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To amend sections 122.85, 131.02, 349.01, 1545.21, | 1 |
1701.86, 1702.47, 3769.28, 4301.42, 4303.33, | 2 |
4701.01, 4701.04, 5703.261, 5703.37, 5703.47, | 3 |
5705.313, 5709.084, 5709.40, 5709.41, 5709.73, | 4 |
5709.78, 5727.84, 5727.86, 5731.39, 5733.056, | 5 |
5735.02, 5735.03, 5735.35, 5739.01, 5739.02, | 6 |
5739.021, 5739.023, 5739.026, 5739.04, 5739.17, | 7 |
5741.08, 5743.20, 5743.61, 5743.66, 5747.082, | 8 |
5751.01, 5751.011, 5751.012, 5751.03, 5751.04, | 9 |
5751.05, 5751.051, 5751.12, 5751.20, and 5751.22, | 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 and to the laws | 14 |
governing public accounting firm peer review. | 15 |
Section 1. That sections 122.85, 131.02, 349.01, 1545.21, | 16 |
1701.86, 1702.47, 3769.28, 4301.42, 4303.33, 4701.01, 4701.04, | 17 |
5703.261, 5703.37, 5703.47, 5705.313, 5709.084, 5709.40, 5709.41, | 18 |
5709.73, 5709.78, 5727.84, 5727.86, 5731.39, 5733.056, 5735.02, | 19 |
5735.03, 5735.35, 5739.01, 5739.02, 5739.021, 5739.023, 5739.026, | 20 |
5739.04, 5739.17, 5741.08, 5743.20, 5743.61, 5743.66, 5747.082, | 21 |
5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051, | 22 |
5751.12, 5751.20, and 5751.22 be amended and section 5703.061 of | 23 |
the Revised Code be enacted to read as follows: | 24 |
Sec. 122.85. (A) As used in this section and in sections | 25 |
5733.59 and 5747.66 of the Revised Code: | 26 |
(1) "Tax credit-eligible production" means a motion picture | 27 |
production certified by the director of development under division | 28 |
(B) of this section as qualifying the motion picture company for a | 29 |
tax credit under section 5733.59 or 5747.66 of the Revised Code. | 30 |
(2) "Certificate owner" means a motion picture company to | 31 |
which a tax credit certificate is issued. | 32 |
(3) "Motion picture company" means an individual, | 33 |
corporation, partnership, limited liability company, or other form | 34 |
of business association producing a motion picture. | 35 |
(4) "Eligible production expenditures" means expenditures | 36 |
made after June 30, 2009, for goods or services purchased and | 37 |
consumed in this state by a motion picture company directly for | 38 |
the production of a tax credit-eligible production. | 39 |
"Eligible production expenditures" includes, but is not | 40 |
limited to, expenditures for resident and nonresident cast and | 41 |
crew wages, accommodations, costs of set construction and | 42 |
operations, editing and related services, photography, sound | 43 |
synchronization, lighting, wardrobe, makeup and accessories, film | 44 |
processing, transfer, sound mixing, special and visual effects, | 45 |
music, location fees, and the purchase or rental of facilities and | 46 |
equipment. | 47 |
(5) "Motion picture" means entertainment content created in | 48 |
whole or in part within this state for distribution or exhibition | 49 |
to the general public, including, but not limited to, | 50 |
feature-length films; documentaries; long-form, specials, | 51 |
miniseries, series, and interstitial television programming; | 52 |
interactive web sites; sound recordings; videos; music videos; | 53 |
interactive television; interactive games; | 54 |
commercials; any format of digital media; and any trailer, pilot, | 55 |
video teaser, or demo created primarily to stimulate the sale, | 56 |
marketing, promotion, or exploitation of future investment in | 57 |
either a product or a motion picture by any means and media in any | 58 |
digital media format, film, or videotape, provided the motion | 59 |
picture qualifies as a motion picture. "Motion picture" does not | 60 |
include any television program created primarily as news, weather, | 61 |
or financial market reports, a production featuring current events | 62 |
or sporting events, an awards show or other gala event, a | 63 |
production whose sole purpose is fundraising, a long-form | 64 |
production that primarily markets a product or service or in-house | 65 |
corporate advertising or other similar productions, a production | 66 |
for purposes of political advocacy, or any production for which | 67 |
records are required to be maintained under 18 U.S.C. 2257 with | 68 |
respect to sexually explicit content. | 69 |
(B) For the purpose of encouraging and developing a strong | 70 |
film industry in this state, the director of development may | 71 |
certify a motion picture produced by a motion picture company as a | 72 |
tax credit-eligible production. In the case of a television | 73 |
series, the director may certify the production of each episode of | 74 |
the series as a separate tax credit-eligible production. A motion | 75 |
picture company shall apply for certification of a motion picture | 76 |
as a tax credit-eligible production on a form and in the manner | 77 |
prescribed by the director. Each application shall include the | 78 |
following information: | 79 |
(1) The name and telephone number of the motion picture | 80 |
production company; | 81 |
(2) The name and telephone number of the company's contact | 82 |
person; | 83 |
(3) A list of the first preproduction date through the last | 84 |
production date in Ohio; | 85 |
(4) The Ohio production office address and telephone number; | 86 |
(5) The total production budget of the motion picture; | 87 |
(6) The total budgeted eligible production expenditures and | 88 |
the percentage that amount is of the total production budget of | 89 |
the motion picture; | 90 |
(7) The total percentage of the motion picture being shot in | 91 |
Ohio; | 92 |
(8) The level of employment of cast and crew who reside in | 93 |
Ohio; | 94 |
(9) A synopsis of the script; | 95 |
(10) The shooting script; | 96 |
(11) A creative elements list that includes the names of the | 97 |
principal cast and crew and the producer and director; | 98 |
(12) Documentation of financial ability to undertake and | 99 |
complete the motion picture; | 100 |
(13) Estimated value of the tax credit based upon total | 101 |
budgeted eligible production expenditures; | 102 |
(14) Any other information considered necessary by the | 103 |
director. | 104 |
Within ninety days after certification of a motion picture as | 105 |
a tax credit-eligible production, and any time thereafter upon the | 106 |
director's request, the motion picture company shall present to | 107 |
the director of development sufficient evidence of reviewable | 108 |
progress. If the motion picture company fails to present | 109 |
sufficient evidence, the director of development may rescind the | 110 |
certification. Upon rescission, the director shall notify the | 111 |
applicant that the certification has been rescinded. Nothing in | 112 |
this section prohibits an applicant whose tax credit-eligible | 113 |
production certification has been rescinded from submitting a | 114 |
subsequent application for certification. | 115 |
(C)(1) A motion picture company whose motion picture has been | 116 |
certified as a tax credit-eligible production may apply to the | 117 |
director of development on or after July 1, 2009, for a refundable | 118 |
credit against the tax imposed by section 5733.06 or 5747.02 of | 119 |
the Revised Code. The director in consultation with the tax | 120 |
commissioner shall prescribe the form and manner of the | 121 |
application and the information or documentation required to be | 122 |
submitted with the application. | 123 |
The credit is determined as follows: | 124 |
(a) If the total budgeted eligible production expenditures | 125 |
stated in the application submitted under division (B) of this | 126 |
section or the actual eligible production expenditures as finally | 127 |
determined under division (D) of this section, whichever is least, | 128 |
is less than or equal to three hundred thousand dollars, no credit | 129 |
is allowed; | 130 |
(b) If the total budgeted eligible production expenditures | 131 |
stated in the application submitted under division (B) of this | 132 |
section or the actual eligible production expenditures as finally | 133 |
determined under division (D) of this section, whichever is least, | 134 |
is greater than three hundred thousand dollars, the credit equals | 135 |
the sum of the following, subject to the limitation in division | 136 |
(C)(4) of this section: | 137 |
(i) Twenty-five per cent of the least of such budgeted or | 138 |
actual eligible expenditure amounts excluding budgeted or actual | 139 |
eligible expenditures for resident cast and crew wages; | 140 |
(ii) Thirty-five per cent of budgeted or actual eligible | 141 |
expenditures for resident cast and crew wages. | 142 |
(2) Except as provided in division (C)(4) of this section, if | 143 |
the director of development approves a motion picture company's | 144 |
application for a credit, the director shall issue a tax credit | 145 |
certificate to the company. The director in consultation with the | 146 |
tax commissioner shall prescribe the form and manner of issuing | 147 |
certificates. The director shall assign a unique identifying | 148 |
number to each tax credit certificate and shall record the | 149 |
certificate in a register devised and maintained by the director | 150 |
for that purpose. The certificate shall state the amount of the | 151 |
eligible production expenditures on which the credit is based and | 152 |
the amount of the credit. Upon the issuance of a certificate, the | 153 |
director shall certify to the tax commissioner the name of the | 154 |
applicant, the amount of eligible production expenditures shown on | 155 |
the certificate, and any other information required by the rules | 156 |
adopted to administer this section. | 157 |
(3) The amount of eligible production expenditures for which | 158 |
a tax credit may be claimed is subject to inspection and | 159 |
examination by the tax commissioner or employees of the | 160 |
commissioner under section 5703.19 of the Revised Code and any | 161 |
other applicable law. Once the eligible production expenditures | 162 |
are finally determined under section 5703.19 of the Revised Code | 163 |
and division (D) of this section, the credit amount is not subject | 164 |
to adjustment unless the director determines an error was | 165 |
committed in the computation of the credit amount. | 166 |
(4) No tax credit certificate may be issued before the | 167 |
completion of the tax credit-eligible production. | 168 |
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credit may be allowed per fiscal biennium beginning on or after | 174 |
July 1, 2011, and not more than | 175 |
allowed in the first year of the biennium. At any time, not more | 176 |
than five million dollars of tax credit may be allowed per tax | 177 |
credit-eligible production. | 178 |
(D) A motion picture company whose motion picture has been | 179 |
certified as a tax credit-eligible production shall engage, at the | 180 |
company's expense, an independent certified public accountant to | 181 |
examine the company's production expenditures to identify the | 182 |
expenditures that qualify as eligible production expenditures. The | 183 |
certified public accountant shall issue a report to the company | 184 |
and to the director of development certifying the company's | 185 |
eligible production expenditures and any other information | 186 |
required by the director. Upon receiving and examining the report, | 187 |
the director may disallow any expenditure the director determines | 188 |
is not an eligible production expenditure. If the director | 189 |
disallows an expenditure, the director shall issue a written | 190 |
notice to the motion picture production company stating that the | 191 |
expenditure is disallowed and the reason for the disallowance. | 192 |
Upon examination of the report and disallowance of any | 193 |
expenditures, the director shall determine finally the lesser of | 194 |
the total budgeted eligible production expenditures stated in the | 195 |
application submitted under division (B) of this section or the | 196 |
actual eligible production expenditures for the purpose of | 197 |
computing the amount of the credit. | 198 |
(E) No credit shall be allowed under section 5733.59 or | 199 |
5747.66 of the Revised Code unless the director has reviewed the | 200 |
report and made the determination prescribed by division (D) of | 201 |
this section. | 202 |
(F) This state reserves the right to refuse the use of this | 203 |
state's name in the credits of any tax credit-eligible motion | 204 |
picture production. | 205 |
(G)(1) The director of development in consultation with the | 206 |
tax commissioner shall adopt rules for the administration of this | 207 |
section, including rules setting forth and governing the criteria | 208 |
for determining whether a motion picture production is a tax | 209 |
credit-eligible production; activities that constitute the | 210 |
production of a motion picture; reporting sufficient evidence of | 211 |
reviewable progress; expenditures that qualify as eligible | 212 |
production expenditures; a competitive process for approving | 213 |
credits; and consideration of geographic distribution of credits. | 214 |
The rules shall be adopted under Chapter 119. of the Revised Code. | 215 |
(2) The director may require a reasonable application fee to | 216 |
cover administrative costs of the tax credit program. The fees | 217 |
collected shall be credited to the motion picture tax credit | 218 |
program operating fund, which is hereby created in the state | 219 |
treasury. The motion picture tax credit program operating fund | 220 |
shall consist of all grants, gifts, fees, and contributions made | 221 |
to the director of development for marketing and promotion of the | 222 |
motion picture industry within this state. The director of | 223 |
development shall use money in the fund to pay expenses related to | 224 |
the administration of the Ohio film office and the credit | 225 |
authorized by this section and sections 5733.59 and 5747.66 of the | 226 |
Revised Code. | 227 |
Sec. 131.02. (A) Except as otherwise provided in section | 228 |
4123.37, section 5703.061, and division (K) of section 4123.511 of | 229 |
the Revised Code, whenever any amount is payable to the state, the | 230 |
officer, employee, or agent responsible for administering the law | 231 |
under which the amount is payable shall immediately proceed to | 232 |
collect the amount or cause the amount to be collected and shall | 233 |
pay the amount into the state treasury or into the appropriate | 234 |
custodial fund in the manner set forth pursuant to section 113.08 | 235 |
of the Revised Code. Except as otherwise provided in this | 236 |
division, if the amount is not paid within forty-five days after | 237 |
payment is due, the officer, employee, or agent shall certify the | 238 |
amount due to the attorney general, in the form and manner | 239 |
prescribed by the attorney general, and notify the director of | 240 |
budget and management thereof. In the case of an amount payable by | 241 |
a student enrolled in a state institution of higher education, the | 242 |
amount shall be certified within the later of forty-five days | 243 |
after the amount is due or the tenth day after the beginning of | 244 |
the next academic semester, quarter, or other session following | 245 |
the session for which the payment is payable. The attorney general | 246 |
may assess the collection cost to the amount certified in such | 247 |
manner and amount as prescribed by the attorney general. If an | 248 |
amount payable to a political subdivision is past due, the | 249 |
political subdivision may, with the approval of the attorney | 250 |
general, certify the amount to the attorney general pursuant to | 251 |
this section. | 252 |
For the purposes of this section, the attorney general and | 253 |
the officer, employee, or agent responsible for administering the | 254 |
law under which the amount is payable shall agree on the time a | 255 |
payment is due, and that agreed upon time shall be one of the | 256 |
following times: | 257 |
(1) If a law, including an administrative rule, of this state | 258 |
prescribes the time a payment is required to be made or reported, | 259 |
when the payment is required by that law to be paid or reported. | 260 |
(2) If the payment is for services rendered, when the | 261 |
rendering of the services is completed. | 262 |
(3) If the payment is reimbursement for a loss, when the loss | 263 |
is incurred. | 264 |
(4) In the case of a fine or penalty for which a law or | 265 |
administrative rule does not prescribe a time for payment, when | 266 |
the fine or penalty is first assessed. | 267 |
(5) If the payment arises from a legal finding, judgment, or | 268 |
adjudication order, when the finding, judgment, or order is | 269 |
rendered or issued. | 270 |
(6) If the payment arises from an overpayment of money by the | 271 |
state to another person, when the overpayment is discovered. | 272 |
(7) The date on which the amount for which an individual is | 273 |
personally liable under section 5735.35, section 5739.33, or | 274 |
division (G) of section 5747.07 of the Revised Code is determined. | 275 |
(8) Upon proof of claim being filed in a bankruptcy case. | 276 |
(9) Any other appropriate time determined by the attorney | 277 |
general and the officer, employee, or agent responsible for | 278 |
administering the law under which the amount is payable on the | 279 |
basis of statutory requirements or ordinary business processes of | 280 |
the state agency to which the payment is owed. | 281 |
(B)(1) The attorney general shall give immediate notice by | 282 |
mail or otherwise to the party indebted of the nature and amount | 283 |
of the indebtedness. | 284 |
(2) If the amount payable to this state arises from a tax | 285 |
levied under Chapter 5733., 5739., 5741., 5747., or 5751. of the | 286 |
Revised Code, the notice also shall specify all of the following: | 287 |
(a) The assessment or case number; | 288 |
(b) The tax pursuant to which the assessment is made; | 289 |
(c) The reason for the liability, including, if applicable, | 290 |
that a penalty or interest is due; | 291 |
(d) An explanation of how and when interest will be added to | 292 |
the amount assessed; | 293 |
(e) That the attorney general and tax commissioner, acting | 294 |
together, have the authority, but are not required, to compromise | 295 |
the claim and accept payment over a reasonable time, if such | 296 |
actions are in the best interest of the state. | 297 |
(C) The attorney general shall collect the claim or secure a | 298 |
judgment and issue an execution for its collection. | 299 |
(D) Each claim shall bear interest, from the day on which the | 300 |
claim became due, at the rate per annum required by section | 301 |
5703.47 of the Revised Code. | 302 |
(E) The attorney general and the chief officer of the agency | 303 |
reporting a claim, acting together, may do any of the following if | 304 |
such action is in the best interests of the state: | 305 |
(1) Compromise the claim; | 306 |
(2) Extend for a reasonable period the time for payment of | 307 |
the claim by agreeing to accept monthly or other periodic | 308 |
payments. The agreement may require security for payment of the | 309 |
claim. | 310 |
(3) Add fees to recover the cost of processing checks or | 311 |
other draft instruments returned for insufficient funds and the | 312 |
cost of providing electronic payment options. | 313 |
(F)(1) Except as provided in division (F)(2) of this section, | 314 |
if the attorney general finds, after investigation, that any claim | 315 |
due and owing to the state is uncollectible, the attorney general, | 316 |
with the consent of the chief officer of the agency reporting the | 317 |
claim, may do the following: | 318 |
(a) Sell, convey, or otherwise transfer the claim to one or | 319 |
more private entities for collection; | 320 |
(b) Cancel the claim or cause it to be canceled. | 321 |
(2) The attorney general shall cancel or cause to be canceled | 322 |
an unsatisfied claim on the date that is forty years after the | 323 |
date the claim is certified. | 324 |
(3) No initial action shall be commenced to collect any tax | 325 |
payable to the state that is administered by the tax commissioner, | 326 |
whether or not such tax is subject to division (B) of this | 327 |
section, or any penalty, interest, or additional charge on such | 328 |
tax, after the expiration of the period ending on the later of the | 329 |
dates specified in divisions (F)(3)(a) and (b) of this section, | 330 |
provided that such period shall be extended by the period of any | 331 |
stay to such collection or by any other period to which the | 332 |
parties mutually agree. If the initial action in aid of execution | 333 |
is commenced before the later of the dates specified in divisions | 334 |
(F)(3)(a) and (b) of this section, any and all subsequent actions | 335 |
may be pursued in aid of execution of judgment for as long as the | 336 |
debt exists. | 337 |
(a) Seven years after the assessment of the tax, penalty, | 338 |
interest, or additional charge is issued. | 339 |
(b) Four years after the assessment of the tax, penalty, | 340 |
interest, or additional charge becomes final. For the purposes of | 341 |
division (F)(3)(b) of this section, the assessment becomes final | 342 |
at the latest of the following: upon expiration of the period to | 343 |
petition for reassessment, or if applicable, to appeal a final | 344 |
determination of the commissioner or decision of the board of tax | 345 |
appeals or a court, or, if applicable, upon decision of the United | 346 |
States supreme court. | 347 |
For the purposes of division (F)(3) of this section, an | 348 |
initial action to collect a tax debt is commenced at the time when | 349 |
any action, including any action in aid of execution on a | 350 |
judgment, commences after a certified copy of the tax | 351 |
commissioner's entry making an assessment final has been filed in | 352 |
the office of the clerk of court of common pleas in the county in | 353 |
which the taxpayer resides or has its principal place of business | 354 |
in this state, or in the office of the clerk of court of common | 355 |
pleas of Franklin county, as provided in section 5739.13, 5741.14, | 356 |
5747.13, or 5751.09 of the Revised Code or in any other applicable | 357 |
law requiring such a filing. If an assessment has not been issued | 358 |
and there is no time limitation on the issuance of an assessment | 359 |
under applicable law, an action to collect a tax debt commences | 360 |
when the action is filed in the courts of this state to collect | 361 |
the liability. | 362 |
(4) If information contained in a claim that is sold, | 363 |
conveyed, or transferred to a private entity pursuant to this | 364 |
section is confidential pursuant to federal law or a section of | 365 |
the Revised Code that implements a federal law governing | 366 |
confidentiality, such information remains subject to that law | 367 |
during and following the sale, conveyance, or transfer. | 368 |
Sec. 349.01. As used in this chapter: | 369 |
(A) "New community" means a community or an addition to an | 370 |
existing community planned pursuant to this chapter so that it | 371 |
includes facilities for the conduct of industrial, commercial, | 372 |
residential, cultural, educational, and recreational activities, | 373 |
and designed in accordance with planning concepts for the | 374 |
placement of utility, open space, and other supportive facilities. | 375 |
In the case of a new community authority established within | 376 |
three years after March 22, 2012, the effective date of H.B. 225 | 377 |
of the 129th general assembly, "new community" may mean a | 378 |
community or development of property planned under this chapter in | 379 |
relation to an existing community so that the community includes | 380 |
facilities for the conduct of community activities, and is | 381 |
designed in accordance with planning concepts for the placement of | 382 |
utility, open space, and other supportive facilities for the | 383 |
community. | 384 |
(B) "New community development program" means a program for | 385 |
the development of a new community characterized by well-balanced | 386 |
and diversified land use patterns and which includes land | 387 |
acquisition and land development, the acquisition, construction, | 388 |
operation, and maintenance of community facilities, and the | 389 |
provision of services authorized in this chapter. | 390 |
In the case of a new community authority established within | 391 |
three years after March 22, 2012, the effective date of H.B. 225 | 392 |
of the 129th general assembly, a new community development program | 393 |
may take into account any existing community in relation to which | 394 |
a new community is developed for purposes of being characterized | 395 |
by well-balanced and diversified land use patterns. | 396 |
(C) "New community district" means the area of land described | 397 |
by the developer in the petition as set forth in division (A) of | 398 |
section 349.03 of the Revised Code for development as a new | 399 |
community and any lands added to the district by amendment of the | 400 |
resolution establishing the community authority. | 401 |
(D) "New community authority" means a body corporate and | 402 |
politic in this state, established pursuant to section 349.03 of | 403 |
the Revised Code and governed by a board of trustees as provided | 404 |
in section 349.04 of the Revised Code. | 405 |
(E) "Developer" means any person, organized for carrying out | 406 |
a new community development program who owns or controls, through | 407 |
leases of at least seventy-five years' duration, options, or | 408 |
contracts to purchase, the land within a new community district, | 409 |
or any municipal corporation, county, or port authority that owns | 410 |
the land within a new community district, or has the ability to | 411 |
acquire such land, either by voluntary acquisition or condemnation | 412 |
in order to eliminate slum, blighted, and deteriorated or | 413 |
deteriorating areas and to prevent the recurrence thereof. In the | 414 |
case of a new community authority established within three years | 415 |
after March 22, 2012, the effective date of H.B. 225 of the 129th | 416 |
general assembly, "developer" may mean a person, municipal | 417 |
corporation, county, or port authority that controls land within a | 418 |
new community district through leases of at least forty years' | 419 |
duration. | 420 |
(F) "Organizational board of commissioners" means, if the new | 421 |
community district is located in only one county, the board of | 422 |
county commissioners of such county; if located in more than one | 423 |
county, a board consisting of the members of the board of county | 424 |
commissioners of each of the counties in which the district is | 425 |
located, provided that action of such board shall require a | 426 |
majority vote of the members of each separate board of county | 427 |
commissioners; or, if more than half of the new community district | 428 |
is located within the boundaries of the most populous municipal | 429 |
corporation of a county, the legislative authority of the | 430 |
municipal corporation. | 431 |
(G) "Land acquisition" means the acquisition of real property | 432 |
and interests in real property as part of a new community | 433 |
development program. | 434 |
(H) "Land development" means the process of clearing and | 435 |
grading land, making, installing, or constructing water | 436 |
distribution systems, sewers, sewage collection systems, steam, | 437 |
gas, and electric lines, roads, streets, curbs, gutters, | 438 |
sidewalks, storm drainage facilities, and other installations or | 439 |
work, whether within or without the new community district, and | 440 |
the construction of community facilities. | 441 |
(I)(1) "Community facilities" means all real property, | 442 |
buildings, structures, or other facilities, including related | 443 |
fixtures, equipment, and furnishings, to be owned, operated, | 444 |
financed, constructed, and maintained under this chapter, | 445 |
including public, community, village, neighborhood, or town | 446 |
buildings, centers and plazas, auditoriums, day care centers, | 447 |
recreation halls, educational facilities, hospital facilities as | 448 |
defined in section 140.01 of the Revised Code, recreational | 449 |
facilities, natural resource facilities, including parks and other | 450 |
open space land, lakes and streams, cultural facilities, community | 451 |
streets, pathway and bikeway systems, pedestrian underpasses and | 452 |
overpasses, lighting facilities, design amenities, or other | 453 |
community facilities, and buildings needed in connection with | 454 |
water supply or sewage disposal installations or steam, gas, or | 455 |
electric lines or installation. | 456 |
(2) In the case of a new community authority established | 457 |
within three years after March 22, 2012, the effective date of | 458 |
H.B. 225 of the 129th general assembly, "community facilities" may | 459 |
mean, in addition to the facilities authorized in division (I)(1) | 460 |
of this section, any community facilities that are owned, | 461 |
operated, financed, constructed, or maintained for, relating to, | 462 |
or in furtherance of community activities, including, but not | 463 |
limited to, town buildings or other facilities, health care | 464 |
facilities including, but limited to, hospital facilities, and | 465 |
off-street parking facilities. | 466 |
(J) "Cost" as applied to a new community development program | 467 |
means all costs related to land acquisition and land development, | 468 |
the acquisition, construction, maintenance, and operation of | 469 |
community facilities and offices of the community authority, and | 470 |
of providing furnishings and equipment therefor, financing charges | 471 |
including interest prior to and during construction and for the | 472 |
duration of the new community development program, planning | 473 |
expenses, engineering expenses, administrative expenses including | 474 |
working capital, and all other expenses necessary and incident to | 475 |
the carrying forward of the new community development program. | 476 |
(K) "Income source" means any and all sources of income to | 477 |
the community authority, including community development charges | 478 |
of which the new community authority is the beneficiary as | 479 |
provided in section 349.07 of the Revised Code, rentals, user fees | 480 |
and other charges received by the new community authority, any | 481 |
gift or grant received, any moneys received from any funds | 482 |
invested by or on behalf of the new community authority, and | 483 |
proceeds from the sale or lease of land and community facilities. | 484 |
(L) "Community development charge" means: | 485 |
(1) A dollar amount which shall be determined on the basis of | 486 |
the assessed valuation of real property or interests in real | 487 |
property in a new community district sold, leased, or otherwise | 488 |
conveyed by the developer or the new community authority, the | 489 |
income of the residents of such property subject to such charge | 490 |
under section 349.07 of the Revised Code, if such property is | 491 |
devoted to residential uses or to the profits of any business, a | 492 |
uniform fee on each parcel of such real property originally sold, | 493 |
leased, or otherwise conveyed by the developer or new community | 494 |
authority, or any combination of the foregoing bases. | 495 |
(2) For a new community authority that is established within | 496 |
three years after March 22, 2012, the effective date of H.B. 225 | 497 |
of the 129th general assembly, "community development charge" | 498 |
includes, in addition to the charges authorized in division (L)(1) | 499 |
of this section, a charge determined on the basis of all or a part | 500 |
of the income of the residents of real property within the new | 501 |
community district if such property is devoted to residential | 502 |
uses, or all or a part of the profits, gross receipts, or other | 503 |
revenues of any business operating in the new community district, | 504 |
including rentals received from leases of real property located in | 505 |
the district. If a new community authority imposes a community | 506 |
development charge determined on the basis of rentals received | 507 |
from leases of real property, improvements of any real property | 508 |
located in the new community district and subject to that charge | 509 |
may not be exempted from taxation under section 5709.40, 5709.41, | 510 |
5709.73, or 5709.78 of the Revised Code. | 511 |
(M) "Proximate city" means any city that, as of the date of | 512 |
filing of the petition under section 349.03 of the Revised Code, | 513 |
is the city with the greatest population located in the county in | 514 |
which the proposed new community district is located, is the city | 515 |
with the greatest population located in an adjoining county if any | 516 |
portion of such city is within five miles of any part of the | 517 |
boundaries of such district, or exercises extraterritorial | 518 |
subdivision authority under section 711.09 of the Revised Code | 519 |
with respect to any part of such district. | 520 |
In the case of a new community authority that is established | 521 |
within three years after March 22, 2012, the effective date of | 522 |
H.B. 225 of the 129th general assembly, "proximate city" may mean | 523 |
a municipal corporation in which, at the time of filing the | 524 |
petition under section 349.03 of the Revised Code, any portion of | 525 |
the proposed new community district is located, or, if at the time | 526 |
of that filing more than one-half of the proposed district is | 527 |
contained within a joint economic development district created | 528 |
under sections 715.70 to 715.83 of the Revised Code, the township | 529 |
containing the greatest portion of the territory of the joint | 530 |
economic development district. | 531 |
(N) "Community activities" means cultural, educational, | 532 |
governmental, recreational, residential, industrial, commercial, | 533 |
distribution and research activities, or any combination thereof | 534 |
that includes residential activities. | 535 |
Sec. 1545.21. The board of park commissioners, by | 536 |
resolution, may submit to the electors of the park district the | 537 |
question of levying taxes for the use of the district. The | 538 |
resolution shall declare the necessity of levying such taxes, | 539 |
shall specify the purpose for which such taxes shall be used, the | 540 |
annual rate proposed, and the number of consecutive years the rate | 541 |
shall be levied. Such resolution shall be forthwith certified to | 542 |
the board of elections in each county in which any part of such | 543 |
district is located, not later than the ninetieth day before the | 544 |
day of the election, and the question of the levy of taxes as | 545 |
provided in such resolution shall be submitted to the electors of | 546 |
the district at a special election to be held on whichever of the | 547 |
following occurs first: | 548 |
(A) The day of the next general election; | 549 |
(B) The first Tuesday after the first Monday in May in any | 550 |
calendar year, except that if a presidential primary election is | 551 |
held in that calendar year, then the day of that election. The | 552 |
ballot shall set forth the purpose for which the taxes shall be | 553 |
levied, the annual rate of levy, and the number of years of such | 554 |
levy. If the tax is to be placed on the current tax list, the form | 555 |
of the ballot shall state that the tax will be levied in the | 556 |
current tax year and shall indicate the first calendar year the | 557 |
tax will be due. If the resolution of the board of park | 558 |
commissioners provides that an existing levy will be canceled upon | 559 |
the passage of the new levy, the ballot may include a statement | 560 |
that: "an existing levy of ... mills (stating the original levy | 561 |
millage), having ... years remaining, will be canceled and | 562 |
replaced upon the passage of this levy." In such case, the ballot | 563 |
may refer to the new levy as a "replacement levy" if the new | 564 |
millage does not exceed the original millage of the levy being | 565 |
canceled or as a "replacement and additional levy" if the new | 566 |
millage exceeds the original millage of the levy being canceled. | 567 |
If a majority of the electors voting upon the question of such | 568 |
levy vote in favor thereof, such taxes shall be levied and shall | 569 |
be in addition to the taxes authorized by section 1545.20 of the | 570 |
Revised Code, and all other taxes authorized by law. The rate | 571 |
submitted to the electors at any one time shall not exceed two | 572 |
mills annually upon each dollar of valuation unless the purpose of | 573 |
the levy includes providing operating revenues for one of Ohio's | 574 |
major metropolitan zoos, as defined in section 4503.74 of the | 575 |
Revised Code, in which case the rate shall not exceed three mills | 576 |
annually upon each dollar of valuation. When a tax levy has been | 577 |
authorized as provided in this section or in section 1545.041 of | 578 |
the Revised Code, the board of park commissioners may issue bonds | 579 |
pursuant to section 133.24 of the Revised Code in anticipation of | 580 |
the collection of such levy, provided that such bonds shall be | 581 |
issued only for the purpose of acquiring and improving lands. Such | 582 |
levy, when collected, shall be applied in payment of the bonds so | 583 |
issued and the interest thereon. The amount of bonds so issued and | 584 |
outstanding at any time shall not exceed one per cent of the total | 585 |
tax valuation in such district. Such bonds shall bear interest at | 586 |
a rate not to exceed the rate determined as provided in section | 587 |
9.95 of the Revised Code. | 588 |
Sec. 1701.86. (A) A corporation may be dissolved voluntarily | 589 |
in the manner provided in this section, provided the provisions of | 590 |
Chapter 1704. of the Revised Code do not prevent the dissolution | 591 |
from being effected. | 592 |
(B) A resolution of dissolution for a corporation shall set | 593 |
forth that the corporation elects to be dissolved. The resolution | 594 |
also may include any of the following: | 595 |
(1) The date on which the certificate of dissolution is to be | 596 |
filed or the conditions or events that will result in the filing | 597 |
of the certificate; | 598 |
(2) Authorization for the officers or directors to abandon | 599 |
the proposed dissolution before the filing of the certificate of | 600 |
dissolution; | 601 |
(3) Any additional provision considered necessary with | 602 |
respect to the proposed dissolution and winding up. | 603 |
(C) If an initial stated capital is not set forth in the | 604 |
articles then before the corporation begins business, or if an | 605 |
initial stated capital is set forth in the articles then before | 606 |
subscriptions to shares shall have been received in the amount of | 607 |
that initial stated capital, the incorporators or a majority of | 608 |
them may adopt, by a writing signed by each of them, a resolution | 609 |
of dissolution. | 610 |
(D) The directors may adopt a resolution of dissolution in | 611 |
any of the following cases: | 612 |
(1) When the corporation has been adjudged bankrupt or has | 613 |
made a general assignment for the benefit of creditors; | 614 |
(2) By leave of the court, when a receiver has been appointed | 615 |
in a general creditors' suit or in any suit in which the affairs | 616 |
of the corporation are to be wound up; | 617 |
(3) When substantially all of the assets have been sold at | 618 |
judicial sale or otherwise; | 619 |
(4) When the articles have been canceled for failure to file | 620 |
annual franchise or excise tax returns or for failure to pay | 621 |
franchise or excise taxes and the corporation has not been | 622 |
reinstated or does not desire to be reinstated; | 623 |
(5) When the period of existence of the corporation specified | 624 |
in its articles has expired. | 625 |
(E) The shareholders at a meeting held for such purpose may | 626 |
adopt a resolution of dissolution by the affirmative vote of the | 627 |
holders of shares entitling them to exercise two-thirds of the | 628 |
voting power of the corporation on such proposal or, if the | 629 |
articles provide or permit, by the affirmative vote of a greater | 630 |
or lesser proportion, though not less than a majority, of such | 631 |
voting power, and by such affirmative vote of the holders of | 632 |
shares of any particular class as is required by the articles. | 633 |
Notice of the meeting of the shareholders shall be given to all | 634 |
the shareholders whether or not entitled to vote at it. | 635 |
(F) Upon the adoption of a resolution of dissolution, a | 636 |
certificate shall be prepared, on a form prescribed by the | 637 |
secretary of state, setting forth all of the following: | 638 |
(1) The name of the corporation; | 639 |
(2) A statement that a resolution of dissolution has been | 640 |
adopted; | 641 |
(3) A statement of the manner of adoption of such resolution, | 642 |
and, in the case of its adoption by the incorporators or | 643 |
directors, a statement of the basis for such adoption; | 644 |
(4) The place in this state where its principal office is or | 645 |
is to be located; | 646 |
(5) The internet address of each domain name held or | 647 |
maintained by or on behalf of the corporation; | 648 |
(6) The name and address of its statutory agent; | 649 |
(7) The date of dissolution, if other than the filing date. | 650 |
The date of dissolution shall not be more than ninety days after | 651 |
the filing of the certificate of dissolution. | 652 |
(G) When the resolution of dissolution is adopted by the | 653 |
incorporators, the certificate shall be signed by not less than a | 654 |
majority of them. In all other cases, the certificate shall be | 655 |
signed by any authorized officer, unless the officer fails to | 656 |
execute and file such certificate within thirty days after the | 657 |
date upon which such certificate is to be filed. In that latter | 658 |
event, the certificate of dissolution may be signed by any three | 659 |
shareholders or, if there are less than three shareholders, all of | 660 |
the shareholders and shall set forth a statement that the persons | 661 |
signing the certificate are shareholders and are filing the | 662 |
certificate because of the failure of the officers to do so. | 663 |
(H) Except as otherwise provided in division (I) of this | 664 |
section, a certificate of dissolution, filed with the secretary of | 665 |
state, shall be accompanied by all of the following: | 666 |
(1) An affidavit of one or more of the persons executing the | 667 |
certificate of dissolution or of an officer of the corporation | 668 |
containing a statement of the counties, if any, in this state in | 669 |
which the corporation has personal property or a statement that | 670 |
the corporation is of a type required to pay personal property | 671 |
taxes to state authorities only; | 672 |
(2) A certificate or other evidence from the department of | 673 |
taxation showing that the | 674 |
675 | |
676 | |
corporation has paid all taxes administered by and required to be | 677 |
paid to the tax commissioner that are or will be due from the | 678 |
corporation on the date of the dissolution or an affidavit of one | 679 |
or more of the persons executing the certificate of dissolution or | 680 |
of an officer of the corporation containing a statement that the | 681 |
corporation is not required to pay or the department of taxation | 682 |
has not assessed any tax for which such a certificate or other | 683 |
evidence is not provided; | 684 |
(3) A certificate or other evidence showing the payment of | 685 |
all personal property | 686 |
the date of dissolution or showing that such payment has been | 687 |
adequately guaranteed, or an affidavit of one or more of the | 688 |
persons executing the certificate of dissolution or of an officer | 689 |
of the corporation containing a statement that the corporation is | 690 |
not required to pay or the department of taxation has not assessed | 691 |
any tax for which such a certificate or other evidence is not | 692 |
provided; | 693 |
(4) A receipt, certificate, or other evidence from the | 694 |
director of job and family services showing that all contributions | 695 |
due from the corporation as an employer have been paid, or that | 696 |
such payment has been adequately guaranteed, or that the | 697 |
corporation is not subject to such contributions; | 698 |
(5) A receipt, certificate, or other evidence from the bureau | 699 |
of workers' compensation showing that all premiums due from the | 700 |
corporation as an employer have been paid, or that such payment | 701 |
has been adequately guaranteed, or that the corporation is not | 702 |
subject to such premium payments. | 703 |
(I) In lieu of the receipt, certificate, or other evidence | 704 |
described in division (H)(2), (3), (4), or (5) of this section, an | 705 |
affidavit of one or more persons executing the certificate of | 706 |
dissolution or of an officer of the corporation containing a | 707 |
statement of the date upon which the particular department, | 708 |
agency, or authority was advised in writing of the scheduled | 709 |
effective date of the dissolution and was advised in writing of | 710 |
the acknowledgment by the corporation of the applicability of the | 711 |
provisions of section 1701.95 of the Revised Code. | 712 |
(J) Upon the filing of a certificate of dissolution and such | 713 |
accompanying documents or on a later date specified in the | 714 |
certificate that is not more than ninety days after the filing, | 715 |
the corporation shall be dissolved. | 716 |
Sec. 1702.47. (A) A corporation may be dissolved voluntarily | 717 |
in the manner provided in this section. | 718 |
(B) A resolution of dissolution for a corporation shall set | 719 |
forth: | 720 |
(1) That the corporation elects to be dissolved; | 721 |
(2) Any additional provision deemed necessary with respect to | 722 |
the proposed dissolution and winding up. | 723 |
(C) The directors may adopt a resolution of dissolution in | 724 |
the following cases: | 725 |
(1) When the corporation has been adjudged bankrupt or has | 726 |
made a general assignment for the benefit of creditors; | 727 |
(2) By leave of the court, when a receiver has been appointed | 728 |
in a general creditors' suit or in any suit in which the affairs | 729 |
of the corporation are to be wound up; | 730 |
(3) When substantially all of the assets have been sold at | 731 |
judicial sale or otherwise; | 732 |
(4) When the period of existence of the corporation specified | 733 |
in its articles has expired. | 734 |
(D)(1) The voting members at a meeting held for that purpose | 735 |
may adopt a resolution of dissolution by the affirmative vote of a | 736 |
majority of the voting members present in person or, if permitted, | 737 |
by mail, by proxy, or by the use of authorized communications | 738 |
equipment, if a quorum is present or, if the articles or the | 739 |
regulations provide or permit, by the affirmative vote of a | 740 |
greater or lesser proportion or number of the voting members, and | 741 |
by the affirmative vote of the voting members or the affirmative | 742 |
vote of the voting members of any particular class that is | 743 |
required by the articles or the regulations. Notice of the meeting | 744 |
of the members shall be sent to all the members who would be | 745 |
entitled to vote at the meeting by mail, overnight delivery | 746 |
service, or any authorized communications equipment. | 747 |
(2) For purposes of division (D)(1) of this section, | 748 |
participation by a voting member at a meeting through the use of | 749 |
any of the means of communication described in that division | 750 |
constitutes presence in person of that voting member at the | 751 |
meeting for purposes of determining a quorum. | 752 |
(E) Upon the adoption of a resolution of dissolution, a | 753 |
certificate shall be prepared, on a form prescribed by the | 754 |
secretary of state, setting forth the following: | 755 |
(1) The name of the corporation; | 756 |
(2) A statement that a resolution of dissolution has been | 757 |
adopted; | 758 |
(3) A statement of the manner of adoption of that resolution, | 759 |
and, in the case of its adoption by the directors, a statement of | 760 |
the basis for the adoption; | 761 |
(4) The place in this state where its principal office is or | 762 |
is to be located; | 763 |
(5) The names and addresses of its directors and officers; | 764 |
(6) The name and address of its statutory agent; | 765 |
(7) The date of dissolution, if other than the filing date. | 766 |
(F) The certificate described in division (E) of this section | 767 |
shall be signed by any authorized officer, unless the officer | 768 |
fails to execute and file the certificate within thirty days after | 769 |
the adoption of the resolution, or upon any date specified in the | 770 |
resolution as the date upon which the certificate is to be filed, | 771 |
or upon the expiration of any period specified in the resolution | 772 |
as the period within which the certificate is to be filed, | 773 |
whichever is latest, in which event the certificate of dissolution | 774 |
may be signed by any three voting members and shall set forth a | 775 |
statement that the persons signing the certificate are voting | 776 |
members and are filing the certificate because of the failure of | 777 |
the officers to do so. | 778 |
(G) A certificate of dissolution, filed with the secretary of | 779 |
state, shall be accompanied by: | 780 |
(1) | 781 |
782 | |
783 | |
784 | |
785 | |
786 |
| 787 |
788 | |
789 | |
790 | |
791 | |
792 | |
793 |
| 794 |
director of job and family services showing that all contributions | 795 |
due from the corporation as an employer have been paid, that such | 796 |
payment has been adequately guaranteed, or that the corporation is | 797 |
not subject to such contributions; | 798 |
| 799 |
the
| 800 |
801 | |
802 | |
imposed under the laws of this state that are or will be due from | 803 |
the corporation on the date of the dissolution | 804 |
805 | |
adequately guaranteed; | 806 |
| 807 |
described in division (G)(1) or (2) | 808 |
an affidavit of one or more of the persons executing the | 809 |
certificate of dissolution or of an officer of the corporation | 810 |
containing a statement of the date upon which the particular | 811 |
department, agency, or authority was advised in writing of the | 812 |
scheduled effective date of the dissolution and was advised in | 813 |
writing of the acknowledgement by the corporation of the | 814 |
applicability of section 1702.55 of the Revised Code. | 815 |
(H) Upon the filing of a certificate of dissolution and those | 816 |
accompanying documents or on a later date specified in the | 817 |
certificate that is not more than ninety days after the filing, | 818 |
the corporation shall be dissolved. | 819 |
Sec. 3769.28. The tax commissioner shall collect from each | 820 |
permit holder who conducts a pari-mutuel system of wagering where | 821 |
the wagering is less than five million dollars a sum of money | 822 |
equal to one-tenth of one per cent of the total amount wagered and | 823 |
where the wagering is five million dollars or more a sum of money | 824 |
equal to fifteen hundredths of one per cent of the total amount | 825 |
wagered during any horse-racing meeting for the purpose of | 826 |
providing operating revenue for the political subdivisions wherein | 827 |
such meetings are held. | 828 |
829 | |
meeting | 830 |
831 | |
commissioner a final report showing the total amount wagered | 832 |
during the horse-racing meeting and any other information required | 833 |
by the commissioner relative to the tax levied by this section. | 834 |
The final report shall be signed by the permit holder or an | 835 |
authorized agent of the permit holder. The commissioner shall | 836 |
prescribe the form of the final report. | 837 |
The commissioner shall collect the tax due under this section | 838 |
on amounts wagered during a horse-racing meeting within ten days | 839 |
after the close of the meeting. The amount collected by the | 840 |
commissioner shall be made payable to the chief fiscal officers of | 841 |
the municipal corporations or townships in which such horse-racing | 842 |
meeting took place and in which any such facilities or accessory | 843 |
uses therefor were located. The commissioner shall then | 844 |
immediately forward the
| 845 |
fiscal officers | 846 |
847 | |
848 | |
The amount collected shall be divided equally between the | 849 |
municipal corporations or townships in which such horse-racing | 850 |
meeting took place and in which any facilities or accessory uses | 851 |
therefor were located. Such municipal corporations or townships | 852 |
may distribute a portion of the moneys so received to any | 853 |
adjoining political subdivision which incurs increased expenses | 854 |
because of such horse-racing meeting. | 855 |
This section shall not apply to any agricultural society | 856 |
which holds a horse-racing permit. | 857 |
The amount collected under this section from any one permit | 858 |
holder shall not exceed fifteen thousand dollars from any one | 859 |
horse-racing meeting in any calendar year. | 860 |
Sec. 4301.42. For the purpose of providing revenue for the | 861 |
support of the state, a tax is hereby levied on the sale of beer | 862 |
in sealed bottles and cans having twelve ounces or less of liquid | 863 |
content, at the rate of fourteen one-hundredths of one cent on | 864 |
each ounce of liquid content or fractional part of each ounce of | 865 |
liquid content, and on such containers in excess of twelve ounces, | 866 |
at the rate of eighty-four one-hundredths of one cent on each six | 867 |
ounces of liquid content or fractional part of each six ounces of | 868 |
liquid content. Sections 4307.01 to 4307.12 of the Revised Code | 869 |
apply in the administration of that tax. Manufacturers, bottlers, | 870 |
and canners of | 871 |
beer, and S permit holders have the duty to pay the tax imposed by | 872 |
this section and are entitled to the privileges in the manner | 873 |
provided in section 4303.33 of the Revised Code. | 874 |
Sec. 4303.33. (A) Every A-1 permit holder in this state, | 875 |
every bottler, importer, wholesale dealer, broker, producer, or | 876 |
manufacturer of beer outside this state and within the United | 877 |
States, and every B-1 permit holder and importer importing beer | 878 |
from any manufacturer, bottler, person, or group of persons | 879 |
however organized outside the United States for sale or | 880 |
distribution for sale in this state, on or before the eighteenth | 881 |
day of each month, shall make and file with the tax commissioner | 882 |
upon a form prescribed by the tax commissioner an advance tax | 883 |
payment in an amount estimated to equal the taxpayer's tax | 884 |
liability for the month in which the advance tax payment is made. | 885 |
If the advance tax payment credits claimed on the report are for | 886 |
advance tax payments received by the tax commissioner on or before | 887 |
the eighteenth day of the month covered by the report, the | 888 |
taxpayer is entitled to an additional credit of three per cent of | 889 |
the advance tax payment and a discount of three per cent shall be | 890 |
allowed the taxpayer at the time of filing the report if filed as | 891 |
provided in division (B) of this section on any amount by which | 892 |
the tax liability reflected in the report exceeds the advance tax | 893 |
payment estimate by not more than ten per cent. The additional | 894 |
three per cent credit and three per cent discount shall be in | 895 |
consideration for advancing the payment of the tax and other | 896 |
services performed by the permit holder and other taxpayers in the | 897 |
collection of the tax. | 898 |
"Advance tax payment credit" means credit for payments made | 899 |
by an A-1 or B-1 permit holder and any other persons during the | 900 |
period covered by a report which was made in anticipation of the | 901 |
tax liability required to be reported on that report. | 902 |
"Tax liability" as used in division (A) of this section means | 903 |
the total gross tax liability of an A-1 or B-1 permit holder and | 904 |
any other persons for the period covered by a report before any | 905 |
allowance for credits and discount. | 906 |
(B) Every A-1 permit holder in this state, every bottler, | 907 |
importer, wholesale dealer, broker, producer, or manufacturer of | 908 |
beer outside this state and within the United States, | 909 |
B-1 permit holder importing beer from any manufacturer, bottler, | 910 |
person, or group of persons however organized outside the United | 911 |
States, and every S permit holder, on or before the tenth day of | 912 |
each month, shall make and file a report for the preceding month | 913 |
upon a form prescribed by the tax commissioner which report shall | 914 |
show the amount of beer produced, sold, and distributed for sale | 915 |
in this state by the A-1 permit holder, sold and distributed for | 916 |
sale in this state by each manufacturer, bottler, importer, | 917 |
wholesale dealer, or broker outside this state and within the | 918 |
United States, | 919 |
from outside the United States and sold and distributed for sale | 920 |
in this state by the B-1 permit holder or importer, and the amount | 921 |
of beer sold in this state by the S permit holder. | 922 |
The report shall be filed by mailing it to the tax | 923 |
commissioner, together with payment of the tax levied by sections | 924 |
4301.42 and 4305.01 of the Revised Code shown to be due on the | 925 |
report after deduction of advance payment credits and any | 926 |
additional credits or discounts provided for under this section. | 927 |
(C)(1) Every A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S permit | 928 |
holder in this state, on or before the eighteenth day of each | 929 |
month, shall make and file a report with the tax commissioner upon | 930 |
a form prescribed by the tax commissioner which report shall show, | 931 |
on the report of each A-2, A-4, B-2a, and S permit holder the | 932 |
amount of wine, cider, and mixed beverages produced and sold, or | 933 |
sold in this state by each such A-2, A-4, B-2a, and S permit | 934 |
holder for the next preceding calendar month and such other | 935 |
information as the tax commissioner requires, and on the report of | 936 |
each such B-2, B-3, B-4, and B-5 permit holder the amount of wine, | 937 |
cider, and mixed beverages purchased from an importer, broker, | 938 |
wholesale dealer, producer, or manufacturer located outside this | 939 |
state and sold and distributed in this state by such B-2, B-3, | 940 |
B-4, and B-5 permit holder, for the next preceding calendar month | 941 |
and such other information as the tax commissioner requires. | 942 |
(2) Every such A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S | 943 |
permit holder in this state shall remit with the report the tax | 944 |
levied by sections 4301.43 and, if applicable, 4301.432 of the | 945 |
Revised Code less a discount thereon of three per cent of the | 946 |
total tax so levied and paid, provided the return is filed | 947 |
together with remittance of the amount of tax shown to be due | 948 |
thereon, within the time prescribed. Any permit holder or other | 949 |
persons who fail to file a report under this section, for each day | 950 |
the person so fails, may be required to forfeit and pay into the | 951 |
state treasury the sum of one dollar as revenue arising from the | 952 |
tax imposed by sections 4301.42, 4301.43, 4301.432, and 4305.01 of | 953 |
the Revised Code, and that sum may be collected by assessment in | 954 |
