closed, the commissioner may	4070
cancel the vendor's license if ordinary mail sent to the location	4071
shown on the license is returned because of an undeliverable	4072
address.	4073

(C) The ~~tax~~ commissioner may establish or participate in a	4074
registration system whereby any vendor may obtain a vendor's	4075
license by submitting to the commissioner a vendor's license	4076
application and a license fee of twenty-five dollars for each	4077
fixed place of business at which the vendor intends to make retail	4078
sales. Under this registration system, the commissioner shall	4079
issue a vendor's license to the applicant on behalf of the county	4080
auditor of the county in which the applicant desires to engage in	4081
business, and shall forward a copy of the application and license	4082
fee to that county. All such license fees received by the	4083
commissioner for the issuance of vendor's licenses shall be	4084
deposited into the vendor's license application fund, which is	4085
hereby created in the state treasury. The commissioner shall	4086
certify to the director of budget and management within ten	4087
business days after the close of a month the license fees to be	4088
transmitted to each county from the vendor's license application	4089
fund for vendor's license applications received by the	4090
commissioner during that month. License fees transmitted to a	4091
county for which payment was not received by the commissioner may	4092
be netted against a future distribution to that county, including	4093
distributions made pursuant to section 5739.21 of the Revised	4094
Code.	4095

A vendor that makes retail sales subject to tax under Chapter	4096
5739. of the Revised Code pursuant to a permit issued by the	4097
division of liquor control shall obtain a vendor's license in the	4098
identical name and for the identical address as shown on the	4099
permit.	4100

Except as otherwise provided in this section, if a vendor has	4101
no fixed place of business and sells from a vehicle, each vehicle	4102
intended to be used within a county constitutes a place of	4103
business for the purpose of this section.	4104

~~(B)~~(D) As used in this ~~division~~section, "transient vendor"	4105
means any person who makes sales of tangible personal property	4106
from vending machines located on land owned by others, who leases	4107
titled motor vehicles, titled watercraft, or titled outboard	4108
motors, who effectuates leases that are taxed according to	4109
division (A)(2) of section 5739.02 of the Revised Code, or who, in	4110
the usual course of the person's business, transports inventory,	4111
stock of goods, or similar tangible personal property to a	4112
temporary place of business or temporary exhibition, show, fair,	4113
flea market, or similar event in a county in which the person has	4114
no fixed place of business, for the purpose of making retail sales	4115
of such property. A "temporary place of business" means any public	4116
or quasi-public place including, but not limited to, a hotel,	4117
rooming house, storeroom, building, part of a building, tent,	4118
vacant lot, railroad car, or motor vehicle that is temporarily	4119
occupied for the purpose of making retail sales of goods to the	4120
public. A place of business is not temporary if the same person	4121
conducted business at the place continuously for more than six	4122
months or occupied the premises as the person's permanent	4123
residence for more than six months, or if the person intends it to	4124
be a fixed place of business.	4125

Any transient vendor, in lieu of obtaining a vendor's license	4126
under division (A) of this section for counties in which the	4127
transient vendor has no fixed place of business, may apply to the	4128
tax commissioner, on a form prescribed by the commissioner, for a	4129
transient vendor's license. The transient vendor's license	4130
authorizes the transient vendor to make retail sales in any county	4131
in which the transient vendor does not maintain a fixed place of	4132
business. Any holder of a transient vendor's license shall not be	4133
required to obtain a separate vendor's license from the county	4134
auditor in that county. Upon the commissioner's determination that	4135
an applicant is a transient vendor, the applicant shall pay a	4136
license fee in the amount of twenty-five dollars, at which time	4137
the tax commissioner shall issue the license. The tax commissioner	4138
may require a vendor to be licensed as a transient vendor if, in	4139
the opinion of the commissioner, such licensing is necessary for	4140
the efficient administration of the tax.	4141

Any holder of a valid transient vendor's license may make	4142
retail sales at a temporary place of business or temporary	4143
exhibition, show, fair, flea market, or similar event, held	4144
anywhere in the state without complying with any provision of	4145
section 311.37 of the Revised Code. Any holder of a valid vendor's	4146
license may make retail sales as a transient vendor at a temporary	4147
place of business or temporary exhibition, show, fair, flea	4148
market, or similar event held in any county in which the vendor	4149
maintains a fixed place of business for which the vendor holds a	4150
vendor's license without obtaining a transient vendor's license.	4151

~~(C) As used in this division, "service vendor" means any~~	4152
~~person who, in the usual course of the person's business, sells~~	4153
~~services described in division (B)(3)(e), (f), (g), (h), (i), (j),~~	4154
~~(k), (l), (m), (p), or (t) of section 5739.01 of the Revised Code.~~	4155

~~Every service vendor shall make application to the tax~~	4156
~~commissioner for a service vendor's license. Each applicant shall~~	4157
~~pay a license fee in the amount of twenty-five dollars. Upon the~~	4158
~~commissioner's determination that an applicant is a service vendor~~	4159
~~and payment of the fee, the commissioner shall issue the applicant~~	4160
~~a service vendor's license.~~	4161

~~Only sales described in division (B)(3)(e), (f), (g), (h),~~	4162
~~(i), (j), (k), (l), (m), (p), or (t) of section 5739.01 of the~~	4163
~~Revised Code may be made under authority of a service vendor's~~	4164
~~license, and that license authorizes sales to be made at any place~~	4165
~~in this state. Any service vendor who makes sales of other~~	4166
~~services or tangible personal property subject to the sales tax~~	4167
~~also shall be licensed under division (A), (B), or (D) of this~~	4168
~~section.~~	4169

~~(D) As used in this division, "delivery vendor" means any~~	4170
~~vendor who engages in one or more of the activities described in~~	4171
~~divisions (D)(1) to (4) of this section, and who maintains no~~	4172
~~store, showroom, or similar fixed place of business or other~~	4173
~~location where merchandise regularly is offered for sale or~~	4174
~~displayed or shown in catalogs for selection or pick-up by~~	4175
~~consumers, or where consumers bring goods for repair or other~~	4176
~~service.~~	4177

~~(1) The vendor makes retail sales of tangible personal~~	4178
~~property;~~	4179

~~(2) The vendor rents or leases, at retail, tangible personal~~	4180
~~property, except titled motor vehicles, titled watercraft, or~~	4181
~~titled outboard motors;~~	4182

~~(3) The vendor provides a service, at retail, described in~~	4183
~~division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the~~	4184
~~Revised Code; or~~	4185

~~(4) The vendor makes retail sales of warranty, maintenance or~~	4186
~~service contracts, or similar agreements as described in division~~	4187
~~(B)(7) of section 5739.01 of the Revised Code.~~	4188

~~A transient vendor or a seller registered pursuant to section~~	4189
~~5741.17 of the Revised Code is not a delivery vendor.~~	4190

~~Delivery vendors shall apply to the tax commissioner, on a~~	4191
~~form prescribed by the commissioner, for a delivery vendor's~~	4192
~~license. Each applicant shall pay a license fee of twenty-five~~	4193
~~dollars for each delivery vendor's license, to be credited to the~~	4194
~~general revenue fund. Upon the commissioner's determination that~~	4195
~~the applicant is a delivery vendor, the commissioner shall issue~~	4196
~~the license. A delivery vendor's license authorizes retail sales~~	4197
~~to be made throughout the state. All sales of the vendor must be~~	4198
~~reported under the delivery license. The commissioner may require~~	4199
~~a vendor to be licensed as a delivery vendor if, in the opinion of~~	4200
~~the commissioner, such licensing is necessary for the efficient~~	4201
~~administration of the tax. The commissioner shall not issue a~~	4202
~~delivery vendor license to a vendor who holds a license issued~~	4203
~~under division (A) of this section.~~	4204

(E) Any ~~transient~~ vendor who is issued a license pursuant to	4205
this section shall display the license or a copy of it	4206
prominently, in plain view, at every place of business of the	4207
~~transient~~ vendor. ~~Every~~	4208

(F) No owner, organizer, or promoter who operates a fair,	4209
flea market, show, exhibition, convention, or similar event at	4210
which transient vendors are present shall fail to keep a	4211
comprehensive record of all such vendors, listing the vendor's	4212
name, permanent address, vendor's license number, and the type of	4213
goods sold. Such records shall be kept for four years and shall be	4214
open to inspection by the ~~tax~~ commissioner.	4215

(G) The commissioner may issue additional types of licenses	4216
if required to efficiently administer the tax imposed by this	4217
chapter.	4218

Sec. 5741.08. If modification of a county's jurisdictional	4219
boundaries or a transit authority's territory results in a change	4220
in the tax rate levied under section 5741.021, 5741.022, or	4221
5741.023 of the Revised Code, the tax commissioner, within thirty	4222
days of such change, shall notify any seller ~~that is registered~~	4223
~~with the central electronic registration system provided for in~~	4224
~~section 5740.05 of the Revised Code~~ or the seller's certified	4225
service provider, if the seller has selected one, of such change.	4226
The rate change shall not apply until the first day of a calendar	4227
quarter following the expiration of sixty days from the date of	4228
notice by the ~~tax~~ commissioner.	4229

Sec. 5743.20. No person shall sell any cigarettes both as a	4230
retail dealer and as a wholesale dealer at the same place of	4231
business. No person other than a licensed wholesale dealer shall	4232
sell cigarettes to a licensed retail dealer. No retail dealer	4233
shall purchase cigarettes from any person other than a licensed	4234
wholesale dealer.	4235

Subject to section 5743.031 of the Revised Code, a licensed	4236
wholesale dealer may not sell cigarettes to any person in this	4237
state other than a licensed retail dealer, except a licensed	4238
wholesale dealer may sell cigarettes to another licensed wholesale	4239
dealer if the tax commissioner has authorized the sale of the	4240
cigarettes between those wholesale dealers and the wholesale	4241
dealer that sells the cigarettes received them directly from a	4242
licensed manufacturer or licensed importer.	4243

The tax commissioner shall adopt rules governing sales of	4244
cigarettes between licensed wholesale dealers, including rules	4245
establishing criteria for authorizing such sales.	4246

No manufacturer or importer shall sell cigarettes to any	4247
person in this state other than to a licensed wholesale dealer or	4248
licensed importer. No importer shall purchase cigarettes from any	4249
person other than a licensed manufacturer or licensed importer.	4250

A retail dealer may purchase other tobacco products only from	4251
a licensed distributor. A licensed distributor may sell tobacco	4252
products only to a retail dealer, except a licensed distributor	4253
may sell tobacco products to another licensed distributor if the	4254
tax commissioner has authorized the sale of the tobacco products	4255
between those distributors and the distributor that sells the	4256
tobacco products received them directly from a manufacturer or	4257
importer of tobacco products.	4258

The tax commissioner may adopt rules governing sales of	4259
tobacco products between licensed distributors, including rules	4260
establishing criteria for authorizing such sales.	4261

The identities of cigarette manufacturers and importers,	4262
licensed cigarette wholesalers, licensed distributors of other	4263
tobacco products, and registered manufacturers,and importers~~, and~~	4264
~~brokers~~ of other tobacco products are subject to public	4265
disclosure. The tax commissioner shall maintain an alphabetical	4266
list of all such manufacturers, importers, wholesalers, and	4267
distributors, ~~and brokers,~~ shall post the list on a web site	4268
accessible to the public through the internet, and shall	4269
periodically update the web site posting.	4270

As used in this section, "licensed" means the manufacturer,	4271
importer, wholesale dealer, or distributor holds a current and	4272
valid license issued under section 5743.15 or 5743.61 of the	4273
Revised Code, and "registered" means registered with the ~~tax~~	4274
commissioner under section 5743.66 of the Revised Code.	4275

Sec. 5743.61. (A) Except as otherwise provided in this	4276
division, no distributor shall engage in the business of	4277
distributing tobacco products within this state without having a	4278
license issued by the department of taxation to engage in that	4279
business. On the dissolution of a partnership by death, the	4280
surviving partner may operate under the license of the partnership	4281
until the expiration of the license, and the heirs or legal	4282
representatives of deceased persons, and receivers and trustees in	4283
bankruptcy appointed by any competent authority, may operate under	4284
the license of the person succeeded in possession by the heir,	4285
representative, receiver, or trustee in bankruptcy if the partner	4286
or successor notifies the department of taxation of the	4287
dissolution or succession within thirty days after the dissolution	4288
or succession.	4289

(B)(1) Each applicant for a license to engage in the business	4290
of distributing tobacco products, annually, on or before the first	4291
day of February, shall make and deliver to the tax commissioner,	4292
upon a form furnished by the commissioner for that purpose, a	4293
statement showing the name of the applicant, each physical place	4294
from which the applicant distributes to distributors, retail	4295
dealers, or wholesale dealers, and any other information the	4296
commissioner considers necessary for the administration of	4297
sections 5743.51 to 5743.66 of the Revised Code.	4298

(2) At the time of making the license application, the	4299
applicant shall pay an application fee of one thousand dollars for	4300
each place listed on the application where the applicant proposes	4301
to carry on that business. The fee charged for the application	4302
shall accompany the application and shall be made payable to the	4303
treasurer of state for deposit into the cigarette tax enforcement	4304
fund.	4305

(3) Upon receipt of the application and payment of any	4306
licensing fee required by this section, the commissioner shall	4307
issue to the applicant a license for each place of distribution	4308
designated in the application authorizing the applicant to engage	4309
in business at that location for one year commencing on the first	4310
day of February. For licenses issued after the first day of	4311
February, the license application fee shall be reduced	4312
proportionately by the remainder of the twelve-month period for	4313
which the license is issued, except that the application fee	4314
required to be paid under this section shall be not less than two	4315
hundred dollars. If the original license is lost, destroyed, or	4316
defaced, a duplicate license may be obtained from the commissioner	4317
upon payment of a license replacement fee of twenty-five dollars.	4318

(C) The holder of a tobacco products license may transfer the	4319
license to a place of business on condition that the licensee's	4320
ownership and business structure remains unchanged and the	4321
licensee applies to the commissioner for the transfer on a form	4322
issued by the commissioner, and pays a transfer fee of twenty-five	4323
dollars.	4324

(D) If a distributor fails to file forms as required under	4325
Chapter 1346. or section 5743.52 of the Revised Code or pay the	4326
tax due for two consecutive periods or three periods during any	4327
twelve-month period, the commissioner may suspend the license	4328
issued to the distributor under this section. The suspension is	4329
effective ten days after the commissioner notifies the distributor	4330
of the suspension in writing personally or by certified mail. The	4331
commissioner shall lift the suspension when the distributor files	4332
the delinquent forms and pays the tax due, including any	4333
penalties, interest, and additional charges. The commissioner may	4334
refuse to issue the annual renewal of the license required by this	4335
section and may refuse to issue a new license for the same	4336
location until all delinquent forms are filed and outstanding	4337
taxes are paid. This division does not apply to any unpaid or	4338
underpaid tax liability that is the subject of a petition or	4339
appeal filed pursuant to section 5743.56, 5717.02, or 5717.04 of	4340
the Revised Code.	4341

(E)(1) The tax commissioner may impose a penalty of up to one	4342
thousand dollars on any person found to be engaging in the	4343
business of distributing tobacco products without a license as	4344
required by this section.	4345

(2) Any person engaging in the business of distributing	4346
tobacco products without a license as required by this section	4347
shall comply with divisions (B)(1) and (2) of this section within	4348
ten days after being notified of the requirement to do so. Failure	4349
to comply with division (E)(2) of this section subjects a person	4350
to penalties imposed under section 5743.99 of the Revised Code.	4351

Sec. 5743.66. (A) Each manufacturer,or importer~~, or broker~~	4352
of tobacco products shall register with the tax commissioner	4353
before it sells or distributes tobacco products to distributors in	4354
this state, and, upon the request of the ~~tax~~ commissioner, shall	4355
provide complete information on sales made to distributors in this	4356
state and a current list of prices charged for tobacco products	4357
sold to distributors in this state.	4358

(B) On or before the last day of each month, every	4359
manufacturer,or importer~~, or broker~~ of tobacco products shall	4360
file a report with the commissioner listing all sales of tobacco	4361
products to distributors located in this state during the	4362
preceding month and any other information the commissioner finds	4363
necessary for the proper administration of sections 5743.51 to	4364
5743.66 of the Revised Code.	4365

Sec. 5747.082. (A) As used in this section:

4366

(1) "Electronic technology" means electronic technology	4367
acceptable to the tax commissioner under division (B) of this	4368
section.	4369

(2) "Original tax return" means any report, return, or other	4370
tax document required to be filed under this chapter for the	4371
purpose of reporting the taxes due under, and withholdings	4372
required by, this chapter. "Original tax return" does not include	4373
an amended return or any declaration or form required by or filed	4374
in connection with section 5747.09 of the Revised Code.	4375

(3) "Related member" has the same meaning as in section	4376
5733.042 of the Revised Code.	4377

(4) "Tax return preparer" means any person that operates a	4378
business that prepares, or directly or indirectly employs another	4379
person to prepare, for a taxpayer an original tax return in	4380
exchange for compensation or remuneration from the taxpayer or the	4381
taxpayer's related member. With respect to the preparation of a	4382
return or application for refund under this chapter, "tax return	4383
preparer" does not include an individual who performs only one or	4384
more of the following activities:	4385

