As Passed by the House

129th General Assembly
Regular Session
2011-2012
Sub. H. B. No. 508


Representative Beck 

Cosponsors: Representatives Amstutz, Stautberg, Anielski, Antonio, Baker, Blessing, Boose, Bubp, Combs, Damschroder, Derickson, Garland, Gerberry, Grossman, Hackett, Hagan, R., Hayes, Huffman, Kozlowski, Lynch, Martin, McClain, Ruhl, Sears, Smith, Sprague, Stebelton, Terhar, Thompson, Young Speaker Batchelder 



A BILL
To amend sections 131.02, 349.01, 1545.21, 1701.86, 1
1702.47, 3318.011, 3318.36, 3769.28, 4301.42, 2
4303.33, 4701.01, 4701.04, 5703.261, 5703.37, 3
5703.47, 5709.084, 5709.40, 5709.41, 5709.73, 4
5709.78, 5727.84, 5727.86, 5731.39, 5733.056, 5
5735.02, 5735.03, 5739.01, 5739.02, 5739.021, 6
5739.023, 5739.026, 5739.04, 5739.17, 5741.08, 7
5743.20, 5743.61, 5743.66, 5747.082, 5751.01, 8
5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 9
5751.051, 5751.12, 5751.20, 5751.22, and 5753.03, 10
to enact section 5703.061, and to repeal section 11
5751.032 of the Revised Code to make changes to 12
the laws governing the assessment, levy, and 13
collection of taxes in the state, to the laws 14
governing public accounting firm peer review, and 15
to the school facilities construction law.16


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

       Section 1. That sections 131.02, 349.01, 1545.21, 1701.86, 17
1702.47, 3318.011, 3318.36, 3769.28, 4301.42, 4303.33, 4701.01, 18
4701.04, 5703.261, 5703.37, 5703.47, 5709.084, 5709.40, 5709.41, 19
5709.73, 5709.78, 5727.84, 5727.86, 5731.39, 5733.056, 5735.02, 20
5735.03, 5739.01, 5739.02, 5739.021, 5739.023, 5739.026, 5739.04, 21
5739.17, 5741.08, 5743.20, 5743.61, 5743.66, 5747.082, 5751.01, 22
5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051, 5751.12, 23
5751.20, 5751.22, and 5753.03 be amended and section 5703.061 of 24
the Revised Code be enacted to read as follows:25

       Sec. 131.02. (A) Except as otherwise provided in section 26
4123.37, section 5703.061, and division (K) of section 4123.511 of 27
the Revised Code, whenever any amount is payable to the state, the 28
officer, employee, or agent responsible for administering the law 29
under which the amount is payable shall immediately proceed to 30
collect the amount or cause the amount to be collected and shall 31
pay the amount into the state treasury or into the appropriate 32
custodial fund in the manner set forth pursuant to section 113.08 33
of the Revised Code. Except as otherwise provided in this 34
division, if the amount is not paid within forty-five days after 35
payment is due, the officer, employee, or agent shall certify the 36
amount due to the attorney general, in the form and manner 37
prescribed by the attorney general, and notify the director of 38
budget and management thereof. In the case of an amount payable by 39
a student enrolled in a state institution of higher education, the 40
amount shall be certified within the later of forty-five days 41
after the amount is due or the tenth day after the beginning of 42
the next academic semester, quarter, or other session following 43
the session for which the payment is payable. The attorney general 44
may assess the collection cost to the amount certified in such 45
manner and amount as prescribed by the attorney general. If an 46
amount payable to a political subdivision is past due, the 47
political subdivision may, with the approval of the attorney 48
general, certify the amount to the attorney general pursuant to 49
this section.50

       For the purposes of this section, the attorney general and 51
the officer, employee, or agent responsible for administering the 52
law under which the amount is payable shall agree on the time a 53
payment is due, and that agreed upon time shall be one of the 54
following times:55

        (1) If a law, including an administrative rule, of this state 56
prescribes the time a payment is required to be made or reported, 57
when the payment is required by that law to be paid or reported.58

        (2) If the payment is for services rendered, when the 59
rendering of the services is completed.60

        (3) If the payment is reimbursement for a loss, when the loss 61
is incurred.62

        (4) In the case of a fine or penalty for which a law or 63
administrative rule does not prescribe a time for payment, when 64
the fine or penalty is first assessed.65

        (5) If the payment arises from a legal finding, judgment, or 66
adjudication order, when the finding, judgment, or order is 67
rendered or issued.68

        (6) If the payment arises from an overpayment of money by the 69
state to another person, when the overpayment is discovered.70

        (7) The date on which the amount for which an individual is 71
personally liable under section 5735.35, section 5739.33, or 72
division (G) of section 5747.07 of the Revised Code is determined.73

        (8) Upon proof of claim being filed in a bankruptcy case.74

       (9) Any other appropriate time determined by the attorney 75
general and the officer, employee, or agent responsible for 76
administering the law under which the amount is payable on the 77
basis of statutory requirements or ordinary business processes of 78
the state agency to which the payment is owed.79

       (B)(1) The attorney general shall give immediate notice by 80
mail or otherwise to the party indebted of the nature and amount 81
of the indebtedness.82

       (2) If the amount payable to this state arises from a tax 83
levied under Chapter 5733., 5739., 5741., 5747., or 5751. of the 84
Revised Code, the notice also shall specify all of the following:85

       (a) The assessment or case number;86

       (b) The tax pursuant to which the assessment is made;87

       (c) The reason for the liability, including, if applicable, 88
that a penalty or interest is due;89

       (d) An explanation of how and when interest will be added to 90
the amount assessed;91

       (e) That the attorney general and tax commissioner, acting 92
together, have the authority, but are not required, to compromise 93
the claim and accept payment over a reasonable time, if such 94
actions are in the best interest of the state.95

       (C) The attorney general shall collect the claim or secure a 96
judgment and issue an execution for its collection.97

       (D) Each claim shall bear interest, from the day on which the 98
claim became due, at the rate per annum required by section 99
5703.47 of the Revised Code.100

       (E) The attorney general and the chief officer of the agency 101
reporting a claim, acting together, may do any of the following if 102
such action is in the best interests of the state:103

       (1) Compromise the claim;104

       (2) Extend for a reasonable period the time for payment of 105
the claim by agreeing to accept monthly or other periodic 106
payments. The agreement may require security for payment of the 107
claim.108

       (3) Add fees to recover the cost of processing checks or 109
other draft instruments returned for insufficient funds and the 110
cost of providing electronic payment options.111

       (F)(1) Except as provided in division (F)(2) of this section, 112
if the attorney general finds, after investigation, that any claim 113
due and owing to the state is uncollectible, the attorney general, 114
with the consent of the chief officer of the agency reporting the 115
claim, may do the following:116

        (a) Sell, convey, or otherwise transfer the claim to one or 117
more private entities for collection;118

        (b) Cancel the claim or cause it to be canceled.119

        (2) The attorney general shall cancel or cause to be canceled 120
an unsatisfied claim on the date that is forty years after the 121
date the claim is certified.122

       (3) No initial action shall be commenced to collect any tax 123
payable to the state that is administered by the tax commissioner, 124
whether or not such tax is subject to division (B) of this 125
section, or any penalty, interest, or additional charge on such 126
tax, after the expiration of the period ending on the later of the 127
dates specified in divisions (F)(3)(a) and (b) of this section, 128
provided that such period shall be extended by the period of any 129
stay to such collection or by any other period to which the 130
parties mutually agree. If the initial action in aid of execution 131
is commenced before the later of the dates specified in divisions 132
(F)(3)(a) and (b) of this section, any and all subsequent actions 133
may be pursued in aid of execution of judgment for as long as the 134
debt exists.135

       (a) Seven years after the assessment of the tax, penalty, 136
interest, or additional charge is issued.137

       (b) Four years after the assessment of the tax, penalty, 138
interest, or additional charge becomes final. For the purposes of 139
division (F)(3)(b) of this section, the assessment becomes final 140
at the latest of the following: upon expiration of the period to 141
petition for reassessment, or if applicable, to appeal a final 142
determination of the commissioner or decision of the board of tax 143
appeals or a court, or, if applicable, upon decision of the United 144
States supreme court.145

       For the purposes of division (F)(3) of this section, an 146
initial action to collect a tax debt is commenced at the time when 147
any action, including any action in aid of execution on a 148
judgment, commences after a certified copy of the tax 149
commissioner's entry making an assessment final has been filed in 150
the office of the clerk of court of common pleas in the county in 151
which the taxpayer resides or has its principal place of business 152
in this state, or in the office of the clerk of court of common 153
pleas of Franklin county, as provided in section 5739.13, 5741.14, 154
5747.13, or 5751.09 of the Revised Code or in any other applicable 155
law requiring such a filing. If an assessment has not been issued 156
and there is no time limitation on the issuance of an assessment 157
under applicable law, an action to collect a tax debt commences 158
when the action is filed in the courts of this state to collect 159
the liability.160

       (4) If information contained in a claim that is sold, 161
conveyed, or transferred to a private entity pursuant to this 162
section is confidential pursuant to federal law or a section of 163
the Revised Code that implements a federal law governing 164
confidentiality, such information remains subject to that law 165
during and following the sale, conveyance, or transfer.166

       Sec. 349.01.  As used in this chapter:167

       (A) "New community" means a community or an addition to an 168
existing community planned pursuant to this chapter so that it 169
includes facilities for the conduct of industrial, commercial, 170
residential, cultural, educational, and recreational activities, 171
and designed in accordance with planning concepts for the 172
placement of utility, open space, and other supportive facilities.173

       In the case of a new community authority established within 174
three years after March 22, 2012, the effective date of H.B. 225 175
of the 129th general assembly, "new community" may mean a 176
community or development of property planned under this chapter in 177
relation to an existing community so that the community includes 178
facilities for the conduct of community activities, and is 179
designed in accordance with planning concepts for the placement of 180
utility, open space, and other supportive facilities for the 181
community.182

       (B) "New community development program" means a program for 183
the development of a new community characterized by well-balanced 184
and diversified land use patterns and which includes land 185
acquisition and land development, the acquisition, construction, 186
operation, and maintenance of community facilities, and the 187
provision of services authorized in this chapter.188

       In the case of a new community authority established within 189
three years after March 22, 2012, the effective date of H.B. 225 190
of the 129th general assembly, a new community development program 191
may take into account any existing community in relation to which 192
a new community is developed for purposes of being characterized 193
by well-balanced and diversified land use patterns.194

       (C) "New community district" means the area of land described 195
by the developer in the petition as set forth in division (A) of 196
section 349.03 of the Revised Code for development as a new 197
community and any lands added to the district by amendment of the 198
resolution establishing the community authority.199

       (D) "New community authority" means a body corporate and 200
politic in this state, established pursuant to section 349.03 of 201
the Revised Code and governed by a board of trustees as provided 202
in section 349.04 of the Revised Code.203

       (E) "Developer" means any person, organized for carrying out 204
a new community development program who owns or controls, through 205
leases of at least seventy-five years' duration, options, or 206
contracts to purchase, the land within a new community district, 207
or any municipal corporation, county, or port authority that owns 208
the land within a new community district, or has the ability to 209
acquire such land, either by voluntary acquisition or condemnation 210
in order to eliminate slum, blighted, and deteriorated or 211
deteriorating areas and to prevent the recurrence thereof. In the 212
case of a new community authority established within three years 213
after March 22, 2012, the effective date of H.B. 225 of the 129th 214
general assembly, "developer" may mean a person, municipal 215
corporation, county, or port authority that controls land within a 216
new community district through leases of at least forty years' 217
duration.218

       (F) "Organizational board of commissioners" means, if the new 219
community district is located in only one county, the board of 220
county commissioners of such county; if located in more than one 221
county, a board consisting of the members of the board of county 222
commissioners of each of the counties in which the district is 223
located, provided that action of such board shall require a 224
majority vote of the members of each separate board of county 225
commissioners; or, if more than half of the new community district 226
is located within the boundaries of the most populous municipal 227
corporation of a county, the legislative authority of the 228
municipal corporation.229

       (G) "Land acquisition" means the acquisition of real property 230
and interests in real property as part of a new community 231
development program.232

       (H) "Land development" means the process of clearing and 233
grading land, making, installing, or constructing water 234
distribution systems, sewers, sewage collection systems, steam, 235
gas, and electric lines, roads, streets, curbs, gutters, 236
sidewalks, storm drainage facilities, and other installations or 237
work, whether within or without the new community district, and 238
the construction of community facilities.239

       (I)(1) "Community facilities" means all real property, 240
buildings, structures, or other facilities, including related 241
fixtures, equipment, and furnishings, to be owned, operated, 242
financed, constructed, and maintained under this chapter, 243
including public, community, village, neighborhood, or town 244
buildings, centers and plazas, auditoriums, day care centers, 245
recreation halls, educational facilities, hospital facilities as 246
defined in section 140.01 of the Revised Code, recreational 247
facilities, natural resource facilities, including parks and other 248
open space land, lakes and streams, cultural facilities, community 249
streets, pathway and bikeway systems, pedestrian underpasses and 250
overpasses, lighting facilities, design amenities, or other 251
community facilities, and buildings needed in connection with 252
water supply or sewage disposal installations or steam, gas, or 253
electric lines or installation.254

       (2) In the case of a new community authority established 255
within three years after March 22, 2012, the effective date of 256
H.B. 225 of the 129th general assembly, "community facilities" may 257
mean, in addition to the facilities authorized in division (I)(1) 258
of this section, any community facilities that are owned, 259
operated, financed, constructed, or maintained for, relating to, 260
or in furtherance of community activities, including, but not 261
limited to, town buildings or other facilities, health care 262
facilities including, but limited to, hospital facilities, and 263
off-street parking facilities.264

       (J) "Cost" as applied to a new community development program 265
means all costs related to land acquisition and land development, 266
the acquisition, construction, maintenance, and operation of 267
community facilities and offices of the community authority, and 268
of providing furnishings and equipment therefor, financing charges 269
including interest prior to and during construction and for the 270
duration of the new community development program, planning 271
expenses, engineering expenses, administrative expenses including 272
working capital, and all other expenses necessary and incident to 273
the carrying forward of the new community development program.274

       (K) "Income source" means any and all sources of income to 275
the community authority, including community development charges 276
of which the new community authority is the beneficiary as 277
provided in section 349.07 of the Revised Code, rentals, user fees 278
and other charges received by the new community authority, any 279
gift or grant received, any moneys received from any funds 280
invested by or on behalf of the new community authority, and 281
proceeds from the sale or lease of land and community facilities.282

       (L) "Community development charge" means:283

       (1) A dollar amount which shall be determined on the basis of 284
the assessed valuation of real property or interests in real 285
property in a new community district sold, leased, or otherwise 286
conveyed by the developer or the new community authority, the 287
income of the residents of such property subject to such charge 288
under section 349.07 of the Revised Code, if such property is 289
devoted to residential uses or to the profits of any business, a 290
uniform fee on each parcel of such real property originally sold, 291
leased, or otherwise conveyed by the developer or new community 292
authority, or any combination of the foregoing bases.293

        (2) For a new community authority that is established within 294
three years after March 22, 2012, the effective date of H.B. 225 295
of the 129th general assembly, "community development charge" 296
includes, in addition to the charges authorized in division (L)(1) 297
of this section, a charge determined on the basis of all or a part 298
of the income of the residents of real property within the new 299
community district if such property is devoted to residential 300
uses, or all or a part of the profits, gross receipts, or other 301
revenues of any business operating in the new community district, 302
including rentals received from leases of real property located in 303
the district. If a new community authority imposes a community 304
development charge determined on the basis of rentals received 305
from leases of real property, improvements of any real property 306
located in the new community district and subject to that charge 307
may not be exempted from taxation under section 5709.40, 5709.41, 308
5709.73, or 5709.78 of the Revised Code.309

       (M) "Proximate city" means any city that, as of the date of 310
filing of the petition under section 349.03 of the Revised Code, 311
is the city with the greatest population located in the county in 312
which the proposed new community district is located, is the city 313
with the greatest population located in an adjoining county if any 314
portion of such city is within five miles of any part of the 315
boundaries of such district, or exercises extraterritorial 316
subdivision authority under section 711.09 of the Revised Code 317
with respect to any part of such district.318

       In the case of a new community authority that is established 319
within three years after March 22, 2012, the effective date of 320
H.B. 225 of the 129th general assembly, "proximate city" may mean 321
a municipal corporation in which, at the time of filing the 322
petition under section 349.03 of the Revised Code, any portion of 323
the proposed new community district is located, or, if at the time 324
of that filing more than one-half of the proposed district is 325
contained within a joint economic development district created 326
under sections 715.70 to 715.83 of the Revised Code, the township 327
containing the greatest portion of the territory of the joint 328
economic development district.329

       (N) "Community activities" means cultural, educational, 330
governmental, recreational, residential, industrial, commercial, 331
distribution and research activities, or any combination thereof 332
that includes residential activities.333

       Sec. 1545.21.  The board of park commissioners, by 334
resolution, may submit to the electors of the park district the 335
question of levying taxes for the use of the district. The 336
resolution shall declare the necessity of levying such taxes, 337
shall specify the purpose for which such taxes shall be used, the 338
annual rate proposed, and the number of consecutive years the rate 339
shall be levied. Such resolution shall be forthwith certified to 340
the board of elections in each county in which any part of such 341
district is located, not later than the ninetieth day before the 342
day of the election, and the question of the levy of taxes as 343
provided in such resolution shall be submitted to the electors of 344
the district at a special election to be held on whichever of the 345
following occurs first:346

       (A) The day of the next general election;347

       (B) The first Tuesday after the first Monday in May in any 348
calendar year, except that if a presidential primary election is 349
held in that calendar year, then the day of that election. The 350
ballot shall set forth the purpose for which the taxes shall be 351
levied, the annual rate of levy, and the number of years of such 352
levy. If the tax is to be placed on the current tax list, the form 353
of the ballot shall state that the tax will be levied in the 354
current tax year and shall indicate the first calendar year the 355
tax will be due. If the resolution of the board of park 356
commissioners provides that an existing levy will be canceled upon 357
the passage of the new levy, the ballot may include a statement 358
that: "an existing levy of ... mills (stating the original levy 359
millage), having ... years remaining, will be canceled and 360
replaced upon the passage of this levy." In such case, the ballot 361
may refer to the new levy as a "replacement levy" if the new 362
millage does not exceed the original millage of the levy being 363
canceled or as a "replacement and additional levy" if the new 364
millage exceeds the original millage of the levy being canceled. 365
If a majority of the electors voting upon the question of such 366
levy vote in favor thereof, such taxes shall be levied and shall 367
be in addition to the taxes authorized by section 1545.20 of the 368
Revised Code, and all other taxes authorized by law. The rate 369
submitted to the electors at any one time shall not exceed two 370
mills annually upon each dollar of valuation unless the purpose of 371
the levy includes providing operating revenues for one of Ohio's 372
major metropolitan zoos, as defined in section 4503.74 of the 373
Revised Code, in which case the rate shall not exceed three mills 374
annually upon each dollar of valuation. When a tax levy has been 375
authorized as provided in this section or in section 1545.041 of 376
the Revised Code, the board of park commissioners may issue bonds 377
pursuant to section 133.24 of the Revised Code in anticipation of 378
the collection of such levy, provided that such bonds shall be 379
issued only for the purpose of acquiring and improving lands. Such 380
levy, when collected, shall be applied in payment of the bonds so 381
issued and the interest thereon. The amount of bonds so issued and 382
outstanding at any time shall not exceed one per cent of the total 383
tax valuation in such district. Such bonds shall bear interest at 384
a rate not to exceed the rate determined as provided in section 385
9.95 of the Revised Code.386

       Sec. 1701.86.  (A) A corporation may be dissolved voluntarily 387
in the manner provided in this section, provided the provisions of 388
Chapter 1704. of the Revised Code do not prevent the dissolution 389
from being effected.390

       (B) A resolution of dissolution for a corporation shall set 391
forth that the corporation elects to be dissolved. The resolution 392
also may include any of the following:393

       (1) The date on which the certificate of dissolution is to be 394
filed or the conditions or events that will result in the filing 395
of the certificate;396

       (2) Authorization for the officers or directors to abandon 397
the proposed dissolution before the filing of the certificate of 398
dissolution;399

       (3) Any additional provision considered necessary with 400
respect to the proposed dissolution and winding up.401

       (C) If an initial stated capital is not set forth in the 402
articles then before the corporation begins business, or if an 403
initial stated capital is set forth in the articles then before 404
subscriptions to shares shall have been received in the amount of 405
that initial stated capital, the incorporators or a majority of 406
them may adopt, by a writing signed by each of them, a resolution 407
of dissolution.408

       (D) The directors may adopt a resolution of dissolution in 409
any of the following cases:410

       (1) When the corporation has been adjudged bankrupt or has 411
made a general assignment for the benefit of creditors;412

       (2) By leave of the court, when a receiver has been appointed 413
in a general creditors' suit or in any suit in which the affairs 414
of the corporation are to be wound up;415

       (3) When substantially all of the assets have been sold at 416
judicial sale or otherwise;417

       (4) When the articles have been canceled for failure to file 418
annual franchise or excise tax returns or for failure to pay 419
franchise or excise taxes and the corporation has not been 420
reinstated or does not desire to be reinstated;421

       (5) When the period of existence of the corporation specified 422
in its articles has expired.423

       (E) The shareholders at a meeting held for such purpose may 424
adopt a resolution of dissolution by the affirmative vote of the 425
holders of shares entitling them to exercise two-thirds of the 426
voting power of the corporation on such proposal or, if the 427
articles provide or permit, by the affirmative vote of a greater 428
or lesser proportion, though not less than a majority, of such 429
voting power, and by such affirmative vote of the holders of 430
shares of any particular class as is required by the articles. 431
Notice of the meeting of the shareholders shall be given to all 432
the shareholders whether or not entitled to vote at it.433

       (F) Upon the adoption of a resolution of dissolution, a 434
certificate shall be prepared, on a form prescribed by the 435
secretary of state, setting forth all of the following:436

       (1) The name of the corporation;437

       (2) A statement that a resolution of dissolution has been 438
adopted;439

       (3) A statement of the manner of adoption of such resolution, 440
and, in the case of its adoption by the incorporators or 441
directors, a statement of the basis for such adoption;442

       (4) The place in this state where its principal office is or 443
is to be located;444

       (5) The internet address of each domain name held or 445
maintained by or on behalf of the corporation;446

       (6) The name and address of its statutory agent;447

       (7) The date of dissolution, if other than the filing date. 448
The date of dissolution shall not be more than ninety days after 449
the filing of the certificate of dissolution.450

       (G) When the resolution of dissolution is adopted by the 451
incorporators, the certificate shall be signed by not less than a 452
majority of them. In all other cases, the certificate shall be 453
signed by any authorized officer, unless the officer fails to 454
execute and file such certificate within thirty days after the 455
date upon which such certificate is to be filed. In that latter 456
event, the certificate of dissolution may be signed by any three 457
shareholders or, if there are less than three shareholders, all of 458
the shareholders and shall set forth a statement that the persons 459
signing the certificate are shareholders and are filing the 460
certificate because of the failure of the officers to do so.461

       (H) Except as otherwise provided in division (I) of this 462
section, a certificate of dissolution, filed with the secretary of 463
state, shall be accompanied by all of the following:464

       (1) An affidavit of one or more of the persons executing the 465
certificate of dissolution or of an officer of the corporation 466
containing a statement of the counties, if any, in this state in 467
which the corporation has personal property or a statement that 468
the corporation is of a type required to pay personal property 469
taxes to state authorities only;470

       (2) A certificate or other evidence from the department of 471
taxation showing that the payment of all franchise, sales, use, 472
and highway use taxes accruing up to the date of dissolution or 473
showing that such payment has been adequately guaranteed,474
corporation has paid all taxes administered by and required to be 475
paid to the tax commissioner that are or will be due from the 476
corporation on the date of the dissolution or an affidavit of one 477
or more of the persons executing the certificate of dissolution or 478
of an officer of the corporation containing a statement that the 479
corporation is not required to pay or the department of taxation 480
has not assessed any tax for which such a certificate or other 481
evidence is not provided;482

       (3) A certificate or other evidence showing the payment of 483
all personal property and commercial activity taxes accruing up to 484
the date of dissolution or showing that such payment has been 485
adequately guaranteed, or an affidavit of one or more of the 486
persons executing the certificate of dissolution or of an officer 487
of the corporation containing a statement that the corporation is 488
not required to pay or the department of taxation has not assessed 489
any tax for which such a certificate or other evidence is not 490
provided;491

       (4) A receipt, certificate, or other evidence from the 492
director of job and family services showing that all contributions 493
due from the corporation as an employer have been paid, or that 494
such payment has been adequately guaranteed, or that the 495
corporation is not subject to such contributions;496

       (5) A receipt, certificate, or other evidence from the bureau 497
of workers' compensation showing that all premiums due from the 498
corporation as an employer have been paid, or that such payment 499
has been adequately guaranteed, or that the corporation is not 500
subject to such premium payments.501

       (I) In lieu of the receipt, certificate, or other evidence 502
described in division (H)(2), (3), (4), or (5) of this section, an 503
affidavit of one or more persons executing the certificate of 504
dissolution or of an officer of the corporation containing a 505
statement of the date upon which the particular department, 506
agency, or authority was advised in writing of the scheduled 507
effective date of the dissolution and was advised in writing of 508
the acknowledgment by the corporation of the applicability of the 509
provisions of section 1701.95 of the Revised Code.510

       (J) Upon the filing of a certificate of dissolution and such 511
accompanying documents or on a later date specified in the 512
certificate that is not more than ninety days after the filing, 513
the corporation shall be dissolved.514

       Sec. 1702.47.  (A) A corporation may be dissolved voluntarily 515
in the manner provided in this section.516

       (B) A resolution of dissolution for a corporation shall set 517
forth:518

       (1) That the corporation elects to be dissolved;519

       (2) Any additional provision deemed necessary with respect to 520
the proposed dissolution and winding up.521

       (C) The directors may adopt a resolution of dissolution in 522
the following cases:523

       (1) When the corporation has been adjudged bankrupt or has 524
made a general assignment for the benefit of creditors;525

       (2) By leave of the court, when a receiver has been appointed 526
in a general creditors' suit or in any suit in which the affairs 527
of the corporation are to be wound up;528

       (3) When substantially all of the assets have been sold at 529
judicial sale or otherwise;530

       (4) When the period of existence of the corporation specified 531
in its articles has expired.532

       (D)(1) The voting members at a meeting held for that purpose 533
may adopt a resolution of dissolution by the affirmative vote of a 534
majority of the voting members present in person or, if permitted, 535
by mail, by proxy, or by the use of authorized communications 536
equipment, if a quorum is present or, if the articles or the 537
regulations provide or permit, by the affirmative vote of a 538
greater or lesser proportion or number of the voting members, and 539
by the affirmative vote of the voting members or the affirmative 540
vote of the voting members of any particular class that is 541
required by the articles or the regulations. Notice of the meeting 542
of the members shall be sent to all the members who would be 543
entitled to vote at the meeting by mail, overnight delivery 544
service, or any authorized communications equipment.545

       (2) For purposes of division (D)(1) of this section, 546
participation by a voting member at a meeting through the use of 547
any of the means of communication described in that division 548
constitutes presence in person of that voting member at the 549
meeting for purposes of determining a quorum.550

       (E) Upon the adoption of a resolution of dissolution, a 551
certificate shall be prepared, on a form prescribed by the 552
secretary of state, setting forth the following:553

       (1) The name of the corporation;554

       (2) A statement that a resolution of dissolution has been 555
adopted;556

       (3) A statement of the manner of adoption of that resolution, 557
and, in the case of its adoption by the directors, a statement of 558
the basis for the adoption;559

       (4) The place in this state where its principal office is or 560
is to be located;561

       (5) The names and addresses of its directors and officers;562

       (6) The name and address of its statutory agent;563

       (7) The date of dissolution, if other than the filing date.564

       (F) The certificate described in division (E) of this section 565
shall be signed by any authorized officer, unless the officer 566
fails to execute and file the certificate within thirty days after 567
the adoption of the resolution, or upon any date specified in the 568
resolution as the date upon which the certificate is to be filed, 569
or upon the expiration of any period specified in the resolution 570
as the period within which the certificate is to be filed, 571
whichever is latest, in which event the certificate of dissolution 572
may be signed by any three voting members and shall set forth a 573
statement that the persons signing the certificate are voting 574
members and are filing the certificate because of the failure of 575
the officers to do so.576

       (G) A certificate of dissolution, filed with the secretary of 577
state, shall be accompanied by:578

       (1) An affidavit of one or more of the persons executing the 579
certificate of dissolution or of an officer of the corporation 580
containing a statement of the counties, if any, in this state in 581
which the corporation has personal property subject to personal 582
property taxes or a statement that the corporation is of a type 583
required to pay personal property taxes to state authorities only;584

       (2) A receipt, certificate, or other evidence showing the 585
payment of all personal property taxes accruing up to the date of 586
such filing or, if applicable, to the later date specified in the 587
certificate of dissolution in accordance with division (E) of this 588
section, unless the affidavit provided for in division (G)(1) of 589
this section states that the corporation has in this state no 590
personal property subject to personal property taxes;591

       (3) A receipt, certificate, or other evidence from the 592
director of job and family services showing that all contributions 593
due from the corporation as an employer have been paid, that such 594
payment has been adequately guaranteed, or that the corporation is 595
not subject to such contributions;596

       (4)(2) A receipt, certificate, or other evidence showing that597
the payment of all sales, use, and highway use taxes accruing up 598
to the date of such filing or, if applicable, to the later date 599
specified in the certificate ofcorporation has paid all taxes 600
imposed under the laws of this state that are or will be due from 601
the corporation on the date of the dissolution in accordance with 602
division (E) of this section, or that such payment has been 603
adequately guaranteed;604

       (5)(3) In lieu of the receipt, certificate, or other evidence 605
described in division (G)(1) or (2), (3), or (4) of this section, 606
an affidavit of one or more of the persons executing the 607
certificate of dissolution or of an officer of the corporation 608
containing a statement of the date upon which the particular 609
department, agency, or authority was advised in writing of the 610
scheduled effective date of the dissolution and was advised in 611
writing of the acknowledgement by the corporation of the 612
applicability of section 1702.55 of the Revised Code.613

       (H) Upon the filing of a certificate of dissolution and those 614
accompanying documents or on a later date specified in the 615
certificate that is not more than ninety days after the filing, 616
the corporation shall be dissolved.617

       Sec. 3318.011.  For purposes of providing assistance under 618
sections 3318.01 to 3318.20 of the Revised Code, the department of 619
education shall annually do all of the following:620

       (A) Calculate the adjusted valuation per pupil of each city, 621
local, and exempted village school district according to the 622
following formula:623

The district's valuation per pupil -
624

[$30,000 X (1 - the district's income factor)].
625

       For purposes of this calculation:626

       (1) Except for a district with an open enrollment net gain 627
that is ten per cent or more of its formula ADM, "valuation per 628
pupil" for a district means its average taxable value, divided by 629
its formula ADM for the previous fiscal year. "Valuation per 630
pupil," for a district with an open enrollment net gain that is 631
ten per cent or more of its formula ADM, means its average taxable 632
value, divided by the sum of its formula ADM for the previous 633
fiscal year plus its open enrollment net gain for the previous 634
fiscal year. 635

       (2) "AverageExcept for a tangible personal property 636
phase-out impacted district, "average taxable value" means the 637
average of the sum of the amounts certified for a district under 638
divisions (A)(1) and (2) of section 3317.021 of the Revised Code 639
in the second, third, and fourth preceding fiscal years. For a 640
tangible personal property phase-out impacted district, "average 641
taxable value" means the average of the sum of the amounts 642
certified for the district under division (A)(1) and as public 643
utility personal property under division (A)(2) of section 644
3317.021 of the Revised Code in the second, third, and fourth 645
preceding fiscal years.646

       (3) "Entitled to attend school" means entitled to attend 647
school in a city, local, or exempted village school district under 648
section 3313.64 or 3313.65 of the Revised Code.649

        (4) "Formula ADM" and "income factor" have the same meanings 650
as in section 3317.02 of the Revised Code.651

       (5) "Native student" has the same meaning as in section 652
3313.98 of the Revised Code.653

        (6) "Open enrollment net gain" for a district means (a) the 654
number of the students entitled to attend school in another 655
district but who are enrolled in the schools of the district under 656
its open enrollment policy minus (b) the number of the district's 657
native students who are enrolled in the schools of another 658
district under the other district's open enrollment policy, both 659
numbers as certified to the department under section 3313.981 of 660
the Revised Code. If the difference is a negative number, the 661
district's "open enrollment net gain" is zero.662

        (7) "Open enrollment policy" means an interdistrict open 663
enrollment policy adopted under section 3313.98 of the Revised 664
Code.665

       (8) "Tangible personal property phase-out impacted district" 666
means a school district for which the taxable value of its 667
tangible personal property certified under division (A)(2) of 668
section 3317.021 of the Revised Code for tax year 2005, excluding 669
the taxable value of public utility personal property, made up 670
eighteen per cent or more of its total taxable value for tax year 671
2005 as certified under that section.672

       (B) Calculate for each district the three-year average of the 673
adjusted valuations per pupil calculated for the district for the 674
current and two preceding fiscal years;675

       (C) Rank all such districts in order of adjusted valuation 676
per pupil from the district with the lowest three-year average 677
adjusted valuation per pupil to the district with the highest 678
three-year average adjusted valuation per pupil;679

       (D) Divide such ranking into percentiles with the first 680
percentile containing the one per cent of school districts having 681
the lowest three-year average adjusted valuations per pupil and 682
the one-hundredth percentile containing the one per cent of school 683
districts having the highest three-year average adjusted 684
valuations per pupil;685

       (E) Determine the school districts that have three-year 686
average adjusted valuations per pupil that are greater than the 687
median three-year average adjusted valuation per pupil for all 688
school districts in the state;689

       (F) On or before the first day of September, certify the 690
information described in divisions (A) to (E) of this section to 691
the Ohio school facilities commission.692

       Sec. 3318.36.  (A)(1) As used in this section:693

       (a) "Ohio school facilities commission," "classroom 694
facilities," "school district," "school district board," "net 695
bonded indebtedness," "required percentage of the basic project 696
costs," "basic project cost," "valuation," and "percentile" have 697
the same meanings as in section 3318.01 of the Revised Code.698

       (b) "Required level of indebtedness" means five per cent of 699
the school district's valuation for the year preceding the year in 700
which the commission and school district enter into an agreement 701
under division (B) of this section, plus [two one-hundredths of 702
one per cent multiplied by (the percentile in which the district 703
ranks minus one)].704

       (c) "Local resources" means any moneys generated in any 705
manner permitted for a school district board to raise the school 706
district portion of a project undertaken with assistance under 707
sections 3318.01 to 3318.20 of the Revised Code.708

       (d) "Tangible personal property phase-out impacted district" 709
has the same meaning as in section 3318.011 of the Revised Code.710

       (2) For purposes of determining the required level of 711
indebtedness, the required percentage of the basic project costs 712
under division (C)(1) of this section, and priority for assistance 713
under sections 3318.01 to 3318.20 of the Revised Code, the 714
percentile ranking of a school district with which the commission 715
has entered into an agreement under this section between the first 716
day of July and the thirty-first day of August in each fiscal year 717
is the percentile ranking calculated for that district for the 718
immediately preceding fiscal year, and the percentile ranking of a 719
school district with which the commission has entered into such 720
agreement between the first day of September and the thirtieth day 721
of June in each fiscal year is the percentile ranking calculated 722
for that district for the current fiscal year. However, in the 723
case of a tangible personal property phase-out impacted district, 724
the district's priority for assistance under sections 3318.01 to 725
3318.20 of the Revised Code and its portion of the basic project 726
cost under those sections shall be determined in the manner 727
prescribed, respectively, in divisions (B)(3)(b) and (E)(1)(b) of 728
this section. 729

       (B)(1) There is hereby established the school building 730
assistance expedited local partnership program. Under the program, 731
the Ohio school facilities commission may enter into an agreement 732
with the school district board of any school district under which 733
the school district board may proceed with the new construction or 734
major repairs of a part of the school district's classroom 735
facilities needs, as determined under sections 3318.01 to 3318.20 736
of the Revised Code, through the expenditure of local resources 737
prior to the school district's eligibility for state assistance 738
under those sections and may apply that expenditure toward meeting 739
the school district's portion of the basic project cost of the 740
total of the school district's classroom facilities needs, as 741
determined under sections 3318.01 to 3318.20 of the Revised Code 742
and as recalculated under division (E) of this section, that are 743
eligible for state assistance under sections 3318.01 to 3318.20 of 744
the Revised Code when the school district becomes eligible for 745
that assistance. Any school district that is reasonably expected 746
to receive assistance under sections 3318.01 to 3318.20 of the 747
Revised Code within two fiscal years from the date the school 748
district adopts its resolution under division (B) of this section 749
shall not be eligible to participate in the program established 750
under this section.751

       (2) To participate in the program, a school district board 752
shall first adopt a resolution certifying to the commission the 753
board's intent to participate in the program.754

       The resolution shall specify the approximate date that the 755
board intends to seek elector approval of any bond or tax measures 756
or to apply other local resources to use to pay the cost of 757
classroom facilities to be constructed under this section. The 758
resolution may specify the application of local resources or 759
elector-approved bond or tax measures after the resolution is 760
adopted by the board, and in such case the board may proceed with 761
a discrete portion of its project under this section as soon as 762
the commission and the controlling board have approved the basic 763
project cost of the district's classroom facilities needs as 764
specified in division (D) of this section. The board shall submit 765
its resolution to the commission not later than ten days after the 766
date the resolution is adopted by the board.767

       The commission shall not consider any resolution that is 768
submitted pursuant to division (B)(2) of this section, as amended 769
by this amendment, sooner than September 14, 2000.770

       (3) For purposes of determining when a district that enters 771
into an agreement under this section becomes eligible for 772
assistance under sections 3318.01 to 3318.20 of the Revised Code, 773
the commission shall use one of the following as applicable:774

       (a) Except for a tangible personal property phase-out 775
impacted district, the district's percentile ranking determined at 776
the time the district entered into the agreement under this 777
section, as prescribed by division (A)(2) of this section;778

       (b) For a tangible personal property phase-out impacted 779
district, the lesser of (i) the district's percentile ranking 780
determined at the time the district entered into the agreement 781
under this section, as prescribed by division (A)(2) of this 782
section, or (ii) the district's current percentile ranking under 783
section 3318.011 of the Revised Code.784

       (4) Any project under this section shall comply with section 785
3318.03 of the Revised Code and with any specifications for plans 786
and materials for classroom facilities adopted by the commission 787
under section 3318.04 of the Revised Code.788

       (5) If a school district that enters into an agreement under 789
this section has not begun a project applying local resources as 790
provided for under that agreement at the time the district is 791
notified by the commission that it is eligible to receive state 792
assistance under sections 3318.01 to 3318.20 of the Revised Code, 793
all assessment and agreement documents entered into under this 794
section are void.795

       (6) Only construction of or repairs to classroom facilities 796
that have been approved by the commission and have been therefore 797
included as part of a district's basic project cost qualify for 798
application of local resources under this section.799

       (C) Based on the results of on-site visits and assessment, 800
the commission shall determine the basic project cost of the 801
school district's classroom facilities needs. The commission shall 802
determine the school district's portion of such basic project 803
cost, which shall be the greater of:804

       (1) The required percentage of the basic project costs, 805
determined based on the school district's percentile ranking;806

       (2) An amount necessary to raise the school district's net 807
bonded indebtedness, as of the fiscal year the commission and the 808
school district enter into the agreement under division (B) of 809
this section, to within five thousand dollars of the required 810
level of indebtedness.811

       (D)(1) When the commission determines the basic project cost 812
of the classroom facilities needs of a school district and the 813
school district's portion of that basic project cost under 814
division (C) of this section, the project shall be conditionally 815
approved. Such conditional approval shall be submitted to the 816
controlling board for approval thereof. The controlling board 817
shall forthwith approve or reject the commission's determination, 818
conditional approval, and the amount of the state's portion of the 819
basic project cost; however, no state funds shall be encumbered 820
under this section. Upon approval by the controlling board, the 821
school district board may identify a discrete part of its 822
classroom facilities needs, which shall include only new 823
construction of or additions or major repairs to a particular 824
building, to address with local resources. Upon identifying a part 825
of the school district's basic project cost to address with local 826
resources, the school district board may allocate any available 827
school district moneys to pay the cost of that identified part, 828
including the proceeds of an issuance of bonds if approved by the 829
electors of the school district.830

       All local resources utilized under this division shall first 831
be deposited in the project construction account required under 832
section 3318.08 of the Revised Code.833

       (2) Unless the school district board exercises its option 834
under division (D)(3) of this section, for a school district to 835
qualify for participation in the program authorized under this 836
section, one of the following conditions shall be satisfied:837

       (a) The electors of the school district by a majority vote 838
shall approve the levy of taxes outside the ten-mill limitation 839
for a period of twenty-three years at the rate of not less than 840
one-half mill for each dollar of valuation to be used to pay the 841
cost of maintaining the classroom facilities included in the basic 842
project cost as determined by the commission. The form of the 843
ballot to be used to submit the question whether to approve the 844
tax required under this division to the electors of the school 845
district shall be the form for an additional levy of taxes 846
prescribed in section 3318.361 of the Revised Code, which may be 847
combined in a single ballot question with the questions prescribed 848
under section 5705.218 of the Revised Code.849

       (b) As authorized under division (C) of section 3318.05 of 850
the Revised Code, the school district board shall earmark from the 851
proceeds of a permanent improvement tax levied under section 852
5705.21 of the Revised Code, an amount equivalent to the 853
additional tax otherwise required under division (D)(2)(a) of this 854
section for the maintenance of the classroom facilities included 855
in the basic project cost as determined by the commission.856

       (c) As authorized under section 3318.051 of the Revised Code, 857
the school district board shall, if approved by the commission, 858
annually transfer into the maintenance fund required under section 859
3318.05 of the Revised Code the amount prescribed in section 860
3318.051 of the Revised Code in lieu of the tax otherwise required 861
under division (D)(2)(a) of this section for the maintenance of 862
the classroom facilities included in the basic project cost as 863
determined by the commission.864

        (d) If the school district board has rescinded the agreement 865
to make transfers under section 3318.051 of the Revised Code, as 866
provided under division (F) of that section, the electors of the 867
school district, in accordance with section 3318.063 of the 868
Revised Code, first shall approve the levy of taxes outside the 869
ten-mill limitation for the period specified in that section at a 870
rate of not less than one-half mill for each dollar of valuation.871

       (e) The school district board shall apply the proceeds of a 872
tax to leverage bonds as authorized under section 3318.052 of the 873
Revised Code or dedicate a local donated contribution in the 874
manner described in division (B) of section 3318.084 of the 875
Revised Code in an amount equivalent to the additional tax 876
otherwise required under division (D)(2)(a) of this section for 877
the maintenance of the classroom facilities included in the basic 878
project cost as determined by the commission.879

       (3) A school district board may opt to delay taking any of 880
the actions described in division (D)(2) of this section until the 881
school district becomes eligible for state assistance under 882
sections 3318.01 to 3318.20 of the Revised Code. In order to 883
exercise this option, the board shall certify to the commission a 884
resolution indicating the board's intent to do so prior to 885
entering into an agreement under division (B) of this section.886

       (4) If pursuant to division (D)(3) of this section a district 887
board opts to delay levying an additional tax until the district 888
becomes eligible for state assistance, it shall submit the 889
question of levying that tax to the district electors as follows:890

       (a) In accordance with section 3318.06 of the Revised Code if 891
it will also be necessary pursuant to division (E) of this section 892
to submit a proposal for approval of a bond issue;893

       (b) In accordance with section 3318.361 of the Revised Code 894
if it is not necessary to also submit a proposal for approval of a 895
bond issue pursuant to division (E) of this section.896

       (5) No state assistance under sections 3318.01 to 3318.20 of 897
the Revised Code shall be released until a school district board 898
that adopts and certifies a resolution under division (D) of this 899
section also demonstrates to the satisfaction of the commission 900
compliance with the provisions of division (D)(2) of this section.901

       Any amount required for maintenance under division (D)(2) of 902
this section shall be deposited into a separate fund as specified 903
in division (B) of section 3318.05 of the Revised Code.904

       (E)(1) If the school district becomes eligible for state 905
assistance under sections 3318.01 to 3318.20 of the Revised Code 906
based on its percentile ranking under division (B)(3) of this 907
section, the commission shall conduct a new assessment of the 908
school district's classroom facilities needs and shall recalculate 909
the basic project cost based on this new assessment. The basic 910
project cost recalculated under this division shall include the 911
amount of expenditures made by the school district board under 912
division (D)(1) of this section. The commission shall then 913
recalculate the school district's portion of the new basic project 914
cost, which shall be one of the following as applicable:915

       (a) Except for a tangible personal property phase-out 916
impacted district, the percentage of the original basic project 917
cost assigned to the school district as its portion under division 918
(C) of this section;919

       (b) For a tangible personal property phase-out impacted 920
district, the lesser of (i) the percentage of the original basic 921
project cost assigned to the school district as its portion under 922
division (C) of this section, or (ii) the percentage of the new 923
basic project cost determined under section 3318.032 of the 924
Revised Code using the district's current percentile ranking under 925
section 3318.011 of the Revised Code. The926

       The commission shall deduct the expenditure of school 927
district moneys made under division (D)(1) of this section from 928
the school district's portion of the basic project cost as 929
recalculated under this division. If the amount of school district 930
resources applied by the school district board to the school 931
district's portion of the basic project cost under this section is 932
less than the total amount of such portion as recalculated under 933
this division, the school district board by a majority vote of all 934
of its members shall, if it desires to seek state assistance under 935
sections 3318.01 to 3318.20 of the Revised Code, adopt a 936
resolution as specified in section 3318.06 of the Revised Code to 937
submit to the electors of the school district the question of 938
approval of a bond issue in order to pay any additional amount of 939
school district portion required for state assistance. Any tax 940
levy approved under division (D) of this section satisfies the 941
requirements to levy the additional tax under section 3318.06 of 942
the Revised Code.943

       (2) If the amount of school district resources applied by the 944
school district board to the school district's portion of the 945
basic project cost under this section is more than the total 946
amount of such portion as recalculated under this division (E)(1) 947
of this section, within one year after the school district's 948
portion is so recalculated under division (E)(1) of this section949
the commission may grant to the school district the difference 950
between the two calculated portions, but at no time shall the 951
commission expend any state funds on a project in an amount 952
greater than the state's portion of the basic project cost as 953
recalculated under this division (E)(1) of this section.954

       Any reimbursement under this division shall be only for local 955
resources the school district has applied toward construction cost 956
expenditures for the classroom facilities approved by the 957
commission, which shall not include any financing costs associated 958
with that construction.959

       The school district board shall use any moneys reimbursed to 960
the district under this division to pay off any debt service the 961
district owes for classroom facilities constructed under its 962
project under this section before such moneys are applied to any 963
other purpose. However, the district board first may deposit 964
moneys reimbursed under this division into the district's general 965
fund or a permanent improvement fund to replace local resources 966
the district withdrew from those funds, as long as, and to the 967
extent that, those local resources were used by the district for 968
constructing classroom facilities included in the district's basic 969
project cost.970

       (3) A tangible personal property phase-out impacted district 971
shall receive credit under division (E) of this section for the 972
expenditure of local resources pursuant to any prior agreement 973
authorized by this section, notwithstanding any recalculation of 974
its average taxable value.975

       Sec. 3769.28.  The tax commissioner shall collect from each 976
permit holder who conducts a pari-mutuel system of wagering where 977
the wagering is less than five million dollars a sum of money 978
equal to one-tenth of one per cent of the total amount wagered and 979
where the wagering is five million dollars or more a sum of money 980
equal to fifteen hundredths of one per cent of the total amount 981
wagered during any horse-racing meeting for the purpose of 982
providing operating revenue for the political subdivisions wherein 983
such meetings are held. Such moneys shall be collected by the 984
commissioner withinWithin ten days after the close of sucha985
meeting and shall be sent back to, the permit holder who paid the 986
tax. Such permit holdershall prepare and transmit to the tax 987
commissioner a final report showing the total amount wagered 988
during the horse-racing meeting and any other information required 989
by the commissioner relative to the tax levied by this section. 990
The final report shall be signed by the permit holder or an 991
authorized agent of the permit holder. The commissioner shall 992
prescribe the form of the final report.993

        The commissioner shall collect the tax due under this section 994
on amounts wagered during a horse-racing meeting within ten days 995
after the close of the meeting. The commissioner shall then 996
immediately forward the moneysamount collected to the chief 997
fiscal officers of the municipal corporations or townships in 998
which such horse-racing meeting took place and in which any such 999
facilities or accessory uses therefor were located. Such moneys1000
The amount collected shall be divided equally between the 1001
municipal corporations or townships in which such horse-racing 1002
meeting took place and in which any facilities or accessory uses 1003
therefor were located. Such municipal corporations or townships 1004
may distribute a portion of the moneys so received to any 1005
adjoining political subdivision which incurs increased expenses 1006
because of such horse-racing meeting.1007

       This section shall not apply to any agricultural society 1008
which holds a horse-racing permit.1009

       The amount collected under this section from any one permit 1010
holder shall not exceed fifteen thousand dollars from any one 1011
horse-racing meeting in any calendar year.1012

       Sec. 4301.42.  For the purpose of providing revenue for the 1013
support of the state, a tax is hereby levied on the sale of beer 1014
in sealed bottles and cans having twelve ounces or less of liquid 1015
content, at the rate of fourteen one-hundredths of one cent on 1016
each ounce of liquid content or fractional part of each ounce of 1017
liquid content, and on such containers in excess of twelve ounces, 1018
at the rate of eighty-four one-hundredths of one cent on each six 1019
ounces of liquid content or fractional part of each six ounces of 1020
liquid content. Sections 4307.01 to 4307.12 of the Revised Code 1021
apply in the administration of that tax. Manufacturers, bottlers, 1022
and canners of and wholesale dealers in beer, wholesale dealers in 1023
beer, and S permit holders have the duty to pay the tax imposed by 1024
this section and are entitled to the privileges in the manner 1025
provided in section 4303.33 of the Revised Code.1026

       Sec. 4303.33.  (A) Every A-1 permit holder in this state, 1027
every bottler, importer, wholesale dealer, broker, producer, or 1028
manufacturer of beer outside this state and within the United 1029
States, and every B-1 permit holder and importer importing beer 1030
from any manufacturer, bottler, person, or group of persons 1031
however organized outside the United States for sale or 1032
distribution for sale in this state, on or before the eighteenth 1033
day of each month, shall make and file with the tax commissioner 1034
upon a form prescribed by the tax commissioner an advance tax 1035
payment in an amount estimated to equal the taxpayer's tax 1036
liability for the month in which the advance tax payment is made. 1037
If the advance tax payment credits claimed on the report are for 1038
advance tax payments received by the tax commissioner on or before 1039
the eighteenth day of the month covered by the report, the 1040
taxpayer is entitled to an additional credit of three per cent of 1041
the advance tax payment and a discount of three per cent shall be 1042
allowed the taxpayer at the time of filing the report if filed as 1043
provided in division (B) of this section on any amount by which 1044
the tax liability reflected in the report exceeds the advance tax 1045
payment estimate by not more than ten per cent. The additional 1046
three per cent credit and three per cent discount shall be in 1047
consideration for advancing the payment of the tax and other 1048
services performed by the permit holder and other taxpayers in the 1049
collection of the tax.1050

       "Advance tax payment credit" means credit for payments made 1051
by an A-1 or B-1 permit holder and any other persons during the 1052
period covered by a report which was made in anticipation of the 1053
tax liability required to be reported on that report.1054

       "Tax liability" as used in division (A) of this section means 1055
the total gross tax liability of an A-1 or B-1 permit holder and 1056
any other persons for the period covered by a report before any 1057
allowance for credits and discount.1058

       (B) Every A-1 permit holder in this state, every bottler, 1059
importer, wholesale dealer, broker, producer, or manufacturer of 1060
beer outside this state and within the United States, and every 1061
B-1 permit holder importing beer from any manufacturer, bottler, 1062
person, or group of persons however organized outside the United 1063
States, and every S permit holder, on or before the tenth day of 1064
each month, shall make and file a report for the preceding month 1065
upon a form prescribed by the tax commissioner which report shall 1066
show the amount of beer produced, sold, and distributed for sale 1067
in this state by the A-1 permit holder, sold and distributed for 1068
sale in this state by each manufacturer, bottler, importer, 1069
wholesale dealer, or broker outside this state and within the 1070
United States, and the amount of beer imported into this state 1071
from outside the United States and sold and distributed for sale 1072
in this state by the B-1 permit holder or importer, and the amount 1073
of beer sold in this state by the S permit holder.1074

       The report shall be filed by mailing it to the tax 1075
commissioner, together with payment of the tax levied by sections 1076
4301.42 and 4305.01 of the Revised Code shown to be due on the 1077
report after deduction of advance payment credits and any 1078
additional credits or discounts provided for under this section.1079

       (C)(1) Every A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S permit 1080
holder in this state, on or before the eighteenth day of each 1081
month, shall make and file a report with the tax commissioner upon 1082
a form prescribed by the tax commissioner which report shall show, 1083
on the report of each A-2, A-4, B-2a, and S permit holder the 1084
amount of wine, cider, and mixed beverages produced and sold, or 1085
sold in this state by each such A-2, A-4, B-2a, and S permit 1086
holder for the next preceding calendar month and such other 1087
information as the tax commissioner requires, and on the report of 1088
each such B-2, B-3, B-4, and B-5 permit holder the amount of wine, 1089
cider, and mixed beverages purchased from an importer, broker, 1090
wholesale dealer, producer, or manufacturer located outside this 1091
state and sold and distributed in this state by such B-2, B-3, 1092
B-4, and B-5 permit holder, for the next preceding calendar month 1093
and such other information as the tax commissioner requires.1094

       (2) Every such A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S 1095
permit holder in this state shall remit with the report the tax 1096
levied by sections 4301.43 and, if applicable, 4301.432 of the 1097
Revised Code less a discount thereon of three per cent of the 1098
total tax so levied and paid, provided the return is filed 1099
together with remittance of the amount of tax shown to be due 1100
thereon, within the time prescribed. Any permit holder or other 1101
persons who fail to file a report under this section, for each day 1102
the person so fails, may be required to forfeit and pay into the 1103
state treasury the sum of one dollar as revenue arising from the 1104
tax imposed by sections 4301.42, 4301.43, 4301.432, and 4305.01 of 1105
the Revised Code, and that sum may be collected by assessment in 1106
the manner provided in section 4305.13 of the Revised Code.1107

       (3) If the tax commissioner determines that the quantity 1108
reported by a person does not warrant monthly reporting, the 1109
commissioner may authorize the filing of returns and the payment 1110
of the tax required by this section for periods longer than one 1111
month.1112

       (D) Every B-1 permit holder and importer in this state 1113
importing beer from any manufacturer, bottler, person, or group of 1114
persons however organized, outside the United States, if required 1115
by the tax commissioner shall post a bond payable to the state in 1116
such form and amount as the commissioner prescribes with surety to 1117
the satisfaction of the tax commissioner, conditioned upon the 1118
payment to the tax commissioner of taxes levied by sections 1119
4301.42 and 4305.01 of the Revised Code.1120

       (E) No such wine, beer, cider, or mixed beverages sold or 1121
distributed in this state shall be taxed more than once under 1122
sections 4301.42, 4301.43, and 4305.01 of the Revised Code.1123

       (F) As used in this section:1124

       (1) "Cider" has the same meaning as in section 4301.01 of the 1125
Revised Code.1126

       (2) "Wine" has the same meaning as in section 4301.01 of the 1127
Revised Code, except that "wine" does not include cider.1128

       (G) All money collected by the tax commissioner under this 1129
section shall be paid to the treasurer of state as revenue arising 1130
from the taxes levied by sections 4301.42, 4301.43, 4301.432, and 1131
4305.01 of the Revised Code.1132

       Sec. 4701.01.  As used in this chapter:1133

       (A) "Practice of public accounting" means performing or 1134
offering to perform any engagement that will result in the 1135
issuance of an attest report and, with respect to a person who 1136
holds a CPA certificate, PA registration, foreign certificate, or 1137
firm registration, any other services involving the use of 1138
accounting or auditing skills as established by rules adopted by 1139
the accountancy board.1140

       (B) "Public accounting firm" means a sole proprietorship, a 1141
partnership, a limited liability company, a professional 1142
association, a corporation-for-profit, or any other business 1143
organization that is engaged in the practice of public accounting 1144
in this state.1145

       (C) "Opinion report" means any opinion on a financial 1146
statement that is expressed in accordance with generally accepted 1147
auditing standards as to the fairness of presentation of 1148
information and that is used for guidance in financial 1149
transactions, for accounting, or for assessing the status or 1150
performance of commercial and noncommercial enterprises, whether 1151
public, private, or governmental.1152

       (D) "Peer review" means a study, appraisal, or review of one 1153
or more aspects of the professional work of a public accounting 1154
firm that meets the standards and requirements set forth by the 1155
accountancy board.1156

       (E) "Review report" means either of the following:1157

       (1) Any review report on a financial statement that is issued 1158
with respect to any of the following:1159

       (a) Interim financial information in accordance with 1160
generally accepted auditing standards;1161

       (b) The financial information of a nonpublic entity in 1162
accordance with statements on standards for accounting and review 1163
services;1164

       (c) The reliability of another party's written assertion in 1165
accordance with statements on standards for attestation 1166
engagements.1167

       (2) Any other review report on a financial statement that is 1168
not described in division (E)(1) of this section and that is 1169
issued in accordance with standards promulgated by the American 1170
institute of certified public accountants.1171

       (F) "Compilation report" means any compilation report on a 1172
financial statement that is issued with respect to financial 1173
information of a nonpublic entity in accordance with statements on 1174
standards for accounting and review services as promulgated by the 1175
American institute of certified public accountants.1176

       (G) "Examination report" means any examination report on a 1177
financial statement that is issued with respect to another party's 1178
written assertion in accordance with statements on standards for 1179
attestation engagements as promulgated by the American institute 1180
of certified public accountants.1181

       (H) "Agreed-upon procedures report" means any report that is 1182
on a financial statement and that is based on agreed-upon 1183
procedures issued with respect to another party's written 1184
assertion in accordance with statements on standards for 1185
attestation engagements as promulgated by the American institute 1186
of certified public accountants.1187

       (I) "Qualified firm" means a sole proprietorship, 1188
partnership, professional association, corporation-for-profit, 1189
limited liability company, or other business organization in which 1190
the individuals who own a majority of the business organization 1191
interests in the business organization and control the business 1192
organization hold an Ohio permit or a foreign certificate.1193

       (J) "Own" means any direct or indirect ownership of an equity 1194
interest in a public accounting firm or qualified firm.1195

       (K) "Control" or "controlled" means the right to exercise the 1196
majority of the voting equity interests in a public accounting 1197
firm or qualified firm with respect to any matter.1198

       (L) "Equity interest" means any capital interest or profit 1199
interest in a sole proprietorship, partnership, professional 1200
association, corporation-for-profit, limited liability company, or 1201
other business organization.1202

       (M) "Ohio permit" means a permit to practice public 1203
accounting issued under division (A) of section 4701.10 of the 1204
Revised Code that is not revoked or suspended.1205

       (N) "Ohio registration" means the registration under division 1206
(B) of section 4701.10 of the Revised Code of a holder of a CPA 1207
certificate or PA registration who is not in the practice of 1208
public accounting in this state.1209

       (O) "Firm registration" or "registered firm" means 1210
registration as a public accounting firm under section 4701.04 of 1211
the Revised Code.1212

       (P) "PA registration" means registration as a public 1213
accountant under section 4701.07 of the Revised Code that is not 1214
revoked or suspended.1215

       (Q) "CPA certificate" means a certificate issued under 1216
section 4701.06 or 4701.061 of the Revised Code that is not 1217
revoked or suspended.1218

       (R) "Foreign certificate" means a license, permit,1219
certificate of, or registration issued to a certified public 1220
accountant issued under the laws of another state that authorizes 1221
the holder to practice public accounting in that state, is valid, 1222
is in good standing, and has not expired.1223

       (S) "Attest report" means an opinion report, review report, 1224
compilation report, examination report, agreed-upon procedures 1225
report, or any similar report prepared in accordance with 1226
standards established by the American institute of certified 1227
public accountants with respect to a financial statement or other 1228
financial information.1229

       (T) "Person" means any individual, corporation-for-profit, 1230
business trust, estate, partnership, limited liability company, 1231
professional association, or other business organization.1232

       (U) Technical terms that define specific public accounting 1233
engagements have the same meanings as in the professional 1234
standards promulgated by the American institute of certified 1235
public accountants.1236