the manner provided in section 4305.13 of the Revised Code. | 955 |
(3) If the tax commissioner determines that the quantity | 956 |
reported by a person does not warrant monthly reporting, the | 957 |
commissioner may authorize the filing of returns and the payment | 958 |
of the tax required by this section for periods longer than one | 959 |
month. | 960 |
(D) Every B-1 permit holder and importer in this state | 961 |
importing beer from any manufacturer, bottler, person, or group of | 962 |
persons however organized, outside the United States, if required | 963 |
by the tax commissioner shall post a bond payable to the state in | 964 |
such form and amount as the commissioner prescribes with surety to | 965 |
the satisfaction of the tax commissioner, conditioned upon the | 966 |
payment to the tax commissioner of taxes levied by sections | 967 |
4301.42 and 4305.01 of the Revised Code. | 968 |
(E) No such wine, beer, cider, or mixed beverages sold or | 969 |
distributed in this state shall be taxed more than once under | 970 |
sections 4301.42, 4301.43, and 4305.01 of the Revised Code. | 971 |
(F) As used in this section: | 972 |
(1) "Cider" has the same meaning as in section 4301.01 of the | 973 |
Revised Code. | 974 |
(2) "Wine" has the same meaning as in section 4301.01 of the | 975 |
Revised Code, except that "wine" does not include cider. | 976 |
(G) All money collected by the tax commissioner under this | 977 |
section shall be paid to the treasurer of state as revenue arising | 978 |
from the taxes levied by sections 4301.42, 4301.43, 4301.432, and | 979 |
4305.01 of the Revised Code. | 980 |
Sec. 4701.01. As used in this chapter: | 981 |
(A) "Practice of public accounting" means performing or | 982 |
offering to perform any engagement that will result in the | 983 |
issuance of an attest report and, with respect to a person who | 984 |
holds a CPA certificate, PA registration, foreign certificate, or | 985 |
firm registration, any other services involving the use of | 986 |
accounting or auditing skills as established by rules adopted by | 987 |
the accountancy board. | 988 |
(B) "Public accounting firm" means a sole proprietorship, a | 989 |
partnership, a limited liability company, a professional | 990 |
association, a corporation-for-profit, or any other business | 991 |
organization that is engaged in the practice of public accounting | 992 |
in this state. | 993 |
(C) "Opinion report" means any opinion on a financial | 994 |
statement that is expressed in accordance with generally accepted | 995 |
auditing standards as to the fairness of presentation of | 996 |
information and that is used for guidance in financial | 997 |
transactions, for accounting, or for assessing the status or | 998 |
performance of commercial and noncommercial enterprises, whether | 999 |
public, private, or governmental. | 1000 |
(D) "Peer review" means a study, appraisal, or review of one | 1001 |
or more aspects of the professional work of a public accounting | 1002 |
firm that meets the standards and requirements set forth by the | 1003 |
accountancy board. | 1004 |
(E) "Review report" means either of the following: | 1005 |
(1) Any review report on a financial statement that is issued | 1006 |
with respect to any of the following: | 1007 |
(a) Interim financial information in accordance with | 1008 |
generally accepted auditing standards; | 1009 |
(b) The financial information of a nonpublic entity in | 1010 |
accordance with statements on standards for accounting and review | 1011 |
services; | 1012 |
(c) The reliability of another party's written assertion in | 1013 |
accordance with statements on standards for attestation | 1014 |
engagements. | 1015 |
(2) Any other review report on a financial statement that is | 1016 |
not described in division (E)(1) of this section and that is | 1017 |
issued in accordance with standards promulgated by the American | 1018 |
institute of certified public accountants. | 1019 |
(F) "Compilation report" means any compilation report on a | 1020 |
financial statement that is issued with respect to financial | 1021 |
information of a nonpublic entity in accordance with statements on | 1022 |
standards for accounting and review services as promulgated by the | 1023 |
American institute of certified public accountants. | 1024 |
(G) "Examination report" means any examination report on a | 1025 |
financial statement that is issued with respect to another party's | 1026 |
written assertion in accordance with statements on standards for | 1027 |
attestation engagements as promulgated by the American institute | 1028 |
of certified public accountants. | 1029 |
(H) "Agreed-upon procedures report" means any report that is | 1030 |
on a financial statement and that is based on agreed-upon | 1031 |
procedures issued with respect to another party's written | 1032 |
assertion in accordance with statements on standards for | 1033 |
attestation engagements as promulgated by the American institute | 1034 |
of certified public accountants. | 1035 |
(I) "Qualified firm" means a sole proprietorship, | 1036 |
partnership, professional association, corporation-for-profit, | 1037 |
limited liability company, or other business organization in which | 1038 |
the individuals who own a majority of the business organization | 1039 |
interests in the business organization and control the business | 1040 |
organization hold an Ohio permit or a foreign certificate. | 1041 |
(J) "Own" means any direct or indirect ownership of an equity | 1042 |
interest in a public accounting firm or qualified firm. | 1043 |
(K) "Control" or "controlled" means the right to exercise the | 1044 |
majority of the voting equity interests in a public accounting | 1045 |
firm or qualified firm with respect to any matter. | 1046 |
(L) "Equity interest" means any capital interest or profit | 1047 |
interest in a sole proprietorship, partnership, professional | 1048 |
association, corporation-for-profit, limited liability company, or | 1049 |
other business organization. | 1050 |
(M) "Ohio permit" means a permit to practice public | 1051 |
accounting issued under division (A) of section 4701.10 of the | 1052 |
Revised Code that is not revoked or suspended. | 1053 |
(N) "Ohio registration" means the registration under division | 1054 |
(B) of section 4701.10 of the Revised Code of a holder of a CPA | 1055 |
certificate or PA registration who is not in the practice of | 1056 |
public accounting in this state. | 1057 |
(O) "Firm registration" or "registered firm" means | 1058 |
registration as a public accounting firm under section 4701.04 of | 1059 |
the Revised Code. | 1060 |
(P) "PA registration" means registration as a public | 1061 |
accountant under section 4701.07 of the Revised Code that is not | 1062 |
revoked or suspended. | 1063 |
(Q) "CPA certificate" means a certificate issued under | 1064 |
section 4701.06 or 4701.061 of the Revised Code that is not | 1065 |
revoked or suspended. | 1066 |
(R) "Foreign certificate" means a license, permit, | 1067 |
certificate | 1068 |
accountant
| 1069 |
the holder to practice public accounting in that state, is valid, | 1070 |
is in good standing, and has not expired. | 1071 |
(S) "Attest report" means an opinion report, review report, | 1072 |
compilation report, examination report, agreed-upon procedures | 1073 |
report, or any similar report prepared in accordance with | 1074 |
standards established by the American institute of certified | 1075 |
public accountants with respect to a financial statement or other | 1076 |
financial information. | 1077 |
(T) "Person" means any individual, corporation-for-profit, | 1078 |
business trust, estate, partnership, limited liability company, | 1079 |
professional association, or other business organization. | 1080 |
(U) Technical terms that define specific public accounting | 1081 |
engagements have the same meanings as in the professional | 1082 |
standards promulgated by the American institute of certified | 1083 |
public accountants. | 1084 |
(V)(1) "Good moral character" means the combination of | 1085 |
personal traits of honesty, integrity, attention to duty, | 1086 |
forthrightness, and self-restraint that enables a person to | 1087 |
discharge the duties of the accounting profession fully and | 1088 |
faithfully. | 1089 |
(2) A history of dishonest acts or felonious acts or | 1090 |
convictions is sufficient to prove lack of good moral character if | 1091 |
that history demonstrates by a preponderance of the evidence that | 1092 |
the person lacks one or more of the personal traits referred to in | 1093 |
division (V)(1) of this section. A person who has a felony | 1094 |
conviction related to one or more of those personal traits bears | 1095 |
the burden of establishing the person's present good moral | 1096 |
character, including the person's full and complete rehabilitation | 1097 |
subsequent to the conviction. If less than one year has passed | 1098 |
since the completion of the person's sentence on a felony | 1099 |
conviction, including any period under a community control | 1100 |
sanction or post-release control, the board may delay any | 1101 |
determination of the person's good moral character until one year | 1102 |
has passed from the time of the completion of that sentence. | 1103 |
(3) In determining whether a person who has a felony | 1104 |
conviction has met the person's burden of proof described in | 1105 |
division (V)(2) of this section, the accountancy board may | 1106 |
consider the following factors: | 1107 |
(a) The person's path toward professional licensing following | 1108 |
completion of the person's sentence; | 1109 |
(b) The nature and degree of the person's academic | 1110 |
achievements; | 1111 |
(c) The nature and degree of the person's employment | 1112 |
following completion of the person's sentence; | 1113 |
(d) The person's degree of self-sufficiency following | 1114 |
completion of the person's sentence; | 1115 |
(e) The nature and degree of the person's other | 1116 |
responsibilities following completion of the person's sentence; | 1117 |
(f) The person's conviction for any other criminal offense | 1118 |
since completion of the person's sentence for the person's first | 1119 |
felony conviction; | 1120 |
(g) Whether the person's application or presentation contains | 1121 |
any inconsistencies or misleading explanations that convince the | 1122 |
board that either the person or the person's attorney is trying to | 1123 |
keep the board from acquiring a true, though damaging, | 1124 |
representation of the person's character; | 1125 |
(h) The nature and circumstances of the dishonest acts or | 1126 |
felonious acts or convictions of the person; | 1127 |
(i) Any other specifically identifiable information that the | 1128 |
board determines to be relevant to the person's ability to | 1129 |
discharge the duties of the accounting profession fully and | 1130 |
faithfully. | 1131 |
Sec. 4701.04. (A) No public accounting firm located in this | 1132 |
state shall engage in the practice of public accounting in this | 1133 |
state unless it registers with the accountancy board and pays a | 1134 |
registration fee set by the board. | 1135 |
(B) Public accounting firms shall apply for initial | 1136 |
registration within ninety days after formation or within ninety | 1137 |
days after the commencement of practicing public accounting in | 1138 |
this state. All public accounting firms shall renew their | 1139 |
registration triennially. All public accounting firms shall submit | 1140 |
with their initial and renewal registration applications all of | 1141 |
the following: | 1142 |
(1) A list of the names, addresses, and certificate or | 1143 |
registration numbers of all individuals who hold an Ohio permit | 1144 |
and who own an equity interest in the public accounting firm or | 1145 |
are employed by the public accounting firm; | 1146 |
(2) A list of the names and addresses of each person who does | 1147 |
not hold an Ohio permit or a foreign certificate and who owns an | 1148 |
equity interest in the public accounting firm if the person's | 1149 |
principal place of business is located in this state; | 1150 |
(3) A statement that the public accounting firm and each | 1151 |
person who owns an equity interest in the public accounting firm | 1152 |
or is employed by the public accounting firm and who does not hold | 1153 |
an Ohio permit or a foreign certificate is in compliance with | 1154 |
divisions (C) and (D) of this section. | 1155 |
(C) A public accounting firm shall satisfy all of the | 1156 |
following requirements in order to register: | 1157 |
(1) Except as provided in division (C)(5) of this section, | 1158 |
each partner, shareholder, member, or other person who owns an | 1159 |
equity interest in the public accounting firm shall hold an Ohio | 1160 |
permit or a foreign certificate. | 1161 |
(2) The | 1162 |
firm
| 1163 |
designate an individual who holds an Ohio permit | 1164 |
1165 | |
of the firm. The public accounting firm shall identify this | 1166 |
individual to the board. | 1167 |
(3) Each individual in a public accounting firm who signs any | 1168 |
attest report issued from an office of the public accounting firm | 1169 |
located in this state shall hold an Ohio permit. | 1170 |
(4) An individual who owns an equity interest in the public | 1171 |
accounting firm or is employed by the public accounting firm and | 1172 |
who holds an Ohio permit or a foreign certificate, or a qualified | 1173 |
firm that owns an equity interest in the public accounting firm, | 1174 |
shall assume ultimate responsibility for any attest report issued | 1175 |
from an office of the public accounting firm located in this | 1176 |
state. | 1177 |
(5) Any person who does not hold an Ohio permit or a foreign | 1178 |
certificate and who holds an equity interest in the public | 1179 |
accounting firm shall satisfy the conditions set forth in division | 1180 |
(D) of this section. | 1181 |
(6) The public accounting firm shall provide for the transfer | 1182 |
of the equity interest owned by persons who do not hold an Ohio | 1183 |
permit or a foreign certificate to either the public accounting | 1184 |
firm or to another person who owns an equity interest in the firm | 1185 |
if a person who does not hold an Ohio permit or a foreign | 1186 |
certificate withdraws from or ceases to be employed by the public | 1187 |
accounting firm. The public accounting firm may make payments in | 1188 |
connection with the person's withdrawal from the firm to that | 1189 |
person or, if that person is deceased or dissolved, to the | 1190 |
person's estate or successor in interest. | 1191 |
(D) A person who does not hold an Ohio permit or a foreign | 1192 |
certificate may own an equity interest in a public accounting firm | 1193 |
if all of the following conditions are met: | 1194 |
(1) All of the individuals who hold an Ohio permit or a | 1195 |
foreign certificate and who own equity interests in the public | 1196 |
accounting firm, and qualified firms that own equity interests in | 1197 |
the public accounting firm, own, in the aggregate, a majority of | 1198 |
the equity interests in the public accounting firm and control the | 1199 |
public accounting firm. | 1200 |
(2) The person does not assume or use any titles or | 1201 |
designations specified in division (A) of section 4701.14 of the | 1202 |
Revised Code. The person may designate or refer to the person as a | 1203 |
shareholder, partner, member, principal, owner, or officer of the | 1204 |
public accounting firm and also may use any other title that the | 1205 |
board authorizes by rule. | 1206 |
(3) The person is not in violation of any standard regarding | 1207 |
the character or conduct of that person that the board establishes | 1208 |
by rule. | 1209 |
(4) The person's participation in the business of the public | 1210 |
accounting firm is the person's principal occupation and consists | 1211 |
of providing services to or on behalf of the public accounting | 1212 |
firm, and the person is not functioning solely or predominately as | 1213 |
a passive investor in the public accounting firm. | 1214 |
(5) | 1215 |
1216 |
| 1217 |
requirements that the board establishes by rule. | 1218 |
| 1219 |
registration, or certification issued by this state or another | 1220 |
state complies with the requirements of that license, | 1221 |
registration, or certification. | 1222 |
| 1223 |
American institute of certified public accountants or a comparable | 1224 |
code of professional conduct that the board adopts by rule. | 1225 |
| 1226 |
this chapter and the rules adopted by the board. | 1227 |
(E) A person who owns a voting equity interest in a public | 1228 |
accounting firm may not delegate, by proxy or otherwise, the duty | 1229 |
to exercise any voting rights to a person that does not hold an | 1230 |
Ohio permit or a foreign certificate or to a person that is not a | 1231 |
qualified firm. | 1232 |
(F) As a condition for initial or renewal registration of a | 1233 |
public accounting firm on and after January 1, 1993, the board, by | 1234 |
rule, shall require that each public accounting firm undergo a | 1235 |
peer review to determine the public accounting firm's degree of | 1236 |
compliance in the practice of public accounting with generally | 1237 |
accepted accounting principles, generally accepted auditing | 1238 |
standards, and other generally accepted technical standards as | 1239 |
defined by the board in rule, unless the public accounting firm | 1240 |
meets one of the exceptions in division (J) of this section. | 1241 |
(G) The board shall adopt rules establishing guidelines for | 1242 |
peer reviews, and may authorize an agent to administer all or part | 1243 |
of the board's peer review program and to assess a reasonable fee | 1244 |
to firms to cover the costs incurred by the agent for program | 1245 |
administration. The rules shall do all of the following: | 1246 |
(1) Designate a peer review committee consisting of | 1247 |
accounting professionals to serve as advisors to the board and to | 1248 |
ensure that the board's guidelines are followed. | 1249 |
1250 | |
1251 | |
1252 |
(2) Require that the peer review be conducted by a reviewer | 1253 |
that is both independent of the public accounting firm reviewed | 1254 |
and qualified pursuant to board rules; | 1255 |
(3) Require that the standards and practices applied by the | 1256 |
reviewer be at least as stringent as those applied by the American | 1257 |
institute of certified public accountants; | 1258 |
(4) Prohibit the use or disclosure of information obtained by | 1259 |
members of the board or a committee of peer reviewers during or in | 1260 |
connection with the peer review process for purposes other than | 1261 |
those related to determining the degree of compliance by the | 1262 |
public accounting firm with generally accepted accounting | 1263 |
principles, generally accepted auditing standards, and other | 1264 |
generally accepted technical standards as defined by the board in | 1265 |
rule. Division (G)(4) of this section does not apply to the use or | 1266 |
disclosure of information that is described in division (K)(3) of | 1267 |
this section or that is necessary to comply with any provision of | 1268 |
law. | 1269 |
(H)(1) If a peer review report indicates that a public | 1270 |
accounting firm does not comply with standards and practices set | 1271 |
forth in the rules adopted by the board
| 1272 |
its discretion, may | 1273 |
peer review report. If the board, | 1274 |
its authorized peer review program administrator, determines that | 1275 |
the public accounting firm does not comply with the standards and | 1276 |
practices, it may | 1277 |
following: | 1278 |
(a) Remedial | 1279 |
the following: | 1280 |
(i) Requiring employees of the public accounting firm to | 1281 |
complete general or specific continuing professional education | 1282 |
courses; | 1283 |
(ii) Requiring the public accounting firm to undergo peer | 1284 |
review more frequently than triennially and peer review that is | 1285 |
conducted in whole or part under the direct supervision of the | 1286 |
board or its designee; | 1287 |
(iii) Any other remedial action specified by the board | 1288 |
| 1289 |
1290 |
(b) An affidavit and supporting documentation from the public | 1291 |
accounting firm submitted within the time specified by the board | 1292 |
indicating completion of required remedial actions. | 1293 |
(2) If the board, or its authorized peer review program | 1294 |
administrator, determines that a public accounting firm has not | 1295 |
complied with any requirement ordered under division (H) of this | 1296 |
section, or if the board determines, after the review of a peer | 1297 |
review report, that the public accounting firm has a history of | 1298 |
noncompliance with standards and practices set forth in board | 1299 |
rules, the board may hold a hearing to determine the extent of the | 1300 |
firm's noncompliance. If the board, after conducting the hearing, | 1301 |
determines that the public accounting firm does not comply with | 1302 |
appropriate standards and practices, the board may issue an order | 1303 |
that imposes any disciplinary measure set forth in division (B) of | 1304 |
section 4701.16 of the Revised Code. | 1305 |
(3) Notwithstanding divisions (K)(1) and (2) of this section, | 1306 |
all matters relating to the procedures for determining compliance | 1307 |
with the standards and practices under division (H) | 1308 |
section are subject to Chapter 119. of the Revised Code, including | 1309 |
the notice and conduct of any hearing and the issuance and appeal | 1310 |
of any order. Remedial orders made under division (H)(1) of this | 1311 |
section are not subject to Chapter 119. of the Revised Code. | 1312 |
(I) The public accounting firm reviewed shall pay for any | 1313 |
peer review performed. | 1314 |
(J) The board may exempt a public accounting firm from the | 1315 |
requirement to undergo a peer review if the public accounting firm | 1316 |
submits to the board a written and notarized statement that the | 1317 |
public accounting firm meets at least one of the following grounds | 1318 |
for exemption identified in the statement: | 1319 |
(1) Within three years of the date of application for initial | 1320 |
or renewal registration, the public accounting firm has | 1321 |
1322 | |
conducted pursuant to standards not less stringent than the peer | 1323 |
review standards | 1324 |
certified public accountants. A peer review that does not comply | 1325 |
with standards and practices set forth in the rules adopted by the | 1326 |
board and that may subject a public accounting firm to remedial or | 1327 |
disciplinary action pursuant to division (H) of this section, does | 1328 |
not qualify as an acceptable peer review. The public accounting | 1329 |
firm shall submit to the board a copy of the results of the peer | 1330 |
review and any additional documentation required by the board. The | 1331 |
board shall not require submittal of the working papers related to | 1332 |
the peer review process. | 1333 |
(2) Within three years of the date of application for initial | 1334 |
or renewal registration, the public accounting firm has
| 1335 |
completed a peer review acceptable to the board that was conducted | 1336 |
in another state or foreign country. The public accounting firm | 1337 |
shall submit to the board a copy of the results of the peer review | 1338 |
and any additional documentation required by the board, including | 1339 |
a detailed report of the procedures and standards applied by the | 1340 |
reviewer. | 1341 |
(3) The public accounting firm has never practiced public | 1342 |
accounting in this state or any other state or foreign country | 1343 |
1344 | |
within eighteen months of initial registration, and will review | 1345 |
its registration with the board two years after initial | 1346 |
registration as specified in rules the board adopts. | 1347 |
(4) The public accounting firm, on a schedule as required by | 1348 |
rule adopted by the board, submits a report to the board that | 1349 |
states all of the following: | 1350 |
(a) The public accounting firm does not undertake any | 1351 |
engagement that will result in the issuance of an attest report or | 1352 |
other engagement that is subject to peer review in accordance with | 1353 |
division (F) of this section. | 1354 |
(b) | 1355 |
1356 | |
1357 |
| 1358 |
within ninety days after accepting any engagement that will result | 1359 |
in the issuance of any attest report or other engagement that is | 1360 |
subject to peer review in accordance with division (F) of this | 1361 |
section and will
| 1362 |
board within one year after the acceptance of an engagement of | 1363 |
that nature. | 1364 |
(5) Subject to the board's approval | 1365 |
1366 | |
in rules the board adopts, the public accounting firm is entitled | 1367 |
to an exemption. | 1368 |
(K) In any civil action, arbitration, or administrative | 1369 |
proceeding involving a public accounting firm, all of the | 1370 |
following shall apply: | 1371 |
(1) The proceedings, records, and work papers of any | 1372 |
reviewer, including board members and review committee members, | 1373 |
involved in the peer review process are privileged and not subject | 1374 |
to discovery, subpoena, or other means of legal process and may | 1375 |
not be introduced into evidence. | 1376 |
(2) No reviewer, including board members and review committee | 1377 |
members, involved in the peer review process shall be permitted or | 1378 |
required to testify as to any matters produced, presented, | 1379 |
disclosed, or discussed during or in connection with the peer | 1380 |
review process or shall be required to testify to any finding, | 1381 |
recommendation, evaluation, opinion, or other actions of those | 1382 |
committees or their members. | 1383 |
(3) No privilege exists under this section for either of the | 1384 |
following: | 1385 |
(a) Information presented or considered in the peer review | 1386 |
process that was otherwise available to the public; | 1387 |
(b) Materials prepared in connection with a particular | 1388 |
engagement merely because they subsequently are presented or | 1389 |
considered as part of the peer review process. | 1390 |
(L)(1) If a peer review report indicates that a public | 1391 |
accounting firm complies with standards and practices set forth in | 1392 |
rules adopted by the board
| 1393 |
documents and reports related to the peer review within thirty | 1394 |
days after the board completes its review of the report. | 1395 |
(2) If a peer review report indicates that a public | 1396 |
accounting firm does not comply with those standards and practices | 1397 |
set forth in rules adopted by the board, the board shall retain | 1398 |
all documents and reports related to the peer review until | 1399 |
completion of the next peer review that complies with standards | 1400 |
and practices set forth in rules adopted by the board pursuant to | 1401 |
division (G) of this section. The board also may use these | 1402 |
documents to determine a history of noncompliance with standards | 1403 |
and practices in any proceeding held under division (H)(2) of this | 1404 |
section. | 1405 |
Sec. 5703.061. Except as otherwise provided in this section, | 1406 |
the tax commissioner may cancel a debt owed to the state arising | 1407 |
from any tax administered by the commissioner if the total amount | 1408 |
of the debt does not exceed fifty dollars and if the debt consists | 1409 |
only of unpaid taxes due for a single reporting period and of any | 1410 |
penalty, interest, assessment, or other charge arising from such | 1411 |
unpaid taxes. The commissioner shall not cancel any debt that has | 1412 |
been certified to the attorney general under section 131.02 of the | 1413 |
Revised Code or that is subject to an appeal filed with the board | 1414 |
of tax appeals. | 1415 |
Sec. 5703.261. | 1416 |
(1) "Instrument" has the same meaning as in section 1303.03 | 1417 |
of the Revised Code. | 1418 |
(2) "Financial transaction device" has the same meaning as in | 1419 |
section 113.40 of the Revised Code. | 1420 |
(B) If a taxpayer or employer required by any tax | 1421 |
administered by the department of taxation to pay taxes, | 1422 |
penalties, | 1423 |
makes payment of the taxes, penalties, | 1424 |
charges with a | 1425 |
instrument that is determined to be nonnegotiable, or with any | 1426 |
financial transaction device that is declined, returned, or | 1427 |
dishonored, a penalty of fifty dollars shall be added to the | 1428 |
amount due. The penalty imposed by this section shall be assessed | 1429 |
and collected in the same manner as the taxes, penalties, | 1430 |
interest, or other charges. All or part of any penalty imposed | 1431 |
under this section may be abated by the tax commissioner. The | 1432 |
commissioner may assess only one penalty under this section | 1433 |
against the same instrument or the same financial transaction | 1434 |
device for the same payment. | 1435 |
Sec. 5703.37. (A)(1) Except as provided in division (B) of | 1436 |
this section, whenever service of a notice or order is required in | 1437 |
the manner provided in this section, a copy of the notice or order | 1438 |
shall be served upon the person affected thereby either by | 1439 |
personal service, by certified mail, or by a delivery service | 1440 |
authorized under section 5703.056 of the Revised Code that | 1441 |
notifies the tax commissioner of the date of delivery. | 1442 |
(2) | 1443 |
1444 | |
1445 | |
or order through one of the means provided in division (A)(1) of | 1446 |
this section, the commissioner may serve a notice or order upon | 1447 |
the person affected thereby through alternative means as provided | 1448 |
in this section, including, but not limited to, delivery by secure | 1449 |
electronic mail as provided in division (F) of this section. | 1450 |
Delivery by such means satisfies the requirements for delivery | 1451 |
under this section. | 1452 |
(B)(1)(a) If certified mail is returned because of an | 1453 |
undeliverable address, the commissioner shall first utilize | 1454 |
reasonable means to ascertain a new last known address, including | 1455 |
the use of a change of address service offered by the United | 1456 |
States postal service or an authorized delivery service under | 1457 |
section 5703.056 of the Revised Code. If, after using reasonable | 1458 |
means, the commissioner is unable to ascertain a new last known | 1459 |
address, the assessment is final for purposes of section 131.02 of | 1460 |
the Revised Code sixty days after the notice or order sent by | 1461 |
certified mail is first returned to the commissioner, and the | 1462 |
commissioner shall certify the notice or order, if applicable, to | 1463 |
the attorney general for collection under section 131.02 of the | 1464 |
Revised Code. | 1465 |
(b) Notwithstanding certification to the attorney general | 1466 |
under division (B)(1)(a) of this section, once the commissioner or | 1467 |
attorney general, or the designee of either, makes an initial | 1468 |
contact with the person to whom the notice or order is directed, | 1469 |
the person may protest an assessment by filing a petition for | 1470 |
reassessment within sixty days after the initial contact. The | 1471 |
certification of an assessment under division (B)(1)(a) of this | 1472 |
section is prima-facie evidence that delivery is complete and that | 1473 |
the notice or order is served. | 1474 |
(2) If mailing of a notice or order by certified mail is | 1475 |
returned for some cause other than an undeliverable address, the | 1476 |
1477 | |
mail. The notice or order shall show the date the commissioner | 1478 |
sends the notice or order and include the following statement: | 1479 |
"This notice or order is deemed to be served on the addressee | 1480 |
under applicable law ten days from the date this notice or order | 1481 |
was mailed by the commissioner as shown on the notice or order, | 1482 |
and all periods within which an appeal may be filed apply from and | 1483 |
after that date." | 1484 |
Unless the mailing is returned because of an undeliverable | 1485 |
address, the mailing of that information is prima-facie evidence | 1486 |
that delivery of the notice or order was completed ten days after | 1487 |
the commissioner sent the notice or order by ordinary mail and | 1488 |
that the notice or order was served. | 1489 |
If the ordinary mail is subsequently returned because of an | 1490 |
undeliverable address, the commissioner shall proceed under | 1491 |
division (B)(1)(a) of this section. A person may challenge the | 1492 |
presumption of delivery and service under this division in | 1493 |
accordance with division (C) of this section. | 1494 |
(C)(1) A person disputing the presumption of delivery and | 1495 |
service under division (B) of this section bears the burden of | 1496 |
proving by a preponderance of the evidence that the address to | 1497 |
which the notice or order was sent was not an address with which | 1498 |
the person was associated at the time the commissioner originally | 1499 |
mailed the notice or order by certified mail. For the purposes of | 1500 |
this section, a person is associated with an address at the time | 1501 |
the commissioner originally mailed the notice or order if, at that | 1502 |
time, the person was residing, receiving legal documents, or | 1503 |
conducting business at the address; or if, before that time, the | 1504 |
person had conducted business at the address and, when the notice | 1505 |
or order was mailed, the person's agent or the person's affiliate | 1506 |
was conducting business at the address. For the purposes of this | 1507 |
section, a person's affiliate is any other person that, at the | 1508 |
time the notice or order was mailed, owned or controlled at least | 1509 |
twenty per cent, as determined by voting rights, of the | 1510 |
addressee's business. | 1511 |
(2) If the person elects to protest an assessment certified | 1512 |
to the attorney general for collection, the person must do so | 1513 |
within sixty days after the attorney general's initial contact | 1514 |
with the person. The attorney general may enter into a compromise | 1515 |
with the person under sections 131.02 and 5703.06 of the Revised | 1516 |
Code if the person does not file a petition for reassessment with | 1517 |
the | 1518 |
(D) Nothing in this section prohibits the | 1519 |
the commissioner's designee from delivering a notice or order by | 1520 |
personal service. | 1521 |
(E) Collection actions taken pursuant to section 131.02 of | 1522 |
the Revised Code upon any assessment being challenged under | 1523 |
division (B)(1)(b) of this section shall be stayed upon the | 1524 |
pendency of an appeal under this section. If a petition for | 1525 |
reassessment is filed pursuant to this section on a claim that has | 1526 |
been certified to the attorney general for collection, the claim | 1527 |
shall be uncertified. | 1528 |
(F) The commissioner may serve a notice or order upon the | 1529 |
person affected by the notice or order through secure electronic | 1530 |
means only with the person's consent. The commissioner must inform | 1531 |
the recipient, electronically or by mail, that a notice or order | 1532 |
is available for electronic review and provide instructions to | 1533 |
access and print the notice or order. The recipient's electronic | 1534 |
access of the notice or order satisfies the requirements for | 1535 |
delivery under this section. If the recipient fails to access the | 1536 |
notice or order electronically within ten business days, the | 1537 |
notice or order shall be served upon the person through one of the | 1538 |
means provided in division (A)(1) of this section. | 1539 |
(G) As used in this section: | 1540 |
(1) "Last known address" means the address the department has | 1541 |
at the time the document is originally sent by certified mail, or | 1542 |
any address the department can ascertain using reasonable means | 1543 |
such as the use of a change of address service offered by the | 1544 |
United States postal service or an authorized delivery service | 1545 |
under section 5703.056 of the Revised Code. | 1546 |
(2) "Undeliverable address" means an address to which the | 1547 |
United States postal service or an authorized delivery service | 1548 |
under section 5703.056 of the Revised Code is not able to deliver | 1549 |
a notice or order, except when the reason for nondelivery is | 1550 |
because the addressee fails to acknowledge or accept the notice or | 1551 |
order. | 1552 |
Sec. 5703.47. (A) As used in this section, "federal | 1553 |
short-term rate" means the rate of the average market yield on | 1554 |
outstanding marketable obligations of the United States with | 1555 |
remaining periods to maturity of three years or less, as | 1556 |
determined under section 1274 of the "Internal Revenue Code of | 1557 |
1986," 100 Stat. 2085, 26 U.S.C.A. 1274, for July of the current | 1558 |
year. | 1559 |
(B) On the fifteenth day of October of each year, the tax | 1560 |
commissioner shall determine the federal short-term rate. For | 1561 |
purposes of any section of the Revised Code requiring interest to | 1562 |
be computed at the rate per annum required by this section, the | 1563 |
rate determined by the commissioner under this section, rounded to | 1564 |
the nearest whole number per cent, plus three per cent, shall be | 1565 |
the interest rate per annum used in making the computation for | 1566 |
interest that accrues during the following calendar year. For the | 1567 |
purposes of sections 5719.041 and 5731.23 of the Revised Code, | 1568 |
references to the "federal short-term rate" are references to the | 1569 |
federal short-term rate as determined by the tax commissioner | 1570 |
under this section rounded to the nearest whole number per cent. | 1571 |
(C) Within ten days after the interest rate per annum is | 1572 |
determined under this section, the tax commissioner shall notify | 1573 |
the auditor of each county | 1574 |
Sec. 5705.313. (A)(1) Whenever a board of county | 1575 |
commissioners adopts a resolution pursuant to section 5739.021 or | 1576 |
5739.026 of the Revised Code to levy or increase the rate of a | 1577 |
sales tax, the board may adopt an accompanying resolution reducing | 1578 |
the rate of any property tax the county currently is levying for | 1579 |
current expenses within the ten-mill limitation or amending a | 1580 |
previously adopted accompanying resolution increasing the amount | 1581 |
of an existing reduction made under this division. | 1582 |
(2) At any time after a board of county commissioners has | 1583 |
adopted a resolution pursuant to section 5739.021 or 5739.026 of | 1584 |
the Revised Code to levy or increase the rate of the sales tax, | 1585 |
the board may adopt another resolution reducing the rate of any | 1586 |
property tax the county currently is levying for current expenses | 1587 |
within the ten-mill limitation or amending a previously adopted | 1588 |
accompanying resolution increasing the amount of an existing | 1589 |
reduction made under this division. This resolution may be adopted | 1590 |
at any time during which the county is levying the sales tax under | 1591 |
section 5739.021 or 5739.026 of the Revised Code. | 1592 |
The rate reduction under division (A)(1) or (2) of this | 1593 |
section may be any amount, provided it does not reduce the annual | 1594 |
property tax revenue for current expenses within the ten-mill | 1595 |
limitation by more than the amount of annual revenue the | 1596 |
commissioners estimate the sales tax levy to generate. The | 1597 |
resolution shall set forth the current millage rate for current | 1598 |
expenses of the county within the ten-mill limitation; the number | 1599 |
of such mills not currently levied under this division, if any; | 1600 |
the number of such mills currently levied that will not be levied | 1601 |
until a resolution is adopted under division (C) of this section | 1602 |
or the expiration of the specified number of years the rate is not | 1603 |
to be levied, and the tax year in which the rate reduction shall | 1604 |
first apply. The resolution may state that the property tax rate | 1605 |
reduction will be for a specified number of years. A copy of the | 1606 |
resolution shall be certified to the county auditor. | 1607 |
(B) Notwithstanding any other provision of law, whenever a | 1608 |
board of county commissioners adopts a resolution under division | 1609 |
(A) of this section, no other taxing unit may levy any portion of | 1610 |
the rate the county does not levy until the expiration of the | 1611 |
specified number of years that such portion of the rate reduction | 1612 |
is in effect as set forth in the resolution, except as may be | 1613 |
required by the county budget commission pursuant to division (D) | 1614 |
of section 5705.31 of the Revised Code to provide for the levies | 1615 |
required in division (B) of that section for debt charges of a | 1616 |
subdivision or taxing unit. | 1617 |
(C) At any time a rate reduction is in effect the board of | 1618 |
county commissioners may, by two-thirds vote of its members, adopt | 1619 |
a resolution increasing the rate of the levy by any amount up to | 1620 |
the rate at which it was levied prior to its rate reduction under | 1621 |
this section. The board shall then immediately certify its action | 1622 |
to the county auditor. If the commissioners increase the rate to | 1623 |
the full rate at which it was levied prior to its rate reduction | 1624 |
under this section, this section shall thereupon cease to apply to | 1625 |
that county until another resolution is adopted pursuant to | 1626 |
division (A)(1) or (2) of this section. | 1627 |
Sec. 5709.084. Real and personal property comprising a | 1628 |
convention center that is constructed or, in the case of personal | 1629 |
property, acquired, after January 1, 2010, are exempt from | 1630 |
taxation if the convention center is located in a county having a | 1631 |
population, when construction of the convention center commences, | 1632 |
of more than one million two hundred thousand according to the | 1633 |
most recent federal decennial census, and if the convention | 1634 |
center, or the land upon which the convention center is situated, | 1635 |
is owned or leased by the county. For the purposes of this | 1636 |
section, construction of the convention center commences upon the | 1637 |
earlier of issuance of debt to finance all or a portion of the | 1638 |
convention center, demolition of existing structures on the site, | 1639 |
or grading of the site in preparation for construction. | 1640 |
Real and personal property comprising a convention center | 1641 |
owned by the largest city in a county having a population greater | 1642 |
than seven hundred thousand but less than nine hundred thousand | 1643 |
according to the most recent federal decennial census is exempt | 1644 |
from taxation, regardless of whether the property is leased to or | 1645 |
otherwise operated or managed by a person other than the city. | 1646 |
Real and personal property comprising a convention center or | 1647 |
arena owned by the largest city in a county having a population | 1648 |
greater than two hundred thirty-five thousand but less than three | 1649 |
hundred thousand according to the most recent federal decennial | 1650 |
census at the time of the construction of the convention center or | 1651 |
arena is exempt from taxation, regardless of whether the property | 1652 |
is leased to or otherwise operated or managed by a person other | 1653 |
than the city. | 1654 |
As used in this section, "convention center" | 1655 |
have the same
| 1656 |
Revised Code. | 1657 |
Sec. 5709.40. (A) As used in this section: | 1658 |
(1) "Blighted area" and "impacted city" have the same | 1659 |
meanings as in section 1728.01 of the Revised Code. | 1660 |
(2) "Business day" means a day of the week excluding | 1661 |
Saturday, Sunday, and a legal holiday as defined under section | 1662 |
1.14 of the Revised Code. | 1663 |
(3) "Housing renovation" means a project carried out for | 1664 |
residential purposes. | 1665 |
(4) "Improvement" means the increase in the assessed value of | 1666 |
any real property that would first appear on the tax list and | 1667 |
duplicate of real and public utility property after the effective | 1668 |
date of an ordinance adopted under this section were it not for | 1669 |
the exemption granted by that ordinance. | 1670 |
(5) "Incentive district" means an area not more than three | 1671 |
hundred acres in size enclosed by a continuous boundary in which a | 1672 |
project is being, or will be, undertaken and having one or more of | 1673 |
the following distress characteristics: | 1674 |
(a) At least fifty-one per cent of the residents of the | 1675 |
district have incomes of less than eighty per cent of the median | 1676 |
income of residents of the political subdivision in which the | 1677 |
district is located, as determined in the same manner specified | 1678 |
under section 119(b) of the "Housing and Community Development Act | 1679 |
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended; | 1680 |
(b) The average rate of unemployment in the district during | 1681 |
the most recent twelve-month period for which data are available | 1682 |
is equal to at least one hundred fifty per cent of the average | 1683 |
rate of unemployment for this state for the same period. | 1684 |
(c) At least twenty per cent of the people residing in the | 1685 |
district live at or below the poverty level as defined in the | 1686 |
federal Housing and Community Development Act of 1974, 42 U.S.C. | 1687 |
5301, as amended, and regulations adopted pursuant to that act. | 1688 |
(d) The district is a blighted area. | 1689 |
(e) The district is in a situational distress area as | 1690 |
designated by the director of development under division (F) of | 1691 |
section 122.23 of the Revised Code. | 1692 |
(f) As certified by the engineer for the political | 1693 |
subdivision, the public infrastructure serving the district is | 1694 |
inadequate to meet the development needs of the district as | 1695 |
evidenced by a written economic development plan or urban renewal | 1696 |
plan for the district that has been adopted by the legislative | 1697 |
authority of the subdivision. | 1698 |
(g) The district is comprised entirely of unimproved land | 1699 |
that is located in a distressed area as defined in section 122.23 | 1700 |
of the Revised Code. | 1701 |
(6) "Project" means development activities undertaken on one | 1702 |
or more parcels, including, but not limited to, construction, | 1703 |
expansion, and alteration of buildings or structures, demolition, | 1704 |
remediation, and site development, and any building or structure | 1705 |
that results from those activities. | 1706 |
(7) "Public infrastructure improvement" includes, but is not | 1707 |
limited to, public roads and highways; water and sewer lines; | 1708 |
environmental remediation; land acquisition, including acquisition | 1709 |
in aid of industry, commerce, distribution, or research; | 1710 |
demolition, including demolition on private property when | 1711 |
determined to be necessary for economic development purposes; | 1712 |
stormwater and flood remediation projects, including such projects | 1713 |
on private property when determined to be necessary for public | 1714 |
health, safety, and welfare; the provision of gas, electric, and | 1715 |
communications service facilities; and the enhancement of public | 1716 |
waterways through improvements that allow for greater public | 1717 |
access. | 1718 |
(B) The legislative authority of a municipal corporation, by | 1719 |
ordinance, may declare improvements to certain parcels of real | 1720 |
property located in the municipal corporation to be a public | 1721 |
purpose. Improvements with respect to a parcel that is used or to | 1722 |
be used for residential purposes may be declared a public purpose | 1723 |
under this division only if the parcel is located in a blighted | 1724 |
area of an impacted city. Except with the approval under division | 1725 |
(D) of this section of the board of education of each city, local, | 1726 |
or exempted village school district within which the improvements | 1727 |
are located, not more than seventy-five per cent of an improvement | 1728 |
thus declared to be a public purpose may be exempted from real | 1729 |
property taxation for a period of not more than ten years. The | 1730 |
ordinance shall specify the percentage of the improvement to be | 1731 |
exempted from taxation and the life of the exemption. | 1732 |
An ordinance adopted or amended under this division shall | 1733 |
designate the specific public infrastructure improvements made, to | 1734 |
be made, or in the process of being made by the municipal | 1735 |
corporation that directly benefit, or that once made will directly | 1736 |
benefit, the parcels for which improvements are declared to be a | 1737 |
public purpose. The service payments provided for in section | 1738 |
5709.42 of the Revised Code shall be used to finance the public | 1739 |
infrastructure improvements designated in the ordinance, for the | 1740 |
purpose described in division (D)(1) of this section or as | 1741 |
provided in section 5709.43 of the Revised Code. | 1742 |
(C)(1) The legislative authority of a municipal corporation | 1743 |
may adopt an ordinance creating an incentive district and | 1744 |
declaring improvements to parcels within the district to be a | 1745 |
public purpose and, except as provided in division (F) of this | 1746 |
section, exempt from taxation as provided in this section, but no | 1747 |
legislative authority of a municipal corporation that has a | 1748 |
population that exceeds twenty-five thousand, as shown by the most | 1749 |
recent federal decennial census, shall adopt an ordinance that | 1750 |
creates an incentive district if the sum of the taxable value of | 1751 |
real property in the proposed district for the preceding tax year | 1752 |
and the taxable value of all real property in the municipal | 1753 |
corporation that would have been taxable in the preceding year | 1754 |
were it not for the fact that the property was in an existing | 1755 |
incentive district and therefore exempt from taxation exceeds | 1756 |
twenty-five per cent of the taxable value of real property in the | 1757 |
municipal corporation for the preceding tax year. The ordinance | 1758 |
shall delineate the boundary of the district and specifically | 1759 |
identify each parcel within the district. A district may not | 1760 |
include any parcel that is or has been exempted from taxation | 1761 |
under division (B) of this section or that is or has been within | 1762 |
another district created under this division. An ordinance may | 1763 |
create more than one such district, and more than one ordinance | 1764 |
may be adopted under division (C)(1) of this section. | 1765 |
(2) Not later than thirty days prior to adopting an ordinance | 1766 |
under division (C)(1) of this section, if the municipal | 1767 |
corporation intends to apply for exemptions from taxation under | 1768 |
section 5709.911 of the Revised Code on behalf of owners of real | 1769 |
property located within the proposed incentive district, the | 1770 |
legislative authority of a municipal corporation shall conduct a | 1771 |
public hearing on the proposed ordinance. Not later than thirty | 1772 |
days prior to the public hearing, the legislative authority shall | 1773 |
give notice of the public hearing and the proposed ordinance by | 1774 |
first class mail to every real property owner whose property is | 1775 |
located within the boundaries of the proposed incentive district | 1776 |
that is the subject of the proposed ordinance. | 1777 |
(3)(a) An ordinance adopted under division (C)(1) of this | 1778 |
section shall specify the life of the incentive district and the | 1779 |
percentage of the improvements to be exempted, shall designate the | 1780 |
public infrastructure improvements made, to be made, or in the | 1781 |
process of being made, that benefit or serve, or, once made, will | 1782 |
benefit or serve parcels in the district. The ordinance also shall | 1783 |
identify one or more specific projects being, or to be, undertaken | 1784 |
in the district that place additional demand on the public | 1785 |
infrastructure improvements designated in the ordinance. The | 1786 |
project identified may, but need not be, the project under | 1787 |
division (C)(3)(b) of this section that places real property in | 1788 |
use for commercial or industrial purposes. Except as otherwise | 1789 |
permitted under that division, the service payments provided for | 1790 |
in section 5709.42 of the Revised Code shall be used to finance | 1791 |
the designated public infrastructure improvements, for the purpose | 1792 |
described in division (D)(1) or (E) of this section, or as | 1793 |
provided in section 5709.43 of the Revised Code. | 1794 |
An ordinance adopted under division (C)(1) of this section on | 1795 |
or after March 30, 2006, shall not designate police or fire | 1796 |
equipment as public infrastructure improvements, and no service | 1797 |
payment provided for in section 5709.42 of the Revised Code and | 1798 |
received by the municipal corporation under the ordinance shall be | 1799 |
used for police or fire equipment. | 1800 |
(b) An ordinance adopted under division (C)(1) of this | 1801 |
section may authorize the use of service payments provided for in | 1802 |
section 5709.42 of the Revised Code for the purpose of housing | 1803 |
renovations within the incentive district, provided that the | 1804 |
ordinance also designates public infrastructure improvements that | 1805 |
benefit or serve the district, and that a project within the | 1806 |
district places real property in use for commercial or industrial | 1807 |
purposes. Service payments may be used to finance or support | 1808 |
loans, deferred loans, and grants to persons for the purpose of | 1809 |
housing renovations within the district. The ordinance shall | 1810 |
designate the parcels within the district that are eligible for | 1811 |
housing renovation. The ordinance shall state separately the | 1812 |
amounts or the percentages of the expected aggregate service | 1813 |
payments that are designated for each public infrastructure | 1814 |
improvement and for the general purpose of housing renovations. | 1815 |
(4) Except with the approval of the board of education of | 1816 |
each city, local, or exempted village school district within the | 1817 |
territory of which the incentive district is or will be located, | 1818 |
and subject to division (E) of this section, the life of an | 1819 |
incentive district shall not exceed ten years, and the percentage | 1820 |
of improvements to be exempted shall not exceed seventy-five per | 1821 |
cent. With approval of the board of education, the life of a | 1822 |
district may be not more than thirty years, and the percentage of | 1823 |
improvements to be exempted may be not more than one hundred per | 1824 |
cent. The approval of a board of education shall be obtained in | 1825 |
the manner provided in division (D) of this section. | 1826 |
(D)(1) If the ordinance declaring improvements to a parcel to | 1827 |
be a public purpose or creating an incentive district specifies | 1828 |
that payments in lieu of taxes provided for in section 5709.42 of | 1829 |
the Revised Code shall be paid to the city, local, or exempted | 1830 |
village, and joint vocational school district in which the parcel | 1831 |
or incentive district is located in the amount of the taxes that | 1832 |
would have been payable to the school district if the improvements | 1833 |
had not been exempted from taxation, the percentage of the | 1834 |
improvement that may be exempted from taxation may exceed | 1835 |
seventy-five per cent, and the exemption may be granted for up to | 1836 |
thirty years, without the approval of the board of education as | 1837 |
otherwise required under division (D)(2) of this section. | 1838 |
(2) Improvements with respect to a parcel may be exempted | 1839 |
from taxation under division (B) of this section, and improvements | 1840 |
to parcels within an incentive district may be exempted from | 1841 |
taxation under division (C) of this section, for up to ten years | 1842 |
or, with the approval under this paragraph of the board of | 1843 |
education of the city, local, or exempted village school district | 1844 |
within which the parcel or district is located, for up to thirty | 1845 |
years. The percentage of the improvement exempted from taxation | 1846 |
may, with such approval, exceed seventy-five per cent, but shall | 1847 |
not exceed one hundred per cent. Not later than forty-five | 1848 |
business days prior to adopting an ordinance under this section | 1849 |
declaring improvements to be a public purpose that is subject to | 1850 |
approval by a board of education under this division, the | 1851 |
legislative authority shall deliver to the board of education a | 1852 |
notice stating its intent to adopt an ordinance making that | 1853 |
declaration. The notice regarding improvements with respect to a | 1854 |
parcel under division (B) of this section shall identify the | 1855 |
parcels for which improvements are to be exempted from taxation, | 1856 |
provide an estimate of the true value in money of the | 1857 |
improvements, specify the period for which the improvements would | 1858 |
be exempted from taxation and the percentage of the improvement | 1859 |
that would be exempted, and indicate the date on which the | 1860 |
legislative authority intends to adopt the ordinance. The notice | 1861 |
regarding improvements to parcels within an incentive district | 1862 |
under division (C) of this section shall delineate the boundaries | 1863 |
of the district, specifically identify each parcel within the | 1864 |
district, identify each anticipated improvement in the district, | 1865 |
provide an estimate of the true value in money of each such | 1866 |
improvement, specify the life of the district and the percentage | 1867 |
of improvements that would be exempted, and indicate the date on | 1868 |
which the legislative authority intends to adopt the ordinance. | 1869 |
The board of education, by resolution adopted by a majority of the | 1870 |
board, may approve the exemption for the period or for the | 1871 |
exemption percentage specified in the notice; may disapprove the | 1872 |
exemption for the number of years in excess of ten, may disapprove | 1873 |
the exemption for the percentage of the improvement to be exempted | 1874 |
in excess of seventy-five per cent, or both; or may approve the | 1875 |
exemption on the condition that the legislative authority and the | 1876 |
board negotiate an agreement providing for compensation to the | 1877 |
school district equal in value to a percentage of the amount of | 1878 |
taxes exempted in the eleventh and subsequent years of the | 1879 |
exemption period or, in the case of exemption percentages in | 1880 |
excess of seventy-five per cent, compensation equal in value to a | 1881 |
percentage of the taxes that would be payable on the portion of | 1882 |
the improvement in excess of seventy-five per cent were that | 1883 |
portion to be subject to taxation, or other mutually agreeable | 1884 |
compensation. If an agreement is negotiated between the | 1885 |
legislative authority and the board to compensate the school | 1886 |
district for all or part of the taxes exempted, including | 1887 |
agreements for payments in lieu of taxes under section 5709.42 of | 1888 |
the Revised Code, the legislative authority shall compensate the | 1889 |
joint vocational school district within which the parcel or | 1890 |
district is located at the same rate and under the same terms | 1891 |
received by the city, local, or exempted village school district. | 1892 |