(a) Furnishes typing, reproducing, or other mechanical	4386
assistance;	4387

(b) Prepares an application for refund or a return on behalf	4388
of an employer by whom the individual is regularly and	4389
continuously employed, or on behalf of an officer or employee of	4390
that employer;	4391

(c) Prepares as a fiduciary an application for refund or a	4392
return;	4393

(d) Prepares an application for refund or a return for a	4394
taxpayer in response to a notice of deficiency issued to the	4395
taxpayer or the taxpayer's related member, or in response to a	4396
waiver of restriction after the commencement of an audit of the	4397
taxpayer or the taxpayer's related member.	4398

(B) Divisions (C) and (D) of this section apply to the filing	4399
of original tax returns that are due in a calendar year only if	4400
the tax commissioner, by the last day of the calendar year	4401
immediately preceding the calendar year in which such returns are	4402
due, has published on the department of taxation's official	4403
internet web site at least one method of electronic technology	4404
acceptable to the commissioner for filing such returns.	4405

(C) A tax return preparer that prepares more than	4406
seventy-five original tax returns during any calendar year that	4407
~~begins on or after January 1, 2008~~ends before January 1, 2013, or	4408
that prepares more than eleven original tax returns during any	4409
calendar year that begins on or after January 1, 2013, shall,	4410
~~beginning January 1, 2010,~~ use electronic technology to file with	4411
the tax commissioner all original tax returns prepared by the tax	4412
return preparer. This division does not apply to a tax return	4413
preparer ~~for a~~in any calendar year that ends before January 1,	4414
2013, if, during the previous calendar year, the tax return	4415
preparer prepared no more than twenty-five original tax returns.	4416
This division does not apply to a tax return preparer in any	4417
calendar year that begins on or after January 1, 2013, if, during	4418
the previous calendar year, the tax return preparer prepared not	4419
more than ten original tax returns.	4420

(D) If a tax return preparer required by this section to	4421
submit original tax returns by electronic technology files an	4422
original tax return by some means other than by electronic	4423
technology, the tax commissioner shall impose a penalty of fifty	4424
dollars for each return, in excess of seventy-five in a calendar	4425
year 2010, 2011, or 2012, or in excess of eleven in any calendar	4426
year thereafter, that is not filed by electronic technology. Upon	4427
good cause shown by the tax return preparer, the tax commissioner	4428
may waive all or any portion of the penalty or may refund all or	4429
any portion of the penalty the tax return preparer has paid.	4430

Sec. 5747.11. (A) The tax commissioner shall refund to	4431
employers, qualifying entities, or taxpayers, with respect to any	4432
tax imposed under section 5733.41, 5747.02, or 5747.41, or Chapter	4433
5748. of the Revised Code:	4434

(1) Overpayments of more than one dollar;

4435

(2) Amounts in excess of one dollar paid illegally or	4436
erroneously;	4437

(3) Amounts in excess of one dollar paid on an illegal,	4438
erroneous, or excessive assessment.	4439

(B) Except as otherwise provided under divisions ~~(D)~~(E) and	4440
~~(E)~~(F) of this section, applications for refund shall be filed	4441
with the tax commissioner, on the form prescribed by the	4442
commissioner, within four years from the date of the illegal,	4443
erroneous, or excessive payment of the tax, or within any	4444
additional period allowed by division (B)(3)(b) of section	4445
5747.05, division (B) of section 5747.10, division (A) of section	4446
5747.13, or division (C) of section 5747.45 of the Revised Code.	4447

On filing of the refund application, the commissioner shall	4448
determine the amount of refund due and certify such amount to the	4449
director of budget and management and treasurer of state for	4450
payment from the tax refund fund created by section 5703.052 of	4451
the Revised Code. Payment shall be made as provided in division	4452
(C) of section 126.35 of the Revised Code.	4453

(C) If a taxpayer claims a refundable credit against the tax	4454
imposed under section 5747.02 of the Revised Code, any payment	4455
that is refunded to the taxpayer as a result of the allowance of	4456
the credit shall not be considered an illegal, erroneous, or	4457
excessive payment for purposes of division (B) of this section. No	4458
interest shall be allowed on an amount refunded to a taxpayer to	4459
the extent that the refund results from the allowance of a	4460
refundable credit.	4461

(D)(1) Interest shall be allowed and paid upon any illegal or	4462
erroneous assessment in excess of one dollar in respect of the tax	4463
imposed under section 5747.02 or Chapter 5748. of the Revised Code	4464
at the rate per annum prescribed by section 5703.47 of the Revised	4465
Code ~~from the date of the payment of the illegal or erroneous~~	4466
~~assessment until the date the refund of such amount is paid. If~~	4467
~~such refund results from the filing of a return or report, or the~~	4468
~~payment accompanying such return or report, by an employer or~~	4469
~~taxpayer, rather than from an assessment by the commissioner, such~~	4470
~~interest shall run from a period ninety days after the final~~	4471
~~filing date of the annual return until the date the refund is~~	4472
~~paid~~.	4473

(2) Interest shall be allowed and paid at the rate per annum	4474
prescribed by section 5703.47 of the Revised Code upon any	4475
overpayment in excess of one dollar in respect of the tax imposed	4476
under section 5747.02 or Chapter 5748. of the Revised Code from	4477
the date of the overpayment until the date of the refund of the	4478
overpayment, except that if any overpayment is refunded within	4479
ninety days after the final filing date of the annual return or	4480
ninety days after the return is filed, whichever is later, no	4481
interest shall be allowed on such overpayment. If the overpayment	4482
results from the carryback of a net operating loss or net capital	4483
loss to a previous taxable year, the overpayment is deemed not to	4484
have been made prior to the filing date, including any extension	4485
thereof, for the taxable year in which the net operating loss or	4486
net capital loss arises. For purposes of the payment of interest	4487
on overpayments, no amount of tax, for any taxable year, shall be	4488
treated as having been paid before the date on which the tax	4489
return for that year was due without regard to any extension of	4490
time for filing such return.	4491

(3) Interest shall be allowed at the rate per annum	4492
prescribed by section 5703.47 of the Revised Code on amounts	4493
refunded with respect to the taxes imposed under sections 5733.41	4494
and 5747.41 of the Revised Code. The interest shall run from	4495
whichever of the following days is the latest until the day the	4496
refund is paid: the day the illegal, erroneous, or excessive	4497
payment was made; the ninetieth day after the final day the annual	4498
report was required to be filed under section 5747.42 of the	4499
Revised Code; or the ninetieth day after the day that report was	4500
filed.	4501

~~(D)~~(4) If an amount refunded with respect to any tax imposed	4502
under section 5733.41, 5747.02, or 5747.41 or Chapter 5748. of the	4503
Revised Code results from the filing of an amended return or	4504
report, or the payment accompanying an amended return or report,	4505
by an employer or taxpayer, interest on the amount refunded shall	4506
run from the date the amended return or report was filed, as	4507
determined under division (H) of section 5747.08 of the Revised	4508
Code, until the date the refund is paid.	4509

(E) "Ninety days" shall be substituted for "four years" in	4510
division (B) of this section if the taxpayer satisfies both of the	4511
following conditions:	4512

(1) The taxpayer has applied for a refund based in whole or	4513
in part upon section 5747.059 of the Revised Code;	4514

(2) The taxpayer asserts that either the imposition or	4515
collection of the tax imposed or charged by this chapter or any	4516
portion of such tax violates the Constitution of the United States	4517
or the Constitution of Ohio.	4518

~~(E)~~(F)(1) Division ~~(E)~~(F)(2) of this section applies only if	4519
all of the following conditions are satisfied:	4520

(a) A qualifying entity pays an amount of the tax imposed by	4521
section 5733.41 or 5747.41 of the Revised Code;	4522

(b) The taxpayer is a qualifying investor as to that	4523
qualifying entity;	4524

(c) The taxpayer did not claim the credit provided for in	4525
section 5747.059 of the Revised Code as to the tax described in	4526
division ~~(E)~~(F)(1)(a) of this section;	4527

(d) The four-year period described in division (B) of this	4528
section has ended as to the taxable year for which the taxpayer	4529
otherwise would have claimed that credit.	4530

(2) A taxpayer shall file an application for refund pursuant	4531
to division ~~(E)~~(F) of this section within one year after the date	4532
the payment described in division ~~(E)~~(F)(1)(a) of this section is	4533
made. An application filed under division ~~(E)~~(F)(2) of this	4534
section shall claim refund only of overpayments resulting from the	4535
taxpayer's failure to claim the credit described in division	4536
~~(E)~~(F)(1)(c) of this section. Nothing in division ~~(E)~~(F) of this	4537
section shall be construed to relieve a taxpayer from complying	4538
with division (A)(16) of section 5747.01 of the Revised Code.	4539

Sec. 5751.01. As used in this chapter:

4540

(A) "Person" means, but is not limited to, individuals,	4541
combinations of individuals of any form, receivers, assignees,	4542
trustees in bankruptcy, firms, companies, joint-stock companies,	4543
business trusts, estates, partnerships, limited liability	4544
partnerships, limited liability companies, associations, joint	4545
ventures, clubs, societies, for-profit corporations, S	4546
corporations, qualified subchapter S subsidiaries, qualified	4547
subchapter S trusts, trusts, entities that are disregarded for	4548
federal income tax purposes, and any other entities.	4549

(B) "Consolidated elected taxpayer" means a group of two or	4550
more persons treated as a single taxpayer for purposes of this	4551
chapter as the result of an election made under section 5751.011	4552
of the Revised Code.	4553

(C) "Combined taxpayer" means a group of two or more persons	4554
treated as a single taxpayer for purposes of this chapter under	4555
section 5751.012 of the Revised Code.	4556

(D) "Taxpayer" means any person, or any group of persons in	4557
the case of a consolidated elected taxpayer or combined taxpayer	4558
treated as one taxpayer, required to register or pay tax under	4559
this chapter. "Taxpayer" does not include excluded persons.	4560

(E) "Excluded person" means any of the following:

4561

(1) Any person with not more than one hundred fifty thousand	4562
dollars of taxable gross receipts during the calendar year.	4563
Division (E)(1) of this section does not apply to a person that is	4564
a member of a consolidated elected taxpayer;	4565

(2) A public utility that paid the excise tax imposed by	4566
section 5727.24 or 5727.30 of the Revised Code based on one or	4567
more measurement periods that include the entire tax period under	4568
this chapter, except that a public utility that is a combined	4569
company is a taxpayer with regard to the following gross receipts:	4570

(a) Taxable gross receipts directly attributed to a public	4571
utility activity, but not directly attributed to an activity that	4572
is subject to the excise tax imposed by section 5727.24 or 5727.30	4573
of the Revised Code;	4574

(b) Taxable gross receipts that cannot be directly attributed	4575
to any activity, multiplied by a fraction whose numerator is the	4576
taxable gross receipts described in division (E)(2)(a) of this	4577
section and whose denominator is the total taxable gross receipts	4578
that can be directly attributed to any activity;	4579

(c) Except for any differences resulting from the use of an	4580
accrual basis method of accounting for purposes of determining	4581
gross receipts under this chapter and the use of the cash basis	4582
method of accounting for purposes of determining gross receipts	4583
under section 5727.24 of the Revised Code, the gross receipts	4584
directly attributed to the activity of a natural gas company shall	4585
be determined in a manner consistent with division (D) of section	4586
5727.03 of the Revised Code.	4587

As used in division (E)(2) of this section, "combined	4588
company" and "public utility" have the same meanings as in section	4589
5727.01 of the Revised Code.	4590

(3) A financial institution, as defined in section 5725.01 of	4591
the Revised Code, that paid the corporation franchise tax charged	4592
by division (D) of section 5733.06 of the Revised Code based on	4593
one or more taxable years that include the entire tax period under	4594
this chapter;	4595

(4) A dealer in intangibles, as defined in section 5725.01 of	4596
the Revised Code, that paid the dealer in intangibles tax levied	4597
by division (D) of section 5707.03 of the Revised Code based on	4598
one or more measurement periods that include the entire tax period	4599
under this chapter;	4600

(5) A financial holding company as defined in the "Bank	4601
Holding Company Act," 12 U.S.C. 1841(p);	4602

(6) A bank holding company as defined in the "Bank Holding	4603
Company Act," 12 U.S.C. 1841(a);	4604

(7) A savings and loan holding company as defined in the	4605
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	4606
only in activities or investments permissible for a financial	4607
holding company under 12 U.S.C. 1843(k);	4608

(8) A person directly or indirectly owned by one or more	4609
financial institutions, financial holding companies, bank holding	4610
companies, or savings and loan holding companies described in	4611
division (E)(3), (5), (6), or (7) of this section that is engaged	4612
in activities permissible for a financial holding company under 12	4613
U.S.C. 1843(k), except that any such person held pursuant to	4614
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12	4615
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person	4616
directly or indirectly owned by one or more insurance companies	4617
described in division (E)(9) of this section that is authorized to	4618
do the business of insurance in this state.	4619

For the purposes of division (E)(8) of this section, a person	4620
owns another person under the following circumstances:	4621

(a) In the case of corporations issuing capital stock, one	4622
corporation owns another corporation if it owns fifty per cent or	4623
more of the other corporation's capital stock with current voting	4624
rights;	4625

(b) In the case of a limited liability company, one person	4626
owns the company if that person's membership interest, as defined	4627
in section 1705.01 of the Revised Code, is fifty per cent or more	4628
of the combined membership interests of all persons owning such	4629
interests in the company;	4630

(c) In the case of a partnership, trust, or other	4631
unincorporated business organization other than a limited	4632
liability company, one person owns the organization if, under the	4633
articles of organization or other instrument governing the affairs	4634
of the organization, that person has a beneficial interest in the	4635
organization's profits, surpluses, losses, or distributions of	4636
fifty per cent or more of the combined beneficial interests of all	4637
persons having such an interest in the organization;	4638

(d) In the case of multiple ownership, the ownership	4639
interests of more than one person may be aggregated to meet the	4640
fifty per cent ownership tests in this division only when each	4641
such owner is described in division (E)(3), (5), (6), or (7) of	4642
this section and is engaged in activities permissible for a	4643
financial holding company under 12 U.S.C. 1843(k) or is a person	4644
directly or indirectly owned by one or more insurance companies	4645
described in division (E)(9) of this section that is authorized to	4646
do the business of insurance in this state.	4647

(9) A domestic insurance company or foreign insurance	4648
company, as defined in section 5725.01 of the Revised Code, that	4649
paid the insurance company premiums tax imposed by section 5725.18	4650
or Chapter 5729. of the Revised Code based on one or more	4651
measurement periods that include the entire tax period under this	4652
chapter;	4653

(10) A person that solely facilitates or services one or more	4654
securitizations or similar transactions for any person described	4655
in division (E)(3), (5), (6), (7), (8), or (9) of this section.	4656
For purposes of this division, "securitization" means transferring	4657
one or more assets to one or more persons and then issuing	4658
securities backed by the right to receive payment from the asset	4659
or assets so transferred.	4660

(11) Except as otherwise provided in this division, a	4661
pre-income tax trust as defined in division (FF)(4) of section	4662
5747.01 of the Revised Code and any pass-through entity of which	4663
such pre-income tax trust owns or controls, directly, indirectly,	4664
or constructively through related interests, more than five per	4665
cent of the ownership or equity interests. If the pre-income tax	4666
trust has made a qualifying pre-income tax trust election under	4667
division (FF)(3) of section 5747.01 of the Revised Code, then the	4668
trust and the pass-through entities of which it owns or controls,	4669
directly, indirectly, or constructively through related interests,	4670
more than five per cent of the ownership or equity interests,	4671
shall not be excluded persons for purposes of the tax imposed	4672
under section 5751.02 of the Revised Code.	4673

(12) Nonprofit organizations or the state and its agencies,	4674
instrumentalities, or political subdivisions.	4675

(F) Except as otherwise provided in divisions (F)(2), (3),	4676
and (4) of this section, "gross receipts" means the total amount	4677
realized by a person, without deduction for the cost of goods sold	4678
or other expenses incurred, ~~that contributes to the production of~~	4679
~~gross income of the person,~~ including the fair market value of any	4680
property and any services received, and any debt transferred or	4681
forgiven as consideration.	4682

(1) The following are examples of gross receipts:

4683

(a) Amounts realized from the sale, exchange, or other	4684
disposition of the taxpayer's property to or with another;	4685

(b) Amounts realized from the taxpayer's performance of	4686
services for another;	4687

(c) Amounts realized from another's use or possession of the	4688
taxpayer's property or capital;	4689

(d) Any combination of the foregoing amounts.