       (V)(1) "Good moral character" means the combination of 1237
personal traits of honesty, integrity, attention to duty, 1238
forthrightness, and self-restraint that enables a person to 1239
discharge the duties of the accounting profession fully and 1240
faithfully.1241

       (2) A history of dishonest acts or felonious acts or 1242
convictions is sufficient to prove lack of good moral character if 1243
that history demonstrates by a preponderance of the evidence that 1244
the person lacks one or more of the personal traits referred to in 1245
division (V)(1) of this section. A person who has a felony 1246
conviction related to one or more of those personal traits bears 1247
the burden of establishing the person's present good moral 1248
character, including the person's full and complete rehabilitation 1249
subsequent to the conviction. If less than one year has passed 1250
since the completion of the person's sentence on a felony 1251
conviction, including any period under a community control 1252
sanction or post-release control, the board may delay any 1253
determination of the person's good moral character until one year 1254
has passed from the time of the completion of that sentence.1255

       (3) In determining whether a person who has a felony 1256
conviction has met the person's burden of proof described in 1257
division (V)(2) of this section, the accountancy board may 1258
consider the following factors:1259

       (a) The person's path toward professional licensing following 1260
completion of the person's sentence;1261

       (b) The nature and degree of the person's academic 1262
achievements;1263

       (c) The nature and degree of the person's employment 1264
following completion of the person's sentence;1265

       (d) The person's degree of self-sufficiency following 1266
completion of the person's sentence;1267

       (e) The nature and degree of the person's other 1268
responsibilities following completion of the person's sentence;1269

       (f) The person's conviction for any other criminal offense 1270
since completion of the person's sentence for the person's first 1271
felony conviction;1272

       (g) Whether the person's application or presentation contains 1273
any inconsistencies or misleading explanations that convince the 1274
board that either the person or the person's attorney is trying to 1275
keep the board from acquiring a true, though damaging, 1276
representation of the person's character;1277

       (h) The nature and circumstances of the dishonest acts or 1278
felonious acts or convictions of the person;1279

       (i) Any other specifically identifiable information that the 1280
board determines to be relevant to the person's ability to 1281
discharge the duties of the accounting profession fully and 1282
faithfully.1283

       Sec. 4701.04.  (A) No public accounting firm located in this 1284
state shall engage in the practice of public accounting in this 1285
state unless it registers with the accountancy board and pays a 1286
registration fee set by the board.1287

       (B) Public accounting firms shall apply for initial 1288
registration within ninety days after formation or within ninety 1289
days after the commencement of practicing public accounting in 1290
this state. All public accounting firms shall renew their 1291
registration triennially. All public accounting firms shall submit 1292
with their initial and renewal registration applications all of 1293
the following:1294

       (1) A list of the names, addresses, and certificate or 1295
registration numbers of all individuals who hold an Ohio permit 1296
and who own an equity interest in the public accounting firm or 1297
are employed by the public accounting firm;1298

       (2) A list of the names and addresses of each person who does 1299
not hold an Ohio permit or a foreign certificate and who owns an 1300
equity interest in the public accounting firm if the person's 1301
principal place of business is located in this state;1302

       (3) A statement that the public accounting firm and each 1303
person who owns an equity interest in the public accounting firm 1304
or is employed by the public accounting firm and who does not hold 1305
an Ohio permit or a foreign certificate is in compliance with 1306
divisions (C) and (D) of this section.1307

       (C) A public accounting firm shall satisfy all of the 1308
following requirements in order to register:1309

       (1) Except as provided in division (C)(5) of this section, 1310
each partner, shareholder, member, or other person who owns an 1311
equity interest in the public accounting firm shall hold an Ohio 1312
permit or a foreign certificate.1313

       (2) The chief executive of any office of a public accounting 1314
firm located in or doing business in this state shall hold1315
designate an individual who holds an Ohio permit or a foreign 1316
certificatewho shall be responsible for the proper registration 1317
of the firm. The public accounting firm shall identify this 1318
individual to the board.1319

       (3) Each individual in a public accounting firm who signs any 1320
attest report issued from an office of the public accounting firm 1321
located in this state shall hold an Ohio permit.1322

       (4) An individual who owns an equity interest in the public 1323
accounting firm or is employed by the public accounting firm and 1324
who holds an Ohio permit or a foreign certificate, or a qualified 1325
firm that owns an equity interest in the public accounting firm, 1326
shall assume ultimate responsibility for any attest report issued 1327
from an office of the public accounting firm located in this 1328
state.1329

       (5) Any person who does not hold an Ohio permit or a foreign 1330
certificate and who holds an equity interest in the public 1331
accounting firm shall satisfy the conditions set forth in division 1332
(D) of this section.1333

       (6) The public accounting firm shall provide for the transfer 1334
of the equity interest owned by persons who do not hold an Ohio 1335
permit or a foreign certificate to either the public accounting 1336
firm or to another person who owns an equity interest in the firm 1337
if a person who does not hold an Ohio permit or a foreign 1338
certificate withdraws from or ceases to be employed by the public 1339
accounting firm. The public accounting firm may make payments in 1340
connection with the person's withdrawal from the firm to that 1341
person or, if that person is deceased or dissolved, to the 1342
person's estate or successor in interest.1343

       (D) A person who does not hold an Ohio permit or a foreign 1344
certificate may own an equity interest in a public accounting firm 1345
if all of the following conditions are met:1346

       (1) All of the individuals who hold an Ohio permit or a 1347
foreign certificate and who own equity interests in the public 1348
accounting firm, and qualified firms that own equity interests in 1349
the public accounting firm, own, in the aggregate, a majority of 1350
the equity interests in the public accounting firm and control the 1351
public accounting firm.1352

       (2) The person does not assume or use any titles or 1353
designations specified in division (A) of section 4701.14 of the 1354
Revised Code. The person may designate or refer to the person as a 1355
shareholder, partner, member, principal, owner, or officer of the 1356
public accounting firm and also may use any other title that the 1357
board authorizes by rule.1358

       (3) The person is not in violation of any standard regarding 1359
the character or conduct of that person that the board establishes 1360
by rule.1361

       (4) The person's participation in the business of the public 1362
accounting firm is the person's principal occupation and consists 1363
of providing services to or on behalf of the public accounting 1364
firm, and the person is not functioning solely or predominately as 1365
a passive investor in the public accounting firm.1366

       (5) The person has graduated with a baccalaureate or higher 1367
degree conferred by a college or university approved by the board.1368

       (6) The person meets or exceeds the continuing education 1369
requirements that the board establishes by rule.1370

       (7)(6) A person who holds a professional license, 1371
registration, or certification issued by this state or another 1372
state complies with the requirements of that license, 1373
registration, or certification.1374

       (8)(7) The person abides by the code of conduct of the 1375
American institute of certified public accountants or a comparable 1376
code of professional conduct that the board adopts by rule.1377

       (9)(8) The person complies with all applicable provisions of 1378
this chapter and the rules adopted by the board.1379

       (E) A person who owns a voting equity interest in a public 1380
accounting firm may not delegate, by proxy or otherwise, the duty 1381
to exercise any voting rights to a person that does not hold an 1382
Ohio permit or a foreign certificate or to a person that is not a 1383
qualified firm.1384

       (F) As a condition for initial or renewal registration of a 1385
public accounting firm on and after January 1, 1993, the board, by 1386
rule, shall require that each public accounting firm undergo a 1387
peer review to determine the public accounting firm's degree of 1388
compliance in the practice of public accounting with generally 1389
accepted accounting principles, generally accepted auditing 1390
standards, and other generally accepted technical standards as 1391
defined by the board in rule, unless the public accounting firm 1392
meets one of the exceptions in division (J) of this section.1393

       (G) The board shall adopt rules establishing guidelines for 1394
peer reviews, and may authorize an agent to administer all or part 1395
of the board's peer review program and to assess a reasonable fee 1396
to firms to cover the costs incurred by the agent for program 1397
administration. The rules shall do all of the following:1398

       (1) Designate a peer review committee consisting of 1399
accounting professionals to serve as advisors to the board and to 1400
ensure that the board's guidelines are followed. The board may 1401
establish fair and reasonable compensation for the committee 1402
members to be paid for time they spend conducting committee 1403
business.1404

       (2) Require that the peer review be conducted by a reviewer 1405
that is both independent of the public accounting firm reviewed 1406
and qualified pursuant to board rules;1407

       (3) Require that the standards and practices applied by the 1408
reviewer be at least as stringent as those applied by the American 1409
institute of certified public accountants;1410

       (4) Prohibit the use or disclosure of information obtained by 1411
members of the board or a committee of peer reviewers during or in 1412
connection with the peer review process for purposes other than 1413
those related to determining the degree of compliance by the 1414
public accounting firm with generally accepted accounting 1415
principles, generally accepted auditing standards, and other 1416
generally accepted technical standards as defined by the board in 1417
rule. Division (G)(4) of this section does not apply to the use or 1418
disclosure of information that is described in division (K)(3) of 1419
this section or that is necessary to comply with any provision of 1420
law.1421

       (H)(1) If a peer review report indicates that a public 1422
accounting firm does not comply with standards and practices set 1423
forth in the rules adopted by the board guidelines, the board, in 1424
its discretion, may hold a hearing to review the results of the 1425
peer review report. If the board, after conducting the hearingor 1426
its authorized peer review program administrator, determines that 1427
the public accounting firm does not comply with the standards and 1428
practices, it may issue an order that requiresrequire both of the 1429
following:1430

       (a) Remedial or disciplinary action, which may include any of 1431
the following:1432

       (i) Requiring employees of the public accounting firm to 1433
complete general or specific continuing professional education 1434
courses;1435

       (ii) Requiring the public accounting firm to undergo peer 1436
review more frequently than triennially and peer review that is 1437
conducted in whole or part under the direct supervision of the 1438
board or its designee;1439

       (iii) Any other remedial action specified by the board;1440

       (iv) Imposing any disciplinary measures set forth in division 1441
(B) of section 4701.16 of the Revised Code.1442

       (b) An affidavit from the public accounting firm submitted 1443
within the time specified by the board indicating completion of 1444
required remedial actions.1445

       (2) If the board, or its authorized peer review program 1446
administrator, determines that a public accounting firm has not 1447
complied with any requirement ordered under division (H) of this 1448
section, or if the board determines, after the review of a peer 1449
review report, that the public accounting firm has a history of 1450
noncompliance with standards and practices set forth in board 1451
rules, the board may hold a hearing to determine the extent of the 1452
firm's noncompliance. If the board, after conducting the hearing, 1453
determines that the public accounting firm does not comply with 1454
appropriate standards and practices, the board may issue an order 1455
that imposes any disciplinary measure set forth in division (B) of 1456
section 4701.16 of the Revised Code.1457

       (3) Notwithstanding divisions (K)(1) and (2) of this section, 1458
all matters relating to the procedures for determining compliance 1459
with the standards and practices under division (H)(1)(2) of this 1460
section are subject to Chapter 119. of the Revised Code, including 1461
the notice and conduct of any hearing and the issuance and appeal 1462
of any order. Remedial orders made under division (H)(1) of this 1463
section are not subject to Chapter 119. of the Revised Code.1464

       (I) The public accounting firm reviewed shall pay for any 1465
peer review performed.1466

       (J) The board may exempt a public accounting firm from the 1467
requirement to undergo a peer review if the public accounting firm 1468
submits to the board a written and notarized statement that the 1469
public accounting firm meets at least one of the following grounds 1470
for exemption identified in the statement:1471

       (1) Within three years of the date of application for initial 1472
or renewal registration, the public accounting firm has been 1473
subject tocompleted a peer review acceptable to the board and 1474
conducted pursuant to standards not less stringent than the peer1475
review standards appliedpromulgated by the American institute of 1476
certified public accountants. A peer review that does not comply 1477
with standards and practices set forth in the rules adopted by the 1478
board and that may subject a public accounting firm to remedial or 1479
disciplinary action pursuant to division (H) of this section, does 1480
not qualify as an acceptable peer review. The public accounting 1481
firm shall submit to the board a copy of the results of the peer 1482
review and any additional documentation required by the board. The 1483
board shall not require submittal of the working papers related to 1484
the peer review process.1485

       (2) Within three years of the date of application for initial 1486
or renewal registration, the public accounting firm has undergone1487
completed a peer review acceptable to the board that was conducted 1488
in another state or foreign country. The public accounting firm 1489
shall submit to the board a copy of the results of the peer review 1490
and any additional documentation required by the board, including 1491
a detailed report of the procedures and standards applied by the 1492
reviewer.1493

       (3) The public accounting firm has never practiced public 1494
accounting in this state or any other state or foreign country 1495
and, will undergocomplete a peer review acceptable to the board1496
within eighteen months of initial registration, and will review 1497
its registration with the board two years after initial 1498
registration as specified in rules the board adopts.1499

       (4) The public accounting firm, on a schedule as required by 1500
rule adopted by the board, submits a report to the board that 1501
states all of the following:1502

       (a) The public accounting firm does not undertake any 1503
engagement that will result in the issuance of an attest report or 1504
other engagement that is subject to peer review in accordance with 1505
division (F) of this section.1506

       (b) Within the next three years, the public accounting firm 1507
does not intend to undertake any engagement that will result in 1508
the issuance of any attest report.1509

       (c) The public accounting firm agrees to notify the board 1510
within ninety days after accepting any engagement that will result 1511
in the issuance of any attest report or other engagement that is 1512
subject to peer review in accordance with division (F) of this 1513
section and will undergocomplete a peer review acceptable to the 1514
board within one year after the acceptance of an engagement of 1515
that nature.1516

       (5) Subject to the board's approval,and for reasons of 1517
personal health, military service, or other good cause as defined 1518
in rules the board adopts, the public accounting firm is entitled 1519
to an exemption.1520

       (K) In any civil action, arbitration, or administrative 1521
proceeding involving a public accounting firm, all of the 1522
following shall apply:1523

       (1) The proceedings, records, and work papers of any 1524
reviewer, including board members and review committee members, 1525
involved in the peer review process are privileged and not subject 1526
to discovery, subpoena, or other means of legal process and may 1527
not be introduced into evidence.1528

       (2) No reviewer, including board members and review committee 1529
members, involved in the peer review process shall be permitted or 1530
required to testify as to any matters produced, presented, 1531
disclosed, or discussed during or in connection with the peer 1532
review process or shall be required to testify to any finding, 1533
recommendation, evaluation, opinion, or other actions of those 1534
committees or their members.1535

       (3) No privilege exists under this section for either of the 1536
following:1537

       (a) Information presented or considered in the peer review 1538
process that was otherwise available to the public;1539

       (b) Materials prepared in connection with a particular 1540
engagement merely because they subsequently are presented or 1541
considered as part of the peer review process.1542

       (L)(1) If a peer review report indicates that a public 1543
accounting firm complies with standards and practices set forth in 1544
rules adopted by the board guidelines, the board shall destroy all 1545
documents and reports related to the peer review within thirty 1546
days after the board completes its review of the report. If1547

       (2) If a peer review report indicates that a public 1548
accounting firm does not comply with those standards and practices 1549
set forth in rules adopted by the board, the board shall retain 1550
all documents and reports related to the peer review until 1551
completion of the next peer review that complies with standards 1552
and practices set forth in rules adopted by the board pursuant to 1553
division (G) of this section. The board also may use these 1554
documents to determine a history of noncompliance with standards 1555
and practices in any proceeding held under division (H)(2) of this 1556
section.1557

       Sec. 5703.061. The tax commissioner may cancel a debt owed to 1558
the state arising from any tax administered by the commissioner if 1559
the total amount of the debt does not exceed fifty dollars and if 1560
the debt consists only of unpaid taxes due for a single reporting 1561
period and of any penalty, interest, assessment, or other charge 1562
arising from such unpaid taxes. 1563

       Sec. 5703.261. If(A) As used in this section:1564

        (1) "Instrument" has the same meaning as in section 1303.03 1565
of the Revised Code.1566

        (2) "Financial transaction device" has the same meaning as in 1567
section 113.40 of the Revised Code.1568

        (B) If a taxpayer or employer required by any tax 1569
administered by the department of taxation to pay taxes, 1570
penalties, or interest makes payment of the taxes, penalties, or 1571
interest with a nonnegotiable or dishonored instrument, an 1572
instrument that is determined to be nonnegotiable, or with any 1573
financial transaction device that is declined, returned, or 1574
dishonored, a penalty of fifty dollars shall be added to the 1575
amount due. The penalty imposed by this section shall be assessed 1576
and collected in the same manner as the taxes, penalties, or 1577
interest. All or part of any penalty imposed under this section 1578
may be abated by the tax commissioner. The commissioner may assess 1579
only one penalty under this section against the same instrument or 1580
the same financial transaction device for the same payment.1581

       Sec. 5703.37.  (A)(1) Except as provided in division (B) of 1582
this section, whenever service of a notice or order is required in 1583
the manner provided in this section, a copy of the notice or order 1584
shall be served upon the person affected thereby either by 1585
personal service, by certified mail, or by a delivery service 1586
authorized under section 5703.056 of the Revised Code that 1587
notifies the tax commissioner of the date of delivery.1588

       (2) With the permission of the person affected by the notice 1589
or order, the commissioner may enter into a written agreement to 1590
deliver a notice or order byIn lieu of serving a copy of a notice 1591
or order through one of the means provided in division (A)(1) of 1592
this section, the commissioner may serve a notice or order upon 1593
the person affected thereby through alternative means as provided 1594
in this section, including, but not limited to, delivery by secure 1595
electronic mail as provided in division (F) of this section. 1596
Delivery by such means satisfies the requirements for delivery 1597
under this section.1598

       (B)(1)(a) If certified mail is returned because of an 1599
undeliverable address, the commissioner shall first utilize 1600
reasonable means to ascertain a new last known address, including 1601
the use of a change of address service offered by the United 1602
States postal service or an authorized delivery service under 1603
section 5703.056 of the Revised Code. If, after using reasonable 1604
means, the commissioner is unable to ascertain a new last known 1605
address, the assessment is final for purposes of section 131.02 of 1606
the Revised Code sixty days after the notice or order sent by 1607
certified mail is first returned to the commissioner, and the 1608
commissioner shall certify the notice or order, if applicable, to 1609
the attorney general for collection under section 131.02 of the 1610
Revised Code.1611

       (b) Notwithstanding certification to the attorney general 1612
under division (B)(1)(a) of this section, once the commissioner or 1613
attorney general, or the designee of either, makes an initial 1614
contact with the person to whom the notice or order is directed, 1615
the person may protest an assessment by filing a petition for 1616
reassessment within sixty days after the initial contact. The 1617
certification of an assessment under division (B)(1)(a) of this 1618
section is prima-facie evidence that delivery is complete and that 1619
the notice or order is served.1620

       (2) If mailing of a notice or order by certified mail is 1621
returned for some cause other than an undeliverable address, the 1622
tax commissioner shall resend the notice or order by ordinary 1623
mail. The notice or order shall show the date the commissioner 1624
sends the notice or order and include the following statement:1625

       "This notice or order is deemed to be served on the addressee 1626
under applicable law ten days from the date this notice or order 1627
was mailed by the commissioner as shown on the notice or order, 1628
and all periods within which an appeal may be filed apply from and 1629
after that date."1630

       Unless the mailing is returned because of an undeliverable 1631
address, the mailing of that information is prima-facie evidence 1632
that delivery of the notice or order was completed ten days after 1633
the commissioner sent the notice or order by ordinary mail and 1634
that the notice or order was served.1635

       If the ordinary mail is subsequently returned because of an 1636
undeliverable address, the commissioner shall proceed under 1637
division (B)(1)(a) of this section. A person may challenge the 1638
presumption of delivery and service under this division in 1639
accordance with division (C) of this section.1640

       (C)(1) A person disputing the presumption of delivery and 1641
service under division (B) of this section bears the burden of 1642
proving by a preponderance of the evidence that the address to 1643
which the notice or order was sent was not an address with which 1644
the person was associated at the time the commissioner originally 1645
mailed the notice or order by certified mail. For the purposes of 1646
this section, a person is associated with an address at the time 1647
the commissioner originally mailed the notice or order if, at that 1648
time, the person was residing, receiving legal documents, or 1649
conducting business at the address; or if, before that time, the 1650
person had conducted business at the address and, when the notice 1651
or order was mailed, the person's agent or the person's affiliate 1652
was conducting business at the address. For the purposes of this 1653
section, a person's affiliate is any other person that, at the 1654
time the notice or order was mailed, owned or controlled at least 1655
twenty per cent, as determined by voting rights, of the 1656
addressee's business.1657

       (2) If the person elects to protest an assessment certified 1658
to the attorney general for collection, the person must do so 1659
within sixty days after the attorney general's initial contact 1660
with the person. The attorney general may enter into a compromise 1661
with the person under sections 131.02 and 5703.06 of the Revised 1662
Code if the person does not file a petition for reassessment with 1663
the tax commissioner.1664

       (D) Nothing in this section prohibits the tax commissioner or 1665
the commissioner's designee from delivering a notice or order by 1666
personal service.1667

       (E) Collection actions taken pursuant to section 131.02 of 1668
the Revised Code upon any assessment being challenged under 1669
division (B)(1)(b) of this section shall be stayed upon the 1670
pendency of an appeal under this section. If a petition for 1671
reassessment is filed pursuant to this section on a claim that has 1672
been certified to the attorney general for collection, the claim 1673
shall be uncertified.1674

       (F) The commissioner may serve a notice or order upon the 1675
person affected by the notice or order through secure electronic 1676
means only with the person's consent. The commissioner must inform 1677
the recipient, electronically or by mail, that a notice or order 1678
is available for electronic review and provide instructions to 1679
access and print the notice or order. The recipient's electronic 1680
access of the notice or order satisfies the requirements for 1681
delivery under this section. If the recipient fails to access the 1682
notice or order electronically within ten business days, the 1683
notice or order shall be served upon the person through one of the 1684
means provided in division (A)(1) of this section. 1685

       (G) As used in this section:1686

       (1) "Last known address" means the address the department has 1687
at the time the document is originally sent by certified mail, or 1688
any address the department can ascertain using reasonable means 1689
such as the use of a change of address service offered by the 1690
United States postal service or an authorized delivery service 1691
under section 5703.056 of the Revised Code.1692

       (2) "Undeliverable address" means an address to which the 1693
United States postal service or an authorized delivery service 1694
under section 5703.056 of the Revised Code is not able to deliver 1695
a notice or order, except when the reason for nondelivery is 1696
because the addressee fails to acknowledge or accept the notice or 1697
order.1698

       Sec. 5703.47.  (A) As used in this section, "federal 1699
short-term rate" means the rate of the average market yield on 1700
outstanding marketable obligations of the United States with 1701
remaining periods to maturity of three years or less, as 1702
determined under section 1274 of the "Internal Revenue Code of 1703
1986," 100 Stat. 2085, 26 U.S.C.A. 1274, for July of the current 1704
year.1705

       (B) On the fifteenth day of October of each year, the tax 1706
commissioner shall determine the federal short-term rate. For 1707
purposes of any section of the Revised Code requiring interest to 1708
be computed at the rate per annum required by this section, the 1709
rate determined by the commissioner under this section, rounded to 1710
the nearest whole number per cent, plus three per cent, shall be 1711
the interest rate per annum used in making the computation for 1712
interest that accrues during the following calendar year. For the 1713
purposes of sections 5719.041 and 5731.23 of the Revised Code, 1714
references to the "federal short-term rate" are references to the 1715
federal short-term rate as determined by the tax commissioner 1716
under this section rounded to the nearest whole number per cent.1717

       (C) Within ten days after the interest rate per annum is 1718
determined under this section, the tax commissioner shall notify 1719
the auditor of each county in writing of that rate of interest.1720

       Sec. 5709.084. Real and personal property comprising a 1721
convention center that is constructed or, in the case of personal 1722
property, acquired, after January 1, 2010, are exempt from 1723
taxation if the convention center is located in a county having a 1724
population, when construction of the convention center commences, 1725
of more than one million two hundred thousand according to the 1726
most recent federal decennial census, and if the convention 1727
center, or the land upon which the convention center is situated, 1728
is owned or leased by the county. For the purposes of this 1729
section, construction of the convention center commences upon the 1730
earlier of issuance of debt to finance all or a portion of the 1731
convention center, demolition of existing structures on the site, 1732
or grading of the site in preparation for construction.1733

       Real and personal property comprising a convention center 1734
owned by the largest city in a county having a population greater 1735
than seven hundred thousand but less than nine hundred thousand 1736
according to the most recent federal decennial census is exempt 1737
from taxation, regardless of whether the property is leased to or 1738
otherwise operated or managed by a person other than the city.1739

       Real and personal property comprising a convention center or 1740
arena owned by the largest city in a county having a population 1741
greater than two hundred thirty-five thousand but less than three 1742
hundred thousand according to the most recent federal decennial 1743
census is exempt from taxation, regardless of whether the property 1744
is leased to or otherwise operated or managed by a person other 1745
than the city.1746

       As used in this section, "convention center" hasand "arena" 1747
have the same meaningmeanings as in section 307.695 of the 1748
Revised Code.1749

       Sec. 5709.40.  (A) As used in this section:1750

       (1) "Blighted area" and "impacted city" have the same 1751
meanings as in section 1728.01 of the Revised Code.1752

       (2) "Business day" means a day of the week excluding 1753
Saturday, Sunday, and a legal holiday as defined under section 1754
1.14 of the Revised Code.1755

       (3) "Housing renovation" means a project carried out for 1756
residential purposes.1757

       (4) "Improvement" means the increase in the assessed value of 1758
any real property that would first appear on the tax list and 1759
duplicate of real and public utility property after the effective 1760
date of an ordinance adopted under this section were it not for 1761
the exemption granted by that ordinance. 1762

       (5) "Incentive district" means an area not more than three 1763
hundred acres in size enclosed by a continuous boundary in which a 1764
project is being, or will be, undertaken and having one or more of 1765
the following distress characteristics:1766

       (a) At least fifty-one per cent of the residents of the 1767
district have incomes of less than eighty per cent of the median 1768
income of residents of the political subdivision in which the 1769
district is located, as determined in the same manner specified 1770
under section 119(b) of the "Housing and Community Development Act 1771
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended;1772

       (b) The average rate of unemployment in the district during 1773
the most recent twelve-month period for which data are available 1774
is equal to at least one hundred fifty per cent of the average 1775
rate of unemployment for this state for the same period.1776

       (c) At least twenty per cent of the people residing in the 1777
district live at or below the poverty level as defined in the 1778
federal Housing and Community Development Act of 1974, 42 U.S.C. 1779
5301, as amended, and regulations adopted pursuant to that act.1780

       (d) The district is a blighted area.1781

       (e) The district is in a situational distress area as 1782
designated by the director of development under division (F) of 1783
section 122.23 of the Revised Code.1784

       (f) As certified by the engineer for the political 1785
subdivision, the public infrastructure serving the district is 1786
inadequate to meet the development needs of the district as 1787
evidenced by a written economic development plan or urban renewal 1788
plan for the district that has been adopted by the legislative 1789
authority of the subdivision.1790

       (g) The district is comprised entirely of unimproved land 1791
that is located in a distressed area as defined in section 122.23 1792
of the Revised Code.1793

       (6) "Project" means development activities undertaken on one 1794
or more parcels, including, but not limited to, construction, 1795
expansion, and alteration of buildings or structures, demolition, 1796
remediation, and site development, and any building or structure 1797
that results from those activities.1798

       (7) "Public infrastructure improvement" includes, but is not 1799
limited to, public roads and highways; water and sewer lines; 1800
environmental remediation; land acquisition, including acquisition 1801
in aid of industry, commerce, distribution, or research; 1802
demolition, including demolition on private property when 1803
determined to be necessary for economic development purposes; 1804
stormwater and flood remediation projects, including such projects 1805
on private property when determined to be necessary for public 1806
health, safety, and welfare; the provision of gas, electric, and 1807
communications service facilities; and the enhancement of public 1808
waterways through improvements that allow for greater public 1809
access. 1810

       (B) The legislative authority of a municipal corporation, by 1811
ordinance, may declare improvements to certain parcels of real 1812
property located in the municipal corporation to be a public 1813
purpose. Improvements with respect to a parcel that is used or to 1814
be used for residential purposes may be declared a public purpose 1815
under this division only if the parcel is located in a blighted 1816
area of an impacted city. Except with the approval under division 1817
(D) of this section of the board of education of each city, local, 1818
or exempted village school district within which the improvements 1819
are located, not more than seventy-five per cent of an improvement 1820
thus declared to be a public purpose may be exempted from real 1821
property taxation for a period of not more than ten years. The 1822
ordinance shall specify the percentage of the improvement to be 1823
exempted from taxation and the life of the exemption.1824

       An ordinance adopted or amended under this division shall 1825
designate the specific public infrastructure improvements made, to 1826
be made, or in the process of being made by the municipal 1827
corporation that directly benefit, or that once made will directly 1828
benefit, the parcels for which improvements are declared to be a 1829
public purpose. The service payments provided for in section 1830
5709.42 of the Revised Code shall be used to finance the public 1831
infrastructure improvements designated in the ordinance, for the 1832
purpose described in division (D)(1) of this section or as 1833
provided in section 5709.43 of the Revised Code.1834

       (C)(1) The legislative authority of a municipal corporation 1835
may adopt an ordinance creating an incentive district and 1836
declaring improvements to parcels within the district to be a 1837
public purpose and, except as provided in division (F) of this 1838
section, exempt from taxation as provided in this section, but no 1839
legislative authority of a municipal corporation that has a 1840
population that exceeds twenty-five thousand, as shown by the most 1841
recent federal decennial census, shall adopt an ordinance that 1842
creates an incentive district if the sum of the taxable value of 1843
real property in the proposed district for the preceding tax year 1844
and the taxable value of all real property in the municipal 1845
corporation that would have been taxable in the preceding year 1846
were it not for the fact that the property was in an existing 1847
incentive district and therefore exempt from taxation exceeds 1848
twenty-five per cent of the taxable value of real property in the 1849
municipal corporation for the preceding tax year. The ordinance 1850
shall delineate the boundary of the district and specifically 1851
identify each parcel within the district. A district may not 1852
include any parcel that is or has been exempted from taxation 1853
under division (B) of this section or that is or has been within 1854
another district created under this division. An ordinance may 1855
create more than one such district, and more than one ordinance 1856
may be adopted under division (C)(1) of this section.1857

       (2) Not later than thirty days prior to adopting an ordinance 1858
under division (C)(1) of this section, if the municipal 1859
corporation intends to apply for exemptions from taxation under 1860
section 5709.911 of the Revised Code on behalf of owners of real 1861
property located within the proposed incentive district, the 1862
legislative authority of a municipal corporation shall conduct a 1863
public hearing on the proposed ordinance. Not later than thirty 1864
days prior to the public hearing, the legislative authority shall 1865
give notice of the public hearing and the proposed ordinance by 1866
first class mail to every real property owner whose property is 1867
located within the boundaries of the proposed incentive district 1868
that is the subject of the proposed ordinance.1869

       (3)(a) An ordinance adopted under division (C)(1) of this 1870
section shall specify the life of the incentive district and the 1871
percentage of the improvements to be exempted, shall designate the 1872
public infrastructure improvements made, to be made, or in the 1873
process of being made, that benefit or serve, or, once made, will 1874
benefit or serve parcels in the district. The ordinance also shall 1875
identify one or more specific projects being, or to be, undertaken 1876
in the district that place additional demand on the public 1877
infrastructure improvements designated in the ordinance. The 1878
project identified may, but need not be, the project under 1879
division (C)(3)(b) of this section that places real property in 1880
use for commercial or industrial purposes. Except as otherwise 1881
permitted under that division, the service payments provided for 1882
in section 5709.42 of the Revised Code shall be used to finance 1883
the designated public infrastructure improvements, for the purpose 1884
described in division (D)(1) or (E) of this section, or as 1885
provided in section 5709.43 of the Revised Code.1886

       An ordinance adopted under division (C)(1) of this section on 1887
or after March 30, 2006, shall not designate police or fire 1888
equipment as public infrastructure improvements, and no service 1889
payment provided for in section 5709.42 of the Revised Code and 1890
received by the municipal corporation under the ordinance shall be 1891
used for police or fire equipment.1892

       (b) An ordinance adopted under division (C)(1) of this 1893
section may authorize the use of service payments provided for in 1894
section 5709.42 of the Revised Code for the purpose of housing 1895
renovations within the incentive district, provided that the 1896
ordinance also designates public infrastructure improvements that 1897
benefit or serve the district, and that a project within the 1898
district places real property in use for commercial or industrial 1899
purposes. Service payments may be used to finance or support 1900
loans, deferred loans, and grants to persons for the purpose of 1901
housing renovations within the district. The ordinance shall 1902
designate the parcels within the district that are eligible for 1903
housing renovation. The ordinance shall state separately the 1904
amounts or the percentages of the expected aggregate service 1905
payments that are designated for each public infrastructure 1906
improvement and for the general purpose of housing renovations.1907

       (4) Except with the approval of the board of education of 1908
each city, local, or exempted village school district within the 1909
territory of which the incentive district is or will be located, 1910
and subject to division (E) of this section, the life of an 1911
incentive district shall not exceed ten years, and the percentage 1912
of improvements to be exempted shall not exceed seventy-five per 1913
cent. With approval of the board of education, the life of a 1914
district may be not more than thirty years, and the percentage of 1915
improvements to be exempted may be not more than one hundred per 1916
cent. The approval of a board of education shall be obtained in 1917
the manner provided in division (D) of this section.1918

       (D)(1) If the ordinance declaring improvements to a parcel to 1919
be a public purpose or creating an incentive district specifies 1920
that payments in lieu of taxes provided for in section 5709.42 of 1921
the Revised Code shall be paid to the city, local, or exempted 1922
village, and joint vocational school district in which the parcel 1923
or incentive district is located in the amount of the taxes that 1924
would have been payable to the school district if the improvements 1925
had not been exempted from taxation, the percentage of the 1926
improvement that may be exempted from taxation may exceed 1927
seventy-five per cent, and the exemption may be granted for up to 1928
thirty years, without the approval of the board of education as 1929
otherwise required under division (D)(2) of this section.1930

       (2) Improvements with respect to a parcel may be exempted 1931
from taxation under division (B) of this section, and improvements 1932
to parcels within an incentive district may be exempted from 1933
taxation under division (C) of this section, for up to ten years 1934
or, with the approval under this paragraph of the board of 1935
education of the city, local, or exempted village school district 1936
within which the parcel or district is located, for up to thirty 1937
years. The percentage of the improvement exempted from taxation 1938
may, with such approval, exceed seventy-five per cent, but shall 1939
not exceed one hundred per cent. Not later than forty-five 1940
business days prior to adopting an ordinance under this section 1941
declaring improvements to be a public purpose that is subject to 1942
approval by a board of education under this division, the 1943
legislative authority shall deliver to the board of education a 1944
notice stating its intent to adopt an ordinance making that 1945
declaration. The notice regarding improvements with respect to a 1946
parcel under division (B) of this section shall identify the 1947
parcels for which improvements are to be exempted from taxation, 1948
provide an estimate of the true value in money of the 1949
improvements, specify the period for which the improvements would 1950
be exempted from taxation and the percentage of the improvement 1951
that would be exempted, and indicate the date on which the 1952
legislative authority intends to adopt the ordinance. The notice 1953
regarding improvements to parcels within an incentive district 1954
under division (C) of this section shall delineate the boundaries 1955
of the district, specifically identify each parcel within the 1956
district, identify each anticipated improvement in the district, 1957
provide an estimate of the true value in money of each such 1958
improvement, specify the life of the district and the percentage 1959
of improvements that would be exempted, and indicate the date on 1960
which the legislative authority intends to adopt the ordinance. 1961
The board of education, by resolution adopted by a majority of the 1962
board, may approve the exemption for the period or for the 1963
exemption percentage specified in the notice; may disapprove the 1964
exemption for the number of years in excess of ten, may disapprove 1965
the exemption for the percentage of the improvement to be exempted 1966
in excess of seventy-five per cent, or both; or may approve the 1967
exemption on the condition that the legislative authority and the 1968
board negotiate an agreement providing for compensation to the 1969
school district equal in value to a percentage of the amount of 1970
taxes exempted in the eleventh and subsequent years of the 1971
exemption period or, in the case of exemption percentages in 1972
excess of seventy-five per cent, compensation equal in value to a 1973
percentage of the taxes that would be payable on the portion of 1974
the improvement in excess of seventy-five per cent were that 1975
portion to be subject to taxation, or other mutually agreeable 1976
compensation. If an agreement is negotiated between the 1977
legislative authority and the board to compensate the school 1978
district for all or part of the taxes exempted, including 1979
agreements for payments in lieu of taxes under section 5709.42 of 1980
the Revised Code, the legislative authority shall compensate the 1981
joint vocational school district within which the parcel or 1982
district is located at the same rate and under the same terms 1983
received by the city, local, or exempted village school district.1984

       (3) The board of education shall certify its resolution to 1985
the legislative authority not later than fourteen days prior to 1986
the date the legislative authority intends to adopt the ordinance 1987
as indicated in the notice. If the board of education and the 1988
legislative authority negotiate a mutually acceptable compensation 1989
agreement, the ordinance may declare the improvements a public 1990
purpose for the number of years specified in the ordinance or, in 1991
the case of exemption percentages in excess of seventy-five per 1992
cent, for the exemption percentage specified in the ordinance. In 1993
either case, if the board and the legislative authority fail to 1994
negotiate a mutually acceptable compensation agreement, the 1995
ordinance may declare the improvements a public purpose for not 1996
more than ten years, and shall not exempt more than seventy-five 1997
per cent of the improvements from taxation. If the board fails to 1998
certify a resolution to the legislative authority within the time 1999
prescribed by this division, the legislative authority thereupon 2000
may adopt the ordinance and may declare the improvements a public 2001
purpose for up to thirty years, or, in the case of exemption 2002
percentages proposed in excess of seventy-five per cent, for the 2003
exemption percentage specified in the ordinance. The legislative 2004
authority may adopt the ordinance at any time after the board of 2005
education certifies its resolution approving the exemption to the 2006
legislative authority, or, if the board approves the exemption on 2007
the condition that a mutually acceptable compensation agreement be 2008
negotiated, at any time after the compensation agreement is agreed 2009
to by the board and the legislative authority.2010

       (4) If a board of education has adopted a resolution waiving 2011
its right to approve exemptions from taxation under this section 2012
and the resolution remains in effect, approval of exemptions by 2013
the board is not required under division (D) of this section. If a 2014
board of education has adopted a resolution allowing a legislative 2015
authority to deliver the notice required under division (D) of 2016
this section fewer than forty-five business days prior to the 2017
legislative authority's adoption of the ordinance, the legislative 2018
authority shall deliver the notice to the board not later than the 2019
number of days prior to such adoption as prescribed by the board 2020
in its resolution. If a board of education adopts a resolution 2021
waiving its right to approve agreements or shortening the 2022
notification period, the board shall certify a copy of the 2023
resolution to the legislative authority. If the board of education 2024
rescinds such a resolution, it shall certify notice of the 2025
rescission to the legislative authority.2026

       (5) If the legislative authority is not required by division 2027
(D) of this section to notify the board of education of the 2028
legislative authority's intent to declare improvements to be a 2029
public purpose, the legislative authority shall comply with the 2030
notice requirements imposed under section 5709.83 of the Revised 2031
Code, unless the board has adopted a resolution under that section 2032
waiving its right to receive such a notice.2033

       (E)(1) If a proposed ordinance under division (C)(1) of this 2034
section exempts improvements with respect to a parcel within an 2035
incentive district for more than ten years, or the percentage of 2036
the improvement exempted from taxation exceeds seventy-five per 2037
cent, not later than forty-five business days prior to adopting 2038
the ordinance the legislative authority of the municipal 2039
corporation shall deliver to the board of county commissioners of 2040
the county within which the incentive district will be located a 2041
notice that states its intent to adopt an ordinance creating an 2042
incentive district. The notice shall include a copy of the 2043
proposed ordinance, identify the parcels for which improvements 2044
are to be exempted from taxation, provide an estimate of the true 2045
value in money of the improvements, specify the period of time for 2046
which the improvements would be exempted from taxation, specify 2047
the percentage of the improvements that would be exempted from 2048
taxation, and indicate the date on which the legislative authority 2049
intends to adopt the ordinance.2050

       (2) The board of county commissioners, by resolution adopted 2051
by a majority of the board, may object to the exemption for the 2052
number of years in excess of ten, may object to the exemption for 2053
the percentage of the improvement to be exempted in excess of 2054
seventy-five per cent, or both. If the board of county 2055
commissioners objects, the board may negotiate a mutually 2056
acceptable compensation agreement with the legislative authority. 2057
In no case shall the compensation provided to the board exceed the 2058
property taxes forgone due to the exemption. If the board of 2059
county commissioners objects, and the board and legislative 2060
authority fail to negotiate a mutually acceptable compensation 2061
agreement, the ordinance adopted under division (C)(1) of this 2062
section shall provide to the board compensation in the eleventh 2063
and subsequent years of the exemption period equal in value to not 2064
more than fifty per cent of the taxes that would be payable to the 2065
county or, if the board's objection includes an objection to an 2066
exemption percentage in excess of seventy-five per cent, 2067
compensation equal in value to not more than fifty per cent of the 2068
taxes that would be payable to the county, on the portion of the 2069
improvement in excess of seventy-five per cent, were that portion 2070
to be subject to taxation. The board of county commissioners shall 2071
certify its resolution to the legislative authority not later than 2072
thirty days after receipt of the notice.2073

       (3) If the board of county commissioners does not object or 2074
fails to certify its resolution objecting to an exemption within 2075
thirty days after receipt of the notice, the legislative authority 2076
may adopt the ordinance, and no compensation shall be provided to 2077
the board of county commissioners. If the board timely certifies 2078
its resolution objecting to the ordinance, the legislative 2079
authority may adopt the ordinance at any time after a mutually 2080
acceptable compensation agreement is agreed to by the board and 2081
the legislative authority, or, if no compensation agreement is 2082
negotiated, at any time after the legislative authority agrees in 2083
the proposed ordinance to provide compensation to the board of 2084
fifty per cent of the taxes that would be payable to the county in 2085
the eleventh and subsequent years of the exemption period or on 2086
the portion of the improvement in excess of seventy-five per cent, 2087
were that portion to be subject to taxation.2088

       (F) Service payments in lieu of taxes that are attributable 2089
to any amount by which the effective tax rate of either a renewal 2090
levy with an increase or a replacement levy exceeds the effective 2091
tax rate of the levy renewed or replaced, or that are attributable 2092
to an additional levy, for a levy authorized by the voters for any 2093
of the following purposes on or after January 1, 2006, and which 2094
are provided pursuant to an ordinance creating an incentive 2095
district under division (C)(1) of this section that is adopted on 2096
or after January 1, 2006, shall be distributed to the appropriate 2097
taxing authority as required under division (C) of section 5709.42 2098
of the Revised Code in an amount equal to the amount of taxes from 2099
that additional levy or from the increase in the effective tax 2100
rate of such renewal or replacement levy that would have been 2101
payable to that taxing authority from the following levies were it 2102
not for the exemption authorized under division (C) of this 2103
section:2104

       (1) A tax levied under division (L) of section 5705.19 or 2105
section 5705.191 of the Revised Code for community mental 2106
retardation and developmental disabilities programs and services 2107
pursuant to Chapter 5126. of the Revised Code;2108

       (2) A tax levied under division (Y) of section 5705.19 of the 2109
Revised Code for providing or maintaining senior citizens services 2110
or facilities;2111

       (3) A tax levied under section 5705.22 of the Revised Code 2112
for county hospitals;2113

       (4) A tax levied by a joint-county district or by a county 2114
under section 5705.19, 5705.191, or 5705.221 of the Revised Code 2115
for alcohol, drug addiction, and mental health services or 2116
facilities;2117

       (5) A tax levied under section 5705.23 of the Revised Code 2118
for library purposes;2119

       (6) A tax levied under section 5705.24 of the Revised Code 2120
for the support of children services and the placement and care of 2121
children;2122

       (7) A tax levied under division (Z) of section 5705.19 of the 2123
Revised Code for the provision and maintenance of zoological park 2124
services and facilities under section 307.76 of the Revised Code;2125

        (8) A tax levied under section 511.27 or division (H) of 2126
section 5705.19 of the Revised Code for the support of township 2127
park districts;2128

        (9) A tax levied under division (A), (F), or (H) of section 2129
5705.19 of the Revised Code for parks and recreational purposes of 2130
a joint recreation district organized pursuant to division (B) of 2131
section 755.14 of the Revised Code;2132

        (10) A tax levied under section 1545.20 or 1545.21 of the 2133
Revised Code for park district purposes;2134

        (11) A tax levied under section 5705.191 of the Revised Code 2135
for the purpose of making appropriations for public assistance; 2136
human or social services; public relief; public welfare; public 2137
health and hospitalization; and support of general hospitals;2138

        (12) A tax levied under section 3709.29 of the Revised Code 2139
for a general health district program.2140

        (G) An exemption from taxation granted under this section 2141
commences with the tax year specified in the ordinance so long as 2142
the year specified in the ordinance commences after the effective 2143
date of the ordinance. If the ordinance specifies a year 2144
commencing before the effective date of the resolution or 2145
specifies no year whatsoever, the exemption commences with the tax 2146
year in which an exempted improvement first appears on the tax 2147
list and duplicate of real and public utility property and that 2148
commences after the effective date of the ordinance. Except as 2149
otherwise provided in this division, the exemption ends on the 2150
date specified in the ordinance as the date the improvement ceases 2151
to be a public purpose or the incentive district expires, or ends 2152
on the date on which the public infrastructure improvements and 2153
housing renovations are paid in full from the municipal public 2154
improvement tax increment equivalent fund established under 2155
division (A) of section 5709.43 of the Revised Code, whichever 2156
occurs first. The exemption of an improvement with respect to a 2157
parcel or within an incentive district may end on a later date, as 2158
specified in the ordinance, if the legislative authority and the 2159
board of education of the city, local, or exempted village school 2160
district within which the parcel or district is located have 2161
entered into a compensation agreement under section 5709.82 of the 2162
Revised Code with respect to the improvement, and the board of 2163
education has approved the term of the exemption under division 2164
(D)(2) of this section, but in no case shall the improvement be 2165
exempted from taxation for more than thirty years. Exemptions 2166
shall be claimed and allowed in the same manner as in the case of 2167
other real property exemptions. If an exemption status changes 2168
during a year, the procedure for the apportionment of the taxes 2169
for that year is the same as in the case of other changes in tax 2170
exemption status during the year.2171

       (H) Additional municipal financing of public infrastructure 2172
improvements and housing renovations may be provided by any 2173
methods that the municipal corporation may otherwise use for 2174
financing such improvements or renovations. If the municipal 2175
corporation issues bonds or notes to finance the public 2176
infrastructure improvements and housing renovations and pledges 2177
money from the municipal public improvement tax increment 2178
equivalent fund to pay the interest on and principal of the bonds 2179
or notes, the bonds or notes are not subject to Chapter 133. of 2180
the Revised Code.2181

       (I) The municipal corporation, not later than fifteen days 2182
after the adoption of an ordinance under this section, shall 2183
submit to the director of development a copy of the ordinance. On 2184
or before the thirty-first day of March of each year, the 2185
municipal corporation shall submit a status report to the director 2186
of development. The report shall indicate, in the manner 2187
prescribed by the director, the progress of the project during 2188
each year that an exemption remains in effect, including a summary 2189
of the receipts from service payments in lieu of taxes; 2190
expenditures of money from the funds created under section 5709.43 2191
of the Revised Code; a description of the public infrastructure 2192
improvements and housing renovations financed with such 2193
expenditures; and a quantitative summary of changes in employment 2194
and private investment resulting from each project.2195

       (J) Nothing in this section shall be construed to prohibit a 2196
legislative authority from declaring to be a public purpose 2197
improvements with respect to more than one parcel.2198

       (K) If a parcel is located in a new community district in 2199
which the new community authority imposes a community development 2200
charge on the basis of rentals received from leases of real 2201
property as described in division (L)(2) of section 349.01 of the 2202
Revised Code, the parcel may not be exempted from taxation under 2203
this section.2204

       Sec. 5709.41.  (A) As used in this section:2205

       (1) "Business day" means a day of the week excluding 2206
Saturday, Sunday, and a legal holiday as defined under section 2207
1.14 of the Revised Code.2208

       (2) "Improvement" means the increase in assessed value of any 2209
parcel of property subsequent to the acquisition of the parcel by 2210
a municipal corporation engaged in urban redevelopment.2211

       (B) The legislative authority of a municipal corporation, by 2212
ordinance, may declare to be a public purpose any improvement to a 2213
parcel of real property if both of the following apply:2214

       (1) The municipal corporation held fee title to the parcel 2215
prior to the adoption of the ordinance;2216

       (2) The parcel is leased, or the fee of the parcel is 2217
conveyed, to any person either before or after adoption of the 2218
ordinance.2219

       Improvements used or to be used for residential purposes may 2220
be declared a public purpose under this section only if the parcel 2221
is located in a blighted area of an impacted city as those terms 2222
are defined in section 1728.01 of the Revised Code.2223

       (C) Except as otherwise provided in division (C)(1), (2), or 2224
(3) of this section, not more than seventy-five per cent of an 2225
improvement thus declared to be a public purpose may be exempted 2226
from real property taxation. The ordinance shall specify the 2227
percentage of the improvement to be exempted from taxation. If a 2228
parcel is located in a new community district in which the new 2229
community authority imposes a community development charge on the 2230
basis of rentals received from leases of real property as 2231
described in division (L)(2) of section 349.01 of the Revised 2232
Code, the parcel may not be exempted from taxation under this 2233
section.2234

       (1) If the ordinance declaring improvements to a parcel to be 2235
a public purpose specifies that payments in lieu of taxes provided 2236
for in section 5709.42 of the Revised Code shall be paid to the 2237
city, local, or exempted village school district in which the 2238
parcel is located in the amount of the taxes that would have been 2239
payable to the school district if the improvements had not been 2240
exempted from taxation, the percentage of the improvement that may 2241
be exempted from taxation may exceed seventy-five per cent, and 2242
the exemption may be granted for up to thirty years, without the 2243
approval of the board of education as otherwise required under 2244
division (C)(2) of this section.2245

       (2) Improvements may be exempted from taxation for up to ten 2246
years or, with the approval of the board of education of the city, 2247
local, or exempted village school district within the territory of 2248
which the improvements are or will be located, for up to thirty 2249
years. The percentage of the improvement exempted from taxation 2250
may, with such approval, exceed seventy-five per cent, but shall 2251
not exceed one hundred per cent. Not later than forty-five 2252
business days prior to adopting an ordinance under this section, 2253
the legislative authority shall deliver to the board of education 2254
a notice stating its intent to declare improvements to be a public 2255
purpose under this section. The notice shall describe the parcel 2256
and the improvements, provide an estimate of the true value in 2257
money of the improvements, specify the period for which the 2258
improvements would be exempted from taxation and the percentage of 2259
the improvements that would be exempted, and indicate the date on 2260
which the legislative authority intends to adopt the ordinance. 2261
The board of education, by resolution adopted by a majority of the 2262
board, may approve the exemption for the period or for the 2263
exemption percentage specified in the notice, may disapprove the 2264
exemption for the number of years in excess of ten, may disapprove 2265
the exemption for the percentage of the improvements to be 2266
exempted in excess of seventy-five per cent, or both, or may 2267
approve the exemption on the condition that the legislative 2268
authority and the board negotiate an agreement providing for 2269
compensation to the school district equal in value to a percentage 2270
of the amount of taxes exempted in the eleventh and subsequent 2271
years of the exemption period, or, in the case of exemption 2272
percentages in excess of seventy-five per cent, compensation equal 2273
in value to a percentage of the taxes that would be payable on the 2274
portion of the improvement in excess of seventy-five per cent were 2275
that portion to be subject to taxation. The board of education 2276
shall certify its resolution to the legislative authority not 2277
later than fourteen days prior to the date the legislative 2278
authority intends to adopt the ordinance as indicated in the 2279
notice. If the board of education approves the exemption on the 2280
condition that a compensation agreement be negotiated, the board 2281
in its resolution shall propose a compensation percentage. If the 2282
board of education and the legislative authority negotiate a 2283
mutually acceptable compensation agreement, the ordinance may 2284
declare the improvements a public purpose for the number of years 2285
specified in the ordinance or, in the case of exemption 2286
percentages in excess of seventy-five per cent, for the exemption 2287
percentage specified in the ordinance. In either case, if the 2288
board and the legislative authority fail to negotiate a mutually 2289
acceptable compensation agreement, the ordinance may declare the 2290
improvements a public purpose for not more than ten years, but 2291
shall not exempt more than seventy-five per cent of the 2292
improvements from taxation. If the board fails to certify a 2293
resolution to the legislative authority within the time prescribed 2294
by this division, the legislative authority thereupon may adopt 2295
the ordinance and may declare the improvements a public purpose 2296
for up to thirty years. The legislative authority may adopt the 2297
ordinance at any time after the board of education certifies its 2298
resolution approving the exemption to the legislative authority, 2299
or, if the board approves the exemption on the condition that a 2300
mutually acceptable compensation agreement be negotiated, at any 2301
time after the compensation agreement is agreed to by the board 2302
and the legislative authority. If a mutually acceptable 2303
compensation agreement is negotiated between the legislative 2304
authority and the board, including agreements for payments in lieu 2305
of taxes under section 5709.42 of the Revised Code, the 2306
legislative authority shall compensate the joint vocational school 2307
district within the territory of which the improvements are or 2308
will be located at the same rate and under the same terms received 2309
by the city, local, or exempted village school district.2310

       (3) If a board of education has adopted a resolution waiving 2311
its right to approve exemptions from taxation and the resolution 2312
remains in effect, approval of exemptions by the board is not 2313
required under this division. If a board of education has adopted 2314
a resolution allowing a legislative authority to deliver the 2315
notice required under this division fewer than forty-five business 2316
days prior to the legislative authority's adoption of the 2317
ordinance, the legislative authority shall deliver the notice to 2318
the board not later than the number of days prior to such adoption 2319
as prescribed by the board in its resolution. If a board of 2320
education adopts a resolution waiving its right to approve 2321
exemptions or shortening the notification period, the board shall 2322
certify a copy of the resolution to the legislative authority. If 2323
the board of education rescinds such a resolution, it shall 2324
certify notice of the rescission to the legislative authority.2325

       (4) If the legislative authority is not required by division 2326
(C)(1), (2), or (3) of this section to notify the board of 2327
education of the legislative authority's intent to declare 2328
improvements to be a public purpose, the legislative authority 2329
shall comply with the notice requirements imposed under section 2330
5709.83 of the Revised Code, unless the board has adopted a 2331
resolution under that section waiving its right to receive such a 2332
notice.2333

       (D) The exemption commences on the effective date of the 2334
ordinance and ends on the date specified in the ordinance as the 2335
date the improvement ceases to be a public purpose. The exemption 2336
shall be claimed and allowed in the same or a similar manner as in 2337
the case of other real property exemptions. If an exemption status 2338
changes during a tax year, the procedure for the apportionment of 2339
the taxes for that year is the same as in the case of other 2340
changes in tax exemption status during the year.2341

       (E) A municipal corporation, not later than fifteen days 2342
after the adoption of an ordinance granting a tax exemption under 2343
this section, shall submit to the director of development a copy 2344
of the ordinance. On or before the thirty-first day of March each 2345
year, the municipal corporation shall submit a status report to 2346
the director of development outlining the progress of the project 2347
during each year that the exemption remains in effect.2348

       Sec. 5709.73.  (A) As used in this section and section 2349
5709.74 of the Revised Code:2350

       (1) "Business day" means a day of the week excluding 2351
Saturday, Sunday, and a legal holiday as defined in section 1.14 2352
of the Revised Code.2353

       (2) "Further improvements" or "improvements" means the 2354
increase in the assessed value of real property that would first 2355
appear on the tax list and duplicate of real and public utility 2356
property after the effective date of a resolution adopted under 2357
this section were it not for the exemption granted by that 2358
resolution. For purposes of division (B) of this section, 2359
"improvements" do not include any property used or to be used for 2360
residential purposes.2361

       (3) "Housing renovation" means a project carried out for 2362
residential purposes.2363

       (4) "Incentive district" has the same meaning as in section 2364
5709.40 of the Revised Code, except that a blighted area is in the 2365
unincorporated area of a township.2366

       (5) "Project" and "public infrastructure improvement" have 2367
the same meanings as in section 5709.40 of the Revised Code.2368

       (B) A board of township trustees may, by unanimous vote, 2369
adopt a resolution that declares to be a public purpose any public 2370
infrastructure improvements made that are necessary for the 2371
development of certain parcels of land located in the 2372
unincorporated area of the township. Except with the approval 2373
under division (D) of this section of the board of education of 2374
each city, local, or exempted village school district within which 2375
the improvements are located, the resolution may exempt from real 2376
property taxation not more than seventy-five per cent of further 2377
improvements to a parcel of land that directly benefits from the 2378
public infrastructure improvements, for a period of not more than 2379
ten years. The resolution shall specify the percentage of the 2380
further improvements to be exempted and the life of the exemption.2381

       (C)(1) A board of township trustees may adopt, by unanimous 2382
vote, a resolution creating an incentive district and declaring 2383
improvements to parcels within the district to be a public purpose 2384
and, except as provided in division (F) of this section, exempt 2385
from taxation as provided in this section, but no board of 2386
township trustees of a township that has a population that exceeds 2387
twenty-five thousand, as shown by the most recent federal 2388
decennial census, shall adopt a resolution that creates an 2389
incentive district if the sum of the taxable value of real 2390
property in the proposed district for the preceding tax year and 2391
the taxable value of all real property in the township that would 2392
have been taxable in the preceding year were it not for the fact 2393
that the property was in an existing incentive district and 2394
therefore exempt from taxation exceeds twenty-five per cent of the 2395
taxable value of real property in the township for the preceding 2396
tax year. The district shall be located within the unincorporated 2397
area of the township and shall not include any territory that is 2398
included within a district created under division (B) of section 2399
5709.78 of the Revised Code. The resolution shall delineate the 2400
boundary of the district and specifically identify each parcel 2401
within the district. A district may not include any parcel that is 2402
or has been exempted from taxation under division (B) of this 2403
section or that is or has been within another district created 2404
under this division. A resolution may create more than one 2405
district, and more than one resolution may be adopted under 2406
division (C)(1) of this section.2407

       (2) Not later than thirty days prior to adopting a resolution 2408
under division (C)(1) of this section, if the township intends to 2409
apply for exemptions from taxation under section 5709.911 of the 2410
Revised Code on behalf of owners of real property located within 2411
the proposed incentive district, the board shall conduct a public 2412
hearing on the proposed resolution. Not later than thirty days 2413
prior to the public hearing, the board shall give notice of the 2414
public hearing and the proposed resolution by first class mail to 2415
every real property owner whose property is located within the 2416
boundaries of the proposed incentive district that is the subject 2417
of the proposed resolution.2418

       (3)(a) A resolution adopted under division (C)(1) of this 2419
section shall specify the life of the incentive district and the 2420
percentage of the improvements to be exempted, shall designate the 2421
public infrastructure improvements made, to be made, or in the 2422
process of being made, that benefit or serve, or, once made, will 2423
benefit or serve parcels in the district. The resolution also 2424
shall identify one or more specific projects being, or to be, 2425
undertaken in the district that place additional demand on the 2426
public infrastructure improvements designated in the resolution. 2427
The project identified may, but need not be, the project under 2428
division (C)(3)(b) of this section that places real property in 2429
use for commercial or industrial purposes.2430

       A resolution adopted under division (C)(1) of this section on 2431
or after March 30, 2006, shall not designate police or fire 2432
equipment as public infrastructure improvements, and no service 2433
payment provided for in section 5709.74 of the Revised Code and 2434
received by the township under the resolution shall be used for 2435
police or fire equipment.2436

       (b) A resolution adopted under division (C)(1) of this 2437
section may authorize the use of service payments provided for in 2438
section 5709.74 of the Revised Code for the purpose of housing 2439
renovations within the incentive district, provided that the 2440
resolution also designates public infrastructure improvements that 2441
benefit or serve the district, and that a project within the 2442
district places real property in use for commercial or industrial 2443
purposes. Service payments may be used to finance or support 2444
loans, deferred loans, and grants to persons for the purpose of 2445
housing renovations within the district. The resolution shall 2446
designate the parcels within the district that are eligible for 2447
housing renovations. The resolution shall state separately the 2448
amount or the percentages of the expected aggregate service 2449
payments that are designated for each public infrastructure 2450
improvement and for the purpose of housing renovations.2451