(3) The board of education shall certify its resolution to | 1893 |
the legislative authority not later than fourteen days prior to | 1894 |
the date the legislative authority intends to adopt the ordinance | 1895 |
as indicated in the notice. If the board of education and the | 1896 |
legislative authority negotiate a mutually acceptable compensation | 1897 |
agreement, the ordinance may declare the improvements a public | 1898 |
purpose for the number of years specified in the ordinance or, in | 1899 |
the case of exemption percentages in excess of seventy-five per | 1900 |
cent, for the exemption percentage specified in the ordinance. In | 1901 |
either case, if the board and the legislative authority fail to | 1902 |
negotiate a mutually acceptable compensation agreement, the | 1903 |
ordinance may declare the improvements a public purpose for not | 1904 |
more than ten years, and shall not exempt more than seventy-five | 1905 |
per cent of the improvements from taxation. If the board fails to | 1906 |
certify a resolution to the legislative authority within the time | 1907 |
prescribed by this division, the legislative authority thereupon | 1908 |
may adopt the ordinance and may declare the improvements a public | 1909 |
purpose for up to thirty years, or, in the case of exemption | 1910 |
percentages proposed in excess of seventy-five per cent, for the | 1911 |
exemption percentage specified in the ordinance. The legislative | 1912 |
authority may adopt the ordinance at any time after the board of | 1913 |
education certifies its resolution approving the exemption to the | 1914 |
legislative authority, or, if the board approves the exemption on | 1915 |
the condition that a mutually acceptable compensation agreement be | 1916 |
negotiated, at any time after the compensation agreement is agreed | 1917 |
to by the board and the legislative authority. | 1918 |
(4) If a board of education has adopted a resolution waiving | 1919 |
its right to approve exemptions from taxation under this section | 1920 |
and the resolution remains in effect, approval of exemptions by | 1921 |
the board is not required under division (D) of this section. If a | 1922 |
board of education has adopted a resolution allowing a legislative | 1923 |
authority to deliver the notice required under division (D) of | 1924 |
this section fewer than forty-five business days prior to the | 1925 |
legislative authority's adoption of the ordinance, the legislative | 1926 |
authority shall deliver the notice to the board not later than the | 1927 |
number of days prior to such adoption as prescribed by the board | 1928 |
in its resolution. If a board of education adopts a resolution | 1929 |
waiving its right to approve agreements or shortening the | 1930 |
notification period, the board shall certify a copy of the | 1931 |
resolution to the legislative authority. If the board of education | 1932 |
rescinds such a resolution, it shall certify notice of the | 1933 |
rescission to the legislative authority. | 1934 |
(5) If the legislative authority is not required by division | 1935 |
(D) of this section to notify the board of education of the | 1936 |
legislative authority's intent to declare improvements to be a | 1937 |
public purpose, the legislative authority shall comply with the | 1938 |
notice requirements imposed under section 5709.83 of the Revised | 1939 |
Code, unless the board has adopted a resolution under that section | 1940 |
waiving its right to receive such a notice. | 1941 |
(E)(1) If a proposed ordinance under division (C)(1) of this | 1942 |
section exempts improvements with respect to a parcel within an | 1943 |
incentive district for more than ten years, or the percentage of | 1944 |
the improvement exempted from taxation exceeds seventy-five per | 1945 |
cent, not later than forty-five business days prior to adopting | 1946 |
the ordinance the legislative authority of the municipal | 1947 |
corporation shall deliver to the board of county commissioners of | 1948 |
the county within which the incentive district will be located a | 1949 |
notice that states its intent to adopt an ordinance creating an | 1950 |
incentive district. The notice shall include a copy of the | 1951 |
proposed ordinance, identify the parcels for which improvements | 1952 |
are to be exempted from taxation, provide an estimate of the true | 1953 |
value in money of the improvements, specify the period of time for | 1954 |
which the improvements would be exempted from taxation, specify | 1955 |
the percentage of the improvements that would be exempted from | 1956 |
taxation, and indicate the date on which the legislative authority | 1957 |
intends to adopt the ordinance. | 1958 |
(2) The board of county commissioners, by resolution adopted | 1959 |
by a majority of the board, may object to the exemption for the | 1960 |
number of years in excess of ten, may object to the exemption for | 1961 |
the percentage of the improvement to be exempted in excess of | 1962 |
seventy-five per cent, or both. If the board of county | 1963 |
commissioners objects, the board may negotiate a mutually | 1964 |
acceptable compensation agreement with the legislative authority. | 1965 |
In no case shall the compensation provided to the board exceed the | 1966 |
property taxes forgone due to the exemption. If the board of | 1967 |
county commissioners objects, and the board and legislative | 1968 |
authority fail to negotiate a mutually acceptable compensation | 1969 |
agreement, the ordinance adopted under division (C)(1) of this | 1970 |
section shall provide to the board compensation in the eleventh | 1971 |
and subsequent years of the exemption period equal in value to not | 1972 |
more than fifty per cent of the taxes that would be payable to the | 1973 |
county or, if the board's objection includes an objection to an | 1974 |
exemption percentage in excess of seventy-five per cent, | 1975 |
compensation equal in value to not more than fifty per cent of the | 1976 |
taxes that would be payable to the county, on the portion of the | 1977 |
improvement in excess of seventy-five per cent, were that portion | 1978 |
to be subject to taxation. The board of county commissioners shall | 1979 |
certify its resolution to the legislative authority not later than | 1980 |
thirty days after receipt of the notice. | 1981 |
(3) If the board of county commissioners does not object or | 1982 |
fails to certify its resolution objecting to an exemption within | 1983 |
thirty days after receipt of the notice, the legislative authority | 1984 |
may adopt the ordinance, and no compensation shall be provided to | 1985 |
the board of county commissioners. If the board timely certifies | 1986 |
its resolution objecting to the ordinance, the legislative | 1987 |
authority may adopt the ordinance at any time after a mutually | 1988 |
acceptable compensation agreement is agreed to by the board and | 1989 |
the legislative authority, or, if no compensation agreement is | 1990 |
negotiated, at any time after the legislative authority agrees in | 1991 |
the proposed ordinance to provide compensation to the board of | 1992 |
fifty per cent of the taxes that would be payable to the county in | 1993 |
the eleventh and subsequent years of the exemption period or on | 1994 |
the portion of the improvement in excess of seventy-five per cent, | 1995 |
were that portion to be subject to taxation. | 1996 |
(F) Service payments in lieu of taxes that are attributable | 1997 |
to any amount by which the effective tax rate of either a renewal | 1998 |
levy with an increase or a replacement levy exceeds the effective | 1999 |
tax rate of the levy renewed or replaced, or that are attributable | 2000 |
to an additional levy, for a levy authorized by the voters for any | 2001 |
of the following purposes on or after January 1, 2006, and which | 2002 |
are provided pursuant to an ordinance creating an incentive | 2003 |
district under division (C)(1) of this section that is adopted on | 2004 |
or after January 1, 2006, shall be distributed to the appropriate | 2005 |
taxing authority as required under division (C) of section 5709.42 | 2006 |
of the Revised Code in an amount equal to the amount of taxes from | 2007 |
that additional levy or from the increase in the effective tax | 2008 |
rate of such renewal or replacement levy that would have been | 2009 |
payable to that taxing authority from the following levies were it | 2010 |
not for the exemption authorized under division (C) of this | 2011 |
section: | 2012 |
(1) A tax levied under division (L) of section 5705.19 or | 2013 |
section 5705.191 of the Revised Code for community mental | 2014 |
retardation and developmental disabilities programs and services | 2015 |
pursuant to Chapter 5126. of the Revised Code; | 2016 |
(2) A tax levied under division (Y) of section 5705.19 of the | 2017 |
Revised Code for providing or maintaining senior citizens services | 2018 |
or facilities; | 2019 |
(3) A tax levied under section 5705.22 of the Revised Code | 2020 |
for county hospitals; | 2021 |
(4) A tax levied by a joint-county district or by a county | 2022 |
under section 5705.19, 5705.191, or 5705.221 of the Revised Code | 2023 |
for alcohol, drug addiction, and mental health services or | 2024 |
facilities; | 2025 |
(5) A tax levied under section 5705.23 of the Revised Code | 2026 |
for library purposes; | 2027 |
(6) A tax levied under section 5705.24 of the Revised Code | 2028 |
for the support of children services and the placement and care of | 2029 |
children; | 2030 |
(7) A tax levied under division (Z) of section 5705.19 of the | 2031 |
Revised Code for the provision and maintenance of zoological park | 2032 |
services and facilities under section 307.76 of the Revised Code; | 2033 |
(8) A tax levied under section 511.27 or division (H) of | 2034 |
section 5705.19 of the Revised Code for the support of township | 2035 |
park districts; | 2036 |
(9) A tax levied under division (A), (F), or (H) of section | 2037 |
5705.19 of the Revised Code for parks and recreational purposes of | 2038 |
a joint recreation district organized pursuant to division (B) of | 2039 |
section 755.14 of the Revised Code; | 2040 |
(10) A tax levied under section 1545.20 or 1545.21 of the | 2041 |
Revised Code for park district purposes; | 2042 |
(11) A tax levied under section 5705.191 of the Revised Code | 2043 |
for the purpose of making appropriations for public assistance; | 2044 |
human or social services; public relief; public welfare; public | 2045 |
health and hospitalization; and support of general hospitals; | 2046 |
(12) A tax levied under section 3709.29 of the Revised Code | 2047 |
for a general health district program. | 2048 |
(G) An exemption from taxation granted under this section | 2049 |
commences with the tax year specified in the ordinance so long as | 2050 |
the year specified in the ordinance commences after the effective | 2051 |
date of the ordinance. If the ordinance specifies a year | 2052 |
commencing before the effective date of the resolution or | 2053 |
specifies no year whatsoever, the exemption commences with the tax | 2054 |
year in which an exempted improvement first appears on the tax | 2055 |
list and duplicate of real and public utility property and that | 2056 |
commences after the effective date of the ordinance. Except as | 2057 |
otherwise provided in this division, the exemption ends on the | 2058 |
date specified in the ordinance as the date the improvement ceases | 2059 |
to be a public purpose or the incentive district expires, or ends | 2060 |
on the date on which the public infrastructure improvements and | 2061 |
housing renovations are paid in full from the municipal public | 2062 |
improvement tax increment equivalent fund established under | 2063 |
division (A) of section 5709.43 of the Revised Code, whichever | 2064 |
occurs first. The exemption of an improvement with respect to a | 2065 |
parcel or within an incentive district may end on a later date, as | 2066 |
specified in the ordinance, if the legislative authority and the | 2067 |
board of education of the city, local, or exempted village school | 2068 |
district within which the parcel or district is located have | 2069 |
entered into a compensation agreement under section 5709.82 of the | 2070 |
Revised Code with respect to the improvement, and the board of | 2071 |
education has approved the term of the exemption under division | 2072 |
(D)(2) of this section, but in no case shall the improvement be | 2073 |
exempted from taxation for more than thirty years. Exemptions | 2074 |
shall be claimed and allowed in the same manner as in the case of | 2075 |
other real property exemptions. If an exemption status changes | 2076 |
during a year, the procedure for the apportionment of the taxes | 2077 |
for that year is the same as in the case of other changes in tax | 2078 |
exemption status during the year. | 2079 |
(H) Additional municipal financing of public infrastructure | 2080 |
improvements and housing renovations may be provided by any | 2081 |
methods that the municipal corporation may otherwise use for | 2082 |
financing such improvements or renovations. If the municipal | 2083 |
corporation issues bonds or notes to finance the public | 2084 |
infrastructure improvements and housing renovations and pledges | 2085 |
money from the municipal public improvement tax increment | 2086 |
equivalent fund to pay the interest on and principal of the bonds | 2087 |
or notes, the bonds or notes are not subject to Chapter 133. of | 2088 |
the Revised Code. | 2089 |
(I) The municipal corporation, not later than fifteen days | 2090 |
after the adoption of an ordinance under this section, shall | 2091 |
submit to the director of development a copy of the ordinance. On | 2092 |
or before the thirty-first day of March of each year, the | 2093 |
municipal corporation shall submit a status report to the director | 2094 |
of development. The report shall indicate, in the manner | 2095 |
prescribed by the director, the progress of the project during | 2096 |
each year that an exemption remains in effect, including a summary | 2097 |
of the receipts from service payments in lieu of taxes; | 2098 |
expenditures of money from the funds created under section 5709.43 | 2099 |
of the Revised Code; a description of the public infrastructure | 2100 |
improvements and housing renovations financed with such | 2101 |
expenditures; and a quantitative summary of changes in employment | 2102 |
and private investment resulting from each project. | 2103 |
(J) Nothing in this section shall be construed to prohibit a | 2104 |
legislative authority from declaring to be a public purpose | 2105 |
improvements with respect to more than one parcel. | 2106 |
(K) If a parcel is located in a new community district in | 2107 |
which the new community authority imposes a community development | 2108 |
charge on the basis of rentals received from leases of real | 2109 |
property as described in division (L)(2) of section 349.01 of the | 2110 |
Revised Code, the parcel may not be exempted from taxation under | 2111 |
this section. | 2112 |
Sec. 5709.41. (A) As used in this section: | 2113 |
(1) "Business day" means a day of the week excluding | 2114 |
Saturday, Sunday, and a legal holiday as defined under section | 2115 |
1.14 of the Revised Code. | 2116 |
(2) "Improvement" means the increase in assessed value of any | 2117 |
parcel of property subsequent to the acquisition of the parcel by | 2118 |
a municipal corporation engaged in urban redevelopment. | 2119 |
(B) The legislative authority of a municipal corporation, by | 2120 |
ordinance, may declare to be a public purpose any improvement to a | 2121 |
parcel of real property if both of the following apply: | 2122 |
(1) The municipal corporation held fee title to the parcel | 2123 |
prior to the adoption of the ordinance; | 2124 |
(2) The parcel is leased, or the fee of the parcel is | 2125 |
conveyed, to any person either before or after adoption of the | 2126 |
ordinance. | 2127 |
Improvements used or to be used for residential purposes may | 2128 |
be declared a public purpose under this section only if the parcel | 2129 |
is located in a blighted area of an impacted city as those terms | 2130 |
are defined in section 1728.01 of the Revised Code. | 2131 |
(C) Except as otherwise provided in division (C)(1), (2), or | 2132 |
(3) of this section, not more than seventy-five per cent of an | 2133 |
improvement thus declared to be a public purpose may be exempted | 2134 |
from real property taxation. The ordinance shall specify the | 2135 |
percentage of the improvement to be exempted from taxation. If a | 2136 |
parcel is located in a new community district in which the new | 2137 |
community authority imposes a community development charge on the | 2138 |
basis of rentals received from leases of real property as | 2139 |
described in division (L)(2) of section 349.01 of the Revised | 2140 |
Code, the parcel may not be exempted from taxation under this | 2141 |
section. | 2142 |
(1) If the ordinance declaring improvements to a parcel to be | 2143 |
a public purpose specifies that payments in lieu of taxes provided | 2144 |
for in section 5709.42 of the Revised Code shall be paid to the | 2145 |
city, local, or exempted village school district in which the | 2146 |
parcel is located in the amount of the taxes that would have been | 2147 |
payable to the school district if the improvements had not been | 2148 |
exempted from taxation, the percentage of the improvement that may | 2149 |
be exempted from taxation may exceed seventy-five per cent, and | 2150 |
the exemption may be granted for up to thirty years, without the | 2151 |
approval of the board of education as otherwise required under | 2152 |
division (C)(2) of this section. | 2153 |
(2) Improvements may be exempted from taxation for up to ten | 2154 |
years or, with the approval of the board of education of the city, | 2155 |
local, or exempted village school district within the territory of | 2156 |
which the improvements are or will be located, for up to thirty | 2157 |
years. The percentage of the improvement exempted from taxation | 2158 |
may, with such approval, exceed seventy-five per cent, but shall | 2159 |
not exceed one hundred per cent. Not later than forty-five | 2160 |
business days prior to adopting an ordinance under this section, | 2161 |
the legislative authority shall deliver to the board of education | 2162 |
a notice stating its intent to declare improvements to be a public | 2163 |
purpose under this section. The notice shall describe the parcel | 2164 |
and the improvements, provide an estimate of the true value in | 2165 |
money of the improvements, specify the period for which the | 2166 |
improvements would be exempted from taxation and the percentage of | 2167 |
the improvements that would be exempted, and indicate the date on | 2168 |
which the legislative authority intends to adopt the ordinance. | 2169 |
The board of education, by resolution adopted by a majority of the | 2170 |
board, may approve the exemption for the period or for the | 2171 |
exemption percentage specified in the notice, may disapprove the | 2172 |
exemption for the number of years in excess of ten, may disapprove | 2173 |
the exemption for the percentage of the improvements to be | 2174 |
exempted in excess of seventy-five per cent, or both, or may | 2175 |
approve the exemption on the condition that the legislative | 2176 |
authority and the board negotiate an agreement providing for | 2177 |
compensation to the school district equal in value to a percentage | 2178 |
of the amount of taxes exempted in the eleventh and subsequent | 2179 |
years of the exemption period, or, in the case of exemption | 2180 |
percentages in excess of seventy-five per cent, compensation equal | 2181 |
in value to a percentage of the taxes that would be payable on the | 2182 |
portion of the improvement in excess of seventy-five per cent were | 2183 |
that portion to be subject to taxation. The board of education | 2184 |
shall certify its resolution to the legislative authority not | 2185 |
later than fourteen days prior to the date the legislative | 2186 |
authority intends to adopt the ordinance as indicated in the | 2187 |
notice. If the board of education approves the exemption on the | 2188 |
condition that a compensation agreement be negotiated, the board | 2189 |
in its resolution shall propose a compensation percentage. If the | 2190 |
board of education and the legislative authority negotiate a | 2191 |
mutually acceptable compensation agreement, the ordinance may | 2192 |
declare the improvements a public purpose for the number of years | 2193 |
specified in the ordinance or, in the case of exemption | 2194 |
percentages in excess of seventy-five per cent, for the exemption | 2195 |
percentage specified in the ordinance. In either case, if the | 2196 |
board and the legislative authority fail to negotiate a mutually | 2197 |
acceptable compensation agreement, the ordinance may declare the | 2198 |
improvements a public purpose for not more than ten years, but | 2199 |
shall not exempt more than seventy-five per cent of the | 2200 |
improvements from taxation. If the board fails to certify a | 2201 |
resolution to the legislative authority within the time prescribed | 2202 |
by this division, the legislative authority thereupon may adopt | 2203 |
the ordinance and may declare the improvements a public purpose | 2204 |
for up to thirty years. The legislative authority may adopt the | 2205 |
ordinance at any time after the board of education certifies its | 2206 |
resolution approving the exemption to the legislative authority, | 2207 |
or, if the board approves the exemption on the condition that a | 2208 |
mutually acceptable compensation agreement be negotiated, at any | 2209 |
time after the compensation agreement is agreed to by the board | 2210 |
and the legislative authority. If a mutually acceptable | 2211 |
compensation agreement is negotiated between the legislative | 2212 |
authority and the board, including agreements for payments in lieu | 2213 |
of taxes under section 5709.42 of the Revised Code, the | 2214 |
legislative authority shall compensate the joint vocational school | 2215 |
district within the territory of which the improvements are or | 2216 |
will be located at the same rate and under the same terms received | 2217 |
by the city, local, or exempted village school district. | 2218 |
(3) If a board of education has adopted a resolution waiving | 2219 |
its right to approve exemptions from taxation and the resolution | 2220 |
remains in effect, approval of exemptions by the board is not | 2221 |
required under this division. If a board of education has adopted | 2222 |
a resolution allowing a legislative authority to deliver the | 2223 |
notice required under this division fewer than forty-five business | 2224 |
days prior to the legislative authority's adoption of the | 2225 |
ordinance, the legislative authority shall deliver the notice to | 2226 |
the board not later than the number of days prior to such adoption | 2227 |
as prescribed by the board in its resolution. If a board of | 2228 |
education adopts a resolution waiving its right to approve | 2229 |
exemptions or shortening the notification period, the board shall | 2230 |
certify a copy of the resolution to the legislative authority. If | 2231 |
the board of education rescinds such a resolution, it shall | 2232 |
certify notice of the rescission to the legislative authority. | 2233 |
(4) If the legislative authority is not required by division | 2234 |
(C)(1), (2), or (3) of this section to notify the board of | 2235 |
education of the legislative authority's intent to declare | 2236 |
improvements to be a public purpose, the legislative authority | 2237 |
shall comply with the notice requirements imposed under section | 2238 |
5709.83 of the Revised Code, unless the board has adopted a | 2239 |
resolution under that section waiving its right to receive such a | 2240 |
notice. | 2241 |
(D) The exemption commences on the effective date of the | 2242 |
ordinance and ends on the date specified in the ordinance as the | 2243 |
date the improvement ceases to be a public purpose. The exemption | 2244 |
shall be claimed and allowed in the same or a similar manner as in | 2245 |
the case of other real property exemptions. If an exemption status | 2246 |
changes during a tax year, the procedure for the apportionment of | 2247 |
the taxes for that year is the same as in the case of other | 2248 |
changes in tax exemption status during the year. | 2249 |
(E) A municipal corporation, not later than fifteen days | 2250 |
after the adoption of an ordinance granting a tax exemption under | 2251 |
this section, shall submit to the director of development a copy | 2252 |
of the ordinance. On or before the thirty-first day of March each | 2253 |
year, the municipal corporation shall submit a status report to | 2254 |
the director of development outlining the progress of the project | 2255 |
during each year that the exemption remains in effect. | 2256 |
Sec. 5709.73. (A) As used in this section and section | 2257 |
5709.74 of the Revised Code: | 2258 |
(1) "Business day" means a day of the week excluding | 2259 |
Saturday, Sunday, and a legal holiday as defined in section 1.14 | 2260 |
of the Revised Code. | 2261 |
(2) "Further improvements" or "improvements" means the | 2262 |
increase in the assessed value of real property that would first | 2263 |
appear on the tax list and duplicate of real and public utility | 2264 |
property after the effective date of a resolution adopted under | 2265 |
this section were it not for the exemption granted by that | 2266 |
resolution. For purposes of division (B) of this section, | 2267 |
"improvements" do not include any property used or to be used for | 2268 |
residential purposes. | 2269 |
(3) "Housing renovation" means a project carried out for | 2270 |
residential purposes. | 2271 |
(4) "Incentive district" has the same meaning as in section | 2272 |
5709.40 of the Revised Code, except that a blighted area is in the | 2273 |
unincorporated area of a township. | 2274 |
(5) "Project" and "public infrastructure improvement" have | 2275 |
the same meanings as in section 5709.40 of the Revised Code. | 2276 |
(B) A board of township trustees may, by unanimous vote, | 2277 |
adopt a resolution that declares to be a public purpose any public | 2278 |
infrastructure improvements made that are necessary for the | 2279 |
development of certain parcels of land located in the | 2280 |
unincorporated area of the township. Except with the approval | 2281 |
under division (D) of this section of the board of education of | 2282 |
each city, local, or exempted village school district within which | 2283 |
the improvements are located, the resolution may exempt from real | 2284 |
property taxation not more than seventy-five per cent of further | 2285 |
improvements to a parcel of land that directly benefits from the | 2286 |
public infrastructure improvements, for a period of not more than | 2287 |
ten years. The resolution shall specify the percentage of the | 2288 |
further improvements to be exempted and the life of the exemption. | 2289 |
(C)(1) A board of township trustees may adopt, by unanimous | 2290 |
vote, a resolution creating an incentive district and declaring | 2291 |
improvements to parcels within the district to be a public purpose | 2292 |
and, except as provided in division (F) of this section, exempt | 2293 |
from taxation as provided in this section, but no board of | 2294 |
township trustees of a township that has a population that exceeds | 2295 |
twenty-five thousand, as shown by the most recent federal | 2296 |
decennial census, shall adopt a resolution that creates an | 2297 |
incentive district if the sum of the taxable value of real | 2298 |
property in the proposed district for the preceding tax year and | 2299 |
the taxable value of all real property in the township that would | 2300 |
have been taxable in the preceding year were it not for the fact | 2301 |
that the property was in an existing incentive district and | 2302 |
therefore exempt from taxation exceeds twenty-five per cent of the | 2303 |
taxable value of real property in the township for the preceding | 2304 |
tax year. The district shall be located within the unincorporated | 2305 |
area of the township and shall not include any territory that is | 2306 |
included within a district created under division (B) of section | 2307 |
5709.78 of the Revised Code. The resolution shall delineate the | 2308 |
boundary of the district and specifically identify each parcel | 2309 |
within the district. A district may not include any parcel that is | 2310 |
or has been exempted from taxation under division (B) of this | 2311 |
section or that is or has been within another district created | 2312 |
under this division. A resolution may create more than one | 2313 |
district, and more than one resolution may be adopted under | 2314 |
division (C)(1) of this section. | 2315 |
(2) Not later than thirty days prior to adopting a resolution | 2316 |
under division (C)(1) of this section, if the township intends to | 2317 |
apply for exemptions from taxation under section 5709.911 of the | 2318 |
Revised Code on behalf of owners of real property located within | 2319 |
the proposed incentive district, the board shall conduct a public | 2320 |
hearing on the proposed resolution. Not later than thirty days | 2321 |
prior to the public hearing, the board shall give notice of the | 2322 |
public hearing and the proposed resolution by first class mail to | 2323 |
every real property owner whose property is located within the | 2324 |
boundaries of the proposed incentive district that is the subject | 2325 |
of the proposed resolution. | 2326 |
(3)(a) A resolution adopted under division (C)(1) of this | 2327 |
section shall specify the life of the incentive district and the | 2328 |
percentage of the improvements to be exempted, shall designate the | 2329 |
public infrastructure improvements made, to be made, or in the | 2330 |
process of being made, that benefit or serve, or, once made, will | 2331 |
benefit or serve parcels in the district. The resolution also | 2332 |
shall identify one or more specific projects being, or to be, | 2333 |
undertaken in the district that place additional demand on the | 2334 |
public infrastructure improvements designated in the resolution. | 2335 |
The project identified may, but need not be, the project under | 2336 |
division (C)(3)(b) of this section that places real property in | 2337 |
use for commercial or industrial purposes. | 2338 |
A resolution adopted under division (C)(1) of this section on | 2339 |
or after March 30, 2006, shall not designate police or fire | 2340 |
equipment as public infrastructure improvements, and no service | 2341 |
payment provided for in section 5709.74 of the Revised Code and | 2342 |
received by the township under the resolution shall be used for | 2343 |
police or fire equipment. | 2344 |
(b) A resolution adopted under division (C)(1) of this | 2345 |
section may authorize the use of service payments provided for in | 2346 |
section 5709.74 of the Revised Code for the purpose of housing | 2347 |
renovations within the incentive district, provided that the | 2348 |
resolution also designates public infrastructure improvements that | 2349 |
benefit or serve the district, and that a project within the | 2350 |
district places real property in use for commercial or industrial | 2351 |
purposes. Service payments may be used to finance or support | 2352 |
loans, deferred loans, and grants to persons for the purpose of | 2353 |
housing renovations within the district. The resolution shall | 2354 |
designate the parcels within the district that are eligible for | 2355 |
housing renovations. The resolution shall state separately the | 2356 |
amount or the percentages of the expected aggregate service | 2357 |
payments that are designated for each public infrastructure | 2358 |
improvement and for the purpose of housing renovations. | 2359 |
(4) Except with the approval of the board of education of | 2360 |
each city, local, or exempted village school district within the | 2361 |
territory of which the incentive district is or will be located, | 2362 |
and subject to division (E) of this section, the life of an | 2363 |
incentive district shall not exceed ten years, and the percentage | 2364 |
of improvements to be exempted shall not exceed seventy-five per | 2365 |
cent. With approval of the board of education, the life of a | 2366 |
district may be not more than thirty years, and the percentage of | 2367 |
improvements to be exempted may be not more than one hundred per | 2368 |
cent. The approval of a board of education shall be obtained in | 2369 |
the manner provided in division (D) of this section. | 2370 |
(D) Improvements with respect to a parcel may be exempted | 2371 |
from taxation under division (B) of this section, and improvements | 2372 |
to parcels within an incentive district may be exempted from | 2373 |
taxation under division (C) of this section, for up to ten years | 2374 |
or, with the approval of the board of education of the city, | 2375 |
local, or exempted village school district within which the parcel | 2376 |
or district is located, for up to thirty years. The percentage of | 2377 |
the improvements exempted from taxation may, with such approval, | 2378 |
exceed seventy-five per cent, but shall not exceed one hundred per | 2379 |
cent. Not later than forty-five business days prior to adopting a | 2380 |
resolution under this section declaring improvements to be a | 2381 |
public purpose that is subject to approval by a board of education | 2382 |
under this division, the board of township trustees shall deliver | 2383 |
to the board of education a notice stating its intent to adopt a | 2384 |
resolution making that declaration. The notice regarding | 2385 |
improvements with respect to a parcel under division (B) of this | 2386 |
section shall identify the parcels for which improvements are to | 2387 |
be exempted from taxation, provide an estimate of the true value | 2388 |
in money of the improvements, specify the period for which the | 2389 |
improvements would be exempted from taxation and the percentage of | 2390 |
the improvements that would be exempted, and indicate the date on | 2391 |
which the board of township trustees intends to adopt the | 2392 |
resolution. The notice regarding improvements made under division | 2393 |
(C) of this section to parcels within an incentive district shall | 2394 |
delineate the boundaries of the district, specifically identify | 2395 |
each parcel within the district, identify each anticipated | 2396 |
improvement in the district, provide an estimate of the true value | 2397 |
in money of each such improvement, specify the life of the | 2398 |
district and the percentage of improvements that would be | 2399 |
exempted, and indicate the date on which the board of township | 2400 |
trustees intends to adopt the resolution. The board of education, | 2401 |
by resolution adopted by a majority of the board, may approve the | 2402 |
exemption for the period or for the exemption percentage specified | 2403 |
in the notice; may disapprove the exemption for the number of | 2404 |
years in excess of ten, may disapprove the exemption for the | 2405 |
percentage of the improvements to be exempted in excess of | 2406 |
seventy-five per cent, or both; or may approve the exemption on | 2407 |
the condition that the board of township trustees and the board of | 2408 |
education negotiate an agreement providing for compensation to the | 2409 |
school district equal in value to a percentage of the amount of | 2410 |
taxes exempted in the eleventh and subsequent years of the | 2411 |
exemption period or, in the case of exemption percentages in | 2412 |
excess of seventy-five per cent, compensation equal in value to a | 2413 |
percentage of the taxes that would be payable on the portion of | 2414 |
the improvements in excess of seventy-five per cent were that | 2415 |
portion to be subject to taxation, or other mutually agreeable | 2416 |
compensation. | 2417 |
The board of education shall certify its resolution to the | 2418 |
board of township trustees not later than fourteen days prior to | 2419 |
the date the board of township trustees intends to adopt the | 2420 |
resolution as indicated in the notice. If the board of education | 2421 |
and the board of township trustees negotiate a mutually acceptable | 2422 |
compensation agreement, the resolution may declare the | 2423 |
improvements a public purpose for the number of years specified in | 2424 |
the resolution or, in the case of exemption percentages in excess | 2425 |
of seventy-five per cent, for the exemption percentage specified | 2426 |
in the resolution. In either case, if the board of education and | 2427 |
the board of township trustees fail to negotiate a mutually | 2428 |
acceptable compensation agreement, the resolution may declare the | 2429 |
improvements a public purpose for not more than ten years, and | 2430 |
shall not exempt more than seventy-five per cent of the | 2431 |
improvements from taxation. If the board of education fails to | 2432 |
certify a resolution to the board of township trustees within the | 2433 |
time prescribed by this section, the board of township trustees | 2434 |
thereupon may adopt the resolution and may declare the | 2435 |
improvements a public purpose for up to thirty years or, in the | 2436 |
case of exemption percentages proposed in excess of seventy-five | 2437 |
per cent, for the exemption percentage specified in the | 2438 |
resolution. The board of township trustees may adopt the | 2439 |
resolution at any time after the board of education certifies its | 2440 |
resolution approving the exemption to the board of township | 2441 |
trustees, or, if the board of education approves the exemption on | 2442 |
the condition that a mutually acceptable compensation agreement be | 2443 |
negotiated, at any time after the compensation agreement is agreed | 2444 |
to by the board of education and the board of township trustees. | 2445 |
If a mutually acceptable compensation agreement is negotiated | 2446 |
between the board of township trustees and the board of education, | 2447 |
including agreements for payments in lieu of taxes under section | 2448 |
5709.74 of the Revised Code, the board of township trustees shall | 2449 |
compensate the joint vocational school district within which the | 2450 |
parcel or district is located at the same rate and under the same | 2451 |
terms received by the city, local, or exempted village school | 2452 |
district. | 2453 |
If a board of education has adopted a resolution waiving its | 2454 |
right to approve exemptions from taxation under this section and | 2455 |
the resolution remains in effect, approval of such exemptions by | 2456 |
the board of education is not required under division (D) of this | 2457 |
section. If a board of education has adopted a resolution allowing | 2458 |
a board of township trustees to deliver the notice required under | 2459 |
division (D) of this section fewer than forty-five business days | 2460 |
prior to adoption of the resolution by the board of township | 2461 |
trustees, the board of township trustees shall deliver the notice | 2462 |
to the board of education not later than the number of days prior | 2463 |
to the adoption as prescribed by the board of education in its | 2464 |
resolution. If a board of education adopts a resolution waiving | 2465 |
its right to approve exemptions or shortening the notification | 2466 |
period, the board of education shall certify a copy of the | 2467 |
resolution to the board of township trustees. If the board of | 2468 |
education rescinds the resolution, it shall certify notice of the | 2469 |
rescission to the board of township trustees. | 2470 |
If the board of township trustees is not required by division | 2471 |
(D) of this section to notify the board of education of the board | 2472 |
of township trustees' intent to declare improvements to be a | 2473 |
public purpose, the board of township trustees shall comply with | 2474 |
the notice requirements imposed under section 5709.83 of the | 2475 |
Revised Code before taking formal action to adopt the resolution | 2476 |
making that declaration, unless the board of education has adopted | 2477 |
a resolution under that section waiving its right to receive the | 2478 |
notice. | 2479 |
(E)(1) If a proposed resolution under division (C)(1) of this | 2480 |
section exempts improvements with respect to a parcel within an | 2481 |
incentive district for more than ten years, or the percentage of | 2482 |
the improvement exempted from taxation exceeds seventy-five per | 2483 |
cent, not later than forty-five business days prior to adopting | 2484 |
the resolution the board of township trustees shall deliver to the | 2485 |
board of county commissioners of the county within which the | 2486 |
incentive district is or will be located a notice that states its | 2487 |
intent to adopt a resolution creating an incentive district. The | 2488 |
notice shall include a copy of the proposed resolution, identify | 2489 |
the parcels for which improvements are to be exempted from | 2490 |
taxation, provide an estimate of the true value in money of the | 2491 |
improvements, specify the period of time for which the | 2492 |
improvements would be exempted from taxation, specify the | 2493 |
percentage of the improvements that would be exempted from | 2494 |
taxation, and indicate the date on which the board of township | 2495 |
trustees intends to adopt the resolution. | 2496 |
(2) The board of county commissioners, by resolution adopted | 2497 |
by a majority of the board, may object to the exemption for the | 2498 |
number of years in excess of ten, may object to the exemption for | 2499 |
the percentage of the improvement to be exempted in excess of | 2500 |
seventy-five per cent, or both. If the board of county | 2501 |
commissioners objects, the board may negotiate a mutually | 2502 |
acceptable compensation agreement with the board of township | 2503 |
trustees. In no case shall the compensation provided to the board | 2504 |
of county commissioners exceed the property taxes foregone due to | 2505 |
the exemption. If the board of county commissioners objects, and | 2506 |
the board of county commissioners and board of township trustees | 2507 |
fail to negotiate a mutually acceptable compensation agreement, | 2508 |
the resolution adopted under division (C)(1) of this section shall | 2509 |
provide to the board of county commissioners compensation in the | 2510 |
eleventh and subsequent years of the exemption period equal in | 2511 |
value to not more than fifty per cent of the taxes that would be | 2512 |
payable to the county or, if the board of county commissioner's | 2513 |
objection includes an objection to an exemption percentage in | 2514 |
excess of seventy-five per cent, compensation equal in value to | 2515 |
not more than fifty per cent of the taxes that would be payable to | 2516 |
the county, on the portion of the improvement in excess of | 2517 |
seventy-five per cent, were that portion to be subject to | 2518 |
taxation. The board of county commissioners shall certify its | 2519 |
resolution to the board of township trustees not later than thirty | 2520 |
days after receipt of the notice. | 2521 |
(3) If the board of county commissioners does not object or | 2522 |
fails to certify its resolution objecting to an exemption within | 2523 |
thirty days after receipt of the notice, the board of township | 2524 |
trustees may adopt its resolution, and no compensation shall be | 2525 |
provided to the board of county commissioners. If the board of | 2526 |
county commissioners timely certifies its resolution objecting to | 2527 |
the trustees' resolution, the board of township trustees may adopt | 2528 |
its resolution at any time after a mutually acceptable | 2529 |
compensation agreement is agreed to by the board of county | 2530 |
commissioners and the board of township trustees, or, if no | 2531 |
compensation agreement is negotiated, at any time after the board | 2532 |
of township trustees agrees in the proposed resolution to provide | 2533 |
compensation to the board of county commissioners of fifty per | 2534 |
cent of the taxes that would be payable to the county in the | 2535 |
eleventh and subsequent years of the exemption period or on the | 2536 |
portion of the improvement in excess of seventy-five per cent, | 2537 |
were that portion to be subject to taxation. | 2538 |
(F) Service payments in lieu of taxes that are attributable | 2539 |
to any amount by which the effective tax rate of either a renewal | 2540 |
levy with an increase or a replacement levy exceeds the effective | 2541 |
tax rate of the levy renewed or replaced, or that are attributable | 2542 |
to an additional levy, for a levy authorized by the voters for any | 2543 |
of the following purposes on or after January 1, 2006, and which | 2544 |
are provided pursuant to a resolution creating an incentive | 2545 |
district under division (C)(1) of this section that is adopted on | 2546 |
or after January 1, 2006, shall be distributed to the appropriate | 2547 |
taxing authority as required under division (C) of section 5709.74 | 2548 |
of the Revised Code in an amount equal to the amount of taxes from | 2549 |
that additional levy or from the increase in the effective tax | 2550 |
rate of such renewal or replacement levy that would have been | 2551 |
payable to that taxing authority from the following levies were it | 2552 |
not for the exemption authorized under division (C) of this | 2553 |
section: | 2554 |
(1) A tax levied under division (L) of section 5705.19 or | 2555 |
section 5705.191 of the Revised Code for community mental | 2556 |
retardation and developmental disabilities programs and services | 2557 |
pursuant to Chapter 5126. of the Revised Code; | 2558 |
(2) A tax levied under division (Y) of section 5705.19 of the | 2559 |
Revised Code for providing or maintaining senior citizens services | 2560 |
or facilities; | 2561 |
(3) A tax levied under section 5705.22 of the Revised Code | 2562 |
for county hospitals; | 2563 |
(4) A tax levied by a joint-county district or by a county | 2564 |
under section 5705.19, 5705.191, or 5705.221 of the Revised Code | 2565 |
for alcohol, drug addiction, and mental health services or | 2566 |
families; | 2567 |
(5) A tax levied under section 5705.23 of the Revised Code | 2568 |
for library purposes; | 2569 |
(6) A tax levied under section 5705.24 of the Revised Code | 2570 |
for the support of children services and the placement and care of | 2571 |
children; | 2572 |
(7) A tax levied under division (Z) of section 5705.19 of the | 2573 |
Revised Code for the provision and maintenance of zoological park | 2574 |
services and facilities under section 307.76 of the Revised Code; | 2575 |
(8) A tax levied under section 511.27 or division (H) of | 2576 |
section 5705.19 of the Revised Code for the support of township | 2577 |
park districts; | 2578 |
(9) A tax levied under division (A), (F), or (H) of section | 2579 |
5705.19 of the Revised Code for parks and recreational purposes of | 2580 |
a joint recreation district organized pursuant to division (B) of | 2581 |
section 755.14 of the Revised Code; | 2582 |
(10) A tax levied under section 1545.20 or 1545.21 of the | 2583 |
Revised Code for park district purposes; | 2584 |
(11) A tax levied under section 5705.191 of the Revised Code | 2585 |
for the purpose of making appropriations for public assistance; | 2586 |
human or social services; public relief; public welfare; public | 2587 |
health and hospitalization; and support of general hospitals; | 2588 |
(12) A tax levied under section 3709.29 of the Revised Code | 2589 |
for a general health district program. | 2590 |
(G) An exemption from taxation granted under this section | 2591 |
commences with the tax year specified in the resolution so long as | 2592 |
the year specified in the resolution commences after the effective | 2593 |
date of the resolution. If the resolution specifies a year | 2594 |
commencing before the effective date of the resolution or | 2595 |
specifies no year whatsoever, the exemption commences with the tax | 2596 |
year in which an exempted improvement first appears on the tax | 2597 |
list and duplicate of real and public utility property and that | 2598 |
commences after the effective date of the resolution. Except as | 2599 |
otherwise provided in this division, the exemption ends on the | 2600 |
date specified in the resolution as the date the improvement | 2601 |
ceases to be a public purpose or the incentive district expires, | 2602 |
or ends on the date on which the public infrastructure | 2603 |
improvements and housing renovations are paid in full from the | 2604 |
township public improvement tax increment equivalent fund | 2605 |
established under section 5709.75 of the Revised Code, whichever | 2606 |
occurs first. The exemption of an improvement with respect to a | 2607 |
parcel or within an incentive district may end on a later date, as | 2608 |
specified in the resolution, if the board of township trustees and | 2609 |
the board of education of the city, local, or exempted village | 2610 |
school district within which the parcel or district is located | 2611 |
have entered into a compensation agreement under section 5709.82 | 2612 |
of the Revised Code with respect to the improvement and the board | 2613 |
of education has approved the term of the exemption under division | 2614 |
(D) of this section, but in no case shall the improvement be | 2615 |
exempted from taxation for more than thirty years. The board of | 2616 |
township trustees may, by majority vote, adopt a resolution | 2617 |
permitting the township to enter into such agreements as the board | 2618 |
finds necessary or appropriate to provide for the construction or | 2619 |
undertaking of public infrastructure improvements and housing | 2620 |
renovations. Any exemption shall be claimed and allowed in the | 2621 |
same or a similar manner as in the case of other real property | 2622 |
exemptions. If an exemption status changes during a tax year, the | 2623 |
procedure for the apportionment of the taxes for that year is the | 2624 |
same as in the case of other changes in tax exemption status | 2625 |
during the year. | 2626 |
(H) The board of township trustees may issue the notes of the | 2627 |
township to finance all costs pertaining to the construction or | 2628 |
undertaking of public infrastructure improvements and housing | 2629 |
renovations made pursuant to this section. The notes shall be | 2630 |
signed by the board and attested by the signature of the township | 2631 |
fiscal officer, shall bear interest not to exceed the rate | 2632 |
provided in section 9.95 of the Revised Code, and are not subject | 2633 |
to Chapter 133. of the Revised Code. The resolution authorizing | 2634 |
the issuance of the notes shall pledge the funds of the township | 2635 |
public improvement tax increment equivalent fund established | 2636 |
pursuant to section 5709.75 of the Revised Code to pay the | 2637 |
interest on and principal of the notes. The notes, which may | 2638 |
contain a clause permitting prepayment at the option of the board, | 2639 |
shall be offered for sale on the open market or given to the | 2640 |
vendor or contractor if no sale is made. | 2641 |
(I) The township, not later than fifteen days after the | 2642 |
adoption of a resolution under this section, shall submit to the | 2643 |
director of development a copy of the resolution. On or before the | 2644 |
thirty-first day of March of each year, the township shall submit | 2645 |
a status report to the director of development. The report shall | 2646 |
indicate, in the manner prescribed by the director, the progress | 2647 |
of the project during each year that the exemption remains in | 2648 |
effect, including a summary of the receipts from service payments | 2649 |
in lieu of taxes; expenditures of money from the fund created | 2650 |
under section 5709.75 of the Revised Code; a description of the | 2651 |
public infrastructure improvements and housing renovations | 2652 |
financed with the expenditures; and a quantitative summary of | 2653 |
changes in private investment resulting from each project. | 2654 |
(J) Nothing in this section shall be construed to prohibit a | 2655 |
board of township trustees from declaring to be a public purpose | 2656 |
improvements with respect to more than one parcel. | 2657 |
If a parcel is located in a new community district in which | 2658 |
the new community authority imposes a community development charge | 2659 |
on the basis of rentals received from leases of real property as | 2660 |
described in division (L)(2) of section 349.01 of the Revised | 2661 |
Code, the parcel may not be exempted from taxation under this | 2662 |
section. | 2663 |
(K) A board of township trustees that adopted a resolution | 2664 |
under this section prior to July 21, 1994, may amend that | 2665 |
resolution to include any additional public infrastructure | 2666 |
improvement. A board of township trustees that seeks by the | 2667 |
amendment to utilize money from its township public improvement | 2668 |
tax increment equivalent fund for land acquisition in aid of | 2669 |
industry, commerce, distribution, or research, demolition on | 2670 |
private property, or stormwater and flood remediation projects may | 2671 |
do so provided that the board currently is a party to a | 2672 |
hold-harmless agreement with the board of education of the city, | 2673 |
local, or exempted village school district within the territory of | 2674 |
which are located the parcels that are subject to an exemption. | 2675 |
For the purposes of this division, a "hold-harmless agreement" | 2676 |
means an agreement under which the board of township trustees | 2677 |
agrees to compensate the school district for one hundred per cent | 2678 |
of the tax revenue that the school district would have received | 2679 |
from further improvements to parcels designated in the resolution | 2680 |
were it not for the exemption granted by the resolution. | 2681 |
Sec. 5709.78. (A) A board of county commissioners may, by | 2682 |
resolution, declare improvements to certain parcels of real | 2683 |
property located in the unincorporated territory of the county to | 2684 |
be a public purpose. Except with the approval under division (C) | 2685 |
of this section of the board of education of each city, local, or | 2686 |
exempted village school district within which the improvements are | 2687 |
located, not more than seventy-five per cent of an improvement | 2688 |
thus declared to be a public purpose may be exempted from real | 2689 |
property taxation, for a period of not more than ten years. The | 2690 |
resolution shall specify the percentage of the improvement to be | 2691 |
exempted and the life of the exemption. | 2692 |
A resolution adopted under this division shall designate the | 2693 |
specific public infrastructure improvements made, to be made, or | 2694 |
in the process of being made by the county that directly benefit, | 2695 |
or that once made will directly benefit, the parcels for which | 2696 |
improvements are declared to be a public purpose. The service | 2697 |
payments provided for in section 5709.79 of the Revised Code shall | 2698 |
be used to finance the public infrastructure improvements | 2699 |
designated in the resolution, or as provided in section 5709.80 of | 2700 |
the Revised Code. | 2701 |
(B)(1) A board of county commissioners may adopt a resolution | 2702 |
creating an incentive district and declaring improvements to | 2703 |
parcels within the district to be a public purpose and, except as | 2704 |
provided in division (E) of this section, exempt from taxation as | 2705 |
provided in this section, but no board of county commissioners of | 2706 |
a county that has a population that exceeds twenty-five thousand, | 2707 |
as shown by the most recent federal decennial census, shall adopt | 2708 |
a resolution that creates an incentive district if the sum of the | 2709 |
taxable value of real property in the proposed district for the | 2710 |
preceding tax year and the taxable value of all real property in | 2711 |
the county that would have been taxable in the preceding year were | 2712 |
it not for the fact that the property was in an existing incentive | 2713 |
district and therefore exempt from taxation exceeds twenty-five | 2714 |
per cent of the taxable value of real property in the county for | 2715 |
the preceding tax year. The district shall be located within the | 2716 |
unincorporated territory of the county and shall not include any | 2717 |
territory that is included within a district created under | 2718 |
division (C) of section 5709.73 of the Revised Code. The | 2719 |
resolution shall delineate the boundary of the district and | 2720 |
specifically identify each parcel within the district. A district | 2721 |
may not include any parcel that is or has been exempted from | 2722 |
taxation under division (A) of this section or that is or has been | 2723 |
within another district created under this division. A resolution | 2724 |
may create more than one such district, and more than one | 2725 |
resolution may be adopted under division (B)(1) of this section. | 2726 |
(2) Not later than thirty days prior to adopting a resolution | 2727 |
under division (B)(1) of this section, if the county intends to | 2728 |
apply for exemptions from taxation under section 5709.911 of the | 2729 |
Revised Code on behalf of owners of real property located within | 2730 |
the proposed incentive district, the board of county commissioners | 2731 |
shall conduct a public hearing on the proposed resolution. Not | 2732 |
later than thirty days prior to the public hearing, the board | 2733 |
shall give notice of the public hearing and the proposed | 2734 |
resolution by first class mail to every real property owner whose | 2735 |
property is located within the boundaries of the proposed | 2736 |
incentive district that is the subject of the proposed resolution. | 2737 |
The board also shall provide the notice by first class mail to the | 2738 |
clerk of each township in which the proposed incentive district | 2739 |
will be located. | 2740 |
(3)(a) A resolution adopted under division (B)(1) of this | 2741 |
section shall specify the life of the incentive district and the | 2742 |
percentage of the improvements to be exempted, shall designate the | 2743 |
public infrastructure improvements made, to be made, or in the | 2744 |
process of being made, that benefit or serve, or, once made, will | 2745 |
benefit or serve parcels in the district. The resolution also | 2746 |
shall identify one or more specific projects being, or to be, | 2747 |
undertaken in the district that place additional demand on the | 2748 |
public infrastructure improvements designated in the resolution. | 2749 |
The project identified may, but need not be, the project under | 2750 |
division (B)(3)(b) of this section that places real property in | 2751 |
use for commercial or industrial purposes. | 2752 |
A resolution adopted under division (B)(1) of this section on | 2753 |
or after March 30, 2006, shall not designate police or fire | 2754 |
equipment as public infrastructure improvements, and no service | 2755 |
payment provided for in section 5709.79 of the Revised Code and | 2756 |
received by the county under the resolution shall be used for | 2757 |
police or fire equipment. | 2758 |
(b) A resolution adopted under division (B)(1) of this | 2759 |
section may authorize the use of service payments provided for in | 2760 |
section 5709.79 of the Revised Code for the purpose of housing | 2761 |
renovations within the incentive district, provided that the | 2762 |