4690

(2) "Gross receipts" excludes the following amounts:

4691

(a) Interest income except interest on credit sales;

4692

(b) Dividends and distributions from corporations, and	4693
distributive or proportionate shares of receipts and income from a	4694
pass-through entity as defined under section 5733.04 of the	4695
Revised Code;	4696

(c) Receipts from the sale, exchange, or other disposition of	4697
an asset described in section 1221 or 1231 of the Internal Revenue	4698
Code, without regard to the length of time the person held the	4699
asset. Notwithstanding section 1221 of the Internal Revenue Code,	4700
receipts from hedging transactions also are excluded to the extent	4701
the transactions are entered into primarily to protect a financial	4702
position, such as managing the risk of exposure to (i) foreign	4703
currency fluctuations that affect assets, liabilities, profits,	4704
losses, equity, or investments in foreign operations; (ii)	4705
interest rate fluctuations; or (iii) commodity price fluctuations.	4706
As used in division (F)(2)(c) of this section, "hedging	4707
transaction" has the same meaning as used in section 1221 of the	4708
Internal Revenue Code and also includes transactions accorded	4709
hedge accounting treatment under statement of financial accounting	4710
standards number 133 of the financial accounting standards board.	4711
For the purposes of division (F)(2)(c) of this section, the actual	4712
transfer of title of real or tangible personal property to another	4713
entity is not a hedging transaction.	4714

(d) Proceeds received attributable to the repayment,	4715
maturity, or redemption of the principal of a loan, bond, mutual	4716
fund, certificate of deposit, or marketable instrument;	4717

(e) The principal amount received under a repurchase	4718
agreement or on account of any transaction properly characterized	4719
as a loan to the person;	4720

(f) Contributions received by a trust, plan, or other	4721
arrangement, any of which is described in section 501(a) of the	4722
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	4723
1, Subchapter (D) of the Internal Revenue Code applies;	4724

(g) Compensation, whether current or deferred, and whether in	4725
cash or in kind, received or to be received by an employee, former	4726
employee, or the employee's legal successor for services rendered	4727
to or for an employer, including reimbursements received by or for	4728
an individual for medical or education expenses, health insurance	4729
premiums, or employee expenses, or on account of a dependent care	4730
spending account, legal services plan, any cafeteria plan	4731
described in section 125 of the Internal Revenue Code, or any	4732
similar employee reimbursement;	4733

(h) Proceeds received from the issuance of the taxpayer's own	4734
stock, options, warrants, puts, or calls, or from the sale of the	4735
taxpayer's treasury stock;	4736

(i) Proceeds received on the account of payments from	4737
insurance policies, except those proceeds received for the loss of	4738
business revenue;	4739

(j) Gifts or charitable contributions received; membership	4740
dues received by trade, professional, homeowners', or condominium	4741
associations; and payments received for educational courses,	4742
meetings, meals, or similar payments to a trade, professional, or	4743
other similar association; and fundraising receipts received by	4744
any person when any excess receipts are donated or used	4745
exclusively for charitable purposes;	4746

(k) Damages received as the result of litigation in excess of	4747
amounts that, if received without litigation, would be gross	4748
receipts;	4749

(l) Property, money, and other amounts received or acquired	4750
by an agent on behalf of another in excess of the agent's	4751
commission, fee, or other remuneration;	4752

(m) Tax refunds, other tax benefit recoveries, and	4753
reimbursements for the tax imposed under this chapter made by	4754
entities that are part of the same combined taxpayer or	4755
consolidated elected taxpayer group, and reimbursements made by	4756
entities that are not members of a combined taxpayer or	4757
consolidated elected taxpayer group that are required to be made	4758
for economic parity among multiple owners of an entity whose tax	4759
obligation under this chapter is required to be reported and paid	4760
entirely by one owner, pursuant to the requirements of sections	4761
5751.011 and 5751.012 of the Revised Code;	4762

(n) Pension reversions;

4763

(o) Contributions to capital;

4764

(p) Sales or use taxes collected as a vendor or an	4765
out-of-state seller on behalf of the taxing jurisdiction from a	4766
consumer or other taxes the taxpayer is required by law to collect	4767
directly from a purchaser and remit to a local, state, or federal	4768
tax authority;	4769

(q) In the case of receipts from the sale of cigarettes or	4770
tobacco products by a wholesale dealer, retail dealer,	4771
distributor, manufacturer, or seller, all as defined in section	4772
5743.01 of the Revised Code, an amount equal to the federal and	4773
state excise taxes paid by any person on or for such cigarettes or	4774
tobacco products under subtitle E of the Internal Revenue Code or	4775
Chapter 5743. of the Revised Code;	4776

(r) In the case of receipts from the sale of motor fuel by a	4777
licensed motor fuel dealer, licensed retail dealer, or licensed	4778
permissive motor fuel dealer, all as defined in section 5735.01 of	4779
the Revised Code, an amount equal to federal and state excise	4780
taxes paid by any person on such motor fuel under section 4081 of	4781
the Internal Revenue Code or Chapter 5735. of the Revised Code;	4782

(s) In the case of receipts from the sale of beer or	4783
intoxicating liquor, as defined in section 4301.01 of the Revised	4784
Code, by a person holding a permit issued under Chapter 4301. or	4785
4303. of the Revised Code, an amount equal to federal and state	4786
excise taxes paid by any person on or for such beer or	4787
intoxicating liquor under subtitle E of the Internal Revenue Code	4788
or Chapter 4301. or 4305. of the Revised Code;	4789

(t) Receipts realized by a new motor vehicle dealer or used	4790
motor vehicle dealer, as defined in section 4517.01 of the Revised	4791
Code, from the sale or other transfer of a motor vehicle, as	4792
defined in that section, to another motor vehicle dealer for the	4793
purpose of resale by the transferee motor vehicle dealer, but only	4794
if the sale or other transfer was based upon the transferee's need	4795
to meet a specific customer's preference for a motor vehicle;	4796

(u) Receipts from a financial institution described in	4797
division (E)(3) of this section for services provided to the	4798
financial institution in connection with the issuance, processing,	4799
servicing, and management of loans or credit accounts, if such	4800
financial institution and the recipient of such receipts have at	4801
least fifty per cent of their ownership interests owned or	4802
controlled, directly or constructively through related interests,	4803
by common owners;	4804

(v) Receipts realized from administering anti-neoplastic	4805
drugs and other cancer chemotherapy, biologicals, therapeutic	4806
agents, and supportive drugs in a physician's office to patients	4807
with cancer;	4808

(w) Funds received or used by a mortgage broker that is not a	4809
dealer in intangibles, other than fees or other consideration,	4810
pursuant to a table-funding mortgage loan or warehouse-lending	4811
mortgage loan. Terms used in division (F)(2)(w) of this section	4812
have the same meanings as in section 1322.01 of the Revised Code,	4813
except "mortgage broker" means a person assisting a buyer in	4814
obtaining a mortgage loan for a fee or other consideration paid by	4815
the buyer or a lender, or a person engaged in table-funding or	4816
warehouse-lending mortgage loans that are first lien mortgage	4817
loans.	4818

(x) Property, money, and other amounts received by a	4819
professional employer organization, as defined in section 4125.01	4820
of the Revised Code, from a client employer, as defined in that	4821
section, in excess of the administrative fee charged by the	4822
professional employer organization to the client employer;	4823

(y) In the case of amounts retained as commissions by a	4824
permit holder under Chapter 3769. of the Revised Code, an amount	4825
equal to the amounts specified under that chapter that must be	4826
paid to or collected by the tax commissioner as a tax and the	4827
amounts specified under that chapter to be used as purse money;	4828

(z) Qualifying distribution center receipts.

4829

(i) For purposes of division (F)(2)(z) of this section:

4830

(I) "Qualifying distribution center receipts" means receipts	4831
of a supplier from qualified property that is delivered to a	4832
qualified distribution center, multiplied by a quantity that	4833
equals one minus the Ohio delivery percentage.	4834

(II) "Qualified property" means tangible personal property	4835
delivered to a qualified distribution center that is shipped to	4836
that qualified distribution center solely for further shipping by	4837
the qualified distribution center to another location in this	4838
state or elsewhere. "Further shipping" includes storing and	4839
repackaging such property into smaller or larger bundles, so long	4840
as such property is not subject to further manufacturing or	4841
processing.	4842

(III) "Qualified distribution center" means a warehouse or	4843
other similar facility in this state that, for the qualifying	4844
year, is operated by a person that is not part of a combined	4845
taxpayer group and that has a qualifying certificate. However, all	4846
warehouses or other similar facilities that are operated by	4847
persons in the same taxpayer group and that are located within one	4848
mile of each other shall be treated as one qualified distribution	4849
center.	4850

(IV) "Qualifying year" means the calendar year to which the	4851
qualifying certificate applies.	4852

(V) "Qualifying period" means the period of the first day of	4853
July of the second year preceding the qualifying year through the	4854
thirtieth day of June of the year preceding the qualifying year.	4855

(VI) "Qualifying certificate" means the certificate issued by	4856
the tax commissioner after the operator of a distribution center	4857
files an annual application with the commissioner. The application	4858
and annual fee shall be filed and paid for each qualified	4859
distribution center on or before the first day of September before	4860
the qualifying year or within forty-five days after the	4861
distribution center opens, whichever is later.	4862

The applicant must substantiate to the commissioner's	4863
satisfaction that, for the qualifying period, all persons	4864
operating the distribution center have more than fifty per cent of	4865
the cost of the qualified property shipped to a location such that	4866
it would be sitused outside this state under the provisions of	4867
division (E) of section 5751.033 of the Revised Code. The	4868
applicant must also substantiate that the distribution center	4869
cumulatively had costs from its suppliers equal to or exceeding	4870
five hundred million dollars during the qualifying period. (For	4871
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	4872
excludes any person that is part of the consolidated elected	4873
taxpayer group, if applicable, of the operator of the qualified	4874
distribution center.) The commissioner may require the applicant	4875
to have an independent certified public accountant certify that	4876
the calculation of the minimum thresholds required for a qualified	4877
distribution center by the operator of a distribution center has	4878
been made in accordance with generally accepted accounting	4879
principles. The commissioner shall issue or deny the issuance of a	4880
certificate within sixty days after the receipt of the	4881
application. A denial is subject to appeal under section 5717.02	4882
of the Revised Code. If the operator files a timely appeal under	4883
section 5717.02 of the Revised Code, the operator shall be granted	4884
a qualifying certificate, provided that the operator is liable for	4885
any tax, interest, or penalty upon amounts claimed as qualifying	4886
distribution center receipts, other than those receipts exempt	4887
under division (C)(1) of section 5751.011 of the Revised Code,	4888
that would have otherwise not been owed by its suppliers if the	4889
qualifying certificate was valid.	4890

(VII) "Ohio delivery percentage" means the proportion of the	4891
total property delivered to a destination inside Ohio from the	4892
qualified distribution center during the qualifying period	4893
compared with total deliveries from such distribution center	4894
everywhere during the qualifying period.	4895

(ii) If the distribution center is new and was not open for	4896
the entire qualifying period, the operator of the distribution	4897
center may request that the commissioner grant a qualifying	4898
certificate. If the certificate is granted and it is later	4899
determined that more than fifty per cent of the qualified property	4900
during that year was not shipped to a location such that it would	4901
be sitused outside of this state under the provisions of division	4902
(E) of section 5751.033 of the Revised Code or if it is later	4903
determined that the person that operates the distribution center	4904
had average monthly costs from its suppliers of less than forty	4905
million dollars during that year, then the operator of the	4906
distribution center shall be liable for any tax, interest, or	4907
penalty upon amounts claimed as qualifying distribution center	4908
receipts, other than those receipts exempt under division (C)(1)	4909
of section 5751.011 of the Revised Code, that would have not	4910
otherwise been owed by its suppliers during the qualifying year if	4911
the qualifying certificate was valid. (For purposes of division	4912
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	4913
is part of the consolidated elected taxpayer group, if applicable,	4914
of the operator of the qualified distribution center.)	4915

(iii) When filing an application for a qualifying certificate	4916
under division (F)(2)(z)(i)(VI) of this section, the operator of a	4917
qualified distribution center also shall provide documentation, as	4918
the commissioner requires, for the commissioner to ascertain the	4919
Ohio delivery percentage. The commissioner, upon issuing the	4920
qualifying certificate, also shall certify the Ohio delivery	4921
percentage. The operator of the qualified distribution center may	4922
appeal the commissioner's certification of the Ohio delivery	4923
percentage in the same manner as an appeal is taken from the	4924
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	4925
of this section.	4926

Within thirty days after all appeals have been exhausted, the	4927
operator of the qualified distribution center shall notify the	4928
affected suppliers of qualified property that such suppliers are	4929
required to file, within sixty days after receiving notice from	4930
the operator of the qualified distribution center, amended reports	4931
for the impacted calendar quarter or quarters or calendar year,	4932
whichever the case may be. Any additional tax liability or tax	4933
overpayment shall be subject to interest but shall not be subject	4934
to the imposition of any penalty so long as the amended returns	4935
are timely filed. The supplier of tangible personal property	4936
delivered to the qualified distribution center shall include in	4937
its report of taxable gross receipts the receipts from the total	4938
sales of property delivered to the qualified distribution center	4939
for the calendar quarter or calendar year, whichever the case may	4940
be, multiplied by the Ohio delivery percentage for the qualifying	4941
year. Nothing in division (F)(2)(z)(iii) of this section shall be	4942
construed as imposing liability on the operator of a qualified	4943
distribution center for the tax imposed by this chapter arising	4944
from any change to the Ohio delivery percentage.	4945

(iv) In the case where the distribution center is new and not	4946
open for the entire qualifying period, the operator shall make a	4947
good faith estimate of an Ohio delivery percentage for use by	4948
suppliers in their reports of taxable gross receipts for the	4949
remainder of the qualifying period. The operator of the facility	4950
shall disclose to the suppliers that such Ohio delivery percentage	4951
is an estimate and is subject to recalculation. By the due date of	4952
the next application for a qualifying certificate, the operator	4953
shall determine the actual Ohio delivery percentage for the	4954
estimated qualifying period and proceed as provided in division	4955
(F)(2)(z)(iii) of this section with respect to the calculation and	4956
recalculation of the Ohio delivery percentage. The supplier is	4957
required to file, within sixty days after receiving notice from	4958
the operator of the qualified distribution center, amended reports	4959
for the impacted calendar quarter or quarters or calendar year,	4960
whichever the case may be. Any additional tax liability or tax	4961
overpayment shall be subject to interest but shall not be subject	4962
to the imposition of any penalty so long as the amended returns	4963
are timely filed.	4964

(v) Qualifying certificates and Ohio delivery percentages	4965
issued by the commissioner shall be open to public inspection and	4966
shall be timely published by the commissioner. A supplier relying	4967
in good faith on a certificate issued under this division shall	4968
not be subject to tax on the qualifying distribution center	4969
receipts under division (F)(2)(z) of this section. A person	4970
receiving a qualifying certificate is responsible for paying the	4971
tax, interest, and penalty upon amounts claimed as qualifying	4972
distribution center receipts that would not otherwise have been	4973
owed by the supplier if the qualifying certificate were available	4974
when it is later determined that the qualifying certificate should	4975
not have been issued because the statutory requirements were in	4976
fact not met.	4977

(vi) The annual fee for a qualifying certificate shall be one	4978
hundred thousand dollars for each qualified distribution center.	4979
If a qualifying certificate is not issued, the annual fee is	4980
subject to refund after the exhaustion of all appeals provided for	4981
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	4982
under this division may be assessed in the same manner as the tax	4983
imposed under this chapter. The first one hundred thousand dollars	4984
of the annual application fees collected each calendar year shall	4985
be credited to the ~~commercial activity tax administrative~~revenue	4986
enhancement fund. The remainder of the annual application fees	4987
collected shall be distributed in the same manner required under	4988
section 5751.20 of the Revised Code.	4989

(vii) The tax commissioner may require that adequate security	4990
be posted by the operator of the distribution center on appeal	4991
when the commissioner disagrees that the applicant has met the	4992
minimum thresholds for a qualified distribution center as set	4993
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	4994
section.	4995

(aa) Receipts of an employer from payroll deductions relating	4996
to the reimbursement of the employer for advancing moneys to an	4997
unrelated third party on an employee's behalf;	4998

(bb) Cash discounts allowed and taken;

4999

(cc) Returns and allowances;

5000

(dd) Bad debts from receipts on the basis of which the tax	5001
imposed by this chapter was paid in a prior quarterly tax payment	5002
period. For the purpose of this division, "bad debts" means any	5003
debts that have become worthless or uncollectible between the	5004
preceding and current quarterly tax payment periods, have been	5005
uncollected for at least six months, and that may be claimed as a	5006
deduction under section 166 of the Internal Revenue Code and the	5007
regulations adopted under that section, or that could be claimed	5008
as such if the taxpayer kept its accounts on the accrual basis.	5009
"Bad debts" does not include repossessed property, uncollectible	5010
amounts on property that remains in the possession of the taxpayer	5011
until the full purchase price is paid, or expenses in attempting	5012
to collect any account receivable or for any portion of the debt	5013
recovered;	5014

(ee) Any amount realized from the sale of an account	5015
receivable to the extent the receipts from the underlying	5016
transaction giving rise to the account receivable were included in	5017
the gross receipts of the taxpayer;	5018

(ff) Any receipts directly attributed to providing public	5019
services pursuant to sections 126.60 to 126.605 of the Revised	5020
Code, or any receipts directly attributed to a transfer agreement	5021
or to the enterprise transferred under that agreement under	5022
section 4313.02 of the Revised Code.	5023

(gg) ~~Any receipts for which the tax imposed by this chapter~~	5024
~~is prohibited by the Constitution or laws of the United States or~~	5025
~~the Constitution of Ohio.~~	5026

~~(hh)~~(i) As used in this division:

5027

(I) "Qualified uranium receipts" means receipts from the	5028
sale, exchange, lease, loan, production, processing, or other	5029
disposition of uranium within a uranium enrichment zone certified	5030
by the tax commissioner under division ~~(F)(2)(hh)(ii)~~	5031
(F)(2)(gg)(ii) of this section. "Qualified uranium receipts" does	5032
not include any receipts with a situs in this state outside a	5033
uranium enrichment zone certified by the tax commissioner under	5034
division ~~(F)(2)(hh)(ii)~~(F)(2)(gg)(ii) of this section.	5035