       (4) Except with the approval of the board of education of 2452
each city, local, or exempted village school district within the 2453
territory of which the incentive district is or will be located, 2454
and subject to division (E) of this section, the life of an 2455
incentive district shall not exceed ten years, and the percentage 2456
of improvements to be exempted shall not exceed seventy-five per 2457
cent. With approval of the board of education, the life of a 2458
district may be not more than thirty years, and the percentage of 2459
improvements to be exempted may be not more than one hundred per 2460
cent. The approval of a board of education shall be obtained in 2461
the manner provided in division (D) of this section.2462

       (D) Improvements with respect to a parcel may be exempted 2463
from taxation under division (B) of this section, and improvements 2464
to parcels within an incentive district may be exempted from 2465
taxation under division (C) of this section, for up to ten years 2466
or, with the approval of the board of education of the city, 2467
local, or exempted village school district within which the parcel 2468
or district is located, for up to thirty years. The percentage of 2469
the improvements exempted from taxation may, with such approval, 2470
exceed seventy-five per cent, but shall not exceed one hundred per 2471
cent. Not later than forty-five business days prior to adopting a 2472
resolution under this section declaring improvements to be a 2473
public purpose that is subject to approval by a board of education 2474
under this division, the board of township trustees shall deliver 2475
to the board of education a notice stating its intent to adopt a 2476
resolution making that declaration. The notice regarding 2477
improvements with respect to a parcel under division (B) of this 2478
section shall identify the parcels for which improvements are to 2479
be exempted from taxation, provide an estimate of the true value 2480
in money of the improvements, specify the period for which the 2481
improvements would be exempted from taxation and the percentage of 2482
the improvements that would be exempted, and indicate the date on 2483
which the board of township trustees intends to adopt the 2484
resolution. The notice regarding improvements made under division 2485
(C) of this section to parcels within an incentive district shall 2486
delineate the boundaries of the district, specifically identify 2487
each parcel within the district, identify each anticipated 2488
improvement in the district, provide an estimate of the true value 2489
in money of each such improvement, specify the life of the 2490
district and the percentage of improvements that would be 2491
exempted, and indicate the date on which the board of township 2492
trustees intends to adopt the resolution. The board of education, 2493
by resolution adopted by a majority of the board, may approve the 2494
exemption for the period or for the exemption percentage specified 2495
in the notice; may disapprove the exemption for the number of 2496
years in excess of ten, may disapprove the exemption for the 2497
percentage of the improvements to be exempted in excess of 2498
seventy-five per cent, or both; or may approve the exemption on 2499
the condition that the board of township trustees and the board of 2500
education negotiate an agreement providing for compensation to the 2501
school district equal in value to a percentage of the amount of 2502
taxes exempted in the eleventh and subsequent years of the 2503
exemption period or, in the case of exemption percentages in 2504
excess of seventy-five per cent, compensation equal in value to a 2505
percentage of the taxes that would be payable on the portion of 2506
the improvements in excess of seventy-five per cent were that 2507
portion to be subject to taxation, or other mutually agreeable 2508
compensation.2509

       The board of education shall certify its resolution to the 2510
board of township trustees not later than fourteen days prior to 2511
the date the board of township trustees intends to adopt the 2512
resolution as indicated in the notice. If the board of education 2513
and the board of township trustees negotiate a mutually acceptable 2514
compensation agreement, the resolution may declare the 2515
improvements a public purpose for the number of years specified in 2516
the resolution or, in the case of exemption percentages in excess 2517
of seventy-five per cent, for the exemption percentage specified 2518
in the resolution. In either case, if the board of education and 2519
the board of township trustees fail to negotiate a mutually 2520
acceptable compensation agreement, the resolution may declare the 2521
improvements a public purpose for not more than ten years, and 2522
shall not exempt more than seventy-five per cent of the 2523
improvements from taxation. If the board of education fails to 2524
certify a resolution to the board of township trustees within the 2525
time prescribed by this section, the board of township trustees 2526
thereupon may adopt the resolution and may declare the 2527
improvements a public purpose for up to thirty years or, in the 2528
case of exemption percentages proposed in excess of seventy-five 2529
per cent, for the exemption percentage specified in the 2530
resolution. The board of township trustees may adopt the 2531
resolution at any time after the board of education certifies its 2532
resolution approving the exemption to the board of township 2533
trustees, or, if the board of education approves the exemption on 2534
the condition that a mutually acceptable compensation agreement be 2535
negotiated, at any time after the compensation agreement is agreed 2536
to by the board of education and the board of township trustees. 2537
If a mutually acceptable compensation agreement is negotiated 2538
between the board of township trustees and the board of education, 2539
including agreements for payments in lieu of taxes under section 2540
5709.74 of the Revised Code, the board of township trustees shall 2541
compensate the joint vocational school district within which the 2542
parcel or district is located at the same rate and under the same 2543
terms received by the city, local, or exempted village school 2544
district.2545

        If a board of education has adopted a resolution waiving its 2546
right to approve exemptions from taxation under this section and 2547
the resolution remains in effect, approval of such exemptions by 2548
the board of education is not required under division (D) of this 2549
section. If a board of education has adopted a resolution allowing 2550
a board of township trustees to deliver the notice required under 2551
division (D) of this section fewer than forty-five business days 2552
prior to adoption of the resolution by the board of township 2553
trustees, the board of township trustees shall deliver the notice 2554
to the board of education not later than the number of days prior 2555
to the adoption as prescribed by the board of education in its 2556
resolution. If a board of education adopts a resolution waiving 2557
its right to approve exemptions or shortening the notification 2558
period, the board of education shall certify a copy of the 2559
resolution to the board of township trustees. If the board of 2560
education rescinds the resolution, it shall certify notice of the 2561
rescission to the board of township trustees.2562

       If the board of township trustees is not required by division 2563
(D) of this section to notify the board of education of the board 2564
of township trustees' intent to declare improvements to be a 2565
public purpose, the board of township trustees shall comply with 2566
the notice requirements imposed under section 5709.83 of the 2567
Revised Code before taking formal action to adopt the resolution 2568
making that declaration, unless the board of education has adopted 2569
a resolution under that section waiving its right to receive the 2570
notice.2571

       (E)(1) If a proposed resolution under division (C)(1) of this 2572
section exempts improvements with respect to a parcel within an 2573
incentive district for more than ten years, or the percentage of 2574
the improvement exempted from taxation exceeds seventy-five per 2575
cent, not later than forty-five business days prior to adopting 2576
the resolution the board of township trustees shall deliver to the 2577
board of county commissioners of the county within which the 2578
incentive district is or will be located a notice that states its 2579
intent to adopt a resolution creating an incentive district. The 2580
notice shall include a copy of the proposed resolution, identify 2581
the parcels for which improvements are to be exempted from 2582
taxation, provide an estimate of the true value in money of the 2583
improvements, specify the period of time for which the 2584
improvements would be exempted from taxation, specify the 2585
percentage of the improvements that would be exempted from 2586
taxation, and indicate the date on which the board of township 2587
trustees intends to adopt the resolution.2588

       (2) The board of county commissioners, by resolution adopted 2589
by a majority of the board, may object to the exemption for the 2590
number of years in excess of ten, may object to the exemption for 2591
the percentage of the improvement to be exempted in excess of 2592
seventy-five per cent, or both. If the board of county 2593
commissioners objects, the board may negotiate a mutually 2594
acceptable compensation agreement with the board of township 2595
trustees. In no case shall the compensation provided to the board 2596
of county commissioners exceed the property taxes foregone due to 2597
the exemption. If the board of county commissioners objects, and 2598
the board of county commissioners and board of township trustees 2599
fail to negotiate a mutually acceptable compensation agreement, 2600
the resolution adopted under division (C)(1) of this section shall 2601
provide to the board of county commissioners compensation in the 2602
eleventh and subsequent years of the exemption period equal in 2603
value to not more than fifty per cent of the taxes that would be 2604
payable to the county or, if the board of county commissioner's 2605
objection includes an objection to an exemption percentage in 2606
excess of seventy-five per cent, compensation equal in value to 2607
not more than fifty per cent of the taxes that would be payable to 2608
the county, on the portion of the improvement in excess of 2609
seventy-five per cent, were that portion to be subject to 2610
taxation. The board of county commissioners shall certify its 2611
resolution to the board of township trustees not later than thirty 2612
days after receipt of the notice.2613

       (3) If the board of county commissioners does not object or 2614
fails to certify its resolution objecting to an exemption within 2615
thirty days after receipt of the notice, the board of township 2616
trustees may adopt its resolution, and no compensation shall be 2617
provided to the board of county commissioners. If the board of 2618
county commissioners timely certifies its resolution objecting to 2619
the trustees' resolution, the board of township trustees may adopt 2620
its resolution at any time after a mutually acceptable 2621
compensation agreement is agreed to by the board of county 2622
commissioners and the board of township trustees, or, if no 2623
compensation agreement is negotiated, at any time after the board 2624
of township trustees agrees in the proposed resolution to provide 2625
compensation to the board of county commissioners of fifty per 2626
cent of the taxes that would be payable to the county in the 2627
eleventh and subsequent years of the exemption period or on the 2628
portion of the improvement in excess of seventy-five per cent, 2629
were that portion to be subject to taxation.2630

       (F) Service payments in lieu of taxes that are attributable 2631
to any amount by which the effective tax rate of either a renewal 2632
levy with an increase or a replacement levy exceeds the effective 2633
tax rate of the levy renewed or replaced, or that are attributable 2634
to an additional levy, for a levy authorized by the voters for any 2635
of the following purposes on or after January 1, 2006, and which 2636
are provided pursuant to a resolution creating an incentive 2637
district under division (C)(1) of this section that is adopted on 2638
or after January 1, 2006, shall be distributed to the appropriate 2639
taxing authority as required under division (C) of section 5709.74 2640
of the Revised Code in an amount equal to the amount of taxes from 2641
that additional levy or from the increase in the effective tax 2642
rate of such renewal or replacement levy that would have been 2643
payable to that taxing authority from the following levies were it 2644
not for the exemption authorized under division (C) of this 2645
section:2646

       (1) A tax levied under division (L) of section 5705.19 or 2647
section 5705.191 of the Revised Code for community mental 2648
retardation and developmental disabilities programs and services 2649
pursuant to Chapter 5126. of the Revised Code;2650

       (2) A tax levied under division (Y) of section 5705.19 of the 2651
Revised Code for providing or maintaining senior citizens services 2652
or facilities;2653

       (3) A tax levied under section 5705.22 of the Revised Code 2654
for county hospitals;2655

       (4) A tax levied by a joint-county district or by a county 2656
under section 5705.19, 5705.191, or 5705.221 of the Revised Code 2657
for alcohol, drug addiction, and mental health services or 2658
families;2659

       (5) A tax levied under section 5705.23 of the Revised Code 2660
for library purposes;2661

       (6) A tax levied under section 5705.24 of the Revised Code 2662
for the support of children services and the placement and care of 2663
children;2664

       (7) A tax levied under division (Z) of section 5705.19 of the 2665
Revised Code for the provision and maintenance of zoological park 2666
services and facilities under section 307.76 of the Revised Code;2667

        (8) A tax levied under section 511.27 or division (H) of 2668
section 5705.19 of the Revised Code for the support of township 2669
park districts;2670

        (9) A tax levied under division (A), (F), or (H) of section 2671
5705.19 of the Revised Code for parks and recreational purposes of 2672
a joint recreation district organized pursuant to division (B) of 2673
section 755.14 of the Revised Code;2674

        (10) A tax levied under section 1545.20 or 1545.21 of the 2675
Revised Code for park district purposes;2676

        (11) A tax levied under section 5705.191 of the Revised Code 2677
for the purpose of making appropriations for public assistance; 2678
human or social services; public relief; public welfare; public 2679
health and hospitalization; and support of general hospitals;2680

        (12) A tax levied under section 3709.29 of the Revised Code 2681
for a general health district program.2682

       (G) An exemption from taxation granted under this section 2683
commences with the tax year specified in the resolution so long as 2684
the year specified in the resolution commences after the effective 2685
date of the resolution. If the resolution specifies a year 2686
commencing before the effective date of the resolution or 2687
specifies no year whatsoever, the exemption commences with the tax 2688
year in which an exempted improvement first appears on the tax 2689
list and duplicate of real and public utility property and that 2690
commences after the effective date of the resolution. Except as 2691
otherwise provided in this division, the exemption ends on the 2692
date specified in the resolution as the date the improvement 2693
ceases to be a public purpose or the incentive district expires, 2694
or ends on the date on which the public infrastructure 2695
improvements and housing renovations are paid in full from the 2696
township public improvement tax increment equivalent fund 2697
established under section 5709.75 of the Revised Code, whichever 2698
occurs first. The exemption of an improvement with respect to a 2699
parcel or within an incentive district may end on a later date, as 2700
specified in the resolution, if the board of township trustees and 2701
the board of education of the city, local, or exempted village 2702
school district within which the parcel or district is located 2703
have entered into a compensation agreement under section 5709.82 2704
of the Revised Code with respect to the improvement and the board 2705
of education has approved the term of the exemption under division 2706
(D) of this section, but in no case shall the improvement be 2707
exempted from taxation for more than thirty years. The board of 2708
township trustees may, by majority vote, adopt a resolution 2709
permitting the township to enter into such agreements as the board 2710
finds necessary or appropriate to provide for the construction or 2711
undertaking of public infrastructure improvements and housing 2712
renovations. Any exemption shall be claimed and allowed in the 2713
same or a similar manner as in the case of other real property 2714
exemptions. If an exemption status changes during a tax year, the 2715
procedure for the apportionment of the taxes for that year is the 2716
same as in the case of other changes in tax exemption status 2717
during the year.2718

       (H) The board of township trustees may issue the notes of the 2719
township to finance all costs pertaining to the construction or 2720
undertaking of public infrastructure improvements and housing 2721
renovations made pursuant to this section. The notes shall be 2722
signed by the board and attested by the signature of the township 2723
fiscal officer, shall bear interest not to exceed the rate 2724
provided in section 9.95 of the Revised Code, and are not subject 2725
to Chapter 133. of the Revised Code. The resolution authorizing 2726
the issuance of the notes shall pledge the funds of the township 2727
public improvement tax increment equivalent fund established 2728
pursuant to section 5709.75 of the Revised Code to pay the 2729
interest on and principal of the notes. The notes, which may 2730
contain a clause permitting prepayment at the option of the board, 2731
shall be offered for sale on the open market or given to the 2732
vendor or contractor if no sale is made.2733

       (I) The township, not later than fifteen days after the 2734
adoption of a resolution under this section, shall submit to the 2735
director of development a copy of the resolution. On or before the 2736
thirty-first day of March of each year, the township shall submit 2737
a status report to the director of development. The report shall 2738
indicate, in the manner prescribed by the director, the progress 2739
of the project during each year that the exemption remains in 2740
effect, including a summary of the receipts from service payments 2741
in lieu of taxes; expenditures of money from the fund created 2742
under section 5709.75 of the Revised Code; a description of the 2743
public infrastructure improvements and housing renovations 2744
financed with the expenditures; and a quantitative summary of 2745
changes in private investment resulting from each project.2746

       (J) Nothing in this section shall be construed to prohibit a 2747
board of township trustees from declaring to be a public purpose 2748
improvements with respect to more than one parcel.2749

       If a parcel is located in a new community district in which 2750
the new community authority imposes a community development charge 2751
on the basis of rentals received from leases of real property as 2752
described in division (L)(2) of section 349.01 of the Revised 2753
Code, the parcel may not be exempted from taxation under this 2754
section.2755

       (K) A board of township trustees that adopted a resolution 2756
under this section prior to July 21, 1994, may amend that 2757
resolution to include any additional public infrastructure 2758
improvement. A board of township trustees that seeks by the 2759
amendment to utilize money from its township public improvement 2760
tax increment equivalent fund for land acquisition in aid of 2761
industry, commerce, distribution, or research, demolition on 2762
private property, or stormwater and flood remediation projects may 2763
do so provided that the board currently is a party to a 2764
hold-harmless agreement with the board of education of the city, 2765
local, or exempted village school district within the territory of 2766
which are located the parcels that are subject to an exemption. 2767
For the purposes of this division, a "hold-harmless agreement" 2768
means an agreement under which the board of township trustees 2769
agrees to compensate the school district for one hundred per cent 2770
of the tax revenue that the school district would have received 2771
from further improvements to parcels designated in the resolution 2772
were it not for the exemption granted by the resolution.2773

       Sec. 5709.78.  (A) A board of county commissioners may, by 2774
resolution, declare improvements to certain parcels of real 2775
property located in the unincorporated territory of the county to 2776
be a public purpose. Except with the approval under division (C) 2777
of this section of the board of education of each city, local, or 2778
exempted village school district within which the improvements are 2779
located, not more than seventy-five per cent of an improvement 2780
thus declared to be a public purpose may be exempted from real 2781
property taxation, for a period of not more than ten years. The 2782
resolution shall specify the percentage of the improvement to be 2783
exempted and the life of the exemption.2784

       A resolution adopted under this division shall designate the 2785
specific public infrastructure improvements made, to be made, or 2786
in the process of being made by the county that directly benefit, 2787
or that once made will directly benefit, the parcels for which 2788
improvements are declared to be a public purpose. The service 2789
payments provided for in section 5709.79 of the Revised Code shall 2790
be used to finance the public infrastructure improvements 2791
designated in the resolution, or as provided in section 5709.80 of 2792
the Revised Code.2793

       (B)(1) A board of county commissioners may adopt a resolution 2794
creating an incentive district and declaring improvements to 2795
parcels within the district to be a public purpose and, except as 2796
provided in division (E) of this section, exempt from taxation as 2797
provided in this section, but no board of county commissioners of 2798
a county that has a population that exceeds twenty-five thousand, 2799
as shown by the most recent federal decennial census, shall adopt 2800
a resolution that creates an incentive district if the sum of the 2801
taxable value of real property in the proposed district for the 2802
preceding tax year and the taxable value of all real property in 2803
the county that would have been taxable in the preceding year were 2804
it not for the fact that the property was in an existing incentive 2805
district and therefore exempt from taxation exceeds twenty-five 2806
per cent of the taxable value of real property in the county for 2807
the preceding tax year. The district shall be located within the 2808
unincorporated territory of the county and shall not include any 2809
territory that is included within a district created under 2810
division (C) of section 5709.73 of the Revised Code. The 2811
resolution shall delineate the boundary of the district and 2812
specifically identify each parcel within the district. A district 2813
may not include any parcel that is or has been exempted from 2814
taxation under division (A) of this section or that is or has been 2815
within another district created under this division. A resolution 2816
may create more than one such district, and more than one 2817
resolution may be adopted under division (B)(1) of this section.2818

       (2) Not later than thirty days prior to adopting a resolution 2819
under division (B)(1) of this section, if the county intends to 2820
apply for exemptions from taxation under section 5709.911 of the 2821
Revised Code on behalf of owners of real property located within 2822
the proposed incentive district, the board of county commissioners 2823
shall conduct a public hearing on the proposed resolution. Not 2824
later than thirty days prior to the public hearing, the board 2825
shall give notice of the public hearing and the proposed 2826
resolution by first class mail to every real property owner whose 2827
property is located within the boundaries of the proposed 2828
incentive district that is the subject of the proposed resolution. 2829
The board also shall provide the notice by first class mail to the 2830
clerk of each township in which the proposed incentive district 2831
will be located.2832

       (3)(a) A resolution adopted under division (B)(1) of this 2833
section shall specify the life of the incentive district and the 2834
percentage of the improvements to be exempted, shall designate the 2835
public infrastructure improvements made, to be made, or in the 2836
process of being made, that benefit or serve, or, once made, will 2837
benefit or serve parcels in the district. The resolution also 2838
shall identify one or more specific projects being, or to be, 2839
undertaken in the district that place additional demand on the 2840
public infrastructure improvements designated in the resolution. 2841
The project identified may, but need not be, the project under 2842
division (B)(3)(b) of this section that places real property in 2843
use for commercial or industrial purposes.2844

       A resolution adopted under division (B)(1) of this section on 2845
or after March 30, 2006, shall not designate police or fire 2846
equipment as public infrastructure improvements, and no service 2847
payment provided for in section 5709.79 of the Revised Code and 2848
received by the county under the resolution shall be used for 2849
police or fire equipment.2850

       (b) A resolution adopted under division (B)(1) of this 2851
section may authorize the use of service payments provided for in 2852
section 5709.79 of the Revised Code for the purpose of housing 2853
renovations within the incentive district, provided that the 2854
resolution also designates public infrastructure improvements that 2855
benefit or serve the district, and that a project within the 2856
district places real property in use for commercial or industrial 2857
purposes. Service payments may be used to finance or support 2858
loans, deferred loans, and grants to persons for the purpose of 2859
housing renovations within the district. The resolution shall 2860
designate the parcels within the district that are eligible for 2861
housing renovations. The resolution shall state separately the 2862
amount or the percentages of the expected aggregate service 2863
payments that are designated for each public infrastructure 2864
improvement and for the purpose of housing renovations.2865

       (4) Except with the approval of the board of education of 2866
each city, local, or exempted village school district within the 2867
territory of which the incentive district is or will be located, 2868
and subject to division (D) of this section, the life of an 2869
incentive district shall not exceed ten years, and the percentage 2870
of improvements to be exempted shall not exceed seventy-five per 2871
cent. With approval of the board of education, the life of a 2872
district may be not more than thirty years, and the percentage of 2873
improvements to be exempted may be not more than one hundred per 2874
cent. The approval of a board of education shall be obtained in 2875
the manner provided in division (C) of this section.2876

       (C)(1) Improvements with respect to a parcel may be exempted 2877
from taxation under division (A) of this section, and improvements 2878
to parcels within an incentive district may be exempted from 2879
taxation under division (B) of this section, for up to ten years 2880
or, with the approval of the board of education of each city, 2881
local, or exempted village school district within which the parcel 2882
or district is located, for up to thirty years. The percentage of 2883
the improvements exempted from taxation may, with such approval, 2884
exceed seventy-five per cent, but shall not exceed one hundred per 2885
cent. Not later than forty-five business days prior to adopting a 2886
resolution under this section declaring improvements to be a 2887
public purpose that is subject to the approval of a board of 2888
education under this division, the board of county commissioners 2889
shall deliver to the board of education a notice stating its 2890
intent to adopt a resolution making that declaration. The notice 2891
regarding improvements with respect to a parcel under division (A) 2892
of this section shall identify the parcels for which improvements 2893
are to be exempted from taxation, provide an estimate of the true 2894
value in money of the improvements, specify the period for which 2895
the improvements would be exempted from taxation and the 2896
percentage of the improvements that would be exempted, and 2897
indicate the date on which the board of county commissioners 2898
intends to adopt the resolution. The notice regarding improvements 2899
to parcels within an incentive district under division (B) of this 2900
section shall delineate the boundaries of the district, 2901
specifically identify each parcel within the district, identify 2902
each anticipated improvement in the district, provide an estimate 2903
of the true value in money of each such improvement, specify the 2904
life of the district and the percentage of improvements that would 2905
be exempted, and indicate the date on which the board of county 2906
commissioners intends to adopt the resolution. The board of 2907
education, by resolution adopted by a majority of the board, may 2908
approve the exemption for the period or for the exemption 2909
percentage specified in the notice; may disapprove the exemption 2910
for the number of years in excess of ten, may disapprove the 2911
exemption for the percentage of the improvements to be exempted in 2912
excess of seventy-five per cent, or both; or may approve the 2913
exemption on the condition that the board of county commissioners 2914
and the board of education negotiate an agreement providing for 2915
compensation to the school district equal in value to a percentage 2916
of the amount of taxes exempted in the eleventh and subsequent 2917
years of the exemption period or, in the case of exemption 2918
percentages in excess of seventy-five per cent, compensation equal 2919
in value to a percentage of the taxes that would be payable on the 2920
portion of the improvements in excess of seventy-five per cent 2921
were that portion to be subject to taxation, or other mutually 2922
agreeable compensation.2923

       (2) The board of education shall certify its resolution to 2924
the board of county commissioners not later than fourteen days 2925
prior to the date the board of county commissioners intends to 2926
adopt its resolution as indicated in the notice. If the board of 2927
education and the board of county commissioners negotiate a 2928
mutually acceptable compensation agreement, the resolution of the 2929
board of county commissioners may declare the improvements a 2930
public purpose for the number of years specified in that 2931
resolution or, in the case of exemption percentages in excess of 2932
seventy-five per cent, for the exemption percentage specified in 2933
the resolution. In either case, if the board of education and the 2934
board of county commissioners fail to negotiate a mutually 2935
acceptable compensation agreement, the resolution may declare the 2936
improvements a public purpose for not more than ten years, and 2937
shall not exempt more than seventy-five per cent of the 2938
improvements from taxation. If the board of education fails to 2939
certify a resolution to the board of county commissioners within 2940
the time prescribed by this section, the board of county 2941
commissioners thereupon may adopt the resolution and may declare 2942
the improvements a public purpose for up to thirty years or, in 2943
the case of exemption percentages proposed in excess of 2944
seventy-five per cent, for the exemption percentage specified in 2945
the resolution. The board of county commissioners may adopt the 2946
resolution at any time after the board of education certifies its 2947
resolution approving the exemption to the board of county 2948
commissioners, or, if the board of education approves the 2949
exemption on the condition that a mutually acceptable compensation 2950
agreement be negotiated, at any time after the compensation 2951
agreement is agreed to by the board of education and the board of 2952
county commissioners. If a mutually acceptable compensation 2953
agreement is negotiated between the board of county commissioners 2954
and the board of education, including agreements for payments in 2955
lieu of taxes under section 5709.79 of the Revised Code, the board 2956
of county commissioners shall compensate the joint vocational 2957
school district within which the parcel or district is located at 2958
the same rate and under the same terms received by the city, 2959
local, or exempted village school district.2960

       (3) If a board of education has adopted a resolution waiving 2961
its right to approve exemptions from taxation under this section 2962
and the resolution remains in effect, approval of such exemptions 2963
by the board of education is not required under division (C) of 2964
this section. If a board of education has adopted a resolution 2965
allowing a board of county commissioners to deliver the notice 2966
required under division (C) of this section fewer than forty-five 2967
business days prior to approval of the resolution by the board of 2968
county commissioners, the board of county commissioners shall 2969
deliver the notice to the board of education not later than the 2970
number of days prior to such approval as prescribed by the board 2971
of education in its resolution. If a board of education adopts a 2972
resolution waiving its right to approve exemptions or shortening 2973
the notification period, the board of education shall certify a 2974
copy of the resolution to the board of county commissioners. If 2975
the board of education rescinds such a resolution, it shall 2976
certify notice of the rescission to the board of county 2977
commissioners.2978

       (D)(1) If a proposed resolution under division (B)(1) of this 2979
section exempts improvements with respect to a parcel within an 2980
incentive district for more than ten years, or the percentage of 2981
the improvement exempted from taxation exceeds seventy-five per 2982
cent, not later than forty-five business days prior to adopting 2983
the resolution the board of county commissioners shall deliver to 2984
the board of township trustees of any township within which the 2985
incentive district is or will be located a notice that states its 2986
intent to adopt a resolution creating an incentive district. The 2987
notice shall include a copy of the proposed resolution, identify 2988
the parcels for which improvements are to be exempted from 2989
taxation, provide an estimate of the true value in money of the 2990
improvements, specify the period of time for which the 2991
improvements would be exempted from taxation, specify the 2992
percentage of the improvements that would be exempted from 2993
taxation, and indicate the date on which the board intends to 2994
adopt the resolution.2995

       (2) The board of township trustees, by resolution adopted by 2996
a majority of the board, may object to the exemption for the 2997
number of years in excess of ten, may object to the exemption for 2998
the percentage of the improvement to be exempted in excess of 2999
seventy-five per cent, or both. If the board of township trustees 3000
objects, the board of township trustees may negotiate a mutually 3001
acceptable compensation agreement with the board of county 3002
commissioners. In no case shall the compensation provided to the 3003
board of township trustees exceed the property taxes forgone due 3004
to the exemption. If the board of township trustees objects, and 3005
the board of township trustees and the board of county 3006
commissioners fail to negotiate a mutually acceptable compensation 3007
agreement, the resolution adopted under division (B)(1) of this 3008
section shall provide to the board of township trustees 3009
compensation in the eleventh and subsequent years of the exemption 3010
period equal in value to not more than fifty per cent of the taxes 3011
that would be payable to the township or, if the board of township 3012
trustee's objection includes an objection to an exemption 3013
percentage in excess of seventy-five per cent, compensation equal 3014
in value to not more than fifty per cent of the taxes that would 3015
be payable to the township on the portion of the improvement in 3016
excess of seventy-five per cent, were that portion to be subject 3017
to taxation. The board of township trustees shall certify its 3018
resolution to the board of county commissioners not later than 3019
thirty days after receipt of the notice.3020

       (3) If the board of township trustees does not object or 3021
fails to certify a resolution objecting to an exemption within 3022
thirty days after receipt of the notice, the board of county 3023
commissioners may adopt its resolution, and no compensation shall 3024
be provided to the board of township trustees. If the board of 3025
township trustees certifies its resolution objecting to the 3026
commissioners' resolution, the board of county commissioners may 3027
adopt its resolution at any time after a mutually acceptable 3028
compensation agreement is agreed to by the board of county 3029
commissioners and the board of township trustees. If the board of 3030
township trustees certifies a resolution objecting to the 3031
commissioners' resolution, the board of county commissioners may 3032
adopt its resolution at any time after a mutually acceptable 3033
compensation agreement is agreed to by the board of county 3034
commissioners and the board of township trustees, or, if no 3035
compensation agreement is negotiated, at any time after the board 3036
of county commissioners in the proposed resolution to provide 3037
compensation to the board of township trustees of fifty per cent 3038
of the taxes that would be payable to the township in the eleventh 3039
and subsequent years of the exemption period or on the portion of 3040
the improvement in excess of seventy-five per cent, were that 3041
portion to be subject to taxation.3042

       (E) Service payments in lieu of taxes that are attributable 3043
to any amount by which the effective tax rate of either a renewal 3044
levy with an increase or a replacement levy exceeds the effective 3045
tax rate of the levy renewed or replaced, or that are attributable 3046
to an additional levy, for a levy authorized by the voters for any 3047
of the following purposes on or after January 1, 2006, and which 3048
are provided pursuant to a resolution creating an incentive 3049
district under division (B)(1) of this section that is adopted on 3050
or after January 1, 2006, shall be distributed to the appropriate 3051
taxing authority as required under division (D) of section 5709.79 3052
of the Revised Code in an amount equal to the amount of taxes from 3053
that additional levy or from the increase in the effective tax 3054
rate of such renewal or replacement levy that would have been 3055
payable to that taxing authority from the following levies were it 3056
not for the exemption authorized under division (B) of this 3057
section:3058

       (1) A tax levied under division (L) of section 5705.19 or 3059
section 5705.191 of the Revised Code for community mental 3060
retardation and developmental disabilities programs and services 3061
pursuant to Chapter 5126. of the Revised Code;3062

       (2) A tax levied under division (Y) of section 5705.19 of the 3063
Revised Code for providing or maintaining senior citizens services 3064
or facilities;3065

       (3) A tax levied under section 5705.22 of the Revised Code 3066
for county hospitals;3067

       (4) A tax levied by a joint-county district or by a county 3068
under section 5705.19, 5705.191, or 5705.221 of the Revised Code 3069
for alcohol, drug addiction, and mental health services or 3070
facilities;3071

       (5) A tax levied under section 5705.23 of the Revised Code 3072
for library purposes;3073

       (6) A tax levied under section 5705.24 of the Revised Code 3074
for the support of children services and the placement and care of 3075
children;3076

       (7) A tax levied under division (Z) of section 5705.19 of the 3077
Revised Code for the provision and maintenance of zoological park 3078
services and facilities under section 307.76 of the Revised Code;3079

        (8) A tax levied under section 511.27 or division (H) of 3080
section 5705.19 of the Revised Code for the support of township 3081
park districts;3082

        (9) A tax levied under division (A), (F), or (H) of section 3083
5705.19 of the Revised Code for parks and recreational purposes of 3084
a joint recreation district organized pursuant to division (B) of 3085
section 755.14 of the Revised Code;3086

        (10) A tax levied under section 1545.20 or 1545.21 of the 3087
Revised Code for park district purposes;3088

        (11) A tax levied under section 5705.191 of the Revised Code 3089
for the purpose of making appropriations for public assistance; 3090
human or social services; public relief; public welfare; public 3091
health and hospitalization; and support of general hospitals;3092

        (12) A tax levied under section 3709.29 of the Revised Code 3093
for a general health district program.3094

       (F) An exemption from taxation granted under this section 3095
commences with the tax year specified in the resolution so long as 3096
the year specified in the resolution commences after the effective 3097
date of the resolution. If the resolution specifies a year 3098
commencing before the effective date of the resolution or 3099
specifies no year whatsoever, the exemption commences with the tax 3100
year in which an exempted improvement first appears on the tax 3101
list and duplicate of real and public utility property and that 3102
commences after the effective date of the resolution. Except as 3103
otherwise provided in this division, the exemption ends on the 3104
date specified in the resolution as the date the improvement 3105
ceases to be a public purpose or the incentive district expires, 3106
or ends on the date on which the county can no longer require 3107
annual service payments in lieu of taxes under section 5709.79 of 3108
the Revised Code, whichever occurs first. The exemption of an 3109
improvement with respect to a parcel or within an incentive 3110
district may end on a later date, as specified in the resolution, 3111
if the board of commissioners and the board of education of the 3112
city, local, or exempted village school district within which the 3113
parcel or district is located have entered into a compensation 3114
agreement under section 5709.82 of the Revised Code with respect 3115
to the improvement, and the board of education has approved the 3116
term of the exemption under division (C)(1) of this section, but 3117
in no case shall the improvement be exempted from taxation for 3118
more than thirty years. Exemptions shall be claimed and allowed in 3119
the same or a similar manner as in the case of other real property 3120
exemptions. If an exemption status changes during a tax year, the 3121
procedure for the apportionment of the taxes for that year is the 3122
same as in the case of other changes in tax exemption status 3123
during the year.3124

       (G) If the board of county commissioners is not required by 3125
this section to notify the board of education of the board of 3126
county commissioners' intent to declare improvements to be a 3127
public purpose, the board of county commissioners shall comply 3128
with the notice requirements imposed under section 5709.83 of the 3129
Revised Code before taking formal action to adopt the resolution 3130
making that declaration, unless the board of education has adopted 3131
a resolution under that section waiving its right to receive such 3132
a notice.3133

       (H) The county, not later than fifteen days after the 3134
adoption of a resolution under this section, shall submit to the 3135
director of development a copy of the resolution. On or before the 3136
thirty-first day of March of each year, the county shall submit a 3137
status report to the director of development. The report shall 3138
indicate, in the manner prescribed by the director, the progress 3139
of the project during each year that an exemption remains in 3140
effect, including a summary of the receipts from service payments 3141
in lieu of taxes; expenditures of money from the fund created 3142
under section 5709.80 of the Revised Code; a description of the 3143
public infrastructure improvements and housing renovations 3144
financed with such expenditures; and a quantitative summary of 3145
changes in employment and private investment resulting from each 3146
project.3147

       (I) Nothing in this section shall be construed to prohibit a 3148
board of county commissioners from declaring to be a public 3149
purpose improvements with respect to more than one parcel.3150

       (J) If a parcel is located in a new community district in 3151
which the new community authority imposes a community development 3152
charge on the basis of rentals received from leases of real 3153
property as described in division (L)(2) of section 349.01 of the 3154
Revised Code, the parcel may not be exempted from taxation under 3155
this section.3156

       Sec. 5727.84.  (A) As used in this section and sections 3157
5727.85, 5727.86, and 5727.87 of the Revised Code:3158

       (1) "School district" means a city, local, or exempted 3159
village school district.3160

       (2) "Joint vocational school district" means a joint 3161
vocational school district created under section 3311.16 of the 3162
Revised Code, and includes a cooperative education school district 3163
created under section 3311.52 or 3311.521 of the Revised Code and 3164
a county school financing district created under section 3311.50 3165
of the Revised Code.3166

       (3) "Local taxing unit" means a subdivision or taxing unit, 3167
as defined in section 5705.01 of the Revised Code, a park district 3168
created under Chapter 1545. of the Revised Code, or a township 3169
park district established under section 511.23 of the Revised 3170
Code, but excludes school districts and joint vocational school 3171
districts.3172

       (4) "State education aid," for a school district, means the 3173
following:3174

       (a) For fiscal years prior to fiscal year 2010, the sum of 3175
state aid amounts computed for the district under the following 3176
provisions, as they existed for the applicable fiscal year: 3177
divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section 3178
3317.022; divisions (B), (C), and (D) of section 3317.023; 3179
divisions (G), (L), and (N) of section 3317.024; and sections 3180
3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and 3181
3317.053 of the Revised Code; and the adjustments required by: 3182
division (C) of section 3310.08; division (C)(2) of section 3183
3310.41; division (C) of section 3314.08; division (D)(2) of 3184
section 3314.091; division (D) of section 3314.13; divisions (E), 3185
(K), (L), (M), and (N) of section 3317.023; division (C) of 3186
section 3317.20; and sections 3313.979 and 3313.981 of the Revised 3187
Code. However, when calculating state education aid for a school 3188
district for fiscal years 2008 and 2009, include the amount 3189
computed for the district under Section 269.20.80 of H.B. 119 of 3190
the 127th general assembly, as subsequently amended, instead of 3191
division (D) of section 3317.022 of the Revised Code; and include 3192
amounts calculated under Section 269.30.80 of H.B. 119 of the 3193
127th general assembly, as subsequently amended.3194

       (b) For fiscal years 2010 and 2011, the sum of the amounts 3195
computed for the district under former sections 3306.052, 3306.12, 3196
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code and 3197
the following provisions, as they existed for the applicable 3198
fiscal year: division (G) of section 3317.024; sections 3317.05, 3199
3317.052, and 3317.053 of the Revised Code; and the adjustments 3200
required by division (C) of section 3310.08; division (C)(2) of 3201
section 3310.41; division (C) of section 3314.08; division (D)(2) 3202
of section 3314.091; division (D) of section 3314.13; divisions 3203
(E), (K), (L), (M), and (N) of section 3317.023; division (C) of 3204
section 3317.20; and sections 3313.979, 3313.981, and 3326.33 of 3205
the Revised Code.3206

       (c) For fiscal years 2012 and 2013, the amount paid in 3207
accordance with the section of H.B. 153 of the 129th general 3208
assembly entitled "FUNDING FOR CITY, EXEMPTED VILLAGE, AND LOCAL 3209
SCHOOL DISTRICTS" and the adjustments required by division (C) of 3210
section 3310.08; division (C)(2) of section 3310.41; section 3211
3310.55; division (C) of section 3314.08; division (D)(2) of 3212
section 3314.091; division (D) of section 3314.13; divisions (B), 3213
(H), (I), (J), and (K) of section 3317.023; division (C) of 3214
section 3317.20; and sections 3313.979 and 3313.981 of the Revised 3215
Code.3216

       (5) "State education aid," for a joint vocational school 3217
district, means the following:3218

       (a) For fiscal years prior to fiscal year 2010, the sum of 3219
the state aid amounts computed for the district under division (N) 3220
of section 3317.024 and section 3317.16 of the Revised Code. 3221
However, when calculating state education aid for a joint 3222
vocational school district for fiscal years 2008 and 2009, include 3223
the amount computed for the district under Section 269.30.90 of 3224
H.B. 119 of the 127th general assembly, as subsequently amended.3225

       (b) For fiscal years 2010 and 2011, the amount computed for 3226
the district in accordance with the section of H.B. 1 of the 128th 3227
general assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL 3228
DISTRICTS".3229

       (c) For fiscal years 2012 and 2013, the amount paid in 3230
accordance with the section of H.B. 153 of the 129th general 3231
assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL DISTRICTS."3232

        (6) "State education aid offset" means the amount determined 3233
for each school district or joint vocational school district under 3234
division (A)(1) of section 5727.85 of the Revised Code.3235

       (7) "Recognized valuation" has the same meaning as in section 3236
3317.02 of the Revised Code.3237

       (8) "Electric company tax value loss" means the amount 3238
determined under division (D) of this section.3239

       (9) "Natural gas company tax value loss" means the amount 3240
determined under division (E) of this section.3241

       (10) "Tax value loss" means the sum of the electric company 3242
tax value loss and the natural gas company tax value loss.3243

       (11) "Fixed-rate levy" means any tax levied on property other 3244
than a fixed-sum levy.3245

       (12) "Fixed-rate levy loss" means the amount determined under 3246
division (G) of this section.3247

       (13) "Fixed-sum levy" means a tax levied on property at 3248
whatever rate is required to produce a specified amount of tax 3249
money or levied in excess of the ten-mill limitation to pay debt 3250
charges, and includes school district emergency levies imposed3251
charged and payable pursuant to section 5705.194 of the Revised 3252
Code.3253

       (14) "Fixed-sum levy loss" means the amount determined under 3254
division (H) of this section.3255

       (15) "Consumer price index" means the consumer price index 3256
(all items, all urban consumers) prepared by the bureau of labor 3257
statistics of the United States department of labor.3258

       (16) "Total resources" hasand "total library resources" have3259
the same meaningmeanings as in section 5751.20 of the Revised 3260
Code.3261

       (17) "2011 current expense S.B. 3 allocation" means the sum 3262
of payments received by a school district or joint vocational 3263
school district in fiscal year 2011 for current expense levy 3264
losses pursuant to division (C)(2) of section 5727.85 of the 3265
Revised Code. If a fixed-rate levy eligible for reimbursement is 3266
not imposedcharged and payable in any year after tax year 2010, 3267
"2011 current expense S.B. 3 allocation" used to compute payments 3268
to be made under division (C)(3) of section 5727.85 of the Revised 3269
Code in the tax years following the last year the levy is imposed3270
charged and payable shall be reduced by the amount ofto the 3271
extent that those payments are attributable to the fixed-rate levy 3272
loss of that levy.3273

       (18) "2010 current expense S.B. 3 allocation" means the sum 3274
of payments received by a municipal corporation in calendar year 3275
2010 for current expense levy losses pursuant to division (A)(1) 3276
of section 5727.86 of the Revised Code, excluding any such 3277
payments received for current expense levy losses attributable to 3278
a tax levied under section 5705.23 of the Revised Code. If a 3279
fixed-rate levy eligible for reimbursement is not imposedcharged 3280
and payable in any year after tax year 2010, "2010 current expense 3281
S.B. 3 allocation" used to compute payments to be made under 3282
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code 3283
in the tax years following the last year the levy is imposed3284
charged and payable shall be reduced by the amount ofto the 3285
extent that those payments are attributable to the fixed-rate levy 3286
loss of that levy.3287

       (19) "2010 S.B. 3 allocation" means the sum of payments 3288
received by a local taxing unit during calendar year 2010 pursuant 3289
to division (A)(1) of section 5727.86 of the Revised Code, 3290
excluding any such payments received for fixed-rate levy losses 3291
attributable to a tax levied under section 5705.23 of the Revised 3292
Code. If a fixed-rate levy eligible for reimbursement is not 3293
imposedcharged and payable in any year after tax year 2010, "2010 3294
S.B. 3 allocation" used to compute payments to be made under 3295
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code 3296
in the tax years following the last year the levy is imposed3297
charged and payable shall be reduced by the amount ofto the 3298
extent that those payments are attributable to the fixed-rate levy 3299
loss of that levy.3300

       (20) "Total S.B. 3 allocation" means, in the case of a school 3301
district or joint vocational school district, the sum of the 3302
amountspayments received in fiscal year 2011 pursuant to 3303
divisions (C)(2) and (D) of section 5727.85 of the Revised Code. 3304
In the case of a local taxing unit, "total S.B. 3 allocation" 3305
means the sum of payments received by the unit in calendar year 3306
2010 pursuant to divisions (A)(1) and (4) of section 5727.86 of 3307
the Revised Code, excluding any such payments received for 3308
fixed-rate levy losses attributable to a tax levied under section 3309
5705.23 of the Revised Code. If a fixed-rate levy eligible for 3310
reimbursement is not imposedcharged and payable in any year after 3311
tax year 2010, "total S.B. 3 allocation" used to compute payments 3312
to be made under division (C)(3) of section 5727.85 or division 3313
(A)(1)(d) or (e) of section 5727.86 of the Revised Code in the tax 3314
years following the last year the levy is imposedcharged and 3315
payable shall be reduced by the amount ofto the extent that those 3316
payments are attributable to the fixed-rate levy loss of that levy 3317
as would be computed under division (C)(2) of section 5727.85 or 3318
division (A)(1)(b) of section 5727.86 of the Revised Code.3319

       (21) "2011 non-current expense S.B. 3 allocation" means the 3320
difference of a school district's or joint vocational school 3321
district's total S.B. 3 allocation minus the sum of the school 3322
district's 2011 current expense S.B. 3 allocation and the portion 3323
of the school district's total S.B. 3 allocation constituting 3324
reimbursement for debt levies pursuant to division (D) of section 3325
5727.85 of the Revised Code.3326

       (22) "2010 non-current expense S.B. 3 allocation" means the 3327
difference of a municipal corporation's total S.B. 3 allocation 3328
minus the sum of its 2010 current expense S.B. 3 allocation and 3329
the portion of its total S.B. 3 allocation constituting 3330
reimbursement for debt levies pursuant to division (A)(4) of 3331
section 5727.86 of the Revised Code. 3332

       (23) "S.B. 3 allocation for library purposes" means, in the 3333
case of a county, municipal corporation, school district, or 3334
township public library that receives the proceeds of a tax levied 3335
under section 5705.23 of the Revised Code, the sum of the payments 3336
received by the public library in calendar year 2010 pursuant to 3337
section 5727.86 of the Revised Code for fixed-rate levy losses 3338
attributable to a tax levied under section 5705.23 of the Revised 3339
Code. If a fixed-rate levy authorized under section 5705.23 of the 3340
Revised Code that is eligible for reimbursement is not charged and 3341
payable in any year after tax year 2010, "S.B. 3 allocation for 3342
library purposes" used to compute payments to be made under 3343
division (A)(1)(f) of section 5727.86 of the Revised Code in the 3344
tax years following the last year the levy is charged and payable 3345
shall be reduced to the extent that those payments are 3346
attributable to the fixed-rate levy loss of that levy as would be 3347
computed under division (A)(1)(b) of section 5727.86 of the 3348
Revised Code.3349

        (24) "Threshold per cent" means, in the case of a school 3350
district or joint vocational school district, two per cent for 3351
fiscal year 2012 and four per cent for fiscal years 2013 and 3352
thereafter. In the case of a local taxing unit or public library 3353
that receives the proceeds of a tax levied under section 5705.23 3354
of the Revised Code, "threshold per cent" means two per cent for 3355
calendar year 2011, four per cent for calendar year 2012, and six 3356
per cent for calendar years 2013 and thereafter.3357

       (B) The kilowatt-hour tax receipts fund is hereby created in 3358
the state treasury and shall consist of money arising from the tax 3359
imposed by section 5727.81 of the Revised Code. All money in the 3360
kilowatt-hour tax receipts fund shall be credited as follows:3361

Fiscal Year General Revenue Fund School District Property Tax Replacement Fund Local Government Property Tax Replacement Fund 3362
2001-2011 63.0% 25.4% 11.6% 3363
2012 and thereafter 88.0% 9.0% 3.0% 3364

       (C) The natural gas tax receipts fund is hereby created in 3365
the state treasury and shall consist of money arising from the tax 3366
imposed by section 5727.811 of the Revised Code. All money in the 3367
fund shall be credited as follows:3368

       (1) For fiscal years before fiscal year 2012:3369

       (a) Sixty-eight and seven-tenths per cent shall be credited 3370
to the school district property tax replacement fund for the 3371
purpose of making the payments described in section 5727.85 of the 3372
Revised Code.3373

       (b) Thirty-one and three-tenths per cent shall be credited to 3374
the local government property tax replacement fund for the purpose 3375
of making the payments described in section 5727.86 of the Revised 3376
Code.3377

       (2) For fiscal years 2012 and thereafter, one hundred per 3378
cent to the general revenue fund.3379

       (D) Not later than January 1, 2002, the tax commissioner 3380
shall determine for each taxing district its electric company tax 3381
value loss, which is the sum of the applicable amounts described 3382
in divisions (D)(1) to (4) of this section:3383

       (1) The difference obtained by subtracting the amount 3384
described in division (D)(1)(b) from the amount described in 3385
division (D)(1)(a) of this section.3386

       (a) The value of electric company and rural electric company 3387
tangible personal property as assessed by the tax commissioner for 3388
tax year 1998 on a preliminary assessment, or an amended 3389
preliminary assessment if issued prior to March 1, 1999, and as 3390
apportioned to the taxing district for tax year 1998;3391

       (b) The value of electric company and rural electric company 3392
tangible personal property as assessed by the tax commissioner for 3393
tax year 1998 had the property been apportioned to the taxing 3394
district for tax year 2001, and assessed at the rates in effect 3395
for tax year 2001.3396

       (2) The difference obtained by subtracting the amount 3397
described in division (D)(2)(b) from the amount described in 3398
division (D)(2)(a) of this section.3399

       (a) The three-year average for tax years 1996, 1997, and 1998 3400
of the assessed value from nuclear fuel materials and assemblies 3401
assessed against a person under Chapter 5711. of the Revised Code 3402
from the leasing of them to an electric company for those 3403
respective tax years, as reflected in the preliminary assessments;3404

       (b) The three-year average assessed value from nuclear fuel 3405
materials and assemblies assessed under division (D)(2)(a) of this 3406
section for tax years 1996, 1997, and 1998, as reflected in the 3407
preliminary assessments, using an assessment rate of twenty-five 3408
per cent.3409

       (3) In the case of a taxing district having a nuclear power 3410
plant within its territory, any amount, resulting in an electric 3411
company tax value loss, obtained by subtracting the amount 3412
described in division (D)(1) of this section from the difference 3413
obtained by subtracting the amount described in division (D)(3)(b) 3414
of this section from the amount described in division (D)(3)(a) of 3415
this section.3416

        (a) The value of electric company tangible personal property 3417
as assessed by the tax commissioner for tax year 2000 on a 3418
preliminary assessment, or an amended preliminary assessment if 3419
issued prior to March 1, 2001, and as apportioned to the taxing 3420
district for tax year 2000;3421

        (b) The value of electric company tangible personal property 3422
as assessed by the tax commissioner for tax year 2001 on a 3423
preliminary assessment, or an amended preliminary assessment if 3424
issued prior to March 1, 2002, and as apportioned to the taxing 3425
district for tax year 2001.3426

       (4) In the case of a taxing district having a nuclear power 3427
plant within its territory, the difference obtained by subtracting 3428
the amount described in division (D)(4)(b) of this section from 3429
the amount described in division (D)(4)(a) of this section, 3430
provided that such difference is greater than ten per cent of the 3431
amount described in division (D)(4)(a) of this section.3432

        (a) The value of electric company tangible personal property 3433
as assessed by the tax commissioner for tax year 2005 on a 3434
preliminary assessment, or an amended preliminary assessment if 3435
issued prior to March 1, 2006, and as apportioned to the taxing 3436
district for tax year 2005;3437

        (b) The value of electric company tangible personal property 3438
as assessed by the tax commissioner for tax year 2006 on a 3439
preliminary assessment, or an amended preliminary assessment if 3440
issued prior to March 1, 2007, and as apportioned to the taxing 3441
district for tax year 2006.3442

       (E) Not later than January 1, 2002, the tax commissioner 3443
shall determine for each taxing district its natural gas company 3444
tax value loss, which is the sum of the amounts described in 3445
divisions (E)(1) and (2) of this section:3446

       (1) The difference obtained by subtracting the amount 3447
described in division (E)(1)(b) from the amount described in 3448
division (E)(1)(a) of this section.3449

       (a) The value of all natural gas company tangible personal 3450
property, other than property described in division (E)(2) of this 3451
section, as assessed by the tax commissioner for tax year 1999 on 3452
a preliminary assessment, or an amended preliminary assessment if 3453
issued prior to March 1, 2000, and apportioned to the taxing 3454
district for tax year 1999;3455

       (b) The value of all natural gas company tangible personal 3456
property, other than property described in division (E)(2) of this 3457
section, as assessed by the tax commissioner for tax year 1999 had 3458
the property been apportioned to the taxing district for tax year 3459
2001, and assessed at the rates in effect for tax year 2001.3460

       (2) The difference in the value of current gas obtained by 3461
subtracting the amount described in division (E)(2)(b) from the 3462
amount described in division (E)(2)(a) of this section.3463

       (a) The three-year average assessed value of current gas as 3464
assessed by the tax commissioner for tax years 1997, 1998, and 3465
1999 on a preliminary assessment, or an amended preliminary 3466
assessment if issued prior to March 1, 2001, and as apportioned in 3467
the taxing district for those respective years;3468

       (b) The three-year average assessed value from current gas 3469
under division (E)(2)(a) of this section for tax years 1997, 1998, 3470
and 1999, as reflected in the preliminary assessment, using an 3471
assessment rate of twenty-five per cent.3472

       (F) The tax commissioner may request that natural gas 3473
companies, electric companies, and rural electric companies file a 3474
report to help determine the tax value loss under divisions (D) 3475
and (E) of this section. The report shall be filed within thirty 3476
days of the commissioner's request. A company that fails to file 3477
the report or does not timely file the report is subject to the 3478
penalty in section 5727.60 of the Revised Code.3479

       (G) Not later than January 1, 2002, the tax commissioner 3480
shall determine for each school district, joint vocational school 3481
district, and local taxing unit its fixed-rate levy loss, which is 3482
the sum of its electric company tax value loss multiplied by the 3483
tax rate in effect in tax year 1998 for fixed-rate levies and its 3484
natural gas company tax value loss multiplied by the tax rate in 3485
effect in tax year 1999 for fixed-rate levies.3486

       (H) Not later than January 1, 2002, the tax commissioner 3487
shall determine for each school district, joint vocational school 3488
district, and local taxing unit its fixed-sum levy loss, which is 3489
the amount obtained by subtracting the amount described in 3490
division (H)(2) of this section from the amount described in 3491
division (H)(1) of this section:3492

       (1) The sum of the electric company tax value loss multiplied 3493
by the tax rate in effect in tax year 1998, and the natural gas 3494
company tax value loss multiplied by the tax rate in effect in tax 3495
year 1999, for fixed-sum levies for all taxing districts within 3496
each school district, joint vocational school district, and local 3497
taxing unit. For the years 2002 through 2006, this computation 3498
shall include school district emergency levies that existed in 3499
1998 in the case of the electric company tax value loss, and 1999 3500
in the case of the natural gas company tax value loss, and all 3501
other fixed-sum levies that existed in 1998 in the case of the 3502
electric company tax value loss and 1999 in the case of the 3503
natural gas company tax value loss and continue to be charged in 3504
the tax year preceding the distribution year. For the years 2007 3505
through 2016 in the case of school district emergency levies, and 3506
for all years after 2006 in the case of all other fixed-sum 3507
levies, this computation shall exclude all fixed-sum levies that 3508
existed in 1998 in the case of the electric company tax value loss 3509
and 1999 in the case of the natural gas company tax value loss, 3510
but are no longer in effect in the tax year preceding the 3511
distribution year. For the purposes of this section, an emergency 3512
levy that existed in 1998 in the case of the electric company tax 3513
value loss, and 1999 in the case of the natural gas company tax 3514
value loss, continues to exist in a year beginning on or after 3515
January 1, 2007, but before January 1, 2017, if, in that year, the 3516
board of education levies a school district emergency levy for an 3517
annual sum at least equal to the annual sum levied by the board in 3518
tax year 1998 or 1999, respectively, less the amount of the 3519
payment certified under this division for 2002.3520

       (2) The total taxable value in tax year 1999 less the tax 3521
value loss in each school district, joint vocational school 3522
district, and local taxing unit multiplied by one-fourth of one 3523
mill.3524

       If the amount computed under division (H) of this section for 3525
any school district, joint vocational school district, or local 3526
taxing unit is greater than zero, that amount shall equal the 3527
fixed-sum levy loss reimbursed pursuant to division (F) of section 3528
5727.85 of the Revised Code or division (A)(2) of section 5727.86 3529
of the Revised Code, and the one-fourth of one mill that is 3530
subtracted under division (H)(2) of this section shall be 3531
apportioned among all contributing fixed-sum levies in the 3532
proportion of each levy to the sum of all fixed-sum levies within 3533
each school district, joint vocational school district, or local 3534
taxing unit.3535

       (I) Notwithstanding divisions (D), (E), (G), and (H) of this 3536
section, in computing the tax value loss, fixed-rate levy loss, 3537
and fixed-sum levy loss, the tax commissioner shall use the 3538
greater of the 1998 tax rate or the 1999 tax rate in the case of 3539
levy losses associated with the electric company tax value loss, 3540
but the 1999 tax rate shall not include for this purpose any tax 3541
levy approved by the voters after June 30, 1999, and the tax 3542
commissioner shall use the greater of the 1999 or the 2000 tax 3543
rate in the case of levy losses associated with the natural gas 3544
company tax value loss.3545

       (J) Not later than January 1, 2002, the tax commissioner 3546
shall certify to the department of education the tax value loss 3547
determined under divisions (D) and (E) of this section for each 3548
taxing district, the fixed-rate levy loss calculated under 3549
division (G) of this section, and the fixed-sum levy loss 3550
calculated under division (H) of this section. The calculations 3551
under divisions (G) and (H) of this section shall separately 3552
display the levy loss for each levy eligible for reimbursement.3553

       (K) Not later than September 1, 2001, the tax commissioner 3554
shall certify the amount of the fixed-sum levy loss to the county 3555
auditor of each county in which a school district with a fixed-sum 3556
levy loss has territory.3557

       Sec. 5727.86.  (A) Not later than January 1, 2002, theThe3558
tax commissioner shall compute the payments to be made to each 3559
local taxing unit, and to each public library that receives the 3560
proceeds of a tax levied under section 5705.23 of the Revised 3561
Code, for each year according to divisions (A)(1), (2), (3), and 3562
(4) and division (E) of this section, and shall distribute the 3563
payments in the manner prescribed by division (C) of this section. 3564
The calculation of the fixed-sum levy loss shall cover a time 3565
period sufficient to include all fixed-sum levies for which the 3566
tax commissioner determined, pursuant to division (H) of section 3567
5727.84 of the Revised Code, that a fixed-sum levy loss is to be 3568
reimbursed.3569

       (1) Except as provided in divisions (A)(3) and (4) of this 3570
section, the following amounts shall be paid on or before the 3571
thirty-first day of August and the twenty-eighth day of February:3572

       (a) For years 2002 through 2006, fifty per cent of the 3573
fixed-rate levy loss computed under division (G) of section 3574
5727.84 of the Revised Code;3575

       (b) For years 2007 through 2010, forty per cent of the 3576
fixed-rate levy loss computed under division (G) of section 3577
5727.84 of the Revised Code;3578

       (c) For the payment in 2011 to be made on or before the 3579
twentieth day of February, the amount required to be paid in 2010 3580
on or before the twentieth day of February;3581

       (d) For the payment in 2011 to be made on or before the 3582
thirty-first day of August and for all payments to be made in 3583
years 2012 and thereafter, the sum of the amounts in divisions 3584
(A)(1)(d)(i) or (ii) and (iii) of this section:3585

       (i) If the ratio of fifty per cent of the taxing unit's 2010 3586
S.B. 3 allocation to its total resources is equal to or less than 3587
the threshold per cent, zero;3588

       (ii) If the ratio of fifty per cent of the taxing unit's 2010 3589
S.B. 3 allocation to its total resources is greater than the 3590
threshold per cent, the difference of fifty per cent of the 2010 3591
S.B. 3 allocation minus the product of total resources multiplied 3592
by the threshold per cent;3593

       (iii) In the case of a municipal corporation, fifty per cent 3594
of the product of its 2010 non-current expense S.B. 3 allocation 3595
multiplied by seventy-five per cent for year 2011, fifty per cent 3596
for year 2012, and twenty-five percent for years 2013 and 3597
thereafter.3598

       (e) For 2012 and each year thereafter, the sum of the amounts 3599
in divisions (A)(1)(e)(i) or (ii) and (iii) of this section:3600

       (i) If the ratio of the taxing unit's 2010 S.B. 3 allocation 3601
to its total resources is equal to or less than the threshold per 3602
cent, zero;3603

       (ii) If the ratio of the taxing unit's 2010 S.B. 3 allocation 3604
to its total resources is greater than the threshold per cent, 3605
fifty per cent of the difference of the 2010 S.B. 3 allocation 3606
minus the product of total resources multiplied by the threshold 3607
per cent;3608

       (iii) In the case of a municipal corporation, fifty per cent 3609
of the product of its 2010 non-current expense S.B. 3 allocation 3610
multiplied by fifty per cent for year 2012 and by twenty-five per 3611
cent for years 2013 and thereafter.3612

       (f) For the payment in 2012 to be made to a public library on 3613
or before the thirty-first day of August and for all such payments 3614
to be made in 2013 and thereafter, the amount in division 3615
(A)(1)(f)(i) or (ii) of this section:3616