resolution also designates public infrastructure improvements that | 2763 |
benefit or serve the district, and that a project within the | 2764 |
district places real property in use for commercial or industrial | 2765 |
purposes. Service payments may be used to finance or support | 2766 |
loans, deferred loans, and grants to persons for the purpose of | 2767 |
housing renovations within the district. The resolution shall | 2768 |
designate the parcels within the district that are eligible for | 2769 |
housing renovations. The resolution shall state separately the | 2770 |
amount or the percentages of the expected aggregate service | 2771 |
payments that are designated for each public infrastructure | 2772 |
improvement and for the purpose of housing renovations. | 2773 |
(4) Except with the approval of the board of education of | 2774 |
each city, local, or exempted village school district within the | 2775 |
territory of which the incentive district is or will be located, | 2776 |
and subject to division (D) of this section, the life of an | 2777 |
incentive district shall not exceed ten years, and the percentage | 2778 |
of improvements to be exempted shall not exceed seventy-five per | 2779 |
cent. With approval of the board of education, the life of a | 2780 |
district may be not more than thirty years, and the percentage of | 2781 |
improvements to be exempted may be not more than one hundred per | 2782 |
cent. The approval of a board of education shall be obtained in | 2783 |
the manner provided in division (C) of this section. | 2784 |
(C)(1) Improvements with respect to a parcel may be exempted | 2785 |
from taxation under division (A) of this section, and improvements | 2786 |
to parcels within an incentive district may be exempted from | 2787 |
taxation under division (B) of this section, for up to ten years | 2788 |
or, with the approval of the board of education of each city, | 2789 |
local, or exempted village school district within which the parcel | 2790 |
or district is located, for up to thirty years. The percentage of | 2791 |
the improvements exempted from taxation may, with such approval, | 2792 |
exceed seventy-five per cent, but shall not exceed one hundred per | 2793 |
cent. Not later than forty-five business days prior to adopting a | 2794 |
resolution under this section declaring improvements to be a | 2795 |
public purpose that is subject to the approval of a board of | 2796 |
education under this division, the board of county commissioners | 2797 |
shall deliver to the board of education a notice stating its | 2798 |
intent to adopt a resolution making that declaration. The notice | 2799 |
regarding improvements with respect to a parcel under division (A) | 2800 |
of this section shall identify the parcels for which improvements | 2801 |
are to be exempted from taxation, provide an estimate of the true | 2802 |
value in money of the improvements, specify the period for which | 2803 |
the improvements would be exempted from taxation and the | 2804 |
percentage of the improvements that would be exempted, and | 2805 |
indicate the date on which the board of county commissioners | 2806 |
intends to adopt the resolution. The notice regarding improvements | 2807 |
to parcels within an incentive district under division (B) of this | 2808 |
section shall delineate the boundaries of the district, | 2809 |
specifically identify each parcel within the district, identify | 2810 |
each anticipated improvement in the district, provide an estimate | 2811 |
of the true value in money of each such improvement, specify the | 2812 |
life of the district and the percentage of improvements that would | 2813 |
be exempted, and indicate the date on which the board of county | 2814 |
commissioners intends to adopt the resolution. The board of | 2815 |
education, by resolution adopted by a majority of the board, may | 2816 |
approve the exemption for the period or for the exemption | 2817 |
percentage specified in the notice; may disapprove the exemption | 2818 |
for the number of years in excess of ten, may disapprove the | 2819 |
exemption for the percentage of the improvements to be exempted in | 2820 |
excess of seventy-five per cent, or both; or may approve the | 2821 |
exemption on the condition that the board of county commissioners | 2822 |
and the board of education negotiate an agreement providing for | 2823 |
compensation to the school district equal in value to a percentage | 2824 |
of the amount of taxes exempted in the eleventh and subsequent | 2825 |
years of the exemption period or, in the case of exemption | 2826 |
percentages in excess of seventy-five per cent, compensation equal | 2827 |
in value to a percentage of the taxes that would be payable on the | 2828 |
portion of the improvements in excess of seventy-five per cent | 2829 |
were that portion to be subject to taxation, or other mutually | 2830 |
agreeable compensation. | 2831 |
(2) The board of education shall certify its resolution to | 2832 |
the board of county commissioners not later than fourteen days | 2833 |
prior to the date the board of county commissioners intends to | 2834 |
adopt its resolution as indicated in the notice. If the board of | 2835 |
education and the board of county commissioners negotiate a | 2836 |
mutually acceptable compensation agreement, the resolution of the | 2837 |
board of county commissioners may declare the improvements a | 2838 |
public purpose for the number of years specified in that | 2839 |
resolution or, in the case of exemption percentages in excess of | 2840 |
seventy-five per cent, for the exemption percentage specified in | 2841 |
the resolution. In either case, if the board of education and the | 2842 |
board of county commissioners fail to negotiate a mutually | 2843 |
acceptable compensation agreement, the resolution may declare the | 2844 |
improvements a public purpose for not more than ten years, and | 2845 |
shall not exempt more than seventy-five per cent of the | 2846 |
improvements from taxation. If the board of education fails to | 2847 |
certify a resolution to the board of county commissioners within | 2848 |
the time prescribed by this section, the board of county | 2849 |
commissioners thereupon may adopt the resolution and may declare | 2850 |
the improvements a public purpose for up to thirty years or, in | 2851 |
the case of exemption percentages proposed in excess of | 2852 |
seventy-five per cent, for the exemption percentage specified in | 2853 |
the resolution. The board of county commissioners may adopt the | 2854 |
resolution at any time after the board of education certifies its | 2855 |
resolution approving the exemption to the board of county | 2856 |
commissioners, or, if the board of education approves the | 2857 |
exemption on the condition that a mutually acceptable compensation | 2858 |
agreement be negotiated, at any time after the compensation | 2859 |
agreement is agreed to by the board of education and the board of | 2860 |
county commissioners. If a mutually acceptable compensation | 2861 |
agreement is negotiated between the board of county commissioners | 2862 |
and the board of education, including agreements for payments in | 2863 |
lieu of taxes under section 5709.79 of the Revised Code, the board | 2864 |
of county commissioners shall compensate the joint vocational | 2865 |
school district within which the parcel or district is located at | 2866 |
the same rate and under the same terms received by the city, | 2867 |
local, or exempted village school district. | 2868 |
(3) If a board of education has adopted a resolution waiving | 2869 |
its right to approve exemptions from taxation under this section | 2870 |
and the resolution remains in effect, approval of such exemptions | 2871 |
by the board of education is not required under division (C) of | 2872 |
this section. If a board of education has adopted a resolution | 2873 |
allowing a board of county commissioners to deliver the notice | 2874 |
required under division (C) of this section fewer than forty-five | 2875 |
business days prior to approval of the resolution by the board of | 2876 |
county commissioners, the board of county commissioners shall | 2877 |
deliver the notice to the board of education not later than the | 2878 |
number of days prior to such approval as prescribed by the board | 2879 |
of education in its resolution. If a board of education adopts a | 2880 |
resolution waiving its right to approve exemptions or shortening | 2881 |
the notification period, the board of education shall certify a | 2882 |
copy of the resolution to the board of county commissioners. If | 2883 |
the board of education rescinds such a resolution, it shall | 2884 |
certify notice of the rescission to the board of county | 2885 |
commissioners. | 2886 |
(D)(1) If a proposed resolution under division (B)(1) of this | 2887 |
section exempts improvements with respect to a parcel within an | 2888 |
incentive district for more than ten years, or the percentage of | 2889 |
the improvement exempted from taxation exceeds seventy-five per | 2890 |
cent, not later than forty-five business days prior to adopting | 2891 |
the resolution the board of county commissioners shall deliver to | 2892 |
the board of township trustees of any township within which the | 2893 |
incentive district is or will be located a notice that states its | 2894 |
intent to adopt a resolution creating an incentive district. The | 2895 |
notice shall include a copy of the proposed resolution, identify | 2896 |
the parcels for which improvements are to be exempted from | 2897 |
taxation, provide an estimate of the true value in money of the | 2898 |
improvements, specify the period of time for which the | 2899 |
improvements would be exempted from taxation, specify the | 2900 |
percentage of the improvements that would be exempted from | 2901 |
taxation, and indicate the date on which the board intends to | 2902 |
adopt the resolution. | 2903 |
(2) The board of township trustees, by resolution adopted by | 2904 |
a majority of the board, may object to the exemption for the | 2905 |
number of years in excess of ten, may object to the exemption for | 2906 |
the percentage of the improvement to be exempted in excess of | 2907 |
seventy-five per cent, or both. If the board of township trustees | 2908 |
objects, the board of township trustees may negotiate a mutually | 2909 |
acceptable compensation agreement with the board of county | 2910 |
commissioners. In no case shall the compensation provided to the | 2911 |
board of township trustees exceed the property taxes forgone due | 2912 |
to the exemption. If the board of township trustees objects, and | 2913 |
the board of township trustees and the board of county | 2914 |
commissioners fail to negotiate a mutually acceptable compensation | 2915 |
agreement, the resolution adopted under division (B)(1) of this | 2916 |
section shall provide to the board of township trustees | 2917 |
compensation in the eleventh and subsequent years of the exemption | 2918 |
period equal in value to not more than fifty per cent of the taxes | 2919 |
that would be payable to the township or, if the board of township | 2920 |
trustee's objection includes an objection to an exemption | 2921 |
percentage in excess of seventy-five per cent, compensation equal | 2922 |
in value to not more than fifty per cent of the taxes that would | 2923 |
be payable to the township on the portion of the improvement in | 2924 |
excess of seventy-five per cent, were that portion to be subject | 2925 |
to taxation. The board of township trustees shall certify its | 2926 |
resolution to the board of county commissioners not later than | 2927 |
thirty days after receipt of the notice. | 2928 |
(3) If the board of township trustees does not object or | 2929 |
fails to certify a resolution objecting to an exemption within | 2930 |
thirty days after receipt of the notice, the board of county | 2931 |
commissioners may adopt its resolution, and no compensation shall | 2932 |
be provided to the board of township trustees. If the board of | 2933 |
township trustees certifies its resolution objecting to the | 2934 |
commissioners' resolution, the board of county commissioners may | 2935 |
adopt its resolution at any time after a mutually acceptable | 2936 |
compensation agreement is agreed to by the board of county | 2937 |
commissioners and the board of township trustees. If the board of | 2938 |
township trustees certifies a resolution objecting to the | 2939 |
commissioners' resolution, the board of county commissioners may | 2940 |
adopt its resolution at any time after a mutually acceptable | 2941 |
compensation agreement is agreed to by the board of county | 2942 |
commissioners and the board of township trustees, or, if no | 2943 |
compensation agreement is negotiated, at any time after the board | 2944 |
of county commissioners in the proposed resolution to provide | 2945 |
compensation to the board of township trustees of fifty per cent | 2946 |
of the taxes that would be payable to the township in the eleventh | 2947 |
and subsequent years of the exemption period or on the portion of | 2948 |
the improvement in excess of seventy-five per cent, were that | 2949 |
portion to be subject to taxation. | 2950 |
(E) Service payments in lieu of taxes that are attributable | 2951 |
to any amount by which the effective tax rate of either a renewal | 2952 |
levy with an increase or a replacement levy exceeds the effective | 2953 |
tax rate of the levy renewed or replaced, or that are attributable | 2954 |
to an additional levy, for a levy authorized by the voters for any | 2955 |
of the following purposes on or after January 1, 2006, and which | 2956 |
are provided pursuant to a resolution creating an incentive | 2957 |
district under division (B)(1) of this section that is adopted on | 2958 |
or after January 1, 2006, shall be distributed to the appropriate | 2959 |
taxing authority as required under division (D) of section 5709.79 | 2960 |
of the Revised Code in an amount equal to the amount of taxes from | 2961 |
that additional levy or from the increase in the effective tax | 2962 |
rate of such renewal or replacement levy that would have been | 2963 |
payable to that taxing authority from the following levies were it | 2964 |
not for the exemption authorized under division (B) of this | 2965 |
section: | 2966 |
(1) A tax levied under division (L) of section 5705.19 or | 2967 |
section 5705.191 of the Revised Code for community mental | 2968 |
retardation and developmental disabilities programs and services | 2969 |
pursuant to Chapter 5126. of the Revised Code; | 2970 |
(2) A tax levied under division (Y) of section 5705.19 of the | 2971 |
Revised Code for providing or maintaining senior citizens services | 2972 |
or facilities; | 2973 |
(3) A tax levied under section 5705.22 of the Revised Code | 2974 |
for county hospitals; | 2975 |
(4) A tax levied by a joint-county district or by a county | 2976 |
under section 5705.19, 5705.191, or 5705.221 of the Revised Code | 2977 |
for alcohol, drug addiction, and mental health services or | 2978 |
facilities; | 2979 |
(5) A tax levied under section 5705.23 of the Revised Code | 2980 |
for library purposes; | 2981 |
(6) A tax levied under section 5705.24 of the Revised Code | 2982 |
for the support of children services and the placement and care of | 2983 |
children; | 2984 |
(7) A tax levied under division (Z) of section 5705.19 of the | 2985 |
Revised Code for the provision and maintenance of zoological park | 2986 |
services and facilities under section 307.76 of the Revised Code; | 2987 |
(8) A tax levied under section 511.27 or division (H) of | 2988 |
section 5705.19 of the Revised Code for the support of township | 2989 |
park districts; | 2990 |
(9) A tax levied under division (A), (F), or (H) of section | 2991 |
5705.19 of the Revised Code for parks and recreational purposes of | 2992 |
a joint recreation district organized pursuant to division (B) of | 2993 |
section 755.14 of the Revised Code; | 2994 |
(10) A tax levied under section 1545.20 or 1545.21 of the | 2995 |
Revised Code for park district purposes; | 2996 |
(11) A tax levied under section 5705.191 of the Revised Code | 2997 |
for the purpose of making appropriations for public assistance; | 2998 |
human or social services; public relief; public welfare; public | 2999 |
health and hospitalization; and support of general hospitals; | 3000 |
(12) A tax levied under section 3709.29 of the Revised Code | 3001 |
for a general health district program. | 3002 |
(F) An exemption from taxation granted under this section | 3003 |
commences with the tax year specified in the resolution so long as | 3004 |
the year specified in the resolution commences after the effective | 3005 |
date of the resolution. If the resolution specifies a year | 3006 |
commencing before the effective date of the resolution or | 3007 |
specifies no year whatsoever, the exemption commences with the tax | 3008 |
year in which an exempted improvement first appears on the tax | 3009 |
list and duplicate of real and public utility property and that | 3010 |
commences after the effective date of the resolution. Except as | 3011 |
otherwise provided in this division, the exemption ends on the | 3012 |
date specified in the resolution as the date the improvement | 3013 |
ceases to be a public purpose or the incentive district expires, | 3014 |
or ends on the date on which the county can no longer require | 3015 |
annual service payments in lieu of taxes under section 5709.79 of | 3016 |
the Revised Code, whichever occurs first. The exemption of an | 3017 |
improvement with respect to a parcel or within an incentive | 3018 |
district may end on a later date, as specified in the resolution, | 3019 |
if the board of commissioners and the board of education of the | 3020 |
city, local, or exempted village school district within which the | 3021 |
parcel or district is located have entered into a compensation | 3022 |
agreement under section 5709.82 of the Revised Code with respect | 3023 |
to the improvement, and the board of education has approved the | 3024 |
term of the exemption under division (C)(1) of this section, but | 3025 |
in no case shall the improvement be exempted from taxation for | 3026 |
more than thirty years. Exemptions shall be claimed and allowed in | 3027 |
the same or a similar manner as in the case of other real property | 3028 |
exemptions. If an exemption status changes during a tax year, the | 3029 |
procedure for the apportionment of the taxes for that year is the | 3030 |
same as in the case of other changes in tax exemption status | 3031 |
during the year. | 3032 |
(G) If the board of county commissioners is not required by | 3033 |
this section to notify the board of education of the board of | 3034 |
county commissioners' intent to declare improvements to be a | 3035 |
public purpose, the board of county commissioners shall comply | 3036 |
with the notice requirements imposed under section 5709.83 of the | 3037 |
Revised Code before taking formal action to adopt the resolution | 3038 |
making that declaration, unless the board of education has adopted | 3039 |
a resolution under that section waiving its right to receive such | 3040 |
a notice. | 3041 |
(H) The county, not later than fifteen days after the | 3042 |
adoption of a resolution under this section, shall submit to the | 3043 |
director of development a copy of the resolution. On or before the | 3044 |
thirty-first day of March of each year, the county shall submit a | 3045 |
status report to the director of development. The report shall | 3046 |
indicate, in the manner prescribed by the director, the progress | 3047 |
of the project during each year that an exemption remains in | 3048 |
effect, including a summary of the receipts from service payments | 3049 |
in lieu of taxes; expenditures of money from the fund created | 3050 |
under section 5709.80 of the Revised Code; a description of the | 3051 |
public infrastructure improvements and housing renovations | 3052 |
financed with such expenditures; and a quantitative summary of | 3053 |
changes in employment and private investment resulting from each | 3054 |
project. | 3055 |
(I) Nothing in this section shall be construed to prohibit a | 3056 |
board of county commissioners from declaring to be a public | 3057 |
purpose improvements with respect to more than one parcel. | 3058 |
(J) If a parcel is located in a new community district in | 3059 |
which the new community authority imposes a community development | 3060 |
charge on the basis of rentals received from leases of real | 3061 |
property as described in division (L)(2) of section 349.01 of the | 3062 |
Revised Code, the parcel may not be exempted from taxation under | 3063 |
this section. | 3064 |
Sec. 5727.84. (A) As used in this section and sections | 3065 |
5727.85, 5727.86, and 5727.87 of the Revised Code: | 3066 |
(1) "School district" means a city, local, or exempted | 3067 |
village school district. | 3068 |
(2) "Joint vocational school district" means a joint | 3069 |
vocational school district created under section 3311.16 of the | 3070 |
Revised Code, and includes a cooperative education school district | 3071 |
created under section 3311.52 or 3311.521 of the Revised Code and | 3072 |
a county school financing district created under section 3311.50 | 3073 |
of the Revised Code. | 3074 |
(3) "Local taxing unit" means a subdivision or taxing unit, | 3075 |
as defined in section 5705.01 of the Revised Code, a park district | 3076 |
created under Chapter 1545. of the Revised Code, or a township | 3077 |
park district established under section 511.23 of the Revised | 3078 |
Code, but excludes school districts and joint vocational school | 3079 |
districts. | 3080 |
(4) "State education aid," for a school district, means the | 3081 |
following: | 3082 |
(a) For fiscal years prior to fiscal year 2010, the sum of | 3083 |
state aid amounts computed for the district under the following | 3084 |
provisions, as they existed for the applicable fiscal year: | 3085 |
divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section | 3086 |
3317.022; divisions (B), (C), and (D) of section 3317.023; | 3087 |
divisions (G), (L), and (N) of section 3317.024; and sections | 3088 |
3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and | 3089 |
3317.053 of the Revised Code; and the adjustments required by: | 3090 |
division (C) of section 3310.08; division (C)(2) of section | 3091 |
3310.41; division (C) of section 3314.08; division (D)(2) of | 3092 |
section 3314.091; division (D) of section 3314.13; divisions (E), | 3093 |
(K), (L), (M), and (N) of section 3317.023; division (C) of | 3094 |
section 3317.20; and sections 3313.979 and 3313.981 of the Revised | 3095 |
Code. However, when calculating state education aid for a school | 3096 |
district for fiscal years 2008 and 2009, include the amount | 3097 |
computed for the district under Section 269.20.80 of H.B. 119 of | 3098 |
the 127th general assembly, as subsequently amended, instead of | 3099 |
division (D) of section 3317.022 of the Revised Code; and include | 3100 |
amounts calculated under Section 269.30.80 of H.B. 119 of the | 3101 |
127th general assembly, as subsequently amended. | 3102 |
(b) For fiscal years 2010 and 2011, the sum of the amounts | 3103 |
computed for the district under former sections 3306.052, 3306.12, | 3104 |
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code and | 3105 |
the following provisions, as they existed for the applicable | 3106 |
fiscal year: division (G) of section 3317.024; sections 3317.05, | 3107 |
3317.052, and 3317.053 of the Revised Code; and the adjustments | 3108 |
required by division (C) of section 3310.08; division (C)(2) of | 3109 |
section 3310.41; division (C) of section 3314.08; division (D)(2) | 3110 |
of section 3314.091; division (D) of section 3314.13; divisions | 3111 |
(E), (K), (L), (M), and (N) of section 3317.023; division (C) of | 3112 |
section 3317.20; and sections 3313.979, 3313.981, and 3326.33 of | 3113 |
the Revised Code. | 3114 |
(c) For fiscal years 2012 and 2013, the amount paid in | 3115 |
accordance with the section of H.B. 153 of the 129th general | 3116 |
assembly entitled "FUNDING FOR CITY, EXEMPTED VILLAGE, AND LOCAL | 3117 |
SCHOOL DISTRICTS" and the adjustments required by division (C) of | 3118 |
section 3310.08; division (C)(2) of section 3310.41; section | 3119 |
3310.55; division (C) of section 3314.08; division (D)(2) of | 3120 |
section 3314.091; division (D) of section 3314.13; divisions (B), | 3121 |
(H), (I), (J), and (K) of section 3317.023; division (C) of | 3122 |
section 3317.20; and sections 3313.979 and 3313.981 of the Revised | 3123 |
Code. | 3124 |
(5) "State education aid," for a joint vocational school | 3125 |
district, means the following: | 3126 |
(a) For fiscal years prior to fiscal year 2010, the sum of | 3127 |
the state aid amounts computed for the district under division (N) | 3128 |
of section 3317.024 and section 3317.16 of the Revised Code. | 3129 |
However, when calculating state education aid for a joint | 3130 |
vocational school district for fiscal years 2008 and 2009, include | 3131 |
the amount computed for the district under Section 269.30.90 of | 3132 |
H.B. 119 of the 127th general assembly, as subsequently amended. | 3133 |
(b) For fiscal years 2010 and 2011, the amount computed for | 3134 |
the district in accordance with the section of H.B. 1 of the 128th | 3135 |
general assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL | 3136 |
DISTRICTS". | 3137 |
(c) For fiscal years 2012 and 2013, the amount paid in | 3138 |
accordance with the section of H.B. 153 of the 129th general | 3139 |
assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL DISTRICTS." | 3140 |
(6) "State education aid offset" means the amount determined | 3141 |
for each school district or joint vocational school district under | 3142 |
division (A)(1) of section 5727.85 of the Revised Code. | 3143 |
(7) "Recognized valuation" has the same meaning as in section | 3144 |
3317.02 of the Revised Code. | 3145 |
(8) "Electric company tax value loss" means the amount | 3146 |
determined under division (D) of this section. | 3147 |
(9) "Natural gas company tax value loss" means the amount | 3148 |
determined under division (E) of this section. | 3149 |
(10) "Tax value loss" means the sum of the electric company | 3150 |
tax value loss and the natural gas company tax value loss. | 3151 |
(11) "Fixed-rate levy" means any tax levied on property other | 3152 |
than a fixed-sum levy. | 3153 |
(12) "Fixed-rate levy loss" means the amount determined under | 3154 |
division (G) of this section. | 3155 |
(13) "Fixed-sum levy" means a tax levied on property at | 3156 |
whatever rate is required to produce a specified amount of tax | 3157 |
money or levied in excess of the ten-mill limitation to pay debt | 3158 |
charges, and includes school district emergency levies | 3159 |
charged and payable pursuant to section 5705.194 of the Revised | 3160 |
Code. | 3161 |
(14) "Fixed-sum levy loss" means the amount determined under | 3162 |
division (H) of this section. | 3163 |
(15) "Consumer price index" means the consumer price index | 3164 |
(all items, all urban consumers) prepared by the bureau of labor | 3165 |
statistics of the United States department of labor. | 3166 |
(16) "Total resources" | 3167 |
the same | 3168 |
Code. | 3169 |
(17) "2011 current expense S.B. 3 allocation" means the sum | 3170 |
of payments received by a school district or joint vocational | 3171 |
school district in fiscal year 2011 for current expense levy | 3172 |
losses pursuant to division (C)(2) of section 5727.85 of the | 3173 |
Revised Code. If a fixed-rate levy eligible for reimbursement is | 3174 |
not | 3175 |
"2011 current expense S.B. 3 allocation" used to compute payments | 3176 |
to be made under division (C)(3) of section 5727.85 of the Revised | 3177 |
Code in the tax years following the last year the levy is | 3178 |
charged and payable shall be reduced | 3179 |
extent that those payments are attributable to the fixed-rate levy | 3180 |
loss of that levy. | 3181 |
(18) "2010 current expense S.B. 3 allocation" means the sum | 3182 |
of payments received by a municipal corporation in calendar year | 3183 |
2010 for current expense levy losses pursuant to division (A)(1) | 3184 |
of section 5727.86 of the Revised Code, excluding any such | 3185 |
payments received for current expense levy losses attributable to | 3186 |
a tax levied under section 5705.23 of the Revised Code. If a | 3187 |
fixed-rate levy eligible for reimbursement is not | 3188 |
and payable in any year after tax year 2010, "2010 current expense | 3189 |
S.B. 3 allocation" used to compute payments to be made under | 3190 |
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code | 3191 |
in the tax years following the last year the levy is | 3192 |
charged and payable shall be reduced | 3193 |
extent that those payments are attributable to the fixed-rate levy | 3194 |
loss of that levy. | 3195 |
(19) "2010 S.B. 3 allocation" means the sum of payments | 3196 |
received by a local taxing unit during calendar year 2010 pursuant | 3197 |
to division (A)(1) of section 5727.86 of the Revised Code, | 3198 |
excluding any such payments received for fixed-rate levy losses | 3199 |
attributable to a tax levied under section 5705.23 of the Revised | 3200 |
Code. If a fixed-rate levy eligible for reimbursement is not | 3201 |
3202 | |
S.B. 3 allocation" used to compute payments to be made under | 3203 |
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code | 3204 |
in the tax years following the last year the levy is | 3205 |
charged and payable shall be reduced | 3206 |
extent that those payments are attributable to the fixed-rate levy | 3207 |
loss of that levy. | 3208 |
(20) "Total S.B. 3 allocation" means, in the case of a school | 3209 |
district or joint vocational school district, the sum of the | 3210 |
3211 | |
divisions (C)(2) and (D) of section 5727.85 of the Revised Code. | 3212 |
In the case of a local taxing unit, "total S.B. 3 allocation" | 3213 |
means the sum of payments received by the unit in calendar year | 3214 |
2010 pursuant to divisions (A)(1) and (4) of section 5727.86 of | 3215 |
the Revised Code, excluding any such payments received for | 3216 |
fixed-rate levy losses attributable to a tax levied under section | 3217 |
5705.23 of the Revised Code. If a fixed-rate levy eligible for | 3218 |
reimbursement is not | 3219 |
tax year 2010, "total S.B. 3 allocation" used to compute payments | 3220 |
to be made under division (C)(3) of section 5727.85 or division | 3221 |
(A)(1)(d) or (e) of section 5727.86 of the Revised Code in the tax | 3222 |
years following the last year the levy is | 3223 |
payable shall be reduced | 3224 |
payments are attributable to the fixed-rate levy loss of that levy | 3225 |
as would be computed under division (C)(2) of section 5727.85 or | 3226 |
division (A)(1)(b) of section 5727.86 of the Revised Code. | 3227 |
(21) "2011 non-current expense S.B. 3 allocation" means the | 3228 |
difference of a school district's or joint vocational school | 3229 |
district's total S.B. 3 allocation minus the sum of the school | 3230 |
district's 2011 current expense S.B. 3 allocation and the portion | 3231 |
of the school district's total S.B. 3 allocation constituting | 3232 |
reimbursement for debt levies pursuant to division (D) of section | 3233 |
5727.85 of the Revised Code. | 3234 |
(22) "2010 non-current expense S.B. 3 allocation" means the | 3235 |
difference of a municipal corporation's total S.B. 3 allocation | 3236 |
minus the sum of its 2010 current expense S.B. 3 allocation and | 3237 |
the portion of its total S.B. 3 allocation constituting | 3238 |
reimbursement for debt levies pursuant to division (A)(4) of | 3239 |
section 5727.86 of the Revised Code. | 3240 |
(23) "S.B. 3 allocation for library purposes" means, in the | 3241 |
case of a county, municipal corporation, school district, or | 3242 |
township public library that receives the proceeds of a tax levied | 3243 |
under section 5705.23 of the Revised Code, the sum of the payments | 3244 |
received by the public library in calendar year 2010 pursuant to | 3245 |
section 5727.86 of the Revised Code for fixed-rate levy losses | 3246 |
attributable to a tax levied under section 5705.23 of the Revised | 3247 |
Code. If a fixed-rate levy authorized under section 5705.23 of the | 3248 |
Revised Code that is eligible for reimbursement is not charged and | 3249 |
payable in any year after tax year 2010, "S.B. 3 allocation for | 3250 |
library purposes" used to compute payments to be made under | 3251 |
division (A)(1)(f) of section 5727.86 of the Revised Code in the | 3252 |
tax years following the last year the levy is charged and payable | 3253 |
shall be reduced to the extent that those payments are | 3254 |
attributable to the fixed-rate levy loss of that levy as would be | 3255 |
computed under division (A)(1)(b) of section 5727.86 of the | 3256 |
Revised Code. | 3257 |
(24) "Threshold per cent" means, in the case of a school | 3258 |
district or joint vocational school district, two per cent for | 3259 |
fiscal year 2012 and four per cent for fiscal years 2013 and | 3260 |
thereafter. In the case of a local taxing unit or public library | 3261 |
that receives the proceeds of a tax levied under section 5705.23 | 3262 |
of the Revised Code, "threshold per cent" means two per cent for | 3263 |
calendar year 2011, four per cent for calendar year 2012, and six | 3264 |
per cent for calendar years 2013 and thereafter. | 3265 |
(B) The kilowatt-hour tax receipts fund is hereby created in | 3266 |
the state treasury and shall consist of money arising from the tax | 3267 |
imposed by section 5727.81 of the Revised Code. All money in the | 3268 |
kilowatt-hour tax receipts fund shall be credited as follows: | 3269 |
Fiscal Year | General Revenue Fund | School District Property Tax Replacement Fund | Local Government Property Tax Replacement Fund | 3270 | |
2001-2011 | 63.0% | 25.4% | 11.6% | 3271 | |
2012 and thereafter | 88.0% | 9.0% | 3.0% | 3272 |
(C) The natural gas tax receipts fund is hereby created in | 3273 |
the state treasury and shall consist of money arising from the tax | 3274 |
imposed by section 5727.811 of the Revised Code. All money in the | 3275 |
fund shall be credited as follows: | 3276 |
(1) For fiscal years before fiscal year 2012: | 3277 |
(a) Sixty-eight and seven-tenths per cent shall be credited | 3278 |
to the school district property tax replacement fund for the | 3279 |
purpose of making the payments described in section 5727.85 of the | 3280 |
Revised Code. | 3281 |
(b) Thirty-one and three-tenths per cent shall be credited to | 3282 |
the local government property tax replacement fund for the purpose | 3283 |
of making the payments described in section 5727.86 of the Revised | 3284 |
Code. | 3285 |
(2) For fiscal years 2012 and thereafter, one hundred per | 3286 |
cent to the general revenue fund. | 3287 |
(D) Not later than January 1, 2002, the tax commissioner | 3288 |
shall determine for each taxing district its electric company tax | 3289 |
value loss, which is the sum of the applicable amounts described | 3290 |
in divisions (D)(1) to (4) of this section: | 3291 |
(1) The difference obtained by subtracting the amount | 3292 |
described in division (D)(1)(b) from the amount described in | 3293 |
division (D)(1)(a) of this section. | 3294 |
(a) The value of electric company and rural electric company | 3295 |
tangible personal property as assessed by the tax commissioner for | 3296 |
tax year 1998 on a preliminary assessment, or an amended | 3297 |
preliminary assessment if issued prior to March 1, 1999, and as | 3298 |
apportioned to the taxing district for tax year 1998; | 3299 |
(b) The value of electric company and rural electric company | 3300 |
tangible personal property as assessed by the tax commissioner for | 3301 |
tax year 1998 had the property been apportioned to the taxing | 3302 |
district for tax year 2001, and assessed at the rates in effect | 3303 |
for tax year 2001. | 3304 |
(2) The difference obtained by subtracting the amount | 3305 |
described in division (D)(2)(b) from the amount described in | 3306 |
division (D)(2)(a) of this section. | 3307 |
(a) The three-year average for tax years 1996, 1997, and 1998 | 3308 |
of the assessed value from nuclear fuel materials and assemblies | 3309 |
assessed against a person under Chapter 5711. of the Revised Code | 3310 |
from the leasing of them to an electric company for those | 3311 |
respective tax years, as reflected in the preliminary assessments; | 3312 |
(b) The three-year average assessed value from nuclear fuel | 3313 |
materials and assemblies assessed under division (D)(2)(a) of this | 3314 |
section for tax years 1996, 1997, and 1998, as reflected in the | 3315 |
preliminary assessments, using an assessment rate of twenty-five | 3316 |
per cent. | 3317 |
(3) In the case of a taxing district having a nuclear power | 3318 |
plant within its territory, any amount, resulting in an electric | 3319 |
company tax value loss, obtained by subtracting the amount | 3320 |
described in division (D)(1) of this section from the difference | 3321 |
obtained by subtracting the amount described in division (D)(3)(b) | 3322 |
of this section from the amount described in division (D)(3)(a) of | 3323 |
this section. | 3324 |
(a) The value of electric company tangible personal property | 3325 |
as assessed by the tax commissioner for tax year 2000 on a | 3326 |
preliminary assessment, or an amended preliminary assessment if | 3327 |
issued prior to March 1, 2001, and as apportioned to the taxing | 3328 |
district for tax year 2000; | 3329 |
(b) The value of electric company tangible personal property | 3330 |
as assessed by the tax commissioner for tax year 2001 on a | 3331 |
preliminary assessment, or an amended preliminary assessment if | 3332 |
issued prior to March 1, 2002, and as apportioned to the taxing | 3333 |
district for tax year 2001. | 3334 |
(4) In the case of a taxing district having a nuclear power | 3335 |
plant within its territory, the difference obtained by subtracting | 3336 |
the amount described in division (D)(4)(b) of this section from | 3337 |
the amount described in division (D)(4)(a) of this section, | 3338 |
provided that such difference is greater than ten per cent of the | 3339 |
amount described in division (D)(4)(a) of this section. | 3340 |
(a) The value of electric company tangible personal property | 3341 |
as assessed by the tax commissioner for tax year 2005 on a | 3342 |
preliminary assessment, or an amended preliminary assessment if | 3343 |
issued prior to March 1, 2006, and as apportioned to the taxing | 3344 |
district for tax year 2005; | 3345 |
(b) The value of electric company tangible personal property | 3346 |
as assessed by the tax commissioner for tax year 2006 on a | 3347 |
preliminary assessment, or an amended preliminary assessment if | 3348 |
issued prior to March 1, 2007, and as apportioned to the taxing | 3349 |
district for tax year 2006. | 3350 |
(E) Not later than January 1, 2002, the tax commissioner | 3351 |
shall determine for each taxing district its natural gas company | 3352 |
tax value loss, which is the sum of the amounts described in | 3353 |
divisions (E)(1) and (2) of this section: | 3354 |
(1) The difference obtained by subtracting the amount | 3355 |
described in division (E)(1)(b) from the amount described in | 3356 |
division (E)(1)(a) of this section. | 3357 |
(a) The value of all natural gas company tangible personal | 3358 |
property, other than property described in division (E)(2) of this | 3359 |
section, as assessed by the tax commissioner for tax year 1999 on | 3360 |
a preliminary assessment, or an amended preliminary assessment if | 3361 |
issued prior to March 1, 2000, and apportioned to the taxing | 3362 |
district for tax year 1999; | 3363 |
(b) The value of all natural gas company tangible personal | 3364 |
property, other than property described in division (E)(2) of this | 3365 |
section, as assessed by the tax commissioner for tax year 1999 had | 3366 |
the property been apportioned to the taxing district for tax year | 3367 |
2001, and assessed at the rates in effect for tax year 2001. | 3368 |
(2) The difference in the value of current gas obtained by | 3369 |
subtracting the amount described in division (E)(2)(b) from the | 3370 |
amount described in division (E)(2)(a) of this section. | 3371 |
(a) The three-year average assessed value of current gas as | 3372 |
assessed by the tax commissioner for tax years 1997, 1998, and | 3373 |
1999 on a preliminary assessment, or an amended preliminary | 3374 |
assessment if issued prior to March 1, 2001, and as apportioned in | 3375 |
the taxing district for those respective years; | 3376 |
(b) The three-year average assessed value from current gas | 3377 |
under division (E)(2)(a) of this section for tax years 1997, 1998, | 3378 |
and 1999, as reflected in the preliminary assessment, using an | 3379 |
assessment rate of twenty-five per cent. | 3380 |
(F) The tax commissioner may request that natural gas | 3381 |
companies, electric companies, and rural electric companies file a | 3382 |
report to help determine the tax value loss under divisions (D) | 3383 |
and (E) of this section. The report shall be filed within thirty | 3384 |
days of the commissioner's request. A company that fails to file | 3385 |
the report or does not timely file the report is subject to the | 3386 |
penalty in section 5727.60 of the Revised Code. | 3387 |
(G) Not later than January 1, 2002, the tax commissioner | 3388 |
shall determine for each school district, joint vocational school | 3389 |
district, and local taxing unit its fixed-rate levy loss, which is | 3390 |
the sum of its electric company tax value loss multiplied by the | 3391 |
tax rate in effect in tax year 1998 for fixed-rate levies and its | 3392 |
natural gas company tax value loss multiplied by the tax rate in | 3393 |
effect in tax year 1999 for fixed-rate levies. | 3394 |
(H) Not later than January 1, 2002, the tax commissioner | 3395 |
shall determine for each school district, joint vocational school | 3396 |
district, and local taxing unit its fixed-sum levy loss, which is | 3397 |
the amount obtained by subtracting the amount described in | 3398 |
division (H)(2) of this section from the amount described in | 3399 |
division (H)(1) of this section: | 3400 |
(1) The sum of the electric company tax value loss multiplied | 3401 |
by the tax rate in effect in tax year 1998, and the natural gas | 3402 |
company tax value loss multiplied by the tax rate in effect in tax | 3403 |
year 1999, for fixed-sum levies for all taxing districts within | 3404 |
each school district, joint vocational school district, and local | 3405 |
taxing unit. For the years 2002 through 2006, this computation | 3406 |
shall include school district emergency levies that existed in | 3407 |
1998 in the case of the electric company tax value loss, and 1999 | 3408 |
in the case of the natural gas company tax value loss, and all | 3409 |
other fixed-sum levies that existed in 1998 in the case of the | 3410 |
electric company tax value loss and 1999 in the case of the | 3411 |
natural gas company tax value loss and continue to be charged in | 3412 |
the tax year preceding the distribution year. For the years 2007 | 3413 |
through 2016 in the case of school district emergency levies, and | 3414 |
for all years after 2006 in the case of all other fixed-sum | 3415 |
levies, this computation shall exclude all fixed-sum levies that | 3416 |
existed in 1998 in the case of the electric company tax value loss | 3417 |
and 1999 in the case of the natural gas company tax value loss, | 3418 |
but are no longer in effect in the tax year preceding the | 3419 |
distribution year. For the purposes of this section, an emergency | 3420 |
levy that existed in 1998 in the case of the electric company tax | 3421 |
value loss, and 1999 in the case of the natural gas company tax | 3422 |
value loss, continues to exist in a year beginning on or after | 3423 |
January 1, 2007, but before January 1, 2017, if, in that year, the | 3424 |
board of education levies a school district emergency levy for an | 3425 |
annual sum at least equal to the annual sum levied by the board in | 3426 |
tax year 1998 or 1999, respectively, less the amount of the | 3427 |
payment certified under this division for 2002. | 3428 |
(2) The total taxable value in tax year 1999 less the tax | 3429 |
value loss in each school district, joint vocational school | 3430 |
district, and local taxing unit multiplied by one-fourth of one | 3431 |
mill. | 3432 |
If the amount computed under division (H) of this section for | 3433 |
any school district, joint vocational school district, or local | 3434 |
taxing unit is greater than zero, that amount shall equal the | 3435 |
fixed-sum levy loss reimbursed pursuant to division (F) of section | 3436 |
5727.85 of the Revised Code or division (A)(2) of section 5727.86 | 3437 |
of the Revised Code, and the one-fourth of one mill that is | 3438 |
subtracted under division (H)(2) of this section shall be | 3439 |
apportioned among all contributing fixed-sum levies in the | 3440 |
proportion of each levy to the sum of all fixed-sum levies within | 3441 |
each school district, joint vocational school district, or local | 3442 |
taxing unit. | 3443 |
(I) Notwithstanding divisions (D), (E), (G), and (H) of this | 3444 |
section, in computing the tax value loss, fixed-rate levy loss, | 3445 |
and fixed-sum levy loss, the tax commissioner shall use the | 3446 |
greater of the 1998 tax rate or the 1999 tax rate in the case of | 3447 |
levy losses associated with the electric company tax value loss, | 3448 |
but the 1999 tax rate shall not include for this purpose any tax | 3449 |
levy approved by the voters after June 30, 1999, and the tax | 3450 |
commissioner shall use the greater of the 1999 or the 2000 tax | 3451 |
rate in the case of levy losses associated with the natural gas | 3452 |
company tax value loss. | 3453 |
(J) Not later than January 1, 2002, the tax commissioner | 3454 |
shall certify to the department of education the tax value loss | 3455 |
determined under divisions (D) and (E) of this section for each | 3456 |
taxing district, the fixed-rate levy loss calculated under | 3457 |
division (G) of this section, and the fixed-sum levy loss | 3458 |
calculated under division (H) of this section. The calculations | 3459 |
under divisions (G) and (H) of this section shall separately | 3460 |
display the levy loss for each levy eligible for reimbursement. | 3461 |
(K) Not later than September 1, 2001, the tax commissioner | 3462 |
shall certify the amount of the fixed-sum levy loss to the county | 3463 |
auditor of each county in which a school district with a fixed-sum | 3464 |
levy loss has territory. | 3465 |
Sec. 5727.86. (A) | 3466 |
tax commissioner shall compute the payments to be made to each | 3467 |
local taxing unit, and to each public library that receives the | 3468 |
proceeds of a tax levied under section 5705.23 of the Revised | 3469 |
Code, for each year according to divisions (A)(1), (2), (3), and | 3470 |
(4) and division (E) of this section, and shall distribute the | 3471 |
payments in the manner prescribed by division (C) of this section. | 3472 |
The calculation of the fixed-sum levy loss shall cover a time | 3473 |
period sufficient to include all fixed-sum levies for which the | 3474 |
tax commissioner determined, pursuant to division (H) of section | 3475 |
5727.84 of the Revised Code, that a fixed-sum levy loss is to be | 3476 |
reimbursed. | 3477 |
(1) Except as provided in divisions (A)(3) and (4) of this | 3478 |
section, the following amounts shall be paid on or before the | 3479 |
thirty-first day of August and the twenty-eighth day of February: | 3480 |
(a) For years 2002 through 2006, fifty per cent of the | 3481 |
fixed-rate levy loss computed under division (G) of section | 3482 |
5727.84 of the Revised Code; | 3483 |
(b) For years 2007 through 2010, forty per cent of the | 3484 |
fixed-rate levy loss computed under division (G) of section | 3485 |
5727.84 of the Revised Code; | 3486 |
(c) For the payment in 2011 to be made on or before the | 3487 |
twentieth day of February, the amount required to be paid in 2010 | 3488 |
on or before the twentieth day of February; | 3489 |
(d) For the payment in 2011 to be made on or before the | 3490 |
thirty-first day of August | 3491 |
3492 | |
(A)(1)(d)(i) or (ii) and (iii) of this section: | 3493 |
(i) If the ratio of fifty per cent of the taxing unit's 2010 | 3494 |
S.B. 3 allocation to its total resources is equal to or less than | 3495 |
the threshold per cent, zero; | 3496 |
(ii) If the ratio of fifty per cent of the taxing unit's 2010 | 3497 |
S.B. 3 allocation to its total resources is greater than the | 3498 |
threshold per cent, the difference of fifty per cent of the 2010 | 3499 |
S.B. 3 allocation minus the product of total resources multiplied | 3500 |
by the threshold per cent; | 3501 |
(iii) In the case of a municipal corporation, fifty per cent | 3502 |
of the product of its 2010 non-current expense S.B. 3 allocation | 3503 |
multiplied by seventy-five per cent
| 3504 |
3505 | |
3506 |
(e) For 2012 and each year thereafter, the sum of the amounts | 3507 |
in divisions (A)(1)(e)(i) or (ii) and (iii) of this section: | 3508 |
(i) If the ratio of the taxing unit's 2010 S.B. 3 allocation | 3509 |
to its total resources is equal to or less than the threshold per | 3510 |
cent, zero; | 3511 |
(ii) If the ratio of the taxing unit's 2010 S.B. 3 allocation | 3512 |
to its total resources is greater than the threshold per cent, | 3513 |
fifty per cent of the difference of the 2010 S.B. 3 allocation | 3514 |
minus the product of total resources multiplied by the threshold | 3515 |
per cent; | 3516 |
(iii) In the case of a municipal corporation, fifty per cent | 3517 |
of the product of its 2010 non-current expense S.B. 3 allocation | 3518 |
multiplied by fifty per cent for year 2012 and by twenty-five per | 3519 |
cent for years 2013 and thereafter. | 3520 |
(f) For the payment in 2012 to be made to a public library on | 3521 |
or before the thirty-first day of August and for all such payments | 3522 |
to be made in 2013 and thereafter, the amount in division | 3523 |
(A)(1)(f)(i) or (ii) of this section: | 3524 |
(i) If the ratio of S.B. 3 allocation for library purposes to | 3525 |
total library resources is equal to or less than the threshold per | 3526 |
cent, zero; | 3527 |
(ii) If the ratio of S.B. 3 allocation for library purposes | 3528 |
to total library resources is greater than the threshold per cent, | 3529 |
fifty per cent of the difference of the S.B. 3 allocation for | 3530 |
library purposes minus the product of total library resources | 3531 |
multiplied by the threshold per cent. | 3532 |
(2) For fixed-sum levy losses determined under division (H) | 3533 |
of section 5727.84 of the Revised Code, payments shall be made in | 3534 |
the amount of one hundred per cent of the fixed-sum levy loss for | 3535 |
payments required to be made in 2002 and thereafter. | 3536 |
(3) A local taxing unit in a county of less than two hundred | 3537 |
fifty square miles that receives eighty per cent or more of its | 3538 |
combined general fund and bond retirement fund revenues from | 3539 |
property taxes and rollbacks based on 1997 actual revenues as | 3540 |
presented in its 1999 tax budget, and in which electric companies | 3541 |
and rural electric companies comprise over twenty per cent of its | 3542 |
property valuation, shall receive one hundred per cent of its | 3543 |
fixed-rate levy losses from electric company tax value losses | 3544 |
certified under division (A) of this section in years 2002 to | 3545 |
2010. Beginning in 2011, payments for such local taxing units | 3546 |
shall be determined under division (A)(1) of this section. | 3547 |
(4) For taxes levied within the ten-mill limitation or | 3548 |
pursuant to a municipal charter for debt purposes in tax year 1998 | 3549 |
in the case of electric company tax value losses, and in tax year | 3550 |
1999 in the case of natural gas company tax value losses, payments | 3551 |
shall be made equal to one hundred per cent of the loss computed | 3552 |
as if the tax were a fixed-rate levy, but those payments shall | 3553 |
extend from 2011 through 2016 if the levy was | 3554 |
payable for debt purposes in tax year 2010. If the levy is not | 3555 |
3556 | |
any following tax year before tax year 2016, payments for that | 3557 |
levy shall be made under division (A)(1) of this section beginning | 3558 |
with the first year after the year the levy is | 3559 |
payable for a purpose other than debt. For the purposes of this | 3560 |
division, taxes levied pursuant to a municipal charter refer to | 3561 |
taxes levied pursuant to a provision of a municipal charter that | 3562 |
permits the tax to be levied without prior voter approval. | 3563 |
(B) Beginning in 2003, by the thirty-first day of January of | 3564 |
each year, the tax commissioner shall review the calculation | 3565 |
originally made under division (A) of this section of the | 3566 |
fixed-sum levy loss determined under division (H) of section | 3567 |
5727.84 of the Revised Code. If the commissioner determines that a | 3568 |
fixed-sum levy that had been scheduled to be reimbursed in the | 3569 |
current year has expired, a revised calculation for that and all | 3570 |
subsequent years shall be made. | 3571 |
(C) Payments to local taxing units and public libraries | 3572 |
required to be made under divisions (A) and (E) of this section | 3573 |
shall be paid from the local government property tax replacement | 3574 |
fund to the county undivided income tax fund in the proper county | 3575 |
treasury. The county treasurer shall distribute amounts paid under | 3576 |
division (A) of this section to the proper local taxing unit or | 3577 |
public library as if they had been levied and collected as taxes, | 3578 |
and the local taxing unit or public library shall apportion the | 3579 |
amounts so received among its funds in the same proportions as if | 3580 |
those amounts had been levied and collected as taxes. Except in | 3581 |
the case of amounts distributed to the county as a local taxing | 3582 |
unit, amounts distributed under division (E)(2) of this section | 3583 |
shall be credited to the general fund of the local taxing unit | 3584 |
that receives them. Amounts distributed to each county as a local | 3585 |
taxing unit under division (E)(2) of this section shall be | 3586 |
credited in the proportion that the current taxes charged and | 3587 |
payable from each levy of or by the county bears to the total | 3588 |
current taxes charged and payable from all levies of or by the | 3589 |
county. | 3590 |
(D) By February 5, 2002, the tax commissioner shall estimate | 3591 |
the amount of money in the local government property tax | 3592 |
replacement fund in excess of the amount necessary to make | 3593 |
payments in that month under division (C) of this section. | 3594 |
Notwithstanding division (A) of this section, the tax commissioner | 3595 |
may pay any local taxing unit, from those excess funds, nine and | 3596 |
four-tenths times the amount computed for 2002 under division | 3597 |
(A)(1) of this section. A payment made under this division shall | 3598 |
be in lieu of the payment to be made in February 2002 under | 3599 |
division (A)(1) of this section. A local taxing unit receiving a | 3600 |
payment under this division will no longer be entitled to any | 3601 |
further payments under division (A)(1) of this section. A payment | 3602 |
made under this division shall be paid from the local government | 3603 |
property tax replacement fund to the county undivided income tax | 3604 |
fund in the proper county treasury. The county treasurer shall | 3605 |
distribute the payment to the proper local taxing unit as if it | 3606 |
had been levied and collected as taxes, and the local taxing unit | 3607 |
shall apportion the amounts so received among its funds in the | 3608 |
same proportions as if those amounts had been levied and collected | 3609 |
as taxes. | 3610 |
(E)(1) On the thirty-first day of July of 2002, 2003, 2004, | 3611 |
2005, and 2006, and on the thirty-first day of January and July of | 3612 |
2007 through January 2011, if the amount credited to the local | 3613 |
government property tax replacement fund exceeds the amount needed | 3614 |
to be distributed from the fund under division (A) of this section | 3615 |
in the following month, the tax commissioner shall distribute the | 3616 |
excess to each county as follows: | 3617 |
(a) One-half shall be distributed to each county in | 3618 |
proportion to each county's population. | 3619 |
(b) One-half shall be distributed to each county in the | 3620 |
proportion that the amounts determined under divisions (G) and (H) | 3621 |
of section 5727.84 of the Revised Code for all local taxing units | 3622 |
in the county is of the total amounts so determined for all local | 3623 |
taxing units in the state. | 3624 |
(2) The amounts distributed to each county under division (E) | 3625 |
of this section shall be distributed by the county auditor to each | 3626 |
local taxing unit in the county in the proportion that the unit's | 3627 |
current taxes charged and payable are of the total current taxes | 3628 |
charged and payable of all the local taxing units in the county. | 3629 |
If the amount that the county auditor determines to be distributed | 3630 |
to a local taxing unit is less than five dollars, that amount | 3631 |
shall not be distributed, and the amount not distributed shall | 3632 |
remain credited to the county undivided income tax fund. At the | 3633 |
time of the next distribution under division (E)(2) of this | 3634 |
section, any amount that had not been distributed in the prior | 3635 |
distribution shall be added to the amount available for the next | 3636 |
distribution prior to calculation of the amount to be distributed. | 3637 |
As used in this division, "current taxes charged and payable" | 3638 |
means the taxes charged and payable as most recently determined | 3639 |
for local taxing units in the county. | 3640 |
After January 2011, any amount that exceeds the amount needed | 3641 |
to be distributed from the fund under division (A) of this section | 3642 |
in the following month shall be transferred to the general revenue | 3643 |
fund. | 3644 |
(F) If the total amount in the local government property tax | 3645 |
replacement fund is insufficient to make all payments under | 3646 |
division (C) of this section at the times the payments are to be | 3647 |
made, the director of budget and management shall transfer from | 3648 |
the general revenue fund to the local government property tax | 3649 |
replacement fund the difference between the total amount to be | 3650 |
paid and the amount in the local government property tax | 3651 |
replacement fund, except that no transfer shall be made by reason | 3652 |
of a deficiency to the extent that it results from the amendment | 3653 |
of section 5727.84 of the Revised Code by Amended Substitute House | 3654 |
Bill 95 of the 125th general assembly. | 3655 |
(G) If all or a part of the territories of two or more local | 3656 |
taxing units are merged, or unincorporated territory of a township | 3657 |
is annexed by a municipal corporation, the tax commissioner shall | 3658 |
adjust the payments made under this section to each of the local | 3659 |
taxing units in proportion to the square mileage apportioned to | 3660 |
the merged or annexed territory, or as otherwise provided by a | 3661 |
written agreement between the legislative authorities of the local | 3662 |
taxing units certified to the tax commissioner not later than the | 3663 |
first day of June of the calendar year in which the payment is to | 3664 |
be made. | 3665 |
Sec. 5731.39. | 3666 |