(II) "Uranium enrichment zone" means all real property that	5036
is part of a uranium enrichment facility licensed by the United	5037
States nuclear regulatory commission and that was or is owned or	5038
controlled by the United States department of energy or its	5039
successor.	5040

(ii) Any person that owns, leases, or operates real or	5041
tangible personal property constituting or located within a	5042
uranium enrichment zone may apply to the tax commissioner to have	5043
the uranium enrichment zone certified for the purpose of excluding	5044
qualified uranium receipts under division ~~(F)(2)(hh)~~(F)(2)(gg) of	5045
this section. The application shall include such information that	5046
the tax commissioner prescribes. Within sixty days after receiving	5047
the application, the tax commissioner shall certify the zone for	5048
that purpose if the commissioner determines that the property	5049
qualifies as a uranium enrichment zone as defined in division	5050
~~(F)(2)(hh)~~(F)(2)(gg) of this section, or, if the tax commissioner	5051
determines that the property does not qualify, the commissioner	5052
shall deny the application or request additional information from	5053
the applicant. If the tax commissioner denies an application, the	5054
commissioner shall state the reasons for the denial. The applicant	5055
may appeal the denial of an application to the board of tax	5056
appeals pursuant to section 5717.02 of the Revised Code. If the	5057
applicant files a timely appeal, the tax commissioner shall	5058
conditionally certify the applicant's property. The conditional	5059
certification shall expire when all of the applicant's appeals are	5060
exhausted. Until final resolution of the appeal, the applicant	5061
shall retain the applicant's records in accordance with section	5062
5751.12 of the Revised Code, notwithstanding any time limit on the	5063
preservation of records under that section.	5064

~~(ii)~~(hh) Amounts realized by licensed motor fuel dealers or	5065
licensed permissive motor fuel dealers from the exchange of	5066
petroleum products, including motor fuel, between such dealers,	5067
provided that delivery of the petroleum products occurs at a	5068
refinery, terminal, pipeline, or marine vessel and that the	5069
exchanging dealers agree neither dealer shall require monetary	5070
compensation from the other for the value of the exchanged	5071
petroleum products other than such compensation for differences in	5072
product location or grade. Division ~~(F)(2)(ii)~~(F)(2)(hh) of this	5073
section does not apply to amounts realized as a result of	5074
differences in location or grade of exchanged petroleum products	5075
or from handling, lubricity, dye, or other additive injections	5076
fees, pipeline security fees, or similar fees. As used in this	5077
division, "motor fuel," "licensed motor fuel dealer," "licensed	5078
permissive motor fuel dealer," and "terminal" have the same	5079
meanings as in section 5735.01 of the Revised Code.	5080

~~(hh)~~(ii) In the case of amounts collected by a licensed	5081
casino operator from casino gaming, amounts in excess of the	5082
casino operator's gross casino revenue. In this division, "casino	5083
operator" and "casino gaming" have the meanings defined in section	5084
3772.01 of the Revised Code, and "gross casino revenue" has the	5085
meaning defined in section 5753.01 of the Revised Code.	5086

(jj) Any receipts for which the tax imposed by this chapter	5087
is prohibited by the constitution or laws of the United States or	5088
the constitution of this state.	5089

(3) In the case of a taxpayer when acting as a real estate	5090
broker, "gross receipts" includes only the portion of any fee for	5091
the service of a real estate broker, or service of a real estate	5092
salesperson associated with that broker, that is retained by the	5093
broker and not paid to an associated real estate salesperson or	5094
another real estate broker. For the purposes of this division,	5095
"real estate broker" and "real estate salesperson" have the same	5096
meanings as in section 4735.01 of the Revised Code.	5097

(4) A taxpayer's method of accounting for gross receipts for	5098
a tax period shall be the same as the taxpayer's method of	5099
accounting for federal income tax purposes for the taxpayer's	5100
federal taxable year that includes the tax period. If a taxpayer's	5101
method of accounting for federal income tax purposes changes, its	5102
method of accounting for gross receipts under this chapter shall	5103
be changed accordingly.	5104

(G) "Taxable gross receipts" means gross receipts sitused to	5105
this state under section 5751.033 of the Revised Code.	5106

(H) A person has "substantial nexus with this state" if any	5107
of the following applies. The person:	5108

(1) Owns or uses a part or all of its capital in this state;

5109

(2) Holds a certificate of compliance with the laws of this	5110
state authorizing the person to do business in this state;	5111

(3) Has bright-line presence in this state;

5112

(4) Otherwise has nexus with this state to an extent that the	5113
person can be required to remit the tax imposed under this chapter	5114
under the Constitution of the United States.	5115

(I) A person has "bright-line presence" in this state for a	5116
reporting period and for the remaining portion of the calendar	5117
year if any of the following applies. The person:	5118

(1) Has at any time during the calendar year property in this	5119
state with an aggregate value of at least fifty thousand dollars.	5120
For the purpose of division (I)(1) of this section, owned property	5121
is valued at original cost and rented property is valued at eight	5122
times the net annual rental charge.	5123

(2) Has during the calendar year payroll in this state of at	5124
least fifty thousand dollars. Payroll in this state includes all	5125
of the following:	5126

(a) Any amount subject to withholding by the person under	5127
section 5747.06 of the Revised Code;	5128

(b) Any other amount the person pays as compensation to an	5129
individual under the supervision or control of the person for work	5130
done in this state; and	5131

(c) Any amount the person pays for services performed in this	5132
state on its behalf by another.	5133

(3) Has during the calendar year taxable gross receipts of at	5134
least five hundred thousand dollars.	5135

(4) Has at any time during the calendar year within this	5136
state at least twenty-five per cent of the person's total	5137
property, total payroll, or total gross receipts.	5138

(5) Is domiciled in this state as an individual or for	5139
corporate, commercial, or other business purposes.	5140

(J) "Tangible personal property" has the same meaning as in	5141
section 5739.01 of the Revised Code.	5142

(K) "Internal Revenue Code" means the Internal Revenue Code	5143
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	5144
this chapter that is not otherwise defined has the same meaning as	5145
when used in a comparable context in the laws of the United States	5146
relating to federal income taxes unless a different meaning is	5147
clearly required. Any reference in this chapter to the Internal	5148
Revenue Code includes other laws of the United States relating to	5149
federal income taxes.	5150

(L) "Calendar quarter" means a three-month period ending on	5151
the thirty-first day of March, the thirtieth day of June, the	5152
thirtieth day of September, or the thirty-first day of December.	5153

(M) "Tax period" means the calendar quarter or calendar year	5154
on the basis of which a taxpayer is required to pay the tax	5155
imposed under this chapter.	5156

(N) "Calendar year taxpayer" means a taxpayer for which the	5157
tax period is a calendar year.	5158

(O) "Calendar quarter taxpayer" means a taxpayer for which	5159
the tax period is a calendar quarter.	5160

(P) "Agent" means a person authorized by another person to	5161
act on its behalf to undertake a transaction for the other,	5162
including any of the following:	5163

(1) A person receiving a fee to sell financial instruments;

5164

(2) A person retaining only a commission from a transaction	5165
with the other proceeds from the transaction being remitted to	5166
another person;	5167

(3) A person issuing licenses and permits under section	5168
1533.13 of the Revised Code;	5169

(4) A lottery sales agent holding a valid license issued	5170
under section 3770.05 of the Revised Code;	5171

(5) A person acting as an agent of the division of liquor	5172
control under section 4301.17 of the Revised Code.	5173

(Q) "Received" includes amounts accrued under the accrual	5174
method of accounting.	5175

(R) "Reporting person" means a person in a consolidated	5176
elected taxpayer or combined taxpayer group that is designated by	5177
that group to legally bind the group for all filings and tax	5178
liabilities and to receive all legal notices with respect to	5179
matters under this chapter, or, for the purposes of section	5180
5751.04 of the Revised Code, a separate taxpayer that is not a	5181
member of such a group.	5182

Sec. 5751.011. (A) A group of two or more persons may elect	5183
to be a consolidated elected taxpayer for the purposes of this	5184
chapter if the group satisfies all of the following requirements:	5185

(1) The group elects to include all persons, including	5186
persons enumerated in divisions (E)(2) to (10) of section 5751.01	5187
of the Revised Code, having at least eighty per cent, or having at	5188
least fifty per cent, of the value of their ownership interests	5189
owned or controlled, directly or constructively through related	5190
interests, by common owners during all or any portion of the tax	5191
period, together with the common owners.	5192

A group making its initial election on the basis of the	5193
eighty per cent ownership test may change its election so that its	5194
consolidated elected taxpayer group is formed on the basis of the	5195
fifty per cent ownership test if all of the following are	5196
satisfied:	5197

(a) When the initial election was made, the group did not	5198
have any persons satisfying the fifty per cent ownership test;	5199

(b) One or more of the persons in the initial group	5200
subsequently acquires ownership interests in a person such that	5201
the fifty per cent ownership test is satisfied, the eighty per	5202
cent ownership test is not satisfied, and the acquired person	5203
would be required to be included in a combined taxpayer group	5204
under section 5751.012 of the Revised Code;	5205

(c) The group requests the change in ~~a written request~~	5206
writing to the ~~tax~~ commissioner ~~on or before the due date for~~	5207
~~filing the first return due under section 5751.051 of the Revised~~	5208
~~Code after the date of the acquisition~~as required by division (D)	5209
of this section;	5210

(d) The group has not previously changed its election.

5211

At the election of the group, all entities that are not	5212
incorporated or formed under the laws of a state or of the United	5213
States and that meet the consolidated elected ownership test shall	5214
either be included in the group or all shall be excluded from the	5215
group. If, at the time of registration, the group does not include	5216
any such entities that meet the consolidated elected ownership	5217
test, the group shall elect to either include or exclude the newly	5218
acquired entities before the due date of the first return due	5219
after the date of the acquisition.	5220

~~Each group shall notify the tax commissioner of the foregoing~~	5221
~~elections before the due date of the return for the period in~~	5222
~~which the election becomes binding.~~ If fifty per cent of the value	5223
of a person's ownership interests is owned or controlled by each	5224
of two consolidated elected taxpayer groups formed under the fifty	5225
per cent ownership or control test, that person is a member of	5226
each group for the purposes of this section, and each group shall	5227
include in the group's taxable gross receipts fifty per cent of	5228
that person's taxable gross receipts. Otherwise, all of that	5229
person's taxable gross receipts shall be included in the taxable	5230
gross receipts of the consolidated elected taxpayer group of which	5231
the person is a member. In no event shall the ownership or control	5232
of fifty per cent of the value of a person's ownership interests	5233
by two otherwise unrelated groups form the basis for consolidating	5234
the groups into a single consolidated elected taxpayer group or	5235
permit any exclusion under division (C) of this section of taxable	5236
gross receipts between members of the two groups. Division (A)(3)	5237
of this section applies with respect to the elections described in	5238
this division.	5239

(2) The group makes the election to be treated as a	5240
consolidated elected taxpayer in the manner prescribed under	5241
division (D) of this section.	5242

(3) Subject to review and audit by the tax commissioner, the	5243
group agrees that all of the following apply:	5244

(a) The group shall file reports as a single taxpayer for at	5245
least the next eight calendar quarters following the election so	5246
long as at least two or more of the members of the group meet the	5247
requirements of division (A)(1) of this section.	5248

(b) Before the expiration of the eighth such calendar	5249
quarter, the group shall notify the commissioner if it elects to	5250
cancel its designation as a consolidated elected taxpayer. If the	5251
group does not so notify the tax commissioner, the election	5252
remains in effect for another eight calendar quarters.	5253

(c) If, at any time during any of those eight calendar	5254
quarters following the election, a former member of the group no	5255
longer meets the requirements under division (A)(1) of this	5256
section, that member shall report and pay the tax imposed under	5257
this chapter separately, as a member of a combined taxpayer, or,	5258
if the former member satisfies such requirements with respect to	5259
another consolidated elected group, as a member of that	5260
consolidated elected group.	5261

(d) The group agrees to the application of division (B) of	5262
this section.	5263

(B) A group of persons making the election under this section	5264
shall report and pay tax on all of the group's taxable gross	5265
receipts even if substantial nexus with this state does not exist	5266
for one or more persons in the group.	5267

(C)(1)(a) Members of a consolidated elected taxpayer group	5268
shall exclude gross receipts among persons included in the	5269
consolidated elected taxpayer group.	5270

(b) Subject to divisions (C)(1)(c) and (C)(2) of this	5271
section, nothing in this section shall have the effect of	5272
requiring a consolidated elected taxpayer group to include gross	5273
receipts received by a person enumerated in divisions (E)(2) to	5274
(10) of section 5751.01 of the Revised Code if that person is a	5275
member of the group pursuant to the elections made by the group	5276
under division (A)(1) of this section.	5277

(c)(i) As used in division (C)(1)(c) of this section, "dealer	5278
transfer" means a transfer of property that satisfies both of the	5279
following: (I) the property is directly transferred by any means	5280
from one member of the group to another member of the group that	5281
is a dealer in intangibles but is not a qualifying dealer as	5282
defined in section 5707.031 of the Revised Code; and (II) the	5283
property is subsequently delivered by the dealer in intangibles to	5284
a person that is not a member of the group.	5285

(ii) In the event of a dealer transfer, a consolidated	5286
elected taxpayer group shall not exclude, under division (C) of	5287
this section, gross receipts from the transfer described in	5288
division (C)(1)(c)(i)(I) of this section.	5289

(2) Gross receipts related to the sale or transmission of	5290
electricity through the use of an intermediary regional	5291
transmission organization approved by the federal energy	5292
regulatory commission shall be excluded from taxable gross	5293
receipts under division (C)(1) of this section if all other	5294
requirements of that division are met, even if the receipts are	5295
from and to the same member of the group.	5296

(D) To make the election to be a consolidated elected	5297
taxpayer, a group of persons shall notify the ~~tax~~ commissioner of	5298
the election ~~in the manner prescribed by the commissioner and pay~~	5299
~~the commissioner a registration fee equal to the lesser of two~~	5300
~~hundred dollars or twenty dollars for each person in the group. No~~	5301
~~additional fee shall be imposed for the addition of new members to~~	5302
~~the group once the group has remitted a fee in the amount of two~~	5303
~~hundred dollars. The election~~on a form prescribed by the	5304
commissioner for that purpose, which shall be signed by one or	5305
more individuals with authority, separately or together, to make a	5306
binding election on behalf of all persons in the group. Elections	5307
under division (A) of this section shall be made ~~and the fee paid~~	5308
on or before the ~~beginning of~~due date for filing the first	5309
~~calendar quarter to which~~return due after the election applies.	5310
~~The fee shall be collected and used in the same manner as provided~~	5311
~~in section 5751.04 of the Revised Code.~~	5312

~~The election shall be made on a form prescribed by the tax~~	5313
~~commissioner for that purpose and shall be signed by one or more~~	5314
~~individuals with authority, separately or together, to make a~~	5315
~~binding election on behalf of all persons in the group.~~	5316

Any person acquired or formed after the filing of the	5317
registration shall be included in the group if the person meets	5318
the requirements of division (A)(1) of this section, and the group	5319
shall notify the ~~tax~~ commissioner of any additions to the group	5320
~~with the next tax return it files with~~on a form prescribed by the	5321
commissioner for such purpose.	5322

Sec. 5751.012. (A) All persons, other than persons	5323
enumerated in divisions (E)(2) to (10) of section 5751.01 of the	5324
Revised Code, having more than fifty per cent of the value of	5325
their ownership interest owned or controlled, directly or	5326
constructively through related interests, by common owners during	5327
all or any portion of the tax period, together with the common	5328
owners, shall be members of a combined taxpayer group if those	5329
persons are not members of a consolidated elected taxpayer group	5330
pursuant to an election under section 5751.011 of the Revised	5331
Code.	5332

(B) A combined taxpayer group shall register, file returns,	5333
and pay taxes under this chapter as a single taxpayer.	5334

~~(C) A combined taxpayer~~and shall neither exclude taxable	5335
gross receipts between its members nor from others that are not	5336
members.	5337

~~(D) A combined taxpayer shall pay to the tax commissioner a~~	5338
~~registration fee equal to the lesser of two hundred dollars or~~	5339
~~twenty dollars for each person in the group. No additional fee~~	5340
~~shall be imposed for the addition of new members to the group once~~	5341
~~the group has remitted a fee in the amount of two hundred dollars.~~	5342
~~The fee shall be timely paid before the later of the beginning of~~	5343
~~the first calendar quarter or November 15, 2005. The fee shall be~~	5344
~~collected and used in the same manner as provided in section~~	5345
~~5751.04 of the Revised Code.~~	5346

(C) Any person acquired or formed after the filing of the	5347
registration shall be included in the group if the person meets	5348
the requirements of division (A) of this section, and the group	5349
must notify the ~~tax~~ commissioner of any additions ~~with the next~~	5350
~~quarterly tax return it files with~~to the group on a form	5351
prescribed by the commissioner for such purpose.	5352