        (i) If the ratio of S.B. 3 allocation for library purposes to 3617
total library resources is equal to or less than the threshold per 3618
cent, zero;3619

        (ii) If the ratio of S.B. 3 allocation for library purposes 3620
to total library resources is greater than the threshold per cent, 3621
fifty per cent of the difference of the S.B. 3 allocation for 3622
library purposes minus the product of total library resources 3623
multiplied by the threshold per cent.3624

       (2) For fixed-sum levy losses determined under division (H) 3625
of section 5727.84 of the Revised Code, payments shall be made in 3626
the amount of one hundred per cent of the fixed-sum levy loss for 3627
payments required to be made in 2002 and thereafter.3628

       (3) A local taxing unit in a county of less than two hundred 3629
fifty square miles that receives eighty per cent or more of its 3630
combined general fund and bond retirement fund revenues from 3631
property taxes and rollbacks based on 1997 actual revenues as 3632
presented in its 1999 tax budget, and in which electric companies 3633
and rural electric companies comprise over twenty per cent of its 3634
property valuation, shall receive one hundred per cent of its 3635
fixed-rate levy losses from electric company tax value losses 3636
certified under division (A) of this section in years 2002 to 3637
2010. Beginning in 2011, payments for such local taxing units 3638
shall be determined under division (A)(1) of this section.3639

       (4) For taxes levied within the ten-mill limitation or 3640
pursuant to a municipal charter for debt purposes in tax year 1998 3641
in the case of electric company tax value losses, and in tax year 3642
1999 in the case of natural gas company tax value losses, payments 3643
shall be made equal to one hundred per cent of the loss computed 3644
as if the tax were a fixed-rate levy, but those payments shall 3645
extend from 2011 through 2016 if the levy was imposedcharged and 3646
payable for debt purposes in tax year 2010. If the levy is not 3647
imposedcharged and payable for debt purposes in tax year 2010 or 3648
any following tax year before tax year 2016, payments for that 3649
levy shall be made under division (A)(1) of this section beginning 3650
with the first year after the year the levy is imposedcharged and 3651
payable for a purpose other than debt. For the purposes of this 3652
division, taxes levied pursuant to a municipal charter refer to 3653
taxes levied pursuant to a provision of a municipal charter that 3654
permits the tax to be levied without prior voter approval.3655

       (B) Beginning in 2003, by the thirty-first day of January of 3656
each year, the tax commissioner shall review the calculation 3657
originally made under division (A) of this section of the 3658
fixed-sum levy loss determined under division (H) of section 3659
5727.84 of the Revised Code. If the commissioner determines that a 3660
fixed-sum levy that had been scheduled to be reimbursed in the 3661
current year has expired, a revised calculation for that and all 3662
subsequent years shall be made.3663

       (C) Payments to local taxing units and public libraries3664
required to be made under divisions (A) and (E) of this section 3665
shall be paid from the local government property tax replacement 3666
fund to the county undivided income tax fund in the proper county 3667
treasury. The county treasurer shall distribute amounts paid under 3668
division (A) of this section to the proper local taxing unit or 3669
public library as if they had been levied and collected as taxes, 3670
and the local taxing unit or public library shall apportion the 3671
amounts so received among its funds in the same proportions as if 3672
those amounts had been levied and collected as taxes. Except in 3673
the case of amounts distributed to the county as a local taxing 3674
unit, amounts distributed under division (E)(2) of this section 3675
shall be credited to the general fund of the local taxing unit 3676
that receives them. Amounts distributed to each county as a local 3677
taxing unit under division (E)(2) of this section shall be 3678
credited in the proportion that the current taxes charged and 3679
payable from each levy of or by the county bears to the total 3680
current taxes charged and payable from all levies of or by the 3681
county.3682

       (D) By February 5, 2002, the tax commissioner shall estimate 3683
the amount of money in the local government property tax 3684
replacement fund in excess of the amount necessary to make 3685
payments in that month under division (C) of this section. 3686
Notwithstanding division (A) of this section, the tax commissioner 3687
may pay any local taxing unit, from those excess funds, nine and 3688
four-tenths times the amount computed for 2002 under division 3689
(A)(1) of this section. A payment made under this division shall 3690
be in lieu of the payment to be made in February 2002 under 3691
division (A)(1) of this section. A local taxing unit receiving a 3692
payment under this division will no longer be entitled to any 3693
further payments under division (A)(1) of this section. A payment 3694
made under this division shall be paid from the local government 3695
property tax replacement fund to the county undivided income tax 3696
fund in the proper county treasury. The county treasurer shall 3697
distribute the payment to the proper local taxing unit as if it 3698
had been levied and collected as taxes, and the local taxing unit 3699
shall apportion the amounts so received among its funds in the 3700
same proportions as if those amounts had been levied and collected 3701
as taxes.3702

       (E)(1) On the thirty-first day of July of 2002, 2003, 2004, 3703
2005, and 2006, and on the thirty-first day of January and July of 3704
2007 through January 2011, if the amount credited to the local 3705
government property tax replacement fund exceeds the amount needed 3706
to be distributed from the fund under division (A) of this section 3707
in the following month, the tax commissioner shall distribute the 3708
excess to each county as follows:3709

       (a) One-half shall be distributed to each county in 3710
proportion to each county's population.3711

       (b) One-half shall be distributed to each county in the 3712
proportion that the amounts determined under divisions (G) and (H) 3713
of section 5727.84 of the Revised Code for all local taxing units 3714
in the county is of the total amounts so determined for all local 3715
taxing units in the state.3716

       (2) The amounts distributed to each county under division (E) 3717
of this section shall be distributed by the county auditor to each 3718
local taxing unit in the county in the proportion that the unit's 3719
current taxes charged and payable are of the total current taxes 3720
charged and payable of all the local taxing units in the county. 3721
If the amount that the county auditor determines to be distributed 3722
to a local taxing unit is less than five dollars, that amount 3723
shall not be distributed, and the amount not distributed shall 3724
remain credited to the county undivided income tax fund. At the 3725
time of the next distribution under division (E)(2) of this 3726
section, any amount that had not been distributed in the prior 3727
distribution shall be added to the amount available for the next 3728
distribution prior to calculation of the amount to be distributed. 3729
As used in this division, "current taxes charged and payable" 3730
means the taxes charged and payable as most recently determined 3731
for local taxing units in the county.3732

        After January 2011, any amount that exceeds the amount needed 3733
to be distributed from the fund under division (A) of this section 3734
in the following month shall be transferred to the general revenue 3735
fund.3736

       (F) If the total amount in the local government property tax 3737
replacement fund is insufficient to make all payments under 3738
division (C) of this section at the times the payments are to be 3739
made, the director of budget and management shall transfer from 3740
the general revenue fund to the local government property tax 3741
replacement fund the difference between the total amount to be 3742
paid and the amount in the local government property tax 3743
replacement fund, except that no transfer shall be made by reason 3744
of a deficiency to the extent that it results from the amendment 3745
of section 5727.84 of the Revised Code by Amended Substitute House 3746
Bill 95 of the 125th general assembly.3747

       (G) If all or a part of the territories of two or more local 3748
taxing units are merged, or unincorporated territory of a township 3749
is annexed by a municipal corporation, the tax commissioner shall 3750
adjust the payments made under this section to each of the local 3751
taxing units in proportion to the square mileage apportioned to 3752
the merged or annexed territory, or as otherwise provided by a 3753
written agreement between the legislative authorities of the local 3754
taxing units certified to the tax commissioner not later than the 3755
first day of June of the calendar year in which the payment is to 3756
be made.3757

       Sec. 5731.39. (A)This section does not apply to, and the 3758
written permission of the tax commissioner is not required for 3759
asset transfers with respect to, decedents dying on or after 3760
January 1, 2013.3761

       (A) No corporation organized or existing under the laws of 3762
this state shall transfer on its books or issue a new certificate 3763
for any share of its capital stock registered in the name of a 3764
decedent, or in trust for a decedent, or in the name of a decedent 3765
and another person or persons, without the written consent of the 3766
tax commissioner.3767

       (B) No safe deposit company, trust company, financial 3768
institution as defined in division (A) of section 5725.01 of the 3769
Revised Code or other corporation or person, having in possession, 3770
control, or custody a deposit standing in the name of a decedent, 3771
or in trust for a decedent, or in the name of a decedent and 3772
another person or persons, shall deliver or transfer an amount in 3773
excess of three-fourths of the total value of such deposit, 3774
including accrued interest and dividends, as of the date of 3775
decedent's death, without the written consent of the tax 3776
commissioner. The written consent of the tax commissioner need not 3777
be obtained prior to the delivery or transfer of amounts having a 3778
value of three-fourths or less of said total value.3779

       (C) No life insurance company shall pay the proceeds of an 3780
annuity or matured endowment contract, or of a life insurance 3781
contract payable to the estate of a decedent, or of any other 3782
insurance contract taxable under Chapter 5731. of the Revised 3783
Code, without the written consent of the tax commissioner. Any 3784
life insurance company may pay the proceeds of any insurance 3785
contract not specified in this division (C) without the written 3786
consent of the tax commissioner.3787

       (D) No trust company or other corporation or person shall pay 3788
the proceeds of any death benefit, retirement, pension or profit 3789
sharing plan in excess of two thousand dollars, without the 3790
written consent of the tax commissioner. Such trust company or 3791
other corporation or person, however, may pay the proceeds of any 3792
death benefit, retirement, pension, or profit-sharing plan which 3793
consists of insurance on the life of the decedent payable to a 3794
beneficiary other than the estate of the insured without the 3795
written consent of the tax commissioner.3796

       (E) No safe deposit company, trust company, financial 3797
institution as defined in division (A) of section 5725.01 of the 3798
Revised Code, or other corporation or person, having in 3799
possession, control, or custody securities, assets, or other 3800
property (including the shares of the capital stock of, or other 3801
interest in, such safe deposit company, trust company, financial 3802
institution as defined in division (A) of section 5725.01 of the 3803
Revised Code, or other corporation), standing in the name of a 3804
decedent, or in trust for a decedent, or in the name of a decedent 3805
and another person or persons, and the transfer of which is 3806
taxable under Chapter 5731. of the Revised Code, shall deliver or 3807
transfer any such securities, assets, or other property which have 3808
a value as of the date of decedent's death in excess of 3809
three-fourths of the total value thereof, without the written 3810
consent of the tax commissioner. The written consent of the tax 3811
commissioner need not be obtained prior to the delivery or 3812
transfer of any such securities, assets, or other property having 3813
a value of three-fourths or less of said total value.3814

       (F) No safe deposit company, financial institution as defined 3815
in division (A) of section 5725.01 of the Revised Code, or other 3816
corporation or person having possession or control of a safe 3817
deposit box or similar receptacle standing in the name of a 3818
decedent or in the name of the decedent and another person or 3819
persons, or to which the decedent had a right of access, except 3820
when such safe deposit box or other receptacle stands in the name 3821
of a corporation or partnership, or in the name of the decedent as 3822
guardian or executor, shall deliver any of the contents thereof 3823
unless the safe deposit box or similar receptacle has been opened 3824
and inventoried in the presence of the tax commissioner or the 3825
commissioner's agent, and a written consent to transfer issued; 3826
provided, however, that a safe deposit company, financial 3827
institution, or other corporation or person having possession or 3828
control of a safe deposit box may deliver wills, deeds to burial 3829
lots, and insurance policies to a representative of the decedent, 3830
but that a representative of the safe deposit company, financial 3831
institution, or other corporation or person must supervise the 3832
opening of the box and make a written record of the wills, deeds, 3833
and policies removed. Such written record shall be included in the 3834
tax commissioner's inventory records.3835

       (G) Notwithstanding any provision of this section:3836

       (1) The tax commissioner may authorize any delivery or 3837
transfer or waive any of the foregoing requirements under such 3838
terms and conditions as the commissioner may prescribe;3839

       (2) An adult care facility, as defined in section 5119.70 of 3840
the Revised Code, or a home, as defined in section 3721.10 of the 3841
Revised Code, may transfer or use the money in a personal needs 3842
allowance account in accordance with section 5111.113 of the 3843
Revised Code without the written consent of the tax commissioner, 3844
and without the account having been opened and inventoried in the 3845
presence of the commissioner or the commissioner's agent. 3846

       Failure to comply with this section shall render such safe 3847
deposit company, trust company, life insurance company, financial 3848
institution as defined in division (A) of section 5725.01 of the 3849
Revised Code, or other corporation or person liable for the amount 3850
of the taxes and interest due under the provisions of Chapter 3851
5731. of the Revised Code on the transfer of such stock, deposit, 3852
proceeds of an annuity or matured endowment contract or of a life 3853
insurance contract payable to the estate of a decedent, or other 3854
insurance contract taxable under Chapter 5731. of the Revised 3855
Code, proceeds of any death benefit, retirement, pension, or 3856
profit sharing plan in excess of two thousand dollars, or 3857
securities, assets, or other property of any resident decedent, 3858
and in addition thereto, to a penalty of not less than five 3859
hundred or more than five thousand dollars.3860

       Sec. 5733.056.  (A) As used in this section:3861

       (1) "Billing address" means the address where any notice, 3862
statement, or bill relating to a customer's account is mailed, as 3863
indicated in the books and records of the taxpayer on the first 3864
day of the taxable year or on such later date in the taxable year 3865
when the customer relationship began.3866

       (2) "Borrower or credit card holder located in this state" 3867
means:3868

       (a) A borrower, other than a credit card holder, that is 3869
engaged in a trade or business and maintains its commercial 3870
domicile in this state; or3871

       (b) A borrower that is not engaged in a trade or business, or 3872
a credit card holder, whose billing address is in this state.3873

       (3) "Branch" means a "domestic branch" as defined in section 3874
3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12 U.S.C. 3875
1813(o), as amended.3876

       (4) "Compensation" means wages, salaries, commissions, and 3877
any other form of remuneration paid to employees for personal 3878
services that are included in such employee's gross income under 3879
the Internal Revenue Code. In the case of employees not subject to 3880
the Internal Revenue Code, such as those employed in foreign 3881
countries, the determination of whether such payments would 3882
constitute gross income to such employees under the Internal 3883
Revenue Code shall be made as though such employees were subject 3884
to the Internal Revenue Code.3885

       (5) "Credit card" means a credit, travel, or entertainment 3886
card.3887

       (6) "Credit card issuer's reimbursement fee" means the fee a 3888
taxpayer receives from a merchant's bank because one of the 3889
persons to whom the taxpayer has issued a credit card has charged 3890
merchandise or services to the credit card.3891

       (7) "Deposits" has the meaning given in section 3 of the 3892
"Federal Deposit Insurance Act," 64 Stat. 873, 12 U.S.C. 1813(1), 3893
as amended.3894

       (8) "Employee" means, with respect to a particular taxpayer, 3895
any individual who under the usual common law rules applicable in 3896
determining the employer-employee relationship, has the status of 3897
an employee of that taxpayer.3898

       (9) "Gross rents" means the actual sum of money or other 3899
consideration payable for the use or possession of property. 3900
"Gross rents" includes:3901

       (a) Any amount payable for the use or possession of real 3902
property or tangible personal property whether designated as a 3903
fixed sum of money or as a percentage of receipts, profits, or 3904
otherwise;3905

       (b) Any amount payable as additional rent or in lieu of rent, 3906
such as interest, taxes, insurance, repairs, or any other amount 3907
required to be paid by the terms of a lease or other arrangement; 3908
and3909

       (c) A proportionate part of the cost of any improvement to 3910
real property made by or on behalf of the taxpayer which reverts 3911
to the owner or lessor upon termination of a lease or other 3912
arrangement. The amount to be included in gross rents is the 3913
amount of amortization or depreciation allowed in computing the 3914
taxable income base for the taxable year. However, where a 3915
building is erected on leased land, by or on behalf of the 3916
taxpayer, the value of the land is determined by multiplying the 3917
gross rent by eight, and the value of the building is determined 3918
in the same manner as if owned by the taxpayer.3919

       (d) The following are not included in the term "gross rents":3920

       (i) Reasonable amounts payable as separate charges for water 3921
and electric service furnished by the lessor;3922

       (ii) Reasonable amounts payable as service charges for 3923
janitorial services furnished by the lessor;3924

       (iii) Reasonable amounts payable for storage, provided such 3925
amounts are payable for space not designated and not under the 3926
control of the taxpayer; and3927

       (iv) That portion of any rental payment which is applicable 3928
to the space subleased from the taxpayer and not used by it.3929

       (10) "Loan" means any extension of credit resulting from 3930
direct negotiations between the taxpayer and its customer, or the 3931
purchase, in whole or in part, of such extension of credit from 3932
another. Loans include debt obligations of subsidiaries, 3933
participations, syndications, and leases treated as loans for 3934
federal income tax purposes. "Loan" does not include: properties 3935
treated as loans under section 595 of the Internal Revenue Code; 3936
futures or forward contracts; options; notional principal 3937
contracts such as swaps; credit card receivables, including 3938
purchased credit card relationships; non-interest bearing balances 3939
due from depositor institutions; cash items in the process of 3940
collection; federal funds sold; securities purchased under 3941
agreements to resell; assets held in a trading account; 3942
securities; interests in a real estate mortgage investment conduit 3943
or other mortgage-backed or asset-backed security; and other 3944
similar items.3945

       (11) "Loan secured by real property" means that fifty per 3946
cent or more of the aggregate value of the collateral used to 3947
secure a loan or other obligation, when valued at fair market 3948
value as of the time the original loan or obligation was incurred, 3949
was real property.3950

       (12) "Merchant discount" means the fee, or negotiated 3951
discount, charged to a merchant by the taxpayer for the privilege 3952
of participating in a program whereby a credit card is accepted in 3953
payment for merchandise or services sold to the card holder.3954

       (13) "Participation" means an extension of credit in which an 3955
undivided ownership interest is held on a pro rata basis in a 3956
single loan or pool of loans and related collateral. In a loan 3957
participation, the credit originator initially makes the loan and 3958
then subsequently resells all or a portion of it to other lenders. 3959
The participation may or may not be known to the borrower.3960

       (14) "Principal base of operations" with respect to 3961
transportation property means the place of more or less permanent 3962
nature from which the property is regularly directed or 3963
controlled. With respect to an employee, the "principal base of 3964
operations" means the place of more or less permanent nature from 3965
which the employee regularly (a) starts work and to which the 3966
employee customarily returns in order to receive instructions from 3967
the employer or (b) communicates with the employee's customers or 3968
other persons or (c) performs any other functions necessary to the 3969
exercise of the trade or profession at some other point or points.3970

       (15) "Qualified institution" means a financial institution 3971
that on or after June 1, 1997:3972

       (a)(i) Has consummated one or more approved transactions with 3973
insured banks with different home states that would qualify under 3974
section 102 of the "Riegle-Neal Interstate Banking and Branching 3975
Efficiency Act of 1994," Public Law 103-328, 108 Stat. 2338;3976

       (ii) Is a federal savings association or federal savings bank 3977
that has consummated one or more interstate acquisitions that 3978
result in a financial institution that has branches in more than 3979
one state; or3980

       (iii) Has consummated one or more approved interstate 3981
acquisitions under authority of Title XI of the Revised Code that 3982
result in a financial institution that has branches in more than 3983
one state; and3984

       (b) Has at least nine per cent of its deposits in this state 3985
as of the last day of June prior to the beginning of the tax year.3986

       (16) "Real property owned" and "tangible personal property 3987
owned" mean real and tangible personal property, respectively, on 3988
which the taxpayer may claim depreciation for federal income tax 3989
purposes, or to which the taxpayer holds legal title and on which 3990
no other person may claim depreciation for federal income tax 3991
purposes, or could claim depreciation if subject to federal income 3992
tax. Real and tangible personal property do not include coin, 3993
currency, or property acquired in lieu of or pursuant to a 3994
foreclosure.3995

       (17) "Regular place of business" means an office at which the 3996
taxpayer carries on its business in a regular and systematic 3997
manner and which is continuously maintained, occupied, and used by 3998
employees of the taxpayer.3999

       (18) "State" means a state of the United States, the District 4000
of Columbia, the commonwealth of Puerto Rico, or any territory or 4001
possession of the United States.4002

       (19) "Syndication" means an extension of credit in which two 4003
or more persons fund and each person is at risk only up to a 4004
specified percentage of the total extension of credit or up to a 4005
specified dollar amount.4006

       (20) "Transportation property" means vehicles and vessels 4007
capable of moving under their own power, such as aircraft, trains, 4008
water vessels and motor vehicles, as well as any equipment or 4009
containers attached to such property, such as rolling stock, 4010
barges, trailers, or the like.4011

       (21) "Qualified financial institution" means a financial 4012
institution in which not less than eighty per cent of the 4013
financial institution's ownership interest is owned directly or 4014
indirectly by a grandfathered unitary savings and loan holding 4015
company described in 12 U.S.C. 1467a(c)(9)(C).4016

       (B) The annual financial institution report determines the 4017
value of the issued and outstanding shares of stock of the 4018
taxpayer, and is the base or measure of the franchise tax 4019
liability. Such determination shall be made as of the date shown 4020
by the report to have been the beginning of the financial 4021
institution's annual accounting period that includes the first day 4022
of January of the tax year. For purposes of this section, division 4023
(A) of section 5733.05, and division (D) of section 5733.06 of the 4024
Revised Code, the value of the issued and outstanding shares of 4025
stock of the financial institution shall include the total value, 4026
as shown by the books of the financial institution, of its 4027
capital, surplus, whether earned or unearned, undivided profits, 4028
and reserves, but exclusive of:4029

       (1) Reserves for accounts receivable, depreciation, 4030
depletion, and any other valuation reserves with respect to 4031
specific assets;4032

       (2) Taxes due and payable during the year for which such 4033
report was made;4034

       (3) Voting stock and participation certificates in 4035
corporations chartered pursuant to the "Farm Credit Act of 1971," 4036
85 Stat. 597, 12 U.S.C. 2091, as amended;4037

       (4) Good will, appreciation, and abandoned property as set up 4038
in the annual report of the financial institution, provided a 4039
certified balance sheet of the company is made available upon the 4040
request of the tax commissioner. Such balance sheet shall not be a 4041
part of the public records, but shall be a confidential report for 4042
use of the tax commissioner only.4043

       (5) A portion of the value of the issued and outstanding 4044
shares of stock of such financial institution equal to the amount 4045
obtained by multiplying such value by the quotient obtained by:4046

       (a) Dividing (1) the amount of the financial institution's 4047
assets, as shown on its books, represented by investments in the 4048
capital stock and indebtedness of public utilities, except 4049
electric companies and combined companies, and, for tax years 2005 4050
and thereafter, telephone companies, of which at least eighty per 4051
cent of the utility's issued and outstanding common stock is owned 4052
by the financial institution by (2) the total assets of such 4053
financial institution as shown on its books;4054

       (b) Dividing (1) the amount of the financial institution's 4055
assets, as shown on its books, represented by investments in the 4056
capital stock and indebtedness of insurance companies of which at 4057
least eighty per cent of the insurance company's issued and 4058
outstanding common stock is owned by the financial institution by 4059
(2) the total assets of such financial institution as shown on its 4060
books;4061

       (c) Dividing (1) the amount of the financial institution's 4062
assets, as shown on its books, represented by investments in the 4063
capital stock and indebtedness of other financial institutions of 4064
which at least twenty-five per cent of the other financial 4065
institution's issued and outstanding common stock is owned by the 4066
financial institution by (2) the total assets of the financial 4067
institution as shown on its books. Division (B)(5)(c) of this 4068
section applies only with respect to such other financial 4069
institutions that for the tax year immediately following the 4070
taxpayer's taxable year will pay the tax imposed by division (D) 4071
of section 5733.06 of the Revised Code.4072

       (6) Land that has been determined pursuant to section 5713.31 4073
of the Revised Code by the county auditor of the county in which 4074
the land is located to be devoted exclusively to agricultural use 4075
as of the first Monday of June in the financial institution's 4076
taxable year.4077

       (7) Property within this state used exclusively during the 4078
taxable year for qualified research as defined in section 5733.05 4079
of the Revised Code.4080

       (C) TheExcept as provided under division (I) of this 4081
section, the base upon which the tax levied under division (D) of 4082
section 5733.06 of the Revised Code shall be computed by 4083
multiplying the value of a financial institution's issued and 4084
outstanding shares of stock as determined in division (B) of this 4085
section by a fraction. The numerator of the fraction is the sum of 4086
the following: the property factor multiplied by fifteen, the 4087
payroll factor multiplied by fifteen, and the sales factor 4088
multiplied by seventy. The denominator of the fraction is one 4089
hundred, provided that the denominator shall be reduced by fifteen 4090
if the property factor has a denominator of zero, by fifteen if 4091
the payroll factor has a denominator of zero, and by seventy if 4092
the sales factor has a denominator of zero.4093

       (D) A financial institution shall calculate the property 4094
factor as follows:4095

       (1) The property factor is a fraction, the numerator of which 4096
is the average value of real property and tangible personal 4097
property rented to the taxpayer that is located or used within 4098
this state during the taxable year, the average value of real and 4099
tangible personal property owned by the taxpayer that is located 4100
or used within this state during the taxable year, and the average 4101
value of the taxpayer's loans and credit card receivables that are 4102
located within this state during the taxable year; and the 4103
denominator of which is the average value of all such property 4104
located or used within and without this state during the taxable 4105
year.4106

       (2)(a) The value of real property and tangible personal 4107
property owned by the taxpayer is the original cost or other basis 4108
of such property for federal income tax purposes without regard to 4109
depletion, depreciation, or amortization.4110

       (b) Loans are valued at their outstanding principal balance, 4111
without regard to any reserve for bad debts. If a loan is 4112
charged-off in whole or in part for federal income tax purposes, 4113
the portion of the loan charged-off is not outstanding. A 4114
specifically allocated reserve established pursuant to financial 4115
accounting guidelines which is treated as charged-off for federal 4116
income tax purposes shall be treated as charged-off for purposes 4117
of this section.4118

       (c) Credit card receivables are valued at their outstanding 4119
principal balance, without regard to any reserve for bad debts. If 4120
a credit card receivable is charged-off in whole or in part for 4121
federal income tax purposes, the portion of the receivable 4122
charged-off is not outstanding.4123

       (3) The average value of property owned by the taxpayer is 4124
computed on an annual basis by adding the value of the property on 4125
the first day of the taxable year and the value on the last day of 4126
the taxable year and dividing the sum by two. If averaging on this 4127
basis does not properly reflect average value, the tax 4128
commissioner may require averaging on a more frequent basis. The 4129
taxpayer may elect to average on a more frequent basis. When 4130
averaging on a more frequent basis is required by the tax 4131
commissioner or is elected by the taxpayer, the same method of 4132
valuation must be used consistently by the taxpayer with respect 4133
to property within and without this state and on all subsequent 4134
returns unless the taxpayer receives prior permission from the tax 4135
commissioner or the tax commissioner requires a different method 4136
of determining value.4137

       (4)(a) The average value of real property and tangible 4138
personal property that the taxpayer has rented from another and is 4139
not treated as property owned by the taxpayer for federal income 4140
tax purposes, shall be determined annually by multiplying the 4141
gross rents payable during the taxable year by eight.4142

       (b) Where the use of the general method described in division 4143
(D)(4)(a) of this section results in inaccurate valuations of 4144
rented property, any other method which properly reflects the 4145
value may be adopted by the tax commissioner or by the taxpayer 4146
when approved in writing by the tax commissioner. Once approved, 4147
such other method of valuation must be used on all subsequent 4148
returns unless the taxpayer receives prior approval from the tax 4149
commissioner or the tax commissioner requires a different method 4150
of valuation.4151

       (5)(a) Except as described in division (D)(5)(b) of this 4152
section, real property and tangible personal property owned by or 4153
rented to the taxpayer is considered to be located within this 4154
state if it is physically located, situated, or used within this 4155
state.4156

       (b) Transportation property is included in the numerator of 4157
the property factor to the extent that the property is used in 4158
this state. The extent an aircraft will be deemed to be used in 4159
this state and the amount of value that is to be included in the 4160
numerator of this state's property factor is determined by 4161
multiplying the average value of the aircraft by a fraction, the 4162
numerator of which is the number of landings of the aircraft in 4163
this state and the denominator of which is the total number of 4164
landings of the aircraft everywhere. If the extent of the use of 4165
any transportation property within this state cannot be 4166
determined, then the property will be deemed to be used wholly in 4167
the state in which the property has its principal base of 4168
operations. A motor vehicle will be deemed to be used wholly in 4169
the state in which it is registered.4170

       (6)(a)(i) A loan, other than a loan or advance described in 4171
division (D)(6)(d) of this section, is considered to be located 4172
within this state if it is properly assigned to a regular place of 4173
business of the taxpayer within this state.4174

       (ii) A loan is properly assigned to the regular place of 4175
business with which it has a preponderance of substantive 4176
contacts. A loan assigned by the taxpayer to a regular place of 4177
business without the state shall be presumed to have been properly 4178
assigned if:4179

       (I) The taxpayer has assigned, in the regular course of its 4180
business, such loan on its records to a regular place of business 4181
consistent with federal or state regulatory requirements;4182

       (II) Such assignment on its records is based upon substantive 4183
contacts of the load to such regular place of business; and4184

       (III) The taxpayer uses the records reflecting assignment of 4185
loans for the filing of all state and local tax returns for which 4186
an assignment of loans to a regular place of business is required.4187

       (iii) The presumption of proper assignment of a loan provided 4188
in division (D)(6)(a)(ii) of this section may be rebutted upon a 4189
showing by the tax commissioner, supported by a preponderance of 4190
the evidence, that the preponderance of substantive contacts 4191
regarding such loan did not occur at the regular place of business 4192
to which it was assigned on the taxpayer's records. When such 4193
presumption has been rebutted, the loan shall then be located 4194
within this state if (1) the taxpayer had a regular place of 4195
business within this state at the time the loan was made; and (2) 4196
the taxpayer fails to show, by a preponderance of the evidence, 4197
that the preponderance of substantive contacts regarding such loan 4198
did not occur within this state.4199

       (b) In the case of a loan which is assigned by the taxpayer 4200
to a place without this state which is not a regular place of 4201
business, it shall be presumed, subject to rebuttal by the 4202
taxpayer on a showing supported by the preponderance of evidence, 4203
that the preponderance of substantive contacts regarding the loan 4204
occurred within this state if, at the time the loan was made the 4205
taxpayer's commercial domicile was within this state.4206

       (c) To determine the state in which the preponderance of 4207
substantive contacts relating to a loan have occurred, the facts 4208
and circumstances regarding the loan at issue shall be reviewed on 4209
a case-by-case basis and consideration shall be given to such 4210
activities as the solicitation, investigation, negotiation, 4211
approval, and administration of the loan. The terms 4212
"solicitation," "investigation," "negotiation," "approval," and 4213
"administration" are defined as follows:4214

       (i) "Solicitation" is either active or passive. Active 4215
solicitation occurs when an employee of the taxpayer initiates the 4216
contact with the customer. Such activity is located at the regular 4217
place of business which the taxpayer's employee is regularly 4218
connected with or working out of, regardless of where the services 4219
of such employee were actually performed. Passive solicitation 4220
occurs when the customer initiates the contact with the taxpayer. 4221
If the customer's initial contact was not at a regular place of 4222
business of the taxpayer, the regular place of business, if any, 4223
where the passive solicitation occurred is determined by the facts 4224
in each case.4225

       (ii) "Investigation" is the procedure whereby employees of 4226
the taxpayer determine the creditworthiness of the customer as 4227
well as the degree of risk involved in making a particular 4228
agreement. Such activity is located at the regular place of 4229
business which the taxpayer's employees are regularly connected 4230
with or working out of, regardless of where the services of such 4231
employees were actually performed.4232

       (iii) Negotiation is the procedure whereby employees of the 4233
taxpayer and its customer determine the terms of the agreement, 4234
such as the amount, duration, interest rate, frequency of 4235
repayment, currency denomination, and security required. Such 4236
activity is located at the regular place of business to which the 4237
taxpayer's employees are regularly connected or working from, 4238
regardless of where the services of such employees were actually 4239
performed.4240

       (iv) "Approval" is the procedure whereby employees or the 4241
board of directors of the taxpayer make the final determination 4242
whether to enter into the agreement. Such activity is located at 4243
the regular place of business to which the taxpayer's employees 4244
are regularly connected or working from, regardless of where the 4245
services of such employees were actually performed. If the board 4246
of directors makes the final determination, such activity is 4247
located at the commercial domicile of the taxpayer.4248

       (v) "Administration" is the process of managing the account. 4249
This process includes bookkeeping, collecting the payments, 4250
corresponding with the customer, reporting to management regarding 4251
the status of the agreement, and proceeding against the borrower 4252
or the security interest if the borrower is in default. Such 4253
activity is located at the regular place of business that oversees 4254
this activity.4255

       (d) A loan or advance to a subsidiary corporation at least 4256
fifty-one per cent of whose common stock is owned by the financial 4257
institution shall be allocated in and out of the state by the 4258
application of a ratio whose numerator is the sum of the net book 4259
value of the subsidiary's real property owned in this state and 4260
the subsidiary's tangible personal property owned in this state 4261
and whose denominator is the sum of the subsidiary's real property 4262
owned wherever located and the subsidiary's tangible personal 4263
property owned wherever located. For purposes of calculating this 4264
ratio, the taxpayer shall determine net book value in accordance 4265
with generally accepted accounting principles. If the subsidiary 4266
corporation owns at least fifty-one per cent of the common stock 4267
of another corporation, the ratio shall be calculated by including 4268
the other corporation's real property and tangible personal 4269
property. The calculation of the ratio applies with respect to all 4270
lower-tiered subsidiaries, provided that the immediate parent 4271
corporation of the subsidiary owns at least fifty-one per cent of 4272
the common stock of that subsidiary.4273

       (7) For purposes of determining the location of credit card 4274
receivables, credit card receivables shall be treated as loans and 4275
shall be subject to division (D)(6) of this section.4276

       (8) A loan that has been properly assigned to a state shall, 4277
absent any change of material fact, remain assigned to that state 4278
for the length of the original term of the loan. Thereafter, the 4279
loan may be properly assigned to another state if the loan has a 4280
preponderance of substantive contact to a regular place of 4281
business there.4282

       (E) A financial institution shall calculate the payroll 4283
factor as follows:4284

       (1) The payroll factor is a fraction, the numerator of which 4285
is the total amount paid in this state during the taxable year by 4286
the taxpayer for compensation, and the denominator of which is the 4287
total compensation paid both within and without this state during 4288
the taxable year.4289

       (2) Compensation is paid in this state if any one of the 4290
following tests, applied consecutively, is met:4291

       (a) The employee's services are performed entirely within 4292
this state.4293

       (b) The employee's services are performed both within and 4294
without this state, but the service performed without this state 4295
is incidental to the employee's service within this state. The 4296
term "incidental" means any service which is temporary or 4297
transitory in nature, or which is rendered in connection with an 4298
isolated transaction.4299

       (c) The employee's services are performed both within and 4300
without this state, and:4301

       (i) The employee's principal base of operations is within 4302
this state; or4303

       (ii) There is no principal base of operations in any state in 4304
which some part of the services are performed, but the place from 4305
which the services are directed or controlled is in this state; or4306

       (iii) The principal base of operations and the place from 4307
which the services are directed or controlled are not in any state 4308
in which some part of the service is performed but the employee's 4309
residence is in this state.4310

       (F) A financial institution shall calculate the sales factor 4311
as follows:4312

       (1) The sales factor is a fraction, the numerator of which is 4313
the receipts of the taxpayer in this state during the taxable year 4314
and the denominator of which is the receipts of the taxpayer 4315
within and without this state during the taxable year. The method 4316
of calculating receipts for purposes of the denominator is the 4317
same as the method used in determining receipts for purposes of 4318
the numerator.4319

       (2) The numerator of the sales factor includes receipts from 4320
the lease or rental of real property owned by the taxpayer if the 4321
property is located within this state, or receipts from the 4322
sublease of real property if the property is located within this 4323
state.4324

       (3)(a) Except as described in division (F)(3)(b) of this 4325
section the numerator of the sales factor includes receipts from 4326
the lease or rental of tangible personal property owned by the 4327
taxpayer if the property is located within this state when it is 4328
first placed in service by the lessee.4329

       (b) Receipts from the lease or rental of transportation 4330
property owned by the taxpayer are included in the numerator of 4331
the sales factor to the extent that the property is used in this 4332
state. The extent an aircraft will be deemed to be used in this 4333
state and the amount of receipts that is to be included in the 4334
numerator of this state's sales factor is determined by 4335
multiplying all the receipts from the lease or rental of the 4336
aircraft by a fraction, the numerator of which is the number of 4337
landings of the aircraft in this state and the denominator of 4338
which is the total number of landings of the aircraft. If the 4339
extent of the use of any transportation property within this state 4340
cannot be determined, then the property will be deemed to be used 4341
wholly in the state in which the property has its principal base 4342
of operations. A motor vehicle will be deemed to be used wholly in 4343
the state in which it is registered.4344

       (4)(a) The numerator of the sales factor includes interest 4345
and fees or penalties in the nature of interest from loans secured 4346
by real property if the property is located within this state. If 4347
the property is located both within this state and one or more 4348
other states, the receipts described in this paragraph are 4349
included in the numerator of the sales factor if more than fifty 4350
per cent of the fair market value of the real property is located 4351
within this state. If more than fifty per cent of the fair market 4352
value of the real property is not located within any one state, 4353
then the receipts described in this paragraph shall be included in 4354
the numerator of the sales factor if the borrower is located in 4355
this state.4356

       (b) The determination of whether the real property securing a 4357
loan is located within this state shall be made as of the time the 4358
original agreement was made and any and all subsequent 4359
substitutions of collateral shall be disregarded.4360

       (5) The numerator of the sales factor includes interest and 4361
fees or penalties in the nature of interest from loans not secured 4362
by real property if the borrower is located in this state.4363

       (6) The numerator of the sales factor includes net gains from 4364
the sale of loans. Net gains from the sale of loans includes 4365
income recorded under the coupon stripping rules of section 1286 4366
of the Internal Revenue Code.4367

       (a) The amount of net gains, but not less than zero, from the 4368
sale of loans secured by real property included in the numerator 4369
is determined by multiplying such net gains by a fraction the 4370
numerator of which is the amount included in the numerator of the 4371
sales factor pursuant to division (F)(4) of this section and the 4372
denominator of which is the total amount of interest and fees or 4373
penalties in the nature of interest from loans secured by real 4374
property.4375

       (b) The amount of net gains, but not less than zero, from the 4376
sale of loans not secured by real property included in the 4377
numerator is determined by multiplying such net gains by a 4378
fraction the numerator of which is the amount included in the 4379
numerator of the sales factor pursuant to division (F)(5) of this 4380
section and the denominator of which is the total amount of 4381
interest and fees or penalties in the nature of interest from 4382
loans not secured by real property.4383

       (7) The numerator of the sales factor includes interest and 4384
fees or penalties in the nature of interest from credit card 4385
receivables and receipts from fees charged to card holders, such 4386
as annual fees, if the billing address of the card holder is in 4387
this state.4388

       (8) The numerator of the sales factor includes net gains, but 4389
not less than zero, from the sale of credit card receivables 4390
multiplied by a fraction, the numerator of which is the amount 4391
included in the numerator of the sales factor pursuant to division 4392
(F)(7) of this section and the denominator of which is the 4393
taxpayer's total amount of interest and fees or penalties in the 4394
nature of interest from credit card receivables and fees charged 4395
to card holders.4396

       (9) The numerator of the sales factor includes all credit 4397
card issuer's reimbursement fees multiplied by a fraction, the 4398
numerator of which is the amount included in the numerator of the 4399
sales factor pursuant to division (F)(7) of this section and the 4400
denominator of which is the taxpayer's total amount of interest 4401
and fees or penalties in the nature of interest from credit card 4402
receivables and fees charged to card holders.4403

       (10) The numerator of the sales factor includes receipts from 4404
merchant discount if the commercial domicile of the merchant is in 4405
this state. Such receipts shall be computed net of any card holder 4406
charge backs, but shall not be reduced by any interchange 4407
transaction fees or by any issuer's reimbursement fees paid to 4408
another for charges made by its card holders.4409

       (11)(a)(i) The numerator of the sales factor includes loan 4410
servicing fees derived from loans secured by real property 4411
multiplied by a fraction the numerator of which is the amount 4412
included in the numerator of the sales factor pursuant to division 4413
(F)(4) of this section and the denominator of which is the total 4414
amount of interest and fees or penalties in the nature of interest 4415
from loans secured by real property.4416

       (ii) The numerator of the sales factor includes loan 4417
servicing fees derived from loans not secured by real property 4418
multiplied by a fraction the numerator of which is the amount 4419
included in the numerator of the sales factor pursuant to division 4420
(F)(5) of this section and the denominator of which is the total 4421
amount of interest and fees or penalties in the nature of interest 4422
from loans not secured by real property.4423

       (b) In circumstances in which the taxpayer receives loan 4424
servicing fees for servicing either the secured or the unsecured 4425
loans of another, the numerator of the sales factor shall include 4426
such fees if the borrower is located in this state.4427

       (12) The numerator of the sales factor includes receipts from 4428
services not otherwise apportioned under this section if the 4429
service is performed in this state. If the service is performed 4430
both within and without this state, the numerator of the sales 4431
factor includes receipts from services not otherwise apportioned 4432
under this section, if a greater proportion of the 4433
income-producing activity is performed in this state based on cost 4434
of performance.4435

       (13)(a) Interest, dividends, net gains, but not less than 4436
zero, and other income from investment assets and activities and 4437
from trading assets and activities shall be included in the sales 4438
factor. Investment assets and activities and trading assets and 4439
activities include but are not limited to: investment securities; 4440
trading account assets; federal funds; securities purchased and 4441
sold under agreements to resell or repurchase; options; futures 4442
contracts; forward contracts; notional principal contracts such as 4443
swaps; equities; and foreign currency transactions. With respect 4444
to the investment and trading assets and activities described in 4445
divisions (F)(13)(a)(i) and (ii) of this section, the sales factor 4446
shall include the amounts described in such divisions.4447

       (i) The sales factor shall include the amount by which 4448
interest from federal funds sold and securities purchased under 4449
resale agreements exceeds interest expense on federal funds 4450
purchased and securities sold under repurchase agreements.4451

       (ii) The sales factor shall include the amount by which 4452
interest, dividends, gains, and other income from trading assets 4453
and activities, including, but not limited to, assets and 4454
activities in the matched book, in the arbitrage book, and foreign 4455
currency transactions, exceed amounts paid in lieu of interest, 4456
amounts paid in lieu of dividends, and losses from such assets and 4457
activities.4458

       (b) The numerator of the sales factor includes interest, 4459
dividends, net gains, but not less than zero, and other income 4460
from investment assets and activities and from trading assets and 4461
activities described in division (F)(13)(a) of this section that 4462
are attributable to this state.4463

       (i) The amount of interest, other than interest described in 4464
division (F)(13)(b)(iv) of this section, dividends, other than 4465
dividends described in that division, net gains, but not less than 4466
zero, and other income from investment assets and activities in 4467
the investment account to be attributed to this state and included 4468
in the numerator is determined by multiplying all such income from 4469
such assets and activities by a fraction, the numerator of which 4470
is the average value of such assets which are properly assigned to 4471
a regular place of business of the taxpayer within this state and 4472
the denominator of which is the average value of all such assets.4473

       (ii) The amount of interest from federal funds sold and 4474
purchased and from securities purchased under resale agreements 4475
and securities sold under repurchase agreements attributable to 4476
this state and included in the numerator is determined by 4477
multiplying the amount described in division (F)(13)(a)(i) of this 4478
section from such funds and such securities by a fraction, the 4479
numerator of which is the average value of federal funds sold and 4480
securities purchased under agreements to resell which are properly 4481
assigned to a regular place of business of the taxpayer within 4482
this state and the denominator of which is the average value of 4483
all such funds and such securities.4484

       (iii) The amount of interest, dividends, gains, and other 4485
income from trading assets and activities, including but not 4486
limited to assets and activities in the matched book, in the 4487
arbitrage book, and foreign currency transaction, but excluding 4488
amounts described in division (F)(13)(b)(i) or (ii) of this 4489
section, attributable to this state and included in the numerator 4490
is determined by multiplying the amount described in division 4491
(F)(13)(a)(ii) of this section by a fraction, the numerator of 4492
which is the average value of such trading assets which are 4493
properly assigned to a regular place of business of the taxpayer 4494
within this state and the denominator of which is the average 4495
value of all such assets.4496

       (iv) The amount of dividends received on the capital stock 4497
of, and the amount of interest received from loans and advances 4498
to, subsidiary corporations at least fifty-one per cent of whose 4499
common stock is owned by the reporting financial institution shall 4500
be allocated in and out of this state by the application of a 4501
ratio whose numerator is the sum of the net book value of the 4502
payor's real property owned in this state and the payor's tangible 4503
personal property owned in this state and whose denominator is the 4504
sum of the net book value of the payor's real property owned 4505
wherever located and the payor's tangible personal property owned 4506
wherever located. For purposes of calculating this ratio, the 4507
taxpayer shall determine net book value in accordance with 4508
generally accepted accounting principles.4509

       (v) For purposes of this division, average value shall be 4510
determined using the rules for determining the average value of 4511
tangible personal property set forth in division (D)(2) and (3) of 4512
this section.4513

       (c) In lieu of using the method set forth in division 4514
(F)(13)(b) of this section, the taxpayer may elect, or the tax 4515
commissioner may require in order to fairly represent the business 4516
activity of the taxpayer in this state, the use of the method set 4517
forth in division (F)(13)(c) of this section.4518

       (i) The amount of interest, other than interest described in 4519
division (F)(13)(b)(iv) of this section, dividends, other than 4520
dividends described in that division, net gains, but not less than 4521
zero, and other income from investment assets and activities in 4522
the investment account to be attributed to this state and included 4523
in the numerator is determined by multiplying all such income from 4524
such assets and activities by a fraction, the numerator of which 4525
is the gross income from such assets and activities which are 4526
properly assigned to a regular place of business of the taxpayer 4527
within this state, and the denominator of which is the gross 4528
income from all such assets and activities.4529

       (ii) The amount of interest from federal funds sold and 4530
purchased and from securities purchased under resale agreements 4531
and securities sold under repurchase agreements attributable to 4532
this state and included in the numerator is determined by 4533
multiplying the amount described in division (F)(13)(a)(i) of this 4534
section from such funds and such securities by a fraction, the 4535
numerator of which is the gross income from such funds and such 4536
securities which are properly assigned to a regular place of 4537
business of the taxpayer within this state and the denominator of 4538
which is the gross income from all such funds and such securities.4539

       (iii) The amount of interest, dividends, gains, and other 4540
income from trading assets and activities, including, but not 4541
limited to, assets and activities in the matched book, in the 4542
arbitrage book, and foreign currency transactions, but excluding 4543
amounts described in division (F)(13)(a)(i) or (ii) of this 4544
section, attributable to this state and included in the numerator, 4545
is determined by multiplying the amount described in division 4546
(F)(13)(a)(ii) of this section by a fraction, the numerator of 4547
which is the gross income from such trading assets and activities 4548
which are properly assigned to a regular place of business of the 4549
taxpayer within this state and the denominator of which is the 4550
gross income from all such assets and activities.4551

       (iv) The amount of dividends received on the capital stock 4552
of, and the amount of interest received from loans and advances 4553
to, subsidiary corporations at least fifty-one per cent of whose 4554
common stock is owned by the reporting financial institution shall 4555
be allocated in and out of this state by the application of a 4556
ratio whose numerator is the sum of the net book value of the 4557
payor's real property owned in this state and the payor's tangible 4558
personal property owned in this state and whose denominator is the 4559
sum of the payor's real property owned wherever located and the 4560
payor's tangible personal property owned wherever located. For 4561
purposes of calculating this ratio, the taxpayer shall determine 4562
net book value in accordance with generally accepted accounting 4563
principles.4564

       (d) If the taxpayer elects or is required by the tax 4565
commissioner to use the method set forth in division (F)(13)(c) of 4566
this section, it shall use this method on all subsequent returns 4567
unless the taxpayer receives prior permission from the tax 4568
commissioner to use or the tax commissioner requires a different 4569
method.4570

       (e) The taxpayer shall have the burden of proving that an 4571
investment asset or activity or trading asset or activity was 4572
properly assigned to a regular place of business outside of this 4573
state by demonstrating that the day-to-day decisions regarding the 4574
asset or activity occurred at a regular place of business outside 4575
this state. Where the day-to-day decisions regarding an investment 4576
asset or activity or trading asset or activity occur at more than 4577
one regular place of business and one such regular place of 4578
business is in this state and one such regular place of business 4579
is outside this state such asset or activity shall be considered 4580
to be located at the regular place of business of the taxpayer 4581
where the investment or trading policies or guidelines with 4582
respect to the asset or activity are established. Unless the 4583
taxpayer demonstrates to the contrary, such policies and 4584
guidelines shall be presumed to be established at the commercial 4585
domicile of the taxpayer.4586

       (14) The numerator of the sales factor includes all other 4587
receipts if either:4588

       (a) The income-producing activity is performed solely in this 4589
state; or4590

       (b) The income-producing activity is performed both within 4591
and without this state and a greater proportion of the 4592
income-producing activity is performed within this state than in 4593
any other state, based on costs of performance.4594

       (G) A qualified institution may calculate the base upon which 4595
the fee provided for in division (D) of section 5733.06 of the 4596
Revised Code is determined for each tax year by multiplying the 4597
value of its issued and outstanding shares of stock determined 4598
under division (B) of this section by a single deposits fraction 4599
whose numerator is the deposits assigned to branches in this state 4600
and whose denominator is the deposits assigned to branches 4601
everywhere. Deposits shall be assigned to branches in the same 4602
manner in which the assignment is made for regulatory purposes. If 4603
the base calculated under this division is less than the base 4604
calculated under division (C) of this section, then the qualifying 4605
institution may elect to substitute the base calculated under this 4606
division for the base calculated under division (C) of this 4607
section. Such election may be made annually for each tax year on 4608
the corporate report. The election need not accompany the report; 4609
rather, the election may accompany a subsequently filed but timely 4610
application for refund, a subsequently filed but timely amended 4611
report, or a subsequently filed but timely petition for 4612
reassessment. The election is not irrevocable and it applies only 4613
to the specified tax year. Nothing in this division shall be 4614
construed to extend any statute of limitations set forth in this 4615
chapter.4616

       (H) If the apportionment provisions of this section do not 4617
fairly represent the extent of the taxpayer's business activity in 4618
this state, the taxpayer may petition for or the tax commissioner 4619
may require, in respect to all or any part of the taxpayer's 4620
business activity, if reasonable:4621

       (1) Separate accounting;4622

       (2) The exclusion of any one or more of the factors;4623

       (3) The inclusion of one or more additional factors which 4624
will fairly represent the taxpayer's business activity in this 4625
state; or4626

       (4) The employment of any other method to effectuate an 4627
equitable allocation and apportionment of the taxpayer's value.4628

       (I) For tax year 2012 and every tax year thereafter, a 4629
qualified financial institution may calculate the base upon which 4630
the tax imposed by division (D) of section 5733.06 of the Revised 4631
Code is determined by multiplying the value of the qualified 4632
financial institution's issued and outstanding shares of stock as 4633
determined under division (B) of this section by the sales factor 4634
calculated in division (F) of this section instead of using the 4635
base calculated under division (C) of this section. An election 4636
under this division shall accompany the report or a subsequently 4637
filed but timely amended report.4638

       Sec. 5735.02. (A) A motor fuel dealer shall not receive, use, 4639
sell, or distribute any motor fuel or engage in business within 4640
this state unless the motor fuel dealer holds an unrevoked license 4641
issued by the tax commissioner to engage in such business. To4642

       (B) To procure sucha motor fuel dealer's license, every 4643
motor fuel dealer shall file with the commissioner an application 4644
verified under oath by the applicant and in such form as the 4645
commissioner prescribes, setting forth, in addition to such other 4646
information required by the commissioner, the following:4647

       (A)(1) The name under which the motor fuel dealer will 4648
transact business within the state;4649

       (B)(2) The location, including street number address, of its 4650
principal office or place of business within this state;4651

       (C)(3) The name and address of the owner, or the names and 4652
addresses of the partners if such motor fuel dealer is a 4653
partnership, or the names and addresses of the principal officers 4654
if such motor fuel dealer is a corporation or an association;4655

       (D)(4) If such motor fuel dealer is a corporation organized 4656
under the laws of another state, territory, or country, a 4657
certified copy of the certificate or license issued by the Ohio 4658
secretary of state showing that such corporation is authorized to 4659
transact business in this state;4660

       (E)(5) An agreement that the motor fuel dealer will assume 4661
the liability and will pay the tax on any shipment of motor fuel 4662
made into the state from any other state or foreign country and 4663
sold or caused to be sold by such motor fuel dealer for delivery 4664
to a person in this state who is not the holder of an unrevoked 4665
motor fuel dealer's license.4666

       An(C)(1) Except as provided in division (C)(2) of this 4667
section, an application for a license shall be accompanied by a 4668
bond, of the character stipulated and in the amount provided for 4669
in section 5735.03 of the Revised Code, which shall be filed with 4670
the commissioner.4671

       (2) The tax commissioner may exempt a motor fuel dealer from 4672
the requirements set forth in division (C)(1) of this section and 4673
section 5753.03 of the Revised Code if the motor fuel dealer only 4674
sells or distributes motor fuel upon which the motor fuel taxes 4675
imposed under this chapter have been paid or are not required to 4676
be paid by the motor fuel dealer.4677

       (D) If any application for a license to transact business as 4678
a motor fuel dealer in the state is filed by any person who has 4679
had any license previously canceled for cause by the tax 4680
commissioner; if the commissioner believes that such application 4681
is not filed in good faith or that such application is filed as a 4682
subterfuge by some person for the real person in interest who has 4683
previously had any license canceled for cause by the tax 4684
commissioner; or if the person has violated any provision of this 4685
chapter, then the tax commissioner, after a hearing, of which the 4686
applicant shall be given five days' notice in writing and at which 4687
said applicant shall have the right to appear in person or by 4688
counsel and present testimony, may refuse to issue to such person 4689
a license to transact business as a motor fuel dealer in the 4690
state.4691

       (E) When the application in proper form has been accepted for 4692
filing, and the bond accepted and approved, the commissioner shall 4693
issue to such motor fuel dealer a license to transact business as 4694
a motor fuel dealer in the state, subject to cancellation of such 4695
license as provided by law.4696

       (F) No person shall make a false or fraudulent statement on 4697
the application required by this section.4698

       Sec. 5735.03. EveryExcept as provided in division (C)(2) of 4699
section 5735.02 of the Revised Code, every motor fuel dealer shall 4700
file with the tax commissioner a surety bond of not less than five 4701
thousand dollars, but may be required by the tax commissioner to 4702
submit a surety bond equal to three months' average tax liability, 4703
on a form approved by and with a surety satisfactory to the 4704
commissioner, upon which the motor fuel dealer shall be the 4705
principal obligor and the state shall be the obligee, conditioned 4706
upon the prompt filing of true reports and the payment by the 4707
motor fuel dealer to the treasurer of state of all motor fuel 4708
excise taxes levied by the state, provided that after notice is 4709
received from the state by the surety of the delinquency of any 4710
taxes, if the surety pays the taxes within thirty days after the 4711
receipt of the notice no penalties or interest shall be charged 4712
against the surety. If the surety does not pay the taxes within 4713
thirty days, but does pay within ninety days from the date of the 4714
receipt of notice from the state by the surety, no penalty shall 4715
be assessed against the surety but the surety shall pay interest 4716
at the rate of six per cent per annum on the unpaid taxes from the 4717
date the taxes are due and payable. If the surety does not pay 4718
within ninety days then the surety shall be liable for interest 4719
and penalties, and the tax commissioner may cancel all bonds 4720
issued by the surety.4721

       The commissioner may increase or reduce the amount of the 4722
bond required to be filed by any licensed motor fuel dealer. If 4723
the commissioner finds that it is necessary to increase the bond 4724
to assure payment of the tax, the bond may be increased to an 4725
amount equal to three months/average liability or fifty thousand 4726
dollars, whichever is greater.4727

       If liability upon the bond thus filed by the motor fuel 4728
dealer with the commissioner is discharged or reduced, whether by 4729
judgment rendered, payment made, or otherwise, or if, in the 4730
opinion of the commissioner any surety on the bond theretofore 4731
given has become unsatisfactory or unacceptable, the commissioner 4732
may require the motor fuel dealer to file a new bond with 4733
satisfactory sureties in the same amount, and if a new bond is not 4734
filed the commissioner shall forthwith cancel the license of the 4735
motor fuel dealer. If a new bond is furnished by the motor fuel 4736
dealer, the commissioner shall cancel and surrender the bond of 4737
the motor fuel dealer for which the new bond is substituted.4738

       A surety on a bond furnished by a motor fuel dealer shall be 4739
released from all liability to the state accruing on the bond 4740
after the expiration of sixty days from the date upon which the 4741
surety lodges with the commissioner a written request to be 4742
released. The request shall not operate to release the surety from 4743
any liability already accrued, or which accrues before the 4744
expiration of the sixty-day period. The commissioner shall 4745
promptly on receipt of notice of the request notify the motor fuel 4746
dealer who furnished the bond and, unless the motor fuel dealer on 4747
or before the expiration of the sixty-day period files with the 4748
commissioner a new bond with a surety satisfactory to the 4749
commissioner in the amount and form provided in this section, the 4750
commissioner shall forthwith cancel the license of the motor fuel 4751
dealer. If the new bond is furnished by said motor fuel dealer, 4752
the commissioner shall cancel and surrender the bond of the motor 4753
fuel dealer for which the new bond is substituted.4754

       The commissioner, in lieu of any surety bond required by this 4755
section, may accept a deposit by a motor fuel dealer of cash. Any 4756
cash thus accepted shall be deposited with the treasurer of state 4757
to be held by the treasurer of state, in the same manner as other 4758
cash required to be deposited with the treasurer of state under 4759
the laws of the state, for the account of such motor fuel dealer 4760
and subject to any lawful claim of the state for any excise tax 4761
upon motor fuel, and penalties and interest thereon levied by the 4762
laws of this state. The state shall have a lien upon cash thus 4763
deposited for the amount of any motor fuel excise taxes and 4764
penalty and interest due to the state from the motor fuel dealer 4765
in whose behalf they were deposited. The amount of cash to be thus 4766
accepted shall in all respects be determined in the same manner as 4767
provided in this section for the amount of surety bonds. Any cash 4768
deposited shall be subject to levy upon execution to satisfy any 4769
judgment secured in any action by the state to recover any motor 4770
fuel excise taxes, and penalties and interest found to be due to 4771
the state from such motor fuel dealer. The cash shall be released 4772
by the treasurer of state upon certificate of the commissioner 4773
that the license of the motor fuel dealer in whose behalf they 4774
have been deposited has been canceled or that other security has 4775
been accepted in lieu thereof, and that the state asserts no claim 4776
thereto.4777

       Sec. 5739.01.  As used in this chapter:4778

       (A) "Person" includes individuals, receivers, assignees, 4779
trustees in bankruptcy, estates, firms, partnerships, 4780
associations, joint-stock companies, joint ventures, clubs, 4781
societies, corporations, the state and its political subdivisions, 4782
and combinations of individuals of any form.4783

       (B) "Sale" and "selling" include all of the following 4784
transactions for a consideration in any manner, whether absolutely 4785
or conditionally, whether for a price or rental, in money or by 4786
exchange, and by any means whatsoever:4787

       (1) All transactions by which title or possession, or both, 4788
of tangible personal property, is or is to be transferred, or a 4789
license to use or consume tangible personal property is or is to 4790
be granted;4791

       (2) All transactions by which lodging by a hotel is or is to 4792
be furnished to transient guests;4793

       (3) All transactions by which:4794

       (a) An item of tangible personal property is or is to be 4795
repaired, except property, the purchase of which would not be 4796
subject to the tax imposed by section 5739.02 of the Revised Code;4797

       (b) An item of tangible personal property is or is to be 4798
installed, except property, the purchase of which would not be 4799
subject to the tax imposed by section 5739.02 of the Revised Code 4800
or property that is or is to be incorporated into and will become 4801
a part of a production, transmission, transportation, or 4802
distribution system for the delivery of a public utility service;4803

       (c) The service of washing, cleaning, waxing, polishing, or 4804
painting a motor vehicle is or is to be furnished;4805

       (d) Until August 1, 2003, industrial laundry cleaning 4806
services are or are to be provided and, on and after August 1, 4807
2003, laundry and dry cleaning services are or are to be provided;4808