written permission of the tax commissioner is not required for | 3667 |
asset transfers with respect to, decedents dying on or after | 3668 |
January 1, 2013. | 3669 |
(A) No corporation organized or existing under the laws of | 3670 |
this state shall transfer on its books or issue a new certificate | 3671 |
for any share of its capital stock registered in the name of a | 3672 |
decedent, or in trust for a decedent, or in the name of a decedent | 3673 |
and another person or persons, without the written consent of the | 3674 |
tax commissioner. | 3675 |
(B) No safe deposit company, trust company, financial | 3676 |
institution as defined in division (A) of section 5725.01 of the | 3677 |
Revised Code or other corporation or person, having in possession, | 3678 |
control, or custody a deposit standing in the name of a decedent, | 3679 |
or in trust for a decedent, or in the name of a decedent and | 3680 |
another person or persons, shall deliver or transfer an amount in | 3681 |
excess of three-fourths of the total value of such deposit, | 3682 |
including accrued interest and dividends, as of the date of | 3683 |
decedent's death, without the written consent of the tax | 3684 |
commissioner. The written consent of the tax commissioner need not | 3685 |
be obtained prior to the delivery or transfer of amounts having a | 3686 |
value of three-fourths or less of said total value. | 3687 |
(C) No life insurance company shall pay the proceeds of an | 3688 |
annuity or matured endowment contract, or of a life insurance | 3689 |
contract payable to the estate of a decedent, or of any other | 3690 |
insurance contract taxable under Chapter 5731. of the Revised | 3691 |
Code, without the written consent of the tax commissioner. Any | 3692 |
life insurance company may pay the proceeds of any insurance | 3693 |
contract not specified in this division (C) without the written | 3694 |
consent of the tax commissioner. | 3695 |
(D) No trust company or other corporation or person shall pay | 3696 |
the proceeds of any death benefit, retirement, pension or profit | 3697 |
sharing plan in excess of two thousand dollars, without the | 3698 |
written consent of the tax commissioner. Such trust company or | 3699 |
other corporation or person, however, may pay the proceeds of any | 3700 |
death benefit, retirement, pension, or profit-sharing plan which | 3701 |
consists of insurance on the life of the decedent payable to a | 3702 |
beneficiary other than the estate of the insured without the | 3703 |
written consent of the tax commissioner. | 3704 |
(E) No safe deposit company, trust company, financial | 3705 |
institution as defined in division (A) of section 5725.01 of the | 3706 |
Revised Code, or other corporation or person, having in | 3707 |
possession, control, or custody securities, assets, or other | 3708 |
property (including the shares of the capital stock of, or other | 3709 |
interest in, such safe deposit company, trust company, financial | 3710 |
institution as defined in division (A) of section 5725.01 of the | 3711 |
Revised Code, or other corporation), standing in the name of a | 3712 |
decedent, or in trust for a decedent, or in the name of a decedent | 3713 |
and another person or persons, and the transfer of which is | 3714 |
taxable under Chapter 5731. of the Revised Code, shall deliver or | 3715 |
transfer any such securities, assets, or other property which have | 3716 |
a value as of the date of decedent's death in excess of | 3717 |
three-fourths of the total value thereof, without the written | 3718 |
consent of the tax commissioner. The written consent of the tax | 3719 |
commissioner need not be obtained prior to the delivery or | 3720 |
transfer of any such securities, assets, or other property having | 3721 |
a value of three-fourths or less of said total value. | 3722 |
(F) No safe deposit company, financial institution as defined | 3723 |
in division (A) of section 5725.01 of the Revised Code, or other | 3724 |
corporation or person having possession or control of a safe | 3725 |
deposit box or similar receptacle standing in the name of a | 3726 |
decedent or in the name of the decedent and another person or | 3727 |
persons, or to which the decedent had a right of access, except | 3728 |
when such safe deposit box or other receptacle stands in the name | 3729 |
of a corporation or partnership, or in the name of the decedent as | 3730 |
guardian or executor, shall deliver any of the contents thereof | 3731 |
unless the safe deposit box or similar receptacle has been opened | 3732 |
and inventoried in the presence of the tax commissioner or the | 3733 |
commissioner's agent, and a written consent to transfer issued; | 3734 |
provided, however, that a safe deposit company, financial | 3735 |
institution, or other corporation or person having possession or | 3736 |
control of a safe deposit box may deliver wills, deeds to burial | 3737 |
lots, and insurance policies to a representative of the decedent, | 3738 |
but that a representative of the safe deposit company, financial | 3739 |
institution, or other corporation or person must supervise the | 3740 |
opening of the box and make a written record of the wills, deeds, | 3741 |
and policies removed. Such written record shall be included in the | 3742 |
tax commissioner's inventory records. | 3743 |
(G) Notwithstanding any provision of this section: | 3744 |
(1) The tax commissioner may authorize any delivery or | 3745 |
transfer or waive any of the foregoing requirements under such | 3746 |
terms and conditions as the commissioner may prescribe; | 3747 |
(2) An adult care facility, as defined in section 5119.70 of | 3748 |
the Revised Code, or a home, as defined in section 3721.10 of the | 3749 |
Revised Code, may transfer or use the money in a personal needs | 3750 |
allowance account in accordance with section 5111.113 of the | 3751 |
Revised Code without the written consent of the tax commissioner, | 3752 |
and without the account having been opened and inventoried in the | 3753 |
presence of the commissioner or the commissioner's agent. | 3754 |
Failure to comply with this section shall render such safe | 3755 |
deposit company, trust company, life insurance company, financial | 3756 |
institution as defined in division (A) of section 5725.01 of the | 3757 |
Revised Code, or other corporation or person liable for the amount | 3758 |
of the taxes and interest due under the provisions of Chapter | 3759 |
5731. of the Revised Code on the transfer of such stock, deposit, | 3760 |
proceeds of an annuity or matured endowment contract or of a life | 3761 |
insurance contract payable to the estate of a decedent, or other | 3762 |
insurance contract taxable under Chapter 5731. of the Revised | 3763 |
Code, proceeds of any death benefit, retirement, pension, or | 3764 |
profit sharing plan in excess of two thousand dollars, or | 3765 |
securities, assets, or other property of any resident decedent, | 3766 |
and in addition thereto, to a penalty of not less than five | 3767 |
hundred or more than five thousand dollars. | 3768 |
Sec. 5733.056. (A) As used in this section: | 3769 |
(1) "Billing address" means the address where any notice, | 3770 |
statement, or bill relating to a customer's account is mailed, as | 3771 |
indicated in the books and records of the taxpayer on the first | 3772 |
day of the taxable year or on such later date in the taxable year | 3773 |
when the customer relationship began. | 3774 |
(2) "Borrower or credit card holder located in this state" | 3775 |
means: | 3776 |
(a) A borrower, other than a credit card holder, that is | 3777 |
engaged in a trade or business and maintains its commercial | 3778 |
domicile in this state; or | 3779 |
(b) A borrower that is not engaged in a trade or business, or | 3780 |
a credit card holder, whose billing address is in this state. | 3781 |
(3) "Branch" means a "domestic branch" as defined in section | 3782 |
3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12 U.S.C. | 3783 |
1813(o), as amended. | 3784 |
(4) "Compensation" means wages, salaries, commissions, and | 3785 |
any other form of remuneration paid to employees for personal | 3786 |
services that are included in such employee's gross income under | 3787 |
the Internal Revenue Code. In the case of employees not subject to | 3788 |
the Internal Revenue Code, such as those employed in foreign | 3789 |
countries, the determination of whether such payments would | 3790 |
constitute gross income to such employees under the Internal | 3791 |
Revenue Code shall be made as though such employees were subject | 3792 |
to the Internal Revenue Code. | 3793 |
(5) "Credit card" means a credit, travel, or entertainment | 3794 |
card. | 3795 |
(6) "Credit card issuer's reimbursement fee" means the fee a | 3796 |
taxpayer receives from a merchant's bank because one of the | 3797 |
persons to whom the taxpayer has issued a credit card has charged | 3798 |
merchandise or services to the credit card. | 3799 |
(7) "Deposits" has the meaning given in section 3 of the | 3800 |
"Federal Deposit Insurance Act," 64 Stat. 873, 12 U.S.C. 1813(1), | 3801 |
as amended. | 3802 |
(8) "Employee" means, with respect to a particular taxpayer, | 3803 |
any individual who under the usual common law rules applicable in | 3804 |
determining the employer-employee relationship, has the status of | 3805 |
an employee of that taxpayer. | 3806 |
(9) "Gross rents" means the actual sum of money or other | 3807 |
consideration payable for the use or possession of property. | 3808 |
"Gross rents" includes: | 3809 |
(a) Any amount payable for the use or possession of real | 3810 |
property or tangible personal property whether designated as a | 3811 |
fixed sum of money or as a percentage of receipts, profits, or | 3812 |
otherwise; | 3813 |
(b) Any amount payable as additional rent or in lieu of rent, | 3814 |
such as interest, taxes, insurance, repairs, or any other amount | 3815 |
required to be paid by the terms of a lease or other arrangement; | 3816 |
and | 3817 |
(c) A proportionate part of the cost of any improvement to | 3818 |
real property made by or on behalf of the taxpayer which reverts | 3819 |
to the owner or lessor upon termination of a lease or other | 3820 |
arrangement. The amount to be included in gross rents is the | 3821 |
amount of amortization or depreciation allowed in computing the | 3822 |
taxable income base for the taxable year. However, where a | 3823 |
building is erected on leased land, by or on behalf of the | 3824 |
taxpayer, the value of the land is determined by multiplying the | 3825 |
gross rent by eight, and the value of the building is determined | 3826 |
in the same manner as if owned by the taxpayer. | 3827 |
(d) The following are not included in the term "gross rents": | 3828 |
(i) Reasonable amounts payable as separate charges for water | 3829 |
and electric service furnished by the lessor; | 3830 |
(ii) Reasonable amounts payable as service charges for | 3831 |
janitorial services furnished by the lessor; | 3832 |
(iii) Reasonable amounts payable for storage, provided such | 3833 |
amounts are payable for space not designated and not under the | 3834 |
control of the taxpayer; and | 3835 |
(iv) That portion of any rental payment which is applicable | 3836 |
to the space subleased from the taxpayer and not used by it. | 3837 |
(10) "Loan" means any extension of credit resulting from | 3838 |
direct negotiations between the taxpayer and its customer, or the | 3839 |
purchase, in whole or in part, of such extension of credit from | 3840 |
another. Loans include debt obligations of subsidiaries, | 3841 |
participations, syndications, and leases treated as loans for | 3842 |
federal income tax purposes. "Loan" does not include: properties | 3843 |
treated as loans under section 595 of the Internal Revenue Code; | 3844 |
futures or forward contracts; options; notional principal | 3845 |
contracts such as swaps; credit card receivables, including | 3846 |
purchased credit card relationships; non-interest bearing balances | 3847 |
due from depositor institutions; cash items in the process of | 3848 |
collection; federal funds sold; securities purchased under | 3849 |
agreements to resell; assets held in a trading account; | 3850 |
securities; interests in a real estate mortgage investment conduit | 3851 |
or other mortgage-backed or asset-backed security; and other | 3852 |
similar items. | 3853 |
(11) "Loan secured by real property" means that fifty per | 3854 |
cent or more of the aggregate value of the collateral used to | 3855 |
secure a loan or other obligation, when valued at fair market | 3856 |
value as of the time the original loan or obligation was incurred, | 3857 |
was real property. | 3858 |
(12) "Merchant discount" means the fee, or negotiated | 3859 |
discount, charged to a merchant by the taxpayer for the privilege | 3860 |
of participating in a program whereby a credit card is accepted in | 3861 |
payment for merchandise or services sold to the card holder. | 3862 |
(13) "Participation" means an extension of credit in which an | 3863 |
undivided ownership interest is held on a pro rata basis in a | 3864 |
single loan or pool of loans and related collateral. In a loan | 3865 |
participation, the credit originator initially makes the loan and | 3866 |
then subsequently resells all or a portion of it to other lenders. | 3867 |
The participation may or may not be known to the borrower. | 3868 |
(14) "Principal base of operations" with respect to | 3869 |
transportation property means the place of more or less permanent | 3870 |
nature from which the property is regularly directed or | 3871 |
controlled. With respect to an employee, the "principal base of | 3872 |
operations" means the place of more or less permanent nature from | 3873 |
which the employee regularly (a) starts work and to which the | 3874 |
employee customarily returns in order to receive instructions from | 3875 |
the employer or (b) communicates with the employee's customers or | 3876 |
other persons or (c) performs any other functions necessary to the | 3877 |
exercise of the trade or profession at some other point or points. | 3878 |
(15) "Qualified institution" means a financial institution | 3879 |
that on or after June 1, 1997: | 3880 |
(a)(i) Has consummated one or more approved transactions with | 3881 |
insured banks with different home states that would qualify under | 3882 |
section 102 of the "Riegle-Neal Interstate Banking and Branching | 3883 |
Efficiency Act of 1994," Public Law 103-328, 108 Stat. 2338; | 3884 |
(ii) Is a federal savings association or federal savings bank | 3885 |
that has consummated one or more interstate acquisitions that | 3886 |
result in a financial institution that has branches in more than | 3887 |
one state; or | 3888 |
(iii) Has consummated one or more approved interstate | 3889 |
acquisitions under authority of Title XI of the Revised Code that | 3890 |
result in a financial institution that has branches in more than | 3891 |
one state; and | 3892 |
(b) Has at least nine per cent of its deposits in this state | 3893 |
as of the last day of June prior to the beginning of the tax year. | 3894 |
(16) "Real property owned" and "tangible personal property | 3895 |
owned" mean real and tangible personal property, respectively, on | 3896 |
which the taxpayer may claim depreciation for federal income tax | 3897 |
purposes, or to which the taxpayer holds legal title and on which | 3898 |
no other person may claim depreciation for federal income tax | 3899 |
purposes, or could claim depreciation if subject to federal income | 3900 |
tax. Real and tangible personal property do not include coin, | 3901 |
currency, or property acquired in lieu of or pursuant to a | 3902 |
foreclosure. | 3903 |
(17) "Regular place of business" means an office at which the | 3904 |
taxpayer carries on its business in a regular and systematic | 3905 |
manner and which is continuously maintained, occupied, and used by | 3906 |
employees of the taxpayer. | 3907 |
(18) "State" means a state of the United States, the District | 3908 |
of Columbia, the commonwealth of Puerto Rico, or any territory or | 3909 |
possession of the United States. | 3910 |
(19) "Syndication" means an extension of credit in which two | 3911 |
or more persons fund and each person is at risk only up to a | 3912 |
specified percentage of the total extension of credit or up to a | 3913 |
specified dollar amount. | 3914 |
(20) "Transportation property" means vehicles and vessels | 3915 |
capable of moving under their own power, such as aircraft, trains, | 3916 |
water vessels and motor vehicles, as well as any equipment or | 3917 |
containers attached to such property, such as rolling stock, | 3918 |
barges, trailers, or the like. | 3919 |
(21) "Qualified financial institution" means a financial | 3920 |
institution in which not less than eighty per cent of the | 3921 |
financial institution's ownership interest is owned directly or | 3922 |
indirectly by a grandfathered unitary savings and loan holding | 3923 |
company described in 12 U.S.C. 1467a(c)(9)(C). | 3924 |
(B) The annual financial institution report determines the | 3925 |
value of the issued and outstanding shares of stock of the | 3926 |
taxpayer, and is the base or measure of the franchise tax | 3927 |
liability. Such determination shall be made as of the date shown | 3928 |
by the report to have been the beginning of the financial | 3929 |
institution's annual accounting period that includes the first day | 3930 |
of January of the tax year. For purposes of this section, division | 3931 |
(A) of section 5733.05, and division (D) of section 5733.06 of the | 3932 |
Revised Code, the value of the issued and outstanding shares of | 3933 |
stock of the financial institution shall include the total value, | 3934 |
as shown by the books of the financial institution, of its | 3935 |
capital, surplus, whether earned or unearned, undivided profits, | 3936 |
and reserves, but exclusive of: | 3937 |
(1) Reserves for accounts receivable, depreciation, | 3938 |
depletion, and any other valuation reserves with respect to | 3939 |
specific assets; | 3940 |
(2) Taxes due and payable during the year for which such | 3941 |
report was made; | 3942 |
(3) Voting stock and participation certificates in | 3943 |
corporations chartered pursuant to the "Farm Credit Act of 1971," | 3944 |
85 Stat. 597, 12 U.S.C. 2091, as amended; | 3945 |
(4) Good will, appreciation, and abandoned property as set up | 3946 |
in the annual report of the financial institution, provided a | 3947 |
certified balance sheet of the company is made available upon the | 3948 |
request of the tax commissioner. Such balance sheet shall not be a | 3949 |
part of the public records, but shall be a confidential report for | 3950 |
use of the tax commissioner only. | 3951 |
(5) A portion of the value of the issued and outstanding | 3952 |
shares of stock of such financial institution equal to the amount | 3953 |
obtained by multiplying such value by the quotient obtained by: | 3954 |
(a) Dividing (1) the amount of the financial institution's | 3955 |
assets, as shown on its books, represented by investments in the | 3956 |
capital stock and indebtedness of public utilities, except | 3957 |
electric companies and combined companies, and, for tax years 2005 | 3958 |
and thereafter, telephone companies, of which at least eighty per | 3959 |
cent of the utility's issued and outstanding common stock is owned | 3960 |
by the financial institution by (2) the total assets of such | 3961 |
financial institution as shown on its books; | 3962 |
(b) Dividing (1) the amount of the financial institution's | 3963 |
assets, as shown on its books, represented by investments in the | 3964 |
capital stock and indebtedness of insurance companies of which at | 3965 |
least eighty per cent of the insurance company's issued and | 3966 |
outstanding common stock is owned by the financial institution by | 3967 |
(2) the total assets of such financial institution as shown on its | 3968 |
books; | 3969 |
(c) Dividing (1) the amount of the financial institution's | 3970 |
assets, as shown on its books, represented by investments in the | 3971 |
capital stock and indebtedness of other financial institutions of | 3972 |
which at least twenty-five per cent of the other financial | 3973 |
institution's issued and outstanding common stock is owned by the | 3974 |
financial institution by (2) the total assets of the financial | 3975 |
institution as shown on its books. Division (B)(5)(c) of this | 3976 |
section applies only with respect to such other financial | 3977 |
institutions that for the tax year immediately following the | 3978 |
taxpayer's taxable year will pay the tax imposed by division (D) | 3979 |
of section 5733.06 of the Revised Code. | 3980 |
(6) Land that has been determined pursuant to section 5713.31 | 3981 |
of the Revised Code by the county auditor of the county in which | 3982 |
the land is located to be devoted exclusively to agricultural use | 3983 |
as of the first Monday of June in the financial institution's | 3984 |
taxable year. | 3985 |
(7) Property within this state used exclusively during the | 3986 |
taxable year for qualified research as defined in section 5733.05 | 3987 |
of the Revised Code. | 3988 |
(C) | 3989 |
section, the base upon which the tax levied under division (D) of | 3990 |
section 5733.06 of the Revised Code shall be computed by | 3991 |
multiplying the value of a financial institution's issued and | 3992 |
outstanding shares of stock as determined in division (B) of this | 3993 |
section by a fraction. The numerator of the fraction is the sum of | 3994 |
the following: the property factor multiplied by fifteen, the | 3995 |
payroll factor multiplied by fifteen, and the sales factor | 3996 |
multiplied by seventy. The denominator of the fraction is one | 3997 |
hundred, provided that the denominator shall be reduced by fifteen | 3998 |
if the property factor has a denominator of zero, by fifteen if | 3999 |
the payroll factor has a denominator of zero, and by seventy if | 4000 |
the sales factor has a denominator of zero. | 4001 |
(D) A financial institution shall calculate the property | 4002 |
factor as follows: | 4003 |
(1) The property factor is a fraction, the numerator of which | 4004 |
is the average value of real property and tangible personal | 4005 |
property rented to the taxpayer that is located or used within | 4006 |
this state during the taxable year, the average value of real and | 4007 |
tangible personal property owned by the taxpayer that is located | 4008 |
or used within this state during the taxable year, and the average | 4009 |
value of the taxpayer's loans and credit card receivables that are | 4010 |
located within this state during the taxable year; and the | 4011 |
denominator of which is the average value of all such property | 4012 |
located or used within and without this state during the taxable | 4013 |
year. | 4014 |
(2)(a) The value of real property and tangible personal | 4015 |
property owned by the taxpayer is the original cost or other basis | 4016 |
of such property for federal income tax purposes without regard to | 4017 |
depletion, depreciation, or amortization. | 4018 |
(b) Loans are valued at their outstanding principal balance, | 4019 |
without regard to any reserve for bad debts. If a loan is | 4020 |
charged-off in whole or in part for federal income tax purposes, | 4021 |
the portion of the loan charged-off is not outstanding. A | 4022 |
specifically allocated reserve established pursuant to financial | 4023 |
accounting guidelines which is treated as charged-off for federal | 4024 |
income tax purposes shall be treated as charged-off for purposes | 4025 |
of this section. | 4026 |
(c) Credit card receivables are valued at their outstanding | 4027 |
principal balance, without regard to any reserve for bad debts. If | 4028 |
a credit card receivable is charged-off in whole or in part for | 4029 |
federal income tax purposes, the portion of the receivable | 4030 |
charged-off is not outstanding. | 4031 |
(3) The average value of property owned by the taxpayer is | 4032 |
computed on an annual basis by adding the value of the property on | 4033 |
the first day of the taxable year and the value on the last day of | 4034 |
the taxable year and dividing the sum by two. If averaging on this | 4035 |
basis does not properly reflect average value, the tax | 4036 |
commissioner may require averaging on a more frequent basis. The | 4037 |
taxpayer may elect to average on a more frequent basis. When | 4038 |
averaging on a more frequent basis is required by the tax | 4039 |
commissioner or is elected by the taxpayer, the same method of | 4040 |
valuation must be used consistently by the taxpayer with respect | 4041 |
to property within and without this state and on all subsequent | 4042 |
returns unless the taxpayer receives prior permission from the tax | 4043 |
commissioner or the tax commissioner requires a different method | 4044 |
of determining value. | 4045 |
(4)(a) The average value of real property and tangible | 4046 |
personal property that the taxpayer has rented from another and is | 4047 |
not treated as property owned by the taxpayer for federal income | 4048 |
tax purposes, shall be determined annually by multiplying the | 4049 |
gross rents payable during the taxable year by eight. | 4050 |
(b) Where the use of the general method described in division | 4051 |
(D)(4)(a) of this section results in inaccurate valuations of | 4052 |
rented property, any other method which properly reflects the | 4053 |
value may be adopted by the tax commissioner or by the taxpayer | 4054 |
when approved in writing by the tax commissioner. Once approved, | 4055 |
such other method of valuation must be used on all subsequent | 4056 |
returns unless the taxpayer receives prior approval from the tax | 4057 |
commissioner or the tax commissioner requires a different method | 4058 |
of valuation. | 4059 |
(5)(a) Except as described in division (D)(5)(b) of this | 4060 |
section, real property and tangible personal property owned by or | 4061 |
rented to the taxpayer is considered to be located within this | 4062 |
state if it is physically located, situated, or used within this | 4063 |
state. | 4064 |
(b) Transportation property is included in the numerator of | 4065 |
the property factor to the extent that the property is used in | 4066 |
this state. The extent an aircraft will be deemed to be used in | 4067 |
this state and the amount of value that is to be included in the | 4068 |
numerator of this state's property factor is determined by | 4069 |
multiplying the average value of the aircraft by a fraction, the | 4070 |
numerator of which is the number of landings of the aircraft in | 4071 |
this state and the denominator of which is the total number of | 4072 |
landings of the aircraft everywhere. If the extent of the use of | 4073 |
any transportation property within this state cannot be | 4074 |
determined, then the property will be deemed to be used wholly in | 4075 |
the state in which the property has its principal base of | 4076 |
operations. A motor vehicle will be deemed to be used wholly in | 4077 |
the state in which it is registered. | 4078 |
(6)(a)(i) A loan, other than a loan or advance described in | 4079 |
division (D)(6)(d) of this section, is considered to be located | 4080 |
within this state if it is properly assigned to a regular place of | 4081 |
business of the taxpayer within this state. | 4082 |
(ii) A loan is properly assigned to the regular place of | 4083 |
business with which it has a preponderance of substantive | 4084 |
contacts. A loan assigned by the taxpayer to a regular place of | 4085 |
business without the state shall be presumed to have been properly | 4086 |
assigned if: | 4087 |
(I) The taxpayer has assigned, in the regular course of its | 4088 |
business, such loan on its records to a regular place of business | 4089 |
consistent with federal or state regulatory requirements; | 4090 |
(II) Such assignment on its records is based upon substantive | 4091 |
contacts of the load to such regular place of business; and | 4092 |
(III) The taxpayer uses the records reflecting assignment of | 4093 |
loans for the filing of all state and local tax returns for which | 4094 |
an assignment of loans to a regular place of business is required. | 4095 |
(iii) The presumption of proper assignment of a loan provided | 4096 |
in division (D)(6)(a)(ii) of this section may be rebutted upon a | 4097 |
showing by the tax commissioner, supported by a preponderance of | 4098 |
the evidence, that the preponderance of substantive contacts | 4099 |
regarding such loan did not occur at the regular place of business | 4100 |
to which it was assigned on the taxpayer's records. When such | 4101 |
presumption has been rebutted, the loan shall then be located | 4102 |
within this state if (1) the taxpayer had a regular place of | 4103 |
business within this state at the time the loan was made; and (2) | 4104 |
the taxpayer fails to show, by a preponderance of the evidence, | 4105 |
that the preponderance of substantive contacts regarding such loan | 4106 |
did not occur within this state. | 4107 |
(b) In the case of a loan which is assigned by the taxpayer | 4108 |
to a place without this state which is not a regular place of | 4109 |
business, it shall be presumed, subject to rebuttal by the | 4110 |
taxpayer on a showing supported by the preponderance of evidence, | 4111 |
that the preponderance of substantive contacts regarding the loan | 4112 |
occurred within this state if, at the time the loan was made the | 4113 |
taxpayer's commercial domicile was within this state. | 4114 |
(c) To determine the state in which the preponderance of | 4115 |
substantive contacts relating to a loan have occurred, the facts | 4116 |
and circumstances regarding the loan at issue shall be reviewed on | 4117 |
a case-by-case basis and consideration shall be given to such | 4118 |
activities as the solicitation, investigation, negotiation, | 4119 |
approval, and administration of the loan. The terms | 4120 |
"solicitation," "investigation," "negotiation," "approval," and | 4121 |
"administration" are defined as follows: | 4122 |
(i) "Solicitation" is either active or passive. Active | 4123 |
solicitation occurs when an employee of the taxpayer initiates the | 4124 |
contact with the customer. Such activity is located at the regular | 4125 |
place of business which the taxpayer's employee is regularly | 4126 |
connected with or working out of, regardless of where the services | 4127 |
of such employee were actually performed. Passive solicitation | 4128 |
occurs when the customer initiates the contact with the taxpayer. | 4129 |
If the customer's initial contact was not at a regular place of | 4130 |
business of the taxpayer, the regular place of business, if any, | 4131 |
where the passive solicitation occurred is determined by the facts | 4132 |
in each case. | 4133 |
(ii) "Investigation" is the procedure whereby employees of | 4134 |
the taxpayer determine the creditworthiness of the customer as | 4135 |
well as the degree of risk involved in making a particular | 4136 |
agreement. Such activity is located at the regular place of | 4137 |
business which the taxpayer's employees are regularly connected | 4138 |
with or working out of, regardless of where the services of such | 4139 |
employees were actually performed. | 4140 |
(iii) Negotiation is the procedure whereby employees of the | 4141 |
taxpayer and its customer determine the terms of the agreement, | 4142 |
such as the amount, duration, interest rate, frequency of | 4143 |
repayment, currency denomination, and security required. Such | 4144 |
activity is located at the regular place of business to which the | 4145 |
taxpayer's employees are regularly connected or working from, | 4146 |
regardless of where the services of such employees were actually | 4147 |
performed. | 4148 |
(iv) "Approval" is the procedure whereby employees or the | 4149 |
board of directors of the taxpayer make the final determination | 4150 |
whether to enter into the agreement. Such activity is located at | 4151 |
the regular place of business to which the taxpayer's employees | 4152 |
are regularly connected or working from, regardless of where the | 4153 |
services of such employees were actually performed. If the board | 4154 |
of directors makes the final determination, such activity is | 4155 |
located at the commercial domicile of the taxpayer. | 4156 |
(v) "Administration" is the process of managing the account. | 4157 |
This process includes bookkeeping, collecting the payments, | 4158 |
corresponding with the customer, reporting to management regarding | 4159 |
the status of the agreement, and proceeding against the borrower | 4160 |
or the security interest if the borrower is in default. Such | 4161 |
activity is located at the regular place of business that oversees | 4162 |
this activity. | 4163 |
(d) A loan or advance to a subsidiary corporation at least | 4164 |
fifty-one per cent of whose common stock is owned by the financial | 4165 |
institution shall be allocated in and out of the state by the | 4166 |
application of a ratio whose numerator is the sum of the net book | 4167 |
value of the subsidiary's real property owned in this state and | 4168 |
the subsidiary's tangible personal property owned in this state | 4169 |
and whose denominator is the sum of the subsidiary's real property | 4170 |
owned wherever located and the subsidiary's tangible personal | 4171 |
property owned wherever located. For purposes of calculating this | 4172 |
ratio, the taxpayer shall determine net book value in accordance | 4173 |
with generally accepted accounting principles. If the subsidiary | 4174 |
corporation owns at least fifty-one per cent of the common stock | 4175 |
of another corporation, the ratio shall be calculated by including | 4176 |
the other corporation's real property and tangible personal | 4177 |
property. The calculation of the ratio applies with respect to all | 4178 |
lower-tiered subsidiaries, provided that the immediate parent | 4179 |
corporation of the subsidiary owns at least fifty-one per cent of | 4180 |
the common stock of that subsidiary. | 4181 |
(7) For purposes of determining the location of credit card | 4182 |
receivables, credit card receivables shall be treated as loans and | 4183 |
shall be subject to division (D)(6) of this section. | 4184 |
(8) A loan that has been properly assigned to a state shall, | 4185 |
absent any change of material fact, remain assigned to that state | 4186 |
for the length of the original term of the loan. Thereafter, the | 4187 |
loan may be properly assigned to another state if the loan has a | 4188 |
preponderance of substantive contact to a regular place of | 4189 |
business there. | 4190 |
(E) A financial institution shall calculate the payroll | 4191 |
factor as follows: | 4192 |
(1) The payroll factor is a fraction, the numerator of which | 4193 |
is the total amount paid in this state during the taxable year by | 4194 |
the taxpayer for compensation, and the denominator of which is the | 4195 |
total compensation paid both within and without this state during | 4196 |
the taxable year. | 4197 |
(2) Compensation is paid in this state if any one of the | 4198 |
following tests, applied consecutively, is met: | 4199 |
(a) The employee's services are performed entirely within | 4200 |
this state. | 4201 |
(b) The employee's services are performed both within and | 4202 |
without this state, but the service performed without this state | 4203 |
is incidental to the employee's service within this state. The | 4204 |
term "incidental" means any service which is temporary or | 4205 |
transitory in nature, or which is rendered in connection with an | 4206 |
isolated transaction. | 4207 |
(c) The employee's services are performed both within and | 4208 |
without this state, and: | 4209 |
(i) The employee's principal base of operations is within | 4210 |
this state; or | 4211 |
(ii) There is no principal base of operations in any state in | 4212 |
which some part of the services are performed, but the place from | 4213 |
which the services are directed or controlled is in this state; or | 4214 |
(iii) The principal base of operations and the place from | 4215 |
which the services are directed or controlled are not in any state | 4216 |
in which some part of the service is performed but the employee's | 4217 |
residence is in this state. | 4218 |
(F) A financial institution shall calculate the sales factor | 4219 |
as follows: | 4220 |
(1) The sales factor is a fraction, the numerator of which is | 4221 |
the receipts of the taxpayer in this state during the taxable year | 4222 |
and the denominator of which is the receipts of the taxpayer | 4223 |
within and without this state during the taxable year. The method | 4224 |
of calculating receipts for purposes of the denominator is the | 4225 |
same as the method used in determining receipts for purposes of | 4226 |
the numerator. | 4227 |
(2) The numerator of the sales factor includes receipts from | 4228 |
the lease or rental of real property owned by the taxpayer if the | 4229 |
property is located within this state, or receipts from the | 4230 |
sublease of real property if the property is located within this | 4231 |
state. | 4232 |
(3)(a) Except as described in division (F)(3)(b) of this | 4233 |
section the numerator of the sales factor includes receipts from | 4234 |
the lease or rental of tangible personal property owned by the | 4235 |
taxpayer if the property is located within this state when it is | 4236 |
first placed in service by the lessee. | 4237 |
(b) Receipts from the lease or rental of transportation | 4238 |
property owned by the taxpayer are included in the numerator of | 4239 |
the sales factor to the extent that the property is used in this | 4240 |
state. The extent an aircraft will be deemed to be used in this | 4241 |
state and the amount of receipts that is to be included in the | 4242 |
numerator of this state's sales factor is determined by | 4243 |
multiplying all the receipts from the lease or rental of the | 4244 |
aircraft by a fraction, the numerator of which is the number of | 4245 |
landings of the aircraft in this state and the denominator of | 4246 |
which is the total number of landings of the aircraft. If the | 4247 |
extent of the use of any transportation property within this state | 4248 |
cannot be determined, then the property will be deemed to be used | 4249 |
wholly in the state in which the property has its principal base | 4250 |
of operations. A motor vehicle will be deemed to be used wholly in | 4251 |
the state in which it is registered. | 4252 |
(4)(a) The numerator of the sales factor includes interest | 4253 |
and fees or penalties in the nature of interest from loans secured | 4254 |
by real property if the property is located within this state. If | 4255 |
the property is located both within this state and one or more | 4256 |
other states, the receipts described in this paragraph are | 4257 |
included in the numerator of the sales factor if more than fifty | 4258 |
per cent of the fair market value of the real property is located | 4259 |
within this state. If more than fifty per cent of the fair market | 4260 |
value of the real property is not located within any one state, | 4261 |
then the receipts described in this paragraph shall be included in | 4262 |
the numerator of the sales factor if the borrower is located in | 4263 |
this state. | 4264 |
(b) The determination of whether the real property securing a | 4265 |
loan is located within this state shall be made as of the time the | 4266 |
original agreement was made and any and all subsequent | 4267 |
substitutions of collateral shall be disregarded. | 4268 |
(5) The numerator of the sales factor includes interest and | 4269 |
fees or penalties in the nature of interest from loans not secured | 4270 |
by real property if the borrower is located in this state. | 4271 |
(6) The numerator of the sales factor includes net gains from | 4272 |
the sale of loans. Net gains from the sale of loans includes | 4273 |
income recorded under the coupon stripping rules of section 1286 | 4274 |
of the Internal Revenue Code. | 4275 |
(a) The amount of net gains, but not less than zero, from the | 4276 |
sale of loans secured by real property included in the numerator | 4277 |
is determined by multiplying such net gains by a fraction the | 4278 |
numerator of which is the amount included in the numerator of the | 4279 |
sales factor pursuant to division (F)(4) of this section and the | 4280 |
denominator of which is the total amount of interest and fees or | 4281 |
penalties in the nature of interest from loans secured by real | 4282 |
property. | 4283 |
(b) The amount of net gains, but not less than zero, from the | 4284 |
sale of loans not secured by real property included in the | 4285 |
numerator is determined by multiplying such net gains by a | 4286 |
fraction the numerator of which is the amount included in the | 4287 |
numerator of the sales factor pursuant to division (F)(5) of this | 4288 |
section and the denominator of which is the total amount of | 4289 |
interest and fees or penalties in the nature of interest from | 4290 |
loans not secured by real property. | 4291 |
(7) The numerator of the sales factor includes interest and | 4292 |
fees or penalties in the nature of interest from credit card | 4293 |
receivables and receipts from fees charged to card holders, such | 4294 |
as annual fees, if the billing address of the card holder is in | 4295 |
this state. | 4296 |
(8) The numerator of the sales factor includes net gains, but | 4297 |
not less than zero, from the sale of credit card receivables | 4298 |
multiplied by a fraction, the numerator of which is the amount | 4299 |
included in the numerator of the sales factor pursuant to division | 4300 |
(F)(7) of this section and the denominator of which is the | 4301 |
taxpayer's total amount of interest and fees or penalties in the | 4302 |
nature of interest from credit card receivables and fees charged | 4303 |
to card holders. | 4304 |
(9) The numerator of the sales factor includes all credit | 4305 |
card issuer's reimbursement fees multiplied by a fraction, the | 4306 |
numerator of which is the amount included in the numerator of the | 4307 |
sales factor pursuant to division (F)(7) of this section and the | 4308 |
denominator of which is the taxpayer's total amount of interest | 4309 |
and fees or penalties in the nature of interest from credit card | 4310 |
receivables and fees charged to card holders. | 4311 |
(10) The numerator of the sales factor includes receipts from | 4312 |
merchant discount if the commercial domicile of the merchant is in | 4313 |
this state. Such receipts shall be computed net of any card holder | 4314 |
charge backs, but shall not be reduced by any interchange | 4315 |
transaction fees or by any issuer's reimbursement fees paid to | 4316 |
another for charges made by its card holders. | 4317 |
(11)(a)(i) The numerator of the sales factor includes loan | 4318 |
servicing fees derived from loans secured by real property | 4319 |
multiplied by a fraction the numerator of which is the amount | 4320 |
included in the numerator of the sales factor pursuant to division | 4321 |
(F)(4) of this section and the denominator of which is the total | 4322 |
amount of interest and fees or penalties in the nature of interest | 4323 |
from loans secured by real property. | 4324 |
(ii) The numerator of the sales factor includes loan | 4325 |
servicing fees derived from loans not secured by real property | 4326 |
multiplied by a fraction the numerator of which is the amount | 4327 |
included in the numerator of the sales factor pursuant to division | 4328 |
(F)(5) of this section and the denominator of which is the total | 4329 |
amount of interest and fees or penalties in the nature of interest | 4330 |
from loans not secured by real property. | 4331 |
(b) In circumstances in which the taxpayer receives loan | 4332 |
servicing fees for servicing either the secured or the unsecured | 4333 |
loans of another, the numerator of the sales factor shall include | 4334 |
such fees if the borrower is located in this state. | 4335 |
(12) The numerator of the sales factor includes receipts from | 4336 |
services not otherwise apportioned under this section if the | 4337 |
service is performed in this state. If the service is performed | 4338 |
both within and without this state, the numerator of the sales | 4339 |
factor includes receipts from services not otherwise apportioned | 4340 |
under this section, if a greater proportion of the | 4341 |
income-producing activity is performed in this state based on cost | 4342 |
of performance. | 4343 |
(13)(a) Interest, dividends, net gains, but not less than | 4344 |
zero, and other income from investment assets and activities and | 4345 |
from trading assets and activities shall be included in the sales | 4346 |
factor. Investment assets and activities and trading assets and | 4347 |
activities include but are not limited to: investment securities; | 4348 |
trading account assets; federal funds; securities purchased and | 4349 |
sold under agreements to resell or repurchase; options; futures | 4350 |
contracts; forward contracts; notional principal contracts such as | 4351 |
swaps; equities; and foreign currency transactions. With respect | 4352 |
to the investment and trading assets and activities described in | 4353 |
divisions (F)(13)(a)(i) and (ii) of this section, the sales factor | 4354 |
shall include the amounts described in such divisions. | 4355 |
(i) The sales factor shall include the amount by which | 4356 |
interest from federal funds sold and securities purchased under | 4357 |
resale agreements exceeds interest expense on federal funds | 4358 |
purchased and securities sold under repurchase agreements. | 4359 |
(ii) The sales factor shall include the amount by which | 4360 |
interest, dividends, gains, and other income from trading assets | 4361 |
and activities, including, but not limited to, assets and | 4362 |
activities in the matched book, in the arbitrage book, and foreign | 4363 |
currency transactions, exceed amounts paid in lieu of interest, | 4364 |
amounts paid in lieu of dividends, and losses from such assets and | 4365 |
activities. | 4366 |
(b) The numerator of the sales factor includes interest, | 4367 |
dividends, net gains, but not less than zero, and other income | 4368 |
from investment assets and activities and from trading assets and | 4369 |
activities described in division (F)(13)(a) of this section that | 4370 |
are attributable to this state. | 4371 |
(i) The amount of interest, other than interest described in | 4372 |
division (F)(13)(b)(iv) of this section, dividends, other than | 4373 |
dividends described in that division, net gains, but not less than | 4374 |
zero, and other income from investment assets and activities in | 4375 |
the investment account to be attributed to this state and included | 4376 |
in the numerator is determined by multiplying all such income from | 4377 |
such assets and activities by a fraction, the numerator of which | 4378 |
is the average value of such assets which are properly assigned to | 4379 |
a regular place of business of the taxpayer within this state and | 4380 |
the denominator of which is the average value of all such assets. | 4381 |
(ii) The amount of interest from federal funds sold and | 4382 |
purchased and from securities purchased under resale agreements | 4383 |
and securities sold under repurchase agreements attributable to | 4384 |
this state and included in the numerator is determined by | 4385 |
multiplying the amount described in division (F)(13)(a)(i) of this | 4386 |
section from such funds and such securities by a fraction, the | 4387 |
numerator of which is the average value of federal funds sold and | 4388 |
securities purchased under agreements to resell which are properly | 4389 |
assigned to a regular place of business of the taxpayer within | 4390 |
this state and the denominator of which is the average value of | 4391 |
all such funds and such securities. | 4392 |
(iii) The amount of interest, dividends, gains, and other | 4393 |
income from trading assets and activities, including but not | 4394 |
limited to assets and activities in the matched book, in the | 4395 |
arbitrage book, and foreign currency transaction, but excluding | 4396 |
amounts described in division (F)(13)(b)(i) or (ii) of this | 4397 |
section, attributable to this state and included in the numerator | 4398 |
is determined by multiplying the amount described in division | 4399 |
(F)(13)(a)(ii) of this section by a fraction, the numerator of | 4400 |
which is the average value of such trading assets which are | 4401 |
properly assigned to a regular place of business of the taxpayer | 4402 |
within this state and the denominator of which is the average | 4403 |
value of all such assets. | 4404 |
(iv) The amount of dividends received on the capital stock | 4405 |
of, and the amount of interest received from loans and advances | 4406 |
to, subsidiary corporations at least fifty-one per cent of whose | 4407 |
common stock is owned by the reporting financial institution shall | 4408 |
be allocated in and out of this state by the application of a | 4409 |
ratio whose numerator is the sum of the net book value of the | 4410 |
payor's real property owned in this state and the payor's tangible | 4411 |
personal property owned in this state and whose denominator is the | 4412 |
sum of the net book value of the payor's real property owned | 4413 |
wherever located and the payor's tangible personal property owned | 4414 |
wherever located. For purposes of calculating this ratio, the | 4415 |
taxpayer shall determine net book value in accordance with | 4416 |
generally accepted accounting principles. | 4417 |
(v) For purposes of this division, average value shall be | 4418 |
determined using the rules for determining the average value of | 4419 |
tangible personal property set forth in division (D)(2) and (3) of | 4420 |
this section. | 4421 |
(c) In lieu of using the method set forth in division | 4422 |
(F)(13)(b) of this section, the taxpayer may elect, or the tax | 4423 |
commissioner may require in order to fairly represent the business | 4424 |
activity of the taxpayer in this state, the use of the method set | 4425 |
forth in division (F)(13)(c) of this section. | 4426 |
(i) The amount of interest, other than interest described in | 4427 |
division (F)(13)(b)(iv) of this section, dividends, other than | 4428 |
dividends described in that division, net gains, but not less than | 4429 |
zero, and other income from investment assets and activities in | 4430 |
the investment account to be attributed to this state and included | 4431 |
in the numerator is determined by multiplying all such income from | 4432 |
such assets and activities by a fraction, the numerator of which | 4433 |
is the gross income from such assets and activities which are | 4434 |
properly assigned to a regular place of business of the taxpayer | 4435 |
within this state, and the denominator of which is the gross | 4436 |
income from all such assets and activities. | 4437 |
(ii) The amount of interest from federal funds sold and | 4438 |
purchased and from securities purchased under resale agreements | 4439 |
and securities sold under repurchase agreements attributable to | 4440 |
this state and included in the numerator is determined by | 4441 |
multiplying the amount described in division (F)(13)(a)(i) of this | 4442 |
section from such funds and such securities by a fraction, the | 4443 |
numerator of which is the gross income from such funds and such | 4444 |
securities which are properly assigned to a regular place of | 4445 |
business of the taxpayer within this state and the denominator of | 4446 |
which is the gross income from all such funds and such securities. | 4447 |
(iii) The amount of interest, dividends, gains, and other | 4448 |
income from trading assets and activities, including, but not | 4449 |
limited to, assets and activities in the matched book, in the | 4450 |
arbitrage book, and foreign currency transactions, but excluding | 4451 |
amounts described in division (F)(13)(a)(i) or (ii) of this | 4452 |
section, attributable to this state and included in the numerator, | 4453 |
is determined by multiplying the amount described in division | 4454 |
(F)(13)(a)(ii) of this section by a fraction, the numerator of | 4455 |
which is the gross income from such trading assets and activities | 4456 |
which are properly assigned to a regular place of business of the | 4457 |
taxpayer within this state and the denominator of which is the | 4458 |
gross income from all such assets and activities. | 4459 |
(iv) The amount of dividends received on the capital stock | 4460 |
of, and the amount of interest received from loans and advances | 4461 |
to, subsidiary corporations at least fifty-one per cent of whose | 4462 |
common stock is owned by the reporting financial institution shall | 4463 |
be allocated in and out of this state by the application of a | 4464 |
ratio whose numerator is the sum of the net book value of the | 4465 |
payor's real property owned in this state and the payor's tangible | 4466 |
personal property owned in this state and whose denominator is the | 4467 |
sum of the payor's real property owned wherever located and the | 4468 |
payor's tangible personal property owned wherever located. For | 4469 |
purposes of calculating this ratio, the taxpayer shall determine | 4470 |
net book value in accordance with generally accepted accounting | 4471 |
principles. | 4472 |
(d) If the taxpayer elects or is required by the tax | 4473 |
commissioner to use the method set forth in division (F)(13)(c) of | 4474 |
this section, it shall use this method on all subsequent returns | 4475 |
unless the taxpayer receives prior permission from the tax | 4476 |
commissioner to use or the tax commissioner requires a different | 4477 |
method. | 4478 |
(e) The taxpayer shall have the burden of proving that an | 4479 |
investment asset or activity or trading asset or activity was | 4480 |
properly assigned to a regular place of business outside of this | 4481 |
state by demonstrating that the day-to-day decisions regarding the | 4482 |
asset or activity occurred at a regular place of business outside | 4483 |
this state. Where the day-to-day decisions regarding an investment | 4484 |
asset or activity or trading asset or activity occur at more than | 4485 |
one regular place of business and one such regular place of | 4486 |
business is in this state and one such regular place of business | 4487 |
is outside this state such asset or activity shall be considered | 4488 |
to be located at the regular place of business of the taxpayer | 4489 |
where the investment or trading policies or guidelines with | 4490 |
respect to the asset or activity are established. Unless the | 4491 |
taxpayer demonstrates to the contrary, such policies and | 4492 |
guidelines shall be presumed to be established at the commercial | 4493 |
domicile of the taxpayer. | 4494 |
(14) The numerator of the sales factor includes all other | 4495 |
receipts if either: | 4496 |
(a) The income-producing activity is performed solely in this | 4497 |
state; or | 4498 |
(b) The income-producing activity is performed both within | 4499 |
and without this state and a greater proportion of the | 4500 |
income-producing activity is performed within this state than in | 4501 |
any other state, based on costs of performance. | 4502 |
(G) A qualified institution may calculate the base upon which | 4503 |
the fee provided for in division (D) of section 5733.06 of the | 4504 |
Revised Code is determined for each tax year by multiplying the | 4505 |
value of its issued and outstanding shares of stock determined | 4506 |
under division (B) of this section by a single deposits fraction | 4507 |
whose numerator is the deposits assigned to branches in this state | 4508 |
and whose denominator is the deposits assigned to branches | 4509 |
everywhere. Deposits shall be assigned to branches in the same | 4510 |
manner in which the assignment is made for regulatory purposes. If | 4511 |
the base calculated under this division is less than the base | 4512 |
calculated under division (C) of this section, then the qualifying | 4513 |
institution may elect to substitute the base calculated under this | 4514 |
division for the base calculated under division (C) of this | 4515 |
section. Such election may be made annually for each tax year on | 4516 |
the corporate report. The election need not accompany the report; | 4517 |
rather, the election may accompany a subsequently filed but timely | 4518 |
application for refund, a subsequently filed but timely amended | 4519 |
report, or a subsequently filed but timely petition for | 4520 |
reassessment. The election is not irrevocable and it applies only | 4521 |
to the specified tax year. Nothing in this division shall be | 4522 |
construed to extend any statute of limitations set forth in this | 4523 |
chapter. | 4524 |
(H) If the apportionment provisions of this section do not | 4525 |
fairly represent the extent of the taxpayer's business activity in | 4526 |
this state, the taxpayer may petition for or the tax commissioner | 4527 |
may require, in respect to all or any part of the taxpayer's | 4528 |
business activity, if reasonable: | 4529 |
(1) Separate accounting; | 4530 |
(2) The exclusion of any one or more of the factors; | 4531 |
(3) The inclusion of one or more additional factors which | 4532 |
will fairly represent the taxpayer's business activity in this | 4533 |
state; or | 4534 |
(4) The employment of any other method to effectuate an | 4535 |
equitable allocation and apportionment of the taxpayer's value. | 4536 |
(I) For tax year 2012 and every tax year thereafter, a | 4537 |
qualified financial institution may calculate the base upon which | 4538 |
the tax imposed by division (D) of section 5733.06 of the Revised | 4539 |
Code is determined by multiplying the value of the qualified | 4540 |
financial institution's issued and outstanding shares of stock as | 4541 |
determined under division (B) of this section by the sales factor | 4542 |
calculated in division (F) of this section instead of using the | 4543 |
base calculated under division (C) of this section. An election | 4544 |
under this division shall accompany the report or a subsequently | 4545 |
filed but timely amended report. | 4546 |
Sec. 5735.02. (A) A motor fuel dealer shall not receive, use, | 4547 |
sell, or distribute any motor fuel or engage in business within | 4548 |
this state unless the motor fuel dealer holds an unrevoked license | 4549 |
issued by the tax commissioner to engage in such business. | 4550 |
(B) To procure | 4551 |
motor fuel dealer shall file with the commissioner an application | 4552 |
verified under oath by the applicant and in such form as the | 4553 |
commissioner prescribes, setting forth, in addition to such other | 4554 |
information required by the commissioner, the following: | 4555 |
| 4556 |
transact business within the state; | 4557 |
| 4558 |
principal office or place of business within this state; | 4559 |
| 4560 |
addresses of the partners if such motor fuel dealer is a | 4561 |
partnership, or the names and addresses of the principal officers | 4562 |
if such motor fuel dealer is a corporation or an association; | 4563 |
| 4564 |
under the laws of another state, territory, or country, a | 4565 |
certified copy of the certificate or license issued by the Ohio | 4566 |
secretary of state showing that such corporation is authorized to | 4567 |
transact business in this state; | 4568 |
| 4569 |
the liability and will pay the tax on any shipment of motor fuel | 4570 |
made into the state from any other state or foreign country and | 4571 |
sold or caused to be sold by such motor fuel dealer for delivery | 4572 |