Sec. 5751.03. (A) Except as provided in ~~divisions~~division	5353
(B) ~~and (D)~~ of this section and in ~~sections~~section 5751.031 ~~and~~	5354
~~5751.032~~ of the Revised Code, the tax levied under this section	5355
for each tax period shall be the product of two and six-tenths	5356
mills per dollar times the remainder of the taxpayer's taxable	5357
gross receipts for the tax period after subtracting the exclusion	5358
amount provided for in division (C) of this section.	5359

(B) Notwithstanding division (C) of this section, the tax on	5360
the first one million dollars in taxable gross receipts each	5361
calendar year shall be one hundred fifty dollars. ~~For calendar~~	5362
~~year 2006, the tax imposed under this division shall be paid not~~	5363
~~later than May 10, 2006, by both calendar year taxpayers and~~	5364
~~calendar quarter taxpayers. For calendar years 2007, 2008, and~~	5365
~~2009, the tax imposed under this division shall be paid with the~~	5366
~~fourth-quarter tax return or annual tax return for the prior~~	5367
~~calendar year by both calendar year taxpayers and calendar quarter~~	5368
~~taxpayers. For calendar years 2010 and thereafter, the~~The tax	5369
imposed under this division shall be paid not later than the tenth	5370
day of May of each year along with the first quarter or annual tax	5371
return, as applicable.	5372

(C)(1) Each ~~calendar quarter~~ taxpayer may exclude the first	5373
~~two hundred fifty thousand~~one million dollars of taxable gross	5374
receipts for a calendar ~~quarter~~year. Calendar quarter taxpayers	5375
may apply the full exclusion amount to the first calendar quarter	5376
return the taxpayer files that calendar year and may carry forward	5377
and apply any unused exclusion amount to ~~the three~~ subsequent	5378
calendar quarters within that same calendar year. ~~Each calendar~~	5379
~~year taxpayer may exclude the first one million dollars of taxable~~	5380
~~gross receipts for a calendar year.~~	5381

(2) A taxpayer switching from a calendar year tax period to a	5382
calendar quarter tax period may, for the first quarter of the	5383
change, apply the ~~prior calendar quarter~~full one-million-dollar	5384
exclusion ~~amounts~~amount to the first calendar quarter return the	5385
taxpayer files that calendar year. Such taxpayers may carry	5386
forward and apply any unused exclusion amount to subsequent	5387
calendar quarters within that same calendar year. The tax rate	5388
shall be based on the rate imposed that calendar quarter when the	5389
taxpayer switches from a calendar year to a calendar quarter tax	5390
period.	5391

~~(D) There is hereby allowed a credit against the tax imposed~~	5392
~~under this chapter for each of the following calendar years if a~~	5393
~~transfer was made in the preceding calendar year from the general~~	5394
~~revenue fund to the commercial activity tax refund fund under~~	5395
~~division (D) of section 5751.032 of the Revised Code: calendar~~	5396
~~years 2008, 2010, and 2012. The credit is allowed for taxpayers~~	5397
~~that paid in full the tax imposed under this chapter for the~~	5398
~~calendar year in which the transfer was made. The amount of a~~	5399
~~taxpayer's credit equals the amount computed under division (D) of~~	5400
~~section 5751.032 of the Revised Code~~(3) A taxpayer shall not	5401
exclude more than one million dollars pursuant to division (C) of	5402
this section in a calendar year.	5403

Sec. 5751.04. (A) As used in this section, "person" includes	5404
a reporting person.	5405

(B) Not later than thirty days after a person first has more	5406
than one hundred fifty thousand dollars in taxable gross receipts	5407
in a calendar year, each person subject to this chapter shall	5408
register with the tax commissioner on the form prescribed by the	5409
commissioner. The form shall include the following:	5410

(1) The person's name;

5411

(2) ~~If applicable, the name of the state or country under the~~	5412
~~laws of which the person is incorporated;~~	5413

~~(3) If applicable, the location of a person's principal~~	5414
~~office and the name and address of the officer or agent of the~~	5415
~~corporation in charge of the business;~~	5416

~~(4) If applicable, the names of the person's president,~~	5417
~~secretary, treasurer, and statutory agent designated pursuant to~~	5418
~~section 1703.041 of the Revised Code, with the post office address~~	5419
~~of each;~~	5420

~~(5)~~The person's primary address;

5421

(3) The ~~kind of business in which the person is engaged,~~	5422
~~including applicable~~ business or industry codes for the person;	5423

~~(6) If required by the tax commissioner, the date of the~~	5424
~~beginning of the person's annual accounting period that includes~~	5425
~~the first day of January of the taxable calendar year;~~	5426

~~(7) If the person is not a corporation or a sole proprietor,~~	5427
~~the names of the person's owners and officers, if required by the~~	5428
~~tax commissioner;~~	5429

~~(8)~~(4) The person's federal employer identification number or	5430
~~numbers or, if those are not applicable, the person's~~ social	5431
security number or equivalent, as applicable;	5432

~~(9)~~(5) The person's organizational type;

5433

(6) The date the person is first subject to the tax imposed	5434
by this chapter;	5435

(7) The names, addresses, federal identification numbers or	5436
social security numbers or equivalents, and organization types of	5437
each member that is commonly owned in a consolidated elected	5438
taxpayer or combined taxpayer group;	5439

(8) All other information that the commissioner requires to	5440
administer and enforce this chapter.	5441

(C) ~~Except as otherwise provided in this division, each~~	5442
~~person registering with the tax commissioner as required by~~	5443
~~division (B) of this section shall pay a registration fee. The fee~~	5444
~~shall be in the amount of fifteen dollars if a person registers~~	5445
~~electronically and twenty dollars if a person does not register~~	5446
~~electronically. The registration fee shall be paid in the manner~~	5447
~~prescribed by the tax commissioner at the same time the~~	5448
~~registration is due if a person is subject to the tax imposed~~	5449
~~under this chapter before January 1, 2006. If a person first~~	5450
~~becomes subject to the tax after that date, the registration fee~~	5451
~~is payable with the first tax period return the person is required~~	5452
~~to file as prescribed by section 5751.051 of the Revised Code. If~~	5453
(1) To help defray the costs of administering the tax imposed by	5454
this chapter, the commissioner shall collect a registration fee in	5455
the amount of twenty dollars per person up to a maximum of two	5456
hundred dollars per consolidated elected taxpayer or combined	5457
taxpayer group. The commissioner shall systematically deduct and	5458
collect the fee from the first tax payment each taxpayer makes	5459
after registering or adding members, as applicable. No separate	5460
registration fee may be collected in addition to the tax imposed	5461
by this chapter.	5462

(2) If a person does not register within the time prescribed	5463
by this section, an additional fee is imposed in the amount of one	5464
hundred dollars per month or part thereof that the fee is	5465
outstanding, not to exceed one thousand dollars. The tax	5466
commissioner may abate the additional fee. The fee imposed under	5467
this division may be assessed in the same manner as the tax	5468
imposed under this chapter. ~~Proceeds~~	5469

(D) Proceeds from the fee imposed under division (C) of this	5470
section shall be credited to the ~~commercial activity tax~~	5471
~~administrative~~revenue enhancement fund, which is hereby created	5472
in the state treasury ~~for the commissioner to use in implementing~~	5473
~~and administering the tax imposed under this chapter~~.	5474

~~Registration fees paid under this section, excluding any~~	5475
~~additional fee imposed for a person's failure to timely register,~~	5476
~~shall be credited against the first payment of tax payable under~~	5477
~~section 5751.03 of the Revised Code.~~	5478

~~(D)~~(E) If a person that has registered under this section is	5479
no longer a taxpayer subject to this chapter, ~~including no longer~~	5480
~~being a taxpayer because of the application of division (E)(1) of~~	5481
~~section 5751.01 of the Revised Code,~~ the person shall notify the	5482
commissioner that the person's registration should be cancelled.	5483

~~(E)~~(F) With respect to registrations received by the	5484
commissioner before ~~the effective date of the amendment of this~~	5485
~~section by the main operating appropriations act of the 128th~~	5486
~~general assembly~~October 16, 2009, the taxpayer listed as the	5487
primary taxpayer on the registration shall be the reporting person	5488
until the taxpayer notifies the commissioner otherwise.	5489

Sec. 5751.05. (A) If a person subject to this chapter	5490
anticipates that the person's taxable gross receipts will be more	5491
than one million dollars in a calendar year, the person shall	5492
notify the tax commissioner on the person's initial registration	5493
form and file on a quarterly basis as a calendar quarter taxpayer.	5494
Any taxpayer with taxable gross receipts of one million dollars or	5495
less shall register as a calendar year taxpayer and shall file	5496
annually.	5497

(B) Any person that is a calendar year taxpayer under	5498
division (A) of this section shall become a calendar quarter	5499
taxpayer in the subsequent calendar year if the person's taxable	5500
gross receipts for the prior calendar year are more than one	5501
million dollars, and shall remain a calendar quarter taxpayer	5502
until the person notifies the ~~tax~~ commissioner, and receives	5503
approval in writing from the ~~tax~~ commissioner, to switch back to	5504
being a calendar year taxpayer. ~~Nothing in this division prohibits~~	5505
~~a person that has elected to be a calendar year taxpayer from~~	5506
~~notifying the tax commissioner, using the procedures prescribed by~~	5507
~~the commissioner, that it is switching back to being a calendar~~	5508
~~quarter taxpayer.~~	5509

(C) ~~Any taxpayer that is not a calendar quarter taxpayer~~	5510
~~pursuant to this section is a calendar year taxpayer.~~ The	5511
commissioner may grant written approval for a calendar quarter	5512
taxpayer to use an alternative reporting schedule or estimate the	5513
amount of tax due for a calendar quarter if the taxpayer	5514
demonstrates to the commissioner the need for such a deviation.	5515
The commissioner may adopt a rule to apply division (C) of this	5516
section to a group of taxpayers without the taxpayers having to	5517
receive written approval from the commissioner.	5518

Sec. 5751.051. (A)(1) Not later than the tenth day of the	5519
second month after the end of each calendar quarter, every	5520
taxpayer other than a calendar year taxpayer shall file with the	5521
tax commissioner a tax return in such form as the commissioner	5522
prescribes. The return shall include, but is not limited to, the	5523
amount of the taxpayer's taxable gross receipts for the calendar	5524
quarter and shall indicate the amount of tax due under section	5525
5751.03 of the Revised Code for the calendar quarter.	5526

(2)(a) Subject to division (C) of section 5751.05 of the	5527
Revised Code, a calendar quarter taxpayer shall report the taxable	5528
gross receipts for that calendar quarter.	5529

(b) With respect to taxable gross receipts incorrectly	5530
reported in a calendar quarter that has a lower tax rate, the tax	5531
shall be computed at the tax rate in effect for the quarterly	5532
return in which such receipts should have been reported. Nothing	5533
in division (A)(2)(b) of this section prohibits a taxpayer from	5534
filing an application for refund under section 5751.08 of the	5535
Revised Code with regard to the incorrect reporting of taxable	5536
gross receipts discovered after filing the annual return described	5537
in division (A)(3) of this section.	5538

A tax return shall not be deemed to be an incorrect reporting	5539
of taxable gross receipts for the purposes of division (A)(2)(b)	5540
of this section if the return reflects between ninety-five and one	5541
hundred five per cent of the actual taxable gross receipts for the	5542
calendar quarter.	5543

(3) For the purposes of division (A)(2)(b) of this section,	5544
the tax return filed for the fourth calendar quarter of a calendar	5545
year is the annual return for the privilege tax imposed by this	5546
chapter. Such return shall report any additional taxable gross	5547
receipts not previously reported in the calendar year and shall	5548
adjust for any over-reported taxable gross receipts in the	5549
calendar year. If the taxpayer ceases to be a taxpayer before the	5550
end of the calendar year, the last return the taxpayer is required	5551
to file shall be the annual return for the taxpayer and the	5552
taxpayer shall report any additional taxable gross receipts not	5553
previously reported in the calendar year and shall adjust for any	5554
over-reported taxable gross receipts in the calendar year.	5555

(4) Because the tax imposed by this chapter is a privilege	5556
tax, the tax rate with respect to taxable gross receipts for a	5557
calendar quarter is not fixed until the end of the measurement	5558
period for each calendar quarter. Subject to division (A)(2)(b) of	5559
this section, the total amount of taxable gross receipts reported	5560
for a given calendar quarter shall be subject to the tax rate in	5561
effect in that quarter.	5562

(5) Not later than the tenth day of May following the end of	5563
each calendar year, every calendar year taxpayer shall file with	5564
the tax commissioner a tax return in such form as the commissioner	5565
prescribes. The return shall include, but is not limited to, the	5566
amount of the taxpayer's taxable gross receipts for the calendar	5567
year and shall indicate the amount of tax due under section	5568
5751.03 of the Revised Code for the calendar year.	5569

(B)(1) A person that first becomes subject to the tax imposed	5570
under this chapter shall pay the minimum tax imposed under	5571
division (B) of section 5751.03 of the Revised Code ~~along with the~~	5572
~~registration fee imposed under this section, if applicable,~~ on or	5573
before the day the return is required to be filed for that quarter	5574
under division (A)(1) of this section, regardless of whether the	5575
person ~~elects to be~~registers as a calendar year taxpayer under	5576
section 5751.05 of the Revised Code.	5577

(2) The amount of the minimum tax for a person subject to	5578
division (B)(1) of this section shall be reduced to seventy-five	5579
dollars if the registration is timely filed after the first day of	5580
May and before the first day of January of the following calendar	5581
year.	5582

Sec. 5751.08. (A) An application for refund to the taxpayer	5583
of the amount of taxes imposed under this chapter that are	5584
overpaid, paid illegally or erroneously, or paid on any illegal or	5585
erroneous assessment shall be filed by the reporting person with	5586
the tax commissioner, on the form prescribed by the commissioner,	5587
within four years after the date of the illegal or erroneous	5588
payment of the tax, or within any additional period allowed under	5589
division (F) of section 5751.09 of the Revised Code. The applicant	5590
shall provide the amount of the requested refund along with the	5591
claimed reasons for, and documentation to support, the issuance of	5592
a refund.	5593

(B) On the filing of the refund application, the tax	5594
commissioner shall determine the amount of refund to which the	5595
applicant is entitled. If the amount is not less than that	5596
claimed, the commissioner shall certify the amount to the director	5597
of budget and management and treasurer of state for payment from	5598
the tax refund fund created under section 5703.052 of the Revised	5599
Code. If the amount is less than that claimed, the commissioner	5600
shall proceed in accordance with section 5703.70 of the Revised	5601
Code.	5602

(C) ~~Interest~~Except as provided in division (F) of this	5603
section, interest on a refund applied for under this section,	5604
computed at the rate provided for in section 5703.47 of the	5605
Revised Code, shall be allowed from the later of the date the tax	5606
was paid or when the tax payment was due.	5607

(D) A calendar quarter taxpayer with more than one million	5608
dollars in taxable gross receipts in a calendar year other than	5609
calendar year 2005 and that is not able to exclude one million	5610
dollars in taxable gross receipts because of the operation of the	5611
taxpayer's business in that calendar year may file for a refund	5612
under this section to obtain the full exclusion of one million	5613
dollars in taxable gross receipts for that calendar year.	5614

(E) Except as provided in section 5751.081 of the Revised	5615
Code, the tax commissioner may, with the consent of the taxpayer,	5616
provide for the crediting against tax due for a tax year the	5617
amount of any refund due the taxpayer under this chapter for a	5618
preceding tax year.	5619

(F) If a taxpayer claims a refundable credit against the tax	5620
imposed under section 5751.02 of the Revised Code, any payment	5621
that is refunded to the taxpayer as a result of the allowance of	5622
the credit shall not be considered an illegal, erroneous, or	5623
excessive payment for purposes of division (A) of this section. No	5624
interest shall be allowed on an amount refunded to a taxpayer to	5625
the extent that the refund results from the allowance of a	5626
refundable credit.	5627

Sec. 5751.12. The tax commissioner may prescribe	5628
requirements for the keeping of records and other pertinent	5629
documents, the filing of copies of federal income tax returns and	5630
determinations, and computations reconciling federal income tax	5631
returns with the returns and reports required by section ~~5751.05~~	5632
5751.051 of the Revised Code. The commissioner may require any	5633
person, by rule or notice served on that person, to keep those	5634
records that the commissioner considers necessary to show whether,	5635
and the extent to which, a person is subject to this chapter.	5636
Those records and other documents shall be open during business	5637
hours to the inspection of the commissioner, and shall be	5638
preserved for a period of four years unless the commissioner, in	5639
writing, consents to their destruction within that period, or by	5640
order requires that they be kept longer. If such records are	5641
normally kept by the person electronically, the person shall	5642
provide such records to the commissioner electronically at the	5643
commissioner's request.	5644

Any information required by the ~~tax~~ commissioner under this	5645
chapter is confidential as provided for in section 5703.21 of the	5646
Revised Code. However, the commissioner shall make public an	5647
electronic list of all actively registered persons required to	5648
remit the tax under this chapter, including legal names, trade	5649
names, addresses, and account numbers. In addition, such list	5650
shall include all persons that cancelled their registration at any	5651
time during the preceding four calendar years, including the	5652
effective date of the ~~registration was cancelled~~cancellation.	5653

Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of	5654
the Revised Code:	5655

(1) "School district," "joint vocational school district,"	5656
"local taxing unit," "recognized valuation," "fixed-rate levy,"	5657
and "fixed-sum levy" have the same meanings as used in section	5658
5727.84 of the Revised Code.	5659