       (e) Automatic data processing, computer services, or 4809
electronic information services are or are to be provided for use 4810
in business when the true object of the transaction is the receipt 4811
by the consumer of automatic data processing, computer services, 4812
or electronic information services rather than the receipt of 4813
personal or professional services to which automatic data 4814
processing, computer services, or electronic information services 4815
are incidental or supplemental. Notwithstanding any other 4816
provision of this chapter, such transactions that occur between 4817
members of an affiliated group are not sales. An "affiliated 4818
group" means two or more persons related in such a way that one 4819
person owns or controls the business operation of another member 4820
of the group. In the case of corporations with stock, one 4821
corporation owns or controls another if it owns more than fifty 4822
per cent of the other corporation's common stock with voting 4823
rights.4824

       (f) Telecommunications service, including prepaid calling 4825
service, prepaid wireless calling service, or ancillary service, 4826
is or is to be provided, but not including coin-operated telephone 4827
service;4828

       (g) Landscaping and lawn care service is or is to be 4829
provided;4830

       (h) Private investigation and security service is or is to be 4831
provided;4832

       (i) Information services or tangible personal property is 4833
provided or ordered by means of a nine hundred telephone call;4834

       (j) Building maintenance and janitorial service is or is to 4835
be provided;4836

       (k) Employment service is or is to be provided;4837

       (l) Employment placement service is or is to be provided;4838

       (m) Exterminating service is or is to be provided;4839

       (n) Physical fitness facility service is or is to be 4840
provided;4841

       (o) Recreation and sports club service is or is to be 4842
provided;4843

       (p) On and after August 1, 2003, satellite broadcasting 4844
service is or is to be provided;4845

       (q) On and after August 1, 2003, personal care service is or 4846
is to be provided to an individual. As used in this division, 4847
"personal care service" includes skin care, the application of 4848
cosmetics, manicuring, pedicuring, hair removal, tattooing, body 4849
piercing, tanning, massage, and other similar services. "Personal 4850
care service" does not include a service provided by or on the 4851
order of a licensed physician or licensed chiropractor, or the 4852
cutting, coloring, or styling of an individual's hair.4853

       (r) On and after August 1, 2003, the transportation of 4854
persons by motor vehicle or aircraft is or is to be provided, when 4855
the transportation is entirely within this state, except for 4856
transportation provided by an ambulance service, by a transit bus, 4857
as defined in section 5735.01 of the Revised Code, and 4858
transportation provided by a citizen of the United States holding 4859
a certificate of public convenience and necessity issued under 49 4860
U.S.C. 41102;4861

       (s) On and after August 1, 2003, motor vehicle towing service 4862
is or is to be provided. As used in this division, "motor vehicle 4863
towing service" means the towing or conveyance of a wrecked, 4864
disabled, or illegally parked motor vehicle.4865

        (t) On and after August 1, 2003, snow removal service is or 4866
is to be provided. As used in this division, "snow removal 4867
service" means the removal of snow by any mechanized means, but 4868
does not include the providing of such service by a person that 4869
has less than five thousand dollars in sales of such service 4870
during the calendar year.4871

       (u) Electronic publishing service is or is to be provided to 4872
a consumer for use in business, except that such transactions 4873
occurring between members of an affiliated group, as defined in 4874
division (B)(3)(e) of this section, are not sales.4875

       (4) All transactions by which printed, imprinted, 4876
overprinted, lithographic, multilithic, blueprinted, photostatic, 4877
or other productions or reproductions of written or graphic matter 4878
are or are to be furnished or transferred;4879

       (5) The production or fabrication of tangible personal 4880
property for a consideration for consumers who furnish either 4881
directly or indirectly the materials used in the production of 4882
fabrication work; and include the furnishing, preparing, or 4883
serving for a consideration of any tangible personal property 4884
consumed on the premises of the person furnishing, preparing, or 4885
serving such tangible personal property. Except as provided in 4886
section 5739.03 of the Revised Code, a construction contract 4887
pursuant to which tangible personal property is or is to be 4888
incorporated into a structure or improvement on and becoming a 4889
part of real property is not a sale of such tangible personal 4890
property. The construction contractor is the consumer of such 4891
tangible personal property, provided that the sale and 4892
installation of carpeting, the sale and installation of 4893
agricultural land tile, the sale and erection or installation of 4894
portable grain bins, or the provision of landscaping and lawn care 4895
service and the transfer of property as part of such service is 4896
never a construction contract.4897

       As used in division (B)(5) of this section:4898

       (a) "Agricultural land tile" means fired clay or concrete 4899
tile, or flexible or rigid perforated plastic pipe or tubing, 4900
incorporated or to be incorporated into a subsurface drainage 4901
system appurtenant to land used or to be used primarily in 4902
production by farming, agriculture, horticulture, or floriculture. 4903
The term does not include such materials when they are or are to 4904
be incorporated into a drainage system appurtenant to a building 4905
or structure even if the building or structure is used or to be 4906
used in such production.4907

       (b) "Portable grain bin" means a structure that is used or to 4908
be used by a person engaged in farming or agriculture to shelter 4909
the person's grain and that is designed to be disassembled without 4910
significant damage to its component parts.4911

       (6) All transactions in which all of the shares of stock of a 4912
closely held corporation are transferred, or an ownership interest 4913
in a pass-through entity, as defined in section 5733.04 of the 4914
Revised Code, is transferred, if the corporation or pass-through 4915
entity is not engaging in business and its entire assets consist 4916
of boats, planes, motor vehicles, or other tangible personal 4917
property operated primarily for the use and enjoyment of the 4918
shareholders or owners;4919

       (7) All transactions in which a warranty, maintenance or 4920
service contract, or similar agreement by which the vendor of the 4921
warranty, contract, or agreement agrees to repair or maintain the 4922
tangible personal property of the consumer is or is to be 4923
provided;4924

       (8) The transfer of copyrighted motion picture films used 4925
solely for advertising purposes, except that the transfer of such 4926
films for exhibition purposes is not a sale;4927

       (9) On and after August 1, 2003, all transactions by which 4928
tangible personal property is or is to be stored, except such 4929
property that the consumer of the storage holds for sale in the 4930
regular course of business;4931

       (10) All transactions in which "guaranteed auto protection" 4932
is provided whereby a person promises to pay to the consumer the 4933
difference between the amount the consumer receives from motor 4934
vehicle insurance and the amount the consumer owes to a person 4935
holding title to or a lien on the consumer's motor vehicle in the 4936
event the consumer's motor vehicle suffers a total loss under the 4937
terms of the motor vehicle insurance policy or is stolen and not 4938
recovered, if the protection and its price are included in the 4939
purchase or lease agreement;4940

       (11)(a) Except as provided in division (B)(11)(b) of this 4941
section, on and after October 1, 2009, all transactions by which 4942
health care services are paid for, reimbursed, provided, 4943
delivered, arranged for, or otherwise made available by a medicaid 4944
health insuring corporation pursuant to the corporation's contract 4945
with the state.4946

       (b) If the centers for medicare and medicaid services of the 4947
United States department of health and human services determines 4948
that the taxation of transactions described in division (B)(11)(a) 4949
of this section constitutes an impermissible health care-related 4950
tax under section 1903(w) of the "Social Security Act," 49 Stat. 4951
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations 4952
adopted thereunder, the director of job and family services shall 4953
notify the tax commissioner of that determination. Beginning with 4954
the first day of the month following that notification, the 4955
transactions described in division (B)(11)(a) of this section are 4956
not sales for the purposes of this chapter or Chapter 5741. of the 4957
Revised Code. The tax commissioner shall order that the collection 4958
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026, 4959
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code 4960
shall cease for transactions occurring on or after that date.4961

       Except as provided in this section, "sale" and "selling" do 4962
not include transfers of interest in leased property where the 4963
original lessee and the terms of the original lease agreement 4964
remain unchanged, or professional, insurance, or personal service 4965
transactions that involve the transfer of tangible personal 4966
property as an inconsequential element, for which no separate 4967
charges are made.4968

       (C) "Vendor" means the person providing the service or by 4969
whom the transfer effected or license given by a sale is or is to 4970
be made or given and, for sales described in division (B)(3)(i) of 4971
this section, the telecommunications service vendor that provides 4972
the nine hundred telephone service; if two or more persons are 4973
engaged in business at the same place of business under a single 4974
trade name in which all collections on account of sales by each 4975
are made, such persons shall constitute a single vendor.4976

       Physicians, dentists, hospitals, and veterinarians who are 4977
engaged in selling tangible personal property as received from 4978
others, such as eyeglasses, mouthwashes, dentifrices, or similar 4979
articles, are vendors. Veterinarians who are engaged in 4980
transferring to others for a consideration drugs, the dispensing 4981
of which does not require an order of a licensed veterinarian or 4982
physician under federal law, are vendors.4983

       (D)(1) "Consumer" means the person for whom the service is 4984
provided, to whom the transfer effected or license given by a sale 4985
is or is to be made or given, to whom the service described in 4986
division (B)(3)(f) or (i) of this section is charged, or to whom 4987
the admission is granted.4988

       (2) Physicians, dentists, hospitals, and blood banks operated 4989
by nonprofit institutions and persons licensed to practice 4990
veterinary medicine, surgery, and dentistry are consumers of all 4991
tangible personal property and services purchased by them in 4992
connection with the practice of medicine, dentistry, the rendition 4993
of hospital or blood bank service, or the practice of veterinary 4994
medicine, surgery, and dentistry. In addition to being consumers 4995
of drugs administered by them or by their assistants according to 4996
their direction, veterinarians also are consumers of drugs that 4997
under federal law may be dispensed only by or upon the order of a 4998
licensed veterinarian or physician, when transferred by them to 4999
others for a consideration to provide treatment to animals as 5000
directed by the veterinarian.5001

       (3) A person who performs a facility management, or similar 5002
service contract for a contractee is a consumer of all tangible 5003
personal property and services purchased for use in connection 5004
with the performance of such contract, regardless of whether title 5005
to any such property vests in the contractee. The purchase of such 5006
property and services is not subject to the exception for resale 5007
under division (E)(1) of this section.5008

       (4)(a) In the case of a person who purchases printed matter 5009
for the purpose of distributing it or having it distributed to the 5010
public or to a designated segment of the public, free of charge, 5011
that person is the consumer of that printed matter, and the 5012
purchase of that printed matter for that purpose is a sale.5013

       (b) In the case of a person who produces, rather than 5014
purchases, printed matter for the purpose of distributing it or 5015
having it distributed to the public or to a designated segment of 5016
the public, free of charge, that person is the consumer of all 5017
tangible personal property and services purchased for use or 5018
consumption in the production of that printed matter. That person 5019
is not entitled to claim exemption under division (B)(42)(f) of 5020
section 5739.02 of the Revised Code for any material incorporated 5021
into the printed matter or any equipment, supplies, or services 5022
primarily used to produce the printed matter.5023

       (c) The distribution of printed matter to the public or to a 5024
designated segment of the public, free of charge, is not a sale to 5025
the members of the public to whom the printed matter is 5026
distributed or to any persons who purchase space in the printed 5027
matter for advertising or other purposes.5028

       (5) A person who makes sales of any of the services listed in 5029
division (B)(3) of this section is the consumer of any tangible 5030
personal property used in performing the service. The purchase of 5031
that property is not subject to the resale exception under 5032
division (E)(1) of this section.5033

       (6) A person who engages in highway transportation for hire 5034
is the consumer of all packaging materials purchased by that 5035
person and used in performing the service, except for packaging 5036
materials sold by such person in a transaction separate from the 5037
service.5038

       (7) In the case of a transaction for health care services 5039
under division (B)(11) of this section, a medicaid health insuring 5040
corporation is the consumer of such services. The purchase of such 5041
services by a medicaid health insuring corporation is not subject 5042
to the exception for resale under division (E)(1) of this section 5043
or to the exemptions provided under divisions (B)(12), (18), (19), 5044
and (22) of section 5739.02 of the Revised Code.5045

       (E) "Retail sale" and "sales at retail" include all sales, 5046
except those in which the purpose of the consumer is to resell the 5047
thing transferred or benefit of the service provided, by a person 5048
engaging in business, in the form in which the same is, or is to 5049
be, received by the person.5050

       (F) "Business" includes any activity engaged in by any person 5051
with the object of gain, benefit, or advantage, either direct or 5052
indirect. "Business" does not include the activity of a person in 5053
managing and investing the person's own funds.5054

       (G) "Engaging in business" means commencing, conducting, or 5055
continuing in business, and liquidating a business when the 5056
liquidator thereof holds itself out to the public as conducting 5057
such business. Making a casual sale is not engaging in business.5058

       (H)(1)(a) "Price," except as provided in divisions (H)(2), 5059
(3), and (4) of this section, means the total amount of 5060
consideration, including cash, credit, property, and services, for 5061
which tangible personal property or services are sold, leased, or 5062
rented, valued in money, whether received in money or otherwise, 5063
without any deduction for any of the following:5064

       (i) The vendor's cost of the property sold;5065

       (ii) The cost of materials used, labor or service costs, 5066
interest, losses, all costs of transportation to the vendor, all 5067
taxes imposed on the vendor, including the tax imposed under 5068
Chapter 5751. of the Revised Code, and any other expense of the 5069
vendor;5070

       (iii) Charges by the vendor for any services necessary to 5071
complete the sale;5072

       (iv) On and after August 1, 2003, delivery charges. As used 5073
in this division, "delivery charges" means charges by the vendor 5074
for preparation and delivery to a location designated by the 5075
consumer of tangible personal property or a service, including 5076
transportation, shipping, postage, handling, crating, and packing.5077

       (v) Installation charges;5078

       (vi) Credit for any trade-in.5079

       (b) "Price" includes consideration received by the vendor 5080
from a third party, if the vendor actually receives the 5081
consideration from a party other than the consumer, and the 5082
consideration is directly related to a price reduction or discount 5083
on the sale; the vendor has an obligation to pass the price 5084
reduction or discount through to the consumer; the amount of the 5085
consideration attributable to the sale is fixed and determinable 5086
by the vendor at the time of the sale of the item to the consumer; 5087
and one of the following criteria is met:5088

       (i) The consumer presents a coupon, certificate, or other 5089
document to the vendor to claim a price reduction or discount 5090
where the coupon, certificate, or document is authorized, 5091
distributed, or granted by a third party with the understanding 5092
that the third party will reimburse any vendor to whom the coupon, 5093
certificate, or document is presented;5094

       (ii) The consumer identifies the consumer's self to the 5095
seller as a member of a group or organization entitled to a price 5096
reduction or discount. A preferred customer card that is available 5097
to any patron does not constitute membership in such a group or 5098
organization.5099

       (iii) The price reduction or discount is identified as a 5100
third party price reduction or discount on the invoice received by 5101
the consumer, or on a coupon, certificate, or other document 5102
presented by the consumer.5103

       (c) "Price" does not include any of the following:5104

       (i) Discounts, including cash, term, or coupons that are not 5105
reimbursed by a third party that are allowed by a vendor and taken 5106
by a consumer on a sale;5107

       (ii) Interest, financing, and carrying charges from credit 5108
extended on the sale of tangible personal property or services, if 5109
the amount is separately stated on the invoice, bill of sale, or 5110
similar document given to the purchaser;5111

       (iii) Any taxes legally imposed directly on the consumer that 5112
are separately stated on the invoice, bill of sale, or similar 5113
document given to the consumer. For the purpose of this division, 5114
the tax imposed under Chapter 5751. of the Revised Code is not a 5115
tax directly on the consumer, even if the tax or a portion thereof 5116
is separately stated.5117

       (iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this 5118
section, any discount allowed by an automobile manufacturer to its 5119
employee, or to the employee of a supplier, on the purchase of a 5120
new motor vehicle from a new motor vehicle dealer in this state.5121

       (v) The dollar value of a gift card that is not sold by a 5122
vendor or purchased by a consumer and that is redeemed by the 5123
consumer in purchasing tangible personal property or services if 5124
the vendor is not reimbursed and does not receive compensation 5125
from a third party to cover all or part of the gift card value. 5126
For the purposes of this division, a gift card is not sold by a 5127
vendor or purchased by a consumer if it is distributed pursuant to 5128
an awards, loyalty, or promotional program. Past and present 5129
purchases of tangible personal property or services by the 5130
consumer shall not be treated as consideration exchanged for a 5131
gift card.5132

       (2) In the case of a sale of any new motor vehicle by a new 5133
motor vehicle dealer, as defined in section 4517.01 of the Revised 5134
Code, in which another motor vehicle is accepted by the dealer as 5135
part of the consideration received, "price" has the same meaning 5136
as in division (H)(1) of this section, reduced by the credit 5137
afforded the consumer by the dealer for the motor vehicle received 5138
in trade.5139

       (3) In the case of a sale of any watercraft or outboard motor 5140
by a watercraft dealer licensed in accordance with section 5141
1547.543 of the Revised Code, in which another watercraft, 5142
watercraft and trailer, or outboard motor is accepted by the 5143
dealer as part of the consideration received, "price" has the same 5144
meaning as in division (H)(1) of this section, reduced by the 5145
credit afforded the consumer by the dealer for the watercraft, 5146
watercraft and trailer, or outboard motor received in trade. As 5147
used in this division, "watercraft" includes an outdrive unit 5148
attached to the watercraft.5149

       (4) In the case of transactions for health care services 5150
under division (B)(11) of this section, "price" means the amount 5151
of managed care premiums received each month by a medicaid health 5152
insuring corporation.5153

       (I) "Receipts" means the total amount of the prices of the 5154
sales of vendors, provided that the dollar value of gift cards 5155
distributed pursuant to an awards, loyalty, or promotional 5156
program, and cash discounts allowed and taken on sales at the time 5157
they are consummated are not included, minus any amount deducted 5158
as a bad debt pursuant to section 5739.121 of the Revised Code. 5159
"Receipts" does not include the sale price of property returned or 5160
services rejected by consumers when the full sale price and tax 5161
are refunded either in cash or by credit.5162

       (J) "Place of business" means any location at which a person 5163
engages in business.5164

       (K) "Premises" includes any real property or portion thereof 5165
upon which any person engages in selling tangible personal 5166
property at retail or making retail sales and also includes any 5167
real property or portion thereof designated for, or devoted to, 5168
use in conjunction with the business engaged in by such person.5169

       (L) "Casual sale" means a sale of an item of tangible 5170
personal property that was obtained by the person making the sale, 5171
through purchase or otherwise, for the person's own use and was 5172
previously subject to any state's taxing jurisdiction on its sale 5173
or use, and includes such items acquired for the seller's use that 5174
are sold by an auctioneer employed directly by the person for such 5175
purpose, provided the location of such sales is not the 5176
auctioneer's permanent place of business. As used in this 5177
division, "permanent place of business" includes any location 5178
where such auctioneer has conducted more than two auctions during 5179
the year.5180

       (M) "Hotel" means every establishment kept, used, maintained, 5181
advertised, or held out to the public to be a place where sleeping 5182
accommodations are offered to guests, in which five or more rooms 5183
are used for the accommodation of such guests, whether the rooms 5184
are in one or several structures, except as otherwise provided in 5185
division (G) of section 5739.09 of the Revised Code.5186

       (N) "Transient guests" means persons occupying a room or 5187
rooms for sleeping accommodations for less than thirty consecutive 5188
days.5189

       (O) "Making retail sales" means the effecting of transactions 5190
wherein one party is obligated to pay the price and the other 5191
party is obligated to provide a service or to transfer title to or 5192
possession of the item sold. "Making retail sales" does not 5193
include the preliminary acts of promoting or soliciting the retail 5194
sales, other than the distribution of printed matter which 5195
displays or describes and prices the item offered for sale, nor 5196
does it include delivery of a predetermined quantity of tangible 5197
personal property or transportation of property or personnel to or 5198
from a place where a service is performed, regardless of whether 5199
the vendor is a delivery vendor.5200

       (P) "Used directly in the rendition of a public utility 5201
service" means that property that is to be incorporated into and 5202
will become a part of the consumer's production, transmission, 5203
transportation, or distribution system and that retains its 5204
classification as tangible personal property after such 5205
incorporation; fuel or power used in the production, transmission, 5206
transportation, or distribution system; and tangible personal 5207
property used in the repair and maintenance of the production, 5208
transmission, transportation, or distribution system, including 5209
only such motor vehicles as are specially designed and equipped 5210
for such use. Tangible personal property and services used 5211
primarily in providing highway transportation for hire are not 5212
used directly in the rendition of a public utility service. In 5213
this definition, "public utility" includes a citizen of the United 5214
States holding, and required to hold, a certificate of public 5215
convenience and necessity issued under 49 U.S.C. 41102.5216

       (Q) "Refining" means removing or separating a desirable 5217
product from raw or contaminated materials by distillation or 5218
physical, mechanical, or chemical processes.5219

       (R) "Assembly" and "assembling" mean attaching or fitting 5220
together parts to form a product, but do not include packaging a 5221
product.5222

       (S) "Manufacturing operation" means a process in which 5223
materials are changed, converted, or transformed into a different 5224
state or form from which they previously existed and includes 5225
refining materials, assembling parts, and preparing raw materials 5226
and parts by mixing, measuring, blending, or otherwise committing 5227
such materials or parts to the manufacturing process. 5228
"Manufacturing operation" does not include packaging.5229

       (T) "Fiscal officer" means, with respect to a regional 5230
transit authority, the secretary-treasurer thereof, and with 5231
respect to a county that is a transit authority, the fiscal 5232
officer of the county transit board if one is appointed pursuant 5233
to section 306.03 of the Revised Code or the county auditor if the 5234
board of county commissioners operates the county transit system.5235

       (U) "Transit authority" means a regional transit authority 5236
created pursuant to section 306.31 of the Revised Code or a county 5237
in which a county transit system is created pursuant to section 5238
306.01 of the Revised Code. For the purposes of this chapter, a 5239
transit authority must extend to at least the entire area of a 5240
single county. A transit authority that includes territory in more 5241
than one county must include all the area of the most populous 5242
county that is a part of such transit authority. County population 5243
shall be measured by the most recent census taken by the United 5244
States census bureau.5245

       (V) "Legislative authority" means, with respect to a regional 5246
transit authority, the board of trustees thereof, and with respect 5247
to a county that is a transit authority, the board of county 5248
commissioners.5249

       (W) "Territory of the transit authority" means all of the 5250
area included within the territorial boundaries of a transit 5251
authority as they from time to time exist. Such territorial 5252
boundaries must at all times include all the area of a single 5253
county or all the area of the most populous county that is a part 5254
of such transit authority. County population shall be measured by 5255
the most recent census taken by the United States census bureau.5256

       (X) "Providing a service" means providing or furnishing 5257
anything described in division (B)(3) of this section for 5258
consideration.5259

       (Y)(1)(a) "Automatic data processing" means processing of 5260
others' data, including keypunching or similar data entry services 5261
together with verification thereof, or providing access to 5262
computer equipment for the purpose of processing data.5263

       (b) "Computer services" means providing services consisting 5264
of specifying computer hardware configurations and evaluating 5265
technical processing characteristics, computer programming, and 5266
training of computer programmers and operators, provided in 5267
conjunction with and to support the sale, lease, or operation of 5268
taxable computer equipment or systems.5269

       (c) "Electronic information services" means providing access 5270
to computer equipment by means of telecommunications equipment for 5271
the purpose of either of the following:5272

       (i) Examining or acquiring data stored in or accessible to 5273
the computer equipment;5274

       (ii) Placing data into the computer equipment to be retrieved 5275
by designated recipients with access to the computer equipment.5276

       For transactions occurring on or after the effective date of 5277
the amendment of this section by H.B. 157 of the 127th general 5278
assembly, December 21, 2007, "electronic information services" 5279
does not include electronic publishing as defined in division 5280
(LLL) of this section.5281

       (d) "Automatic data processing, computer services, or 5282
electronic information services" shall not include personal or 5283
professional services.5284

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this 5285
section, "personal and professional services" means all services 5286
other than automatic data processing, computer services, or 5287
electronic information services, including but not limited to:5288

       (a) Accounting and legal services such as advice on tax 5289
matters, asset management, budgetary matters, quality control, 5290
information security, and auditing and any other situation where 5291
the service provider receives data or information and studies, 5292
alters, analyzes, interprets, or adjusts such material;5293

       (b) Analyzing business policies and procedures;5294

       (c) Identifying management information needs;5295

       (d) Feasibility studies, including economic and technical 5296
analysis of existing or potential computer hardware or software 5297
needs and alternatives;5298

       (e) Designing policies, procedures, and custom software for 5299
collecting business information, and determining how data should 5300
be summarized, sequenced, formatted, processed, controlled, and 5301
reported so that it will be meaningful to management;5302

       (f) Developing policies and procedures that document how 5303
business events and transactions are to be authorized, executed, 5304
and controlled;5305

       (g) Testing of business procedures;5306

       (h) Training personnel in business procedure applications;5307

       (i) Providing credit information to users of such information 5308
by a consumer reporting agency, as defined in the "Fair Credit 5309
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or 5310
as hereafter amended, including but not limited to gathering, 5311
organizing, analyzing, recording, and furnishing such information 5312
by any oral, written, graphic, or electronic medium;5313

       (j) Providing debt collection services by any oral, written, 5314
graphic, or electronic means.5315

       The services listed in divisions (Y)(2)(a) to (j) of this 5316
section are not automatic data processing or computer services.5317

       (Z) "Highway transportation for hire" means the 5318
transportation of personal property belonging to others for 5319
consideration by any of the following:5320

       (1) The holder of a permit or certificate issued by this 5321
state or the United States authorizing the holder to engage in 5322
transportation of personal property belonging to others for 5323
consideration over or on highways, roadways, streets, or any 5324
similar public thoroughfare;5325

       (2) A person who engages in the transportation of personal 5326
property belonging to others for consideration over or on 5327
highways, roadways, streets, or any similar public thoroughfare 5328
but who could not have engaged in such transportation on December 5329
11, 1985, unless the person was the holder of a permit or 5330
certificate of the types described in division (Z)(1) of this 5331
section;5332

       (3) A person who leases a motor vehicle to and operates it 5333
for a person described by division (Z)(1) or (2) of this section.5334

       (AA)(1) "Telecommunications service" means the electronic 5335
transmission, conveyance, or routing of voice, data, audio, video, 5336
or any other information or signals to a point, or between or 5337
among points. "Telecommunications service" includes such 5338
transmission, conveyance, or routing in which computer processing 5339
applications are used to act on the form, code, or protocol of the 5340
content for purposes of transmission, conveyance, or routing 5341
without regard to whether the service is referred to as voice-over 5342
internet protocol service or is classified by the federal 5343
communications commission as enhanced or value-added. 5344
"Telecommunications service" does not include any of the 5345
following:5346

        (a) Data processing and information services that allow data 5347
to be generated, acquired, stored, processed, or retrieved and 5348
delivered by an electronic transmission to a consumer where the 5349
consumer's primary purpose for the underlying transaction is the 5350
processed data or information;5351

        (b) Installation or maintenance of wiring or equipment on a 5352
customer's premises;5353

        (c) Tangible personal property;5354

       (d) Advertising, including directory advertising;5355

        (e) Billing and collection services provided to third 5356
parties;5357

        (f) Internet access service;5358

        (g) Radio and television audio and video programming 5359
services, regardless of the medium, including the furnishing of 5360
transmission, conveyance, and routing of such services by the 5361
programming service provider. Radio and television audio and video 5362
programming services include, but are not limited to, cable 5363
service, as defined in 47 U.S.C. 522(6), and audio and video 5364
programming services delivered by commercial mobile radio service 5365
providers, as defined in 47 C.F.R. 20.3;5366

        (h) Ancillary service;5367

        (i) Digital products delivered electronically, including 5368
software, music, video, reading materials, or ring tones.5369

        (2) "Ancillary service" means a service that is associated 5370
with or incidental to the provision of telecommunications service, 5371
including conference bridging service, detailed telecommunications 5372
billing service, directory assistance, vertical service, and voice 5373
mail service. As used in this division:5374

        (a) "Conference bridging service" means an ancillary service 5375
that links two or more participants of an audio or video 5376
conference call, including providing a telephone number. 5377
"Conference bridging service" does not include telecommunications 5378
services used to reach the conference bridge.5379

        (b) "Detailed telecommunications billing service" means an 5380
ancillary service of separately stating information pertaining to 5381
individual calls on a customer's billing statement.5382

        (c) "Directory assistance" means an ancillary service of 5383
providing telephone number or address information.5384

        (d) "Vertical service" means an ancillary service that is 5385
offered in connection with one or more telecommunications 5386
services, which offers advanced calling features that allow 5387
customers to identify callers and manage multiple calls and call 5388
connections, including conference bridging service.5389

        (e) "Voice mail service" means an ancillary service that 5390
enables the customer to store, send, or receive recorded messages. 5391
"Voice mail service" does not include any vertical services that 5392
the customer may be required to have in order to utilize the voice 5393
mail service.5394

        (3) "900 service" means an inbound toll telecommunications 5395
service purchased by a subscriber that allows the subscriber's 5396
customers to call in to the subscriber's prerecorded announcement 5397
or live service, and which is typically marketed under the name 5398
"900" service and any subsequent numbers designated by the federal 5399
communications commission. "900 service" does not include the 5400
charge for collection services provided by the seller of the 5401
telecommunications service to the subscriber, or services or 5402
products sold by the subscriber to the subscriber's customer.5403

        (4) "Prepaid calling service" means the right to access 5404
exclusively telecommunications services, which must be paid for in 5405
advance and which enables the origination of calls using an access 5406
number or authorization code, whether manually or electronically 5407
dialed, and that is sold in predetermined units ofor dollars of 5408
which the number declines with use in a known amount.5409

        (5) "Prepaid wireless calling service" means a 5410
telecommunications service that provides the right to utilize 5411
mobile telecommunications service as well as other 5412
non-telecommunications services, including the download of digital 5413
products delivered electronically, and content and ancillary 5414
services, that must be paid for in advance and that is sold in 5415
predetermined units of dollars of which the number declines with 5416
use in a known amount.5417

        (6) "Value-added non-voice data service" means a 5418
telecommunications service in which computer processing 5419
applications are used to act on the form, content, code, or 5420
protocol of the information or data primarily for a purpose other 5421
than transmission, conveyance, or routing.5422

        (7) "Coin-operated telephone service" means a 5423
telecommunications service paid for by inserting money into a 5424
telephone accepting direct deposits of money to operate.5425

        (8) "Customer" has the same meaning as in section 5739.034 of 5426
the Revised Code.5427

       (BB) "Laundry and dry cleaning services" means removing soil 5428
or dirt from towels, linens, articles of clothing, or other fabric 5429
items that belong to others and supplying towels, linens, articles 5430
of clothing, or other fabric items. "Laundry and dry cleaning 5431
services" does not include the provision of self-service 5432
facilities for use by consumers to remove soil or dirt from 5433
towels, linens, articles of clothing, or other fabric items.5434

       (CC) "Magazines distributed as controlled circulation 5435
publications" means magazines containing at least twenty-four 5436
pages, at least twenty-five per cent editorial content, issued at 5437
regular intervals four or more times a year, and circulated 5438
without charge to the recipient, provided that such magazines are 5439
not owned or controlled by individuals or business concerns which 5440
conduct such publications as an auxiliary to, and essentially for 5441
the advancement of the main business or calling of, those who own 5442
or control them.5443

       (DD) "Landscaping and lawn care service" means the services 5444
of planting, seeding, sodding, removing, cutting, trimming, 5445
pruning, mulching, aerating, applying chemicals, watering, 5446
fertilizing, and providing similar services to establish, promote, 5447
or control the growth of trees, shrubs, flowers, grass, ground 5448
cover, and other flora, or otherwise maintaining a lawn or 5449
landscape grown or maintained by the owner for ornamentation or 5450
other nonagricultural purpose. However, "landscaping and lawn care 5451
service" does not include the providing of such services by a 5452
person who has less than five thousand dollars in sales of such 5453
services during the calendar year.5454

       (EE) "Private investigation and security service" means the 5455
performance of any activity for which the provider of such service 5456
is required to be licensed pursuant to Chapter 4749. of the 5457
Revised Code, or would be required to be so licensed in performing 5458
such services in this state, and also includes the services of 5459
conducting polygraph examinations and of monitoring or overseeing 5460
the activities on or in, or the condition of, the consumer's home, 5461
business, or other facility by means of electronic or similar 5462
monitoring devices. "Private investigation and security service" 5463
does not include special duty services provided by off-duty police 5464
officers, deputy sheriffs, and other peace officers regularly 5465
employed by the state or a political subdivision.5466

       (FF) "Information services" means providing conversation, 5467
giving consultation or advice, playing or making a voice or other 5468
recording, making or keeping a record of the number of callers, 5469
and any other service provided to a consumer by means of a nine 5470
hundred telephone call, except when the nine hundred telephone 5471
call is the means by which the consumer makes a contribution to a 5472
recognized charity.5473

       (GG) "Research and development" means designing, creating, or 5474
formulating new or enhanced products, equipment, or manufacturing 5475
processes, and also means conducting scientific or technological 5476
inquiry and experimentation in the physical sciences with the goal 5477
of increasing scientific knowledge which may reveal the bases for 5478
new or enhanced products, equipment, or manufacturing processes.5479

       (HH) "Qualified research and development equipment" means 5480
capitalized tangible personal property, and leased personal 5481
property that would be capitalized if purchased, used by a person 5482
primarily to perform research and development. Tangible personal 5483
property primarily used in testing, as defined in division (A)(4) 5484
of section 5739.011 of the Revised Code, or used for recording or 5485
storing test results, is not qualified research and development 5486
equipment unless such property is primarily used by the consumer 5487
in testing the product, equipment, or manufacturing process being 5488
created, designed, or formulated by the consumer in the research 5489
and development activity or in recording or storing such test 5490
results.5491

       (II) "Building maintenance and janitorial service" means 5492
cleaning the interior or exterior of a building and any tangible 5493
personal property located therein or thereon, including any 5494
services incidental to such cleaning for which no separate charge 5495
is made. However, "building maintenance and janitorial service" 5496
does not include the providing of such service by a person who has 5497
less than five thousand dollars in sales of such service during 5498
the calendar year.5499

       (JJ) "Employment service" means providing or supplying 5500
personnel, on a temporary or long-term basis, to perform work or 5501
labor under the supervision or control of another, when the 5502
personnel so provided or supplied receive their wages, salary, or 5503
other compensation from the provider or supplier of the employment 5504
service or from a third party that provided or supplied the 5505
personnel to the provider or supplier. "Employment service" does 5506
not include:5507

       (1) Acting as a contractor or subcontractor, where the 5508
personnel performing the work are not under the direct control of 5509
the purchaser.5510

       (2) Medical and health care services.5511

       (3) Supplying personnel to a purchaser pursuant to a contract 5512
of at least one year between the service provider and the 5513
purchaser that specifies that each employee covered under the 5514
contract is assigned to the purchaser on a permanent basis.5515

       (4) Transactions between members of an affiliated group, as 5516
defined in division (B)(3)(e) of this section.5517

       (5) Transactions where the personnel so provided or supplied 5518
by a provider or supplier to a purchaser of an employment service 5519
are then provided or supplied by that purchaser to a third party 5520
as an employment service, except "employment service" does include 5521
the transaction between that purchaser and the third party.5522

       (KK) "Employment placement service" means locating or finding 5523
employment for a person or finding or locating an employee to fill 5524
an available position.5525

       (LL) "Exterminating service" means eradicating or attempting 5526
to eradicate vermin infestations from a building or structure, or 5527
the area surrounding a building or structure, and includes 5528
activities to inspect, detect, or prevent vermin infestation of a 5529
building or structure.5530

       (MM) "Physical fitness facility service" means all 5531
transactions by which a membership is granted, maintained, or 5532
renewed, including initiation fees, membership dues, renewal fees, 5533
monthly minimum fees, and other similar fees and dues, by a 5534
physical fitness facility such as an athletic club, health spa, or 5535
gymnasium, which entitles the member to use the facility for 5536
physical exercise.5537

       (NN) "Recreation and sports club service" means all 5538
transactions by which a membership is granted, maintained, or 5539
renewed, including initiation fees, membership dues, renewal fees, 5540
monthly minimum fees, and other similar fees and dues, by a 5541
recreation and sports club, which entitles the member to use the 5542
facilities of the organization. "Recreation and sports club" means 5543
an organization that has ownership of, or controls or leases on a 5544
continuing, long-term basis, the facilities used by its members 5545
and includes an aviation club, gun or shooting club, yacht club, 5546
card club, swimming club, tennis club, golf club, country club, 5547
riding club, amateur sports club, or similar organization.5548

       (OO) "Livestock" means farm animals commonly raised for food, 5549
food production, or other agricultural purposes, including, but 5550
not limited to, cattle, sheep, goats, swine, poultry, and captive 5551
deer. "Livestock" does not include invertebrates, amphibians, 5552
reptiles, domestic pets, animals for use in laboratories or for 5553
exhibition, or other animals not commonly raised for food or food 5554
production.5555

       (PP) "Livestock structure" means a building or structure used 5556
exclusively for the housing, raising, feeding, or sheltering of 5557
livestock, and includes feed storage or handling structures and 5558
structures for livestock waste handling.5559

       (QQ) "Horticulture" means the growing, cultivation, and 5560
production of flowers, fruits, herbs, vegetables, sod, mushrooms, 5561
and nursery stock. As used in this division, "nursery stock" has 5562
the same meaning as in section 927.51 of the Revised Code.5563

       (RR) "Horticulture structure" means a building or structure 5564
used exclusively for the commercial growing, raising, or 5565
overwintering of horticultural products, and includes the area 5566
used for stocking, storing, and packing horticultural products 5567
when done in conjunction with the production of those products.5568

       (SS) "Newspaper" means an unbound publication bearing a title 5569
or name that is regularly published, at least as frequently as 5570
biweekly, and distributed from a fixed place of business to the 5571
public in a specific geographic area, and that contains a 5572
substantial amount of news matter of international, national, or 5573
local events of interest to the general public.5574

       (TT) "Professional racing team" means a person that employs 5575
at least twenty full-time employees for the purpose of conducting 5576
a motor vehicle racing business for profit. The person must 5577
conduct the business with the purpose of racing one or more motor 5578
racing vehicles in at least ten competitive professional racing 5579
events each year that comprise all or part of a motor racing 5580
series sanctioned by one or more motor racing sanctioning 5581
organizations. A "motor racing vehicle" means a vehicle for which 5582
the chassis, engine, and parts are designed exclusively for motor 5583
racing, and does not include a stock or production model vehicle 5584
that may be modified for use in racing. For the purposes of this 5585
division:5586

       (1) A "competitive professional racing event" is a motor 5587
vehicle racing event sanctioned by one or more motor racing 5588
sanctioning organizations, at which aggregate cash prizes in 5589
excess of eight hundred thousand dollars are awarded to the 5590
competitors.5591

       (2) "Full-time employee" means an individual who is employed 5592
for consideration for thirty-five or more hours a week, or who 5593
renders any other standard of service generally accepted by custom 5594
or specified by contract as full-time employment.5595

        (UU)(1) "Lease" or "rental" means any transfer of the 5596
possession or control of tangible personal property for a fixed or 5597
indefinite term, for consideration. "Lease" or "rental" includes 5598
future options to purchase or extend, and agreements described in 5599
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where 5600
the amount of consideration may be increased or decreased by 5601
reference to the amount realized upon the sale or disposition of 5602
the property. "Lease" or "rental" does not include:5603

       (a) A transfer of possession or control of tangible personal 5604
property under a security agreement or a deferred payment plan 5605
that requires the transfer of title upon completion of the 5606
required payments;5607

       (b) A transfer of possession or control of tangible personal 5608
property under an agreement that requires the transfer of title 5609
upon completion of required payments and payment of an option 5610
price that does not exceed the greater of one hundred dollars or 5611
one per cent of the total required payments;5612

       (c) Providing tangible personal property along with an 5613
operator for a fixed or indefinite period of time, if the operator 5614
is necessary for the property to perform as designed. For purposes 5615
of this division, the operator must do more than maintain, 5616
inspect, or set-up the tangible personal property.5617

       (2) "Lease" and "rental," as defined in division (UU) of this 5618
section, shall not apply to leases or rentals that exist before 5619
June 26, 2003.5620

       (3) "Lease" and "rental" have the same meaning as in division 5621
(UU)(1) of this section regardless of whether a transaction is 5622
characterized as a lease or rental under generally accepted 5623
accounting principles, the Internal Revenue Code, Title XIII of 5624
the Revised Code, or other federal, state, or local laws.5625

       (VV) "Mobile telecommunications service" has the same meaning 5626
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No. 5627
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and, 5628
on and after August 1, 2003, includes related fees and ancillary 5629
services, including universal service fees, detailed billing 5630
service, directory assistance, service initiation, voice mail 5631
service, and vertical services, such as caller ID and three-way 5632
calling.5633

       (WW) "Certified service provider" has the same meaning as in 5634
section 5740.01 of the Revised Code.5635

       (XX) "Satellite broadcasting service" means the distribution 5636
or broadcasting of programming or services by satellite directly 5637
to the subscriber's receiving equipment without the use of ground 5638
receiving or distribution equipment, except the subscriber's 5639
receiving equipment or equipment used in the uplink process to the 5640
satellite, and includes all service and rental charges, premium 5641
channels or other special services, installation and repair 5642
service charges, and any other charges having any connection with 5643
the provision of the satellite broadcasting service.5644

       (YY) "Tangible personal property" means personal property 5645
that can be seen, weighed, measured, felt, or touched, or that is 5646
in any other manner perceptible to the senses. For purposes of 5647
this chapter and Chapter 5741. of the Revised Code, "tangible 5648
personal property" includes motor vehicles, electricity, water, 5649
gas, steam, and prewritten computer software.5650

       (ZZ) "Direct mail" means printed material delivered or 5651
distributed by United States mail or other delivery service to a 5652
mass audience or to addressees on a mailing list provided by the 5653
consumer or at the direction of the consumer when the cost of the 5654
items are not billed directly to the recipients. "Direct mail" 5655
includes tangible personal property supplied directly or 5656
indirectly by the consumer to the direct mail vendor for inclusion 5657
in the package containing the printed material. "Direct mail" does 5658
not include multiple items of printed material delivered to a 5659
single address.5660

       (AAA) "Computer" means an electronic device that accepts 5661
information in digital or similar form and manipulates it for a 5662
result based on a sequence of instructions.5663

       (BBB) "Computer software" means a set of coded instructions 5664
designed to cause a computer or automatic data processing 5665
equipment to perform a task.5666

       (CCC) "Delivered electronically" means delivery of computer 5667
software from the seller to the purchaser by means other than 5668
tangible storage media.5669

       (DDD) "Prewritten computer software" means computer software, 5670
including prewritten upgrades, that is not designed and developed 5671
by the author or other creator to the specifications of a specific 5672
purchaser. The combining of two or more prewritten computer 5673
software programs or prewritten portions thereof does not cause 5674
the combination to be other than prewritten computer software. 5675
"Prewritten computer software" includes software designed and 5676
developed by the author or other creator to the specifications of 5677
a specific purchaser when it is sold to a person other than the 5678
purchaser. If a person modifies or enhances computer software of 5679
which the person is not the author or creator, the person shall be 5680
deemed to be the author or creator only of such person's 5681
modifications or enhancements. Prewritten computer software or a 5682
prewritten portion thereof that is modified or enhanced to any 5683
degree, where such modification or enhancement is designed and 5684
developed to the specifications of a specific purchaser, remains 5685
prewritten computer software; provided, however, that where there 5686
is a reasonable, separately stated charge or an invoice or other 5687
statement of the price given to the purchaser for the modification 5688
or enhancement, the modification or enhancement shall not 5689
constitute prewritten computer software.5690

       (EEE)(1) "Food" means substances, whether in liquid, 5691
concentrated, solid, frozen, dried, or dehydrated form, that are 5692
sold for ingestion or chewing by humans and are consumed for their 5693
taste or nutritional value. "Food" does not include alcoholic 5694
beverages, dietary supplements, soft drinks, or tobacco.5695

       (2) As used in division (EEE)(1) of this section:5696

       (a) "Alcoholic beverages" means beverages that are suitable 5697
for human consumption and contain one-half of one per cent or more 5698
of alcohol by volume.5699

       (b) "Dietary supplements" means any product, other than 5700
tobacco, that is intended to supplement the diet and that is 5701
intended for ingestion in tablet, capsule, powder, softgel, 5702
gelcap, or liquid form, or, if not intended for ingestion in such 5703
a form, is not represented as conventional food for use as a sole 5704
item of a meal or of the diet; that is required to be labeled as a 5705
dietary supplement, identifiable by the "supplement facts" box 5706
found on the label, as required by 21 C.F.R. 101.36; and that 5707
contains one or more of the following dietary ingredients:5708

       (i) A vitamin;5709

       (ii) A mineral;5710

       (iii) An herb or other botanical;5711

       (iv) An amino acid;5712

       (v) A dietary substance for use by humans to supplement the 5713
diet by increasing the total dietary intake;5714

       (vi) A concentrate, metabolite, constituent, extract, or 5715
combination of any ingredient described in divisions 5716
(EEE)(2)(b)(i) to (v) of this section.5717

       (c) "Soft drinks" means nonalcoholic beverages that contain 5718
natural or artificial sweeteners. "Soft drinks" does not include 5719
beverages that contain milk or milk products, soy, rice, or 5720
similar milk substitutes, or that contains greater than fifty per 5721
cent vegetable or fruit juice by volume.5722

       (d) "Tobacco" means cigarettes, cigars, chewing or pipe 5723
tobacco, or any other item that contains tobacco.5724

       (FFF) "Drug" means a compound, substance, or preparation, and 5725
any component of a compound, substance, or preparation, other than 5726
food, dietary supplements, or alcoholic beverages that is 5727
recognized in the official United States pharmacopoeia, official 5728
homeopathic pharmacopoeia of the United States, or official 5729
national formulary, and supplements to them; is intended for use 5730
in the diagnosis, cure, mitigation, treatment, or prevention of 5731
disease; or is intended to affect the structure or any function of 5732
the body.5733

       (GGG) "Prescription" means an order, formula, or recipe 5734
issued in any form of oral, written, electronic, or other means of 5735
transmission by a duly licensed practitioner authorized by the 5736
laws of this state to issue a prescription.5737

       (HHH) "Durable medical equipment" means equipment, including 5738
repair and replacement parts for such equipment, that can 5739
withstand repeated use, is primarily and customarily used to serve 5740
a medical purpose, generally is not useful to a person in the 5741
absence of illness or injury, and is not worn in or on the body. 5742
"Durable medical equipment" does not include mobility enhancing 5743
equipment.5744

       (III) "Mobility enhancing equipment" means equipment, 5745
including repair and replacement parts for such equipment, that is 5746
primarily and customarily used to provide or increase the ability 5747
to move from one place to another and is appropriate for use 5748
either in a home or a motor vehicle, that is not generally used by 5749
persons with normal mobility, and that does not include any motor 5750
vehicle or equipment on a motor vehicle normally provided by a 5751
motor vehicle manufacturer. "Mobility enhancing equipment" does 5752
not include durable medical equipment.5753

       (JJJ) "Prosthetic device" means a replacement, corrective, or 5754
supportive device, including repair and replacement parts for the 5755
device, worn on or in the human body to artificially replace a 5756
missing portion of the body, prevent or correct physical deformity 5757
or malfunction, or support a weak or deformed portion of the body. 5758
As used in this division, "prosthetic device" does not include 5759
corrective eyeglasses, contact lenses, or dental prosthesis.5760

       (KKK)(1) "Fractional aircraft ownership program" means a 5761
program in which persons within an affiliated group sell and 5762
manage fractional ownership program aircraft, provided that at 5763
least one hundred airworthy aircraft are operated in the program 5764
and the program meets all of the following criteria:5765

       (a) Management services are provided by at least one program 5766
manager within an affiliated group on behalf of the fractional 5767
owners.5768

       (b) Each program aircraft is owned or possessed by at least 5769
one fractional owner.5770

       (c) Each fractional owner owns or possesses at least a 5771
one-sixteenth interest in at least one fixed-wing program 5772
aircraft.5773

       (d) A dry-lease aircraft interchange arrangement is in effect 5774
among all of the fractional owners.5775

       (e) Multi-year program agreements are in effect regarding the 5776
fractional ownership, management services, and dry-lease aircraft 5777
interchange arrangement aspects of the program.5778

       (2) As used in division (KKK)(1) of this section:5779

       (a) "Affiliated group" has the same meaning as in division 5780
(B)(3)(e) of this section.5781

        (b) "Fractional owner" means a person that owns or possesses 5782
at least a one-sixteenth interest in a program aircraft and has 5783
entered into the agreements described in division (KKK)(1)(e) of 5784
this section.5785

       (c) "Fractional ownership program aircraft" or "program 5786
aircraft" means a turbojet aircraft that is owned or possessed by 5787
a fractional owner and that has been included in a dry-lease 5788
aircraft interchange arrangement and agreement under divisions 5789
(KKK)(1)(d) and (e) of this section, or an aircraft a program 5790
manager owns or possesses primarily for use in a fractional 5791
aircraft ownership program.5792

       (d) "Management services" means administrative and aviation 5793
support services furnished under a fractional aircraft ownership 5794
program in accordance with a management services agreement under 5795
division (KKK)(1)(e) of this section, and offered by the program 5796
manager to the fractional owners, including, at a minimum, the 5797
establishment and implementation of safety guidelines; the 5798
coordination of the scheduling of the program aircraft and crews; 5799
program aircraft maintenance; program aircraft insurance; crew 5800
training for crews employed, furnished, or contracted by the 5801
program manager or the fractional owner; the satisfaction of 5802
record-keeping requirements; and the development and use of an 5803
operations manual and a maintenance manual for the fractional 5804
aircraft ownership program.5805

       (e) "Program manager" means the person that offers management 5806
services to fractional owners pursuant to a management services 5807
agreement under division (KKK)(1)(e) of this section.5808

       (LLL) "Electronic publishing" means providing access to one 5809
or more of the following primarily for business customers, 5810
including the federal government or a state government or a 5811
political subdivision thereof, to conduct research: news; 5812
business, financial, legal, consumer, or credit materials; 5813
editorials, columns, reader commentary, or features; photos or 5814
images; archival or research material; legal notices, identity 5815
verification, or public records; scientific, educational, 5816
instructional, technical, professional, trade, or other literary 5817
materials; or other similar information which has been gathered 5818
and made available by the provider to the consumer in an 5819
electronic format. Providing electronic publishing includes the 5820
functions necessary for the acquisition, formatting, editing, 5821
storage, and dissemination of data or information that is the 5822
subject of a sale.5823

       (MMM) "Medicaid health insuring corporation" means a health 5824
insuring corporation that holds a certificate of authority under 5825
Chapter 1751. of the Revised Code and is under contract with the 5826
department of job and family services pursuant to section 5111.17 5827
of the Revised Code.5828

       (NNN) "Managed care premium" means any premium, capitation, 5829
or other payment a medicaid health insuring corporation receives 5830
for providing or arranging for the provision of health care 5831
services to its members or enrollees residing in this state.5832

       (OOO) "Captive deer" means deer and other cervidae that have 5833
been legally acquired, or their offspring, that are privately 5834
owned for agricultural or farming purposes.5835

       (PPP) "Gift card" means a document, card, certificate, or 5836
other record, whether tangible or intangible, that may be redeemed 5837
by a consumer for a dollar value when making a purchase of 5838
tangible personal property or services.5839

       Sec. 5739.02.  For the purpose of providing revenue with 5840
which to meet the needs of the state, for the use of the general 5841
revenue fund of the state, for the purpose of securing a thorough 5842
and efficient system of common schools throughout the state, for 5843
the purpose of affording revenues, in addition to those from 5844
general property taxes, permitted under constitutional 5845
limitations, and from other sources, for the support of local 5846
governmental functions, and for the purpose of reimbursing the 5847
state for the expense of administering this chapter, an excise tax 5848
is hereby levied on each retail sale made in this state.5849

       (A)(1) The tax shall be collected as provided in section 5850
5739.025 of the Revised Code. The rate of the tax shall be five 5851
and one-half per cent. The tax applies and is collectible when the 5852
sale is made, regardless of the time when the price is paid or 5853
delivered.5854

        (2) In the case of the lease or rental, with a fixed term of 5855
more than thirty days or an indefinite term with a minimum period 5856
of more than thirty days, of any motor vehicles designed by the 5857
manufacturer to carry a load of not more than one ton, watercraft, 5858
outboard motor, or aircraft, or of any tangible personal property, 5859
other than motor vehicles designed by the manufacturer to carry a 5860
load of more than one ton, to be used by the lessee or renter 5861
primarily for business purposes, the tax shall be collected by the 5862
vendor at the time the lease or rental is consummated and shall be 5863
calculated by the vendor on the basis of the total amount to be 5864
paid by the lessee or renter under the lease agreement. If the 5865
total amount of the consideration for the lease or rental includes 5866
amounts that are not calculated at the time the lease or rental is 5867
executed, the tax shall be calculated and collected by the vendor 5868
at the time such amounts are billed to the lessee or renter. In 5869
the case of an open-end lease or rental, the tax shall be 5870
calculated by the vendor on the basis of the total amount to be 5871
paid during the initial fixed term of the lease or rental, and for 5872
each subsequent renewal period as it comes due. As used in this 5873
division, "motor vehicle" has the same meaning as in section 5874
4501.01 of the Revised Code, and "watercraft" includes an outdrive 5875
unit attached to the watercraft.5876

       A lease with a renewal clause and a termination penalty or 5877
similar provision that applies if the renewal clause is not 5878
exercised is presumed to be a sham transaction. In such a case, 5879
the tax shall be calculated and paid on the basis of the entire 5880
length of the lease period, including any renewal periods, until 5881
the termination penalty or similar provision no longer applies. 5882
The taxpayer shall bear the burden, by a preponderance of the 5883
evidence, that the transaction or series of transactions is not a 5884
sham transaction.5885

       (3) Except as provided in division (A)(2) of this section, in 5886
the case of a sale, the price of which consists in whole or in 5887
part of the lease or rental of tangible personal property, the tax 5888
shall be measured by the installments of that lease or rental.5889

       (4) In the case of a sale of a physical fitness facility 5890
service or recreation and sports club service, the price of which 5891
consists in whole or in part of a membership for the receipt of 5892
the benefit of the service, the tax applicable to the sale shall 5893
be measured by the installments thereof.5894

       (B) The tax does not apply to the following:5895

       (1) Sales to the state or any of its political subdivisions, 5896
or to any other state or its political subdivisions if the laws of 5897
that state exempt from taxation sales made to this state and its 5898
political subdivisions;5899

       (2) Sales of food for human consumption off the premises 5900
where sold;5901

       (3) Sales of food sold to students only in a cafeteria, 5902
dormitory, fraternity, or sorority maintained in a private, 5903
public, or parochial school, college, or university;5904

       (4) Sales of newspapers and of magazine subscriptions and 5905
sales or transfers of magazines distributed as controlled 5906
circulation publications;5907

       (5) The furnishing, preparing, or serving of meals without 5908
charge by an employer to an employee provided the employer records 5909
the meals as part compensation for services performed or work 5910
done;5911

       (6) Sales of motor fuel upon receipt, use, distribution, or 5912
sale of which in this state a tax is imposed by the law of this 5913
state, but this exemption shall not apply to the sale of motor 5914
fuel on which a refund of the tax is allowable under division (A) 5915
of section 5735.14 of the Revised Code; and the tax commissioner 5916
may deduct the amount of tax levied by this section applicable to 5917
the price of motor fuel when granting a refund of motor fuel tax 5918
pursuant to division (A) of section 5735.14 of the Revised Code 5919
and shall cause the amount deducted to be paid into the general 5920
revenue fund of this state;5921

       (7) Sales of natural gas by a natural gas company, of water 5922
by a water-works company, or of steam by a heating company, if in 5923
each case the thing sold is delivered to consumers through pipes 5924
or conduits, and all sales of communications services by a 5925
telegraph company, all terms as defined in section 5727.01 of the 5926
Revised Code, and sales of electricity delivered through wires;5927

       (8) Casual sales by a person, or auctioneer employed directly 5928
by the person to conduct such sales, except as to such sales of 5929
motor vehicles, watercraft or outboard motors required to be 5930
titled under section 1548.06 of the Revised Code, watercraft 5931
documented with the United States coast guard, snowmobiles, and 5932
all-purpose vehicles as defined in section 4519.01 of the Revised 5933
Code;5934

       (9)(a) Sales of services or tangible personal property, other 5935
than motor vehicles, mobile homes, and manufactured homes, by 5936
churches, organizations exempt from taxation under section 5937
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit 5938
organizations operated exclusively for charitable purposes as 5939
defined in division (B)(12) of this section, provided that the 5940
number of days on which such tangible personal property or 5941
services, other than items never subject to the tax, are sold does 5942
not exceed six in any calendar year, except as otherwise provided 5943
in division (B)(9)(b) of this section. If the number of days on 5944
which such sales are made exceeds six in any calendar year, the 5945
church or organization shall be considered to be engaged in 5946
business and all subsequent sales by it shall be subject to the 5947
tax. In counting the number of days, all sales by groups within a 5948
church or within an organization shall be considered to be sales 5949
of that church or organization.5950

       (b) The limitation on the number of days on which tax-exempt 5951
sales may be made by a church or organization under division 5952
(B)(9)(a) of this section does not apply to sales made by student 5953
clubs and other groups of students of a primary or secondary 5954
school, or a parent-teacher association, booster group, or similar 5955
organization that raises money to support or fund curricular or 5956
extracurricular activities of a primary or secondary school.5957

       (c) Divisions (B)(9)(a) and (b) of this section do not apply 5958
to sales by a noncommercial educational radio or television 5959
broadcasting station.5960

       (10) Sales not within the taxing power of this state under 5961
the Constitution of the United States;5962

       (11) Except for transactions that are sales under division 5963
(B)(3)(r) of section 5739.01 of the Revised Code, the 5964
transportation of persons or property, unless the transportation 5965
is by a private investigation and security service;5966

       (12) Sales of tangible personal property or services to 5967
churches, to organizations exempt from taxation under section 5968
501(c)(3) of the Internal Revenue Code of 1986, and to any other 5969
nonprofit organizations operated exclusively for charitable 5970
purposes in this state, no part of the net income of which inures 5971
to the benefit of any private shareholder or individual, and no 5972
substantial part of the activities of which consists of carrying 5973
on propaganda or otherwise attempting to influence legislation; 5974
sales to offices administering one or more homes for the aged or 5975
one or more hospital facilities exempt under section 140.08 of the 5976
Revised Code; and sales to organizations described in division (D) 5977
of section 5709.12 of the Revised Code.5978

       "Charitable purposes" means the relief of poverty; the 5979
improvement of health through the alleviation of illness, disease, 5980
or injury; the operation of an organization exclusively for the 5981
provision of professional, laundry, printing, and purchasing 5982
services to hospitals or charitable institutions; the operation of 5983
a home for the aged, as defined in section 5701.13 of the Revised 5984
Code; the operation of a radio or television broadcasting station 5985
that is licensed by the federal communications commission as a 5986
noncommercial educational radio or television station; the 5987
operation of a nonprofit animal adoption service or a county 5988
humane society; the promotion of education by an institution of 5989
learning that maintains a faculty of qualified instructors, 5990
teaches regular continuous courses of study, and confers a 5991
recognized diploma upon completion of a specific curriculum; the 5992
operation of a parent-teacher association, booster group, or 5993
similar organization primarily engaged in the promotion and 5994
support of the curricular or extracurricular activities of a 5995
primary or secondary school; the operation of a community or area 5996
center in which presentations in music, dramatics, the arts, and 5997
related fields are made in order to foster public interest and 5998
education therein; the production of performances in music, 5999
dramatics, and the arts; or the promotion of education by an 6000
organization engaged in carrying on research in, or the 6001
dissemination of, scientific and technological knowledge and 6002
information primarily for the public.6003

       Nothing in this division shall be deemed to exempt sales to 6004
any organization for use in the operation or carrying on of a 6005
trade or business, or sales to a home for the aged for use in the 6006
operation of independent living facilities as defined in division 6007
(A) of section 5709.12 of the Revised Code.6008

       (13) Building and construction materials and services sold to 6009
construction contractors for incorporation into a structure or 6010
improvement to real property under a construction contract with 6011
this state or a political subdivision of this state, or with the 6012
United States government or any of its agencies; building and 6013
construction materials and services sold to construction 6014
contractors for incorporation into a structure or improvement to 6015
real property that are accepted for ownership by this state or any 6016
of its political subdivisions, or by the United States government 6017
or any of its agencies at the time of completion of the structures 6018
or improvements; building and construction materials sold to 6019
construction contractors for incorporation into a horticulture 6020
structure or livestock structure for a person engaged in the 6021
business of horticulture or producing livestock; building 6022
materials and services sold to a construction contractor for 6023
incorporation into a house of public worship or religious 6024
education, or a building used exclusively for charitable purposes 6025
under a construction contract with an organization whose purpose 6026
is as described in division (B)(12) of this section; building 6027
materials and services sold to a construction contractor for 6028
incorporation into a building under a construction contract with 6029
an organization exempt from taxation under section 501(c)(3) of 6030
the Internal Revenue Code of 1986 when the building is to be used 6031
exclusively for the organization's exempt purposes; building and 6032
construction materials sold for incorporation into the original 6033
construction of a sports facility under section 307.696 of the 6034
Revised Code; building and construction materials and services 6035
sold to a construction contractor for incorporation into real 6036
property outside this state if such materials and services, when 6037
sold to a construction contractor in the state in which the real 6038
property is located for incorporation into real property in that 6039
state, would be exempt from a tax on sales levied by that state; 6040
and, until one calendar year after the construction of a 6041
convention center that qualifies for property tax exemption under 6042
section 5709.084 of the Revised Code is completed, building and 6043
construction materials and services sold to a construction 6044
contractor for incorporation into the real property comprising 6045
that convention center;6046