to a person in this state who is not the holder of an unrevoked | 4573 |
motor fuel dealer's license. | 4574 |
| 4575 |
section, an application for a license shall be accompanied by a | 4576 |
bond, of the character stipulated and in the amount provided for | 4577 |
in section 5735.03 of the Revised Code, which shall be filed with | 4578 |
the commissioner. | 4579 |
(2) The tax commissioner may exempt a motor fuel dealer from | 4580 |
the requirements set forth in division (C)(1) of this section and | 4581 |
section 5735.03 of the Revised Code if the motor fuel dealer only | 4582 |
sells or distributes motor fuel upon which the motor fuel taxes | 4583 |
imposed under this chapter have been paid or are not required to | 4584 |
be paid by the motor fuel dealer. | 4585 |
(D) If any application for a license to transact business as | 4586 |
a motor fuel dealer in the state is filed by any person who has | 4587 |
had any license previously canceled for cause by the tax | 4588 |
commissioner; if the commissioner believes that such application | 4589 |
is not filed in good faith or that such application is filed as a | 4590 |
subterfuge by some person for the real person in interest who has | 4591 |
previously had any license canceled for cause by the tax | 4592 |
commissioner; or if the person has violated any provision of this | 4593 |
chapter, then the tax commissioner, after a hearing, of which the | 4594 |
applicant shall be given five days' notice in writing and at which | 4595 |
said applicant shall have the right to appear in person or by | 4596 |
counsel and present testimony, may refuse to issue to such person | 4597 |
a license to transact business as a motor fuel dealer in the | 4598 |
state. | 4599 |
(E) When the application in proper form has been accepted for | 4600 |
filing, and the bond accepted and approved, the commissioner shall | 4601 |
issue to such motor fuel dealer a license to transact business as | 4602 |
a motor fuel dealer in the state, subject to cancellation of such | 4603 |
license as provided by law. | 4604 |
(F) No person shall make a false or fraudulent statement on | 4605 |
the application required by this section. | 4606 |
Sec. 5735.03. | 4607 |
section 5735.02 of the Revised Code, every motor fuel dealer shall | 4608 |
file with the tax commissioner a surety bond of not less than five | 4609 |
thousand dollars, but may be required by the tax commissioner to | 4610 |
submit a surety bond equal to three months' average tax liability, | 4611 |
on a form approved by and with a surety satisfactory to the | 4612 |
commissioner, upon which the motor fuel dealer shall be the | 4613 |
principal obligor and the state shall be the obligee, conditioned | 4614 |
upon the prompt filing of true reports and the payment by the | 4615 |
motor fuel dealer to the treasurer of state of all motor fuel | 4616 |
excise taxes levied by the state, provided that after notice is | 4617 |
received from the state by the surety of the delinquency of any | 4618 |
taxes, if the surety pays the taxes within thirty days after the | 4619 |
receipt of the notice no penalties or interest shall be charged | 4620 |
against the surety. If the surety does not pay the taxes within | 4621 |
thirty days, but does pay within ninety days from the date of the | 4622 |
receipt of notice from the state by the surety, no penalty shall | 4623 |
be assessed against the surety but the surety shall pay interest | 4624 |
at the rate of six per cent per annum on the unpaid taxes from the | 4625 |
date the taxes are due and payable. If the surety does not pay | 4626 |
within ninety days then the surety shall be liable for interest | 4627 |
and penalties, and the tax commissioner may cancel all bonds | 4628 |
issued by the surety. | 4629 |
The commissioner may increase or reduce the amount of the | 4630 |
bond required to be filed by any licensed motor fuel dealer. If | 4631 |
the commissioner finds that it is necessary to increase the bond | 4632 |
to assure payment of the tax, the bond may be increased to an | 4633 |
amount equal to three months/average liability or fifty thousand | 4634 |
dollars, whichever is greater. | 4635 |
If liability upon the bond thus filed by the motor fuel | 4636 |
dealer with the commissioner is discharged or reduced, whether by | 4637 |
judgment rendered, payment made, or otherwise, or if, in the | 4638 |
opinion of the commissioner any surety on the bond theretofore | 4639 |
given has become unsatisfactory or unacceptable, the commissioner | 4640 |
may require the motor fuel dealer to file a new bond with | 4641 |
satisfactory sureties in the same amount, and if a new bond is not | 4642 |
filed the commissioner shall forthwith cancel the license of the | 4643 |
motor fuel dealer. If a new bond is furnished by the motor fuel | 4644 |
dealer, the commissioner shall cancel and surrender the bond of | 4645 |
the motor fuel dealer for which the new bond is substituted. | 4646 |
A surety on a bond furnished by a motor fuel dealer shall be | 4647 |
released from all liability to the state accruing on the bond | 4648 |
after the expiration of sixty days from the date upon which the | 4649 |
surety lodges with the commissioner a written request to be | 4650 |
released. The request shall not operate to release the surety from | 4651 |
any liability already accrued, or which accrues before the | 4652 |
expiration of the sixty-day period. The commissioner shall | 4653 |
promptly on receipt of notice of the request notify the motor fuel | 4654 |
dealer who furnished the bond and, unless the motor fuel dealer on | 4655 |
or before the expiration of the sixty-day period files with the | 4656 |
commissioner a new bond with a surety satisfactory to the | 4657 |
commissioner in the amount and form provided in this section, the | 4658 |
commissioner shall forthwith cancel the license of the motor fuel | 4659 |
dealer. If the new bond is furnished by said motor fuel dealer, | 4660 |
the commissioner shall cancel and surrender the bond of the motor | 4661 |
fuel dealer for which the new bond is substituted. | 4662 |
The commissioner, in lieu of any surety bond required by this | 4663 |
section, may accept a deposit by a motor fuel dealer of cash. Any | 4664 |
cash thus accepted shall be deposited with the treasurer of state | 4665 |
to be held by the treasurer of state, in the same manner as other | 4666 |
cash required to be deposited with the treasurer of state under | 4667 |
the laws of the state, for the account of such motor fuel dealer | 4668 |
and subject to any lawful claim of the state for any excise tax | 4669 |
upon motor fuel, and penalties and interest thereon levied by the | 4670 |
laws of this state. The state shall have a lien upon cash thus | 4671 |
deposited for the amount of any motor fuel excise taxes and | 4672 |
penalty and interest due to the state from the motor fuel dealer | 4673 |
in whose behalf they were deposited. The amount of cash to be thus | 4674 |
accepted shall in all respects be determined in the same manner as | 4675 |
provided in this section for the amount of surety bonds. Any cash | 4676 |
deposited shall be subject to levy upon execution to satisfy any | 4677 |
judgment secured in any action by the state to recover any motor | 4678 |
fuel excise taxes, and penalties and interest found to be due to | 4679 |
the state from such motor fuel dealer. The cash shall be released | 4680 |
by the treasurer of state upon certificate of the commissioner | 4681 |
that the license of the motor fuel dealer in whose behalf they | 4682 |
have been deposited has been canceled or that other security has | 4683 |
been accepted in lieu thereof, and that the state asserts no claim | 4684 |
thereto. | 4685 |
Sec. 5735.35. (A)(1) If any | 4686 |
person, regardless of organizational form, required to file | 4687 |
reports and to remit taxes imposed under this chapter fails for | 4688 |
any reason to file such reports or pay such taxes, any employees | 4689 |
of the
| 4690 |
supervision of, or charged with the responsibility of, filing | 4691 |
reports and making payments, or any officers or trustees of the | 4692 |
4693 | |
of the
| 4694 |
responsibilities, are personally liable for the | 4695 |
4696 |
(2) The dissolution, termination, or bankruptcy of a | 4697 |
4698 | |
responsible officer's, shareholder's, member's, manager's, | 4699 |
employee's, or trustee's liability for failure of the person to | 4700 |
file reports or remit taxes. The sum due for the liability may be | 4701 |
collected by assessment in the manner provided in sections 5735.12 | 4702 |
and 5735.121 of the Revised Code. | 4703 |
(B) If more than one | 4704 |
under this section for the unpaid tax of a | 4705 |
4706 | |
joint and several. | 4707 |
Sec. 5739.01. As used in this chapter: | 4708 |
(A) "Person" includes individuals, receivers, assignees, | 4709 |
trustees in bankruptcy, estates, firms, partnerships, | 4710 |
associations, joint-stock companies, joint ventures, clubs, | 4711 |
societies, corporations, the state and its political subdivisions, | 4712 |
and combinations of individuals of any form. | 4713 |
(B) "Sale" and "selling" include all of the following | 4714 |
transactions for a consideration in any manner, whether absolutely | 4715 |
or conditionally, whether for a price or rental, in money or by | 4716 |
exchange, and by any means whatsoever: | 4717 |
(1) All transactions by which title or possession, or both, | 4718 |
of tangible personal property, is or is to be transferred, or a | 4719 |
license to use or consume tangible personal property is or is to | 4720 |
be granted; | 4721 |
(2) All transactions by which lodging by a hotel is or is to | 4722 |
be furnished to transient guests; | 4723 |
(3) All transactions by which: | 4724 |
(a) An item of tangible personal property is or is to be | 4725 |
repaired, except property, the purchase of which would not be | 4726 |
subject to the tax imposed by section 5739.02 of the Revised Code; | 4727 |
(b) An item of tangible personal property is or is to be | 4728 |
installed, except property, the purchase of which would not be | 4729 |
subject to the tax imposed by section 5739.02 of the Revised Code | 4730 |
or property that is or is to be incorporated into and will become | 4731 |
a part of a production, transmission, transportation, or | 4732 |
distribution system for the delivery of a public utility service; | 4733 |
(c) The service of washing, cleaning, waxing, polishing, or | 4734 |
painting a motor vehicle is or is to be furnished; | 4735 |
(d) Until August 1, 2003, industrial laundry cleaning | 4736 |
services are or are to be provided and, on and after August 1, | 4737 |
2003, laundry and dry cleaning services are or are to be provided; | 4738 |
(e) Automatic data processing, computer services, or | 4739 |
electronic information services are or are to be provided for use | 4740 |
in business when the true object of the transaction is the receipt | 4741 |
by the consumer of automatic data processing, computer services, | 4742 |
or electronic information services rather than the receipt of | 4743 |
personal or professional services to which automatic data | 4744 |
processing, computer services, or electronic information services | 4745 |
are incidental or supplemental. Notwithstanding any other | 4746 |
provision of this chapter, such transactions that occur between | 4747 |
members of an affiliated group are not sales. An "affiliated | 4748 |
group" means two or more persons related in such a way that one | 4749 |
person owns or controls the business operation of another member | 4750 |
of the group. In the case of corporations with stock, one | 4751 |
corporation owns or controls another if it owns more than fifty | 4752 |
per cent of the other corporation's common stock with voting | 4753 |
rights. | 4754 |
(f) Telecommunications service, including prepaid calling | 4755 |
service, prepaid wireless calling service, or ancillary service, | 4756 |
is or is to be provided, but not including coin-operated telephone | 4757 |
service; | 4758 |
(g) Landscaping and lawn care service is or is to be | 4759 |
provided; | 4760 |
(h) Private investigation and security service is or is to be | 4761 |
provided; | 4762 |
(i) Information services or tangible personal property is | 4763 |
provided or ordered by means of a nine hundred telephone call; | 4764 |
(j) Building maintenance and janitorial service is or is to | 4765 |
be provided; | 4766 |
(k) Employment service is or is to be provided; | 4767 |
(l) Employment placement service is or is to be provided; | 4768 |
(m) Exterminating service is or is to be provided; | 4769 |
(n) Physical fitness facility service is or is to be | 4770 |
provided; | 4771 |
(o) Recreation and sports club service is or is to be | 4772 |
provided; | 4773 |
(p) On and after August 1, 2003, satellite broadcasting | 4774 |
service is or is to be provided; | 4775 |
(q) On and after August 1, 2003, personal care service is or | 4776 |
is to be provided to an individual. As used in this division, | 4777 |
"personal care service" includes skin care, the application of | 4778 |
cosmetics, manicuring, pedicuring, hair removal, tattooing, body | 4779 |
piercing, tanning, massage, and other similar services. "Personal | 4780 |
care service" does not include a service provided by or on the | 4781 |
order of a licensed physician or licensed chiropractor, or the | 4782 |
cutting, coloring, or styling of an individual's hair. | 4783 |
(r) On and after August 1, 2003, the transportation of | 4784 |
persons by motor vehicle or aircraft is or is to be provided, when | 4785 |
the transportation is entirely within this state, except for | 4786 |
transportation provided by an ambulance service, by a transit bus, | 4787 |
as defined in section 5735.01 of the Revised Code, and | 4788 |
transportation provided by a citizen of the United States holding | 4789 |
a certificate of public convenience and necessity issued under 49 | 4790 |
U.S.C. 41102; | 4791 |
(s) On and after August 1, 2003, motor vehicle towing service | 4792 |
is or is to be provided. As used in this division, "motor vehicle | 4793 |
towing service" means the towing or conveyance of a wrecked, | 4794 |
disabled, or illegally parked motor vehicle. | 4795 |
(t) On and after August 1, 2003, snow removal service is or | 4796 |
is to be provided. As used in this division, "snow removal | 4797 |
service" means the removal of snow by any mechanized means, but | 4798 |
does not include the providing of such service by a person that | 4799 |
has less than five thousand dollars in sales of such service | 4800 |
during the calendar year. | 4801 |
(u) Electronic publishing service is or is to be provided to | 4802 |
a consumer for use in business, except that such transactions | 4803 |
occurring between members of an affiliated group, as defined in | 4804 |
division (B)(3)(e) of this section, are not sales. | 4805 |
(4) All transactions by which printed, imprinted, | 4806 |
overprinted, lithographic, multilithic, blueprinted, photostatic, | 4807 |
or other productions or reproductions of written or graphic matter | 4808 |
are or are to be furnished or transferred; | 4809 |
(5) The production or fabrication of tangible personal | 4810 |
property for a consideration for consumers who furnish either | 4811 |
directly or indirectly the materials used in the production of | 4812 |
fabrication work; and include the furnishing, preparing, or | 4813 |
serving for a consideration of any tangible personal property | 4814 |
consumed on the premises of the person furnishing, preparing, or | 4815 |
serving such tangible personal property. Except as provided in | 4816 |
section 5739.03 of the Revised Code, a construction contract | 4817 |
pursuant to which tangible personal property is or is to be | 4818 |
incorporated into a structure or improvement on and becoming a | 4819 |
part of real property is not a sale of such tangible personal | 4820 |
property. The construction contractor is the consumer of such | 4821 |
tangible personal property, provided that the sale and | 4822 |
installation of carpeting, the sale and installation of | 4823 |
agricultural land tile, the sale and erection or installation of | 4824 |
portable grain bins, or the provision of landscaping and lawn care | 4825 |
service and the transfer of property as part of such service is | 4826 |
never a construction contract. | 4827 |
As used in division (B)(5) of this section: | 4828 |
(a) "Agricultural land tile" means fired clay or concrete | 4829 |
tile, or flexible or rigid perforated plastic pipe or tubing, | 4830 |
incorporated or to be incorporated into a subsurface drainage | 4831 |
system appurtenant to land used or to be used primarily in | 4832 |
production by farming, agriculture, horticulture, or floriculture. | 4833 |
The term does not include such materials when they are or are to | 4834 |
be incorporated into a drainage system appurtenant to a building | 4835 |
or structure even if the building or structure is used or to be | 4836 |
used in such production. | 4837 |
(b) "Portable grain bin" means a structure that is used or to | 4838 |
be used by a person engaged in farming or agriculture to shelter | 4839 |
the person's grain and that is designed to be disassembled without | 4840 |
significant damage to its component parts. | 4841 |
(6) All transactions in which all of the shares of stock of a | 4842 |
closely held corporation are transferred, or an ownership interest | 4843 |
in a pass-through entity, as defined in section 5733.04 of the | 4844 |
Revised Code, is transferred, if the corporation or pass-through | 4845 |
entity is not engaging in business and its entire assets consist | 4846 |
of boats, planes, motor vehicles, or other tangible personal | 4847 |
property operated primarily for the use and enjoyment of the | 4848 |
shareholders or owners; | 4849 |
(7) All transactions in which a warranty, maintenance or | 4850 |
service contract, or similar agreement by which the vendor of the | 4851 |
warranty, contract, or agreement agrees to repair or maintain the | 4852 |
tangible personal property of the consumer is or is to be | 4853 |
provided; | 4854 |
(8) The transfer of copyrighted motion picture films used | 4855 |
solely for advertising purposes, except that the transfer of such | 4856 |
films for exhibition purposes is not a sale; | 4857 |
(9) On and after August 1, 2003, all transactions by which | 4858 |
tangible personal property is or is to be stored, except such | 4859 |
property that the consumer of the storage holds for sale in the | 4860 |
regular course of business; | 4861 |
(10) All transactions in which "guaranteed auto protection" | 4862 |
is provided whereby a person promises to pay to the consumer the | 4863 |
difference between the amount the consumer receives from motor | 4864 |
vehicle insurance and the amount the consumer owes to a person | 4865 |
holding title to or a lien on the consumer's motor vehicle in the | 4866 |
event the consumer's motor vehicle suffers a total loss under the | 4867 |
terms of the motor vehicle insurance policy or is stolen and not | 4868 |
recovered, if the protection and its price are included in the | 4869 |
purchase or lease agreement; | 4870 |
(11)(a) Except as provided in division (B)(11)(b) of this | 4871 |
section, on and after October 1, 2009, all transactions by which | 4872 |
health care services are paid for, reimbursed, provided, | 4873 |
delivered, arranged for, or otherwise made available by a medicaid | 4874 |
health insuring corporation pursuant to the corporation's contract | 4875 |
with the state. | 4876 |
(b) If the centers for medicare and medicaid services of the | 4877 |
United States department of health and human services determines | 4878 |
that the taxation of transactions described in division (B)(11)(a) | 4879 |
of this section constitutes an impermissible health care-related | 4880 |
tax under section 1903(w) of the "Social Security Act," 49 Stat. | 4881 |
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations | 4882 |
adopted thereunder, the director of job and family services shall | 4883 |
notify the tax commissioner of that determination. Beginning with | 4884 |
the first day of the month following that notification, the | 4885 |
transactions described in division (B)(11)(a) of this section are | 4886 |
not sales for the purposes of this chapter or Chapter 5741. of the | 4887 |
Revised Code. The tax commissioner shall order that the collection | 4888 |
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026, | 4889 |
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code | 4890 |
shall cease for transactions occurring on or after that date. | 4891 |
Except as provided in this section, "sale" and "selling" do | 4892 |
not include transfers of interest in leased property where the | 4893 |
original lessee and the terms of the original lease agreement | 4894 |
remain unchanged, or professional, insurance, or personal service | 4895 |
transactions that involve the transfer of tangible personal | 4896 |
property as an inconsequential element, for which no separate | 4897 |
charges are made. | 4898 |
(C) "Vendor" means the person providing the service or by | 4899 |
whom the transfer effected or license given by a sale is or is to | 4900 |
be made or given and, for sales described in division (B)(3)(i) of | 4901 |
this section, the telecommunications service vendor that provides | 4902 |
the nine hundred telephone service; if two or more persons are | 4903 |
engaged in business at the same place of business under a single | 4904 |
trade name in which all collections on account of sales by each | 4905 |
are made, such persons shall constitute a single vendor. | 4906 |
Physicians, dentists, hospitals, and veterinarians who are | 4907 |
engaged in selling tangible personal property as received from | 4908 |
others, such as eyeglasses, mouthwashes, dentifrices, or similar | 4909 |
articles, are vendors. Veterinarians who are engaged in | 4910 |
transferring to others for a consideration drugs, the dispensing | 4911 |
of which does not require an order of a licensed veterinarian or | 4912 |
physician under federal law, are vendors. | 4913 |
(D)(1) "Consumer" means the person for whom the service is | 4914 |
provided, to whom the transfer effected or license given by a sale | 4915 |
is or is to be made or given, to whom the service described in | 4916 |
division (B)(3)(f) or (i) of this section is charged, or to whom | 4917 |
the admission is granted. | 4918 |
(2) Physicians, dentists, hospitals, and blood banks operated | 4919 |
by nonprofit institutions and persons licensed to practice | 4920 |
veterinary medicine, surgery, and dentistry are consumers of all | 4921 |
tangible personal property and services purchased by them in | 4922 |
connection with the practice of medicine, dentistry, the rendition | 4923 |
of hospital or blood bank service, or the practice of veterinary | 4924 |
medicine, surgery, and dentistry. In addition to being consumers | 4925 |
of drugs administered by them or by their assistants according to | 4926 |
their direction, veterinarians also are consumers of drugs that | 4927 |
under federal law may be dispensed only by or upon the order of a | 4928 |
licensed veterinarian or physician, when transferred by them to | 4929 |
others for a consideration to provide treatment to animals as | 4930 |
directed by the veterinarian. | 4931 |
(3) A person who performs a facility management, or similar | 4932 |
service contract for a contractee is a consumer of all tangible | 4933 |
personal property and services purchased for use in connection | 4934 |
with the performance of such contract, regardless of whether title | 4935 |
to any such property vests in the contractee. The purchase of such | 4936 |
property and services is not subject to the exception for resale | 4937 |
under division (E)(1) of this section. | 4938 |
(4)(a) In the case of a person who purchases printed matter | 4939 |
for the purpose of distributing it or having it distributed to the | 4940 |
public or to a designated segment of the public, free of charge, | 4941 |
that person is the consumer of that printed matter, and the | 4942 |
purchase of that printed matter for that purpose is a sale. | 4943 |
(b) In the case of a person who produces, rather than | 4944 |
purchases, printed matter for the purpose of distributing it or | 4945 |
having it distributed to the public or to a designated segment of | 4946 |
the public, free of charge, that person is the consumer of all | 4947 |
tangible personal property and services purchased for use or | 4948 |
consumption in the production of that printed matter. That person | 4949 |
is not entitled to claim exemption under division (B)(42)(f) of | 4950 |
section 5739.02 of the Revised Code for any material incorporated | 4951 |
into the printed matter or any equipment, supplies, or services | 4952 |
primarily used to produce the printed matter. | 4953 |
(c) The distribution of printed matter to the public or to a | 4954 |
designated segment of the public, free of charge, is not a sale to | 4955 |
the members of the public to whom the printed matter is | 4956 |
distributed or to any persons who purchase space in the printed | 4957 |
matter for advertising or other purposes. | 4958 |
(5) A person who makes sales of any of the services listed in | 4959 |
division (B)(3) of this section is the consumer of any tangible | 4960 |
personal property used in performing the service. The purchase of | 4961 |
that property is not subject to the resale exception under | 4962 |
division (E)(1) of this section. | 4963 |
(6) A person who engages in highway transportation for hire | 4964 |
is the consumer of all packaging materials purchased by that | 4965 |
person and used in performing the service, except for packaging | 4966 |
materials sold by such person in a transaction separate from the | 4967 |
service. | 4968 |
(7) In the case of a transaction for health care services | 4969 |
under division (B)(11) of this section, a medicaid health insuring | 4970 |
corporation is the consumer of such services. The purchase of such | 4971 |
services by a medicaid health insuring corporation is not subject | 4972 |
to the exception for resale under division (E)(1) of this section | 4973 |
or to the exemptions provided under divisions (B)(12), (18), (19), | 4974 |
and (22) of section 5739.02 of the Revised Code. | 4975 |
(E) "Retail sale" and "sales at retail" include all sales, | 4976 |
except those in which the purpose of the consumer is to resell the | 4977 |
thing transferred or benefit of the service provided, by a person | 4978 |
engaging in business, in the form in which the same is, or is to | 4979 |
be, received by the person. | 4980 |
(F) "Business" includes any activity engaged in by any person | 4981 |
with the object of gain, benefit, or advantage, either direct or | 4982 |
indirect. "Business" does not include the activity of a person in | 4983 |
managing and investing the person's own funds. | 4984 |
(G) "Engaging in business" means commencing, conducting, or | 4985 |
continuing in business, and liquidating a business when the | 4986 |
liquidator thereof holds itself out to the public as conducting | 4987 |
such business. Making a casual sale is not engaging in business. | 4988 |
(H)(1)(a) "Price," except as provided in divisions (H)(2), | 4989 |
(3), and (4) of this section, means the total amount of | 4990 |
consideration, including cash, credit, property, and services, for | 4991 |
which tangible personal property or services are sold, leased, or | 4992 |
rented, valued in money, whether received in money or otherwise, | 4993 |
without any deduction for any of the following: | 4994 |
(i) The vendor's cost of the property sold; | 4995 |
(ii) The cost of materials used, labor or service costs, | 4996 |
interest, losses, all costs of transportation to the vendor, all | 4997 |
taxes imposed on the vendor, including the tax imposed under | 4998 |
Chapter 5751. of the Revised Code, and any other expense of the | 4999 |
vendor; | 5000 |
(iii) Charges by the vendor for any services necessary to | 5001 |
complete the sale; | 5002 |
(iv) On and after August 1, 2003, delivery charges. As used | 5003 |
in this division, "delivery charges" means charges by the vendor | 5004 |
for preparation and delivery to a location designated by the | 5005 |
consumer of tangible personal property or a service, including | 5006 |
transportation, shipping, postage, handling, crating, and packing. | 5007 |
(v) Installation charges; | 5008 |
(vi) Credit for any trade-in. | 5009 |
(b) "Price" includes consideration received by the vendor | 5010 |
from a third party, if the vendor actually receives the | 5011 |
consideration from a party other than the consumer, and the | 5012 |
consideration is directly related to a price reduction or discount | 5013 |
on the sale; the vendor has an obligation to pass the price | 5014 |
reduction or discount through to the consumer; the amount of the | 5015 |
consideration attributable to the sale is fixed and determinable | 5016 |
by the vendor at the time of the sale of the item to the consumer; | 5017 |
and one of the following criteria is met: | 5018 |
(i) The consumer presents a coupon, certificate, or other | 5019 |
document to the vendor to claim a price reduction or discount | 5020 |
where the coupon, certificate, or document is authorized, | 5021 |
distributed, or granted by a third party with the understanding | 5022 |
that the third party will reimburse any vendor to whom the coupon, | 5023 |
certificate, or document is presented; | 5024 |
(ii) The consumer identifies the consumer's self to the | 5025 |
seller as a member of a group or organization entitled to a price | 5026 |
reduction or discount. A preferred customer card that is available | 5027 |
to any patron does not constitute membership in such a group or | 5028 |
organization. | 5029 |
(iii) The price reduction or discount is identified as a | 5030 |
third party price reduction or discount on the invoice received by | 5031 |
the consumer, or on a coupon, certificate, or other document | 5032 |
presented by the consumer. | 5033 |
(c) "Price" does not include any of the following: | 5034 |
(i) Discounts, including cash, term, or coupons that are not | 5035 |
reimbursed by a third party that are allowed by a vendor and taken | 5036 |
by a consumer on a sale; | 5037 |
(ii) Interest, financing, and carrying charges from credit | 5038 |
extended on the sale of tangible personal property or services, if | 5039 |
the amount is separately stated on the invoice, bill of sale, or | 5040 |
similar document given to the purchaser; | 5041 |
(iii) Any taxes legally imposed directly on the consumer that | 5042 |
are separately stated on the invoice, bill of sale, or similar | 5043 |
document given to the consumer. For the purpose of this division, | 5044 |
the tax imposed under Chapter 5751. of the Revised Code is not a | 5045 |
tax directly on the consumer, even if the tax or a portion thereof | 5046 |
is separately stated. | 5047 |
(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this | 5048 |
section, any discount allowed by an automobile manufacturer to its | 5049 |
employee, or to the employee of a supplier, on the purchase of a | 5050 |
new motor vehicle from a new motor vehicle dealer in this state. | 5051 |
(v) The dollar value of a gift card that is not sold by a | 5052 |
vendor or purchased by a consumer and that is redeemed by the | 5053 |
consumer in purchasing tangible personal property or services if | 5054 |
the vendor is not reimbursed and does not receive compensation | 5055 |
from a third party to cover all or part of the gift card value. | 5056 |
For the purposes of this division, a gift card is not sold by a | 5057 |
vendor or purchased by a consumer if it is distributed pursuant to | 5058 |
an awards, loyalty, or promotional program. Past and present | 5059 |
purchases of tangible personal property or services by the | 5060 |
consumer shall not be treated as consideration exchanged for a | 5061 |
gift card. | 5062 |
(2) In the case of a sale of any new motor vehicle by a new | 5063 |
motor vehicle dealer, as defined in section 4517.01 of the Revised | 5064 |
Code, in which another motor vehicle is accepted by the dealer as | 5065 |
part of the consideration received, "price" has the same meaning | 5066 |
as in division (H)(1) of this section, reduced by the credit | 5067 |
afforded the consumer by the dealer for the motor vehicle received | 5068 |
in trade. | 5069 |
(3) In the case of a sale of any watercraft or outboard motor | 5070 |
by a watercraft dealer licensed in accordance with section | 5071 |
1547.543 of the Revised Code, in which another watercraft, | 5072 |
watercraft and trailer, or outboard motor is accepted by the | 5073 |
dealer as part of the consideration received, "price" has the same | 5074 |
meaning as in division (H)(1) of this section, reduced by the | 5075 |
credit afforded the consumer by the dealer for the watercraft, | 5076 |
watercraft and trailer, or outboard motor received in trade. As | 5077 |
used in this division, "watercraft" includes an outdrive unit | 5078 |
attached to the watercraft. | 5079 |
(4) In the case of transactions for health care services | 5080 |
under division (B)(11) of this section, "price" means the amount | 5081 |
of managed care premiums received each month by a medicaid health | 5082 |
insuring corporation. | 5083 |
(I) "Receipts" means the total amount of the prices of the | 5084 |
sales of vendors, provided that the dollar value of gift cards | 5085 |
distributed pursuant to an awards, loyalty, or promotional | 5086 |
program, and cash discounts allowed and taken on sales at the time | 5087 |
they are consummated are not included, minus any amount deducted | 5088 |
as a bad debt pursuant to section 5739.121 of the Revised Code. | 5089 |
"Receipts" does not include the sale price of property returned or | 5090 |
services rejected by consumers when the full sale price and tax | 5091 |
are refunded either in cash or by credit. | 5092 |
(J) "Place of business" means any location at which a person | 5093 |
engages in business. | 5094 |
(K) "Premises" includes any real property or portion thereof | 5095 |
upon which any person engages in selling tangible personal | 5096 |
property at retail or making retail sales and also includes any | 5097 |
real property or portion thereof designated for, or devoted to, | 5098 |
use in conjunction with the business engaged in by such person. | 5099 |
(L) "Casual sale" means a sale of an item of tangible | 5100 |
personal property that was obtained by the person making the sale, | 5101 |
through purchase or otherwise, for the person's own use and was | 5102 |
previously subject to any state's taxing jurisdiction on its sale | 5103 |
or use, and includes such items acquired for the seller's use that | 5104 |
are sold by an auctioneer employed directly by the person for such | 5105 |
purpose, provided the location of such sales is not the | 5106 |
auctioneer's permanent place of business. As used in this | 5107 |
division, "permanent place of business" includes any location | 5108 |
where such auctioneer has conducted more than two auctions during | 5109 |
the year. | 5110 |
(M) "Hotel" means every establishment kept, used, maintained, | 5111 |
advertised, or held out to the public to be a place where sleeping | 5112 |
accommodations are offered to guests, in which five or more rooms | 5113 |
are used for the accommodation of such guests, whether the rooms | 5114 |
are in one or several structures, except as otherwise provided in | 5115 |
division (G) of section 5739.09 of the Revised Code. | 5116 |
(N) "Transient guests" means persons occupying a room or | 5117 |
rooms for sleeping accommodations for less than thirty consecutive | 5118 |
days. | 5119 |
(O) "Making retail sales" means the effecting of transactions | 5120 |
wherein one party is obligated to pay the price and the other | 5121 |
party is obligated to provide a service or to transfer title to or | 5122 |
possession of the item sold. "Making retail sales" does not | 5123 |
include the preliminary acts of promoting or soliciting the retail | 5124 |
sales, other than the distribution of printed matter which | 5125 |
displays or describes and prices the item offered for sale, nor | 5126 |
does it include delivery of a predetermined quantity of tangible | 5127 |
personal property or transportation of property or personnel to or | 5128 |
from a place where a service is performed | 5129 |
5130 |
(P) "Used directly in the rendition of a public utility | 5131 |
service" means that property that is to be incorporated into and | 5132 |
will become a part of the consumer's production, transmission, | 5133 |
transportation, or distribution system and that retains its | 5134 |
classification as tangible personal property after such | 5135 |
incorporation; fuel or power used in the production, transmission, | 5136 |
transportation, or distribution system; and tangible personal | 5137 |
property used in the repair and maintenance of the production, | 5138 |
transmission, transportation, or distribution system, including | 5139 |
only such motor vehicles as are specially designed and equipped | 5140 |
for such use. Tangible personal property and services used | 5141 |
primarily in providing highway transportation for hire are not | 5142 |
used directly in the rendition of a public utility service. In | 5143 |
this definition, "public utility" includes a citizen of the United | 5144 |
States holding, and required to hold, a certificate of public | 5145 |
convenience and necessity issued under 49 U.S.C. 41102. | 5146 |
(Q) "Refining" means removing or separating a desirable | 5147 |
product from raw or contaminated materials by distillation or | 5148 |
physical, mechanical, or chemical processes. | 5149 |
(R) "Assembly" and "assembling" mean attaching or fitting | 5150 |
together parts to form a product, but do not include packaging a | 5151 |
product. | 5152 |
(S) "Manufacturing operation" means a process in which | 5153 |
materials are changed, converted, or transformed into a different | 5154 |
state or form from which they previously existed and includes | 5155 |
refining materials, assembling parts, and preparing raw materials | 5156 |
and parts by mixing, measuring, blending, or otherwise committing | 5157 |
such materials or parts to the manufacturing process. | 5158 |
"Manufacturing operation" does not include packaging. | 5159 |
(T) "Fiscal officer" means, with respect to a regional | 5160 |
transit authority, the secretary-treasurer thereof, and with | 5161 |
respect to a county that is a transit authority, the fiscal | 5162 |
officer of the county transit board if one is appointed pursuant | 5163 |
to section 306.03 of the Revised Code or the county auditor if the | 5164 |
board of county commissioners operates the county transit system. | 5165 |
(U) "Transit authority" means a regional transit authority | 5166 |
created pursuant to section 306.31 of the Revised Code or a county | 5167 |
in which a county transit system is created pursuant to section | 5168 |
306.01 of the Revised Code. For the purposes of this chapter, a | 5169 |
transit authority must extend to at least the entire area of a | 5170 |
single county. A transit authority that includes territory in more | 5171 |
than one county must include all the area of the most populous | 5172 |
county that is a part of such transit authority. County population | 5173 |
shall be measured by the most recent census taken by the United | 5174 |
States census bureau. | 5175 |
(V) "Legislative authority" means, with respect to a regional | 5176 |
transit authority, the board of trustees thereof, and with respect | 5177 |
to a county that is a transit authority, the board of county | 5178 |
commissioners. | 5179 |
(W) "Territory of the transit authority" means all of the | 5180 |
area included within the territorial boundaries of a transit | 5181 |
authority as they from time to time exist. Such territorial | 5182 |
boundaries must at all times include all the area of a single | 5183 |
county or all the area of the most populous county that is a part | 5184 |
of such transit authority. County population shall be measured by | 5185 |
the most recent census taken by the United States census bureau. | 5186 |
(X) "Providing a service" means providing or furnishing | 5187 |
anything described in division (B)(3) of this section for | 5188 |
consideration. | 5189 |
(Y)(1)(a) "Automatic data processing" means processing of | 5190 |
others' data, including keypunching or similar data entry services | 5191 |
together with verification thereof, or providing access to | 5192 |
computer equipment for the purpose of processing data. | 5193 |
(b) "Computer services" means providing services consisting | 5194 |
of specifying computer hardware configurations and evaluating | 5195 |
technical processing characteristics, computer programming, and | 5196 |
training of computer programmers and operators, provided in | 5197 |
conjunction with and to support the sale, lease, or operation of | 5198 |
taxable computer equipment or systems. | 5199 |
(c) "Electronic information services" means providing access | 5200 |
to computer equipment by means of telecommunications equipment for | 5201 |
the purpose of either of the following: | 5202 |
(i) Examining or acquiring data stored in or accessible to | 5203 |
the computer equipment; | 5204 |
(ii) Placing data into the computer equipment to be retrieved | 5205 |
by designated recipients with access to the computer equipment. | 5206 |
For transactions occurring on or after the effective date of | 5207 |
the amendment of this section by H.B. 157 of the 127th general | 5208 |
assembly, December 21, 2007, "electronic information services" | 5209 |
does not include electronic publishing as defined in division | 5210 |
(LLL) of this section. | 5211 |
(d) "Automatic data processing, computer services, or | 5212 |
electronic information services" shall not include personal or | 5213 |
professional services. | 5214 |
(2) As used in divisions (B)(3)(e) and (Y)(1) of this | 5215 |
section, "personal and professional services" means all services | 5216 |
other than automatic data processing, computer services, or | 5217 |
electronic information services, including but not limited to: | 5218 |
(a) Accounting and legal services such as advice on tax | 5219 |
matters, asset management, budgetary matters, quality control, | 5220 |
information security, and auditing and any other situation where | 5221 |
the service provider receives data or information and studies, | 5222 |
alters, analyzes, interprets, or adjusts such material; | 5223 |
(b) Analyzing business policies and procedures; | 5224 |
(c) Identifying management information needs; | 5225 |
(d) Feasibility studies, including economic and technical | 5226 |
analysis of existing or potential computer hardware or software | 5227 |
needs and alternatives; | 5228 |
(e) Designing policies, procedures, and custom software for | 5229 |
collecting business information, and determining how data should | 5230 |
be summarized, sequenced, formatted, processed, controlled, and | 5231 |
reported so that it will be meaningful to management; | 5232 |
(f) Developing policies and procedures that document how | 5233 |
business events and transactions are to be authorized, executed, | 5234 |
and controlled; | 5235 |
(g) Testing of business procedures; | 5236 |
(h) Training personnel in business procedure applications; | 5237 |
(i) Providing credit information to users of such information | 5238 |
by a consumer reporting agency, as defined in the "Fair Credit | 5239 |
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or | 5240 |
as hereafter amended, including but not limited to gathering, | 5241 |
organizing, analyzing, recording, and furnishing such information | 5242 |
by any oral, written, graphic, or electronic medium; | 5243 |
(j) Providing debt collection services by any oral, written, | 5244 |
graphic, or electronic means. | 5245 |
The services listed in divisions (Y)(2)(a) to (j) of this | 5246 |
section are not automatic data processing or computer services. | 5247 |
(Z) "Highway transportation for hire" means the | 5248 |
transportation of personal property belonging to others for | 5249 |
consideration by any of the following: | 5250 |
(1) The holder of a permit or certificate issued by this | 5251 |
state or the United States authorizing the holder to engage in | 5252 |
transportation of personal property belonging to others for | 5253 |
consideration over or on highways, roadways, streets, or any | 5254 |
similar public thoroughfare; | 5255 |
(2) A person who engages in the transportation of personal | 5256 |
property belonging to others for consideration over or on | 5257 |
highways, roadways, streets, or any similar public thoroughfare | 5258 |
but who could not have engaged in such transportation on December | 5259 |
11, 1985, unless the person was the holder of a permit or | 5260 |
certificate of the types described in division (Z)(1) of this | 5261 |
section; | 5262 |
(3) A person who leases a motor vehicle to and operates it | 5263 |
for a person described by division (Z)(1) or (2) of this section. | 5264 |
(AA)(1) "Telecommunications service" means the electronic | 5265 |
transmission, conveyance, or routing of voice, data, audio, video, | 5266 |
or any other information or signals to a point, or between or | 5267 |
among points. "Telecommunications service" includes such | 5268 |
transmission, conveyance, or routing in which computer processing | 5269 |
applications are used to act on the form, code, or protocol of the | 5270 |
content for purposes of transmission, conveyance, or routing | 5271 |
without regard to whether the service is referred to as voice-over | 5272 |
internet protocol service or is classified by the federal | 5273 |
communications commission as enhanced or value-added. | 5274 |
"Telecommunications service" does not include any of the | 5275 |
following: | 5276 |
(a) Data processing and information services that allow data | 5277 |
to be generated, acquired, stored, processed, or retrieved and | 5278 |
delivered by an electronic transmission to a consumer where the | 5279 |
consumer's primary purpose for the underlying transaction is the | 5280 |
processed data or information; | 5281 |
(b) Installation or maintenance of wiring or equipment on a | 5282 |
customer's premises; | 5283 |
(c) Tangible personal property; | 5284 |
(d) Advertising, including directory advertising; | 5285 |
(e) Billing and collection services provided to third | 5286 |
parties; | 5287 |
(f) Internet access service; | 5288 |
(g) Radio and television audio and video programming | 5289 |
services, regardless of the medium, including the furnishing of | 5290 |
transmission, conveyance, and routing of such services by the | 5291 |
programming service provider. Radio and television audio and video | 5292 |
programming services include, but are not limited to, cable | 5293 |
service, as defined in 47 U.S.C. 522(6), and audio and video | 5294 |
programming services delivered by commercial mobile radio service | 5295 |
providers, as defined in 47 C.F.R. 20.3; | 5296 |
(h) Ancillary service; | 5297 |
(i) Digital products delivered electronically, including | 5298 |
software, music, video, reading materials, or ring tones. | 5299 |
(2) "Ancillary service" means a service that is associated | 5300 |
with or incidental to the provision of telecommunications service, | 5301 |
including conference bridging service, detailed telecommunications | 5302 |
billing service, directory assistance, vertical service, and voice | 5303 |
mail service. As used in this division: | 5304 |
(a) "Conference bridging service" means an ancillary service | 5305 |
that links two or more participants of an audio or video | 5306 |
conference call, including providing a telephone number. | 5307 |
"Conference bridging service" does not include telecommunications | 5308 |
services used to reach the conference bridge. | 5309 |
(b) "Detailed telecommunications billing service" means an | 5310 |
ancillary service of separately stating information pertaining to | 5311 |
individual calls on a customer's billing statement. | 5312 |
(c) "Directory assistance" means an ancillary service of | 5313 |
providing telephone number or address information. | 5314 |
(d) "Vertical service" means an ancillary service that is | 5315 |
offered in connection with one or more telecommunications | 5316 |
services, which offers advanced calling features that allow | 5317 |
customers to identify callers and manage multiple calls and call | 5318 |
connections, including conference bridging service. | 5319 |
(e) "Voice mail service" means an ancillary service that | 5320 |
enables the customer to store, send, or receive recorded messages. | 5321 |
"Voice mail service" does not include any vertical services that | 5322 |
the customer may be required to have in order to utilize the voice | 5323 |
mail service. | 5324 |
(3) "900 service" means an inbound toll telecommunications | 5325 |
service purchased by a subscriber that allows the subscriber's | 5326 |
customers to call in to the subscriber's prerecorded announcement | 5327 |
or live service, and which is typically marketed under the name | 5328 |
"900" service and any subsequent numbers designated by the federal | 5329 |
communications commission. "900 service" does not include the | 5330 |
charge for collection services provided by the seller of the | 5331 |
telecommunications service to the subscriber, or services or | 5332 |
products sold by the subscriber to the subscriber's customer. | 5333 |
(4) "Prepaid calling service" means the right to access | 5334 |
exclusively telecommunications services, which must be paid for in | 5335 |
advance and which enables the origination of calls using an access | 5336 |
number or authorization code, whether manually or electronically | 5337 |
dialed, and that is sold in predetermined units | 5338 |
which the number declines with use in a known amount. | 5339 |
(5) "Prepaid wireless calling service" means a | 5340 |
telecommunications service that provides the right to utilize | 5341 |
mobile telecommunications service as well as other | 5342 |
non-telecommunications services, including the download of digital | 5343 |
products delivered electronically, and content and ancillary | 5344 |
services, that must be paid for in advance and that is sold in | 5345 |
predetermined units | 5346 |
with use in a known amount. | 5347 |
(6) "Value-added non-voice data service" means a | 5348 |
telecommunications service in which computer processing | 5349 |
applications are used to act on the form, content, code, or | 5350 |
protocol of the information or data primarily for a purpose other | 5351 |
than transmission, conveyance, or routing. | 5352 |
(7) "Coin-operated telephone service" means a | 5353 |
telecommunications service paid for by inserting money into a | 5354 |
telephone accepting direct deposits of money to operate. | 5355 |
(8) "Customer" has the same meaning as in section 5739.034 of | 5356 |
the Revised Code. | 5357 |
(BB) "Laundry and dry cleaning services" means removing soil | 5358 |
or dirt from towels, linens, articles of clothing, or other fabric | 5359 |
items that belong to others and supplying towels, linens, articles | 5360 |
of clothing, or other fabric items. "Laundry and dry cleaning | 5361 |
services" does not include the provision of self-service | 5362 |
facilities for use by consumers to remove soil or dirt from | 5363 |
towels, linens, articles of clothing, or other fabric items. | 5364 |
(CC) "Magazines distributed as controlled circulation | 5365 |
publications" means magazines containing at least twenty-four | 5366 |
pages, at least twenty-five per cent editorial content, issued at | 5367 |
regular intervals four or more times a year, and circulated | 5368 |
without charge to the recipient, provided that such magazines are | 5369 |
not owned or controlled by individuals or business concerns which | 5370 |
conduct such publications as an auxiliary to, and essentially for | 5371 |
the advancement of the main business or calling of, those who own | 5372 |
or control them. | 5373 |
(DD) "Landscaping and lawn care service" means the services | 5374 |
of planting, seeding, sodding, removing, cutting, trimming, | 5375 |
pruning, mulching, aerating, applying chemicals, watering, | 5376 |
fertilizing, and providing similar services to establish, promote, | 5377 |
or control the growth of trees, shrubs, flowers, grass, ground | 5378 |
cover, and other flora, or otherwise maintaining a lawn or | 5379 |
landscape grown or maintained by the owner for ornamentation or | 5380 |
other nonagricultural purpose. However, "landscaping and lawn care | 5381 |
service" does not include the providing of such services by a | 5382 |
person who has less than five thousand dollars in sales of such | 5383 |
services during the calendar year. | 5384 |
(EE) "Private investigation and security service" means the | 5385 |
performance of any activity for which the provider of such service | 5386 |
is required to be licensed pursuant to Chapter 4749. of the | 5387 |
Revised Code, or would be required to be so licensed in performing | 5388 |
such services in this state, and also includes the services of | 5389 |
conducting polygraph examinations and of monitoring or overseeing | 5390 |
the activities on or in, or the condition of, the consumer's home, | 5391 |
business, or other facility by means of electronic or similar | 5392 |
monitoring devices. "Private investigation and security service" | 5393 |
does not include special duty services provided by off-duty police | 5394 |
officers, deputy sheriffs, and other peace officers regularly | 5395 |
employed by the state or a political subdivision. | 5396 |
(FF) "Information services" means providing conversation, | 5397 |
giving consultation or advice, playing or making a voice or other | 5398 |
recording, making or keeping a record of the number of callers, | 5399 |
and any other service provided to a consumer by means of a nine | 5400 |
hundred telephone call, except when the nine hundred telephone | 5401 |
call is the means by which the consumer makes a contribution to a | 5402 |
recognized charity. | 5403 |
(GG) "Research and development" means designing, creating, or | 5404 |
formulating new or enhanced products, equipment, or manufacturing | 5405 |
processes, and also means conducting scientific or technological | 5406 |
inquiry and experimentation in the physical sciences with the goal | 5407 |
of increasing scientific knowledge which may reveal the bases for | 5408 |
new or enhanced products, equipment, or manufacturing processes. | 5409 |
(HH) "Qualified research and development equipment" means | 5410 |
capitalized tangible personal property, and leased personal | 5411 |
property that would be capitalized if purchased, used by a person | 5412 |
primarily to perform research and development. Tangible personal | 5413 |
property primarily used in testing, as defined in division (A)(4) | 5414 |
of section 5739.011 of the Revised Code, or used for recording or | 5415 |
storing test results, is not qualified research and development | 5416 |
equipment unless such property is primarily used by the consumer | 5417 |
in testing the product, equipment, or manufacturing process being | 5418 |
created, designed, or formulated by the consumer in the research | 5419 |
and development activity or in recording or storing such test | 5420 |
results. | 5421 |
(II) "Building maintenance and janitorial service" means | 5422 |
cleaning the interior or exterior of a building and any tangible | 5423 |
personal property located therein or thereon, including any | 5424 |
services incidental to such cleaning for which no separate charge | 5425 |
is made. However, "building maintenance and janitorial service" | 5426 |
does not include the providing of such service by a person who has | 5427 |
less than five thousand dollars in sales of such service during | 5428 |
the calendar year. | 5429 |
(JJ) "Employment service" means providing or supplying | 5430 |
personnel, on a temporary or long-term basis, to perform work or | 5431 |
labor under the supervision or control of another, when the | 5432 |
personnel so provided or supplied receive their wages, salary, or | 5433 |
other compensation from the provider or supplier of the employment | 5434 |
service or from a third party that provided or supplied the | 5435 |
personnel to the provider or supplier. "Employment service" does | 5436 |
not include: | 5437 |
(1) Acting as a contractor or subcontractor, where the | 5438 |
personnel performing the work are not under the direct control of | 5439 |
the purchaser. | 5440 |
(2) Medical and health care services. | 5441 |
(3) Supplying personnel to a purchaser pursuant to a contract | 5442 |
of at least one year between the service provider and the | 5443 |
purchaser that specifies that each employee covered under the | 5444 |
contract is assigned to the purchaser on a permanent basis. | 5445 |
(4) Transactions between members of an affiliated group, as | 5446 |
defined in division (B)(3)(e) of this section. | 5447 |
(5) Transactions where the personnel so provided or supplied | 5448 |
by a provider or supplier to a purchaser of an employment service | 5449 |
are then provided or supplied by that purchaser to a third party | 5450 |
as an employment service, except "employment service" does include | 5451 |
the transaction between that purchaser and the third party. | 5452 |
(KK) "Employment placement service" means locating or finding | 5453 |
employment for a person or finding or locating an employee to fill | 5454 |
an available position. | 5455 |
(LL) "Exterminating service" means eradicating or attempting | 5456 |
to eradicate vermin infestations from a building or structure, or | 5457 |
the area surrounding a building or structure, and includes | 5458 |
activities to inspect, detect, or prevent vermin infestation of a | 5459 |
building or structure. | 5460 |
(MM) "Physical fitness facility service" means all | 5461 |
transactions by which a membership is granted, maintained, or | 5462 |
renewed, including initiation fees, membership dues, renewal fees, | 5463 |
monthly minimum fees, and other similar fees and dues, by a | 5464 |
physical fitness facility such as an athletic club, health spa, or | 5465 |
gymnasium, which entitles the member to use the facility for | 5466 |
physical exercise. | 5467 |
(NN) "Recreation and sports club service" means all | 5468 |
transactions by which a membership is granted, maintained, or | 5469 |
renewed, including initiation fees, membership dues, renewal fees, | 5470 |
monthly minimum fees, and other similar fees and dues, by a | 5471 |
recreation and sports club, which entitles the member to use the | 5472 |
facilities of the organization. "Recreation and sports club" means | 5473 |
an organization that has ownership of, or controls or leases on a | 5474 |
continuing, long-term basis, the facilities used by its members | 5475 |
and includes an aviation club, gun or shooting club, yacht club, | 5476 |
card club, swimming club, tennis club, golf club, country club, | 5477 |
riding club, amateur sports club, or similar organization. | 5478 |
(OO) "Livestock" means farm animals commonly raised for food, | 5479 |
food production, or other agricultural purposes, including, but | 5480 |
not limited to, cattle, sheep, goats, swine, poultry, and captive | 5481 |
deer. "Livestock" does not include invertebrates, amphibians, | 5482 |
reptiles, domestic pets, animals for use in laboratories or for | 5483 |
exhibition, or other animals not commonly raised for food or food | 5484 |
production. | 5485 |
(PP) "Livestock structure" means a building or structure used | 5486 |
exclusively for the housing, raising, feeding, or sheltering of | 5487 |
livestock, and includes feed storage or handling structures and | 5488 |
structures for livestock waste handling. | 5489 |
(QQ) "Horticulture" means the growing, cultivation, and | 5490 |