(2) "State education aid" for a school district means the	5660
following:	5661

(a) For fiscal years prior to fiscal year 2010, the sum of	5662
state aid amounts computed for the district under the following	5663
provisions, as they existed for the applicable fiscal year:	5664
division (A) of section 3317.022 of the Revised Code, including	5665
the amounts calculated under sections 3317.029 and 3317.0217 of	5666
the Revised Code; divisions (C)(1), (C)(4), (D), (E), and (F) of	5667
section 3317.022; divisions (B), (C), and (D) of section 3317.023;	5668
divisions (L) and (N) of section 3317.024; section 3317.0216; and	5669
any unit payments for gifted student services paid under sections	5670
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,	5671
for fiscal years 2008 and 2009, the amount computed for the	5672
district under Section 269.20.80 of H.B. 119 of the 127th general	5673
assembly and as that section subsequently may be amended shall be	5674
substituted for the amount computed under division (D) of section	5675
3317.022 of the Revised Code, and the amount computed under	5676
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	5677
that section subsequently may be amended shall be included.	5678

(b) For fiscal years 2010 and 2011, the sum of the amounts	5679
computed under former sections 3306.052, 3306.12, 3306.13,	5680
3306.19, 3306.191, and 3306.192 of the Revised Code;	5681

(c) For fiscal years 2012 and 2013, the amount paid in	5682
accordance with ~~the section~~Section 267.30.50 of H.B. 153 of the	5683
129th general assembly entitled "FUNDING FOR CITY, EXEMPTED	5684
VILLAGE, AND LOCAL SCHOOL DISTRICTS."	5685

(3) "State education aid" for a joint vocational school	5686
district means the following:	5687

(a) For fiscal years prior to fiscal year 2010, the sum of	5688
the state aid computed for the district under division (N) of	5689
section 3317.024 and section 3317.16 of the Revised Code, except	5690
that, for fiscal years 2008 and 2009, the amount computed under	5691
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	5692
that section subsequently may be amended shall be included.	5693

(b) For fiscal years 2010 and 2011, the amount paid in	5694
accordance with ~~the section~~Section 265.30.50 of H.B. 1 of the	5695
128th general assembly entitled "FUNDING FOR JOINT VOCATIONAL	5696
SCHOOL DISTRICTS."	5697

(c) For fiscal years 2012 and 2013, the amount paid in	5698
accordance with ~~the section~~Section 267.30.60 of H.B. 153 of the	5699
129th general assembly entitled "FUNDING FOR JOINT VOCATIONAL	5700
SCHOOL DISTRICTS."	5701

(4) "State education aid offset" means the amount determined	5702
for each school district or joint vocational school district under	5703
division (A)(1) of section 5751.21 of the Revised Code.	5704

(5) "Machinery and equipment property tax value loss" means	5705
the amount determined under division (C)(1) of this section.	5706

(6) "Inventory property tax value loss" means the amount	5707
determined under division (C)(2) of this section.	5708

(7) "Furniture and fixtures property tax value loss" means	5709
the amount determined under division (C)(3) of this section.	5710

(8) "Machinery and equipment fixed-rate levy loss" means the	5711
amount determined under division (D)(1) of this section.	5712

(9) "Inventory fixed-rate levy loss" means the amount	5713
determined under division (D)(2) of this section.	5714

(10) "Furniture and fixtures fixed-rate levy loss" means the	5715
amount determined under division (D)(3) of this section.	5716

(11) "Total fixed-rate levy loss" means the sum of the	5717
machinery and equipment fixed-rate levy loss, the inventory	5718
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	5719
loss, and the telephone company fixed-rate levy loss.	5720

(12) "Fixed-sum levy loss" means the amount determined under	5721
division (E) of this section.	5722

(13) "Machinery and equipment" means personal property	5723
subject to the assessment rate specified in division (F) of	5724
section 5711.22 of the Revised Code.	5725

(14) "Inventory" means personal property subject to the	5726
assessment rate specified in division (E) of section 5711.22 of	5727
the Revised Code.	5728

(15) "Furniture and fixtures" means personal property subject	5729
to the assessment rate specified in division (G) of section	5730
5711.22 of the Revised Code.	5731

(16) "Qualifying levies" are levies in effect for tax year	5732
2004 or applicable to tax year 2005 or approved at an election	5733
conducted before September 1, 2005. For the purpose of determining	5734
the rate of a qualifying levy authorized by section 5705.212 or	5735
5705.213 of the Revised Code, the rate shall be the rate that	5736
would be in effect for tax year 2010.	5737

(17) "Telephone property" means tangible personal property of	5738
a telephone, telegraph, or interexchange telecommunications	5739
company subject to an assessment rate specified in section	5740
5727.111 of the Revised Code in tax year 2004.	5741

(18) "Telephone property tax value loss" means the amount	5742
determined under division (C)(4) of this section.	5743

(19) "Telephone property fixed-rate levy loss" means the	5744
amount determined under division (D)(4) of this section.	5745

(20) "Taxes charged and payable" means taxes charged and	5746
payable after the reduction required by section 319.301 of the	5747
Revised Code but before the reductions required by sections	5748
319.302 and 323.152 of the Revised Code.	5749

(21) "Median estate tax collections" means, in the case of a	5750
municipal corporation to which revenue from the taxes levied in	5751
Chapter 5731. of the Revised Code was distributed in each of	5752
calendar years 2006, 2007, 2008, and 2009, the median of those	5753
distributions. In the case of a municipal corporation to which no	5754
distributions were made in one or more of those years, "median	5755
estate tax collections" means zero.	5756

(22) "Total resources," in the case of a school district,	5757
means the sum of the amounts in divisions (A)(22)(a) to (h) of	5758
this section less any reduction required under division (A)(32) or	5759
(33) of this section.	5760

(a) The state education aid for fiscal year 2010;

5761

(b) The sum of the payments received by the school district	5762
in fiscal year 2010 for current expense levy losses pursuant to	5763
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of	5764
section 5751.21 of the Revised Code, excluding the portion of such	5765
payments attributable to levies for joint vocational school	5766
district purposes;	5767

(c) The sum of fixed-sum levy loss payments received by the	5768
school district in fiscal year 2010 pursuant to division (E)(1) of	5769
section 5727.85 and division (E)(1) of section 5751.21 of the	5770
Revised Code for fixed-sum levies ~~imposed~~charged and payable for	5771
a purpose other than paying debt charges;	5772

(d) Fifty per cent of the school district's taxes charged and	5773
payable against all property on the tax list of real and public	5774
utility property for current expense purposes for tax year 2008,	5775
including taxes charged and payable from emergency levies ~~imposed~~	5776
charged and payable under section 5709.194 of the Revised Code and	5777
excluding taxes levied for joint vocational school district	5778
purposes;	5779

(e) Fifty per cent of the school district's taxes charged and	5780
payable against all property on the tax list of real and public	5781
utility property for current expenses for tax year 2009, including	5782
taxes charged and payable from emergency levies and excluding	5783
taxes levied for joint vocational school district purposes;	5784

(f) The school district's taxes charged and payable against	5785
all property on the general tax list of personal property for	5786
current expenses for tax year 2009, including taxes charged and	5787
payable from emergency levies;	5788

(g) The amount certified for fiscal year 2010 under division	5789
(A)(2) of section 3317.08 of the Revised Code;	5790

(h) Distributions received during calendar year 2009 from	5791
taxes levied under section 718.09 of the Revised Code.	5792

(23) "Total resources," in the case of a joint vocational	5793
school district, means the sum of amounts in divisions (A)(23)(a)	5794
to (g) of this section less any reduction required under division	5795
(A)(32) of this section.	5796

(a) The state education aid for fiscal year 2010;

5797

(b) The sum of the payments received by the joint vocational	5798
school district in fiscal year 2010 for current expense levy	5799
losses pursuant to division (C)(2) of section 5727.85 and	5800
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;	5801

(c) Fifty per cent of the joint vocational school district's	5802
taxes charged and payable against all property on the tax list of	5803
real and public utility property for current expense purposes for	5804
tax year 2008;	5805

(d) Fifty per cent of the joint vocational school district's	5806
taxes charged and payable against all property on the tax list of	5807
real and public utility property for current expenses for tax year	5808
2009;	5809

(e) Fifty per cent of a city, local, or exempted village	5810
school district's taxes charged and payable against all property	5811
on the tax list of real and public utility property for current	5812
expenses of the joint vocational school district for tax year	5813
2008;	5814

(f) Fifty per cent of a city, local, or exempted village	5815
school district's taxes charged and payable against all property	5816
on the tax list of real and public utility property for current	5817
expenses of the joint vocational school district for tax year	5818
2009;	5819

(g) The joint vocational school district's taxes charged and	5820
payable against all property on the general tax list of personal	5821
property for current expenses for tax year 2009.	5822

(24) "Total resources," in the case of county mental health	5823
and disability related functions, means the sum of the amounts in	5824
divisions (A)(24)(a) and (b) of this section less any reduction	5825
required under division (A)(32) of this section.	5826

(a) The sum of the payments received by the county for mental	5827
health and developmental disability related functions in calendar	5828
year 2010 under division (A)(1) of section 5727.86 and ~~division~~	5829
divisions (A)(1) and (2) of section 5751.22 of the Revised Code as	5830
they existed at that time;	5831

(b) With respect to taxes levied by the county for mental	5832
health and developmental disability related purposes, the taxes	5833
charged and payable for such purposes against all property on the	5834
tax list of real and public utility property for tax year 2009.	5835

(25) "Total resources," in the case of county senior services	5836
related functions, means the sum of the amounts in divisions	5837
(A)(25)(a) and (b) of this section less any reduction required	5838
under division (A)(32) of this section.	5839

(a) The sum of the payments received by the county for senior	5840
services related functions in calendar year 2010 under division	5841
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	5842
5751.22 of the Revised Code as they existed at that time;	5843

(b) With respect to taxes levied by the county for senior	5844
services related purposes, the taxes charged and payable for such	5845
purposes against all property on the tax list of real and public	5846
utility property for tax year 2009.	5847

(26) "Total resources," in the case of county children's	5848
services related functions, means the sum of the amounts in	5849
divisions (A)(26)(a) and (b) of this section less any reduction	5850
required under division (A)(32) of this section.	5851

(a) The sum of the payments received by the county for	5852
children's services related functions in calendar year 2010 under	5853
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of	5854
section 5751.22 of the Revised Code as they existed at that time;	5855

(b) With respect to taxes levied by the county for children's	5856
services related purposes, the taxes charged and payable for such	5857
purposes against all property on the tax list of real and public	5858
utility property for tax year 2009.	5859

(27) "Total resources," in the case of county public health	5860
related functions, means the sum of the amounts in divisions	5861
(A)(27)(a) and (b) of this section less any reduction required	5862
under division (A)(32) of this section.	5863

(a) The sum of the payments received by the county for public	5864
health related functions in calendar year 2010 under division	5865
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	5866
5751.22 of the Revised Code as they existed at that time;	5867

(b) With respect to taxes levied by the county for public	5868
health related purposes, the taxes charged and payable for such	5869
purposes against all property on the tax list of real and public	5870
utility property for tax year 2009.	5871

(28) "Total resources," in the case of all county functions	5872
not included in divisions (A)(24) to (27) of this section, means	5873
the sum of the amounts in divisions (A)(28)(a) to (d) of this	5874
section less any reduction required under division (A)(32) or (33)	5875
of this section.	5876

(a) The sum of the payments received by the county for all	5877
other purposes in calendar year 2010 under division (A)(1) of	5878
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of	5879
the Revised Code as they existed at that time;	5880

(b) The county's percentage share of county undivided local	5881
government fund allocations as certified to the tax commissioner	5882
for calendar year 2010 by the county auditor under division (J) of	5883
section 5747.51 of the Revised Code or division (F) of section	5884
5747.53 of the Revised Code multiplied by the total amount	5885
actually distributed in calendar year 2010 from the county	5886
undivided local government fund;	5887

(c) With respect to taxes levied by the county for all other	5888
purposes, the taxes charged and payable for such purposes against	5889
all property on the tax list of real and public utility property	5890
for tax year 2009, excluding taxes charged and payable for the	5891
purpose of paying debt charges;	5892

(d) The sum of the amounts distributed to the county in	5893
calendar year 2010 for the taxes levied pursuant to sections	5894
5739.021 and 5741.021 of the Revised Code.	5895

(29) "Total resources," in the case of a municipal	5896
corporation, means the sum of the amounts in divisions (A)(29)(a)	5897
to (g) of this section less any reduction required under division	5898
(A)(32) or (33) of this section.	5899

(a) The sum of the payments received by the municipal	5900
corporation in calendar year 2010 for current expense levy losses	5901
under division (A)(1) of section 5727.86 and divisions (A)(1) and	5902
(2) of section 5751.22 of the Revised Code as they existed at that	5903
time;	5904

(b) The municipal corporation's percentage share of county	5905
undivided local government fund allocations as certified to the	5906
tax commissioner for calendar year 2010 by the county auditor	5907
under division (J) of section 5747.51 of the Revised Code or	5908
division (F) of section 5747.53 of the Revised Code multiplied by	5909
the total amount actually distributed in calendar year 2010 from	5910
the county undivided local government fund;	5911

(c) The sum of the amounts distributed to the municipal	5912
corporation in calendar year 2010 pursuant to section 5747.50 of	5913
the Revised Code;	5914

(d) With respect to taxes levied by the municipal	5915
corporation, the taxes charged and payable against all property on	5916
the tax list of real and public utility property for current	5917
expenses, defined in division (A)~~(33)~~(35) of this section, for tax	5918
year 2009;	5919

(e) The amount of admissions tax collected by the municipal	5920
corporation in calendar year 2008, or if such information has not	5921
yet been reported to the tax commissioner, in the most recent year	5922
before 2008 for which the municipal corporation has reported data	5923
to the commissioner;	5924

(f) The amount of income taxes collected by the municipal	5925
corporation in calendar year 2008, or if such information has not	5926
yet been reported to the tax commissioner, in the most recent year	5927
before 2008 for which the municipal corporation has reported data	5928
to the commissioner;	5929

(g) The municipal corporation's median estate tax	5930
collections.	5931

(30) "Total resources," in the case of a township, means the	5932
sum of the amounts in divisions (A)(30)(a) to (c) of this section	5933
less any reduction required under division (A)(32) or (33) of this	5934
section.	5935

(a) The sum of the payments received by the township in	5936
calendar year 2010 pursuant to division (A)(1) of section 5727.86	5937
of the Revised Code and divisions (A)(1) and (2) of section	5938
5751.22 of the Revised Code as they existed at that time,	5939
excluding payments received for debt purposes;	5940

(b) The township's percentage share of county undivided local	5941
government fund allocations as certified to the tax commissioner	5942
for calendar year 2010 by the county auditor under division (J) of	5943
section 5747.51 of the Revised Code or division (F) of section	5944
5747.53 of the Revised Code multiplied by the total amount	5945
actually distributed in calendar year 2010 from the county	5946
undivided local government fund;	5947

(c) With respect to taxes levied by the township, the taxes	5948
charged and payable against all property on the tax list of real	5949
and public utility property for tax year 2009 excluding taxes	5950
charged and payable for the purpose of paying debt charges.	5951

(31) "Total resources," in the case of a local taxing unit	5952
that is not a county, municipal corporation, or township, means	5953
the sum of the amounts in divisions (A)(31)(a) to (e) of this	5954
section less any reduction required under division (A)(32) of this	5955
section.	5956

(a) The sum of the payments received by the local taxing unit	5957
in calendar year 2010 pursuant to division (A)(1) of section	5958
5727.86 of the Revised Code and divisions (A)(1) and (2) of	5959
section 5751.22 of the Revised Code as they existed at that time;	5960

(b) The local taxing unit's percentage share of county	5961
undivided local government fund allocations as certified to the	5962
tax commissioner for calendar year 2010 by the county auditor	5963
under division (J) of section 5747.51 of the Revised Code or	5964
division (F) of section 5747.53 of the Revised Code multiplied by	5965
the total amount actually distributed in calendar year 2010 from	5966
the county undivided local government fund;	5967

(c) With respect to taxes levied by the local taxing unit,	5968
the taxes charged and payable against all property on the tax list	5969
of real and public utility property for tax year 2009 excluding	5970
taxes charged and payable for the purpose of paying debt charges;	5971

(d) The amount received from the tax commissioner during	5972
calendar year 2010 for sales or use taxes authorized under	5973
sections 5739.023 and 5741.022 of the Revised Code;	5974

(e) For institutions of higher education receiving tax	5975
revenue from a local levy, as identified in section 3358.02 of the	5976
Revised Code, the final state share of instruction allocation for	5977
fiscal year 2010 as calculated by the board of regents and	5978
reported to the state controlling board.	5979

(32) If a fixed-rate levy that is a qualifying levy is not	5980
~~imposed~~charged and payable in any year after tax year 2010,	5981
"total resources" used to compute payments to be made under	5982
division (C)(12) of section 5751.21 or division (A)(1)(b) or (c)	5983
of section 5751.22 of the Revised Code in the tax years following	5984
the last year the levy is ~~imposed~~charged and payable shall be	5985
reduced ~~by the amount of~~to the extent that the payments are	5986
attributable to the fixed-rate levy loss of that levy as would be	5987
computed under division (C)(2) of section 5727.85, division (A)(1)	5988
of section 5727.85, divisions (C)(8) and (9) of section 5751.21,	5989
or division (A)(1) of section 5751.22 of the Revised Code.	5990