       (14) Sales of ships or vessels or rail rolling stock used or 6047
to be used principally in interstate or foreign commerce, and 6048
repairs, alterations, fuel, and lubricants for such ships or 6049
vessels or rail rolling stock;6050

       (15) Sales to persons primarily engaged in any of the 6051
activities mentioned in division (B)(42)(a), (g), or (h) of this 6052
section, to persons engaged in making retail sales, or to persons 6053
who purchase for sale from a manufacturer tangible personal 6054
property that was produced by the manufacturer in accordance with 6055
specific designs provided by the purchaser, of packages, including 6056
material, labels, and parts for packages, and of machinery, 6057
equipment, and material for use primarily in packaging tangible 6058
personal property produced for sale, including any machinery, 6059
equipment, and supplies used to make labels or packages, to 6060
prepare packages or products for labeling, or to label packages or 6061
products, by or on the order of the person doing the packaging, or 6062
sold at retail. "Packages" includes bags, baskets, cartons, 6063
crates, boxes, cans, bottles, bindings, wrappings, and other 6064
similar devices and containers, but does not include motor 6065
vehicles or bulk tanks, trailers, or similar devices attached to 6066
motor vehicles. "Packaging" means placing in a package. Division 6067
(B)(15) of this section does not apply to persons engaged in 6068
highway transportation for hire.6069

       (16) Sales of food to persons using supplemental nutrition 6070
assistance program benefits to purchase the food. As used in this 6071
division, "food" has the same meaning as in 7 U.S.C. 2012 and 6072
federal regulations adopted pursuant to the Food and Nutrition Act 6073
of 2008.6074

       (17) Sales to persons engaged in farming, agriculture, 6075
horticulture, or floriculture, of tangible personal property for 6076
use or consumption primarily in the production by farming, 6077
agriculture, horticulture, or floriculture of other tangible 6078
personal property for use or consumption primarily in the 6079
production of tangible personal property for sale by farming, 6080
agriculture, horticulture, or floriculture; or material and parts 6081
for incorporation into any such tangible personal property for use 6082
or consumption in production; and of tangible personal property 6083
for such use or consumption in the conditioning or holding of 6084
products produced by and for such use, consumption, or sale by 6085
persons engaged in farming, agriculture, horticulture, or 6086
floriculture, except where such property is incorporated into real 6087
property;6088

       (18) Sales of drugs for a human being that may be dispensed 6089
only pursuant to a prescription; insulin as recognized in the 6090
official United States pharmacopoeia; urine and blood testing 6091
materials when used by diabetics or persons with hypoglycemia to 6092
test for glucose or acetone; hypodermic syringes and needles when 6093
used by diabetics for insulin injections; epoetin alfa when 6094
purchased for use in the treatment of persons with medical 6095
disease; hospital beds when purchased by hospitals, nursing homes, 6096
or other medical facilities; and medical oxygen and medical 6097
oxygen-dispensing equipment when purchased by hospitals, nursing 6098
homes, or other medical facilities;6099

       (19) Sales of prosthetic devices, durable medical equipment 6100
for home use, or mobility enhancing equipment, when made pursuant 6101
to a prescription and when such devices or equipment are for use 6102
by a human being.6103

       (20) Sales of emergency and fire protection vehicles and 6104
equipment to nonprofit organizations for use solely in providing 6105
fire protection and emergency services, including trauma care and 6106
emergency medical services, for political subdivisions of the 6107
state;6108

       (21) Sales of tangible personal property manufactured in this 6109
state, if sold by the manufacturer in this state to a retailer for 6110
use in the retail business of the retailer outside of this state 6111
and if possession is taken from the manufacturer by the purchaser 6112
within this state for the sole purpose of immediately removing the 6113
same from this state in a vehicle owned by the purchaser;6114

       (22) Sales of services provided by the state or any of its 6115
political subdivisions, agencies, instrumentalities, institutions, 6116
or authorities, or by governmental entities of the state or any of 6117
its political subdivisions, agencies, instrumentalities, 6118
institutions, or authorities;6119

       (23) Sales of motor vehicles to nonresidents of this state 6120
under the circumstances described in division (B) of section 6121
5739.029 of the Revised Code;6122

       (24) Sales to persons engaged in the preparation of eggs for 6123
sale of tangible personal property used or consumed directly in 6124
such preparation, including such tangible personal property used 6125
for cleaning, sanitizing, preserving, grading, sorting, and 6126
classifying by size; packages, including material and parts for 6127
packages, and machinery, equipment, and material for use in 6128
packaging eggs for sale; and handling and transportation equipment 6129
and parts therefor, except motor vehicles licensed to operate on 6130
public highways, used in intraplant or interplant transfers or 6131
shipment of eggs in the process of preparation for sale, when the 6132
plant or plants within or between which such transfers or 6133
shipments occur are operated by the same person. "Packages" 6134
includes containers, cases, baskets, flats, fillers, filler flats, 6135
cartons, closure materials, labels, and labeling materials, and 6136
"packaging" means placing therein.6137

       (25)(a) Sales of water to a consumer for residential use, 6138
except the sale of bottled water, distilled water, mineral water, 6139
carbonated water, or ice;6140

       (b) Sales of water by a nonprofit corporation engaged 6141
exclusively in the treatment, distribution, and sale of water to 6142
consumers, if such water is delivered to consumers through pipes 6143
or tubing.6144

       (26) Fees charged for inspection or reinspection of motor 6145
vehicles under section 3704.14 of the Revised Code;6146

       (27) Sales to persons licensed to conduct a food service 6147
operation pursuant to section 3717.43 of the Revised Code, of 6148
tangible personal property primarily used directly for the 6149
following:6150

       (a) To prepare food for human consumption for sale;6151

       (b) To preserve food that has been or will be prepared for 6152
human consumption for sale by the food service operator, not 6153
including tangible personal property used to display food for 6154
selection by the consumer;6155

       (c) To clean tangible personal property used to prepare or 6156
serve food for human consumption for sale.6157

       (28) Sales of animals by nonprofit animal adoption services 6158
or county humane societies;6159

       (29) Sales of services to a corporation described in division 6160
(A) of section 5709.72 of the Revised Code, and sales of tangible 6161
personal property that qualifies for exemption from taxation under 6162
section 5709.72 of the Revised Code;6163

       (30) Sales and installation of agricultural land tile, as 6164
defined in division (B)(5)(a) of section 5739.01 of the Revised 6165
Code;6166

       (31) Sales and erection or installation of portable grain 6167
bins, as defined in division (B)(5)(b) of section 5739.01 of the 6168
Revised Code;6169

       (32) The sale, lease, repair, and maintenance of, parts for, 6170
or items attached to or incorporated in, motor vehicles that are 6171
primarily used for transporting tangible personal property 6172
belonging to others by a person engaged in highway transportation 6173
for hire, except for packages and packaging used for the 6174
transportation of tangible personal property;6175

       (33) Sales to the state headquarters of any veterans' 6176
organization in this state that is either incorporated and issued 6177
a charter by the congress of the United States or is recognized by 6178
the United States veterans administration, for use by the 6179
headquarters;6180

       (34) Sales to a telecommunications service vendor, mobile 6181
telecommunications service vendor, or satellite broadcasting 6182
service vendor of tangible personal property and services used 6183
directly and primarily in transmitting, receiving, switching, or 6184
recording any interactive, one- or two-way electromagnetic 6185
communications, including voice, image, data, and information, 6186
through the use of any medium, including, but not limited to, 6187
poles, wires, cables, switching equipment, computers, and record 6188
storage devices and media, and component parts for the tangible 6189
personal property. The exemption provided in this division shall 6190
be in lieu of all other exemptions under division (B)(42)(a) or 6191
(n) of this section to which the vendor may otherwise be entitled, 6192
based upon the use of the thing purchased in providing the 6193
telecommunications, mobile telecommunications, or satellite 6194
broadcasting service.6195

       (35)(a) Sales where the purpose of the consumer is to use or 6196
consume the things transferred in making retail sales and 6197
consisting of newspaper inserts, catalogues, coupons, flyers, gift 6198
certificates, or other advertising material that prices and 6199
describes tangible personal property offered for retail sale.6200

       (b) Sales to direct marketing vendors of preliminary 6201
materials such as photographs, artwork, and typesetting that will 6202
be used in printing advertising material; of printed matter that 6203
offers free merchandise or chances to win sweepstake prizes and 6204
that is mailed to potential customers with advertising material 6205
described in division (B)(35)(a) of this section; and of equipment 6206
such as telephones, computers, facsimile machines, and similar 6207
tangible personal property primarily used to accept orders for 6208
direct marketing retail sales.6209

       (c) Sales of automatic food vending machines that preserve 6210
food with a shelf life of forty-five days or less by refrigeration 6211
and dispense it to the consumer.6212

       For purposes of division (B)(35) of this section, "direct 6213
marketing" means the method of selling where consumers order 6214
tangible personal property by United States mail, delivery 6215
service, or telecommunication and the vendor delivers or ships the 6216
tangible personal property sold to the consumer from a warehouse, 6217
catalogue distribution center, or similar fulfillment facility by 6218
means of the United States mail, delivery service, or common 6219
carrier.6220

       (36) Sales to a person engaged in the business of 6221
horticulture or producing livestock of materials to be 6222
incorporated into a horticulture structure or livestock structure;6223

       (37) Sales of personal computers, computer monitors, computer 6224
keyboards, modems, and other peripheral computer equipment to an 6225
individual who is licensed or certified to teach in an elementary 6226
or a secondary school in this state for use by that individual in 6227
preparation for teaching elementary or secondary school students;6228

       (38) Sales to a professional racing team of any of the 6229
following:6230

       (a) Motor racing vehicles;6231

       (b) Repair services for motor racing vehicles;6232

       (c) Items of property that are attached to or incorporated in 6233
motor racing vehicles, including engines, chassis, and all other 6234
components of the vehicles, and all spare, replacement, and 6235
rebuilt parts or components of the vehicles; except not including 6236
tires, consumable fluids, paint, and accessories consisting of 6237
instrumentation sensors and related items added to the vehicle to 6238
collect and transmit data by means of telemetry and other forms of 6239
communication.6240

       (39) Sales of used manufactured homes and used mobile homes, 6241
as defined in section 5739.0210 of the Revised Code, made on or 6242
after January 1, 2000;6243

       (40) Sales of tangible personal property and services to a 6244
provider of electricity used or consumed directly and primarily in 6245
generating, transmitting, or distributing electricity for use by 6246
others, including property that is or is to be incorporated into 6247
and will become a part of the consumer's production, transmission, 6248
or distribution system and that retains its classification as 6249
tangible personal property after incorporation; fuel or power used 6250
in the production, transmission, or distribution of electricity; 6251
energy conversion equipment as defined in section 5727.01 of the 6252
Revised Code; and tangible personal property and services used in 6253
the repair and maintenance of the production, transmission, or 6254
distribution system, including only those motor vehicles as are 6255
specially designed and equipped for such use. The exemption 6256
provided in this division shall be in lieu of all other exemptions 6257
in division (B)(42)(a) or (n) of this section to which a provider 6258
of electricity may otherwise be entitled based on the use of the 6259
tangible personal property or service purchased in generating, 6260
transmitting, or distributing electricity.6261

       (41) Sales to a person providing services under division 6262
(B)(3)(r) of section 5739.01 of the Revised Code of tangible 6263
personal property and services used directly and primarily in 6264
providing taxable services under that section.6265

       (42) Sales where the purpose of the purchaser is to do any of 6266
the following:6267

       (a) To incorporate the thing transferred as a material or a 6268
part into tangible personal property to be produced for sale by 6269
manufacturing, assembling, processing, or refining; or to use or 6270
consume the thing transferred directly in producing tangible 6271
personal property for sale by mining, including, without 6272
limitation, the extraction from the earth of all substances that 6273
are classed geologically as minerals, production of crude oil and 6274
natural gas, or directly in the rendition of a public utility 6275
service, except that the sales tax levied by this section shall be 6276
collected upon all meals, drinks, and food for human consumption 6277
sold when transporting persons. Persons engaged in rendering 6278
services in the exploration for, and production of, crude oil and 6279
natural gas for others are deemed engaged directly in the 6280
exploration for, and production of, crude oil and natural gas. 6281
This paragraph does not exempt from "retail sale" or "sales at 6282
retail" the sale of tangible personal property that is to be 6283
incorporated into a structure or improvement to real property.6284

       (b) To hold the thing transferred as security for the 6285
performance of an obligation of the vendor;6286

       (c) To resell, hold, use, or consume the thing transferred as 6287
evidence of a contract of insurance;6288

       (d) To use or consume the thing directly in commercial 6289
fishing;6290

       (e) To incorporate the thing transferred as a material or a 6291
part into, or to use or consume the thing transferred directly in 6292
the production of, magazines distributed as controlled circulation 6293
publications;6294

       (f) To use or consume the thing transferred in the production 6295
and preparation in suitable condition for market and sale of 6296
printed, imprinted, overprinted, lithographic, multilithic, 6297
blueprinted, photostatic, or other productions or reproductions of 6298
written or graphic matter;6299

       (g) To use the thing transferred, as described in section 6300
5739.011 of the Revised Code, primarily in a manufacturing 6301
operation to produce tangible personal property for sale;6302

       (h) To use the benefit of a warranty, maintenance or service 6303
contract, or similar agreement, as described in division (B)(7) of 6304
section 5739.01 of the Revised Code, to repair or maintain 6305
tangible personal property, if all of the property that is the 6306
subject of the warranty, contract, or agreement would not be 6307
subject to the tax imposed by this section;6308

       (i) To use the thing transferred as qualified research and 6309
development equipment;6310

       (j) To use or consume the thing transferred primarily in 6311
storing, transporting, mailing, or otherwise handling purchased 6312
sales inventory in a warehouse, distribution center, or similar 6313
facility when the inventory is primarily distributed outside this 6314
state to retail stores of the person who owns or controls the 6315
warehouse, distribution center, or similar facility, to retail 6316
stores of an affiliated group of which that person is a member, or 6317
by means of direct marketing. This division does not apply to 6318
motor vehicles registered for operation on the public highways. As 6319
used in this division, "affiliated group" has the same meaning as 6320
in division (B)(3)(e) of section 5739.01 of the Revised Code and 6321
"direct marketing" has the same meaning as in division (B)(35) of 6322
this section.6323

       (k) To use or consume the thing transferred to fulfill a 6324
contractual obligation incurred by a warrantor pursuant to a 6325
warranty provided as a part of the price of the tangible personal 6326
property sold or by a vendor of a warranty, maintenance or service 6327
contract, or similar agreement the provision of which is defined 6328
as a sale under division (B)(7) of section 5739.01 of the Revised 6329
Code;6330

       (l) To use or consume the thing transferred in the production 6331
of a newspaper for distribution to the public;6332

       (m) To use tangible personal property to perform a service 6333
listed in division (B)(3) of section 5739.01 of the Revised Code, 6334
if the property is or is to be permanently transferred to the 6335
consumer of the service as an integral part of the performance of 6336
the service;6337

       (n) To use or consume the thing transferred primarily in 6338
producing tangible personal property for sale by farming, 6339
agriculture, horticulture, or floriculture. Persons engaged in 6340
rendering farming, agriculture, horticulture, or floriculture 6341
services for others are deemed engaged primarily in farming, 6342
agriculture, horticulture, or floriculture. This paragraph does 6343
not exempt from "retail sale" or "sales at retail" the sale of 6344
tangible personal property that is to be incorporated into a 6345
structure or improvement to real property.6346

       (o) To use or consume the thing transferred in acquiring, 6347
formatting, editing, storing, and disseminating data or 6348
information by electronic publishing.6349

       As used in division (B)(42) of this section, "thing" includes 6350
all transactions included in divisions (B)(3)(a), (b), and (e) of 6351
section 5739.01 of the Revised Code.6352

       (43) Sales conducted through a coin operated device that 6353
activates vacuum equipment or equipment that dispenses water, 6354
whether or not in combination with soap or other cleaning agents 6355
or wax, to the consumer for the consumer's use on the premises in 6356
washing, cleaning, or waxing a motor vehicle, provided no other 6357
personal property or personal service is provided as part of the 6358
transaction.6359

       (44) Sales of replacement and modification parts for engines, 6360
airframes, instruments, and interiors in, and paint for, aircraft 6361
used primarily in a fractional aircraft ownership program, and 6362
sales of services for the repair, modification, and maintenance of 6363
such aircraft, and machinery, equipment, and supplies primarily 6364
used to provide those services.6365

       (45) Sales of telecommunications service that is used 6366
directly and primarily to perform the functions of a call center. 6367
As used in this division, "call center" means any physical 6368
location where telephone calls are placed or received in high 6369
volume for the purpose of making sales, marketing, customer 6370
service, technical support, or other specialized business 6371
activity, and that employs at least fifty individuals that engage 6372
in call center activities on a full-time basis, or sufficient 6373
individuals to fill fifty full-time equivalent positions.6374

        (46) Sales by a telecommunications service vendor of 900 6375
service to a subscriber. This division does not apply to 6376
information services, as defined in division (FF) of section 6377
5739.01 of the Revised Code.6378

        (47) Sales of value-added non-voice data service. This 6379
division does not apply to any similar service that is not 6380
otherwise a telecommunications service.6381

       (48)(a) Sales of machinery, equipment, and software to a 6382
qualified direct selling entity for use in a warehouse or 6383
distribution center primarily for storing, transporting, or 6384
otherwise handling inventory that is held for sale to independent 6385
salespersons who operate as direct sellers and that is held 6386
primarily for distribution outside this state;6387

       (b) As used in division (B)(48)(a) of this section:6388

       (i) "Direct seller" means a person selling consumer products 6389
to individuals for personal or household use and not from a fixed 6390
retail location, including selling such product at in-home product 6391
demonstrations, parties, and other one-on-one selling.6392

       (ii) "Qualified direct selling entity" means an entity 6393
selling to direct sellers at the time the entity enters into a tax 6394
credit agreement with the tax credit authority pursuant to section 6395
122.17 of the Revised Code, provided that the agreement was 6396
entered into on or after January 1, 2007. Neither contingencies 6397
relevant to the granting of, nor later developments with respect 6398
to, the tax credit shall impair the status of the qualified direct 6399
selling entity under division (B)(48) of this section after 6400
execution of the tax credit agreement by the tax credit authority.6401

       (c) Division (B)(48) of this section is limited to machinery, 6402
equipment, and software first stored, used, or consumed in this 6403
state within the period commencing June 24, 2008, and ending on 6404
the date that is five years after that date.6405

       (49) Sales of materials, parts, equipment, or engines used in 6406
the repair or maintenance of aircraft or avionics systems of such 6407
aircraft, and sales of repair, remodeling, replacement, or 6408
maintenance services in this state performed on aircraft or on an 6409
aircraft's avionics, engine, or component materials or parts. As 6410
used in division (B)(49) of this section, "aircraft" means 6411
aircraft of more than six thousand pounds maximum certified 6412
takeoff weight or used exclusively in general aviation.6413

       (50) Sales of full flight simulators that are used for pilot 6414
or flight-crew training, sales of repair or replacement parts or 6415
components, and sales of repair or maintenance services for such 6416
full flight simulators. "Full flight simulator" means a replica of 6417
a specific type, or make, model, and series of aircraft cockpit. 6418
It includes the assemblage of equipment and computer programs 6419
necessary to represent aircraft operations in ground and flight 6420
conditions, a visual system providing an out-of-the-cockpit view, 6421
and a system that provides cues at least equivalent to those of a 6422
three-degree-of-freedom motion system, and has the full range of 6423
capabilities of the systems installed in the device as described 6424
in appendices A and B of part 60 of chapter 1 of title 14 of the 6425
Code of Federal Regulations.6426

       (51) Any transfer or lease of tangible personal property 6427
between the state and a successful proposer in accordance with 6428
sections 126.60 to 126.605 of the Revised Code, provided the 6429
property is part of a project as defined in section 126.60 of the 6430
Revised Code and the state retains ownership of the project or 6431
part thereof that is being transferred or leased, between the 6432
state and JobsOhio in accordance with section 4313.02 of the 6433
Revised Code.6434

       (C) For the purpose of the proper administration of this 6435
chapter, and to prevent the evasion of the tax, it is presumed 6436
that all sales made in this state are subject to the tax until the 6437
contrary is established.6438

       (D) The levy of this tax on retail sales of recreation and 6439
sports club service shall not prevent a municipal corporation from 6440
levying any tax on recreation and sports club dues or on any 6441
income generated by recreation and sports club dues.6442

       (E) The tax collected by the vendor from the consumer under 6443
this chapter is not part of the price, but is a tax collection for 6444
the benefit of the state, and of counties levying an additional 6445
sales tax pursuant to section 5739.021 or 5739.026 of the Revised 6446
Code and of transit authorities levying an additional sales tax 6447
pursuant to section 5739.023 of the Revised Code. Except for the 6448
discount authorized under section 5739.12 of the Revised Code and 6449
the effects of any rounding pursuant to section 5703.055 of the 6450
Revised Code, no person other than the state or such a county or 6451
transit authority shall derive any benefit from the collection or 6452
payment of the tax levied by this section or section 5739.021, 6453
5739.023, or 5739.026 of the Revised Code.6454

       Sec. 5739.021.  (A) For the purpose of providing additional 6455
general revenues for the county or supporting criminal and 6456
administrative justice services in the county, or both, and to pay 6457
the expenses of administering such levy, any county may levy a tax 6458
at the rate of not more than one per cent at any multiple of 6459
one-fourth of one per cent upon every retail sale made in the 6460
county, except sales of watercraft and outboard motors required to 6461
be titled pursuant to Chapter 1548. of the Revised Code and sales 6462
of motor vehicles, and may increase the rate of an existing tax to 6463
not more than one per cent at any multiple of one-fourth of one 6464
per cent.6465

       The tax shall be levied and the rate increased pursuant to a 6466
resolution of the board of county commissioners. The resolution 6467
shall state the purpose for which the tax is to be levied and the 6468
number of years for which the tax is to be levied, or that it is 6469
for a continuing period of time. If the tax is to be levied for 6470
the purpose of providing additional general revenues and for the 6471
purpose of supporting criminal and administrative justice 6472
services, the resolution shall state the rate or amount of the tax 6473
to be apportioned to each such purpose. The rate or amount may be 6474
different for each year the tax is to be levied, but the rates or 6475
amounts actually apportioned each year shall not be different from 6476
that stated in the resolution for that year. If the resolution is 6477
adopted as an emergency measure necessary for the immediate 6478
preservation of the public peace, health, or safety, it must 6479
receive an affirmative vote of all of the members of the board of 6480
county commissioners and shall state the reasons for such 6481
necessity. The board shall deliver a certified copy of the 6482
resolution to the tax commissioner, not later than the sixty-fifth 6483
day prior to the date on which the tax is to become effective, 6484
which shall be the first day of the calendar quarter.6485

       Prior to the adoption of any resolution under this section, 6486
the board of county commissioners shall conduct two public 6487
hearings on the resolution, the second hearing to be not less than 6488
three nor more than ten days after the first. Notice of the date, 6489
time, and place of the hearings shall be given by publication in a 6490
newspaper of general circulation in the county, or as provided in 6491
section 7.16 of the Revised Code, once a week on the same day of 6492
the week for two consecutive weeks, the second publication being 6493
not less than ten nor more than thirty days prior to the first 6494
hearing.6495

       Except as provided in division (B)(3) of this section, the 6496
resolution shall be subject to a referendum as provided in 6497
sections 305.31 to 305.41 of the Revised Code.6498

       If a petition for a referendum is filed, the county auditor 6499
with whom the petition was filed shall, within five days, notify 6500
the board of county commissioners and the tax commissioner of the 6501
filing of the petition by certified mail. If the board of 6502
elections with which the petition was filed declares the petition 6503
invalid, the board of elections, within five days, shall notify 6504
the board of county commissioners and the tax commissioner of that 6505
declaration by certified mail. If the petition is declared to be 6506
invalid, the effective date of the tax or increased rate of tax 6507
levied by this section shall be the first day of a calendar 6508
quarter following the expiration of sixty-five days from the date 6509
the commissioner receives notice from the board of elections that 6510
the petition is invalid.6511

       (B)(1) A resolution that is not adopted as an emergency 6512
measure may direct the board of elections to submit the question 6513
of levying the tax or increasing the rate of tax to the electors 6514
of the county at a special election held on the date specified by 6515
the board of county commissioners in the resolution, provided that 6516
the election occurs not less than ninety days after a certified 6517
copy of such resolution is transmitted to the board of elections 6518
and the election is not held in February or August of any year. 6519
Upon transmission of the resolution to the board of elections, the 6520
board of county commissioners shall notify the tax commissioner in 6521
writing of the levy question to be submitted to the electors. No 6522
resolution adopted under this division shall go into effect unless 6523
approved by a majority of those voting upon it, and, except as 6524
provided in division (B)(3) of this section, shall become 6525
effective on the first day of a calendar quarter following the 6526
expiration of sixty-five days from the date the tax commissioner 6527
receives notice from the board of elections of the affirmative 6528
vote.6529

       (2) A resolution that is adopted as an emergency measure 6530
shall go into effect as provided in division (A) of this section, 6531
but may direct the board of elections to submit the question of 6532
repealing the tax or increase in the rate of the tax to the 6533
electors of the county at the next general election in the county 6534
occurring not less than ninety days after a certified copy of the 6535
resolution is transmitted to the board of elections. Upon 6536
transmission of the resolution to the board of elections, the 6537
board of county commissioners shall notify the tax commissioner in 6538
writing of the levy question to be submitted to the electors. The 6539
ballot question shall be the same as that prescribed in section 6540
5739.022 of the Revised Code. The board of elections shall notify 6541
the board of county commissioners and the tax commissioner of the 6542
result of the election immediately after the result has been 6543
declared. If a majority of the qualified electors voting on the 6544
question of repealing the tax or increase in the rate of the tax 6545
vote for repeal of the tax or repeal of the increase, the board of 6546
county commissioners, on the first day of a calendar quarter 6547
following the expiration of sixty-five days after the date the 6548
board and tax commissioner receive notice of the result of the 6549
election, shall, in the case of a repeal of the tax, cease to levy 6550
the tax, or, in the case of a repeal of an increase in the rate of 6551
the tax, cease to levy the increased rate and levy the tax at the 6552
rate at which it was imposed immediately prior to the increase in 6553
rate.6554

       (3) If a vendor that is registered with the central 6555
electronic registration system provided for in section 5740.05 of 6556
the Revised Code makes a sale in this state by printed catalog and 6557
the consumer computed the tax on the sale based on local rates 6558
published in the catalog, any tax levied or repealed or rate 6559
changed under this section shall not apply to such a sale until 6560
the first day of a calendar quarter following the expiration of 6561
one hundred twenty days from the date of notice by the tax 6562
commissioner pursuant to division (H) of this section.6563

       (C) If a resolution is rejected at a referendum or if a 6564
resolution adopted after January 1, 1982, as an emergency measure 6565
is repealed by the electors pursuant to division (B)(2) of this 6566
section or section 5739.022 of the Revised Code, then for one year 6567
after the date of the election at which the resolution was 6568
rejected or repealed the board of county commissioners may not 6569
adopt any resolution authorized by this section as an emergency 6570
measure.6571

       (D) The board of county commissioners, at any time while a 6572
tax levied under this section is in effect, may by resolution 6573
reduce the rate at which the tax is levied to a lower rate 6574
authorized by this section. Any reduction in the rate at which the 6575
tax is levied shall be made effective on the first day of a 6576
calendar quarter next following the sixty-fifth day after a 6577
certified copy of the resolution is delivered to the tax 6578
commissioner.6579

       (E) The tax on every retail sale subject to a tax levied 6580
pursuant to this section shall be in addition to the tax levied by 6581
section 5739.02 of the Revised Code and any tax levied pursuant to 6582
section 5739.023 or 5739.026 of the Revised Code.6583

       A county that levies a tax pursuant to this section shall 6584
levy a tax at the same rate pursuant to section 5741.021 of the 6585
Revised Code.6586

       The additional tax levied by the county shall be collected 6587
pursuant to section 5739.025 of the Revised Code. If the 6588
additional tax or some portion thereof is levied for the purpose 6589
of criminal and administrative justice services, the revenue from 6590
the tax, or the amount or rate apportioned to that purpose, shall 6591
be credited to a special fund created in the county treasury for 6592
receipt of that revenue.6593

       Any tax levied pursuant to this section is subject to the 6594
exemptions provided in section 5739.02 of the Revised Code and in 6595
addition shall not be applicable to sales not within the taxing 6596
power of a county under the Constitution of the United States or 6597
the Ohio Constitution.6598

       (F) For purposes of this section, a copy of a resolution is 6599
"certified" when it contains a written statement attesting that 6600
the copy is a true and exact reproduction of the original 6601
resolution.6602

       (G) If a board of commissioners intends to adopt a resolution 6603
to levy a tax in whole or in part for the purpose of criminal and 6604
administrative justice services, the board shall prepare and make 6605
available at the first public hearing at which the resolution is 6606
considered a statement containing the following information:6607

       (1) For each of the two preceding fiscal years, the amount of 6608
expenditures made by the county from the county general fund for 6609
the purpose of criminal and administrative justice services;6610

       (2) For the fiscal year in which the resolution is adopted, 6611
the board's estimate of the amount of expenditures to be made by 6612
the county from the county general fund for the purpose of 6613
criminal and administrative justice services;6614

       (3) For each of the two fiscal years after the fiscal year in 6615
which the resolution is adopted, the board's preliminary plan for 6616
expenditures to be made from the county general fund for the 6617
purpose of criminal and administrative justice services, both 6618
under the assumption that the tax will be imposed for that purpose 6619
and under the assumption that the tax would not be imposed for 6620
that purpose, and for expenditures to be made from the special 6621
fund created under division (E) of this section under the 6622
assumption that the tax will be imposed for that purpose.6623

       The board shall prepare the statement and the preliminary 6624
plan using the best information available to the board at the time 6625
the statement is prepared. Neither the statement nor the 6626
preliminary plan shall be used as a basis to challenge the 6627
validity of the tax in any court of competent jurisdiction, nor 6628
shall the statement or preliminary plan limit the authority of the 6629
board to appropriate, pursuant to section 5705.38 of the Revised 6630
Code, an amount different from that specified in the preliminary 6631
plan.6632

       (H) Upon receipt from a board of county commissioners of a 6633
certified copy of a resolution required by division (A) or (D) of 6634
this section, or from the board of elections of a notice of the 6635
results of an election required by division (A) or (B)(1) or (2) 6636
of this section, the tax commissioner shall provide notice of a 6637
tax rate change in a manner that is reasonably accessible to all 6638
affected vendors. The commissioner shall provide this notice at 6639
least sixty days prior to the effective date of the rate change. 6640
The commissioner, by rule, may establish the method by which 6641
notice will be provided.6642

       (I) As used in this section, "criminal and administrative 6643
justice services" means the exercise by the county sheriff of all 6644
powers and duties vested in that office by law; the exercise by 6645
the county prosecuting attorney of all powers and duties vested in 6646
that office by law; the exercise by any court in the county of all 6647
powers and duties vested in that court; the exercise by the clerk 6648
of the court of common pleas, any clerk of a municipal court 6649
having jurisdiction throughout the county, or the clerk of any 6650
county court of all powers and duties vested in the clerk by law 6651
except, in the case of the clerk of the court of common pleas, the 6652
titling of motor vehicles or watercraft pursuant to Chapter 1548. 6653
or 4505. of the Revised Code; the exercise by the county coroner 6654
of all powers and duties vested in that office by law; making 6655
payments to any other public agency or a private, nonprofit 6656
agency, the purposes of which in the county include the diversion, 6657
adjudication, detention, or rehabilitation of criminals or 6658
juvenile offenders; the operation and maintenance of any detention 6659
facility, as defined in section 2921.01 of the Revised Code; and 6660
the construction, acquisition, equipping, or repair of such a 6661
detention facility, including the payment of any debt charges 6662
incurred in the issuance of securities pursuant to Chapter 133. of 6663
the Revised Code for the purpose of constructing, acquiring, 6664
equipping, or repairing such a facility.6665

       Sec. 5739.023.  (A)(1) For the purpose of providing 6666
additional general revenues for a transit authority and paying the 6667
expenses of administering such levy, any transit authority as 6668
defined in division (U) of section 5739.01 of the Revised Code may 6669
levy a tax upon every retail sale made in the territory of the 6670
transit authority, except sales of watercraft and outboard motors 6671
required to be titled pursuant to Chapter 1548. of the Revised 6672
Code and sales of motor vehicles, at a rate of not more than one 6673
and one-half per cent at any multiple of one-fourth of one per 6674
cent and may increase the existing rate of tax to not more than 6675
one and one-half per cent at any multiple of one-fourth of one per 6676
cent. The tax shall be levied and the rate increased pursuant to a 6677
resolution of the legislative authority of the transit authority 6678
and a certified copy of the resolution shall be delivered by the 6679
fiscal officer to the board of elections as provided in section 6680
3505.071 of the Revised Code and to the tax commissioner. The 6681
resolution shall specify the number of years for which the tax is 6682
to be in effect or that the tax is for a continuing period of 6683
time, and the date of the election on the question of the tax 6684
pursuant to section 306.70 of the Revised Code. The board of 6685
elections shall certify the results of the election to the transit 6686
authority and tax commissioner.6687

       (2) Except as provided in division (C) of this section, the 6688
tax levied by the resolution shall become effective on the first 6689
day of a calendar quarter next following the sixty-fifth day 6690
following the date the tax commissioner receives from the board of 6691
elections the certification of the results of the election on the 6692
question of the tax.6693

       (B) The legislative authority may, at any time while the tax 6694
is in effect, by resolution fix the rate of the tax at any rate 6695
authorized by this section and not in excess of that approved by 6696
the voters pursuant to section 306.70 of the Revised Code. Except 6697
as provided in division (C) of this section, any change in the 6698
rate of the tax shall be made effective on the first day of a 6699
calendar quarter next following the sixty-fifth day following the 6700
date the tax commissioner receives the certification of the 6701
resolution; provided, that in any case where bonds, or notes in 6702
anticipation of bonds, of a regional transit authority have been 6703
issued under section 306.40 of the Revised Code without a vote of 6704
the electors while the tax proposed to be reduced was in effect, 6705
the board of trustees of the regional transit authority shall 6706
continue to levy and collect under authority of the original 6707
election authorizing the tax a rate of tax that the board of 6708
trustees reasonably estimates will produce an amount in that year 6709
equal to the amount of principal of and interest on those bonds as 6710
is payable in that year.6711

       (C) Upon receipt from the board of elections of the 6712
certification of the results of the election required by division 6713
(A) of this section, or from the legislative authority of the 6714
certification of a resolution under division (B) of this section, 6715
the tax commissioner shall provide notice of a tax rate change in 6716
a manner that is reasonably accessible to all affected vendors. 6717
The commissioner shall provide this notice at least sixty days 6718
prior to the effective date of the rate change. The commissioner, 6719
by rule, may establish the method by which notice will be 6720
provided.6721

       (D) If a vendor that is registered with the central 6722
electronic registration system provided for in section 5740.05 of 6723
the Revised Code makes a sale in this state by printed catalog and 6724
the consumer computed the tax on the sale based on local rates 6725
published in the catalog, any tax levied or rate changed under 6726
this section shall not apply to such a sale until the first day of 6727
a calendar quarter following the expiration of one hundred twenty 6728
days from the date of notice by the tax commissioner pursuant to 6729
division (C) of this section.6730

       (E) The tax on every retail sale subject to a tax levied 6731
pursuant to this section is in addition to the tax levied by 6732
section 5739.02 of the Revised Code and any tax levied pursuant to 6733
section 5739.021 or 5739.026 of the Revised Code.6734

       (F) The additional tax levied by the transit authority shall 6735
be collected pursuant to section 5739.025 of the Revised Code.6736

       (G) Any tax levied pursuant to this section is subject to the 6737
exemptions provided in section 5739.02 of the Revised Code and in 6738
addition shall not be applicable to sales not within the taxing 6739
power of a transit authority under the constitution of the United 6740
States or the constitution of this state.6741

       (H) The rate of a tax levied under this section is subject to 6742
reduction under section 5739.028 of the Revised Code, if a ballot 6743
question is approved by voters pursuant to that section.6744

       Sec. 5739.026.  (A) A board of county commissioners may levy 6745
a tax of one-fourth or one-half of one per cent on every retail 6746
sale in the county, except sales of watercraft and outboard motors 6747
required to be titled pursuant to Chapter 1548. of the Revised 6748
Code and sales of motor vehicles, and may increase an existing 6749
rate of one-fourth of one per cent to one-half of one per cent, to 6750
pay the expenses of administering the tax and, except as provided 6751
in division (A)(6) of this section, for any one or more of the 6752
following purposes provided that the aggregate levy for all such 6753
purposes does not exceed one-half of one per cent:6754

       (1) To provide additional revenues for the payment of bonds 6755
or notes issued in anticipation of bonds issued by a convention 6756
facilities authority established by the board of county 6757
commissioners under Chapter 351. of the Revised Code and to 6758
provide additional operating revenues for the convention 6759
facilities authority;6760

       (2) To provide additional revenues for a transit authority 6761
operating in the county;6762

       (3) To provide additional revenue for the county's general 6763
fund;6764

       (4) To provide additional revenue for permanent improvements 6765
within the county to be distributed by the community improvements 6766
board in accordance with section 307.283 and to pay principal, 6767
interest, and premium on bonds issued under section 307.284 of the 6768
Revised Code;6769

       (5) To provide additional revenue for the acquisition, 6770
construction, equipping, or repair of any specific permanent 6771
improvement or any class or group of permanent improvements, which 6772
improvement or class or group of improvements shall be enumerated 6773
in the resolution required by division (D) of this section, and to 6774
pay principal, interest, premium, and other costs associated with 6775
the issuance of bonds or notes in anticipation of bonds issued 6776
pursuant to Chapter 133. of the Revised Code for the acquisition, 6777
construction, equipping, or repair of the specific permanent 6778
improvement or class or group of permanent improvements;6779

       (6) To provide revenue for the implementation and operation 6780
of a 9-1-1 system in the county. If the tax is levied or the rate 6781
increased exclusively for such purpose, the tax shall not be 6782
levied or the rate increased for more than five years. At the end 6783
of the last year the tax is levied or the rate increased, any 6784
balance remaining in the special fund established for such purpose 6785
shall remain in that fund and be used exclusively for such purpose 6786
until the fund is completely expended, and, notwithstanding 6787
section 5705.16 of the Revised Code, the board of county 6788
commissioners shall not petition for the transfer of money from 6789
such special fund, and the tax commissioner shall not approve such 6790
a petition.6791

       If the tax is levied or the rate increased for such purpose 6792
for more than five years, the board of county commissioners also 6793
shall levy the tax or increase the rate of the tax for one or more 6794
of the purposes described in divisions (A)(1) to (5) of this 6795
section and shall prescribe the method for allocating the revenues 6796
from the tax each year in the manner required by division (C) of 6797
this section.6798

       (7) To provide additional revenue for the operation or 6799
maintenance of a detention facility, as that term is defined under 6800
division (F) of section 2921.01 of the Revised Code;6801

       (8) To provide revenue to finance the construction or 6802
renovation of a sports facility, but only if the tax is levied for 6803
that purpose in the manner prescribed by section 5739.028 of the 6804
Revised Code.6805

       As used in division (A)(8) of this section:6806

       (a) "Sports facility" means a facility intended to house 6807
major league professional athletic teams.6808

       (b) "Constructing" or "construction" includes providing 6809
fixtures, furnishings, and equipment.6810

       (9) To provide additional revenue for the acquisition of 6811
agricultural easements, as defined in section 5301.67 of the 6812
Revised Code; to pay principal, interest, and premium on bonds 6813
issued under section 133.60 of the Revised Code; and for the 6814
supervision and enforcement of agricultural easements held by the 6815
county;6816

       (10) To provide revenue for the provision of ambulance, 6817
paramedic, or other emergency medical services.6818

       Pursuant to section 755.171 of the Revised Code, a board of 6819
county commissioners may pledge and contribute revenue from a tax 6820
levied for the purpose of division (A)(5) of this section to the 6821
payment of debt charges on bonds issued under section 755.17 of 6822
the Revised Code.6823

       The rate of tax shall be a multiple of one-fourth of one per 6824
cent, unless a portion of the rate of an existing tax levied under 6825
section 5739.023 of the Revised Code has been reduced, and the 6826
rate of tax levied under this section has been increased, pursuant 6827
to section 5739.028 of the Revised Code, in which case the 6828
aggregate of the rates of tax levied under this section and 6829
section 5739.023 of the Revised Code shall be a multiple of 6830
one-fourth of one per cent. The tax shall be levied and the rate 6831
increased pursuant to a resolution adopted by a majority of the 6832
members of the board. The board shall deliver a certified copy of 6833
the resolution to the tax commissioner, not later than the 6834
sixty-fifth day prior to the date on which the tax is to become 6835
effective, which shall be the first day of a calendar quarter.6836

       Prior to the adoption of any resolution to levy the tax or to 6837
increase the rate of tax exclusively for the purpose set forth in 6838
division (A)(3) of this section, the board of county commissioners 6839
shall conduct two public hearings on the resolution, the second 6840
hearing to be no fewer than three nor more than ten days after the 6841
first. Notice of the date, time, and place of the hearings shall 6842
be given by publication in a newspaper of general circulation in 6843
the county, or as provided in section 7.16 of the Revised Code, 6844
once a week on the same day of the week for two consecutive weeks. 6845
The second publication shall be no fewer than ten nor more than 6846
thirty days prior to the first hearing. Except as provided in 6847
division (E) of this section, the resolution shall be subject to a 6848
referendum as provided in sections 305.31 to 305.41 of the Revised 6849
Code. If the resolution is adopted as an emergency measure 6850
necessary for the immediate preservation of the public peace, 6851
health, or safety, it must receive an affirmative vote of all of 6852
the members of the board of county commissioners and shall state 6853
the reasons for the necessity.6854

       If the tax is for more than one of the purposes set forth in 6855
divisions (A)(1) to (7), (9), and (10) of this section, or is 6856
exclusively for one of the purposes set forth in division (A)(1), 6857
(2), (4), (5), (6), (7), (9), or (10) of this section, the 6858
resolution shall not go into effect unless it is approved by a 6859
majority of the electors voting on the question of the tax.6860

       (B) The board of county commissioners shall adopt a 6861
resolution under section 351.02 of the Revised Code creating the 6862
convention facilities authority, or under section 307.283 of the 6863
Revised Code creating the community improvements board, before 6864
adopting a resolution levying a tax for the purpose of a 6865
convention facilities authority under division (A)(1) of this 6866
section or for the purpose of a community improvements board under 6867
division (A)(4) of this section.6868

       (C)(1) If the tax is to be used for more than one of the 6869
purposes set forth in divisions (A)(1) to (7), (9), and (10) of 6870
this section, the board of county commissioners shall establish 6871
the method that will be used to determine the amount or proportion 6872
of the tax revenue received by the county during each year that 6873
will be distributed for each of those purposes, including, if 6874
applicable, provisions governing the reallocation of a convention 6875
facilities authority's allocation if the authority is dissolved 6876
while the tax is in effect. The allocation method may provide that 6877
different proportions or amounts of the tax shall be distributed 6878
among the purposes in different years, but it shall clearly 6879
describe the method that will be used for each year. Except as 6880
otherwise provided in division (C)(2) of this section, the 6881
allocation method established by the board is not subject to 6882
amendment during the life of the tax.6883

       (2) Subsequent to holding a public hearing on the proposed 6884
amendment, the board of county commissioners may amend the 6885
allocation method established under division (C)(1) of this 6886
section for any year, if the amendment is approved by the 6887
governing board of each entity whose allocation for the year would 6888
be reduced by the proposed amendment. In the case of a tax that is 6889
levied for a continuing period of time, the board may not so amend 6890
the allocation method for any year before the sixth year that the 6891
tax is in effect.6892

       (a) If the additional revenues provided to the convention 6893
facilities authority are pledged by the authority for the payment 6894
of convention facilities authority revenue bonds for as long as 6895
such bonds are outstanding, no reduction of the authority's 6896
allocation of the tax shall be made for any year except to the 6897
extent that the reduced authority allocation, when combined with 6898
the authority's other revenues pledged for that purpose, is 6899
sufficient to meet the debt service requirements for that year on 6900
such bonds.6901

       (b) If the additional revenues provided to the county are 6902
pledged by the county for the payment of bonds or notes described 6903
in division (A)(4) or (5) of this section, for as long as such 6904
bonds or notes are outstanding, no reduction of the county's or 6905
the community improvements board's allocation of the tax shall be 6906
made for any year, except to the extent that the reduced county or 6907
community improvements board allocation is sufficient to meet the 6908
debt service requirements for that year on such bonds or notes.6909

       (c) If the additional revenues provided to the transit 6910
authority are pledged by the authority for the payment of revenue 6911
bonds issued under section 306.37 of the Revised Code, for as long 6912
as such bonds are outstanding, no reduction of the authority's 6913
allocation of tax shall be made for any year, except to the extent 6914
that the authority's reduced allocation, when combined with the 6915
authority's other revenues pledged for that purpose, is sufficient 6916
to meet the debt service requirements for that year on such bonds.6917

       (d) If the additional revenues provided to the county are 6918
pledged by the county for the payment of bonds or notes issued 6919
under section 133.60 of the Revised Code, for so long as the bonds 6920
or notes are outstanding, no reduction of the county's allocation 6921
of the tax shall be made for any year, except to the extent that 6922
the reduced county allocation is sufficient to meet the debt 6923
service requirements for that year on the bonds or notes.6924

       (D)(1) The resolution levying the tax or increasing the rate 6925
of tax shall state the rate of the tax or the rate of the 6926
increase; the purpose or purposes for which it is to be levied; 6927
the number of years for which it is to be levied or that it is for 6928
a continuing period of time; the allocation method required by 6929
division (C) of this section; and if required to be submitted to 6930
the electors of the county under division (A) of this section, the 6931
date of the election at which the proposal shall be submitted to 6932
the electors of the county, which shall be not less than ninety 6933
days after the certification of a copy of the resolution to the 6934
board of elections and, if the tax is to be levied exclusively for 6935
the purpose set forth in division (A)(3) of this section, shall 6936
not occur in February or August of any year. Upon certification of 6937
the resolution to the board of elections, the board of county 6938
commissioners shall notify the tax commissioner in writing of the 6939
levy question to be submitted to the electors. If approved by a 6940
majority of the electors, the tax shall become effective on the 6941
first day of a calendar quarter next following the sixty-fifth day 6942
following the date the board of county commissioners and tax 6943
commissioner receive from the board of elections the certification 6944
of the results of the election, except as provided in division (E) 6945
of this section.6946

       (2)(a) A resolution specifying that the tax is to be used 6947
exclusively for the purpose set forth in division (A)(3) of this 6948
section that is not adopted as an emergency measure may direct the 6949
board of elections to submit the question of levying the tax or 6950
increasing the rate of the tax to the electors of the county at a 6951
special election held on the date specified by the board of county 6952
commissioners in the resolution, provided that the election occurs 6953
not less than ninety days after the resolution is certified to the 6954
board of elections and the election is not held in February or 6955
August of any year. Upon certification of the resolution to the 6956
board of elections, the board of county commissioners shall notify 6957
the tax commissioner in writing of the levy question to be 6958
submitted to the electors. No resolution adopted under division 6959
(D)(2)(a) of this section shall go into effect unless approved by 6960
a majority of those voting upon it and, except as provided in 6961
division (E) of this section, not until the first day of a 6962
calendar quarter following the expiration of sixty-five days from 6963
the date the tax commissioner receives notice from the board of 6964
elections of the affirmative vote.6965

       (b) A resolution specifying that the tax is to be used 6966
exclusively for the purpose set forth in division (A)(3) of this 6967
section that is adopted as an emergency measure shall become 6968
effective as provided in division (A) of this section, but may 6969
direct the board of elections to submit the question of repealing 6970
the tax or increase in the rate of the tax to the electors of the 6971
county at the next general election in the county occurring not 6972
less than ninety days after the resolution is certified to the 6973
board of elections. Upon certification of the resolution to the 6974
board of elections, the board of county commissioners shall notify 6975
the tax commissioner in writing of the levy question to be 6976
submitted to the electors. The ballot question shall be the same 6977
as that prescribed in section 5739.022 of the Revised Code. The 6978
board of elections shall notify the board of county commissioners 6979
and the tax commissioner of the result of the election immediately 6980
after the result has been declared. If a majority of the qualified 6981
electors voting on the question of repealing the tax or increase 6982
in the rate of the tax vote for repeal of the tax or repeal of the 6983
increase, the board of county commissioners, on the first day of a 6984
calendar quarter following the expiration of sixty-five days after 6985
the date the board and tax commissioner received notice of the 6986
result of the election, shall, in the case of a repeal of the tax, 6987
cease to levy the tax, or, in the case of a repeal of an increase 6988
in the rate of the tax, cease to levy the increased rate and levy 6989
the tax at the rate at which it was imposed immediately prior to 6990
the increase in rate.6991

       (c) A board of county commissioners, by resolution, may 6992
reduce the rate of a tax levied exclusively for the purpose set 6993
forth in division (A)(3) of this section to a lower rate 6994
authorized by this section. Any such reduction shall be made 6995
effective on the first day of the calendar quarter next following 6996
the sixty-fifth day after the tax commissioner receives a 6997
certified copy of the resolution from the board.6998

       (E) If a vendor that is registered with the central 6999
electronic registration system provided for in section 5740.05 of 7000
the Revised Code makes a sale in this state by printed catalog and 7001
the consumer computed the tax on the sale based on local rates 7002
published in the catalog, any tax levied or repealed or rate 7003
changed under this section shall not apply to such a sale until 7004
the first day of a calendar quarter following the expiration of 7005
one hundred twenty days from the date of notice by the tax 7006
commissioner pursuant to division (G) of this section.7007

       (F) The tax levied pursuant to this section shall be in 7008
addition to the tax levied by section 5739.02 of the Revised Code 7009
and any tax levied pursuant to section 5739.021 or 5739.023 of the 7010
Revised Code.7011

       A county that levies a tax pursuant to this section shall 7012
levy a tax at the same rate pursuant to section 5741.023 of the 7013
Revised Code.7014

       The additional tax levied by the county shall be collected 7015
pursuant to section 5739.025 of the Revised Code.7016

       Any tax levied pursuant to this section is subject to the 7017
exemptions provided in section 5739.02 of the Revised Code and in 7018
addition shall not be applicable to sales not within the taxing 7019
power of a county under the Constitution of the United States or 7020
the Ohio Constitution.7021

       (G) Upon receipt from a board of county commissioners of a 7022
certified copy of a resolution required by division (A) of this 7023
section, or from the board of elections a notice of the results of 7024
an election required by division (D)(1), (2)(a), (b), or (c) of 7025
this section, the tax commissioner shall provide notice of a tax 7026
rate change in a manner that is reasonably accessible to all 7027
affected vendors. The commissioner shall provide this notice at 7028
least sixty days prior to the effective date of the rate change. 7029
The commissioner, by rule, may establish the method by which 7030
notice will be provided.7031

       Sec. 5739.04. If modification of a county's jurisdictional 7032
boundaries or a transit authority's territory results in a change 7033
in the tax rate levied under section 5739.021, 5739.023, or 7034
5739.026 of the Revised Code, the tax commissioner, within thirty 7035
days of such change, shall notify any vendor that is registered 7036
with the central electronic registration system provided for in 7037
section 5740.05 of the Revised Code or the vendor's certified 7038
service provider, if the vendor has selected one, of such change. 7039
The rate change shall not apply to sales made by such vendor until 7040
the first day of a calendar quarter following the expiration of 7041
sixty days from the date of notice by the tax commissioner.7042

       Sec. 5739.17.  (A) No person shall engage in making retail 7043
sales subject to a tax imposed by or pursuant to section 5739.02, 7044
5739.021, 5739.023, or 5739.026 of the Revised Code as a business 7045
without having a license therefor, except as otherwise provided in 7046
divisions (A)(1), (2), and (3) of this section.7047

       (1) In the dissolution of a partnership by death, the 7048
surviving partner may operate under the license of the partnership 7049
for a period of sixty days.7050

       (2) The heirs or legal representatives of deceased persons, 7051
and receivers and trustees in bankruptcy, appointed by any 7052
competent authority, may operate under the license of the person 7053
so succeeded in possession.7054

       (3) Two or more persons who are not partners may operate a 7055
single place of business under one license. In such case neither 7056
the retirement of any such person from business at that place of 7057
business, nor the entrance of any person, under an existing 7058
arrangement, shall affect the license or require the issuance of a 7059
new license, unless the person retiring from the business is the 7060
individual named on the vendor's license.7061

       Except as otherwise provided in this section, each applicant 7062
for a license shall make out and deliver to the county auditor of 7063
each county in which the applicant desires to engage in business, 7064
upon a blank to be furnished by such auditor for that purpose, a 7065
statement showing the name of the applicant, each place of 7066
business in the county where the applicant will make retail sales, 7067
the nature of the business, and any other information the tax 7068
commissioner reasonably prescribes in the form of a statement 7069
prescribed by the commissioner.7070

       At the time of making the application, the applicant shall 7071
pay into the county treasury a license fee in the sum of 7072
twenty-five dollars for each fixed place of business in the county 7073
that will be the situs of retail sales. Upon receipt of the 7074
application and exhibition of the county treasurer's receipt, 7075
showing the payment of the license fee, the county auditor shall 7076
issue to the applicant a license for each fixed place of business 7077
designated in the application, authorizing the applicant to engage 7078
in business at that location. If7079

       (B) If a vendor's identity changes, the vendor shall apply 7080
for a new license. If a vendor wishes to move an existing fixed 7081
place of business to a new location within the same county, the 7082
vendor shall obtain a new vendor's license or submit a request to 7083
the tax commissioner to transfer the existing vendor's license to 7084
the new location. When the new location has been verified as being 7085
within the same county, the commissioner shall authorize the 7086
transfer and notify the county auditor of the change of location. 7087
If a vendor wishes to move an existing fixed place of business to 7088
another county, the vendor's license shall not transfer and the 7089
vendor shall obtain a new vendor's license from the county in 7090
which the business is to be located. The form of the license shall 7091
be prescribed by the commissioner. The fees collected shall be 7092
credited to the general fund of the county. If a vendor fails to 7093
notify the commissioner of a change of location of its fixed place 7094
of business or that its business has closed, the commissioner may 7095
cancel the vendor's license if ordinary mail sent to the location 7096
shown on the license is returned because of an undeliverable 7097
address.7098

       (C) The tax commissioner may establish or participate in a 7099
registration system whereby any vendor may obtain a vendor's 7100
license by submitting to the commissioner a vendor's license 7101
application and a license fee of twenty-five dollars for each 7102
fixed place of business at which the vendor intends to make retail 7103
sales. Under this registration system, the commissioner shall 7104
issue a vendor's license to the applicant on behalf of the county 7105
auditor of the county in which the applicant desires to engage in 7106
business, and shall forward a copy of the application and license 7107
fee to that county. All such license fees received by the 7108
commissioner for the issuance of vendor's licenses shall be 7109
deposited into the vendor's license application fund, which is 7110
hereby created in the state treasury. The commissioner shall 7111
certify to the director of budget and management within ten 7112
business days after the close of a month the license fees to be 7113
transmitted to each county from the vendor's license application 7114
fund for vendor's license applications received by the 7115
commissioner during that month. License fees transmitted to a 7116
county for which payment was not received by the commissioner may 7117
be netted against a future distribution to that county, including 7118
distributions made pursuant to section 5739.21 of the Revised 7119
Code.7120

       A vendor that makes retail sales subject to tax under Chapter 7121
5739. of the Revised Code pursuant to a permit issued by the 7122
division of liquor control shall obtain a vendor's license in the 7123
identical name and for the identical address as shown on the 7124
permit.7125

       Except as otherwise provided in this section, if a vendor has 7126
no fixed place of business and sells from a vehicle, each vehicle 7127
intended to be used within a county constitutes a place of 7128
business for the purpose of this section.7129

       (B)(D) As used in this divisionsection, "transient vendor" 7130
means any person who makes sales of tangible personal property 7131
from vending machines located on land owned by others, who leases 7132
titled motor vehicles, titled watercraft, or titled outboard 7133
motors, who effectuates leases that are taxed according to 7134
division (A)(2) of section 5739.02 of the Revised Code, or who, in 7135
the usual course of the person's business, transports inventory, 7136
stock of goods, or similar tangible personal property to a 7137
temporary place of business or temporary exhibition, show, fair, 7138
flea market, or similar event in a county in which the person has 7139
no fixed place of business, for the purpose of making retail sales 7140
of such property. A "temporary place of business" means any public 7141
or quasi-public place including, but not limited to, a hotel, 7142
rooming house, storeroom, building, part of a building, tent, 7143
vacant lot, railroad car, or motor vehicle that is temporarily 7144
occupied for the purpose of making retail sales of goods to the 7145
public. A place of business is not temporary if the same person 7146
conducted business at the place continuously for more than six 7147
months or occupied the premises as the person's permanent 7148
residence for more than six months, or if the person intends it to 7149
be a fixed place of business.7150

       Any transient vendor, in lieu of obtaining a vendor's license 7151
under division (A) of this section for counties in which the 7152
transient vendor has no fixed place of business, may apply to the 7153
tax commissioner, on a form prescribed by the commissioner, for a 7154
transient vendor's license. The transient vendor's license 7155
authorizes the transient vendor to make retail sales in any county 7156
in which the transient vendor does not maintain a fixed place of 7157
business. Any holder of a transient vendor's license shall not be 7158
required to obtain a separate vendor's license from the county 7159
auditor in that county. Upon the commissioner's determination that 7160
an applicant is a transient vendor, the applicant shall pay a 7161
license fee in the amount of twenty-five dollars, at which time 7162
the tax commissioner shall issue the license. The tax commissioner 7163
may require a vendor to be licensed as a transient vendor if, in 7164
the opinion of the commissioner, such licensing is necessary for 7165
the efficient administration of the tax.7166

       Any holder of a valid transient vendor's license may make 7167
retail sales at a temporary place of business or temporary 7168
exhibition, show, fair, flea market, or similar event, held 7169
anywhere in the state without complying with any provision of 7170
section 311.37 of the Revised Code. Any holder of a valid vendor's 7171
license may make retail sales as a transient vendor at a temporary 7172
place of business or temporary exhibition, show, fair, flea 7173
market, or similar event held in any county in which the vendor 7174
maintains a fixed place of business for which the vendor holds a 7175
vendor's license without obtaining a transient vendor's license.7176

       (C) As used in this division, "service vendor" means any 7177
person who, in the usual course of the person's business, sells 7178
services described in division (B)(3)(e), (f), (g), (h), (i), (j), 7179
(k), (l), (m), (p), or (t) of section 5739.01 of the Revised Code.7180

       Every service vendor shall make application to the tax 7181
commissioner for a service vendor's license. Each applicant shall 7182
pay a license fee in the amount of twenty-five dollars. Upon the 7183
commissioner's determination that an applicant is a service vendor 7184
and payment of the fee, the commissioner shall issue the applicant 7185
a service vendor's license.7186

       Only sales described in division (B)(3)(e), (f), (g), (h), 7187
(i), (j), (k), (l), (m), (p), or (t) of section 5739.01 of the 7188
Revised Code may be made under authority of a service vendor's 7189
license, and that license authorizes sales to be made at any place 7190
in this state. Any service vendor who makes sales of other 7191
services or tangible personal property subject to the sales tax 7192
also shall be licensed under division (A), (B), or (D) of this 7193
section.7194

       (D) As used in this division, "delivery vendor" means any 7195
vendor who engages in one or more of the activities described in 7196
divisions (D)(1) to (4) of this section, and who maintains no 7197
store, showroom, or similar fixed place of business or other 7198
location where merchandise regularly is offered for sale or 7199
displayed or shown in catalogs for selection or pick-up by 7200
consumers, or where consumers bring goods for repair or other 7201
service.7202