production of flowers, fruits, herbs, vegetables, sod, mushrooms, | 5491 |
and nursery stock. As used in this division, "nursery stock" has | 5492 |
the same meaning as in section 927.51 of the Revised Code. | 5493 |
(RR) "Horticulture structure" means a building or structure | 5494 |
used exclusively for the commercial growing, raising, or | 5495 |
overwintering of horticultural products, and includes the area | 5496 |
used for stocking, storing, and packing horticultural products | 5497 |
when done in conjunction with the production of those products. | 5498 |
(SS) "Newspaper" means an unbound publication bearing a title | 5499 |
or name that is regularly published, at least as frequently as | 5500 |
biweekly, and distributed from a fixed place of business to the | 5501 |
public in a specific geographic area, and that contains a | 5502 |
substantial amount of news matter of international, national, or | 5503 |
local events of interest to the general public. | 5504 |
(TT) "Professional racing team" means a person that employs | 5505 |
at least twenty full-time employees for the purpose of conducting | 5506 |
a motor vehicle racing business for profit. The person must | 5507 |
conduct the business with the purpose of racing one or more motor | 5508 |
racing vehicles in at least ten competitive professional racing | 5509 |
events each year that comprise all or part of a motor racing | 5510 |
series sanctioned by one or more motor racing sanctioning | 5511 |
organizations. A "motor racing vehicle" means a vehicle for which | 5512 |
the chassis, engine, and parts are designed exclusively for motor | 5513 |
racing, and does not include a stock or production model vehicle | 5514 |
that may be modified for use in racing. For the purposes of this | 5515 |
division: | 5516 |
(1) A "competitive professional racing event" is a motor | 5517 |
vehicle racing event sanctioned by one or more motor racing | 5518 |
sanctioning organizations, at which aggregate cash prizes in | 5519 |
excess of eight hundred thousand dollars are awarded to the | 5520 |
competitors. | 5521 |
(2) "Full-time employee" means an individual who is employed | 5522 |
for consideration for thirty-five or more hours a week, or who | 5523 |
renders any other standard of service generally accepted by custom | 5524 |
or specified by contract as full-time employment. | 5525 |
(UU)(1) "Lease" or "rental" means any transfer of the | 5526 |
possession or control of tangible personal property for a fixed or | 5527 |
indefinite term, for consideration. "Lease" or "rental" includes | 5528 |
future options to purchase or extend, and agreements described in | 5529 |
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where | 5530 |
the amount of consideration may be increased or decreased by | 5531 |
reference to the amount realized upon the sale or disposition of | 5532 |
the property. "Lease" or "rental" does not include: | 5533 |
(a) A transfer of possession or control of tangible personal | 5534 |
property under a security agreement or a deferred payment plan | 5535 |
that requires the transfer of title upon completion of the | 5536 |
required payments; | 5537 |
(b) A transfer of possession or control of tangible personal | 5538 |
property under an agreement that requires the transfer of title | 5539 |
upon completion of required payments and payment of an option | 5540 |
price that does not exceed the greater of one hundred dollars or | 5541 |
one per cent of the total required payments; | 5542 |
(c) Providing tangible personal property along with an | 5543 |
operator for a fixed or indefinite period of time, if the operator | 5544 |
is necessary for the property to perform as designed. For purposes | 5545 |
of this division, the operator must do more than maintain, | 5546 |
inspect, or set-up the tangible personal property. | 5547 |
(2) "Lease" and "rental," as defined in division (UU) of this | 5548 |
section, shall not apply to leases or rentals that exist before | 5549 |
June 26, 2003. | 5550 |
(3) "Lease" and "rental" have the same meaning as in division | 5551 |
(UU)(1) of this section regardless of whether a transaction is | 5552 |
characterized as a lease or rental under generally accepted | 5553 |
accounting principles, the Internal Revenue Code, Title XIII of | 5554 |
the Revised Code, or other federal, state, or local laws. | 5555 |
(VV) "Mobile telecommunications service" has the same meaning | 5556 |
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No. | 5557 |
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and, | 5558 |
on and after August 1, 2003, includes related fees and ancillary | 5559 |
services, including universal service fees, detailed billing | 5560 |
service, directory assistance, service initiation, voice mail | 5561 |
service, and vertical services, such as caller ID and three-way | 5562 |
calling. | 5563 |
(WW) "Certified service provider" has the same meaning as in | 5564 |
section 5740.01 of the Revised Code. | 5565 |
(XX) "Satellite broadcasting service" means the distribution | 5566 |
or broadcasting of programming or services by satellite directly | 5567 |
to the subscriber's receiving equipment without the use of ground | 5568 |
receiving or distribution equipment, except the subscriber's | 5569 |
receiving equipment or equipment used in the uplink process to the | 5570 |
satellite, and includes all service and rental charges, premium | 5571 |
channels or other special services, installation and repair | 5572 |
service charges, and any other charges having any connection with | 5573 |
the provision of the satellite broadcasting service. | 5574 |
(YY) "Tangible personal property" means personal property | 5575 |
that can be seen, weighed, measured, felt, or touched, or that is | 5576 |
in any other manner perceptible to the senses. For purposes of | 5577 |
this chapter and Chapter 5741. of the Revised Code, "tangible | 5578 |
personal property" includes motor vehicles, electricity, water, | 5579 |
gas, steam, and prewritten computer software. | 5580 |
(ZZ) "Direct mail" means printed material delivered or | 5581 |
distributed by United States mail or other delivery service to a | 5582 |
mass audience or to addressees on a mailing list provided by the | 5583 |
consumer or at the direction of the consumer when the cost of the | 5584 |
items are not billed directly to the recipients. "Direct mail" | 5585 |
includes tangible personal property supplied directly or | 5586 |
indirectly by the consumer to the direct mail vendor for inclusion | 5587 |
in the package containing the printed material. "Direct mail" does | 5588 |
not include multiple items of printed material delivered to a | 5589 |
single address. | 5590 |
(AAA) "Computer" means an electronic device that accepts | 5591 |
information in digital or similar form and manipulates it for a | 5592 |
result based on a sequence of instructions. | 5593 |
(BBB) "Computer software" means a set of coded instructions | 5594 |
designed to cause a computer or automatic data processing | 5595 |
equipment to perform a task. | 5596 |
(CCC) "Delivered electronically" means delivery of computer | 5597 |
software from the seller to the purchaser by means other than | 5598 |
tangible storage media. | 5599 |
(DDD) "Prewritten computer software" means computer software, | 5600 |
including prewritten upgrades, that is not designed and developed | 5601 |
by the author or other creator to the specifications of a specific | 5602 |
purchaser. The combining of two or more prewritten computer | 5603 |
software programs or prewritten portions thereof does not cause | 5604 |
the combination to be other than prewritten computer software. | 5605 |
"Prewritten computer software" includes software designed and | 5606 |
developed by the author or other creator to the specifications of | 5607 |
a specific purchaser when it is sold to a person other than the | 5608 |
purchaser. If a person modifies or enhances computer software of | 5609 |
which the person is not the author or creator, the person shall be | 5610 |
deemed to be the author or creator only of such person's | 5611 |
modifications or enhancements. Prewritten computer software or a | 5612 |
prewritten portion thereof that is modified or enhanced to any | 5613 |
degree, where such modification or enhancement is designed and | 5614 |
developed to the specifications of a specific purchaser, remains | 5615 |
prewritten computer software; provided, however, that where there | 5616 |
is a reasonable, separately stated charge or an invoice or other | 5617 |
statement of the price given to the purchaser for the modification | 5618 |
or enhancement, the modification or enhancement shall not | 5619 |
constitute prewritten computer software. | 5620 |
(EEE)(1) "Food" means substances, whether in liquid, | 5621 |
concentrated, solid, frozen, dried, or dehydrated form, that are | 5622 |
sold for ingestion or chewing by humans and are consumed for their | 5623 |
taste or nutritional value. "Food" does not include alcoholic | 5624 |
beverages, dietary supplements, soft drinks, or tobacco. | 5625 |
(2) As used in division (EEE)(1) of this section: | 5626 |
(a) "Alcoholic beverages" means beverages that are suitable | 5627 |
for human consumption and contain one-half of one per cent or more | 5628 |
of alcohol by volume. | 5629 |
(b) "Dietary supplements" means any product, other than | 5630 |
tobacco, that is intended to supplement the diet and that is | 5631 |
intended for ingestion in tablet, capsule, powder, softgel, | 5632 |
gelcap, or liquid form, or, if not intended for ingestion in such | 5633 |
a form, is not represented as conventional food for use as a sole | 5634 |
item of a meal or of the diet; that is required to be labeled as a | 5635 |
dietary supplement, identifiable by the "supplement facts" box | 5636 |
found on the label, as required by 21 C.F.R. 101.36; and that | 5637 |
contains one or more of the following dietary ingredients: | 5638 |
(i) A vitamin; | 5639 |
(ii) A mineral; | 5640 |
(iii) An herb or other botanical; | 5641 |
(iv) An amino acid; | 5642 |
(v) A dietary substance for use by humans to supplement the | 5643 |
diet by increasing the total dietary intake; | 5644 |
(vi) A concentrate, metabolite, constituent, extract, or | 5645 |
combination of any ingredient described in divisions | 5646 |
(EEE)(2)(b)(i) to (v) of this section. | 5647 |
(c) "Soft drinks" means nonalcoholic beverages that contain | 5648 |
natural or artificial sweeteners. "Soft drinks" does not include | 5649 |
beverages that contain milk or milk products, soy, rice, or | 5650 |
similar milk substitutes, or that contains greater than fifty per | 5651 |
cent vegetable or fruit juice by volume. | 5652 |
(d) "Tobacco" means cigarettes, cigars, chewing or pipe | 5653 |
tobacco, or any other item that contains tobacco. | 5654 |
(FFF) "Drug" means a compound, substance, or preparation, and | 5655 |
any component of a compound, substance, or preparation, other than | 5656 |
food, dietary supplements, or alcoholic beverages that is | 5657 |
recognized in the official United States pharmacopoeia, official | 5658 |
homeopathic pharmacopoeia of the United States, or official | 5659 |
national formulary, and supplements to them; is intended for use | 5660 |
in the diagnosis, cure, mitigation, treatment, or prevention of | 5661 |
disease; or is intended to affect the structure or any function of | 5662 |
the body. | 5663 |
(GGG) "Prescription" means an order, formula, or recipe | 5664 |
issued in any form of oral, written, electronic, or other means of | 5665 |
transmission by a duly licensed practitioner authorized by the | 5666 |
laws of this state to issue a prescription. | 5667 |
(HHH) "Durable medical equipment" means equipment, including | 5668 |
repair and replacement parts for such equipment, that can | 5669 |
withstand repeated use, is primarily and customarily used to serve | 5670 |
a medical purpose, generally is not useful to a person in the | 5671 |
absence of illness or injury, and is not worn in or on the body. | 5672 |
"Durable medical equipment" does not include mobility enhancing | 5673 |
equipment. | 5674 |
(III) "Mobility enhancing equipment" means equipment, | 5675 |
including repair and replacement parts for such equipment, that is | 5676 |
primarily and customarily used to provide or increase the ability | 5677 |
to move from one place to another and is appropriate for use | 5678 |
either in a home or a motor vehicle, that is not generally used by | 5679 |
persons with normal mobility, and that does not include any motor | 5680 |
vehicle or equipment on a motor vehicle normally provided by a | 5681 |
motor vehicle manufacturer. "Mobility enhancing equipment" does | 5682 |
not include durable medical equipment. | 5683 |
(JJJ) "Prosthetic device" means a replacement, corrective, or | 5684 |
supportive device, including repair and replacement parts for the | 5685 |
device, worn on or in the human body to artificially replace a | 5686 |
missing portion of the body, prevent or correct physical deformity | 5687 |
or malfunction, or support a weak or deformed portion of the body. | 5688 |
As used in this division, "prosthetic device" does not include | 5689 |
corrective eyeglasses, contact lenses, or dental prosthesis. | 5690 |
(KKK)(1) "Fractional aircraft ownership program" means a | 5691 |
program in which persons within an affiliated group sell and | 5692 |
manage fractional ownership program aircraft, provided that at | 5693 |
least one hundred airworthy aircraft are operated in the program | 5694 |
and the program meets all of the following criteria: | 5695 |
(a) Management services are provided by at least one program | 5696 |
manager within an affiliated group on behalf of the fractional | 5697 |
owners. | 5698 |
(b) Each program aircraft is owned or possessed by at least | 5699 |
one fractional owner. | 5700 |
(c) Each fractional owner owns or possesses at least a | 5701 |
one-sixteenth interest in at least one fixed-wing program | 5702 |
aircraft. | 5703 |
(d) A dry-lease aircraft interchange arrangement is in effect | 5704 |
among all of the fractional owners. | 5705 |
(e) Multi-year program agreements are in effect regarding the | 5706 |
fractional ownership, management services, and dry-lease aircraft | 5707 |
interchange arrangement aspects of the program. | 5708 |
(2) As used in division (KKK)(1) of this section: | 5709 |
(a) "Affiliated group" has the same meaning as in division | 5710 |
(B)(3)(e) of this section. | 5711 |
(b) "Fractional owner" means a person that owns or possesses | 5712 |
at least a one-sixteenth interest in a program aircraft and has | 5713 |
entered into the agreements described in division (KKK)(1)(e) of | 5714 |
this section. | 5715 |
(c) "Fractional ownership program aircraft" or "program | 5716 |
aircraft" means a turbojet aircraft that is owned or possessed by | 5717 |
a fractional owner and that has been included in a dry-lease | 5718 |
aircraft interchange arrangement and agreement under divisions | 5719 |
(KKK)(1)(d) and (e) of this section, or an aircraft a program | 5720 |
manager owns or possesses primarily for use in a fractional | 5721 |
aircraft ownership program. | 5722 |
(d) "Management services" means administrative and aviation | 5723 |
support services furnished under a fractional aircraft ownership | 5724 |
program in accordance with a management services agreement under | 5725 |
division (KKK)(1)(e) of this section, and offered by the program | 5726 |
manager to the fractional owners, including, at a minimum, the | 5727 |
establishment and implementation of safety guidelines; the | 5728 |
coordination of the scheduling of the program aircraft and crews; | 5729 |
program aircraft maintenance; program aircraft insurance; crew | 5730 |
training for crews employed, furnished, or contracted by the | 5731 |
program manager or the fractional owner; the satisfaction of | 5732 |
record-keeping requirements; and the development and use of an | 5733 |
operations manual and a maintenance manual for the fractional | 5734 |
aircraft ownership program. | 5735 |
(e) "Program manager" means the person that offers management | 5736 |
services to fractional owners pursuant to a management services | 5737 |
agreement under division (KKK)(1)(e) of this section. | 5738 |
(LLL) "Electronic publishing" means providing access to one | 5739 |
or more of the following primarily for business customers, | 5740 |
including the federal government or a state government or a | 5741 |
political subdivision thereof, to conduct research: news; | 5742 |
business, financial, legal, consumer, or credit materials; | 5743 |
editorials, columns, reader commentary, or features; photos or | 5744 |
images; archival or research material; legal notices, identity | 5745 |
verification, or public records; scientific, educational, | 5746 |
instructional, technical, professional, trade, or other literary | 5747 |
materials; or other similar information which has been gathered | 5748 |
and made available by the provider to the consumer in an | 5749 |
electronic format. Providing electronic publishing includes the | 5750 |
functions necessary for the acquisition, formatting, editing, | 5751 |
storage, and dissemination of data or information that is the | 5752 |
subject of a sale. | 5753 |
(MMM) "Medicaid health insuring corporation" means a health | 5754 |
insuring corporation that holds a certificate of authority under | 5755 |
Chapter 1751. of the Revised Code and is under contract with the | 5756 |
department of job and family services pursuant to section 5111.17 | 5757 |
of the Revised Code. | 5758 |
(NNN) "Managed care premium" means any premium, capitation, | 5759 |
or other payment a medicaid health insuring corporation receives | 5760 |
for providing or arranging for the provision of health care | 5761 |
services to its members or enrollees residing in this state. | 5762 |
(OOO) "Captive deer" means deer and other cervidae that have | 5763 |
been legally acquired, or their offspring, that are privately | 5764 |
owned for agricultural or farming purposes. | 5765 |
(PPP) "Gift card" means a document, card, certificate, or | 5766 |
other record, whether tangible or intangible, that may be redeemed | 5767 |
by a consumer for a dollar value when making a purchase of | 5768 |
tangible personal property or services. | 5769 |
Sec. 5739.02. For the purpose of providing revenue with | 5770 |
which to meet the needs of the state, for the use of the general | 5771 |
revenue fund of the state, for the purpose of securing a thorough | 5772 |
and efficient system of common schools throughout the state, for | 5773 |
the purpose of affording revenues, in addition to those from | 5774 |
general property taxes, permitted under constitutional | 5775 |
limitations, and from other sources, for the support of local | 5776 |
governmental functions, and for the purpose of reimbursing the | 5777 |
state for the expense of administering this chapter, an excise tax | 5778 |
is hereby levied on each retail sale made in this state. | 5779 |
(A)(1) The tax shall be collected as provided in section | 5780 |
5739.025 of the Revised Code. The rate of the tax shall be five | 5781 |
and one-half per cent. The tax applies and is collectible when the | 5782 |
sale is made, regardless of the time when the price is paid or | 5783 |
delivered. | 5784 |
(2) In the case of the lease or rental, with a fixed term of | 5785 |
more than thirty days or an indefinite term with a minimum period | 5786 |
of more than thirty days, of any motor vehicles designed by the | 5787 |
manufacturer to carry a load of not more than one ton, watercraft, | 5788 |
outboard motor, or aircraft, or of any tangible personal property, | 5789 |
other than motor vehicles designed by the manufacturer to carry a | 5790 |
load of more than one ton, to be used by the lessee or renter | 5791 |
primarily for business purposes, the tax shall be collected by the | 5792 |
vendor at the time the lease or rental is consummated and shall be | 5793 |
calculated by the vendor on the basis of the total amount to be | 5794 |
paid by the lessee or renter under the lease agreement. If the | 5795 |
total amount of the consideration for the lease or rental includes | 5796 |
amounts that are not calculated at the time the lease or rental is | 5797 |
executed, the tax shall be calculated and collected by the vendor | 5798 |
at the time such amounts are billed to the lessee or renter. In | 5799 |
the case of an open-end lease or rental, the tax shall be | 5800 |
calculated by the vendor on the basis of the total amount to be | 5801 |
paid during the initial fixed term of the lease or rental, and for | 5802 |
each subsequent renewal period as it comes due. As used in this | 5803 |
division, "motor vehicle" has the same meaning as in section | 5804 |
4501.01 of the Revised Code, and "watercraft" includes an outdrive | 5805 |
unit attached to the watercraft. | 5806 |
A lease with a renewal clause and a termination penalty or | 5807 |
similar provision that applies if the renewal clause is not | 5808 |
exercised is presumed to be a sham transaction. In such a case, | 5809 |
the tax shall be calculated and paid on the basis of the entire | 5810 |
length of the lease period, including any renewal periods, until | 5811 |
the termination penalty or similar provision no longer applies. | 5812 |
The taxpayer shall bear the burden, by a preponderance of the | 5813 |
evidence, that the transaction or series of transactions is not a | 5814 |
sham transaction. | 5815 |
(3) Except as provided in division (A)(2) of this section, in | 5816 |
the case of a sale, the price of which consists in whole or in | 5817 |
part of the lease or rental of tangible personal property, the tax | 5818 |
shall be measured by the installments of that lease or rental. | 5819 |
(4) In the case of a sale of a physical fitness facility | 5820 |
service or recreation and sports club service, the price of which | 5821 |
consists in whole or in part of a membership for the receipt of | 5822 |
the benefit of the service, the tax applicable to the sale shall | 5823 |
be measured by the installments thereof. | 5824 |
(B) The tax does not apply to the following: | 5825 |
(1) Sales to the state or any of its political subdivisions, | 5826 |
or to any other state or its political subdivisions if the laws of | 5827 |
that state exempt from taxation sales made to this state and its | 5828 |
political subdivisions; | 5829 |
(2) Sales of food for human consumption off the premises | 5830 |
where sold; | 5831 |
(3) Sales of food sold to students only in a cafeteria, | 5832 |
dormitory, fraternity, or sorority maintained in a private, | 5833 |
public, or parochial school, college, or university; | 5834 |
(4) Sales of newspapers and of magazine subscriptions and | 5835 |
sales or transfers of magazines distributed as controlled | 5836 |
circulation publications; | 5837 |
(5) The furnishing, preparing, or serving of meals without | 5838 |
charge by an employer to an employee provided the employer records | 5839 |
the meals as part compensation for services performed or work | 5840 |
done; | 5841 |
(6) Sales of motor fuel upon receipt, use, distribution, or | 5842 |
sale of which in this state a tax is imposed by the law of this | 5843 |
state, but this exemption shall not apply to the sale of motor | 5844 |
fuel on which a refund of the tax is allowable under division (A) | 5845 |
of section 5735.14 of the Revised Code; and the tax commissioner | 5846 |
may deduct the amount of tax levied by this section applicable to | 5847 |
the price of motor fuel when granting a refund of motor fuel tax | 5848 |
pursuant to division (A) of section 5735.14 of the Revised Code | 5849 |
and shall cause the amount deducted to be paid into the general | 5850 |
revenue fund of this state; | 5851 |
(7) Sales of natural gas by a natural gas company, of water | 5852 |
by a water-works company, or of steam by a heating company, if in | 5853 |
each case the thing sold is delivered to consumers through pipes | 5854 |
or conduits, and all sales of communications services by a | 5855 |
telegraph company, all terms as defined in section 5727.01 of the | 5856 |
Revised Code, and sales of electricity delivered through wires; | 5857 |
(8) Casual sales by a person, or auctioneer employed directly | 5858 |
by the person to conduct such sales, except as to such sales of | 5859 |
motor vehicles, watercraft or outboard motors required to be | 5860 |
titled under section 1548.06 of the Revised Code, watercraft | 5861 |
documented with the United States coast guard, snowmobiles, and | 5862 |
all-purpose vehicles as defined in section 4519.01 of the Revised | 5863 |
Code; | 5864 |
(9)(a) Sales of services or tangible personal property, other | 5865 |
than motor vehicles, mobile homes, and manufactured homes, by | 5866 |
churches, organizations exempt from taxation under section | 5867 |
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit | 5868 |
organizations operated exclusively for charitable purposes as | 5869 |
defined in division (B)(12) of this section, provided that the | 5870 |
number of days on which such tangible personal property or | 5871 |
services, other than items never subject to the tax, are sold does | 5872 |
not exceed six in any calendar year, except as otherwise provided | 5873 |
in division (B)(9)(b) of this section. If the number of days on | 5874 |
which such sales are made exceeds six in any calendar year, the | 5875 |
church or organization shall be considered to be engaged in | 5876 |
business and all subsequent sales by it shall be subject to the | 5877 |
tax. In counting the number of days, all sales by groups within a | 5878 |
church or within an organization shall be considered to be sales | 5879 |
of that church or organization. | 5880 |
(b) The limitation on the number of days on which tax-exempt | 5881 |
sales may be made by a church or organization under division | 5882 |
(B)(9)(a) of this section does not apply to sales made by student | 5883 |
clubs and other groups of students of a primary or secondary | 5884 |
school, or a parent-teacher association, booster group, or similar | 5885 |
organization that raises money to support or fund curricular or | 5886 |
extracurricular activities of a primary or secondary school. | 5887 |
(c) Divisions (B)(9)(a) and (b) of this section do not apply | 5888 |
to sales by a noncommercial educational radio or television | 5889 |
broadcasting station. | 5890 |
(10) Sales not within the taxing power of this state under | 5891 |
the Constitution of the United States; | 5892 |
(11) Except for transactions that are sales under division | 5893 |
(B)(3)(r) of section 5739.01 of the Revised Code, the | 5894 |
transportation of persons or property, unless the transportation | 5895 |
is by a private investigation and security service; | 5896 |
(12) Sales of tangible personal property or services to | 5897 |
churches, to organizations exempt from taxation under section | 5898 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other | 5899 |
nonprofit organizations operated exclusively for charitable | 5900 |
purposes in this state, no part of the net income of which inures | 5901 |
to the benefit of any private shareholder or individual, and no | 5902 |
substantial part of the activities of which consists of carrying | 5903 |
on propaganda or otherwise attempting to influence legislation; | 5904 |
sales to offices administering one or more homes for the aged or | 5905 |
one or more hospital facilities exempt under section 140.08 of the | 5906 |
Revised Code; and sales to organizations described in division (D) | 5907 |
of section 5709.12 of the Revised Code. | 5908 |
"Charitable purposes" means the relief of poverty; the | 5909 |
improvement of health through the alleviation of illness, disease, | 5910 |
or injury; the operation of an organization exclusively for the | 5911 |
provision of professional, laundry, printing, and purchasing | 5912 |
services to hospitals or charitable institutions; the operation of | 5913 |
a home for the aged, as defined in section 5701.13 of the Revised | 5914 |
Code; the operation of a radio or television broadcasting station | 5915 |
that is licensed by the federal communications commission as a | 5916 |
noncommercial educational radio or television station; the | 5917 |
operation of a nonprofit animal adoption service or a county | 5918 |
humane society; the promotion of education by an institution of | 5919 |
learning that maintains a faculty of qualified instructors, | 5920 |
teaches regular continuous courses of study, and confers a | 5921 |
recognized diploma upon completion of a specific curriculum; the | 5922 |
operation of a parent-teacher association, booster group, or | 5923 |
similar organization primarily engaged in the promotion and | 5924 |
support of the curricular or extracurricular activities of a | 5925 |
primary or secondary school; the operation of a community or area | 5926 |
center in which presentations in music, dramatics, the arts, and | 5927 |
related fields are made in order to foster public interest and | 5928 |
education therein; the production of performances in music, | 5929 |
dramatics, and the arts; or the promotion of education by an | 5930 |
organization engaged in carrying on research in, or the | 5931 |
dissemination of, scientific and technological knowledge and | 5932 |
information primarily for the public. | 5933 |
Nothing in this division shall be deemed to exempt sales to | 5934 |
any organization for use in the operation or carrying on of a | 5935 |
trade or business, or sales to a home for the aged for use in the | 5936 |
operation of independent living facilities as defined in division | 5937 |
(A) of section 5709.12 of the Revised Code. | 5938 |
(13) Building and construction materials and services sold to | 5939 |
construction contractors for incorporation into a structure or | 5940 |
improvement to real property under a construction contract with | 5941 |
this state or a political subdivision of this state, or with the | 5942 |
United States government or any of its agencies; building and | 5943 |
construction materials and services sold to construction | 5944 |
contractors for incorporation into a structure or improvement to | 5945 |
real property that are accepted for ownership by this state or any | 5946 |
of its political subdivisions, or by the United States government | 5947 |
or any of its agencies at the time of completion of the structures | 5948 |
or improvements; building and construction materials sold to | 5949 |
construction contractors for incorporation into a horticulture | 5950 |
structure or livestock structure for a person engaged in the | 5951 |
business of horticulture or producing livestock; building | 5952 |
materials and services sold to a construction contractor for | 5953 |
incorporation into a house of public worship or religious | 5954 |
education, or a building used exclusively for charitable purposes | 5955 |
under a construction contract with an organization whose purpose | 5956 |
is as described in division (B)(12) of this section; building | 5957 |
materials and services sold to a construction contractor for | 5958 |
incorporation into a building under a construction contract with | 5959 |
an organization exempt from taxation under section 501(c)(3) of | 5960 |
the Internal Revenue Code of 1986 when the building is to be used | 5961 |
exclusively for the organization's exempt purposes; building and | 5962 |
construction materials sold for incorporation into the original | 5963 |
construction of a sports facility under section 307.696 of the | 5964 |
Revised Code; building and construction materials and services | 5965 |
sold to a construction contractor for incorporation into real | 5966 |
property outside this state if such materials and services, when | 5967 |
sold to a construction contractor in the state in which the real | 5968 |
property is located for incorporation into real property in that | 5969 |
state, would be exempt from a tax on sales levied by that state; | 5970 |
and, until one calendar year after the construction of a | 5971 |
convention center that qualifies for property tax exemption under | 5972 |
section 5709.084 of the Revised Code is completed, building and | 5973 |
construction materials and services sold to a construction | 5974 |
contractor for incorporation into the real property comprising | 5975 |
that convention center; | 5976 |
(14) Sales of ships or vessels or rail rolling stock used or | 5977 |
to be used principally in interstate or foreign commerce, and | 5978 |
repairs, alterations, fuel, and lubricants for such ships or | 5979 |
vessels or rail rolling stock; | 5980 |
(15) Sales to persons primarily engaged in any of the | 5981 |
activities mentioned in division (B)(42)(a), (g), or (h) of this | 5982 |
section, to persons engaged in making retail sales, or to persons | 5983 |
who purchase for sale from a manufacturer tangible personal | 5984 |
property that was produced by the manufacturer in accordance with | 5985 |
specific designs provided by the purchaser, of packages, including | 5986 |
material, labels, and parts for packages, and of machinery, | 5987 |
equipment, and material for use primarily in packaging tangible | 5988 |
personal property produced for sale, including any machinery, | 5989 |
equipment, and supplies used to make labels or packages, to | 5990 |
prepare packages or products for labeling, or to label packages or | 5991 |
products, by or on the order of the person doing the packaging, or | 5992 |
sold at retail. "Packages" includes bags, baskets, cartons, | 5993 |
crates, boxes, cans, bottles, bindings, wrappings, and other | 5994 |
similar devices and containers, but does not include motor | 5995 |
vehicles or bulk tanks, trailers, or similar devices attached to | 5996 |
motor vehicles. "Packaging" means placing in a package. Division | 5997 |
(B)(15) of this section does not apply to persons engaged in | 5998 |
highway transportation for hire. | 5999 |
(16) Sales of food to persons using supplemental nutrition | 6000 |
assistance program benefits to purchase the food. As used in this | 6001 |
division, "food" has the same meaning as in 7 U.S.C. 2012 and | 6002 |
federal regulations adopted pursuant to the Food and Nutrition Act | 6003 |
of 2008. | 6004 |
(17) Sales to persons engaged in farming, agriculture, | 6005 |
horticulture, or floriculture, of tangible personal property for | 6006 |
use or consumption primarily in the production by farming, | 6007 |
agriculture, horticulture, or floriculture of other tangible | 6008 |
personal property for use or consumption primarily in the | 6009 |
production of tangible personal property for sale by farming, | 6010 |
agriculture, horticulture, or floriculture; or material and parts | 6011 |
for incorporation into any such tangible personal property for use | 6012 |
or consumption in production; and of tangible personal property | 6013 |
for such use or consumption in the conditioning or holding of | 6014 |
products produced by and for such use, consumption, or sale by | 6015 |
persons engaged in farming, agriculture, horticulture, or | 6016 |
floriculture, except where such property is incorporated into real | 6017 |
property; | 6018 |
(18) Sales of drugs for a human being that may be dispensed | 6019 |
only pursuant to a prescription; insulin as recognized in the | 6020 |
official United States pharmacopoeia; urine and blood testing | 6021 |
materials when used by diabetics or persons with hypoglycemia to | 6022 |
test for glucose or acetone; hypodermic syringes and needles when | 6023 |
used by diabetics for insulin injections; epoetin alfa when | 6024 |
purchased for use in the treatment of persons with medical | 6025 |
disease; hospital beds when purchased by hospitals, nursing homes, | 6026 |
or other medical facilities; and medical oxygen and medical | 6027 |
oxygen-dispensing equipment when purchased by hospitals, nursing | 6028 |
homes, or other medical facilities; | 6029 |
(19) Sales of prosthetic devices, durable medical equipment | 6030 |
for home use, or mobility enhancing equipment, when made pursuant | 6031 |
to a prescription and when such devices or equipment are for use | 6032 |
by a human being. | 6033 |
(20) Sales of emergency and fire protection vehicles and | 6034 |
equipment to nonprofit organizations for use solely in providing | 6035 |
fire protection and emergency services, including trauma care and | 6036 |
emergency medical services, for political subdivisions of the | 6037 |
state; | 6038 |
(21) Sales of tangible personal property manufactured in this | 6039 |
state, if sold by the manufacturer in this state to a retailer for | 6040 |
use in the retail business of the retailer outside of this state | 6041 |
and if possession is taken from the manufacturer by the purchaser | 6042 |
within this state for the sole purpose of immediately removing the | 6043 |
same from this state in a vehicle owned by the purchaser; | 6044 |
(22) Sales of services provided by the state or any of its | 6045 |
political subdivisions, agencies, instrumentalities, institutions, | 6046 |
or authorities, or by governmental entities of the state or any of | 6047 |
its political subdivisions, agencies, instrumentalities, | 6048 |
institutions, or authorities; | 6049 |
(23) Sales of motor vehicles to nonresidents of this state | 6050 |
under the circumstances described in division (B) of section | 6051 |
5739.029 of the Revised Code; | 6052 |
(24) Sales to persons engaged in the preparation of eggs for | 6053 |
sale of tangible personal property used or consumed directly in | 6054 |
such preparation, including such tangible personal property used | 6055 |
for cleaning, sanitizing, preserving, grading, sorting, and | 6056 |
classifying by size; packages, including material and parts for | 6057 |
packages, and machinery, equipment, and material for use in | 6058 |
packaging eggs for sale; and handling and transportation equipment | 6059 |
and parts therefor, except motor vehicles licensed to operate on | 6060 |
public highways, used in intraplant or interplant transfers or | 6061 |
shipment of eggs in the process of preparation for sale, when the | 6062 |
plant or plants within or between which such transfers or | 6063 |
shipments occur are operated by the same person. "Packages" | 6064 |
includes containers, cases, baskets, flats, fillers, filler flats, | 6065 |
cartons, closure materials, labels, and labeling materials, and | 6066 |
"packaging" means placing therein. | 6067 |
(25)(a) Sales of water to a consumer for residential use | 6068 |
6069 | |
6070 |
(b) Sales of water by a nonprofit corporation engaged | 6071 |
exclusively in the treatment, distribution, and sale of water to | 6072 |
consumers, if such water is delivered to consumers through pipes | 6073 |
or tubing. | 6074 |
(26) Fees charged for inspection or reinspection of motor | 6075 |
vehicles under section 3704.14 of the Revised Code; | 6076 |
(27) Sales to persons licensed to conduct a food service | 6077 |
operation pursuant to section 3717.43 of the Revised Code, of | 6078 |
tangible personal property primarily used directly for the | 6079 |
following: | 6080 |
(a) To prepare food for human consumption for sale; | 6081 |
(b) To preserve food that has been or will be prepared for | 6082 |
human consumption for sale by the food service operator, not | 6083 |
including tangible personal property used to display food for | 6084 |
selection by the consumer; | 6085 |
(c) To clean tangible personal property used to prepare or | 6086 |
serve food for human consumption for sale. | 6087 |
(28) Sales of animals by nonprofit animal adoption services | 6088 |
or county humane societies; | 6089 |
(29) Sales of services to a corporation described in division | 6090 |
(A) of section 5709.72 of the Revised Code, and sales of tangible | 6091 |
personal property that qualifies for exemption from taxation under | 6092 |
section 5709.72 of the Revised Code; | 6093 |
(30) Sales and installation of agricultural land tile, as | 6094 |
defined in division (B)(5)(a) of section 5739.01 of the Revised | 6095 |
Code; | 6096 |
(31) Sales and erection or installation of portable grain | 6097 |
bins, as defined in division (B)(5)(b) of section 5739.01 of the | 6098 |
Revised Code; | 6099 |
(32) The sale, lease, repair, and maintenance of, parts for, | 6100 |
or items attached to or incorporated in, motor vehicles that are | 6101 |
primarily used for transporting tangible personal property | 6102 |
belonging to others by a person engaged in highway transportation | 6103 |
for hire, except for packages and packaging used for the | 6104 |
transportation of tangible personal property; | 6105 |
(33) Sales to the state headquarters of any veterans' | 6106 |
organization in this state that is either incorporated and issued | 6107 |
a charter by the congress of the United States or is recognized by | 6108 |
the United States veterans administration, for use by the | 6109 |
headquarters; | 6110 |
(34) Sales to a telecommunications service vendor, mobile | 6111 |
telecommunications service vendor, or satellite broadcasting | 6112 |
service vendor of tangible personal property and services used | 6113 |
directly and primarily in transmitting, receiving, switching, or | 6114 |
recording any interactive, one- or two-way electromagnetic | 6115 |
communications, including voice, image, data, and information, | 6116 |
through the use of any medium, including, but not limited to, | 6117 |
poles, wires, cables, switching equipment, computers, and record | 6118 |
storage devices and media, and component parts for the tangible | 6119 |
personal property. The exemption provided in this division shall | 6120 |
be in lieu of all other exemptions under division (B)(42)(a) or | 6121 |
(n) of this section to which the vendor may otherwise be entitled, | 6122 |
based upon the use of the thing purchased in providing the | 6123 |
telecommunications, mobile telecommunications, or satellite | 6124 |
broadcasting service. | 6125 |
(35)(a) Sales where the purpose of the consumer is to use or | 6126 |
consume the things transferred in making retail sales and | 6127 |
consisting of newspaper inserts, catalogues, coupons, flyers, gift | 6128 |
certificates, or other advertising material that prices and | 6129 |
describes tangible personal property offered for retail sale. | 6130 |
(b) Sales to direct marketing vendors of preliminary | 6131 |
materials such as photographs, artwork, and typesetting that will | 6132 |
be used in printing advertising material; of printed matter that | 6133 |
offers free merchandise or chances to win sweepstake prizes and | 6134 |
that is mailed to potential customers with advertising material | 6135 |
described in division (B)(35)(a) of this section; and of equipment | 6136 |
such as telephones, computers, facsimile machines, and similar | 6137 |
tangible personal property primarily used to accept orders for | 6138 |
direct marketing retail sales. | 6139 |
(c) Sales of automatic food vending machines that preserve | 6140 |
food with a shelf life of forty-five days or less by refrigeration | 6141 |
and dispense it to the consumer. | 6142 |
For purposes of division (B)(35) of this section, "direct | 6143 |
marketing" means the method of selling where consumers order | 6144 |
tangible personal property by United States mail, delivery | 6145 |
service, or telecommunication and the vendor delivers or ships the | 6146 |
tangible personal property sold to the consumer from a warehouse, | 6147 |
catalogue distribution center, or similar fulfillment facility by | 6148 |
means of the United States mail, delivery service, or common | 6149 |
carrier. | 6150 |
(36) Sales to a person engaged in the business of | 6151 |
horticulture or producing livestock of materials to be | 6152 |
incorporated into a horticulture structure or livestock structure; | 6153 |
(37) Sales of personal computers, computer monitors, computer | 6154 |
keyboards, modems, and other peripheral computer equipment to an | 6155 |
individual who is licensed or certified to teach in an elementary | 6156 |
or a secondary school in this state for use by that individual in | 6157 |
preparation for teaching elementary or secondary school students; | 6158 |
(38) Sales to a professional racing team of any of the | 6159 |
following: | 6160 |
(a) Motor racing vehicles; | 6161 |
(b) Repair services for motor racing vehicles; | 6162 |
(c) Items of property that are attached to or incorporated in | 6163 |
motor racing vehicles, including engines, chassis, and all other | 6164 |
components of the vehicles, and all spare, replacement, and | 6165 |
rebuilt parts or components of the vehicles; except not including | 6166 |
tires, consumable fluids, paint, and accessories consisting of | 6167 |
instrumentation sensors and related items added to the vehicle to | 6168 |
collect and transmit data by means of telemetry and other forms of | 6169 |
communication. | 6170 |
(39) Sales of used manufactured homes and used mobile homes, | 6171 |
as defined in section 5739.0210 of the Revised Code, made on or | 6172 |
after January 1, 2000; | 6173 |
(40) Sales of tangible personal property and services to a | 6174 |
provider of electricity used or consumed directly and primarily in | 6175 |
generating, transmitting, or distributing electricity for use by | 6176 |
others, including property that is or is to be incorporated into | 6177 |
and will become a part of the consumer's production, transmission, | 6178 |
or distribution system and that retains its classification as | 6179 |
tangible personal property after incorporation; fuel or power used | 6180 |
in the production, transmission, or distribution of electricity; | 6181 |
energy conversion equipment as defined in section 5727.01 of the | 6182 |
Revised Code; and tangible personal property and services used in | 6183 |
the repair and maintenance of the production, transmission, or | 6184 |
distribution system, including only those motor vehicles as are | 6185 |
specially designed and equipped for such use. The exemption | 6186 |
provided in this division shall be in lieu of all other exemptions | 6187 |
in division (B)(42)(a) or (n) of this section to which a provider | 6188 |
of electricity may otherwise be entitled based on the use of the | 6189 |
tangible personal property or service purchased in generating, | 6190 |
transmitting, or distributing electricity. | 6191 |
(41) Sales to a person providing services under division | 6192 |
(B)(3)(r) of section 5739.01 of the Revised Code of tangible | 6193 |
personal property and services used directly and primarily in | 6194 |
providing taxable services under that section. | 6195 |
(42) Sales where the purpose of the purchaser is to do any of | 6196 |
the following: | 6197 |
(a) To incorporate the thing transferred as a material or a | 6198 |
part into tangible personal property to be produced for sale by | 6199 |
manufacturing, assembling, processing, or refining; or to use or | 6200 |
consume the thing transferred directly in producing tangible | 6201 |
personal property for sale by mining, including, without | 6202 |
limitation, the extraction from the earth of all substances that | 6203 |
are classed geologically as minerals, production of crude oil and | 6204 |
natural gas, or directly in the rendition of a public utility | 6205 |
service, except that the sales tax levied by this section shall be | 6206 |
collected upon all meals, drinks, and food for human consumption | 6207 |
sold when transporting persons. Persons engaged in rendering | 6208 |
services in the exploration for, and production of, crude oil and | 6209 |
natural gas for others are deemed engaged directly in the | 6210 |
exploration for, and production of, crude oil and natural gas. | 6211 |
This paragraph does not exempt from "retail sale" or "sales at | 6212 |
retail" the sale of tangible personal property that is to be | 6213 |
incorporated into a structure or improvement to real property. | 6214 |
(b) To hold the thing transferred as security for the | 6215 |
performance of an obligation of the vendor; | 6216 |
(c) To resell, hold, use, or consume the thing transferred as | 6217 |
evidence of a contract of insurance; | 6218 |
(d) To use or consume the thing directly in commercial | 6219 |
fishing; | 6220 |
(e) To incorporate the thing transferred as a material or a | 6221 |
part into, or to use or consume the thing transferred directly in | 6222 |
the production of, magazines distributed as controlled circulation | 6223 |
publications; | 6224 |
(f) To use or consume the thing transferred in the production | 6225 |
and preparation in suitable condition for market and sale of | 6226 |
printed, imprinted, overprinted, lithographic, multilithic, | 6227 |
blueprinted, photostatic, or other productions or reproductions of | 6228 |
written or graphic matter; | 6229 |
(g) To use the thing transferred, as described in section | 6230 |
5739.011 of the Revised Code, primarily in a manufacturing | 6231 |
operation to produce tangible personal property for sale; | 6232 |
(h) To use the benefit of a warranty, maintenance or service | 6233 |
contract, or similar agreement, as described in division (B)(7) of | 6234 |
section 5739.01 of the Revised Code, to repair or maintain | 6235 |
tangible personal property, if all of the property that is the | 6236 |
subject of the warranty, contract, or agreement would not be | 6237 |
subject to the tax imposed by this section; | 6238 |
(i) To use the thing transferred as qualified research and | 6239 |
development equipment; | 6240 |
(j) To use or consume the thing transferred primarily in | 6241 |
storing, transporting, mailing, or otherwise handling purchased | 6242 |
sales inventory in a warehouse, distribution center, or similar | 6243 |
facility when the inventory is primarily distributed outside this | 6244 |
state to retail stores of the person who owns or controls the | 6245 |
warehouse, distribution center, or similar facility, to retail | 6246 |
stores of an affiliated group of which that person is a member, or | 6247 |
by means of direct marketing. This division does not apply to | 6248 |
motor vehicles registered for operation on the public highways. As | 6249 |
used in this division, "affiliated group" has the same meaning as | 6250 |
in division (B)(3)(e) of section 5739.01 of the Revised Code and | 6251 |
"direct marketing" has the same meaning as in division (B)(35) of | 6252 |
this section. | 6253 |
(k) To use or consume the thing transferred to fulfill a | 6254 |
contractual obligation incurred by a warrantor pursuant to a | 6255 |
warranty provided as a part of the price of the tangible personal | 6256 |
property sold or by a vendor of a warranty, maintenance or service | 6257 |
contract, or similar agreement the provision of which is defined | 6258 |
as a sale under division (B)(7) of section 5739.01 of the Revised | 6259 |
Code; | 6260 |
(l) To use or consume the thing transferred in the production | 6261 |
of a newspaper for distribution to the public; | 6262 |
(m) To use tangible personal property to perform a service | 6263 |
listed in division (B)(3) of section 5739.01 of the Revised Code, | 6264 |
if the property is or is to be permanently transferred to the | 6265 |
consumer of the service as an integral part of the performance of | 6266 |
the service; | 6267 |
(n) To use or consume the thing transferred primarily in | 6268 |
producing tangible personal property for sale by farming, | 6269 |
agriculture, horticulture, or floriculture. Persons engaged in | 6270 |
rendering farming, agriculture, horticulture, or floriculture | 6271 |
services for others are deemed engaged primarily in farming, | 6272 |
agriculture, horticulture, or floriculture. This paragraph does | 6273 |
not exempt from "retail sale" or "sales at retail" the sale of | 6274 |
tangible personal property that is to be incorporated into a | 6275 |
structure or improvement to real property. | 6276 |
(o) To use or consume the thing transferred in acquiring, | 6277 |
formatting, editing, storing, and disseminating data or | 6278 |
information by electronic publishing. | 6279 |
As used in division (B)(42) of this section, "thing" includes | 6280 |
all transactions included in divisions (B)(3)(a), (b), and (e) of | 6281 |
section 5739.01 of the Revised Code. | 6282 |
(43) Sales conducted through a coin operated device that | 6283 |
activates vacuum equipment or equipment that dispenses water, | 6284 |
whether or not in combination with soap or other cleaning agents | 6285 |
or wax, to the consumer for the consumer's use on the premises in | 6286 |
washing, cleaning, or waxing a motor vehicle, provided no other | 6287 |
personal property or personal service is provided as part of the | 6288 |
transaction. | 6289 |
(44) Sales of replacement and modification parts for engines, | 6290 |
airframes, instruments, and interiors in, and paint for, aircraft | 6291 |
used primarily in a fractional aircraft ownership program, and | 6292 |
sales of services for the repair, modification, and maintenance of | 6293 |
such aircraft, and machinery, equipment, and supplies primarily | 6294 |
used to provide those services. | 6295 |
(45) Sales of telecommunications service that is used | 6296 |
directly and primarily to perform the functions of a call center. | 6297 |
As used in this division, "call center" means any physical | 6298 |
location where telephone calls are placed or received in high | 6299 |
volume for the purpose of making sales, marketing, customer | 6300 |
service, technical support, or other specialized business | 6301 |
activity, and that employs at least fifty individuals that engage | 6302 |
in call center activities on a full-time basis, or sufficient | 6303 |
individuals to fill fifty full-time equivalent positions. | 6304 |
(46) Sales by a telecommunications service vendor of 900 | 6305 |
service to a subscriber. This division does not apply to | 6306 |
information services, as defined in division (FF) of section | 6307 |
5739.01 of the Revised Code. | 6308 |
(47) Sales of value-added non-voice data service. This | 6309 |
division does not apply to any similar service that is not | 6310 |
otherwise a telecommunications service. | 6311 |
(48)(a) Sales of machinery, equipment, and software to a | 6312 |
qualified direct selling entity for use in a warehouse or | 6313 |
distribution center primarily for storing, transporting, or | 6314 |
otherwise handling inventory that is held for sale to independent | 6315 |
salespersons who operate as direct sellers and that is held | 6316 |
primarily for distribution outside this state; | 6317 |
(b) As used in division (B)(48)(a) of this section: | 6318 |
(i) "Direct seller" means a person selling consumer products | 6319 |
to individuals for personal or household use and not from a fixed | 6320 |
retail location, including selling such product at in-home product | 6321 |
demonstrations, parties, and other one-on-one selling. | 6322 |
(ii) "Qualified direct selling entity" means an entity | 6323 |
selling to direct sellers at the time the entity enters into a tax | 6324 |
credit agreement with the tax credit authority pursuant to section | 6325 |
122.17 of the Revised Code, provided that the agreement was | 6326 |
entered into on or after January 1, 2007. Neither contingencies | 6327 |
relevant to the granting of, nor later developments with respect | 6328 |
to, the tax credit shall impair the status of the qualified direct | 6329 |
selling entity under division (B)(48) of this section after | 6330 |
execution of the tax credit agreement by the tax credit authority. | 6331 |
(c) Division (B)(48) of this section is limited to machinery, | 6332 |
equipment, and software first stored, used, or consumed in this | 6333 |
state within the period commencing June 24, 2008, and ending on | 6334 |
the date that is five years after that date. | 6335 |
(49) Sales of materials, parts, equipment, or engines used in | 6336 |
the repair or maintenance of aircraft or avionics systems of such | 6337 |
aircraft, and sales of repair, remodeling, replacement, or | 6338 |
maintenance services in this state performed on aircraft or on an | 6339 |
aircraft's avionics, engine, or component materials or parts. As | 6340 |
used in division (B)(49) of this section, "aircraft" means | 6341 |
aircraft of more than six thousand pounds maximum certified | 6342 |
takeoff weight or used exclusively in general aviation. | 6343 |
(50) Sales of full flight simulators that are used for pilot | 6344 |
or flight-crew training, sales of repair or replacement parts or | 6345 |
components, and sales of repair or maintenance services for such | 6346 |
full flight simulators. "Full flight simulator" means a replica of | 6347 |
a specific type, or make, model, and series of aircraft cockpit. | 6348 |
It includes the assemblage of equipment and computer programs | 6349 |
necessary to represent aircraft operations in ground and flight | 6350 |
conditions, a visual system providing an out-of-the-cockpit view, | 6351 |
and a system that provides cues at least equivalent to those of a | 6352 |
three-degree-of-freedom motion system, and has the full range of | 6353 |
capabilities of the systems installed in the device as described | 6354 |
in appendices A and B of part 60 of chapter 1 of title 14 of the | 6355 |
Code of Federal Regulations. | 6356 |
(51) Any transfer or lease of tangible personal property | 6357 |
between the state and a successful proposer in accordance with | 6358 |
sections 126.60 to 126.605 of the Revised Code, provided the | 6359 |
property is part of a project as defined in section 126.60 of the | 6360 |
Revised Code and the state retains ownership of the project or | 6361 |
part thereof that is being transferred or leased, between the | 6362 |
state and JobsOhio in accordance with section 4313.02 of the | 6363 |
Revised Code. | 6364 |
(C) For the purpose of the proper administration of this | 6365 |
chapter, and to prevent the evasion of the tax, it is presumed | 6366 |
that all sales made in this state are subject to the tax until the | 6367 |
contrary is established. | 6368 |
(D) The levy of this tax on retail sales of recreation and | 6369 |
sports club service shall not prevent a municipal corporation from | 6370 |
levying any tax on recreation and sports club dues or on any | 6371 |
income generated by recreation and sports club dues. | 6372 |
(E) The tax collected by the vendor from the consumer under | 6373 |
this chapter is not part of the price, but is a tax collection for | 6374 |
the benefit of the state, and of counties levying an additional | 6375 |
sales tax pursuant to section 5739.021 or 5739.026 of the Revised | 6376 |
Code and of transit authorities levying an additional sales tax | 6377 |
pursuant to section 5739.023 of the Revised Code. Except for the | 6378 |
discount authorized under section 5739.12 of the Revised Code and | 6379 |
the effects of any rounding pursuant to section 5703.055 of the | 6380 |
Revised Code, no person other than the state or such a county or | 6381 |
transit authority shall derive any benefit from the collection or | 6382 |
payment of the tax levied by this section or section 5739.021, | 6383 |
5739.023, or 5739.026 of the Revised Code. | 6384 |
Sec. 5739.021. (A) For the purpose of providing additional | 6385 |
general revenues for the county or supporting criminal and | 6386 |
administrative justice services in the county, or both, and to pay | 6387 |
the expenses of administering such levy, any county may levy a tax | 6388 |
at the rate of not more than one per cent at any multiple of | 6389 |
one-fourth of one per cent upon every retail sale made in the | 6390 |
county, except sales of watercraft and outboard motors required to | 6391 |
be titled pursuant to Chapter 1548. of the Revised Code and sales | 6392 |
of motor vehicles, and may increase the rate of an existing tax to | 6393 |
not more than one per cent at any multiple of one-fourth of one | 6394 |
per cent. | 6395 |
The tax shall be levied and the rate increased pursuant to a | 6396 |
resolution of the board of county commissioners. The resolution | 6397 |
shall state the purpose for which the tax is to be levied and the | 6398 |