(33) In the case of a county, municipal corporation, school	5991
district, or township with fixed-rate levy losses attributable to	5992
a tax levied under section 5705.23 of the Revised Code, "total	5993
resources" used to compute payments to be made under division	5994
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,	5995
division (C)(12) of section 5751.21, or division (A)(1)(c) of	5996
section 5751.22 of the Revised Code shall be reduced by the	5997
amounts described in divisions (A)(34)(a) to (c) of this section	5998
to the extent that those amounts were included in calculating the	5999
"total resources" of the school district or local taxing unit	6000
under division (A)(22), (28), (29), or (30) of this section.	6001

(34) "Total library resources," in the case of a county,	6002
municipal corporation, school district, or township public library	6003
that receives the proceeds of a tax levied under section 5705.23	6004
of the Revised Code, means the sum of the amounts in divisions	6005
(A)(34)(a) to (c) of this section less any reduction required	6006
under division (A)(32) of this section.	6007

(a) The sum of the payments received by the county, municipal	6008
corporation, school district, or township public library in	6009
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the	6010
Revised Code, as they existed at that time, for fixed-rate levy	6011
losses attributable to a tax levied under section 5705.23 of the	6012
Revised Code for the benefit of the public library;	6013

(b) The public library's percentage share of county undivided	6014
local government fund allocations as certified to the tax	6015
commissioner for calendar year 2010 by the county auditor under	6016
division (J) of section 5747.51 of the Revised Code or division	6017
(F) of section 5747.53 of the Revised Code multiplied by the total	6018
amount actually distributed in calendar year 2010 from the county	6019
undivided local government fund;	6020

(c) With respect to a tax levied pursuant to section 5705.23	6021
of the Revised Code for the benefit of the public library, the	6022
amount of such tax that is charged and payable against all	6023
property on the tax list of real and public utility property for	6024
tax year 2009 excluding any tax that is charged and payable for	6025
the purpose of paying debt charges.	6026

(35) "Municipal current expense property tax levies" means	6027
all property tax levies of a municipality, except those with the	6028
following levy names: airport resurfacing; bond or any levy name	6029
including the word "bond"; capital improvement or any levy name	6030
including the word "capital"; debt or any levy name including the	6031
word "debt"; equipment or any levy name including the word	6032
"equipment," unless the levy is for combined operating and	6033
equipment; employee termination fund; fire pension or any levy	6034
containing the word "pension," including police pensions;	6035
fireman's fund or any practically similar name; sinking fund; road	6036
improvements or any levy containing the word "road"; fire truck or	6037
apparatus; flood or any levy containing the word "flood";	6038
conservancy district; county health; note retirement; sewage, or	6039
any levy containing the words "sewage" or "sewer"; park	6040
improvement; parkland acquisition; storm drain; street or any levy	6041
name containing the word "street"; lighting, or any levy name	6042
containing the word "lighting"; and water.	6043

~~(34)~~(36) "Current expense TPP allocation" means, in the case	6044
of a school district or joint vocational school district, the sum	6045
of the payments received by the school district in fiscal year	6046
2011 pursuant to divisions (C)(10) and (11) of section 5751.21 of	6047
the Revised Code to the extent paid for current expense levies. In	6048
the case of a municipal corporation, "current expense TPP	6049
allocation" means the sum of the payments received by the	6050
municipal corporation in calendar year 2010 pursuant to divisions	6051
(A)(1) and (2) of section 5751.22 of the Revised Code to the	6052
extent paid for municipal current expense property tax levies as	6053
defined in division (A)~~(33)~~(35) of this section, excluding any	6054
such payments received for current expense levy losses	6055
attributable to a tax levied under section 5705.23 of the Revised	6056
Code. If a fixed-rate levy that is a qualifying levy is not	6057
~~imposed~~charged and payable in any year after tax year 2010,	6058
"current expense TPP allocation" used to compute payments to be	6059
made under division (C)(12) of section 5751.21 or division	6060
(A)(1)(b) or (c) of section 5751.22 of the Revised Code in the tax	6061
years following the last year the levy is ~~imposed~~charged and	6062
payable shall be reduced ~~by the amount of~~to the extent that the	6063
payments are attributable to the fixed-rate levy loss of that levy	6064
as would be computed under divisions (C)(10) and (11) of section	6065
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.	6066

~~(35)~~(37) "TPP allocation" means the sum of payments received	6067
by a local taxing unit in calendar year 2010 pursuant to divisions	6068
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding	6069
any such payments received for fixed-rate levy losses attributable	6070
to a tax levied under section 5705.23 of the Revised Code. If a	6071
fixed-rate levy that is a qualifying levy is not ~~imposed~~charged	6072
and payable in any year after tax year 2010, "TPP allocation" used	6073
to compute payments to be made under division (A)(1)(b) or (c) of	6074
section 5751.22 of the Revised Code in the tax years following the	6075
last year the levy is ~~imposed~~charged and payable shall be reduced	6076
~~by the amount of payment~~to the extent that the payments are	6077
attributable to the fixed-rate levy loss of that levy as would be	6078
computed under division (A)(1) of that section.	6079

~~(36)~~(38) "Total TPP allocation" means, in the case of a	6080
school district or joint vocational school district, the sum of	6081
the amounts received in fiscal year 2011 pursuant to divisions	6082
(C)(10) and (11) and (D) of section 5751.21 of the Revised Code.	6083
In the case of a local taxing unit, "total TPP allocation" means	6084
the sum of payments received by the unit in calendar year 2010	6085
pursuant to divisions (A)(1), (2), and (3) of section 5751.22 of	6086
the Revised Code. If a fixed-rate levy that is a qualifying levy	6087
is not ~~imposed~~charged and payable in any year after tax year	6088
2010, "total TPP allocation" used to compute payments to be made	6089
under division (C)(12) of section 5751.21 or division (A)(1)(b) or	6090
(c) of section 5751.22 of the Revised Code in the tax years	6091
following the last year the levy is ~~imposed~~charged and payable	6092
shall be reduced ~~by the amount of~~to the extent that the payments	6093
are attributable to the fixed-rate levy loss of that levy as would	6094
be computed under divisions (C)(10) and (11) of section 5751.21 or	6095
division (A)(1) of section 5751.22 of the Revised Code.	6096

~~(37)~~(39) "Non-current expense TPP allocation" means the	6097
difference of total TPP allocation minus the sum of current	6098
expense TPP allocation and the portion of total TPP allocation	6099
constituting reimbursement for debt levies, pursuant to division	6100
(D) of section 5751.21 of the Revised Code in the case of a school	6101
district or joint vocational school district and pursuant to	6102
division (A)(3) of section 5751.22 of the Revised Code in the case	6103
of a municipal corporation.	6104

~~(38)~~(40) "TPP allocation for library purposes" means the sum	6105
of payments received by a county, municipal corporation, school	6106
district, or township public library in calendar year 2010	6107
pursuant to section 5751.22 of the Revised Code for fixed-rate	6108
levy losses attributable to a tax levied under section 5705.23 of	6109
the Revised Code. If a fixed-rate levy authorized under section	6110
5705.23 of the Revised Code that is a qualifying levy is not	6111
charged and payable in any year after tax year 2010, "TPP	6112
allocation for library purposes" used to compute payments to be	6113
made under division (A)(1)(d) of section 5751.22 of the Revised	6114
Code in the tax years following the last year the levy is charged	6115
and payable shall be reduced to the extent that the payments are	6116
attributable to the fixed-rate levy loss of that levy as would be	6117
computed under division (A)(1) of section 5751.22 of the Revised	6118
Code.	6119

(41) "Threshold per cent" means, in the case of a school	6120
district or joint vocational school district, two per cent for	6121
fiscal year 2012 and four per cent for fiscal years 2013 and	6122
thereafter. In the case of a local taxing unit or public library	6123
that receives the proceeds of a tax levied under section 5705.23	6124
of the Revised Code, "threshold per cent" means two per cent for	6125
tax year 2011, four per cent for tax year 2012, and six per cent	6126
for tax years 2013 and thereafter.	6127

(B) The commercial activities tax receipts fund is hereby	6128
created in the state treasury and shall consist of money arising	6129
from the tax imposed under this chapter. Eighty-five	6130
one-hundredths of one per cent of the money credited to that fund	6131
shall be credited to the ~~tax reform system implementation~~revenue	6132
enhancement fund~~, which is hereby created in the state treasury,~~	6133
and shall be used to defray the costs incurred by the department	6134
of taxation in administering the tax imposed by this chapter and	6135
in implementing tax reform measures. The remainder in the	6136
commercial activities tax receipts fund shall be credited for each	6137
fiscal year in the following percentages to the general revenue	6138
fund, to the school district tangible property tax replacement	6139
fund, which is hereby created in the state treasury for the	6140
purpose of making the payments described in section 5751.21 of the	6141
Revised Code, and to the local government tangible property tax	6142
replacement fund, which is hereby created in the state treasury	6143
for the purpose of making the payments described in section	6144
5751.22 of the Revised Code, in the following percentages:	6145

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund	6146
2006	67.7%	22.6%	9.7%	6147
2007	0%	70.0%	30.0%	6148
2008	0%	70.0%	30.0%	6149
2009	0%	70.0%	30.0%	6150
2010	0%	70.0%	30.0%	6151
2011	0%	70.0%	30.0%	6152
2012	25.0%	52.5%	22.5%	6153
2013 and thereafter	50.0%	35.0%	15.0%	6154

(C) Not later than September 15, 2005, the tax commissioner	6155
shall determine for each school district, joint vocational school	6156
district, and local taxing unit its machinery and equipment,	6157
inventory property, furniture and fixtures property, and telephone	6158
property tax value losses, which are the applicable amounts	6159
described in divisions (C)(1), (2), (3), and (4) of this section,	6160
except as provided in division (C)(5) of this section:	6161

(1) Machinery and equipment property tax value loss is the	6162
taxable value of machinery and equipment property as reported by	6163
taxpayers for tax year 2004 multiplied by:	6164

(a) For tax year 2006, thirty-three and eight-tenths per	6165
cent;	6166

(b) For tax year 2007, sixty-one and three-tenths per cent;

6167

6168

(d) For tax year 2009 and thereafter, one hundred per cent.

6169

(2) Inventory property tax value loss is the taxable value of	6170
inventory property as reported by taxpayers for tax year 2004	6171
multiplied by:	6172

(a) For tax year 2006, a fraction, the numerator of which is	6173
five and three-fourths and the denominator of which is	6174
twenty-three;	6175

(b) For tax year 2007, a fraction, the numerator of which is	6176
nine and one-half and the denominator of which is twenty-three;	6177

(c) For tax year 2008, a fraction, the numerator of which is	6178
thirteen and one-fourth and the denominator of which is	6179
twenty-three;	6180

(d) For tax year 2009 and thereafter a fraction, the	6181
numerator of which is seventeen and the denominator of which is	6182
twenty-three.	6183

(3) Furniture and fixtures property tax value loss is the	6184
taxable value of furniture and fixture property as reported by	6185
taxpayers for tax year 2004 multiplied by:	6186

(a) For tax year 2006, twenty-five per cent;

6187

(b) For tax year 2007, fifty per cent;

6188

6189

(d) For tax year 2009 and thereafter, one hundred per cent.

6190

The taxable value of property reported by taxpayers used in	6191
divisions (C)(1), (2), and (3) of this section shall be such	6192
values as determined to be final by the tax commissioner as of	6193
August 31, 2005. Such determinations shall be final except for any	6194
correction of a clerical error that was made prior to August 31,	6195
2005, by the tax commissioner.	6196

(4) Telephone property tax value loss is the taxable value of	6197
telephone property as taxpayers would have reported that property	6198
for tax year 2004 if the assessment rate for all telephone	6199
property for that year were twenty-five per cent, multiplied by:	6200

(a) For tax year 2006, zero per cent;

6201

(b) For tax year 2007, zero per cent;

6202

6203

(d) For tax year 2009, sixty per cent;

6204

(e) For tax year 2010, eighty per cent;

6205

(f) For tax year 2011 and thereafter, one hundred per cent.

6206

(5) Division (C)(5) of this section applies to any school	6207
district, joint vocational school district, or local taxing unit	6208
in a county in which is located a facility currently or formerly	6209
devoted to the enrichment or commercialization of uranium or	6210
uranium products, and for which the total taxable value of	6211
property listed on the general tax list of personal property for	6212
any tax year from tax year 2001 to tax year 2004 was fifty per	6213
cent or less of the taxable value of such property listed on the	6214
general tax list of personal property for the next preceding tax	6215
year.	6216

In computing the fixed-rate levy losses under divisions	6217
(D)(1), (2), and (3) of this section for any school district,	6218
joint vocational school district, or local taxing unit to which	6219
division (C)(5) of this section applies, the taxable value of such	6220
property as listed on the general tax list of personal property	6221
for tax year 2000 shall be substituted for the taxable value of	6222
such property as reported by taxpayers for tax year 2004, in the	6223
taxing district containing the uranium facility, if the taxable	6224
value listed for tax year 2000 is greater than the taxable value	6225
reported by taxpayers for tax year 2004. For the purpose of making	6226
the computations under divisions (D)(1), (2), and (3) of this	6227
section, the tax year 2000 valuation is to be allocated to	6228
machinery and equipment, inventory, and furniture and fixtures	6229
property in the same proportions as the tax year 2004 values. For	6230
the purpose of the calculations in division (A) of section 5751.21	6231
of the Revised Code, the tax year 2004 taxable values shall be	6232
used.	6233

To facilitate the calculations required under division (C) of	6234
this section, the county auditor, upon request from the tax	6235
commissioner, shall provide by August 1, 2005, the values of	6236
machinery and equipment, inventory, and furniture and fixtures for	6237
all single-county personal property taxpayers for tax year 2004.	6238

(D) Not later than September 15, 2005, the tax commissioner	6239
shall determine for each tax year from 2006 through 2009 for each	6240
school district, joint vocational school district, and local	6241
taxing unit its machinery and equipment, inventory, and furniture	6242
and fixtures fixed-rate levy losses, and for each tax year from	6243
2006 through 2011 its telephone property fixed-rate levy loss.	6244
Except as provided in division (F) of this section, such losses	6245
are the applicable amounts described in divisions (D)(1), (2),	6246
(3), and (4) of this section:	6247

(1) The machinery and equipment fixed-rate levy loss is the	6248
machinery and equipment property tax value loss multiplied by the	6249
sum of the tax rates of fixed-rate qualifying levies.	6250

(2) The inventory fixed-rate loss is the inventory property	6251
tax value loss multiplied by the sum of the tax rates of	6252
fixed-rate qualifying levies.	6253

(3) The furniture and fixtures fixed-rate levy loss is the	6254
furniture and fixture property tax value loss multiplied by the	6255
sum of the tax rates of fixed-rate qualifying levies.	6256

(4) The telephone property fixed-rate levy loss is the	6257
telephone property tax value loss multiplied by the sum of the tax	6258
rates of fixed-rate qualifying levies.	6259

(E) Not later than September 15, 2005, the tax commissioner	6260
shall determine for each school district, joint vocational school	6261
district, and local taxing unit its fixed-sum levy loss. The	6262
fixed-sum levy loss is the amount obtained by subtracting the	6263
amount described in division (E)(2) of this section from the	6264
amount described in division (E)(1) of this section:	6265

(1) The sum of the machinery and equipment property tax value	6266
loss, the inventory property tax value loss, and the furniture and	6267
fixtures property tax value loss, and, for 2008 through 2010, the	6268
telephone property tax value loss of the district or unit	6269
multiplied by the sum of the fixed-sum tax rates of qualifying	6270
levies. For 2006 through 2010, this computation shall include all	6271
qualifying levies remaining in effect for the current tax year and	6272
any school district levies ~~imposed~~charged and payable under	6273
section 5705.194 or 5705.213 of the Revised Code that are	6274
qualifying levies not remaining in effect for the current year.	6275
For 2011 through 2017 in the case of school district levies	6276
~~imposed~~charged and payable under section 5705.194 or 5705.213 of	6277
the Revised Code and for all years after 2010 in the case of other	6278
fixed-sum levies, this computation shall include only qualifying	6279
levies remaining in effect for the current year. For purposes of	6280
this computation, a qualifying school district levy ~~imposed~~	6281
charged and payable under section 5705.194 or 5705.213 of the	6282
Revised Code remains in effect in a year after 2010 only if, for	6283
that year, the board of education levies a school district levy	6284
~~imposed~~charged and payable under section 5705.194, 5705.199,	6285
5705.213, or 5705.219 of the Revised Code for an annual sum at	6286
least equal to the annual sum levied by the board in tax year 2004	6287
less the amount of the payment certified under this division for	6288
2006.	6289

(2) The total taxable value in tax year 2004 less the sum of	6290
the machinery and equipment, inventory, furniture and fixtures,	6291
and telephone property tax value losses in each school district,	6292
joint vocational school district, and local taxing unit multiplied	6293
by one-half of one mill per dollar.	6294

(3) For the calculations in divisions (E)(1) and (2) of this	6295
section, the tax value losses are those that would be calculated	6296
for tax year 2009 under divisions (C)(1), (2), and (3) of this	6297
section and for tax year 2011 under division (C)(4) of this	6298
section.	6299