       (1) The vendor makes retail sales of tangible personal 7203
property;7204

       (2) The vendor rents or leases, at retail, tangible personal 7205
property, except titled motor vehicles, titled watercraft, or 7206
titled outboard motors;7207

       (3) The vendor provides a service, at retail, described in 7208
division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the 7209
Revised Code; or7210

       (4) The vendor makes retail sales of warranty, maintenance or 7211
service contracts, or similar agreements as described in division 7212
(B)(7) of section 5739.01 of the Revised Code.7213

       A transient vendor or a seller registered pursuant to section 7214
5741.17 of the Revised Code is not a delivery vendor.7215

       Delivery vendors shall apply to the tax commissioner, on a 7216
form prescribed by the commissioner, for a delivery vendor's 7217
license. Each applicant shall pay a license fee of twenty-five 7218
dollars for each delivery vendor's license, to be credited to the 7219
general revenue fund. Upon the commissioner's determination that 7220
the applicant is a delivery vendor, the commissioner shall issue 7221
the license. A delivery vendor's license authorizes retail sales 7222
to be made throughout the state. All sales of the vendor must be 7223
reported under the delivery license. The commissioner may require 7224
a vendor to be licensed as a delivery vendor if, in the opinion of 7225
the commissioner, such licensing is necessary for the efficient 7226
administration of the tax. The commissioner shall not issue a 7227
delivery vendor license to a vendor who holds a license issued 7228
under division (A) of this section.7229

       (E) Any transient vendor who is issued a license pursuant to 7230
this section shall display the license or a copy of it 7231
prominently, in plain view, at every place of business of the7232
transient vendor. Every7233

       (F) No owner, organizer, or promoter who operates a fair, 7234
flea market, show, exhibition, convention, or similar event at 7235
which transient vendors are present shall fail to keep a 7236
comprehensive record of all such vendors, listing the vendor's 7237
name, permanent address, vendor's license number, and the type of 7238
goods sold. Such records shall be kept for four years and shall be 7239
open to inspection by the tax commissioner.7240

       (G) The commissioner may issue additional types of licenses 7241
if required to efficiently administer the tax imposed by this 7242
chapter.7243

       Sec. 5741.08. If modification of a county's jurisdictional 7244
boundaries or a transit authority's territory results in a change 7245
in the tax rate levied under section 5741.021, 5741.022, or 7246
5741.023 of the Revised Code, the tax commissioner, within thirty 7247
days of such change, shall notify any seller that is registered 7248
with the central electronic registration system provided for in 7249
section 5740.05 of the Revised Code or the seller's certified 7250
service provider, if the seller has selected one, of such change. 7251
The rate change shall not apply until the first day of a calendar 7252
quarter following the expiration of sixty days from the date of 7253
notice by the tax commissioner.7254

       Sec. 5743.20.  No person shall sell any cigarettes both as a 7255
retail dealer and as a wholesale dealer at the same place of 7256
business. No person other than a licensed wholesale dealer shall 7257
sell cigarettes to a licensed retail dealer. No retail dealer 7258
shall purchase cigarettes from any person other than a licensed 7259
wholesale dealer.7260

       Subject to section 5743.031 of the Revised Code, a licensed 7261
wholesale dealer may not sell cigarettes to any person in this 7262
state other than a licensed retail dealer, except a licensed 7263
wholesale dealer may sell cigarettes to another licensed wholesale 7264
dealer if the tax commissioner has authorized the sale of the 7265
cigarettes between those wholesale dealers and the wholesale 7266
dealer that sells the cigarettes received them directly from a 7267
licensed manufacturer or licensed importer.7268

        The tax commissioner shall adopt rules governing sales of 7269
cigarettes between licensed wholesale dealers, including rules 7270
establishing criteria for authorizing such sales.7271

       No manufacturer or importer shall sell cigarettes to any 7272
person in this state other than to a licensed wholesale dealer or 7273
licensed importer. No importer shall purchase cigarettes from any 7274
person other than a licensed manufacturer or licensed importer.7275

       A retail dealer may purchase other tobacco products only from 7276
a licensed distributor. A licensed distributor may sell tobacco 7277
products only to a retail dealer, except a licensed distributor 7278
may sell tobacco products to another licensed distributor if the 7279
tax commissioner has authorized the sale of the tobacco products 7280
between those distributors and the distributor that sells the 7281
tobacco products received them directly from a manufacturer or 7282
importer of tobacco products.7283

        The tax commissioner may adopt rules governing sales of 7284
tobacco products between licensed distributors, including rules 7285
establishing criteria for authorizing such sales.7286

       The identities of cigarette manufacturers and importers, 7287
licensed cigarette wholesalers, licensed distributors of other 7288
tobacco products, and registered manufacturers,and importers, and 7289
brokers of other tobacco products are subject to public 7290
disclosure. The tax commissioner shall maintain an alphabetical 7291
list of all such manufacturers, importers, wholesalers, and7292
distributors, and brokers, shall post the list on a web site 7293
accessible to the public through the internet, and shall 7294
periodically update the web site posting.7295

       As used in this section, "licensed" means the manufacturer, 7296
importer, wholesale dealer, or distributor holds a current and 7297
valid license issued under section 5743.15 or 5743.61 of the 7298
Revised Code, and "registered" means registered with the tax7299
commissioner under section 5743.66 of the Revised Code.7300

       Sec. 5743.61.  (A) Except as otherwise provided in this 7301
division, no distributor shall engage in the business of 7302
distributing tobacco products within this state without having a 7303
license issued by the department of taxation to engage in that 7304
business. On the dissolution of a partnership by death, the 7305
surviving partner may operate under the license of the partnership 7306
until the expiration of the license, and the heirs or legal 7307
representatives of deceased persons, and receivers and trustees in 7308
bankruptcy appointed by any competent authority, may operate under 7309
the license of the person succeeded in possession by the heir, 7310
representative, receiver, or trustee in bankruptcy if the partner 7311
or successor notifies the department of taxation of the 7312
dissolution or succession within thirty days after the dissolution 7313
or succession.7314

       (B)(1) Each applicant for a license to engage in the business 7315
of distributing tobacco products, annually, on or before the first 7316
day of February, shall make and deliver to the tax commissioner, 7317
upon a form furnished by the commissioner for that purpose, a 7318
statement showing the name of the applicant, each physical place 7319
from which the applicant distributes to distributors, retail 7320
dealers, or wholesale dealers, and any other information the 7321
commissioner considers necessary for the administration of 7322
sections 5743.51 to 5743.66 of the Revised Code.7323

       (2) At the time of making the license application, the 7324
applicant shall pay an application fee of one thousand dollars for 7325
each place listed on the application where the applicant proposes 7326
to carry on that business. The fee charged for the application 7327
shall accompany the application and shall be made payable to the 7328
treasurer of state for deposit into the cigarette tax enforcement 7329
fund.7330

       (3) Upon receipt of the application and payment of any 7331
licensing fee required by this section, the commissioner shall 7332
issue to the applicant a license for each place of distribution 7333
designated in the application authorizing the applicant to engage 7334
in business at that location for one year commencing on the first 7335
day of February. For licenses issued after the first day of 7336
February, the license application fee shall be reduced 7337
proportionately by the remainder of the twelve-month period for 7338
which the license is issued, except that the application fee 7339
required to be paid under this section shall be not less than two 7340
hundred dollars. If the original license is lost, destroyed, or 7341
defaced, a duplicate license may be obtained from the commissioner 7342
upon payment of a license replacement fee of twenty-five dollars.7343

       (C) The holder of a tobacco products license may transfer the 7344
license to a place of business on condition that the licensee's 7345
ownership and business structure remains unchanged and the 7346
licensee applies to the commissioner for the transfer on a form 7347
issued by the commissioner, and pays a transfer fee of twenty-five 7348
dollars.7349

       (D) If a distributor fails to file forms as required under 7350
Chapter 1346. or section 5743.52 of the Revised Code or pay the 7351
tax due for two consecutive periods or three periods during any 7352
twelve-month period, the commissioner may suspend the license 7353
issued to the distributor under this section. The suspension is 7354
effective ten days after the commissioner notifies the distributor 7355
of the suspension in writing personally or by certified mail. The 7356
commissioner shall lift the suspension when the distributor files 7357
the delinquent forms and pays the tax due, including any 7358
penalties, interest, and additional charges. The commissioner may 7359
refuse to issue the annual renewal of the license required by this 7360
section and may refuse to issue a new license for the same 7361
location until all delinquent forms are filed and outstanding 7362
taxes are paid. This division does not apply to any unpaid or 7363
underpaid tax liability that is the subject of a petition or 7364
appeal filed pursuant to section 5743.56, 5717.02, or 5717.04 of 7365
the Revised Code.7366

       (E)(1) The tax commissioner may impose a penalty of up to one 7367
thousand dollars on any person found to be engaging in the 7368
business of distributing tobacco products without a license as 7369
required by this section.7370

        (2) Any person engaging in the business of distributing 7371
tobacco products without a license as required by this section 7372
shall comply with divisions (B)(1) and (2) of this section within 7373
ten days after being notified of the requirement to do so. Failure 7374
to comply with division (E)(2) of this section subjects a person 7375
to penalties imposed under section 5743.99 of the Revised Code.7376

       Sec. 5743.66.  (A) Each manufacturer,or importer, or broker7377
of tobacco products shall register with the tax commissioner 7378
before it sells or distributes tobacco products to distributors in 7379
this state, and, upon the request of the tax commissioner, shall 7380
provide complete information on sales made to distributors in this 7381
state and a current list of prices charged for tobacco products 7382
sold to distributors in this state.7383

       (B) On or before the last day of each month, every 7384
manufacturer,or importer, or broker of tobacco products shall 7385
file a report with the commissioner listing all sales of tobacco 7386
products to distributors located in this state during the 7387
preceding month and any other information the commissioner finds 7388
necessary for the proper administration of sections 5743.51 to 7389
5743.66 of the Revised Code.7390

       Sec. 5747.082.  (A) As used in this section:7391

       (1) "Electronic technology" means electronic technology 7392
acceptable to the tax commissioner under division (B) of this 7393
section.7394

       (2) "Original tax return" means any report, return, or other 7395
tax document required to be filed under this chapter for the 7396
purpose of reporting the taxes due under, and withholdings 7397
required by, this chapter. "Original tax return" does not include 7398
an amended return or any declaration or form required by or filed 7399
in connection with section 5747.09 of the Revised Code.7400

       (3) "Related member" has the same meaning as in section 7401
5733.042 of the Revised Code.7402

       (4) "Tax return preparer" means any person that operates a 7403
business that prepares, or directly or indirectly employs another 7404
person to prepare, for a taxpayer an original tax return in 7405
exchange for compensation or remuneration from the taxpayer or the 7406
taxpayer's related member. With respect to the preparation of a 7407
return or application for refund under this chapter, "tax return 7408
preparer" does not include an individual who performs only one or 7409
more of the following activities:7410

       (a) Furnishes typing, reproducing, or other mechanical 7411
assistance;7412

       (b) Prepares an application for refund or a return on behalf 7413
of an employer by whom the individual is regularly and 7414
continuously employed, or on behalf of an officer or employee of 7415
that employer;7416

       (c) Prepares as a fiduciary an application for refund or a 7417
return;7418

       (d) Prepares an application for refund or a return for a 7419
taxpayer in response to a notice of deficiency issued to the 7420
taxpayer or the taxpayer's related member, or in response to a 7421
waiver of restriction after the commencement of an audit of the 7422
taxpayer or the taxpayer's related member.7423

       (B) Divisions (C) and (D) of this section apply to the filing 7424
of original tax returns that are due in a calendar year only if 7425
the tax commissioner, by the last day of the calendar year 7426
immediately preceding the calendar year in which such returns are 7427
due, has published on the department of taxation's official 7428
internet web site at least one method of electronic technology 7429
acceptable to the commissioner for filing such returns.7430

       (C) A tax return preparer that prepares more than 7431
seventy-five original tax returns during any calendar year that 7432
begins on or after January 1, 2008ends before January 1, 2013, or 7433
that prepares more than eleven original tax returns during any 7434
calendar year that begins on or after January 1, 2013, shall, 7435
beginning January 1, 2010, use electronic technology to file with 7436
the tax commissioner all original tax returns prepared by the tax 7437
return preparer. This division does not apply to a tax return 7438
preparer for ain any calendar year that ends before January 1, 7439
2013, if, during the previous calendar year, the tax return 7440
preparer prepared no more than twenty-five original tax returns.7441
This division does not apply to a tax return preparer in any 7442
calendar year that begins on or after January 1, 2013, if, during 7443
the previous calendar year, the tax return preparer prepared not 7444
more than ten original tax returns.7445

       (D) If a tax return preparer required by this section to 7446
submit original tax returns by electronic technology files an 7447
original tax return by some means other than by electronic 7448
technology, the tax commissioner shall impose a penalty of fifty 7449
dollars for each return, in excess of seventy-five in a calendar 7450
year 2010, 2011, or 2012, or in excess of eleven in any calendar 7451
year thereafter, that is not filed by electronic technology. Upon 7452
good cause shown by the tax return preparer, the tax commissioner 7453
may waive all or any portion of the penalty or may refund all or 7454
any portion of the penalty the tax return preparer has paid.7455

       Sec. 5751.01.  As used in this chapter:7456

       (A) "Person" means, but is not limited to, individuals, 7457
combinations of individuals of any form, receivers, assignees, 7458
trustees in bankruptcy, firms, companies, joint-stock companies, 7459
business trusts, estates, partnerships, limited liability 7460
partnerships, limited liability companies, associations, joint 7461
ventures, clubs, societies, for-profit corporations, S 7462
corporations, qualified subchapter S subsidiaries, qualified 7463
subchapter S trusts, trusts, entities that are disregarded for 7464
federal income tax purposes, and any other entities. 7465

       (B) "Consolidated elected taxpayer" means a group of two or 7466
more persons treated as a single taxpayer for purposes of this 7467
chapter as the result of an election made under section 5751.011 7468
of the Revised Code.7469

       (C) "Combined taxpayer" means a group of two or more persons 7470
treated as a single taxpayer for purposes of this chapter under 7471
section 5751.012 of the Revised Code.7472

       (D) "Taxpayer" means any person, or any group of persons in 7473
the case of a consolidated elected taxpayer or combined taxpayer 7474
treated as one taxpayer, required to register or pay tax under 7475
this chapter. "Taxpayer" does not include excluded persons.7476

        (E) "Excluded person" means any of the following:7477

       (1) Any person with not more than one hundred fifty thousand 7478
dollars of taxable gross receipts during the calendar year. 7479
Division (E)(1) of this section does not apply to a person that is 7480
a member of a consolidated elected taxpayer;7481

        (2) A public utility that paid the excise tax imposed by 7482
section 5727.24 or 5727.30 of the Revised Code based on one or 7483
more measurement periods that include the entire tax period under 7484
this chapter, except that a public utility that is a combined 7485
company is a taxpayer with regard to the following gross receipts:7486

        (a) Taxable gross receipts directly attributed to a public 7487
utility activity, but not directly attributed to an activity that 7488
is subject to the excise tax imposed by section 5727.24 or 5727.30 7489
of the Revised Code;7490

        (b) Taxable gross receipts that cannot be directly attributed 7491
to any activity, multiplied by a fraction whose numerator is the 7492
taxable gross receipts described in division (E)(2)(a) of this 7493
section and whose denominator is the total taxable gross receipts 7494
that can be directly attributed to any activity;7495

        (c) Except for any differences resulting from the use of an 7496
accrual basis method of accounting for purposes of determining 7497
gross receipts under this chapter and the use of the cash basis 7498
method of accounting for purposes of determining gross receipts 7499
under section 5727.24 of the Revised Code, the gross receipts 7500
directly attributed to the activity of a natural gas company shall 7501
be determined in a manner consistent with division (D) of section 7502
5727.03 of the Revised Code.7503

        As used in division (E)(2) of this section, "combined 7504
company" and "public utility" have the same meanings as in section 7505
5727.01 of the Revised Code.7506

       (3) A financial institution, as defined in section 5725.01 of 7507
the Revised Code, that paid the corporation franchise tax charged 7508
by division (D) of section 5733.06 of the Revised Code based on 7509
one or more taxable years that include the entire tax period under 7510
this chapter;7511

       (4) A dealer in intangibles, as defined in section 5725.01 of 7512
the Revised Code, that paid the dealer in intangibles tax levied 7513
by division (D) of section 5707.03 of the Revised Code based on 7514
one or more measurement periods that include the entire tax period 7515
under this chapter;7516

       (5) A financial holding company as defined in the "Bank 7517
Holding Company Act," 12 U.S.C. 1841(p);7518

        (6) A bank holding company as defined in the "Bank Holding 7519
Company Act," 12 U.S.C. 1841(a);7520

        (7) A savings and loan holding company as defined in the 7521
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging 7522
only in activities or investments permissible for a financial 7523
holding company under 12 U.S.C. 1843(k);7524

        (8) A person directly or indirectly owned by one or more 7525
financial institutions, financial holding companies, bank holding 7526
companies, or savings and loan holding companies described in 7527
division (E)(3), (5), (6), or (7) of this section that is engaged 7528
in activities permissible for a financial holding company under 12 7529
U.S.C. 1843(k), except that any such person held pursuant to 7530
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12 7531
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person 7532
directly or indirectly owned by one or more insurance companies 7533
described in division (E)(9) of this section that is authorized to 7534
do the business of insurance in this state.7535

        For the purposes of division (E)(8) of this section, a person 7536
owns another person under the following circumstances:7537

        (a) In the case of corporations issuing capital stock, one 7538
corporation owns another corporation if it owns fifty per cent or 7539
more of the other corporation's capital stock with current voting 7540
rights;7541

        (b) In the case of a limited liability company, one person 7542
owns the company if that person's membership interest, as defined 7543
in section 1705.01 of the Revised Code, is fifty per cent or more 7544
of the combined membership interests of all persons owning such 7545
interests in the company;7546

        (c) In the case of a partnership, trust, or other 7547
unincorporated business organization other than a limited 7548
liability company, one person owns the organization if, under the 7549
articles of organization or other instrument governing the affairs 7550
of the organization, that person has a beneficial interest in the 7551
organization's profits, surpluses, losses, or distributions of 7552
fifty per cent or more of the combined beneficial interests of all 7553
persons having such an interest in the organization;7554

        (d) In the case of multiple ownership, the ownership 7555
interests of more than one person may be aggregated to meet the 7556
fifty per cent ownership tests in this division only when each 7557
such owner is described in division (E)(3), (5), (6), or (7) of 7558
this section and is engaged in activities permissible for a 7559
financial holding company under 12 U.S.C. 1843(k) or is a person 7560
directly or indirectly owned by one or more insurance companies 7561
described in division (E)(9) of this section that is authorized to 7562
do the business of insurance in this state.7563

        (9) A domestic insurance company or foreign insurance 7564
company, as defined in section 5725.01 of the Revised Code, that 7565
paid the insurance company premiums tax imposed by section 5725.18 7566
or Chapter 5729. of the Revised Code, or an unauthorized insurance 7567
company whose gross premiums are subject to tax under section 7568
3905.36 of the Revised Code based on one or more measurement 7569
periods that include the entire tax period under this chapter;7570

       (10) A person that solely facilitates or services one or more 7571
securitizations or similar transactions for any person described 7572
in division (E)(3), (5), (6), (7), (8), or (9) of this section. 7573
For purposes of this division, "securitization" means transferring 7574
one or more assets to one or more persons and then issuing 7575
securities backed by the right to receive payment from the asset 7576
or assets so transferred.7577

       (11) Except as otherwise provided in this division, a 7578
pre-income tax trust as defined in division (FF)(4) of section 7579
5747.01 of the Revised Code and any pass-through entity of which 7580
such pre-income tax trust owns or controls, directly, indirectly, 7581
or constructively through related interests, more than five per 7582
cent of the ownership or equity interests. If the pre-income tax 7583
trust has made a qualifying pre-income tax trust election under 7584
division (FF)(3) of section 5747.01 of the Revised Code, then the 7585
trust and the pass-through entities of which it owns or controls, 7586
directly, indirectly, or constructively through related interests, 7587
more than five per cent of the ownership or equity interests, 7588
shall not be excluded persons for purposes of the tax imposed 7589
under section 5751.02 of the Revised Code.7590

       (12) Nonprofit organizations or the state and its agencies, 7591
instrumentalities, or political subdivisions.7592

       (F) Except as otherwise provided in divisions (F)(2), (3), 7593
and (4) of this section, "gross receipts" means the total amount 7594
realized by a person, without deduction for the cost of goods sold 7595
or other expenses incurred, that contributes to the production of 7596
gross income of the person, including the fair market value of any 7597
property and any services received, and any debt transferred or 7598
forgiven as consideration. 7599

       (1) The following are examples of gross receipts:7600

       (a) Amounts realized from the sale, exchange, or other 7601
disposition of the taxpayer's property to or with another;7602

       (b) Amounts realized from the taxpayer's performance of 7603
services for another;7604

       (c) Amounts realized from another's use or possession of the 7605
taxpayer's property or capital;7606

       (d) Any combination of the foregoing amounts.7607

       (2) "Gross receipts" excludes the following amounts:7608

       (a) Interest income except interest on credit sales;7609

       (b) Dividends and distributions from corporations, and 7610
distributive or proportionate shares of receipts and income from a 7611
pass-through entity as defined under section 5733.04 of the 7612
Revised Code;7613

       (c) Receipts from the sale, exchange, or other disposition of 7614
an asset described in section 1221 or 1231 of the Internal Revenue 7615
Code, without regard to the length of time the person held the 7616
asset. Notwithstanding section 1221 of the Internal Revenue Code, 7617
receipts from hedging transactions also are excluded to the extent 7618
the transactions are entered into primarily to protect a financial 7619
position, such as managing the risk of exposure to (i) foreign 7620
currency fluctuations that affect assets, liabilities, profits, 7621
losses, equity, or investments in foreign operations; (ii) 7622
interest rate fluctuations; or (iii) commodity price fluctuations. 7623
As used in division (F)(2)(c) of this section, "hedging 7624
transaction" has the same meaning as used in section 1221 of the 7625
Internal Revenue Code and also includes transactions accorded 7626
hedge accounting treatment under statement of financial accounting 7627
standards number 133 of the financial accounting standards board. 7628
For the purposes of division (F)(2)(c) of this section, the actual 7629
transfer of title of real or tangible personal property to another 7630
entity is not a hedging transaction.7631

       (d) Proceeds received attributable to the repayment, 7632
maturity, or redemption of the principal of a loan, bond, mutual 7633
fund, certificate of deposit, or marketable instrument;7634

       (e) The principal amount received under a repurchase 7635
agreement or on account of any transaction properly characterized 7636
as a loan to the person;7637

       (f) Contributions received by a trust, plan, or other 7638
arrangement, any of which is described in section 501(a) of the 7639
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter 7640
1, Subchapter (D) of the Internal Revenue Code applies;7641

       (g) Compensation, whether current or deferred, and whether in 7642
cash or in kind, received or to be received by an employee, former 7643
employee, or the employee's legal successor for services rendered 7644
to or for an employer, including reimbursements received by or for 7645
an individual for medical or education expenses, health insurance 7646
premiums, or employee expenses, or on account of a dependent care 7647
spending account, legal services plan, any cafeteria plan 7648
described in section 125 of the Internal Revenue Code, or any 7649
similar employee reimbursement;7650

       (h) Proceeds received from the issuance of the taxpayer's own 7651
stock, options, warrants, puts, or calls, or from the sale of the 7652
taxpayer's treasury stock;7653

       (i) Proceeds received on the account of payments from 7654
insurance policies, except those proceeds received for the loss of 7655
business revenue;7656

       (j) Gifts or charitable contributions received; membership 7657
dues received by trade, professional, homeowners', or condominium 7658
associations; and payments received for educational courses, 7659
meetings, meals, or similar payments to a trade, professional, or 7660
other similar association; and fundraising receipts received by 7661
any person when any excess receipts are donated or used 7662
exclusively for charitable purposes;7663

       (k) Damages received as the result of litigation in excess of 7664
amounts that, if received without litigation, would be gross 7665
receipts;7666

       (l) Property, money, and other amounts received or acquired 7667
by an agent on behalf of another in excess of the agent's 7668
commission, fee, or other remuneration;7669

       (m) Tax refunds, other tax benefit recoveries, and 7670
reimbursements for the tax imposed under this chapter made by 7671
entities that are part of the same combined taxpayer or 7672
consolidated elected taxpayer group, and reimbursements made by 7673
entities that are not members of a combined taxpayer or 7674
consolidated elected taxpayer group that are required to be made 7675
for economic parity among multiple owners of an entity whose tax 7676
obligation under this chapter is required to be reported and paid 7677
entirely by one owner, pursuant to the requirements of sections 7678
5751.011 and 5751.012 of the Revised Code;7679

       (n) Pension reversions;7680

       (o) Contributions to capital;7681

       (p) Sales or use taxes collected as a vendor or an 7682
out-of-state seller on behalf of the taxing jurisdiction from a 7683
consumer or other taxes the taxpayer is required by law to collect 7684
directly from a purchaser and remit to a local, state, or federal 7685
tax authority;7686

       (q) In the case of receipts from the sale of cigarettes or 7687
tobacco products by a wholesale dealer, retail dealer, 7688
distributor, manufacturer, or seller, all as defined in section 7689
5743.01 of the Revised Code, an amount equal to the federal and 7690
state excise taxes paid by any person on or for such cigarettes or 7691
tobacco products under subtitle E of the Internal Revenue Code or 7692
Chapter 5743. of the Revised Code;7693

       (r) In the case of receipts from the sale of motor fuel by a 7694
licensed motor fuel dealer, licensed retail dealer, or licensed 7695
permissive motor fuel dealer, all as defined in section 5735.01 of 7696
the Revised Code, an amount equal to federal and state excise 7697
taxes paid by any person on such motor fuel under section 4081 of 7698
the Internal Revenue Code or Chapter 5735. of the Revised Code;7699

       (s) In the case of receipts from the sale of beer or 7700
intoxicating liquor, as defined in section 4301.01 of the Revised 7701
Code, by a person holding a permit issued under Chapter 4301. or 7702
4303. of the Revised Code, an amount equal to federal and state 7703
excise taxes paid by any person on or for such beer or 7704
intoxicating liquor under subtitle E of the Internal Revenue Code 7705
or Chapter 4301. or 4305. of the Revised Code;7706

        (t) Receipts realized by a new motor vehicle dealer or used 7707
motor vehicle dealer, as defined in section 4517.01 of the Revised 7708
Code, from the sale or other transfer of a motor vehicle, as 7709
defined in that section, to another motor vehicle dealer for the 7710
purpose of resale by the transferee motor vehicle dealer, but only 7711
if the sale or other transfer was based upon the transferee's need 7712
to meet a specific customer's preference for a motor vehicle;7713

       (u) Receipts from a financial institution described in 7714
division (E)(3) of this section for services provided to the 7715
financial institution in connection with the issuance, processing, 7716
servicing, and management of loans or credit accounts, if such 7717
financial institution and the recipient of such receipts have at 7718
least fifty per cent of their ownership interests owned or 7719
controlled, directly or constructively through related interests, 7720
by common owners;7721

       (v) Receipts realized from administering anti-neoplastic 7722
drugs and other cancer chemotherapy, biologicals, therapeutic 7723
agents, and supportive drugs in a physician's office to patients 7724
with cancer;7725

       (w) Funds received or used by a mortgage broker that is not a 7726
dealer in intangibles, other than fees or other consideration, 7727
pursuant to a table-funding mortgage loan or warehouse-lending 7728
mortgage loan. Terms used in division (F)(2)(w) of this section 7729
have the same meanings as in section 1322.01 of the Revised Code, 7730
except "mortgage broker" means a person assisting a buyer in 7731
obtaining a mortgage loan for a fee or other consideration paid by 7732
the buyer or a lender, or a person engaged in table-funding or 7733
warehouse-lending mortgage loans that are first lien mortgage 7734
loans.7735

        (x) Property, money, and other amounts received by a 7736
professional employer organization, as defined in section 4125.01 7737
of the Revised Code, from a client employer, as defined in that 7738
section, in excess of the administrative fee charged by the 7739
professional employer organization to the client employer;7740

       (y) In the case of amounts retained as commissions by a 7741
permit holder under Chapter 3769. of the Revised Code, an amount 7742
equal to the amounts specified under that chapter that must be 7743
paid to or collected by the tax commissioner as a tax and the 7744
amounts specified under that chapter to be used as purse money;7745

       (z) Qualifying distribution center receipts.7746

       (i) For purposes of division (F)(2)(z) of this section:7747

       (I) "Qualifying distribution center receipts" means receipts 7748
of a supplier from qualified property that is delivered to a 7749
qualified distribution center, multiplied by a quantity that 7750
equals one minus the Ohio delivery percentage.7751

       (II) "Qualified property" means tangible personal property 7752
delivered to a qualified distribution center that is shipped to 7753
that qualified distribution center solely for further shipping by 7754
the qualified distribution center to another location in this 7755
state or elsewhere. "Further shipping" includes storing and 7756
repackaging such property into smaller or larger bundles, so long 7757
as such property is not subject to further manufacturing or 7758
processing.7759

       (III) "Qualified distribution center" means a warehouse or 7760
other similar facility in this state that, for the qualifying 7761
year, is operated by a person that is not part of a combined 7762
taxpayer group and that has a qualifying certificate. However, all 7763
warehouses or other similar facilities that are operated by 7764
persons in the same taxpayer group and that are located within one 7765
mile of each other shall be treated as one qualified distribution 7766
center.7767

       (IV) "Qualifying year" means the calendar year to which the 7768
qualifying certificate applies.7769

       (V) "Qualifying period" means the period of the first day of 7770
July of the second year preceding the qualifying year through the 7771
thirtieth day of June of the year preceding the qualifying year.7772

       (VI) "Qualifying certificate" means the certificate issued by 7773
the tax commissioner after the operator of a distribution center 7774
files an annual application with the commissioner. The application 7775
and annual fee shall be filed and paid for each qualified 7776
distribution center on or before the first day of September before 7777
the qualifying year or within forty-five days after the 7778
distribution center opens, whichever is later.7779

       The applicant must substantiate to the commissioner's 7780
satisfaction that, for the qualifying period, all persons 7781
operating the distribution center have more than fifty per cent of 7782
the cost of the qualified property shipped to a location such that 7783
it would be sitused outside this state under the provisions of 7784
division (E) of section 5751.033 of the Revised Code. The 7785
applicant must also substantiate that the distribution center 7786
cumulatively had costs from its suppliers equal to or exceeding 7787
five hundred million dollars during the qualifying period. (For 7788
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier" 7789
excludes any person that is part of the consolidated elected 7790
taxpayer group, if applicable, of the operator of the qualified 7791
distribution center.) The commissioner may require the applicant 7792
to have an independent certified public accountant certify that 7793
the calculation of the minimum thresholds required for a qualified 7794
distribution center by the operator of a distribution center has 7795
been made in accordance with generally accepted accounting 7796
principles. The commissioner shall issue or deny the issuance of a 7797
certificate within sixty days after the receipt of the 7798
application. A denial is subject to appeal under section 5717.02 7799
of the Revised Code. If the operator files a timely appeal under 7800
section 5717.02 of the Revised Code, the operator shall be granted 7801
a qualifying certificate, provided that the operator is liable for 7802
any tax, interest, or penalty upon amounts claimed as qualifying 7803
distribution center receipts, other than those receipts exempt 7804
under division (C)(1) of section 5751.011 of the Revised Code, 7805
that would have otherwise not been owed by its suppliers if the 7806
qualifying certificate was valid.7807

       (VII) "Ohio delivery percentage" means the proportion of the 7808
total property delivered to a destination inside Ohio from the 7809
qualified distribution center during the qualifying period 7810
compared with total deliveries from such distribution center 7811
everywhere during the qualifying period.7812

       (ii) If the distribution center is new and was not open for 7813
the entire qualifying period, the operator of the distribution 7814
center may request that the commissioner grant a qualifying 7815
certificate. If the certificate is granted and it is later 7816
determined that more than fifty per cent of the qualified property 7817
during that year was not shipped to a location such that it would 7818
be sitused outside of this state under the provisions of division 7819
(E) of section 5751.033 of the Revised Code or if it is later 7820
determined that the person that operates the distribution center 7821
had average monthly costs from its suppliers of less than forty 7822
million dollars during that year, then the operator of the 7823
distribution center shall be liable for any tax, interest, or 7824
penalty upon amounts claimed as qualifying distribution center 7825
receipts, other than those receipts exempt under division (C)(1) 7826
of section 5751.011 of the Revised Code, that would have not 7827
otherwise been owed by its suppliers during the qualifying year if 7828
the qualifying certificate was valid. (For purposes of division 7829
(F)(2)(z)(ii) of this section, "supplier" excludes any person that 7830
is part of the consolidated elected taxpayer group, if applicable, 7831
of the operator of the qualified distribution center.)7832

       (iii) When filing an application for a qualifying certificate 7833
under division (F)(2)(z)(i)(VI) of this section, the operator of a 7834
qualified distribution center also shall provide documentation, as 7835
the commissioner requires, for the commissioner to ascertain the 7836
Ohio delivery percentage. The commissioner, upon issuing the 7837
qualifying certificate, also shall certify the Ohio delivery 7838
percentage. The operator of the qualified distribution center may 7839
appeal the commissioner's certification of the Ohio delivery 7840
percentage in the same manner as an appeal is taken from the 7841
denial of a qualifying certificate under division (F)(2)(z)(i)(VI) 7842
of this section.7843

       Within thirty days after all appeals have been exhausted, the 7844
operator of the qualified distribution center shall notify the 7845
affected suppliers of qualified property that such suppliers are 7846
required to file, within sixty days after receiving notice from 7847
the operator of the qualified distribution center, amended reports 7848
for the impacted calendar quarter or quarters or calendar year, 7849
whichever the case may be. Any additional tax liability or tax 7850
overpayment shall be subject to interest but shall not be subject 7851
to the imposition of any penalty so long as the amended returns 7852
are timely filed. The supplier of tangible personal property 7853
delivered to the qualified distribution center shall include in 7854
its report of taxable gross receipts the receipts from the total 7855
sales of property delivered to the qualified distribution center 7856
for the calendar quarter or calendar year, whichever the case may 7857
be, multiplied by the Ohio delivery percentage for the qualifying 7858
year. Nothing in division (F)(2)(z)(iii) of this section shall be 7859
construed as imposing liability on the operator of a qualified 7860
distribution center for the tax imposed by this chapter arising 7861
from any change to the Ohio delivery percentage.7862

       (iv) In the case where the distribution center is new and not 7863
open for the entire qualifying period, the operator shall make a 7864
good faith estimate of an Ohio delivery percentage for use by 7865
suppliers in their reports of taxable gross receipts for the 7866
remainder of the qualifying period. The operator of the facility 7867
shall disclose to the suppliers that such Ohio delivery percentage 7868
is an estimate and is subject to recalculation. By the due date of 7869
the next application for a qualifying certificate, the operator 7870
shall determine the actual Ohio delivery percentage for the 7871
estimated qualifying period and proceed as provided in division 7872
(F)(2)(z)(iii) of this section with respect to the calculation and 7873
recalculation of the Ohio delivery percentage. The supplier is 7874
required to file, within sixty days after receiving notice from 7875
the operator of the qualified distribution center, amended reports 7876
for the impacted calendar quarter or quarters or calendar year, 7877
whichever the case may be. Any additional tax liability or tax 7878
overpayment shall be subject to interest but shall not be subject 7879
to the imposition of any penalty so long as the amended returns 7880
are timely filed.7881

       (v) Qualifying certificates and Ohio delivery percentages 7882
issued by the commissioner shall be open to public inspection and 7883
shall be timely published by the commissioner. A supplier relying 7884
in good faith on a certificate issued under this division shall 7885
not be subject to tax on the qualifying distribution center 7886
receipts under division (F)(2)(z) of this section. A person 7887
receiving a qualifying certificate is responsible for paying the 7888
tax, interest, and penalty upon amounts claimed as qualifying 7889
distribution center receipts that would not otherwise have been 7890
owed by the supplier if the qualifying certificate were available 7891
when it is later determined that the qualifying certificate should 7892
not have been issued because the statutory requirements were in 7893
fact not met.7894

       (vi) The annual fee for a qualifying certificate shall be one 7895
hundred thousand dollars for each qualified distribution center. 7896
If a qualifying certificate is not issued, the annual fee is 7897
subject to refund after the exhaustion of all appeals provided for 7898
in division (F)(2)(z)(i)(VI) of this section. The fee imposed 7899
under this division may be assessed in the same manner as the tax 7900
imposed under this chapter. The first one hundred thousand dollars 7901
of the annual application fees collected each calendar year shall 7902
be credited to the commercial activity tax administrativerevenue 7903
enhancement fund. The remainder of the annual application fees 7904
collected shall be distributed in the same manner required under 7905
section 5751.20 of the Revised Code.7906

       (vii) The tax commissioner may require that adequate security 7907
be posted by the operator of the distribution center on appeal 7908
when the commissioner disagrees that the applicant has met the 7909
minimum thresholds for a qualified distribution center as set 7910
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this 7911
section.7912

       (aa) Receipts of an employer from payroll deductions relating 7913
to the reimbursement of the employer for advancing moneys to an 7914
unrelated third party on an employee's behalf;7915

        (bb) Cash discounts allowed and taken;7916

       (cc) Returns and allowances;7917

       (dd) Bad debts from receipts on the basis of which the tax 7918
imposed by this chapter was paid in a prior quarterly tax payment 7919
period. For the purpose of this division, "bad debts" means any 7920
debts that have become worthless or uncollectible between the 7921
preceding and current quarterly tax payment periods, have been 7922
uncollected for at least six months, and that may be claimed as a 7923
deduction under section 166 of the Internal Revenue Code and the 7924
regulations adopted under that section, or that could be claimed 7925
as such if the taxpayer kept its accounts on the accrual basis. 7926
"Bad debts" does not include repossessed property, uncollectible 7927
amounts on property that remains in the possession of the taxpayer 7928
until the full purchase price is paid, or expenses in attempting 7929
to collect any account receivable or for any portion of the debt 7930
recovered;7931

       (ee) Any amount realized from the sale of an account 7932
receivable to the extent the receipts from the underlying 7933
transaction giving rise to the account receivable were included in 7934
the gross receipts of the taxpayer;7935

       (ff) Any receipts directly attributed to providing public 7936
services pursuant to sections 126.60 to 126.605 of the Revised 7937
Code, or any receipts directly attributed to a transfer agreement 7938
or to the enterprise transferred under that agreement under 7939
section 4313.02 of the Revised Code.7940

       (gg) Any receipts for which the tax imposed by this chapter 7941
is prohibited by the Constitution or laws of the United States or 7942
the Constitution of Ohio.7943

       (hh)(i) As used in this division:7944

       (I) "Qualified uranium receipts" means receipts from the 7945
sale, exchange, lease, loan, production, processing, or other 7946
disposition of uranium within a uranium enrichment zone certified 7947
by the tax commissioner under division (F)(2)(hh)(ii)7948
(F)(2)(gg)(ii) of this section. "Qualified uranium receipts" does 7949
not include any receipts with a situs in this state outside a 7950
uranium enrichment zone certified by the tax commissioner under 7951
division (F)(2)(hh)(ii)(F)(2)(gg)(ii) of this section.7952

       (II) "Uranium enrichment zone" means all real property that 7953
is part of a uranium enrichment facility licensed by the United 7954
States nuclear regulatory commission and that was or is owned or 7955
controlled by the United States department of energy or its 7956
successor.7957

       (ii) Any person that owns, leases, or operates real or 7958
tangible personal property constituting or located within a 7959
uranium enrichment zone may apply to the tax commissioner to have 7960
the uranium enrichment zone certified for the purpose of excluding 7961
qualified uranium receipts under division (F)(2)(hh)(F)(2)(gg) of 7962
this section. The application shall include such information that 7963
the tax commissioner prescribes. Within sixty days after receiving 7964
the application, the tax commissioner shall certify the zone for 7965
that purpose if the commissioner determines that the property 7966
qualifies as a uranium enrichment zone as defined in division 7967
(F)(2)(hh)(F)(2)(gg) of this section, or, if the tax commissioner 7968
determines that the property does not qualify, the commissioner 7969
shall deny the application or request additional information from 7970
the applicant. If the tax commissioner denies an application, the 7971
commissioner shall state the reasons for the denial. The applicant 7972
may appeal the denial of an application to the board of tax 7973
appeals pursuant to section 5717.02 of the Revised Code. If the 7974
applicant files a timely appeal, the tax commissioner shall 7975
conditionally certify the applicant's property. The conditional 7976
certification shall expire when all of the applicant's appeals are 7977
exhausted. Until final resolution of the appeal, the applicant 7978
shall retain the applicant's records in accordance with section 7979
5751.12 of the Revised Code, notwithstanding any time limit on the 7980
preservation of records under that section.7981

       (ii)(hh) Amounts realized by licensed motor fuel dealers or 7982
licensed permissive motor fuel dealers from the exchange of 7983
petroleum products, including motor fuel, between such dealers, 7984
provided that delivery of the petroleum products occurs at a 7985
refinery, terminal, pipeline, or marine vessel and that the 7986
exchanging dealers agree neither dealer shall require monetary 7987
compensation from the other for the value of the exchanged 7988
petroleum products other than such compensation for differences in 7989
product location or grade. Division (F)(2)(ii)(F)(2)(hh) of this 7990
section does not apply to amounts realized as a result of 7991
differences in location or grade of exchanged petroleum products 7992
or from handling, lubricity, dye, or other additive injections 7993
fees, pipeline security fees, or similar fees. As used in this 7994
division, "motor fuel," "licensed motor fuel dealer," "licensed 7995
permissive motor fuel dealer," and "terminal" have the same 7996
meanings as in section 5735.01 of the Revised Code.7997

       (hh)(ii) In the case of amounts collected by a licensed 7998
casino operator from casino gaming, amounts in excess of the 7999
casino operator's gross casino revenue. In this division, "casino 8000
operator" and "casino gaming" have the meanings defined in section 8001
3772.01 of the Revised Code, and "gross casino revenue" has the 8002
meaning defined in section 5753.01 of the Revised Code.8003

       (jj) Any receipts for which the tax imposed by this chapter 8004
is prohibited by the constitution or laws of the United States or 8005
the constitution of this state.8006

        (3) In the case of a taxpayer when acting as a real estate 8007
broker, "gross receipts" includes only the portion of any fee for 8008
the service of a real estate broker, or service of a real estate 8009
salesperson associated with that broker, that is retained by the 8010
broker and not paid to an associated real estate salesperson or 8011
another real estate broker. For the purposes of this division, 8012
"real estate broker" and "real estate salesperson" have the same 8013
meanings as in section 4735.01 of the Revised Code.8014

       (4) A taxpayer's method of accounting for gross receipts for 8015
a tax period shall be the same as the taxpayer's method of 8016
accounting for federal income tax purposes for the taxpayer's 8017
federal taxable year that includes the tax period. If a taxpayer's 8018
method of accounting for federal income tax purposes changes, its 8019
method of accounting for gross receipts under this chapter shall 8020
be changed accordingly.8021

       (G) "Taxable gross receipts" means gross receipts sitused to 8022
this state under section 5751.033 of the Revised Code.8023

       (H) A person has "substantial nexus with this state" if any 8024
of the following applies. The person:8025

       (1) Owns or uses a part or all of its capital in this state;8026

       (2) Holds a certificate of compliance with the laws of this 8027
state authorizing the person to do business in this state;8028

       (3) Has bright-line presence in this state;8029

       (4) Otherwise has nexus with this state to an extent that the 8030
person can be required to remit the tax imposed under this chapter 8031
under the Constitution of the United States.8032

       (I) A person has "bright-line presence" in this state for a 8033
reporting period and for the remaining portion of the calendar 8034
year if any of the following applies. The person:8035

       (1) Has at any time during the calendar year property in this 8036
state with an aggregate value of at least fifty thousand dollars. 8037
For the purpose of division (I)(1) of this section, owned property 8038
is valued at original cost and rented property is valued at eight 8039
times the net annual rental charge.8040

       (2) Has during the calendar year payroll in this state of at 8041
least fifty thousand dollars. Payroll in this state includes all 8042
of the following:8043

       (a) Any amount subject to withholding by the person under 8044
section 5747.06 of the Revised Code;8045

       (b) Any other amount the person pays as compensation to an 8046
individual under the supervision or control of the person for work 8047
done in this state; and8048

       (c) Any amount the person pays for services performed in this 8049
state on its behalf by another.8050

       (3) Has during the calendar year taxable gross receipts of at 8051
least five hundred thousand dollars.8052

       (4) Has at any time during the calendar year within this 8053
state at least twenty-five per cent of the person's total 8054
property, total payroll, or total gross receipts.8055

       (5) Is domiciled in this state as an individual or for 8056
corporate, commercial, or other business purposes.8057

       (J) "Tangible personal property" has the same meaning as in 8058
section 5739.01 of the Revised Code.8059

       (K) "Internal Revenue Code" means the Internal Revenue Code 8060
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in 8061
this chapter that is not otherwise defined has the same meaning as 8062
when used in a comparable context in the laws of the United States 8063
relating to federal income taxes unless a different meaning is 8064
clearly required. Any reference in this chapter to the Internal 8065
Revenue Code includes other laws of the United States relating to 8066
federal income taxes.8067

       (L) "Calendar quarter" means a three-month period ending on 8068
the thirty-first day of March, the thirtieth day of June, the 8069
thirtieth day of September, or the thirty-first day of December.8070

       (M) "Tax period" means the calendar quarter or calendar year 8071
on the basis of which a taxpayer is required to pay the tax 8072
imposed under this chapter.8073

       (N) "Calendar year taxpayer" means a taxpayer for which the 8074
tax period is a calendar year.8075

       (O) "Calendar quarter taxpayer" means a taxpayer for which 8076
the tax period is a calendar quarter.8077

       (P) "Agent" means a person authorized by another person to 8078
act on its behalf to undertake a transaction for the other, 8079
including any of the following:8080

        (1) A person receiving a fee to sell financial instruments;8081

        (2) A person retaining only a commission from a transaction 8082
with the other proceeds from the transaction being remitted to 8083
another person;8084

        (3) A person issuing licenses and permits under section 8085
1533.13 of the Revised Code;8086

        (4) A lottery sales agent holding a valid license issued 8087
under section 3770.05 of the Revised Code;8088

        (5) A person acting as an agent of the division of liquor 8089
control under section 4301.17 of the Revised Code.8090

       (Q) "Received" includes amounts accrued under the accrual 8091
method of accounting.8092

       (R) "Reporting person" means a person in a consolidated 8093
elected taxpayer or combined taxpayer group that is designated by 8094
that group to legally bind the group for all filings and tax 8095
liabilities and to receive all legal notices with respect to 8096
matters under this chapter, or, for the purposes of section 8097
5751.04 of the Revised Code, a separate taxpayer that is not a 8098
member of such a group.8099

       Sec. 5751.011.  (A) A group of two or more persons may elect 8100
to be a consolidated elected taxpayer for the purposes of this 8101
chapter if the group satisfies all of the following requirements:8102

       (1) The group elects to include all persons, including 8103
persons enumerated in divisions (E)(2) to (10) of section 5751.01 8104
of the Revised Code, having at least eighty per cent, or having at 8105
least fifty per cent, of the value of their ownership interests 8106
owned or controlled, directly or constructively through related 8107
interests, by common owners during all or any portion of the tax 8108
period, together with the common owners. 8109

       A group making its initial election on the basis of the 8110
eighty per cent ownership test may change its election so that its 8111
consolidated elected taxpayer group is formed on the basis of the 8112
fifty per cent ownership test if all of the following are 8113
satisfied:8114

        (a) When the initial election was made, the group did not 8115
have any persons satisfying the fifty per cent ownership test;8116

       (b) One or more of the persons in the initial group 8117
subsequently acquires ownership interests in a person such that 8118
the fifty per cent ownership test is satisfied, the eighty per 8119
cent ownership test is not satisfied, and the acquired person 8120
would be required to be included in a combined taxpayer group 8121
under section 5751.012 of the Revised Code;8122

       (c) The group requests the change in a written request8123
writing to the tax commissioner on or before the due date for 8124
filing the first return due under section 5751.051 of the Revised 8125
Code after the date of the acquisitionas required by division (D) 8126
of this section;8127

       (d) The group has not previously changed its election.8128

       At the election of the group, all entities that are not 8129
incorporated or formed under the laws of a state or of the United 8130
States and that meet the consolidated elected ownership test shall 8131
either be included in the group or all shall be excluded from the 8132
group. If, at the time of registration, the group does not include 8133
any such entities that meet the consolidated elected ownership 8134
test, the group shall elect to either include or exclude the newly 8135
acquired entities before the due date of the first return due 8136
after the date of the acquisition.8137

       Each group shall notify the tax commissioner of the foregoing 8138
elections before the due date of the return for the period in 8139
which the election becomes binding. If fifty per cent of the value 8140
of a person's ownership interests is owned or controlled by each 8141
of two consolidated elected taxpayer groups formed under the fifty 8142
per cent ownership or control test, that person is a member of 8143
each group for the purposes of this section, and each group shall 8144
include in the group's taxable gross receipts fifty per cent of 8145
that person's taxable gross receipts. Otherwise, all of that 8146
person's taxable gross receipts shall be included in the taxable 8147
gross receipts of the consolidated elected taxpayer group of which 8148
the person is a member. In no event shall the ownership or control 8149
of fifty per cent of the value of a person's ownership interests 8150
by two otherwise unrelated groups form the basis for consolidating 8151
the groups into a single consolidated elected taxpayer group or 8152
permit any exclusion under division (C) of this section of taxable 8153
gross receipts between members of the two groups. Division (A)(3) 8154
of this section applies with respect to the elections described in 8155
this division.8156

       (2) The group makes the election to be treated as a 8157
consolidated elected taxpayer in the manner prescribed under 8158
division (D) of this section.8159

       (3) Subject to review and audit by the tax commissioner, the 8160
group agrees that all of the following apply:8161

       (a) The group shall file reports as a single taxpayer for at 8162
least the next eight calendar quarters following the election so 8163
long as at least two or more of the members of the group meet the 8164
requirements of division (A)(1) of this section.8165

       (b) Before the expiration of the eighth such calendar 8166
quarter, the group shall notify the commissioner if it elects to 8167
cancel its designation as a consolidated elected taxpayer. If the 8168
group does not so notify the tax commissioner, the election 8169
remains in effect for another eight calendar quarters.8170

       (c) If, at any time during any of those eight calendar 8171
quarters following the election, a former member of the group no 8172
longer meets the requirements under division (A)(1) of this 8173
section, that member shall report and pay the tax imposed under 8174
this chapter separately, as a member of a combined taxpayer, or, 8175
if the former member satisfies such requirements with respect to 8176
another consolidated elected group, as a member of that 8177
consolidated elected group.8178

       (d) The group agrees to the application of division (B) of 8179
this section.8180

       (B) A group of persons making the election under this section 8181
shall report and pay tax on all of the group's taxable gross 8182
receipts even if substantial nexus with this state does not exist 8183
for one or more persons in the group.8184

       (C)(1)(a) Members of a consolidated elected taxpayer group 8185
shall exclude gross receipts among persons included in the 8186
consolidated elected taxpayer group.8187

       (b) Subject to divisions (C)(1)(c) and (C)(2) of this 8188
section, nothing in this section shall have the effect of 8189
requiring a consolidated elected taxpayer group to include gross 8190
receipts received by a person enumerated in divisions (E)(2) to 8191
(10) of section 5751.01 of the Revised Code if that person is a 8192
member of the group pursuant to the elections made by the group 8193
under division (A)(1) of this section.8194

        (c)(i) As used in division (C)(1)(c) of this section, "dealer 8195
transfer" means a transfer of property that satisfies both of the 8196
following: (I) the property is directly transferred by any means 8197
from one member of the group to another member of the group that 8198
is a dealer in intangibles but is not a qualifying dealer as 8199
defined in section 5707.031 of the Revised Code; and (II) the 8200
property is subsequently delivered by the dealer in intangibles to 8201
a person that is not a member of the group.8202

        (ii) In the event of a dealer transfer, a consolidated 8203
elected taxpayer group shall not exclude, under division (C) of 8204
this section, gross receipts from the transfer described in 8205
division (C)(1)(c)(i)(I) of this section.8206

       (2) Gross receipts related to the sale or transmission of 8207
electricity through the use of an intermediary regional 8208
transmission organization approved by the federal energy 8209
regulatory commission shall be excluded from taxable gross 8210
receipts under division (C)(1) of this section if all other 8211
requirements of that division are met, even if the receipts are 8212
from and to the same member of the group.8213

       (D) To make the election to be a consolidated elected 8214
taxpayer, a group of persons shall notify the tax commissioner of 8215
the election in the manner prescribed by the commissioner and pay 8216
the commissioner a registration fee equal to the lesser of two 8217
hundred dollars or twenty dollars for each person in the group. No 8218
additional fee shall be imposed for the addition of new members to 8219
the group once the group has remitted a fee in the amount of two 8220
hundred dollars. The electionon a form prescribed by the 8221
commissioner for that purpose, which shall be signed by one or 8222
more individuals with authority, separately or together, to make a 8223
binding election on behalf of all persons in the group. Elections 8224
under division (A) of this section shall be made and the fee paid8225
on or before the beginning ofdue date for filing the first 8226
calendar quarter to whichreturn due after the election applies. 8227
The fee shall be collected and used in the same manner as provided 8228
in section 5751.04 of the Revised Code.8229

       The election shall be made on a form prescribed by the tax 8230
commissioner for that purpose and shall be signed by one or more 8231
individuals with authority, separately or together, to make a 8232
binding election on behalf of all persons in the group.8233

       Any person acquired or formed after the filing of the 8234
registration shall be included in the group if the person meets 8235
the requirements of division (A)(1) of this section, and the group 8236
shall notify the tax commissioner of any additions to the group 8237
with the next tax return it files withon a form prescribed by the 8238
commissioner for such purpose.8239

       Sec. 5751.012.  (A) All persons, other than persons 8240
enumerated in divisions (E)(2) to (10) of section 5751.01 of the 8241
Revised Code, having more than fifty per cent of the value of 8242
their ownership interest owned or controlled, directly or 8243
constructively through related interests, by common owners during 8244
all or any portion of the tax period, together with the common 8245
owners, shall be members of a combined taxpayer group if those 8246
persons are not members of a consolidated elected taxpayer group8247
pursuant to an election under section 5751.011 of the Revised 8248
Code.8249

       (B) A combined taxpayer group shall register, file returns, 8250
and pay taxes under this chapter as a single taxpayer.8251

       (C) A combined taxpayerand shall neither exclude taxable 8252
gross receipts between its members nor from others that are not 8253
members.8254

       (D) A combined taxpayer shall pay to the tax commissioner a 8255
registration fee equal to the lesser of two hundred dollars or 8256
twenty dollars for each person in the group. No additional fee 8257
shall be imposed for the addition of new members to the group once 8258
the group has remitted a fee in the amount of two hundred dollars. 8259
The fee shall be timely paid before the later of the beginning of 8260
the first calendar quarter or November 15, 2005. The fee shall be 8261
collected and used in the same manner as provided in section 8262
5751.04 of the Revised Code.8263

       (C) Any person acquired or formed after the filing of the 8264
registration shall be included in the group if the person meets 8265
the requirements of division (A) of this section, and the group 8266
must notify the tax commissioner of any additions with the next 8267
quarterly tax return it files withto the group on a form 8268
prescribed by the commissioner for such purpose.8269

       Sec. 5751.03.  (A) Except as provided in divisionsdivision8270
(B) and (D) of this section and in sectionssection 5751.031 and 8271
5751.032 of the Revised Code, the tax levied under this section 8272
for each tax period shall be the product of two and six-tenths 8273
mills per dollar times the remainder of the taxpayer's taxable 8274
gross receipts for the tax period after subtracting the exclusion 8275
amount provided for in division (C) of this section.8276

       (B) Notwithstanding division (C) of this section, the tax on 8277
the first one million dollars in taxable gross receipts each 8278
calendar year shall be one hundred fifty dollars. For calendar 8279
year 2006, the tax imposed under this division shall be paid not 8280
later than May 10, 2006, by both calendar year taxpayers and 8281
calendar quarter taxpayers. For calendar years 2007, 2008, and 8282
2009, the tax imposed under this division shall be paid with the 8283
fourth-quarter tax return or annual tax return for the prior 8284
calendar year by both calendar year taxpayers and calendar quarter 8285
taxpayers. For calendar years 2010 and thereafter, theThe tax 8286
imposed under this division shall be paid not later than the tenth 8287
day of May of each year along with the first quarter or annual tax 8288
return, as applicable.8289

       (C)(1) Each calendar quarter taxpayer may exclude the first 8290
two hundred fifty thousandone million dollars of taxable gross 8291
receipts for a calendar quarteryear. Calendar quarter taxpayers 8292
may apply the full exclusion amount to the first calendar quarter 8293
return the taxpayer files that calendar year and may carry forward 8294
and apply any unused exclusion amount to the three subsequent 8295
calendar quarters within that same calendar year. Each calendar 8296
year taxpayer may exclude the first one million dollars of taxable 8297
gross receipts for a calendar year.8298

       (2) A taxpayer switching from a calendar year tax period to a 8299
calendar quarter tax period may, for the first quarter of the 8300
change, apply the prior calendar quarterfull one-million-dollar8301
exclusion amountsamount to the first calendar quarter return the 8302
taxpayer files that calendar year. Such taxpayers may carry 8303
forward and apply any unused exclusion amount to subsequent 8304
calendar quarters within that same calendar year. The tax rate 8305
shall be based on the rate imposed that calendar quarter when the 8306
taxpayer switches from a calendar year to a calendar quarter tax 8307
period.8308

       (D) There is hereby allowed a credit against the tax imposed 8309
under this chapter for each of the following calendar years if a 8310
transfer was made in the preceding calendar year from the general 8311
revenue fund to the commercial activity tax refund fund under 8312
division (D) of section 5751.032 of the Revised Code: calendar 8313
years 2008, 2010, and 2012. The credit is allowed for taxpayers 8314
that paid in full the tax imposed under this chapter for the 8315
calendar year in which the transfer was made. The amount of a 8316
taxpayer's credit equals the amount computed under division (D) of 8317
section 5751.032 of the Revised Code(3) A taxpayer shall not 8318
exclude more than one million dollars pursuant to division (C) of 8319
this section in a calendar year.8320

       Sec. 5751.04. (A) As used in this section, "person" includes 8321
a reporting person.8322

       (B) Not later than thirty days after a person first has more 8323
than one hundred fifty thousand dollars in taxable gross receipts 8324
in a calendar year, each person subject to this chapter shall 8325
register with the tax commissioner on the form prescribed by the 8326
commissioner. The form shall include the following:8327

       (1) The person's name;8328

       (2) If applicable, the name of the state or country under the 8329
laws of which the person is incorporated;8330

       (3) If applicable, the location of a person's principal 8331
office and the name and address of the officer or agent of the 8332
corporation in charge of the business;8333

       (4) If applicable, the names of the person's president, 8334
secretary, treasurer, and statutory agent designated pursuant to 8335
section 1703.041 of the Revised Code, with the post office address 8336
of each;8337

       (5)The person's primary address;8338

       (3) The kind of business in which the person is engaged, 8339
including applicable business or industry codes for the person;8340

       (6) If required by the tax commissioner, the date of the 8341
beginning of the person's annual accounting period that includes 8342
the first day of January of the taxable calendar year;8343

       (7) If the person is not a corporation or a sole proprietor, 8344
the names of the person's owners and officers, if required by the 8345
tax commissioner;8346

       (8)(4) The person's federal employer identification number or 8347
numbers or, if those are not applicable, the person's social 8348
security number or equivalent, as applicable;8349

       (9)(5) The person's organizational type;8350

       (6) The date the person is first subject to the tax imposed 8351
by this chapter;8352

       (7) The names, addresses, federal identification numbers or 8353
social security numbers or equivalents, and organization types of 8354
each member that is commonly owned in a consolidated elected 8355
taxpayer or combined taxpayer group;8356

       (8) All other information that the commissioner requires to 8357
administer and enforce this chapter.8358

       (C) Except as otherwise provided in this division, each 8359
person registering with the tax commissioner as required by 8360
division (B) of this section shall pay a registration fee. The fee 8361
shall be in the amount of fifteen dollars if a person registers 8362
electronically and twenty dollars if a person does not register 8363
electronically. The registration fee shall be paid in the manner 8364
prescribed by the tax commissioner at the same time the 8365
registration is due if a person is subject to the tax imposed 8366
under this chapter before January 1, 2006. If a person first 8367
becomes subject to the tax after that date, the registration fee 8368
is payable with the first tax period return the person is required 8369
to file as prescribed by section 5751.051 of the Revised Code. If8370
(1) To help defray the costs of administering the tax imposed by 8371
this chapter, the commissioner shall collect a registration fee in 8372
the amount of twenty dollars per person up to a maximum of two 8373
hundred dollars per consolidated elected taxpayer or combined 8374
taxpayer group. The commissioner shall systematically deduct and 8375
collect the fee from the first tax payment each taxpayer makes 8376
after registering or adding members, as applicable. No separate 8377
registration fee may be collected in addition to the tax imposed 8378
by this chapter.8379