(4) To facilitate the calculation under divisions (D) and (E)	6300
of this section, not later than September 1, 2005, any school	6301
district, joint vocational school district, or local taxing unit	6302
that has a qualifying levy that was approved at an election	6303
conducted during 2005 before September 1, 2005, shall certify to	6304
the tax commissioner a copy of the county auditor's certificate of	6305
estimated property tax millage for such levy as required under	6306
division (B) of section 5705.03 of the Revised Code, which is the	6307
rate that shall be used in the calculations under such divisions.	6308

If the amount determined under division (E) of this section	6309
for any school district, joint vocational school district, or	6310
local taxing unit is greater than zero, that amount shall equal	6311
the reimbursement to be paid pursuant to division (E) of section	6312
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	6313
and the one-half of one mill that is subtracted under division	6314
(E)(2) of this section shall be apportioned among all contributing	6315
fixed-sum levies in the proportion that each levy bears to the sum	6316
of all fixed-sum levies within each school district, joint	6317
vocational school district, or local taxing unit.	6318

(F) If a school district levies a tax under section 5705.219	6319
of the Revised Code, the fixed-rate levy loss for qualifying	6320
levies, to the extent repealed under that section, shall equal the	6321
sum of the following amounts in lieu of the amounts computed for	6322
such levies under division (D) of this section:	6323

(1) The sum of the rates of qualifying levies to the extent	6324
so repealed multiplied by the sum of the machinery and equipment,	6325
inventory, and furniture and fixtures tax value losses for 2009 as	6326
determined under that division;	6327

(2) The sum of the rates of qualifying levies to the extent	6328
so repealed multiplied by the telephone property tax value loss	6329
for 2011 as determined under that division.	6330

The fixed-rate levy losses for qualifying levies to the	6331
extent not repealed under section 5705.219 of the Revised Code	6332
shall be as determined under division (D) of this section. The	6333
revised fixed-rate levy losses determined under this division and	6334
division (D) of this section first apply in the year following the	6335
first year the district levies the tax under section 5705.219 of	6336
the Revised Code.	6337

(G) Not later than October 1, 2005, the tax commissioner	6338
shall certify to the department of education for every school	6339
district and joint vocational school district the machinery and	6340
equipment, inventory, furniture and fixtures, and telephone	6341
property tax value losses determined under division (C) of this	6342
section, the machinery and equipment, inventory, furniture and	6343
fixtures, and telephone fixed-rate levy losses determined under	6344
division (D) of this section, and the fixed-sum levy losses	6345
calculated under division (E) of this section. The calculations	6346
under divisions (D) and (E) of this section shall separately	6347
display the levy loss for each levy eligible for reimbursement.	6348

(H) Not later than October 1, 2005, the tax commissioner	6349
shall certify the amount of the fixed-sum levy losses to the	6350
county auditor of each county in which a school district, joint	6351
vocational school district, or local taxing unit with a fixed-sum	6352
levy loss reimbursement has territory.	6353

(I) Not later than the twenty-eighth day of February each	6354
year beginning in 2011 and ending in 2014, the tax commissioner	6355
shall certify to the department of education for each school	6356
district first levying a tax under section 5705.219 of the Revised	6357
Code in the preceding year the revised fixed-rate levy losses	6358
determined under divisions (D) and (F) of this section.	6359

Sec. 5751.22. (A) Not later than January 1, 2006, the tax	6360
commissioner shall compute the payments to be made to each local	6361
taxing unit, and to each public library that receives the proceeds	6362
of a tax levied under section 5705.23 of the Revised Code, for	6363
each year according to divisions (A)(1), (2), (3), and (4) of this	6364
section as this section existed on that date, and shall distribute	6365
the payments in the manner prescribed by division (C) of this	6366
section. The calculation of the fixed-sum levy loss shall cover a	6367
time period sufficient to include all fixed-sum levies for which	6368
the commissioner determined, pursuant to division (E) of section	6369
5751.20 of the Revised Code, that a fixed-sum levy loss is to be	6370
reimbursed.	6371

(1) Except as provided in division (A)(3) of this section,	6372
for fixed-rate levy losses determined under division (D) of	6373
section 5751.20 of the Revised Code, payments shall be made in an	6374
amount equal to the following:	6375

(a) For tax years 2006 through 2010, one hundred per cent of	6376
such losses;	6377

(b) For the payment in tax year 2011 to be made on or before	6378
the twentieth day of November, the sum of the amount in division	6379
(A)(1)(b)(i) or (ii) and division (A)(1)(b)(iii) of this section:	6380

(i) If the ratio of six-sevenths of the TPP allocation to	6381
total resources is equal to or less than the threshold per cent,	6382
zero;	6383

(ii) If the ratio of six-sevenths of the TPP allocation to	6384
total resources is greater than the threshold per cent, the	6385
difference of six-sevenths of the TPP allocation minus the product	6386
of total resources multiplied by the threshold per cent;	6387

(iii) In the case of a municipal corporation, six-sevenths of	6388
the product of the non-current expense TPP allocation multiplied	6389
by seventy-five per cent.	6390

(c) For tax years 2012 and thereafter, the sum of the amount	6391
in division (A)(1)(c)(i) or (ii) and division (A)(1)(c)(iii) of	6392
this section:	6393

(i) If the ratio of TPP allocation to total resources is	6394
equal to or less than the threshold per cent, zero;	6395

(ii) If the ratio of TPP allocation to total resources is	6396
greater than the threshold per cent, the TPP allocation minus the	6397
product of total resources multiplied by the threshold per cent;	6398

(iii) In the case of a municipal corporation, non-current	6399
expense TPP allocation multiplied by fifty per cent for tax year	6400
2012 and twenty-five per cent for tax years 2013 and thereafter;	6401

(d) For tax years 2012 and thereafter, in the case of a	6402
county, school district, municipal corporation, or township public	6403
library, the amount in division (A)(1)(d)(i) or (ii) of this	6404
section:	6405

(i) If the ratio of TPP allocation for library purposes to	6406
total library resources is equal to or less than the threshold per	6407
cent, zero;	6408

(ii) If the ratio of TPP allocation for library purposes to	6409
total library resources is greater than the threshold per cent,	6410
the TPP allocation for library purposes minus the product of total	6411
library resources multiplied by the threshold per cent.	6412

(2) For fixed-sum levy losses determined under division (E)	6413
of section 5751.20 of the Revised Code, payments shall be made in	6414
the amount of one hundred per cent of the fixed-sum levy loss for	6415
payments required to be made in 2006 ~~and thereafter~~through 2011,	6416
except that no payments shall be made for qualifying levies that	6417
have expired. For payments required to be made in 2012 and	6418
thereafter, payments shall be made in the amount of fifty per cent	6419
of the fixed-sum levy loss until the qualifying levy has expired.	6420

(3) For taxes levied within the ten-mill limitation or	6421
pursuant to a municipal charter for debt purposes in tax year	6422
2005, payments shall be made based on the schedule in division	6423
(A)(1) of this section for each of the calendar years 2006 through	6424
2010. For each of the calendar years 2011 through 2017, the	6425
percentages for calendar year 2010 shall be used for taxes levied	6426
within the ten-mill limitation or pursuant to a municipal charter	6427
for debt purposes in tax year 2010, as long as such levies	6428
continue to be used for debt purposes. If the purpose of such a	6429
qualifying levy is changed, that levy becomes subject to the	6430
payment schedules in divisions (A)(1)(a) to (h) of this section.	6431
No payments shall be made for such levies after calendar year	6432
2017. For the purposes of this division, taxes levied pursuant to	6433
a municipal charter refer to taxes levied pursuant to a provision	6434
of a municipal charter that permits the tax to be levied without	6435
prior voter approval.	6436

(B) Beginning in 2007, by the thirty-first day of January of	6437
each year, the tax commissioner shall review the calculation	6438
originally made under division (A) of this section of the	6439
fixed-sum levy losses determined under division (E) of section	6440
5751.20 of the Revised Code. If the commissioner determines that a	6441
fixed-sum levy that had been scheduled to be reimbursed in the	6442
current year has expired, a revised calculation for that and all	6443
subsequent years shall be made.	6444

(C) Payments to local taxing units and public libraries	6445
required to be made under division (A) of this section shall be	6446
paid from the local government tangible property tax replacement	6447
fund to the county undivided income tax fund in the proper county	6448
treasury. From May 2006 through November 2010, one-seventh of the	6449
amount determined under that division shall be paid by the last	6450
day of May each year, and three-sevenths shall be paid by the last	6451
day of August and October each year. From May 2011 through	6452
November 2013, one-seventh of the amount determined under that	6453
division shall be paid on or before the last day of May each year,	6454
and six-sevenths shall be paid on or before the ~~twentieth~~	6455
thirtieth day of November each year, except that in November 2011,	6456
the payment shall equal one hundred per cent of the amount	6457
calculated for that payment. Beginning in May 2014, one-half of	6458
the amount determined under that division shall be paid on or	6459
before the last day of May each year, and one-half shall be paid	6460
on or before the ~~twentieth~~thirtieth day of November each year.	6461
Within ~~forty~~thirty days after receipt of such payments, the	6462
county treasurer shall distribute amounts determined under	6463
division (A) of this section to the proper local taxing unit or	6464
public library as if they had been levied and collected as taxes,	6465
and the local taxing unit or public library shall apportion the	6466
amounts so received among its funds in the same proportions as if	6467
those amounts had been levied and collected as taxes.	6468

(D) For each of the fiscal years 2006 through 2018, if the	6469
total amount in the local government tangible property tax	6470
replacement fund is insufficient to make all payments under	6471
division (C) of this section at the times the payments are to be	6472
made, the director of budget and management shall transfer from	6473
the general revenue fund to the local government tangible property	6474
tax replacement fund the difference between the total amount to be	6475
paid and the amount in the local government tangible property tax	6476
replacement fund. For each fiscal year after 2018, at the time	6477
payments under division (A)(2) of this section are to be made, the	6478
director of budget and management shall transfer from the general	6479
revenue fund to the local government property tax replacement fund	6480
the amount necessary to make such payments.	6481

(E) On the fifteenth day of June of each year from 2006	6482
through 2018, the director of budget and management may transfer	6483
any balance in the local government tangible property tax	6484
replacement fund to the general revenue fund.	6485

(F) If all or a part of the territories of two or more local	6486
taxing units are merged, or unincorporated territory of a township	6487
is annexed by a municipal corporation, the tax commissioner shall	6488
adjust the payments made under this section to each of the local	6489
taxing units in proportion to the square mileage of the merged or	6490
annexed territory as a percentage of the total square mileage of	6491
the jurisdiction from which the territory originated, or as	6492
otherwise provided by a written agreement between the legislative	6493
authorities of the local taxing units certified to the	6494
commissioner not later than the first day of June of the calendar	6495
year in which the payment is to be made.	6496

Sec. 5753.03. (A) For the purpose of receiving and	6497
distributing, and accounting for, revenue received from the tax	6498
levied by section 5753.02 of the Revised Code, the following funds	6499
are created in the state treasury:	6500

(1) The casino tax revenue fund;

6501

(2) The gross casino revenue county fund;

6502

(3) The gross casino revenue county student fund;

6503

(4) The gross casino revenue host city fund;

6504

(5) The Ohio state racing commission fund;

6505

(6) The Ohio law enforcement training fund;

6506

(7) The problem casino gambling and addictions fund;

6507

(8) The casino control commission fund;

6508

(9) The casino tax administration fund;

6509

(10) The peace officer training academy fund;

6510

(11) The criminal justice services casino tax revenue fund.

6511

(B) All moneys collected from the tax levied under this	6512
chapter shall be deposited into the casino tax revenue fund.	6513

(C) From the casino tax revenue fund the director of budget	6514
and management shall transfer as needed to the tax refund fund	6515
amounts equal to the refunds certified by the tax commissioner	6516
under section 5753.06 of the Revised Code.	6517

(D) After making any transfers required by division (C) of	6518
this section, but not later than the fifteenth day of the month	6519
following the end of each calendar quarter, the director of budget	6520
and management shall transfer amounts to each fund as follows:	6521

(1) Fifty-one per cent to the gross casino revenue county	6522
fund to make payments as required by Section 6(C)(3)(a) of Article	6523
XV, Ohio Constitution;	6524

(2) Thirty-four per cent to the gross casino revenue county	6525
student fund to make payments as required by Section 6(C)(3)(b) of	6526
Article XV, Ohio Constitution;	6527

(3) Five per cent to the gross casino revenue host city fund	6528
for the benefit of the cities in which casino facilities are	6529
located;	6530

(4) Three per cent to the Ohio state racing commission fund	6531
to support the efforts and activities of the Ohio state racing	6532
commission to promote horse racing in this state at which the	6533
pari-mutuel system of wagering is conducted;	6534

(5) Two per cent to the Ohio law enforcement training fund to	6535
support law enforcement functions in the state;	6536

(6) Two per cent to the problem casino gambling and	6537
addictions fund to support efforts of the department of alcohol	6538
and drug addiction services to alleviate problem gambling and	6539
substance abuse and related research in the state under section	6540
3793.032 of the Revised Code;	6541

(7) Three per cent to the casino control commission fund to	6542
support the operations of the Ohio casino control commission and	6543
to defray the cost of administering the tax levied under section	6544
5753.02 of the Revised Code.	6545

Payments under divisions (D)(1), (2), and (3) of this section	6546
shall be made by the end of the month following the end of the	6547
quarterly period. The tax commissioner shall make the data	6548
available to the director of budget and management for this	6549
purpose.	6550

Of the money credited to the Ohio law enforcement training	6551
fund, the director of budget and management shall distribute	6552
eighty-five per cent of the money to the police officer training	6553
academy fund for the purpose of supporting the law enforcement	6554
training efforts of the Ohio peace officer training academy and	6555
fifteen per cent of the money to the criminal justice services	6556
casino tax revenue fund for the purpose of supporting the law	6557
enforcement training efforts of the division of criminal justice	6558
services.	6559

(E) The director of budget and management shall transfer one	6560
per cent of the money credited to the casino control commission	6561
fund to the casino tax administration fund. The tax commissioner	6562
shall use the casino tax administration fund to defray the costs	6563
incurred in administering the tax levied by this chapter.	6564

Section 2. That existing sections 131.02, 1701.86, 1702.47,	6565
3769.28, 4301.42, 4303.33, 4928.23, 4928.2314, 5703.261, 5703.37,	6566
5703.47, 5727.84, 5727.86, 5731.39, 5733.26, 5735.02, 5735.03,	6567
5735.35, 5739.01, 5739.02, 5739.021, 5739.023, 5739.026, 5739.04,	6568
5739.17, 5741.08, 5743.20, 5743.61, 5743.66, 5747.082, 5747.11,	6569
5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051,	6570
5751.08, 5751.12, 5751.20, 5751.22, and 5753.03 and section	6571
5751.032 of the Revised Code are hereby repealed.	6572

Section 757.10. Notwithstanding sections 5713.01 and 5715.24	6573
of the Revised Code, for the purpose of equalizing and	6574
regionalizing real property assessment cycles, beginning in tax	6575
year 2014 and continuing for not more than five years, the Tax	6576
Commissioner may extend the revaluation of real property required	6577
in any county by not more than one year.	6578

Section 757.20. The Tax Commissioner is not required to issue	6579
the certifications that are or were otherwise required to be made	6580
on or before May 15, 2012, or June 1, 2012, under sections	6581
3317.026, 3317.027, 3317.028, and divisions (A)(4), (6), and (7)	6582
of section 3317.021 of the Revised Code. This section is intended	6583
to be remedial in nature and to be construed liberally to	6584
accomplish the purpose of avoiding unnecessary certifications.	6585

Section 757.30. Section 5751.01 of the Revised Code is	6586
presented in this act as a composite of the section as amended by	6587
both Am. Sub. H.B. 153 and Sub. H.B. 277 of the 129th General	6588
Assembly. The General Assembly, applying the principle stated in	6589
division (B) of section 1.52 of the Revised Code that amendments	6590
are to be harmonized if reasonably capable of simultaneous	6591
operation, finds that the composite is the resulting version of	6592
the section in effect prior to the effective date of the section	6593
as presented in this act.	6594

Section 806.10. The items of law contained in this act, and	6595
their applications, are severable. If any item of law contained in	6596
this act, or if any application of any item of law contained in	6597
this act, is held invalid, the invalidity does not affect other	6598
items of law contained in this act and their applications that can	6599
be given effect without the invalid item of law or application.	6600

Section 812.10. Sections subject to referendum: general	6601
effective date. Except as otherwise provided in this act, the	6602
amendment, enactment, or repeal by this act of a section is	6603
subject to the referendum under Ohio Constitution, Article II,	6604
Section 1c and therefore takes effect on the ninety-first day	6605
after this act is filed with the Secretary of State.	6606

Section 812.20. Sections exempt from referendum: general	6607
effective date. The amendment, enactment, or repeal by this act of	6608
the following sections is exempt from the referendum under Ohio	6609
Constitution, Article II, Section 1d and section 1.471 of the	6610
Revised Code and therefore takes effect immediately when this act	6611
becomes law:	6612

Sections 4928.23, 4928.2314, 5727.84, 5727.86, 5751.20,	6613
5751.22, and 5753.03 of the Revised Code.	6614

Section 757.20 of this act.

6615