       (2) If a person does not register within the time prescribed 8380
by this section, an additional fee is imposed in the amount of one 8381
hundred dollars per month or part thereof that the fee is 8382
outstanding, not to exceed one thousand dollars. The tax 8383
commissioner may abate the additional fee. The fee imposed under 8384
this division may be assessed in the same manner as the tax 8385
imposed under this chapter. Proceeds8386

       (D) Proceeds from the fee imposed under division (C) of this 8387
section shall be credited to the commercial activity tax 8388
administrativerevenue enhancement fund, which is hereby created 8389
in the state treasury for the commissioner to use in implementing 8390
and administering the tax imposed under this chapter.8391

       Registration fees paid under this section, excluding any 8392
additional fee imposed for a person's failure to timely register, 8393
shall be credited against the first payment of tax payable under 8394
section 5751.03 of the Revised Code.8395

       (D)(E) If a person that has registered under this section is 8396
no longer a taxpayer subject to this chapter, including no longer 8397
being a taxpayer because of the application of division (E)(1) of 8398
section 5751.01 of the Revised Code, the person shall notify the 8399
commissioner that the person's registration should be cancelled.8400

       (E)(F) With respect to registrations received by the 8401
commissioner before the effective date of the amendment of this 8402
section by the main operating appropriations act of the 128th 8403
general assemblyOctober 16, 2009, the taxpayer listed as the 8404
primary taxpayer on the registration shall be the reporting person 8405
until the taxpayer notifies the commissioner otherwise.8406

       Sec. 5751.05.  (A) If a person subject to this chapter 8407
anticipates that the person's taxable gross receipts will be more 8408
than one million dollars in a calendar year, the person shall 8409
notify the tax commissioner on the person's initial registration 8410
form and file on a quarterly basis as a calendar quarter taxpayer. 8411
Any taxpayer with taxable gross receipts of one million dollars or 8412
less shall register as a calendar year taxpayer and shall file 8413
annually.8414

       (B) Any person that is a calendar year taxpayer under 8415
division (A) of this section shall become a calendar quarter 8416
taxpayer in the subsequent calendar year if the person's taxable 8417
gross receipts for the prior calendar year are more than one 8418
million dollars, and shall remain a calendar quarter taxpayer 8419
until the person notifies the tax commissioner, and receives 8420
approval in writing from the tax commissioner, to switch back to 8421
being a calendar year taxpayer. Nothing in this division prohibits 8422
a person that has elected to be a calendar year taxpayer from 8423
notifying the tax commissioner, using the procedures prescribed by 8424
the commissioner, that it is switching back to being a calendar 8425
quarter taxpayer.8426

       (C) Any taxpayer that is not a calendar quarter taxpayer 8427
pursuant to this section is a calendar year taxpayer. The 8428
commissioner may grant written approval for a calendar quarter 8429
taxpayer to use an alternative reporting schedule or estimate the 8430
amount of tax due for a calendar quarter if the taxpayer 8431
demonstrates to the commissioner the need for such a deviation. 8432
The commissioner may adopt a rule to apply division (C) of this 8433
section to a group of taxpayers without the taxpayers having to 8434
receive written approval from the commissioner.8435

       Sec. 5751.051.  (A)(1) Not later than the tenth day of the 8436
second month after the end of each calendar quarter, every 8437
taxpayer other than a calendar year taxpayer shall file with the 8438
tax commissioner a tax return in such form as the commissioner 8439
prescribes. The return shall include, but is not limited to, the 8440
amount of the taxpayer's taxable gross receipts for the calendar 8441
quarter and shall indicate the amount of tax due under section 8442
5751.03 of the Revised Code for the calendar quarter.8443

       (2)(a) Subject to division (C) of section 5751.05 of the 8444
Revised Code, a calendar quarter taxpayer shall report the taxable 8445
gross receipts for that calendar quarter.8446

       (b) With respect to taxable gross receipts incorrectly 8447
reported in a calendar quarter that has a lower tax rate, the tax 8448
shall be computed at the tax rate in effect for the quarterly 8449
return in which such receipts should have been reported. Nothing 8450
in division (A)(2)(b) of this section prohibits a taxpayer from 8451
filing an application for refund under section 5751.08 of the 8452
Revised Code with regard to the incorrect reporting of taxable 8453
gross receipts discovered after filing the annual return described 8454
in division (A)(3) of this section.8455

       A tax return shall not be deemed to be an incorrect reporting 8456
of taxable gross receipts for the purposes of division (A)(2)(b) 8457
of this section if the return reflects between ninety-five and one 8458
hundred five per cent of the actual taxable gross receipts for the 8459
calendar quarter.8460

       (3) For the purposes of division (A)(2)(b) of this section, 8461
the tax return filed for the fourth calendar quarter of a calendar 8462
year is the annual return for the privilege tax imposed by this 8463
chapter. Such return shall report any additional taxable gross 8464
receipts not previously reported in the calendar year and shall 8465
adjust for any over-reported taxable gross receipts in the 8466
calendar year. If the taxpayer ceases to be a taxpayer before the 8467
end of the calendar year, the last return the taxpayer is required 8468
to file shall be the annual return for the taxpayer and the 8469
taxpayer shall report any additional taxable gross receipts not 8470
previously reported in the calendar year and shall adjust for any 8471
over-reported taxable gross receipts in the calendar year.8472

       (4) Because the tax imposed by this chapter is a privilege 8473
tax, the tax rate with respect to taxable gross receipts for a 8474
calendar quarter is not fixed until the end of the measurement 8475
period for each calendar quarter. Subject to division (A)(2)(b) of 8476
this section, the total amount of taxable gross receipts reported 8477
for a given calendar quarter shall be subject to the tax rate in 8478
effect in that quarter.8479

       (5) Not later than the tenth day of May following the end of 8480
each calendar year, every calendar year taxpayer shall file with 8481
the tax commissioner a tax return in such form as the commissioner 8482
prescribes. The return shall include, but is not limited to, the 8483
amount of the taxpayer's taxable gross receipts for the calendar 8484
year and shall indicate the amount of tax due under section 8485
5751.03 of the Revised Code for the calendar year.8486

       (B)(1) A person that first becomes subject to the tax imposed 8487
under this chapter shall pay the minimum tax imposed under 8488
division (B) of section 5751.03 of the Revised Code along with the 8489
registration fee imposed under this section, if applicable, on or 8490
before the day the return is required to be filed for that quarter 8491
under division (A)(1) of this section, regardless of whether the 8492
person elects to beregisters as a calendar year taxpayer under 8493
section 5751.05 of the Revised Code.8494

       (2) The amount of the minimum tax for a person subject to 8495
division (B)(1) of this section shall be reduced to seventy-five 8496
dollars if the registration is timely filed after the first day of 8497
May and before the first day of January of the following calendar 8498
year.8499

       Sec. 5751.12.  The tax commissioner may prescribe 8500
requirements for the keeping of records and other pertinent 8501
documents, the filing of copies of federal income tax returns and 8502
determinations, and computations reconciling federal income tax 8503
returns with the returns and reports required by section 5751.058504
5751.051 of the Revised Code. The commissioner may require any 8505
person, by rule or notice served on that person, to keep those 8506
records that the commissioner considers necessary to show whether, 8507
and the extent to which, a person is subject to this chapter. 8508
Those records and other documents shall be open during business 8509
hours to the inspection of the commissioner, and shall be 8510
preserved for a period of four years unless the commissioner, in 8511
writing, consents to their destruction within that period, or by 8512
order requires that they be kept longer. If such records are 8513
normally kept by the person electronically, the person shall 8514
provide such records to the commissioner electronically at the 8515
commissioner's request.8516

       Any information required by the tax commissioner under this 8517
chapter is confidential as provided for in section 5703.21 of the 8518
Revised Code. However, the commissioner shall make public an 8519
electronic list of all actively registered persons required to 8520
remit the tax under this chapter, including legal names, trade 8521
names, addresses, and account numbers. In addition, such list 8522
shall include all persons that cancelled their registration at any 8523
time during the preceding four calendar years, including the 8524
effective date of the registration was cancelledcancellation.8525

       Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of 8526
the Revised Code:8527

       (1) "School district," "joint vocational school district," 8528
"local taxing unit," "recognized valuation," "fixed-rate levy," 8529
and "fixed-sum levy" have the same meanings as used in section 8530
5727.84 of the Revised Code.8531

       (2) "State education aid" for a school district means the 8532
following:8533

       (a) For fiscal years prior to fiscal year 2010, the sum of 8534
state aid amounts computed for the district under the following 8535
provisions, as they existed for the applicable fiscal year: 8536
division (A) of section 3317.022 of the Revised Code, including 8537
the amounts calculated under sections 3317.029 and 3317.0217 of 8538
the Revised Code; divisions (C)(1), (C)(4), (D), (E), and (F) of 8539
section 3317.022; divisions (B), (C), and (D) of section 3317.023; 8540
divisions (L) and (N) of section 3317.024; section 3317.0216; and 8541
any unit payments for gifted student services paid under sections 8542
3317.05, 3317.052, and 3317.053 of the Revised Code; except that, 8543
for fiscal years 2008 and 2009, the amount computed for the 8544
district under Section 269.20.80 of H.B. 119 of the 127th general 8545
assembly and as that section subsequently may be amended shall be 8546
substituted for the amount computed under division (D) of section 8547
3317.022 of the Revised Code, and the amount computed under 8548
Section 269.30.80 of H.B. 119 of the 127th general assembly and as 8549
that section subsequently may be amended shall be included.8550

       (b) For fiscal years 2010 and 2011, the sum of the amounts 8551
computed under former sections 3306.052, 3306.12, 3306.13, 8552
3306.19, 3306.191, and 3306.192 of the Revised Code;8553

       (c) For fiscal years 2012 and 2013, the amount paid in 8554
accordance with the sectionSection 267.30.50 of H.B. 153 of the 8555
129th general assembly entitled "FUNDING FOR CITY, EXEMPTED 8556
VILLAGE, AND LOCAL SCHOOL DISTRICTS."8557

       (3) "State education aid" for a joint vocational school 8558
district means the following:8559

       (a) For fiscal years prior to fiscal year 2010, the sum of 8560
the state aid computed for the district under division (N) of 8561
section 3317.024 and section 3317.16 of the Revised Code, except 8562
that, for fiscal years 2008 and 2009, the amount computed under 8563
Section 269.30.80 of H.B. 119 of the 127th general assembly and as 8564
that section subsequently may be amended shall be included.8565

       (b) For fiscal years 2010 and 2011, the amount paid in 8566
accordance with the sectionSection 265.30.50 of H.B. 1 of the 8567
128th general assembly entitled "FUNDING FOR JOINT VOCATIONAL 8568
SCHOOL DISTRICTS."8569

       (c) For fiscal years 2012 and 2013, the amount paid in 8570
accordance with the sectionSection 267.30.60 of H.B. 153 of the 8571
129th general assembly entitled "FUNDING FOR JOINT VOCATIONAL 8572
SCHOOL DISTRICTS."8573

        (4) "State education aid offset" means the amount determined 8574
for each school district or joint vocational school district under 8575
division (A)(1) of section 5751.21 of the Revised Code.8576

       (5) "Machinery and equipment property tax value loss" means 8577
the amount determined under division (C)(1) of this section.8578

       (6) "Inventory property tax value loss" means the amount 8579
determined under division (C)(2) of this section.8580

       (7) "Furniture and fixtures property tax value loss" means 8581
the amount determined under division (C)(3) of this section.8582

        (8) "Machinery and equipment fixed-rate levy loss" means the 8583
amount determined under division (D)(1) of this section.8584

       (9) "Inventory fixed-rate levy loss" means the amount 8585
determined under division (D)(2) of this section.8586

       (10) "Furniture and fixtures fixed-rate levy loss" means the 8587
amount determined under division (D)(3) of this section.8588

       (11) "Total fixed-rate levy loss" means the sum of the 8589
machinery and equipment fixed-rate levy loss, the inventory 8590
fixed-rate levy loss, the furniture and fixtures fixed-rate levy 8591
loss, and the telephone company fixed-rate levy loss.8592

       (12) "Fixed-sum levy loss" means the amount determined under 8593
division (E) of this section.8594

       (13) "Machinery and equipment" means personal property 8595
subject to the assessment rate specified in division (F) of 8596
section 5711.22 of the Revised Code.8597

       (14) "Inventory" means personal property subject to the 8598
assessment rate specified in division (E) of section 5711.22 of 8599
the Revised Code.8600

       (15) "Furniture and fixtures" means personal property subject 8601
to the assessment rate specified in division (G) of section 8602
5711.22 of the Revised Code.8603

       (16) "Qualifying levies" are levies in effect for tax year 8604
2004 or applicable to tax year 2005 or approved at an election 8605
conducted before September 1, 2005. For the purpose of determining 8606
the rate of a qualifying levy authorized by section 5705.212 or 8607
5705.213 of the Revised Code, the rate shall be the rate that 8608
would be in effect for tax year 2010.8609

       (17) "Telephone property" means tangible personal property of 8610
a telephone, telegraph, or interexchange telecommunications 8611
company subject to an assessment rate specified in section 8612
5727.111 of the Revised Code in tax year 2004.8613

       (18) "Telephone property tax value loss" means the amount 8614
determined under division (C)(4) of this section.8615

       (19) "Telephone property fixed-rate levy loss" means the 8616
amount determined under division (D)(4) of this section.8617

       (20) "Taxes charged and payable" means taxes charged and 8618
payable after the reduction required by section 319.301 of the 8619
Revised Code but before the reductions required by sections 8620
319.302 and 323.152 of the Revised Code.8621

       (21) "Median estate tax collections" means, in the case of a 8622
municipal corporation to which revenue from the taxes levied in 8623
Chapter 5731. of the Revised Code was distributed in each of 8624
calendar years 2006, 2007, 2008, and 2009, the median of those 8625
distributions. In the case of a municipal corporation to which no 8626
distributions were made in one or more of those years, "median 8627
estate tax collections" means zero. 8628

       (22) "Total resources," in the case of a school district, 8629
means the sum of the amounts in divisions (A)(22)(a) to (h) of 8630
this section less any reduction required under division (A)(32) or 8631
(33) of this section.8632

       (a) The state education aid for fiscal year 2010; 8633

       (b) The sum of the payments received by the school district 8634
in fiscal year 2010 for current expense levy losses pursuant to 8635
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of 8636
section 5751.21 of the Revised Code, excluding the portion of such 8637
payments attributable to levies for joint vocational school 8638
district purposes; 8639

       (c) The sum of fixed-sum levy loss payments received by the 8640
school district in fiscal year 2010 pursuant to division (E)(1) of 8641
section 5727.85 and division (E)(1) of section 5751.21 of the 8642
Revised Code for fixed-sum levies imposedcharged and payable for 8643
a purpose other than paying debt charges; 8644

       (d) Fifty per cent of the school district's taxes charged and 8645
payable against all property on the tax list of real and public 8646
utility property for current expense purposes for tax year 2008, 8647
including taxes charged and payable from emergency levies imposed8648
charged and payable under section 5709.194 of the Revised Code and 8649
excluding taxes levied for joint vocational school district 8650
purposes;8651

       (e) Fifty per cent of the school district's taxes charged and 8652
payable against all property on the tax list of real and public 8653
utility property for current expenses for tax year 2009, including 8654
taxes charged and payable from emergency levies and excluding 8655
taxes levied for joint vocational school district purposes;8656

       (f) The school district's taxes charged and payable against 8657
all property on the general tax list of personal property for 8658
current expenses for tax year 2009, including taxes charged and 8659
payable from emergency levies;8660

       (g) The amount certified for fiscal year 2010 under division 8661
(A)(2) of section 3317.08 of the Revised Code;8662

       (h) Distributions received during calendar year 2009 from 8663
taxes levied under section 718.09 of the Revised Code.8664

       (23) "Total resources," in the case of a joint vocational 8665
school district, means the sum of amounts in divisions (A)(23)(a) 8666
to (g) of this section less any reduction required under division 8667
(A)(32) of this section.8668

       (a) The state education aid for fiscal year 2010; 8669

       (b) The sum of the payments received by the joint vocational 8670
school district in fiscal year 2010 for current expense levy 8671
losses pursuant to division (C)(2) of section 5727.85 and 8672
divisions (C)(8) and (9) of section 5751.21 of the Revised Code; 8673

       (c) Fifty per cent of the joint vocational school district's 8674
taxes charged and payable against all property on the tax list of 8675
real and public utility property for current expense purposes for 8676
tax year 2008;8677

       (d) Fifty per cent of the joint vocational school district's 8678
taxes charged and payable against all property on the tax list of 8679
real and public utility property for current expenses for tax year 8680
2009;8681

       (e) Fifty per cent of a city, local, or exempted village 8682
school district's taxes charged and payable against all property 8683
on the tax list of real and public utility property for current 8684
expenses of the joint vocational school district for tax year 8685
2008;8686

       (f) Fifty per cent of a city, local, or exempted village 8687
school district's taxes charged and payable against all property 8688
on the tax list of real and public utility property for current 8689
expenses of the joint vocational school district for tax year 8690
2009;8691

       (g) The joint vocational school district's taxes charged and 8692
payable against all property on the general tax list of personal 8693
property for current expenses for tax year 2009.8694

       (24) "Total resources," in the case of county mental health 8695
and disability related functions, means the sum of the amounts in 8696
divisions (A)(24)(a) and (b) of this section less any reduction 8697
required under division (A)(32) of this section.8698

       (a) The sum of the payments received by the county for mental 8699
health and developmental disability related functions in calendar 8700
year 2010 under division (A)(1) of section 5727.86 and division8701
divisions (A)(1) and (2) of section 5751.22 of the Revised Code as 8702
they existed at that time;8703

       (b) With respect to taxes levied by the county for mental 8704
health and developmental disability related purposes, the taxes 8705
charged and payable for such purposes against all property on the 8706
tax list of real and public utility property for tax year 2009.8707

       (25) "Total resources," in the case of county senior services 8708
related functions, means the sum of the amounts in divisions 8709
(A)(25)(a) and (b) of this section less any reduction required 8710
under division (A)(32) of this section. 8711

       (a) The sum of the payments received by the county for senior 8712
services related functions in calendar year 2010 under division 8713
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section 8714
5751.22 of the Revised Code as they existed at that time; 8715

       (b) With respect to taxes levied by the county for senior 8716
services related purposes, the taxes charged and payable for such 8717
purposes against all property on the tax list of real and public 8718
utility property for tax year 2009. 8719

       (26) "Total resources," in the case of county children's 8720
services related functions, means the sum of the amounts in 8721
divisions (A)(26)(a) and (b) of this section less any reduction 8722
required under division (A)(32) of this section. 8723

       (a) The sum of the payments received by the county for 8724
children's services related functions in calendar year 2010 under 8725
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of 8726
section 5751.22 of the Revised Code as they existed at that time; 8727

       (b) With respect to taxes levied by the county for children's 8728
services related purposes, the taxes charged and payable for such 8729
purposes against all property on the tax list of real and public 8730
utility property for tax year 2009. 8731

       (27) "Total resources," in the case of county public health 8732
related functions, means the sum of the amounts in divisions 8733
(A)(27)(a) and (b) of this section less any reduction required 8734
under division (A)(32) of this section. 8735

       (a) The sum of the payments received by the county for public 8736
health related functions in calendar year 2010 under division 8737
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section 8738
5751.22 of the Revised Code as they existed at that time; 8739

       (b) With respect to taxes levied by the county for public 8740
health related purposes, the taxes charged and payable for such 8741
purposes against all property on the tax list of real and public 8742
utility property for tax year 2009. 8743

       (28) "Total resources," in the case of all county functions 8744
not included in divisions (A)(24) to (27) of this section, means 8745
the sum of the amounts in divisions (A)(28)(a) to (d) of this 8746
section less any reduction required under division (A)(32) or (33)8747
of this section. 8748

       (a) The sum of the payments received by the county for all 8749
other purposes in calendar year 2010 under division (A)(1) of 8750
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of 8751
the Revised Code as they existed at that time; 8752

       (b) The county's percentage share of county undivided local 8753
government fund allocations as certified to the tax commissioner 8754
for calendar year 2010 by the county auditor under division (J) of 8755
section 5747.51 of the Revised Code or division (F) of section 8756
5747.53 of the Revised Code multiplied by the total amount 8757
actually distributed in calendar year 2010 from the county 8758
undivided local government fund; 8759

       (c) With respect to taxes levied by the county for all other 8760
purposes, the taxes charged and payable for such purposes against 8761
all property on the tax list of real and public utility property 8762
for tax year 2009, excluding taxes charged and payable for the 8763
purpose of paying debt charges; 8764

       (d) The sum of the amounts distributed to the county in 8765
calendar year 2010 for the taxes levied pursuant to sections 8766
5739.021 and 5741.021 of the Revised Code. 8767

       (29) "Total resources," in the case of a municipal 8768
corporation, means the sum of the amounts in divisions (A)(29)(a) 8769
to (g) of this section less any reduction required under division 8770
(A)(32) or (33) of this section. 8771

       (a) The sum of the payments received by the municipal 8772
corporation in calendar year 2010 for current expense levy losses8773
under division (A)(1) of section 5727.86 and divisions (A)(1) and 8774
(2) of section 5751.22 of the Revised Code as they existed at that 8775
time; 8776

       (b) The municipal corporation's percentage share of county 8777
undivided local government fund allocations as certified to the 8778
tax commissioner for calendar year 2010 by the county auditor 8779
under division (J) of section 5747.51 of the Revised Code or 8780
division (F) of section 5747.53 of the Revised Code multiplied by 8781
the total amount actually distributed in calendar year 2010 from 8782
the county undivided local government fund;8783

       (c) The sum of the amounts distributed to the municipal 8784
corporation in calendar year 2010 pursuant to section 5747.50 of 8785
the Revised Code; 8786

       (d) With respect to taxes levied by the municipal 8787
corporation, the taxes charged and payable against all property on 8788
the tax list of real and public utility property for current 8789
expenses, defined in division (A)(33)(35) of this section, for tax 8790
year 2009; 8791

       (e) The amount of admissions tax collected by the municipal 8792
corporation in calendar year 2008, or if such information has not 8793
yet been reported to the tax commissioner, in the most recent year 8794
before 2008 for which the municipal corporation has reported data 8795
to the commissioner; 8796

       (f) The amount of income taxes collected by the municipal 8797
corporation in calendar year 2008, or if such information has not 8798
yet been reported to the tax commissioner, in the most recent year 8799
before 2008 for which the municipal corporation has reported data 8800
to the commissioner;8801

       (g) The municipal corporation's median estate tax 8802
collections.8803

       (30) "Total resources," in the case of a township, means the 8804
sum of the amounts in divisions (A)(30)(a) to (c) of this section 8805
less any reduction required under division (A)(32) or (33) of this 8806
section. 8807

       (a) The sum of the payments received by the township in 8808
calendar year 2010 pursuant to division (A)(1) of section 5727.86 8809
of the Revised Code and divisions (A)(1) and (2) of section 8810
5751.22 of the Revised Code as they existed at that time, 8811
excluding payments received for debt purposes;8812

       (b) The township's percentage share of county undivided local 8813
government fund allocations as certified to the tax commissioner 8814
for calendar year 2010 by the county auditor under division (J) of 8815
section 5747.51 of the Revised Code or division (F) of section 8816
5747.53 of the Revised Code multiplied by the total amount 8817
actually distributed in calendar year 2010 from the county 8818
undivided local government fund; 8819

       (c) With respect to taxes levied by the township, the taxes 8820
charged and payable against all property on the tax list of real 8821
and public utility property for tax year 2009 excluding taxes 8822
charged and payable for the purpose of paying debt charges.8823

       (31) "Total resources," in the case of a local taxing unit 8824
that is not a county, municipal corporation, or township, means 8825
the sum of the amounts in divisions (A)(31)(a) to (e) of this 8826
section less any reduction required under division (A)(32) of this 8827
section.8828

       (a) The sum of the payments received by the local taxing unit 8829
in calendar year 2010 pursuant to division (A)(1) of section 8830
5727.86 of the Revised Code and divisions (A)(1) and (2) of 8831
section 5751.22 of the Revised Code as they existed at that time;8832

       (b) The local taxing unit's percentage share of county 8833
undivided local government fund allocations as certified to the 8834
tax commissioner for calendar year 2010 by the county auditor 8835
under division (J) of section 5747.51 of the Revised Code or 8836
division (F) of section 5747.53 of the Revised Code multiplied by 8837
the total amount actually distributed in calendar year 2010 from 8838
the county undivided local government fund; 8839

       (c) With respect to taxes levied by the local taxing unit, 8840
the taxes charged and payable against all property on the tax list 8841
of real and public utility property for tax year 2009 excluding 8842
taxes charged and payable for the purpose of paying debt charges;8843

       (d) The amount received from the tax commissioner during 8844
calendar year 2010 for sales or use taxes authorized under 8845
sections 5739.023 and 5741.022 of the Revised Code;8846

       (e) For institutions of higher education receiving tax 8847
revenue from a local levy, as identified in section 3358.02 of the 8848
Revised Code, the final state share of instruction allocation for 8849
fiscal year 2010 as calculated by the board of regents and 8850
reported to the state controlling board.8851

       (32) If a fixed-rate levy that is a qualifying levy is not 8852
imposedcharged and payable in any year after tax year 2010, 8853
"total resources" used to compute payments to be made under 8854
division (C)(12) of section 5751.21 or division (A)(1)(b) or (c) 8855
of section 5751.22 of the Revised Code in the tax years following 8856
the last year the levy is imposedcharged and payable shall be 8857
reduced by the amount ofto the extent that the payments are8858
attributable to the fixed-rate levy loss of that levy as would be 8859
computed under division (C)(2) of section 5727.85, division (A)(1) 8860
of section 5727.85, divisions (C)(8) and (9) of section 5751.21, 8861
or division (A)(1) of section 5751.22 of the Revised Code.8862

       (33) In the case of a county, municipal corporation, school 8863
district, or township with fixed-rate levy losses attributable to 8864
a tax levied under section 5705.23 of the Revised Code, "total 8865
resources" used to compute payments to be made under division 8866
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86, 8867
division (C)(12) of section 5751.21, or division (A)(1)(c) of 8868
section 5751.22 of the Revised Code shall be reduced by the 8869
amounts described in divisions (A)(34)(a) to (c) of this section 8870
to the extent that those amounts were included in calculating the 8871
"total resources" of the school district or local taxing unit 8872
under division (A)(22), (28), (29), or (30) of this section.8873

        (34) "Total library resources," in the case of a county, 8874
municipal corporation, school district, or township public library 8875
that receives the proceeds of a tax levied under section 5705.23 8876
of the Revised Code, means the sum of the amounts in divisions 8877
(A)(34)(a) to (c) of this section less any reduction required 8878
under division (A)(32) of this section.8879

        (a) The sum of the payments received by the county, municipal 8880
corporation, school district, or township public library in 8881
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the 8882
Revised Code, as they existed at that time, for fixed-rate levy 8883
losses attributable to a tax levied under section 5705.23 of the 8884
Revised Code for the benefit of the public library;8885

        (b) The public library's percentage share of county undivided 8886
local government fund allocations as certified to the tax 8887
commissioner for calendar year 2010 by the county auditor under 8888
division (J) of section 5747.51 of the Revised Code or division 8889
(F) of section 5747.53 of the Revised Code multiplied by the total 8890
amount actually distributed in calendar year 2010 from the county 8891
undivided local government fund;8892

        (c) With respect to a tax levied pursuant to section 5705.23 8893
of the Revised Code for the benefit of the public library, the 8894
amount of such tax that is charged and payable against all 8895
property on the tax list of real and public utility property for 8896
tax year 2009 excluding any tax that is charged and payable for 8897
the purpose of paying debt charges.8898

        (35) "Municipal current expense property tax levies" means 8899
all property tax levies of a municipality, except those with the 8900
following levy names: airport resurfacing; bond or any levy name 8901
including the word "bond"; capital improvement or any levy name 8902
including the word "capital"; debt or any levy name including the 8903
word "debt"; equipment or any levy name including the word 8904
"equipment," unless the levy is for combined operating and 8905
equipment; employee termination fund; fire pension or any levy 8906
containing the word "pension," including police pensions; 8907
fireman's fund or any practically similar name; sinking fund; road 8908
improvements or any levy containing the word "road"; fire truck or 8909
apparatus; flood or any levy containing the word "flood"; 8910
conservancy district; county health; note retirement; sewage, or 8911
any levy containing the words "sewage" or "sewer"; park 8912
improvement; parkland acquisition; storm drain; street or any levy 8913
name containing the word "street"; lighting, or any levy name 8914
containing the word "lighting"; and water.8915

       (34)(36) "Current expense TPP allocation" means, in the case 8916
of a school district or joint vocational school district, the sum 8917
of the payments received by the school district in fiscal year 8918
2011 pursuant to divisions (C)(10) and (11) of section 5751.21 of 8919
the Revised Code to the extent paid for current expense levies. In 8920
the case of a municipal corporation, "current expense TPP 8921
allocation" means the sum of the payments received by the 8922
municipal corporation in calendar year 2010 pursuant to divisions 8923
(A)(1) and (2) of section 5751.22 of the Revised Code to the 8924
extent paid for municipal current expense property tax levies as 8925
defined in division (A)(33)(35) of this section, excluding any 8926
such payments received for current expense levy losses 8927
attributable to a tax levied under section 5705.23 of the Revised 8928
Code. If a fixed-rate levy that is a qualifying levy is not 8929
imposedcharged and payable in any year after tax year 2010, 8930
"current expense TPP allocation" used to compute payments to be 8931
made under division (C)(12) of section 5751.21 or division 8932
(A)(1)(b) or (c) of section 5751.22 of the Revised Code in the tax 8933
years following the last year the levy is imposedcharged and 8934
payable shall be reduced by the amount ofto the extent that the8935
payments are attributable to the fixed-rate levy loss of that levy 8936
as would be computed under divisions (C)(10) and (11) of section 8937
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.8938

       (35)(37) "TPP allocation" means the sum of payments received 8939
by a local taxing unit in calendar year 2010 pursuant to divisions 8940
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding 8941
any such payments received for fixed-rate levy losses attributable 8942
to a tax levied under section 5705.23 of the Revised Code. If a 8943
fixed-rate levy that is a qualifying levy is not imposedcharged 8944
and payable in any year after tax year 2010, "TPP allocation" used 8945
to compute payments to be made under division (A)(1)(b) or (c) of 8946
section 5751.22 of the Revised Code in the tax years following the 8947
last year the levy is imposedcharged and payable shall be reduced 8948
by the amount of paymentto the extent that the payments are8949
attributable to the fixed-rate levy loss of that levy as would be 8950
computed under division (A)(1) of that section.8951

       (36)(38) "Total TPP allocation" means, in the case of a 8952
school district or joint vocational school district, the sum of 8953
the amounts received in fiscal year 2011 pursuant to divisions 8954
(C)(10) and (11) and (D) of section 5751.21 of the Revised Code. 8955
In the case of a local taxing unit, "total TPP allocation" means 8956
the sum of payments received by the unit in calendar year 2010 8957
pursuant to divisions (A)(1), (2), and (3) of section 5751.22 of 8958
the Revised Code. If a fixed-rate levy that is a qualifying levy 8959
is not imposedcharged and payable in any year after tax year 8960
2010, "total TPP allocation" used to compute payments to be made 8961
under division (C)(12) of section 5751.21 or division (A)(1)(b) or 8962
(c) of section 5751.22 of the Revised Code in the tax years 8963
following the last year the levy is imposedcharged and payable8964
shall be reduced by the amount ofto the extent that the payments 8965
are attributable to the fixed-rate levy loss of that levy as would 8966
be computed under divisions (C)(10) and (11) of section 5751.21 or 8967
division (A)(1) of section 5751.22 of the Revised Code.8968

       (37)(39) "Non-current expense TPP allocation" means the 8969
difference of total TPP allocation minus the sum of current 8970
expense TPP allocation and the portion of total TPP allocation 8971
constituting reimbursement for debt levies, pursuant to division 8972
(D) of section 5751.21 of the Revised Code in the case of a school 8973
district or joint vocational school district and pursuant to 8974
division (A)(3) of section 5751.22 of the Revised Code in the case 8975
of a municipal corporation. 8976

       (38)(40) "TPP allocation for library purposes" means the sum 8977
of payments received by a county, municipal corporation, school 8978
district, or township public library in calendar year 2010 8979
pursuant to section 5751.22 of the Revised Code for fixed-rate 8980
levy losses attributable to a tax levied under section 5705.23 of 8981
the Revised Code. If a fixed-rate levy authorized under section 8982
5705.23 of the Revised Code that is a qualifying levy is not 8983
charged and payable in any year after tax year 2010, "TPP 8984
allocation for library purposes" used to compute payments to be 8985
made under division (A)(1)(d) of section 5751.22 of the Revised 8986
Code in the tax years following the last year the levy is charged 8987
and payable shall be reduced to the extent that the payments are 8988
attributable to the fixed-rate levy loss of that levy as would be 8989
computed under division (A)(1) of section 5751.22 of the Revised 8990
Code.8991

        (41) "Threshold per cent" means, in the case of a school 8992
district or joint vocational school district, two per cent for 8993
fiscal year 2012 and four per cent for fiscal years 2013 and 8994
thereafter. In the case of a local taxing unit or public library 8995
that receives the proceeds of a tax levied under section 5705.23 8996
of the Revised Code, "threshold per cent" means two per cent for 8997
tax year 2011, four per cent for tax year 2012, and six per cent 8998
for tax years 2013 and thereafter.8999

       (B) The commercial activities tax receipts fund is hereby 9000
created in the state treasury and shall consist of money arising 9001
from the tax imposed under this chapter. Eighty-five 9002
one-hundredths of one per cent of the money credited to that fund 9003
shall be credited to the tax reform system implementationrevenue 9004
enhancement fund, which is hereby created in the state treasury,9005
and shall be used to defray the costs incurred by the department 9006
of taxation in administering the tax imposed by this chapter and 9007
in implementing tax reform measures. The remainder in the 9008
commercial activities tax receipts fund shall be credited for each 9009
fiscal year in the following percentages to the general revenue 9010
fund, to the school district tangible property tax replacement 9011
fund, which is hereby created in the state treasury for the 9012
purpose of making the payments described in section 5751.21 of the 9013
Revised Code, and to the local government tangible property tax 9014
replacement fund, which is hereby created in the state treasury 9015
for the purpose of making the payments described in section 9016
5751.22 of the Revised Code, in the following percentages:9017

Fiscal year General Revenue Fund School District Tangible Property Tax Replacement Fund Local Government Tangible Property Tax Replacement Fund 9018
2006 67.7% 22.6% 9.7% 9019
2007 0% 70.0% 30.0% 9020
2008 0% 70.0% 30.0% 9021
2009 0% 70.0% 30.0% 9022
2010 0% 70.0% 30.0% 9023
2011 0% 70.0% 30.0% 9024
2012 25.0% 52.5% 22.5% 9025
2013 and thereafter 50.0% 35.0% 15.0% 9026

       (C) Not later than September 15, 2005, the tax commissioner 9027
shall determine for each school district, joint vocational school 9028
district, and local taxing unit its machinery and equipment, 9029
inventory property, furniture and fixtures property, and telephone 9030
property tax value losses, which are the applicable amounts 9031
described in divisions (C)(1), (2), (3), and (4) of this section, 9032
except as provided in division (C)(5) of this section:9033

       (1) Machinery and equipment property tax value loss is the 9034
taxable value of machinery and equipment property as reported by 9035
taxpayers for tax year 2004 multiplied by:9036

       (a) For tax year 2006, thirty-three and eight-tenths per 9037
cent;9038

       (b) For tax year 2007, sixty-one and three-tenths per cent;9039

       (c) For tax year 2008, eighty-three per cent;9040

       (d) For tax year 2009 and thereafter, one hundred per cent.9041

       (2) Inventory property tax value loss is the taxable value of 9042
inventory property as reported by taxpayers for tax year 2004 9043
multiplied by:9044

       (a) For tax year 2006, a fraction, the numerator of which is 9045
five and three-fourths and the denominator of which is 9046
twenty-three;9047

        (b) For tax year 2007, a fraction, the numerator of which is 9048
nine and one-half and the denominator of which is twenty-three;9049

        (c) For tax year 2008, a fraction, the numerator of which is 9050
thirteen and one-fourth and the denominator of which is 9051
twenty-three;9052

        (d) For tax year 2009 and thereafter a fraction, the 9053
numerator of which is seventeen and the denominator of which is 9054
twenty-three.9055

        (3) Furniture and fixtures property tax value loss is the 9056
taxable value of furniture and fixture property as reported by 9057
taxpayers for tax year 2004 multiplied by:9058

        (a) For tax year 2006, twenty-five per cent;9059

        (b) For tax year 2007, fifty per cent;9060

        (c) For tax year 2008, seventy-five per cent;9061

        (d) For tax year 2009 and thereafter, one hundred per cent.9062

       The taxable value of property reported by taxpayers used in 9063
divisions (C)(1), (2), and (3) of this section shall be such 9064
values as determined to be final by the tax commissioner as of 9065
August 31, 2005. Such determinations shall be final except for any 9066
correction of a clerical error that was made prior to August 31, 9067
2005, by the tax commissioner.9068

       (4) Telephone property tax value loss is the taxable value of 9069
telephone property as taxpayers would have reported that property 9070
for tax year 2004 if the assessment rate for all telephone 9071
property for that year were twenty-five per cent, multiplied by:9072

       (a) For tax year 2006, zero per cent;9073

       (b) For tax year 2007, zero per cent;9074

       (c) For tax year 2008, zero per cent;9075

       (d) For tax year 2009, sixty per cent;9076

       (e) For tax year 2010, eighty per cent;9077

       (f) For tax year 2011 and thereafter, one hundred per cent.9078

       (5) Division (C)(5) of this section applies to any school 9079
district, joint vocational school district, or local taxing unit 9080
in a county in which is located a facility currently or formerly 9081
devoted to the enrichment or commercialization of uranium or 9082
uranium products, and for which the total taxable value of 9083
property listed on the general tax list of personal property for 9084
any tax year from tax year 2001 to tax year 2004 was fifty per 9085
cent or less of the taxable value of such property listed on the 9086
general tax list of personal property for the next preceding tax 9087
year.9088

       In computing the fixed-rate levy losses under divisions 9089
(D)(1), (2), and (3) of this section for any school district, 9090
joint vocational school district, or local taxing unit to which 9091
division (C)(5) of this section applies, the taxable value of such 9092
property as listed on the general tax list of personal property 9093
for tax year 2000 shall be substituted for the taxable value of 9094
such property as reported by taxpayers for tax year 2004, in the 9095
taxing district containing the uranium facility, if the taxable 9096
value listed for tax year 2000 is greater than the taxable value 9097
reported by taxpayers for tax year 2004. For the purpose of making 9098
the computations under divisions (D)(1), (2), and (3) of this 9099
section, the tax year 2000 valuation is to be allocated to 9100
machinery and equipment, inventory, and furniture and fixtures 9101
property in the same proportions as the tax year 2004 values. For 9102
the purpose of the calculations in division (A) of section 5751.21 9103
of the Revised Code, the tax year 2004 taxable values shall be 9104
used.9105

       To facilitate the calculations required under division (C) of 9106
this section, the county auditor, upon request from the tax 9107
commissioner, shall provide by August 1, 2005, the values of 9108
machinery and equipment, inventory, and furniture and fixtures for 9109
all single-county personal property taxpayers for tax year 2004.9110

       (D) Not later than September 15, 2005, the tax commissioner 9111
shall determine for each tax year from 2006 through 2009 for each 9112
school district, joint vocational school district, and local 9113
taxing unit its machinery and equipment, inventory, and furniture 9114
and fixtures fixed-rate levy losses, and for each tax year from 9115
2006 through 2011 its telephone property fixed-rate levy loss. 9116
Except as provided in division (F) of this section, such losses 9117
are the applicable amounts described in divisions (D)(1), (2), 9118
(3), and (4) of this section:9119

       (1) The machinery and equipment fixed-rate levy loss is the 9120
machinery and equipment property tax value loss multiplied by the 9121
sum of the tax rates of fixed-rate qualifying levies.9122

       (2) The inventory fixed-rate loss is the inventory property 9123
tax value loss multiplied by the sum of the tax rates of 9124
fixed-rate qualifying levies.9125

        (3) The furniture and fixtures fixed-rate levy loss is the 9126
furniture and fixture property tax value loss multiplied by the 9127
sum of the tax rates of fixed-rate qualifying levies.9128

       (4) The telephone property fixed-rate levy loss is the 9129
telephone property tax value loss multiplied by the sum of the tax 9130
rates of fixed-rate qualifying levies.9131

       (E) Not later than September 15, 2005, the tax commissioner 9132
shall determine for each school district, joint vocational school 9133
district, and local taxing unit its fixed-sum levy loss. The 9134
fixed-sum levy loss is the amount obtained by subtracting the 9135
amount described in division (E)(2) of this section from the 9136
amount described in division (E)(1) of this section:9137

       (1) The sum of the machinery and equipment property tax value 9138
loss, the inventory property tax value loss, and the furniture and 9139
fixtures property tax value loss, and, for 2008 through 2010, the 9140
telephone property tax value loss of the district or unit 9141
multiplied by the sum of the fixed-sum tax rates of qualifying 9142
levies. For 2006 through 2010, this computation shall include all 9143
qualifying levies remaining in effect for the current tax year and 9144
any school district levies imposedcharged and payable under 9145
section 5705.194 or 5705.213 of the Revised Code that are 9146
qualifying levies not remaining in effect for the current year. 9147
For 2011 through 2017 in the case of school district levies 9148
imposedcharged and payable under section 5705.194 or 5705.213 of 9149
the Revised Code and for all years after 2010 in the case of other 9150
fixed-sum levies, this computation shall include only qualifying 9151
levies remaining in effect for the current year. For purposes of 9152
this computation, a qualifying school district levy imposed9153
charged and payable under section 5705.194 or 5705.213 of the 9154
Revised Code remains in effect in a year after 2010 only if, for 9155
that year, the board of education levies a school district levy 9156
imposedcharged and payable under section 5705.194, 5705.199, 9157
5705.213, or 5705.219 of the Revised Code for an annual sum at 9158
least equal to the annual sum levied by the board in tax year 2004 9159
less the amount of the payment certified under this division for 9160
2006.9161

       (2) The total taxable value in tax year 2004 less the sum of 9162
the machinery and equipment, inventory, furniture and fixtures, 9163
and telephone property tax value losses in each school district, 9164
joint vocational school district, and local taxing unit multiplied 9165
by one-half of one mill per dollar.9166

       (3) For the calculations in divisions (E)(1) and (2) of this 9167
section, the tax value losses are those that would be calculated 9168
for tax year 2009 under divisions (C)(1), (2), and (3) of this 9169
section and for tax year 2011 under division (C)(4) of this 9170
section.9171

       (4) To facilitate the calculation under divisions (D) and (E) 9172
of this section, not later than September 1, 2005, any school 9173
district, joint vocational school district, or local taxing unit 9174
that has a qualifying levy that was approved at an election 9175
conducted during 2005 before September 1, 2005, shall certify to 9176
the tax commissioner a copy of the county auditor's certificate of 9177
estimated property tax millage for such levy as required under 9178
division (B) of section 5705.03 of the Revised Code, which is the 9179
rate that shall be used in the calculations under such divisions.9180

       If the amount determined under division (E) of this section 9181
for any school district, joint vocational school district, or 9182
local taxing unit is greater than zero, that amount shall equal 9183
the reimbursement to be paid pursuant to division (E) of section 9184
5751.21 or division (A)(3) of section 5751.22 of the Revised Code, 9185
and the one-half of one mill that is subtracted under division 9186
(E)(2) of this section shall be apportioned among all contributing 9187
fixed-sum levies in the proportion that each levy bears to the sum 9188
of all fixed-sum levies within each school district, joint 9189
vocational school district, or local taxing unit.9190

       (F) If a school district levies a tax under section 5705.219 9191
of the Revised Code, the fixed-rate levy loss for qualifying 9192
levies, to the extent repealed under that section, shall equal the 9193
sum of the following amounts in lieu of the amounts computed for 9194
such levies under division (D) of this section:9195

       (1) The sum of the rates of qualifying levies to the extent 9196
so repealed multiplied by the sum of the machinery and equipment, 9197
inventory, and furniture and fixtures tax value losses for 2009 as 9198
determined under that division;9199

       (2) The sum of the rates of qualifying levies to the extent 9200
so repealed multiplied by the telephone property tax value loss 9201
for 2011 as determined under that division.9202

       The fixed-rate levy losses for qualifying levies to the 9203
extent not repealed under section 5705.219 of the Revised Code 9204
shall be as determined under division (D) of this section. The 9205
revised fixed-rate levy losses determined under this division and 9206
division (D) of this section first apply in the year following the 9207
first year the district levies the tax under section 5705.219 of 9208
the Revised Code.9209

       (G) Not later than October 1, 2005, the tax commissioner 9210
shall certify to the department of education for every school 9211
district and joint vocational school district the machinery and 9212
equipment, inventory, furniture and fixtures, and telephone 9213
property tax value losses determined under division (C) of this 9214
section, the machinery and equipment, inventory, furniture and 9215
fixtures, and telephone fixed-rate levy losses determined under 9216
division (D) of this section, and the fixed-sum levy losses 9217
calculated under division (E) of this section. The calculations 9218
under divisions (D) and (E) of this section shall separately 9219
display the levy loss for each levy eligible for reimbursement.9220

       (H) Not later than October 1, 2005, the tax commissioner 9221
shall certify the amount of the fixed-sum levy losses to the 9222
county auditor of each county in which a school district, joint 9223
vocational school district, or local taxing unit with a fixed-sum 9224
levy loss reimbursement has territory.9225

       (I) Not later than the twenty-eighth day of February each 9226
year beginning in 2011 and ending in 2014, the tax commissioner 9227
shall certify to the department of education for each school 9228
district first levying a tax under section 5705.219 of the Revised 9229
Code in the preceding year the revised fixed-rate levy losses 9230
determined under divisions (D) and (F) of this section.9231

       Sec. 5751.22.  (A) Not later than January 1, 2006, the tax 9232
commissioner shall compute the payments to be made to each local 9233
taxing unit, and to each public library that receives the proceeds 9234
of a tax levied under section 5705.23 of the Revised Code, for 9235
each year according to divisions (A)(1), (2), (3), and (4) of this 9236
section as this section existed on that date, and shall distribute 9237
the payments in the manner prescribed by division (C) of this 9238
section. The calculation of the fixed-sum levy loss shall cover a 9239
time period sufficient to include all fixed-sum levies for which 9240
the commissioner determined, pursuant to division (E) of section 9241
5751.20 of the Revised Code, that a fixed-sum levy loss is to be 9242
reimbursed.9243

       (1) Except as provided in division (A)(3) of this section, 9244
for fixed-rate levy losses determined under division (D) of 9245
section 5751.20 of the Revised Code, payments shall be made in an 9246
amount equal to the following:9247

       (a) For tax years 2006 through 2010, one hundred per cent of 9248
such losses;9249

       (b) For the payment in tax year 2011 to be made on or before 9250
the twentieth day of November, the sum of the amount in division 9251
(A)(1)(b)(i) or (ii) and division (A)(1)(b)(iii) of this section:9252

       (i) If the ratio of six-sevenths of the TPP allocation to 9253
total resources is equal to or less than the threshold per cent, 9254
zero;9255

       (ii) If the ratio of six-sevenths of the TPP allocation to 9256
total resources is greater than the threshold per cent, the 9257
difference of six-sevenths of the TPP allocation minus the product 9258
of total resources multiplied by the threshold per cent;9259

       (iii) In the case of a municipal corporation, six-sevenths of 9260
the product of the non-current expense TPP allocation multiplied 9261
by seventy-five per cent.9262

       (c) For tax years 2012 and thereafter, the sum of the amount 9263
in division (A)(1)(c)(i) or (ii) and division (A)(1)(c)(iii) of 9264
this section:9265

       (i) If the ratio of TPP allocation to total resources is 9266
equal to or less than the threshold per cent, zero;9267

       (ii) If the ratio of TPP allocation to total resources is 9268
greater than the threshold per cent, the TPP allocation minus the 9269
product of total resources multiplied by the threshold per cent;9270

       (iii) In the case of a municipal corporation, non-current 9271
expense TPP allocation multiplied by fifty per cent for tax year 9272
2012 and twenty-five per cent for tax years 2013 and thereafter;9273

       (d) For tax years 2012 and thereafter, in the case of a 9274
county, school district, municipal corporation, or township public 9275
library, the amount in division (A)(1)(d)(i) or (ii) of this 9276
section:9277

        (i) If the ratio of TPP allocation for library purposes to 9278
total library resources is equal to or less than the threshold per 9279
cent, zero;9280

        (ii) If the ratio of TPP allocation for library purposes to 9281
total library resources is greater than the threshold per cent, 9282
the TPP allocation for library purposes minus the product of total 9283
library resources multiplied by the threshold per cent.9284

       (2) For fixed-sum levy losses determined under division (E) 9285
of section 5751.20 of the Revised Code, payments shall be made in 9286
the amount of one hundred per cent of the fixed-sum levy loss for 9287
payments required to be made in 2006 and thereafterthrough 2011, 9288
except that no payments shall be made for qualifying levies that 9289
have expired. For payments required to be made in 2012 and 9290
thereafter, payments shall be made in the amount of fifty per cent 9291
of the fixed-sum levy loss until the qualifying levy has expired.9292

       (3) For taxes levied within the ten-mill limitation or 9293
pursuant to a municipal charter for debt purposes in tax year 9294
2005, payments shall be made based on the schedule in division 9295
(A)(1) of this section for each of the calendar years 2006 through 9296
2010. For each of the calendar years 2011 through 2017, the 9297
percentages for calendar year 2010 shall be used for taxes levied 9298
within the ten-mill limitation or pursuant to a municipal charter 9299
for debt purposes in tax year 2010, as long as such levies 9300
continue to be used for debt purposes. If the purpose of such a 9301
qualifying levy is changed, that levy becomes subject to the 9302
payment schedules in divisions (A)(1)(a) to (h) of this section. 9303
No payments shall be made for such levies after calendar year 9304
2017. For the purposes of this division, taxes levied pursuant to 9305
a municipal charter refer to taxes levied pursuant to a provision 9306
of a municipal charter that permits the tax to be levied without 9307
prior voter approval.9308

       (B) Beginning in 2007, by the thirty-first day of January of 9309
each year, the tax commissioner shall review the calculation 9310
originally made under division (A) of this section of the 9311
fixed-sum levy losses determined under division (E) of section 9312
5751.20 of the Revised Code. If the commissioner determines that a 9313
fixed-sum levy that had been scheduled to be reimbursed in the 9314
current year has expired, a revised calculation for that and all 9315
subsequent years shall be made.9316

       (C) Payments to local taxing units and public libraries9317
required to be made under division (A) of this section shall be 9318
paid from the local government tangible property tax replacement 9319
fund to the county undivided income tax fund in the proper county 9320
treasury. From May 2006 through November 2010, one-seventh of the 9321
amount determined under that division shall be paid by the last 9322
day of May each year, and three-sevenths shall be paid by the last 9323
day of August and October each year. From May 2011 through 9324
November 2013, one-seventh of the amount determined under that 9325
division shall be paid on or before the last day of May each year, 9326
and six-sevenths shall be paid on or before the twentieth9327
thirtieth day of November each year, except that in November 2011, 9328
the payment shall equal one hundred per cent of the amount 9329
calculated for that payment. Beginning in May 2014, one-half of 9330
the amount determined under that division shall be paid on or 9331
before the last day of May each year, and one-half shall be paid 9332
on or before the twentieththirtieth day of November each year. 9333
Within fortythirty days after receipt of such payments, the 9334
county treasurer shall distribute amounts determined under 9335
division (A) of this section to the proper local taxing unit or 9336
public library as if they had been levied and collected as taxes, 9337
and the local taxing unit or public library shall apportion the 9338
amounts so received among its funds in the same proportions as if 9339
those amounts had been levied and collected as taxes.9340

       (D) For each of the fiscal years 2006 through 2018, if the 9341
total amount in the local government tangible property tax 9342
replacement fund is insufficient to make all payments under 9343
division (C) of this section at the times the payments are to be 9344
made, the director of budget and management shall transfer from 9345
the general revenue fund to the local government tangible property 9346
tax replacement fund the difference between the total amount to be 9347
paid and the amount in the local government tangible property tax 9348
replacement fund. For each fiscal year after 2018, at the time 9349
payments under division (A)(2) of this section are to be made, the 9350
director of budget and management shall transfer from the general 9351
revenue fund to the local government property tax replacement fund 9352
the amount necessary to make such payments.9353

       (E) On the fifteenth day of June of each year from 2006 9354
through 2018, the director of budget and management may transfer 9355
any balance in the local government tangible property tax 9356
replacement fund to the general revenue fund.9357

       (F) If all or a part of the territories of two or more local 9358
taxing units are merged, or unincorporated territory of a township 9359
is annexed by a municipal corporation, the tax commissioner shall 9360
adjust the payments made under this section to each of the local 9361
taxing units in proportion to the square mileage of the merged or 9362
annexed territory as a percentage of the total square mileage of 9363
the jurisdiction from which the territory originated, or as 9364
otherwise provided by a written agreement between the legislative 9365
authorities of the local taxing units certified to the 9366
commissioner not later than the first day of June of the calendar 9367
year in which the payment is to be made.9368

       Sec. 5753.03.  (A) For the purpose of receiving and 9369
distributing, and accounting for, revenue received from the tax 9370
levied by section 5753.02 of the Revised Code, the following funds 9371
are created in the state treasury:9372

       (1) The casino tax revenue fund;9373

       (2) The gross casino revenue county fund;9374

       (3) The gross casino revenue county student fund;9375

       (4) The gross casino revenue host city fund;9376

       (5) The Ohio state racing commission fund;9377

       (6) The Ohio law enforcement training fund;9378

       (7) The problem casino gambling and addictions fund;9379

       (8) The casino control commission fund;9380

       (9) The casino tax administration fund;9381

       (10) The peace officer training academy fund;9382

       (11) The criminal justice services casino tax revenue fund.9383

       (B) All moneys collected from the tax levied under this 9384
chapter shall be deposited into the casino tax revenue fund.9385

       (C) From the casino tax revenue fund the director of budget 9386
and management shall transfer as needed to the tax refund fund 9387
amounts equal to the refunds certified by the tax commissioner 9388
under section 5753.06 of the Revised Code.9389

       (D) After making any transfers required by division (C) of 9390
this section, but not later than the fifteenth day of the month 9391
following the end of each calendar quarter, the director of budget 9392
and management shall transfer amounts to each fund as follows:9393

       (1) Fifty-one per cent to the gross casino revenue county 9394
fund to make payments as required by Section 6(C)(3)(a) of Article 9395
XV, Ohio Constitution;9396

       (2) Thirty-four per cent to the gross casino revenue county 9397
student fund to make payments as required by Section 6(C)(3)(b) of 9398
Article XV, Ohio Constitution;9399

       (3) Five per cent to the gross casino revenue host city fund 9400
for the benefit of the cities in which casino facilities are 9401
located;9402

       (4) Three per cent to the Ohio state racing commission fund 9403
to support the efforts and activities of the Ohio state racing 9404
commission to promote horse racing in this state at which the 9405
pari-mutuel system of wagering is conducted;9406

       (5) Two per cent to the Ohio law enforcement training fund to 9407
support law enforcement functions in the state;9408

       (6) Two per cent to the problem casino gambling and 9409
addictions fund to support efforts of the department of alcohol 9410
and drug addiction services to alleviate problem gambling and 9411
substance abuse and related research in the state under section 9412
3793.032 of the Revised Code;9413

       (7) Three per cent to the casino control commission fund to 9414
support the operations of the Ohio casino control commission and 9415
to defray the cost of administering the tax levied under section 9416
5753.02 of the Revised Code.9417

       Payments under divisions (D)(1), (2), and (3) of this section 9418
shall be made by the end of the month following the end of the 9419
quarterly period. The tax commissioner shall make the data 9420
available to the director of budget and management for this 9421
purpose.9422

       Of the money credited to the Ohio law enforcement training 9423
fund, the director of budget and management shall distribute 9424
eighty-five per cent of the money to the police officer training 9425
academy fund for the purpose of supporting the law enforcement 9426
training efforts of the Ohio peace officer training academy and 9427
fifteen per cent of the money to the criminal justice services 9428
casino tax revenue fund for the purpose of supporting the law 9429
enforcement training efforts of the division of criminal justice 9430
services.9431

       (E) The director of budget and management shall transfer one 9432
per cent of the money credited to the casino control commission 9433
fund to the casino tax administration fund. The tax commissioner 9434
shall use the casino tax administration fund to defray the costs 9435
incurred in administering the tax levied by this chapter.9436

       Section 2. That existing sections 131.02, 349.01, 1545.21, 9437
1701.86, 1702.47, 3318.011, 3318.36, 3769.28, 4301.42, 4303.33, 9438
4701.01, 4701.04, 5703.261, 5703.37, 5703.47, 5709.084, 5709.40, 9439
5709.41, 5709.73, 5709.78, 5727.84, 5727.86, 5731.39, 5733.056, 9440
5735.02, 5735.03, 5739.01, 5739.02, 5739.021, 5739.023, 5739.026, 9441
5739.04, 5739.17, 5741.08, 5743.20, 5743.61, 5743.66, 5747.082, 9442
5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051, 9443
5751.12, 5751.20, 5751.22, and 5753.03 and section 5751.032 of 9444
the Revised Code are hereby repealed.9445

       Section 757.10. Notwithstanding sections 5713.01 and 5715.24 9446
of the Revised Code, for the purpose of equalizing and 9447
regionalizing real property assessment cycles, beginning in tax 9448
year 2014 and continuing for not more than five years, the Tax 9449
Commissioner may extend the revaluation of real property required 9450
in any county by not more than one year.9451

       Section 757.20. The Tax Commissioner is not required to issue 9452
the certifications that are or were otherwise required to be made 9453
on or before May 15, 2012, or June 1, 2012, under sections 9454
3317.026, 3317.027, 3317.028, and divisions (A)(4), (6), and (7) 9455
of section 3317.021 of the Revised Code. This section is intended 9456
to be remedial in nature and to be construed liberally to 9457
accomplish the purpose of avoiding unnecessary certifications.9458

       Section 757.30. Section 5709.084 of the Revised Code, as 9459
amended by this act, is remedial in nature and applies to the tax 9460
years at issue in any application for exemption from taxation or 9461
any appeal from such an application pending before the Tax 9462
Commissioner, the Board of Tax Appeals, any Court of Appeals, or 9463
the Supreme Court on the effective date of this act and to the 9464
property that is the subject of any such application or appeal.9465

       Section 806.10. The items of law contained in this act, and 9466
their applications, are severable. If any item of law contained in 9467
this act, or if any application of any item of law contained in 9468
this act, is held invalid, the invalidity does not affect other 9469
items of law contained in this act and their applications that can 9470
be given effect without the invalid item of law or application.9471

       Section 812.10. Sections subject to referendum: general 9472
effective date. Except as otherwise provided in this act, the 9473
amendment, enactment, or repeal by this act of a section is 9474
subject to the referendum under Ohio Constitution, Article II, 9475
Section 1c and therefore takes effect on the ninety-first day 9476
after this act is filed with the Secretary of State.9477

       Section 812.20. Sections exempt from referendum: general 9478
effective date. The amendment, enactment, or repeal by this act of 9479
the following sections is exempt from the referendum under Ohio 9480
Constitution, Article II, Section 1d and section 1.471 of the 9481
Revised Code and therefore takes effect immediately when this act 9482
becomes law:9483

       Sections 5727.84, 5727.86, 5751.20, 5751.22, and 5753.03 of 9484
the Revised Code.9485

        Section 757.20 of this act.9486

       Section 815.10. Section 5751.01 of the Revised Code is 9487
presented in this act as a composite of the section as amended by 9488
both Am. Sub. H.B. 153 and Sub. H.B. 277 of the 129th General 9489
Assembly. The General Assembly, applying the principle stated in 9490
division (B) of section 1.52 of the Revised Code that amendments 9491
are to be harmonized if reasonably capable of simultaneous 9492
operation, finds that the composite is the resulting version of 9493
the section in effect prior to the effective date of the section 9494
as presented in this act.9495