number of years for which the tax is to be levied, or that it is | 6399 |
for a continuing period of time. If the tax is to be levied for | 6400 |
the purpose of providing additional general revenues and for the | 6401 |
purpose of supporting criminal and administrative justice | 6402 |
services, the resolution shall state the rate or amount of the tax | 6403 |
to be apportioned to each such purpose. The rate or amount may be | 6404 |
different for each year the tax is to be levied, but the rates or | 6405 |
amounts actually apportioned each year shall not be different from | 6406 |
that stated in the resolution for that year. If the resolution is | 6407 |
adopted as an emergency measure necessary for the immediate | 6408 |
preservation of the public peace, health, or safety, it must | 6409 |
receive an affirmative vote of all of the members of the board of | 6410 |
county commissioners and shall state the reasons for such | 6411 |
necessity. The board shall deliver a certified copy of the | 6412 |
resolution to the tax commissioner, not later than the sixty-fifth | 6413 |
day prior to the date on which the tax is to become effective, | 6414 |
which shall be the first day of the calendar quarter. | 6415 |
Prior to the adoption of any resolution under this section, | 6416 |
the board of county commissioners shall conduct two public | 6417 |
hearings on the resolution, the second hearing to be not less than | 6418 |
three nor more than ten days after the first. Notice of the date, | 6419 |
time, and place of the hearings shall be given by publication in a | 6420 |
newspaper of general circulation in the county, or as provided in | 6421 |
section 7.16 of the Revised Code, once a week on the same day of | 6422 |
the week for two consecutive weeks, the second publication being | 6423 |
not less than ten nor more than thirty days prior to the first | 6424 |
hearing. | 6425 |
Except as provided in division (B)(3) of this section, the | 6426 |
resolution shall be subject to a referendum as provided in | 6427 |
sections 305.31 to 305.41 of the Revised Code. | 6428 |
If a petition for a referendum is filed, the county auditor | 6429 |
with whom the petition was filed shall, within five days, notify | 6430 |
the board of county commissioners and the tax commissioner of the | 6431 |
filing of the petition by certified mail. If the board of | 6432 |
elections with which the petition was filed declares the petition | 6433 |
invalid, the board of elections, within five days, shall notify | 6434 |
the board of county commissioners and the tax commissioner of that | 6435 |
declaration by certified mail. If the petition is declared to be | 6436 |
invalid, the effective date of the tax or increased rate of tax | 6437 |
levied by this section shall be the first day of a calendar | 6438 |
quarter following the expiration of sixty-five days from the date | 6439 |
the commissioner receives notice from the board of elections that | 6440 |
the petition is invalid. | 6441 |
(B)(1) A resolution that is not adopted as an emergency | 6442 |
measure may direct the board of elections to submit the question | 6443 |
of levying the tax or increasing the rate of tax to the electors | 6444 |
of the county at a special election held on the date specified by | 6445 |
the board of county commissioners in the resolution, provided that | 6446 |
the election occurs not less than ninety days after a certified | 6447 |
copy of such resolution is transmitted to the board of elections | 6448 |
and the election is not held in February or August of any year. | 6449 |
Upon transmission of the resolution to the board of elections, the | 6450 |
board of county commissioners shall notify the tax commissioner in | 6451 |
writing of the levy question to be submitted to the electors. No | 6452 |
resolution adopted under this division shall go into effect unless | 6453 |
approved by a majority of those voting upon it, and, except as | 6454 |
provided in division (B)(3) of this section, shall become | 6455 |
effective on the first day of a calendar quarter following the | 6456 |
expiration of sixty-five days from the date the tax commissioner | 6457 |
receives notice from the board of elections of the affirmative | 6458 |
vote. | 6459 |
(2) A resolution that is adopted as an emergency measure | 6460 |
shall go into effect as provided in division (A) of this section, | 6461 |
but may direct the board of elections to submit the question of | 6462 |
repealing the tax or increase in the rate of the tax to the | 6463 |
electors of the county at the next general election in the county | 6464 |
occurring not less than ninety days after a certified copy of the | 6465 |
resolution is transmitted to the board of elections. Upon | 6466 |
transmission of the resolution to the board of elections, the | 6467 |
board of county commissioners shall notify the tax commissioner in | 6468 |
writing of the levy question to be submitted to the electors. The | 6469 |
ballot question shall be the same as that prescribed in section | 6470 |
5739.022 of the Revised Code. The board of elections shall notify | 6471 |
the board of county commissioners and the tax commissioner of the | 6472 |
result of the election immediately after the result has been | 6473 |
declared. If a majority of the qualified electors voting on the | 6474 |
question of repealing the tax or increase in the rate of the tax | 6475 |
vote for repeal of the tax or repeal of the increase, the board of | 6476 |
county commissioners, on the first day of a calendar quarter | 6477 |
following the expiration of sixty-five days after the date the | 6478 |
board and tax commissioner receive notice of the result of the | 6479 |
election, shall, in the case of a repeal of the tax, cease to levy | 6480 |
the tax, or, in the case of a repeal of an increase in the rate of | 6481 |
the tax, cease to levy the increased rate and levy the tax at the | 6482 |
rate at which it was imposed immediately prior to the increase in | 6483 |
rate. | 6484 |
(3) If a vendor | 6485 |
6486 | |
6487 | |
the consumer computed the tax on the sale based on local rates | 6488 |
published in the catalog, any tax levied or repealed or rate | 6489 |
changed under this section shall not apply to such a sale until | 6490 |
the first day of a calendar quarter following the expiration of | 6491 |
one hundred twenty days from the date of notice by the tax | 6492 |
commissioner pursuant to division (H) of this section. | 6493 |
(C) If a resolution is rejected at a referendum or if a | 6494 |
resolution adopted after January 1, 1982, as an emergency measure | 6495 |
is repealed by the electors pursuant to division (B)(2) of this | 6496 |
section or section 5739.022 of the Revised Code, then for one year | 6497 |
after the date of the election at which the resolution was | 6498 |
rejected or repealed the board of county commissioners may not | 6499 |
adopt any resolution authorized by this section as an emergency | 6500 |
measure. | 6501 |
(D) The board of county commissioners, at any time while a | 6502 |
tax levied under this section is in effect, may by resolution | 6503 |
reduce the rate at which the tax is levied to a lower rate | 6504 |
authorized by this section. Any reduction in the rate at which the | 6505 |
tax is levied shall be made effective on the first day of a | 6506 |
calendar quarter next following the sixty-fifth day after a | 6507 |
certified copy of the resolution is delivered to the tax | 6508 |
commissioner. | 6509 |
(E) The tax on every retail sale subject to a tax levied | 6510 |
pursuant to this section shall be in addition to the tax levied by | 6511 |
section 5739.02 of the Revised Code and any tax levied pursuant to | 6512 |
section 5739.023 or 5739.026 of the Revised Code. | 6513 |
A county that levies a tax pursuant to this section shall | 6514 |
levy a tax at the same rate pursuant to section 5741.021 of the | 6515 |
Revised Code. | 6516 |
The additional tax levied by the county shall be collected | 6517 |
pursuant to section 5739.025 of the Revised Code. If the | 6518 |
additional tax or some portion thereof is levied for the purpose | 6519 |
of criminal and administrative justice services, the revenue from | 6520 |
the tax, or the amount or rate apportioned to that purpose, shall | 6521 |
be credited to a special fund created in the county treasury for | 6522 |
receipt of that revenue. | 6523 |
Any tax levied pursuant to this section is subject to the | 6524 |
exemptions provided in section 5739.02 of the Revised Code and in | 6525 |
addition shall not be applicable to sales not within the taxing | 6526 |
power of a county under the Constitution of the United States or | 6527 |
the Ohio Constitution. | 6528 |
(F) For purposes of this section, a copy of a resolution is | 6529 |
"certified" when it contains a written statement attesting that | 6530 |
the copy is a true and exact reproduction of the original | 6531 |
resolution. | 6532 |
(G) If a board of commissioners intends to adopt a resolution | 6533 |
to levy a tax in whole or in part for the purpose of criminal and | 6534 |
administrative justice services, the board shall prepare and make | 6535 |
available at the first public hearing at which the resolution is | 6536 |
considered a statement containing the following information: | 6537 |
(1) For each of the two preceding fiscal years, the amount of | 6538 |
expenditures made by the county from the county general fund for | 6539 |
the purpose of criminal and administrative justice services; | 6540 |
(2) For the fiscal year in which the resolution is adopted, | 6541 |
the board's estimate of the amount of expenditures to be made by | 6542 |
the county from the county general fund for the purpose of | 6543 |
criminal and administrative justice services; | 6544 |
(3) For each of the two fiscal years after the fiscal year in | 6545 |
which the resolution is adopted, the board's preliminary plan for | 6546 |
expenditures to be made from the county general fund for the | 6547 |
purpose of criminal and administrative justice services, both | 6548 |
under the assumption that the tax will be imposed for that purpose | 6549 |
and under the assumption that the tax would not be imposed for | 6550 |
that purpose, and for expenditures to be made from the special | 6551 |
fund created under division (E) of this section under the | 6552 |
assumption that the tax will be imposed for that purpose. | 6553 |
The board shall prepare the statement and the preliminary | 6554 |
plan using the best information available to the board at the time | 6555 |
the statement is prepared. Neither the statement nor the | 6556 |
preliminary plan shall be used as a basis to challenge the | 6557 |
validity of the tax in any court of competent jurisdiction, nor | 6558 |
shall the statement or preliminary plan limit the authority of the | 6559 |
board to appropriate, pursuant to section 5705.38 of the Revised | 6560 |
Code, an amount different from that specified in the preliminary | 6561 |
plan. | 6562 |
(H) Upon receipt from a board of county commissioners of a | 6563 |
certified copy of a resolution required by division (A) or (D) of | 6564 |
this section, or from the board of elections of a notice of the | 6565 |
results of an election required by division (A) or (B)(1) or (2) | 6566 |
of this section, the tax commissioner shall provide notice of a | 6567 |
tax rate change in a manner that is reasonably accessible to all | 6568 |
affected vendors. The commissioner shall provide this notice at | 6569 |
least sixty days prior to the effective date of the rate change. | 6570 |
The commissioner, by rule, may establish the method by which | 6571 |
notice will be provided. | 6572 |
(I) As used in this section, "criminal and administrative | 6573 |
justice services" means the exercise by the county sheriff of all | 6574 |
powers and duties vested in that office by law; the exercise by | 6575 |
the county prosecuting attorney of all powers and duties vested in | 6576 |
that office by law; the exercise by any court in the county of all | 6577 |
powers and duties vested in that court; the exercise by the clerk | 6578 |
of the court of common pleas, any clerk of a municipal court | 6579 |
having jurisdiction throughout the county, or the clerk of any | 6580 |
county court of all powers and duties vested in the clerk by law | 6581 |
except, in the case of the clerk of the court of common pleas, the | 6582 |
titling of motor vehicles or watercraft pursuant to Chapter 1548. | 6583 |
or 4505. of the Revised Code; the exercise by the county coroner | 6584 |
of all powers and duties vested in that office by law; making | 6585 |
payments to any other public agency or a private, nonprofit | 6586 |
agency, the purposes of which in the county include the diversion, | 6587 |
adjudication, detention, or rehabilitation of criminals or | 6588 |
juvenile offenders; the operation and maintenance of any detention | 6589 |
facility, as defined in section 2921.01 of the Revised Code; and | 6590 |
the construction, acquisition, equipping, or repair of such a | 6591 |
detention facility, including the payment of any debt charges | 6592 |
incurred in the issuance of securities pursuant to Chapter 133. of | 6593 |
the Revised Code for the purpose of constructing, acquiring, | 6594 |
equipping, or repairing such a facility. | 6595 |
Sec. 5739.023. (A)(1) For the purpose of providing | 6596 |
additional general revenues for a transit authority and paying the | 6597 |
expenses of administering such levy, any transit authority as | 6598 |
defined in division (U) of section 5739.01 of the Revised Code may | 6599 |
levy a tax upon every retail sale made in the territory of the | 6600 |
transit authority, except sales of watercraft and outboard motors | 6601 |
required to be titled pursuant to Chapter 1548. of the Revised | 6602 |
Code and sales of motor vehicles, at a rate of not more than one | 6603 |
and one-half per cent at any multiple of one-fourth of one per | 6604 |
cent and may increase the existing rate of tax to not more than | 6605 |
one and one-half per cent at any multiple of one-fourth of one per | 6606 |
cent. The tax shall be levied and the rate increased pursuant to a | 6607 |
resolution of the legislative authority of the transit authority | 6608 |
and a certified copy of the resolution shall be delivered by the | 6609 |
fiscal officer to the board of elections as provided in section | 6610 |
3505.071 of the Revised Code and to the tax commissioner. The | 6611 |
resolution shall specify the number of years for which the tax is | 6612 |
to be in effect or that the tax is for a continuing period of | 6613 |
time, and the date of the election on the question of the tax | 6614 |
pursuant to section 306.70 of the Revised Code. The board of | 6615 |
elections shall certify the results of the election to the transit | 6616 |
authority and tax commissioner. | 6617 |
(2) Except as provided in division (C) of this section, the | 6618 |
tax levied by the resolution shall become effective on the first | 6619 |
day of a calendar quarter next following the sixty-fifth day | 6620 |
following the date the tax commissioner receives from the board of | 6621 |
elections the certification of the results of the election on the | 6622 |
question of the tax. | 6623 |
(B) The legislative authority may, at any time while the tax | 6624 |
is in effect, by resolution fix the rate of the tax at any rate | 6625 |
authorized by this section and not in excess of that approved by | 6626 |
the voters pursuant to section 306.70 of the Revised Code. Except | 6627 |
as provided in division (C) of this section, any change in the | 6628 |
rate of the tax shall be made effective on the first day of a | 6629 |
calendar quarter next following the sixty-fifth day following the | 6630 |
date the tax commissioner receives the certification of the | 6631 |
resolution; provided, that in any case where bonds, or notes in | 6632 |
anticipation of bonds, of a regional transit authority have been | 6633 |
issued under section 306.40 of the Revised Code without a vote of | 6634 |
the electors while the tax proposed to be reduced was in effect, | 6635 |
the board of trustees of the regional transit authority shall | 6636 |
continue to levy and collect under authority of the original | 6637 |
election authorizing the tax a rate of tax that the board of | 6638 |
trustees reasonably estimates will produce an amount in that year | 6639 |
equal to the amount of principal of and interest on those bonds as | 6640 |
is payable in that year. | 6641 |
(C) Upon receipt from the board of elections of the | 6642 |
certification of the results of the election required by division | 6643 |
(A) of this section, or from the legislative authority of the | 6644 |
certification of a resolution under division (B) of this section, | 6645 |
the tax commissioner shall provide notice of a tax rate change in | 6646 |
a manner that is reasonably accessible to all affected vendors. | 6647 |
The commissioner shall provide this notice at least sixty days | 6648 |
prior to the effective date of the rate change. The commissioner, | 6649 |
by rule, may establish the method by which notice will be | 6650 |
provided. | 6651 |
(D) If a vendor | 6652 |
6653 | |
6654 | |
the consumer computed the tax on the sale based on local rates | 6655 |
published in the catalog, any tax levied or rate changed under | 6656 |
this section shall not apply to such a sale until the first day of | 6657 |
a calendar quarter following the expiration of one hundred twenty | 6658 |
days from the date of notice by the tax commissioner pursuant to | 6659 |
division (C) of this section. | 6660 |
(E) The tax on every retail sale subject to a tax levied | 6661 |
pursuant to this section is in addition to the tax levied by | 6662 |
section 5739.02 of the Revised Code and any tax levied pursuant to | 6663 |
section 5739.021 or 5739.026 of the Revised Code. | 6664 |
(F) The additional tax levied by the transit authority shall | 6665 |
be collected pursuant to section 5739.025 of the Revised Code. | 6666 |
(G) Any tax levied pursuant to this section is subject to the | 6667 |
exemptions provided in section 5739.02 of the Revised Code and in | 6668 |
addition shall not be applicable to sales not within the taxing | 6669 |
power of a transit authority under the constitution of the United | 6670 |
States or the constitution of this state. | 6671 |
(H) The rate of a tax levied under this section is subject to | 6672 |
reduction under section 5739.028 of the Revised Code, if a ballot | 6673 |
question is approved by voters pursuant to that section. | 6674 |
Sec. 5739.026. (A) A board of county commissioners may levy | 6675 |
a tax of one-fourth or one-half of one per cent on every retail | 6676 |
sale in the county, except sales of watercraft and outboard motors | 6677 |
required to be titled pursuant to Chapter 1548. of the Revised | 6678 |
Code and sales of motor vehicles, and may increase an existing | 6679 |
rate of one-fourth of one per cent to one-half of one per cent, to | 6680 |
pay the expenses of administering the tax and, except as provided | 6681 |
in division (A)(6) of this section, for any one or more of the | 6682 |
following purposes provided that the aggregate levy for all such | 6683 |
purposes does not exceed one-half of one per cent: | 6684 |
(1) To provide additional revenues for the payment of bonds | 6685 |
or notes issued in anticipation of bonds issued by a convention | 6686 |
facilities authority established by the board of county | 6687 |
commissioners under Chapter 351. of the Revised Code and to | 6688 |
provide additional operating revenues for the convention | 6689 |
facilities authority; | 6690 |
(2) To provide additional revenues for a transit authority | 6691 |
operating in the county; | 6692 |
(3) To provide additional revenue for the county's general | 6693 |
fund; | 6694 |
(4) To provide additional revenue for permanent improvements | 6695 |
within the county to be distributed by the community improvements | 6696 |
board in accordance with section 307.283 and to pay principal, | 6697 |
interest, and premium on bonds issued under section 307.284 of the | 6698 |
Revised Code; | 6699 |
(5) To provide additional revenue for the acquisition, | 6700 |
construction, equipping, or repair of any specific permanent | 6701 |
improvement or any class or group of permanent improvements, which | 6702 |
improvement or class or group of improvements shall be enumerated | 6703 |
in the resolution required by division (D) of this section, and to | 6704 |
pay principal, interest, premium, and other costs associated with | 6705 |
the issuance of bonds or notes in anticipation of bonds issued | 6706 |
pursuant to Chapter 133. of the Revised Code for the acquisition, | 6707 |
construction, equipping, or repair of the specific permanent | 6708 |
improvement or class or group of permanent improvements; | 6709 |
(6) To provide revenue for the implementation and operation | 6710 |
of a 9-1-1 system in the county. If the tax is levied or the rate | 6711 |
increased exclusively for such purpose, the tax shall not be | 6712 |
levied or the rate increased for more than five years. At the end | 6713 |
of the last year the tax is levied or the rate increased, any | 6714 |
balance remaining in the special fund established for such purpose | 6715 |
shall remain in that fund and be used exclusively for such purpose | 6716 |
until the fund is completely expended, and, notwithstanding | 6717 |
section 5705.16 of the Revised Code, the board of county | 6718 |
commissioners shall not petition for the transfer of money from | 6719 |
such special fund, and the tax commissioner shall not approve such | 6720 |
a petition. | 6721 |
If the tax is levied or the rate increased for such purpose | 6722 |
for more than five years, the board of county commissioners also | 6723 |
shall levy the tax or increase the rate of the tax for one or more | 6724 |
of the purposes described in divisions (A)(1) to (5) of this | 6725 |
section and shall prescribe the method for allocating the revenues | 6726 |
from the tax each year in the manner required by division (C) of | 6727 |
this section. | 6728 |
(7) To provide additional revenue for the operation or | 6729 |
maintenance of a detention facility, as that term is defined under | 6730 |
division (F) of section 2921.01 of the Revised Code; | 6731 |
(8) To provide revenue to finance the construction or | 6732 |
renovation of a sports facility, but only if the tax is levied for | 6733 |
that purpose in the manner prescribed by section 5739.028 of the | 6734 |
Revised Code. | 6735 |
As used in division (A)(8) of this section: | 6736 |
(a) "Sports facility" means a facility intended to house | 6737 |
major league professional athletic teams. | 6738 |
(b) "Constructing" or "construction" includes providing | 6739 |
fixtures, furnishings, and equipment. | 6740 |
(9) To provide additional revenue for the acquisition of | 6741 |
agricultural easements, as defined in section 5301.67 of the | 6742 |
Revised Code; to pay principal, interest, and premium on bonds | 6743 |
issued under section 133.60 of the Revised Code; and for the | 6744 |
supervision and enforcement of agricultural easements held by the | 6745 |
county; | 6746 |
(10) To provide revenue for the provision of ambulance, | 6747 |
paramedic, or other emergency medical services. | 6748 |
Pursuant to section 755.171 of the Revised Code, a board of | 6749 |
county commissioners may pledge and contribute revenue from a tax | 6750 |
levied for the purpose of division (A)(5) of this section to the | 6751 |
payment of debt charges on bonds issued under section 755.17 of | 6752 |
the Revised Code. | 6753 |
The rate of tax shall be a multiple of one-fourth of one per | 6754 |
cent, unless a portion of the rate of an existing tax levied under | 6755 |
section 5739.023 of the Revised Code has been reduced, and the | 6756 |
rate of tax levied under this section has been increased, pursuant | 6757 |
to section 5739.028 of the Revised Code, in which case the | 6758 |
aggregate of the rates of tax levied under this section and | 6759 |
section 5739.023 of the Revised Code shall be a multiple of | 6760 |
one-fourth of one per cent. The tax shall be levied and the rate | 6761 |
increased pursuant to a resolution adopted by a majority of the | 6762 |
members of the board. The board shall deliver a certified copy of | 6763 |
the resolution to the tax commissioner, not later than the | 6764 |
sixty-fifth day prior to the date on which the tax is to become | 6765 |
effective, which shall be the first day of a calendar quarter. | 6766 |
Prior to the adoption of any resolution to levy the tax or to | 6767 |
increase the rate of tax exclusively for the purpose set forth in | 6768 |
division (A)(3) of this section, the board of county commissioners | 6769 |
shall conduct two public hearings on the resolution, the second | 6770 |
hearing to be no fewer than three nor more than ten days after the | 6771 |
first. Notice of the date, time, and place of the hearings shall | 6772 |
be given by publication in a newspaper of general circulation in | 6773 |
the county, or as provided in section 7.16 of the Revised Code, | 6774 |
once a week on the same day of the week for two consecutive weeks. | 6775 |
The second publication shall be no fewer than ten nor more than | 6776 |
thirty days prior to the first hearing. Except as provided in | 6777 |
division (E) of this section, the resolution shall be subject to a | 6778 |
referendum as provided in sections 305.31 to 305.41 of the Revised | 6779 |
Code. If the resolution is adopted as an emergency measure | 6780 |
necessary for the immediate preservation of the public peace, | 6781 |
health, or safety, it must receive an affirmative vote of all of | 6782 |
the members of the board of county commissioners and shall state | 6783 |
the reasons for the necessity. | 6784 |
If the tax is for more than one of the purposes set forth in | 6785 |
divisions (A)(1) to (7), (9), and (10) of this section, or is | 6786 |
exclusively for one of the purposes set forth in division (A)(1), | 6787 |
(2), (4), (5), (6), (7), (9), or (10) of this section, the | 6788 |
resolution shall not go into effect unless it is approved by a | 6789 |
majority of the electors voting on the question of the tax. | 6790 |
(B) The board of county commissioners shall adopt a | 6791 |
resolution under section 351.02 of the Revised Code creating the | 6792 |
convention facilities authority, or under section 307.283 of the | 6793 |
Revised Code creating the community improvements board, before | 6794 |
adopting a resolution levying a tax for the purpose of a | 6795 |
convention facilities authority under division (A)(1) of this | 6796 |
section or for the purpose of a community improvements board under | 6797 |
division (A)(4) of this section. | 6798 |
(C)(1) If the tax is to be used for more than one of the | 6799 |
purposes set forth in divisions (A)(1) to (7), (9), and (10) of | 6800 |
this section, the board of county commissioners shall establish | 6801 |
the method that will be used to determine the amount or proportion | 6802 |
of the tax revenue received by the county during each year that | 6803 |
will be distributed for each of those purposes, including, if | 6804 |
applicable, provisions governing the reallocation of a convention | 6805 |
facilities authority's allocation if the authority is dissolved | 6806 |
while the tax is in effect. The allocation method may provide that | 6807 |
different proportions or amounts of the tax shall be distributed | 6808 |
among the purposes in different years, but it shall clearly | 6809 |
describe the method that will be used for each year. Except as | 6810 |
otherwise provided in division (C)(2) of this section, the | 6811 |
allocation method established by the board is not subject to | 6812 |
amendment during the life of the tax. | 6813 |
(2) Subsequent to holding a public hearing on the proposed | 6814 |
amendment, the board of county commissioners may amend the | 6815 |
allocation method established under division (C)(1) of this | 6816 |
section for any year, if the amendment is approved by the | 6817 |
governing board of each entity whose allocation for the year would | 6818 |
be reduced by the proposed amendment. In the case of a tax that is | 6819 |
levied for a continuing period of time, the board may not so amend | 6820 |
the allocation method for any year before the sixth year that the | 6821 |
tax is in effect. | 6822 |
(a) If the additional revenues provided to the convention | 6823 |
facilities authority are pledged by the authority for the payment | 6824 |
of convention facilities authority revenue bonds for as long as | 6825 |
such bonds are outstanding, no reduction of the authority's | 6826 |
allocation of the tax shall be made for any year except to the | 6827 |
extent that the reduced authority allocation, when combined with | 6828 |
the authority's other revenues pledged for that purpose, is | 6829 |
sufficient to meet the debt service requirements for that year on | 6830 |
such bonds. | 6831 |
(b) If the additional revenues provided to the county are | 6832 |
pledged by the county for the payment of bonds or notes described | 6833 |
in division (A)(4) or (5) of this section, for as long as such | 6834 |
bonds or notes are outstanding, no reduction of the county's or | 6835 |
the community improvements board's allocation of the tax shall be | 6836 |
made for any year, except to the extent that the reduced county or | 6837 |
community improvements board allocation is sufficient to meet the | 6838 |
debt service requirements for that year on such bonds or notes. | 6839 |
(c) If the additional revenues provided to the transit | 6840 |
authority are pledged by the authority for the payment of revenue | 6841 |
bonds issued under section 306.37 of the Revised Code, for as long | 6842 |
as such bonds are outstanding, no reduction of the authority's | 6843 |
allocation of tax shall be made for any year, except to the extent | 6844 |
that the authority's reduced allocation, when combined with the | 6845 |
authority's other revenues pledged for that purpose, is sufficient | 6846 |
to meet the debt service requirements for that year on such bonds. | 6847 |
(d) If the additional revenues provided to the county are | 6848 |
pledged by the county for the payment of bonds or notes issued | 6849 |
under section 133.60 of the Revised Code, for so long as the bonds | 6850 |
or notes are outstanding, no reduction of the county's allocation | 6851 |
of the tax shall be made for any year, except to the extent that | 6852 |
the reduced county allocation is sufficient to meet the debt | 6853 |
service requirements for that year on the bonds or notes. | 6854 |
(D)(1) The resolution levying the tax or increasing the rate | 6855 |
of tax shall state the rate of the tax or the rate of the | 6856 |
increase; the purpose or purposes for which it is to be levied; | 6857 |
the number of years for which it is to be levied or that it is for | 6858 |
a continuing period of time; the allocation method required by | 6859 |
division (C) of this section; and if required to be submitted to | 6860 |
the electors of the county under division (A) of this section, the | 6861 |
date of the election at which the proposal shall be submitted to | 6862 |
the electors of the county, which shall be not less than ninety | 6863 |
days after the certification of a copy of the resolution to the | 6864 |
board of elections and, if the tax is to be levied exclusively for | 6865 |
the purpose set forth in division (A)(3) of this section, shall | 6866 |
not occur in February or August of any year. Upon certification of | 6867 |
the resolution to the board of elections, the board of county | 6868 |
commissioners shall notify the tax commissioner in writing of the | 6869 |
levy question to be submitted to the electors. If approved by a | 6870 |
majority of the electors, the tax shall become effective on the | 6871 |
first day of a calendar quarter next following the sixty-fifth day | 6872 |
following the date the board of county commissioners and tax | 6873 |
commissioner receive from the board of elections the certification | 6874 |
of the results of the election, except as provided in division (E) | 6875 |
of this section. | 6876 |
(2)(a) A resolution specifying that the tax is to be used | 6877 |
exclusively for the purpose set forth in division (A)(3) of this | 6878 |
section that is not adopted as an emergency measure may direct the | 6879 |
board of elections to submit the question of levying the tax or | 6880 |
increasing the rate of the tax to the electors of the county at a | 6881 |
special election held on the date specified by the board of county | 6882 |
commissioners in the resolution, provided that the election occurs | 6883 |
not less than ninety days after the resolution is certified to the | 6884 |
board of elections and the election is not held in February or | 6885 |
August of any year. Upon certification of the resolution to the | 6886 |
board of elections, the board of county commissioners shall notify | 6887 |
the tax commissioner in writing of the levy question to be | 6888 |
submitted to the electors. No resolution adopted under division | 6889 |
(D)(2)(a) of this section shall go into effect unless approved by | 6890 |
a majority of those voting upon it and, except as provided in | 6891 |
division (E) of this section, not until the first day of a | 6892 |
calendar quarter following the expiration of sixty-five days from | 6893 |
the date the tax commissioner receives notice from the board of | 6894 |
elections of the affirmative vote. | 6895 |
(b) A resolution specifying that the tax is to be used | 6896 |
exclusively for the purpose set forth in division (A)(3) of this | 6897 |
section that is adopted as an emergency measure shall become | 6898 |
effective as provided in division (A) of this section, but may | 6899 |
direct the board of elections to submit the question of repealing | 6900 |
the tax or increase in the rate of the tax to the electors of the | 6901 |
county at the next general election in the county occurring not | 6902 |
less than ninety days after the resolution is certified to the | 6903 |
board of elections. Upon certification of the resolution to the | 6904 |
board of elections, the board of county commissioners shall notify | 6905 |
the tax commissioner in writing of the levy question to be | 6906 |
submitted to the electors. The ballot question shall be the same | 6907 |
as that prescribed in section 5739.022 of the Revised Code. The | 6908 |
board of elections shall notify the board of county commissioners | 6909 |
and the tax commissioner of the result of the election immediately | 6910 |
after the result has been declared. If a majority of the qualified | 6911 |
electors voting on the question of repealing the tax or increase | 6912 |
in the rate of the tax vote for repeal of the tax or repeal of the | 6913 |
increase, the board of county commissioners, on the first day of a | 6914 |
calendar quarter following the expiration of sixty-five days after | 6915 |
the date the board and tax commissioner received notice of the | 6916 |
result of the election, shall, in the case of a repeal of the tax, | 6917 |
cease to levy the tax, or, in the case of a repeal of an increase | 6918 |
in the rate of the tax, cease to levy the increased rate and levy | 6919 |
the tax at the rate at which it was imposed immediately prior to | 6920 |
the increase in rate. | 6921 |
(c) A board of county commissioners, by resolution, may | 6922 |
reduce the rate of a tax levied exclusively for the purpose set | 6923 |
forth in division (A)(3) of this section to a lower rate | 6924 |
authorized by this section. Any such reduction shall be made | 6925 |
effective on the first day of the calendar quarter next following | 6926 |
the sixty-fifth day after the tax commissioner receives a | 6927 |
certified copy of the resolution from the board. | 6928 |
(E) If a vendor | 6929 |
6930 | |
6931 | |
the consumer computed the tax on the sale based on local rates | 6932 |
published in the catalog, any tax levied or repealed or rate | 6933 |
changed under this section shall not apply to such a sale until | 6934 |
the first day of a calendar quarter following the expiration of | 6935 |
one hundred twenty days from the date of notice by the tax | 6936 |
commissioner pursuant to division (G) of this section. | 6937 |
(F) The tax levied pursuant to this section shall be in | 6938 |
addition to the tax levied by section 5739.02 of the Revised Code | 6939 |
and any tax levied pursuant to section 5739.021 or 5739.023 of the | 6940 |
Revised Code. | 6941 |
A county that levies a tax pursuant to this section shall | 6942 |
levy a tax at the same rate pursuant to section 5741.023 of the | 6943 |
Revised Code. | 6944 |
The additional tax levied by the county shall be collected | 6945 |
pursuant to section 5739.025 of the Revised Code. | 6946 |
Any tax levied pursuant to this section is subject to the | 6947 |
exemptions provided in section 5739.02 of the Revised Code and in | 6948 |
addition shall not be applicable to sales not within the taxing | 6949 |
power of a county under the Constitution of the United States or | 6950 |
the Ohio Constitution. | 6951 |
(G) Upon receipt from a board of county commissioners of a | 6952 |
certified copy of a resolution required by division (A) of this | 6953 |
section, or from the board of elections a notice of the results of | 6954 |
an election required by division (D)(1), (2)(a), (b), or (c) of | 6955 |
this section, the tax commissioner shall provide notice of a tax | 6956 |
rate change in a manner that is reasonably accessible to all | 6957 |
affected vendors. The commissioner shall provide this notice at | 6958 |
least sixty days prior to the effective date of the rate change. | 6959 |
The commissioner, by rule, may establish the method by which | 6960 |
notice will be provided. | 6961 |
Sec. 5739.04. If modification of a county's jurisdictional | 6962 |
boundaries or a transit authority's territory results in a change | 6963 |
in the tax rate levied under section 5739.021, 5739.023, or | 6964 |
5739.026 of the Revised Code, the tax commissioner, within thirty | 6965 |
days of such change, shall notify any vendor | 6966 |
6967 | |
6968 | |
service provider, if the vendor has selected one, of such change. | 6969 |
The rate change shall not apply to sales made by such vendor until | 6970 |
the first day of a calendar quarter following the expiration of | 6971 |
sixty days from the date of notice by the | 6972 |
Sec. 5739.17. (A) No person shall engage in making retail | 6973 |
sales subject to a tax imposed by or pursuant to section 5739.02, | 6974 |
5739.021, 5739.023, or 5739.026 of the Revised Code as a business | 6975 |
without having a license therefor, except as otherwise provided in | 6976 |
divisions (A)(1), (2), and (3) of this section. | 6977 |
(1) In the dissolution of a partnership by death, the | 6978 |
surviving partner may operate under the license of the partnership | 6979 |
for a period of sixty days. | 6980 |
(2) The heirs or legal representatives of deceased persons, | 6981 |
and receivers and trustees in bankruptcy, appointed by any | 6982 |
competent authority, may operate under the license of the person | 6983 |
so succeeded in possession. | 6984 |
(3) Two or more persons who are not partners may operate a | 6985 |
single place of business under one license. In such case neither | 6986 |
the retirement of any such person from business at that place of | 6987 |
business, nor the entrance of any person, under an existing | 6988 |
arrangement, shall affect the license or require the issuance of a | 6989 |
new license, unless the person retiring from the business is the | 6990 |
individual named on the vendor's license. | 6991 |
Except as otherwise provided in this section, each applicant | 6992 |
for a license shall make out and deliver to the county auditor of | 6993 |
each county in which the applicant desires to engage in business, | 6994 |
upon a blank to be furnished by such auditor for that purpose, a | 6995 |
statement showing the name of the applicant, each place of | 6996 |
business in the county where the applicant will make retail sales, | 6997 |
the nature of the business, and any other information the tax | 6998 |
commissioner reasonably prescribes in the form of a statement | 6999 |
prescribed by the commissioner. | 7000 |
At the time of making the application, the applicant shall | 7001 |
pay into the county treasury a license fee in the sum of | 7002 |
twenty-five dollars for each fixed place of business in the county | 7003 |
that will be the situs of retail sales. Upon receipt of the | 7004 |
application and exhibition of the county treasurer's receipt, | 7005 |
showing the payment of the license fee, the county auditor shall | 7006 |
issue to the applicant a license for each fixed place of business | 7007 |
designated in the application, authorizing the applicant to engage | 7008 |
in business at that location. | 7009 |
(B) If a vendor's identity changes, the vendor shall apply | 7010 |
for a new license. If a vendor wishes to move an existing fixed | 7011 |
place of business to a new location within the same county, the | 7012 |
vendor shall obtain a new vendor's license or submit a request to | 7013 |
the | 7014 |
the new location. When the new location has been verified as being | 7015 |
within the same county, the commissioner shall authorize the | 7016 |
transfer and notify the county auditor of the change of location. | 7017 |
If a vendor wishes to move an existing fixed place of business to | 7018 |
another county, the vendor's license shall not transfer and the | 7019 |
vendor shall obtain a new vendor's license from the county in | 7020 |
which the business is to be located. The form of the license shall | 7021 |
be prescribed by the commissioner. The fees collected shall be | 7022 |
credited to the general fund of the county. If a vendor fails to | 7023 |
notify the commissioner of a change of location of its fixed place | 7024 |
of business or that its business has closed, the commissioner may | 7025 |
cancel the vendor's license if ordinary mail sent to the location | 7026 |
shown on the license is returned because of an undeliverable | 7027 |
address. | 7028 |
(C) The | 7029 |
registration system whereby any vendor may obtain a vendor's | 7030 |
license by submitting to the commissioner a vendor's license | 7031 |
application and a license fee of twenty-five dollars for each | 7032 |
fixed place of business at which the vendor intends to make retail | 7033 |
sales. Under this registration system, the commissioner shall | 7034 |
issue a vendor's license to the applicant on behalf of the county | 7035 |
auditor of the county in which the applicant desires to engage in | 7036 |
business, and shall forward a copy of the application and license | 7037 |
fee to that county. All such license fees received by the | 7038 |
commissioner for the issuance of vendor's licenses shall be | 7039 |
deposited into the vendor's license application fund, which is | 7040 |
hereby created in the state treasury. The commissioner shall | 7041 |
certify to the director of budget and management within ten | 7042 |
business days after the close of a month the license fees to be | 7043 |
transmitted to each county from the vendor's license application | 7044 |
fund for vendor's license applications received by the | 7045 |
commissioner during that month. License fees transmitted to a | 7046 |
county for which payment was not received by the commissioner may | 7047 |
be netted against a future distribution to that county, including | 7048 |
distributions made pursuant to section 5739.21 of the Revised | 7049 |
Code. | 7050 |
A vendor that makes retail sales subject to tax under Chapter | 7051 |
5739. of the Revised Code pursuant to a permit issued by the | 7052 |
division of liquor control shall obtain a vendor's license in the | 7053 |
identical name and for the identical address as shown on the | 7054 |
permit. | 7055 |
Except as otherwise provided in this section, if a vendor has | 7056 |
no fixed place of business and sells from a vehicle, each vehicle | 7057 |
intended to be used within a county constitutes a place of | 7058 |
business for the purpose of this section. | 7059 |
| 7060 |
means any person who makes sales of tangible personal property | 7061 |
from vending machines located on land owned by others, who leases | 7062 |
titled motor vehicles, titled watercraft, or titled outboard | 7063 |
motors, who effectuates leases that are taxed according to | 7064 |
division (A)(2) of section 5739.02 of the Revised Code, or who, in | 7065 |
the usual course of the person's business, transports inventory, | 7066 |
stock of goods, or similar tangible personal property to a | 7067 |
temporary place of business or temporary exhibition, show, fair, | 7068 |
flea market, or similar event in a county in which the person has | 7069 |
no fixed place of business, for the purpose of making retail sales | 7070 |
of such property. A "temporary place of business" means any public | 7071 |
or quasi-public place including, but not limited to, a hotel, | 7072 |
rooming house, storeroom, building, part of a building, tent, | 7073 |
vacant lot, railroad car, or motor vehicle that is temporarily | 7074 |
occupied for the purpose of making retail sales of goods to the | 7075 |
public. A place of business is not temporary if the same person | 7076 |
conducted business at the place continuously for more than six | 7077 |
months or occupied the premises as the person's permanent | 7078 |
residence for more than six months, or if the person intends it to | 7079 |
be a fixed place of business. | 7080 |
Any transient vendor, in lieu of obtaining a vendor's license | 7081 |
under division (A) of this section for counties in which the | 7082 |
transient vendor has no fixed place of business, may apply to the | 7083 |
tax commissioner, on a form prescribed by the commissioner, for a | 7084 |
transient vendor's license. The transient vendor's license | 7085 |
authorizes the transient vendor to make retail sales in any county | 7086 |
in which the transient vendor does not maintain a fixed place of | 7087 |
business. Any holder of a transient vendor's license shall not be | 7088 |
required to obtain a separate vendor's license from the county | 7089 |
auditor in that county. Upon the commissioner's determination that | 7090 |
an applicant is a transient vendor, the applicant shall pay a | 7091 |
license fee in the amount of twenty-five dollars, at which time | 7092 |
the tax commissioner shall issue the license. The tax commissioner | 7093 |
may require a vendor to be licensed as a transient vendor if, in | 7094 |
the opinion of the commissioner, such licensing is necessary for | 7095 |
the efficient administration of the tax. | 7096 |
Any holder of a valid transient vendor's license may make | 7097 |
retail sales at a temporary place of business or temporary | 7098 |
exhibition, show, fair, flea market, or similar event, held | 7099 |
anywhere in the state without complying with any provision of | 7100 |
section 311.37 of the Revised Code. Any holder of a valid vendor's | 7101 |
license may make retail sales as a transient vendor at a temporary | 7102 |
place of business or temporary exhibition, show, fair, flea | 7103 |
market, or similar event held in any county in which the vendor | 7104 |
maintains a fixed place of business for which the vendor holds a | 7105 |
vendor's license without obtaining a transient vendor's license. | 7106 |
| 7107 |
7108 | |
7109 | |
7110 |
| 7111 |
7112 | |
7113 | |
7114 | |
7115 | |
7116 |
| 7117 |
7118 | |
7119 | |
7120 | |
7121 | |
7122 | |
7123 | |
7124 |
| 7125 |
7126 | |
7127 | |
7128 | |
7129 | |
7130 | |
7131 | |
7132 |
| 7133 |
7134 |
| 7135 |
7136 | |
7137 |
| 7138 |
7139 | |
7140 |
| 7141 |
7142 | |
7143 |
| 7144 |
7145 |
| 7146 |
7147 | |
7148 | |
7149 | |
7150 | |
7151 | |
7152 | |
7153 | |
7154 | |
7155 | |
7156 | |
7157 | |
7158 | |
7159 |
(E) Any | 7160 |
this section shall display the license or a copy of it | 7161 |
prominently, in plain view, at every place of business of the | 7162 |
7163 |
(F) No owner, organizer, or promoter who operates a fair, | 7164 |
flea market, show, exhibition, convention, or similar event at | 7165 |
which transient vendors are present shall fail to keep a | 7166 |
comprehensive record of all such vendors, listing the vendor's | 7167 |
name, permanent address, vendor's license number, and the type of | 7168 |
goods sold. Such records shall be kept for four years and shall be | 7169 |
open to inspection by the | 7170 |
(G) The commissioner may issue additional types of licenses | 7171 |
if required to efficiently administer the tax imposed by this | 7172 |
chapter. | 7173 |
Sec. 5741.08. If modification of a county's jurisdictional | 7174 |
boundaries or a transit authority's territory results in a change | 7175 |
in the tax rate levied under section 5741.021, 5741.022, or | 7176 |
5741.023 of the Revised Code, the tax commissioner, within thirty | 7177 |
days of such change, shall notify any seller | 7178 |
7179 | |
7180 | |
service provider, if the seller has selected one, of such change. | 7181 |
The rate change shall not apply until the first day of a calendar | 7182 |
quarter following the expiration of sixty days from the date of | 7183 |
notice by the | 7184 |
Sec. 5743.20. No person shall sell any cigarettes both as a | 7185 |
retail dealer and as a wholesale dealer at the same place of | 7186 |
business. No person other than a licensed wholesale dealer shall | 7187 |
sell cigarettes to a licensed retail dealer. No retail dealer | 7188 |
shall purchase cigarettes from any person other than a licensed | 7189 |
wholesale dealer. | 7190 |
Subject to section 5743.031 of the Revised Code, a licensed | 7191 |
wholesale dealer may not sell cigarettes to any person in this | 7192 |
state other than a licensed retail dealer, except a licensed | 7193 |
wholesale dealer may sell cigarettes to another licensed wholesale | 7194 |
dealer if the tax commissioner has authorized the sale of the | 7195 |
cigarettes between those wholesale dealers and the wholesale | 7196 |
dealer that sells the cigarettes received them directly from a | 7197 |
licensed manufacturer or licensed importer. | 7198 |
The tax commissioner shall adopt rules governing sales of | 7199 |
cigarettes between licensed wholesale dealers, including rules | 7200 |
establishing criteria for authorizing such sales. | 7201 |
No manufacturer or importer shall sell cigarettes to any | 7202 |
person in this state other than to a licensed wholesale dealer or | 7203 |
licensed importer. No importer shall purchase cigarettes from any | 7204 |
person other than a licensed manufacturer or licensed importer. | 7205 |
A retail dealer may purchase other tobacco products only from | 7206 |
a licensed distributor. A licensed distributor may sell tobacco | 7207 |
products only to a retail dealer, except a licensed distributor | 7208 |
may sell tobacco products to another licensed distributor if the | 7209 |
tax commissioner has authorized the sale of the tobacco products | 7210 |
between those distributors and the distributor that sells the | 7211 |
tobacco products received them directly from a manufacturer or | 7212 |
importer of tobacco products. | 7213 |
The tax commissioner may adopt rules governing sales of | 7214 |
tobacco products between licensed distributors, including rules | 7215 |
establishing criteria for authorizing such sales. | 7216 |
The identities of cigarette manufacturers and importers, | 7217 |
licensed cigarette wholesalers, licensed distributors of other | 7218 |
tobacco products, and registered manufacturers | 7219 |
7220 | |
disclosure. The tax commissioner shall maintain an alphabetical | 7221 |
list of all such manufacturers, importers, wholesalers, and | 7222 |
distributors, | 7223 |
accessible to the public through the internet, and shall | 7224 |
periodically update the web site posting. | 7225 |
As used in this section, "licensed" means the manufacturer, | 7226 |
importer, wholesale dealer, or distributor holds a current and | 7227 |
valid license issued under section 5743.15 or 5743.61 of the | 7228 |
Revised Code, and "registered" means registered with the
| 7229 |
commissioner under section 5743.66 of the Revised Code. | 7230 |
Sec. 5743.61. (A) Except as otherwise provided in this | 7231 |
division, no distributor shall engage in the business of | 7232 |
distributing tobacco products within this state without having a | 7233 |
license issued by the department of taxation to engage in that | 7234 |
business. On the dissolution of a partnership by death, the | 7235 |
surviving partner may operate under the license of the partnership | 7236 |
until the expiration of the license, and the heirs or legal | 7237 |
representatives of deceased persons, and receivers and trustees in | 7238 |
bankruptcy appointed by any competent authority, may operate under | 7239 |
the license of the person succeeded in possession by the heir, | 7240 |
representative, receiver, or trustee in bankruptcy if the partner | 7241 |
or successor notifies the department of taxation of the | 7242 |
dissolution or succession within thirty days after the dissolution | 7243 |
or succession. | 7244 |
(B)(1) Each applicant for a license to engage in the business | 7245 |
of distributing tobacco products, annually, on or before the first | 7246 |
day of February, shall make and deliver to the tax commissioner, | 7247 |
upon a form furnished by the commissioner for that purpose, a | 7248 |
statement showing the name of the applicant, each physical place | 7249 |
from which the applicant distributes to distributors, retail | 7250 |
dealers, or wholesale dealers, and any other information the | 7251 |
commissioner considers necessary for the administration of | 7252 |
sections 5743.51 to 5743.66 of the Revised Code. | 7253 |
(2) At the time of making the license application, the | 7254 |
applicant shall pay an application fee of one thousand dollars for | 7255 |
each place listed on the application where the applicant proposes | 7256 |
to carry on that business. The fee charged for the application | 7257 |
shall accompany the application and shall be made payable to the | 7258 |
treasurer of state for deposit into the cigarette tax enforcement | 7259 |
fund. | 7260 |
(3) Upon receipt of the application and payment of any | 7261 |
licensing fee required by this section, the commissioner shall | 7262 |
issue to the applicant a license for each place of distribution | 7263 |
designated in the application authorizing the applicant to engage | 7264 |
in business at that location for one year commencing on the first | 7265 |
day of February. For licenses issued after the first day of | 7266 |
February, the license application fee shall be reduced | 7267 |
proportionately by the remainder of the twelve-month period for | 7268 |
which the license is issued, except that the application fee | 7269 |
required to be paid under this section shall be not less than two | 7270 |
hundred dollars. If the original license is lost, destroyed, or | 7271 |
defaced, a duplicate license may be obtained from the commissioner | 7272 |
upon payment of a license replacement fee of twenty-five dollars. | 7273 |
(C) The holder of a tobacco products license may transfer the | 7274 |
license to a place of business on condition that the licensee's | 7275 |
ownership and business structure remains unchanged and the | 7276 |
licensee applies to the commissioner for the transfer on a form | 7277 |
issued by the commissioner, and pays a transfer fee of twenty-five | 7278 |
dollars. | 7279 |
(D) If a distributor fails to file forms as required under | 7280 |
Chapter 1346. or section 5743.52 of the Revised Code or pay the | 7281 |
tax due for two consecutive periods or three periods during any | 7282 |
twelve-month period, the commissioner may suspend the license | 7283 |
issued to the distributor under this section. The suspension is | 7284 |
effective ten days after the commissioner notifies the distributor | 7285 |
of the suspension in writing personally or by certified mail. The | 7286 |
commissioner shall lift the suspension when the distributor files | 7287 |
the delinquent forms and pays the tax due, including any | 7288 |
penalties, interest, and additional charges. The commissioner may | 7289 |
refuse to issue the annual renewal of the license required by this | 7290 |
section and may refuse to issue a new license for the same | 7291 |
location until all delinquent forms are filed and outstanding | 7292 |
taxes are paid. This division does not apply to any unpaid or | 7293 |
underpaid tax liability that is the subject of a petition or | 7294 |
appeal filed pursuant to section 5743.56, 5717.02, or 5717.04 of | 7295 |
the Revised Code. | 7296 |
(E)(1) The tax commissioner may impose a penalty of up to one | 7297 |
thousand dollars on any person found to be engaging in the | 7298 |
business of distributing tobacco products without a license as | 7299 |
required by this section. | 7300 |
(2) Any person engaging in the business of distributing | 7301 |
tobacco products without a license as required by this section | 7302 |
shall comply with divisions (B)(1) and (2) of this section within | 7303 |
ten days after being notified of the requirement to do so. Failure | 7304 |
to comply with division (E)(2) of this section subjects a person | 7305 |
to penalties imposed under section 5743.99 of the Revised Code. | 7306 |
Sec. 5743.66. (A) Each manufacturer | 7307 |
of tobacco products shall register with the tax commissioner | 7308 |
before it sells or distributes tobacco products to distributors in | 7309 |
this state, and, upon the request of the | 7310 |
provide complete information on sales made to distributors in this | 7311 |
state and a current list of prices charged for tobacco products | 7312 |
sold to distributors in this state. | 7313 |
(B) On or before the last day of each month, every | 7314 |
manufacturer | 7315 |
file a report with the commissioner listing all sales of tobacco | 7316 |
products to distributors located in this state during the | 7317 |
preceding month and any other information the commissioner finds | 7318 |
necessary for the proper administration of sections 5743.51 to | 7319 |
5743.66 of the Revised Code. | 7320 |
Sec. 5747.082. (A) As used in this section: | 7321 |
(1) "Electronic technology" means electronic technology | 7322 |
acceptable to the tax commissioner under division (B) of this | 7323 |
section. | 7324 |
(2) "Original tax return" means any report, return, or other | 7325 |
tax document required to be filed under this chapter for the | 7326 |
purpose of reporting the taxes due under, and withholdings | 7327 |
required by, this chapter. "Original tax return" does not include | 7328 |
an amended return or any declaration or form required by or filed | 7329 |
in connection with section 5747.09 of the Revised Code. | 7330 |
(3) "Related member" has the same meaning as in section | 7331 |
5733.042 of the Revised Code. | 7332 |
(4) "Tax return preparer" means any person that operates a | 7333 |
business that prepares, or directly or indirectly employs another | 7334 |
person to prepare, for a taxpayer an original tax return in | 7335 |
exchange for compensation or remuneration from the taxpayer or the | 7336 |
taxpayer's related member. With respect to the preparation of a | 7337 |
return or application for refund under this chapter, "tax return | 7338 |
preparer" does not include an individual who performs only one or | 7339 |
more of the following activities: | 7340 |
(a) Furnishes typing, reproducing, or other mechanical | 7341 |
assistance; | 7342 |
(b) Prepares an application for refund or a return on behalf | 7343 |
of an employer by whom the individual is regularly and | 7344 |
continuously employed, or on behalf of an officer or employee of | 7345 |
that employer; | 7346 |
(c) Prepares as a fiduciary an application for refund or a | 7347 |
return; | 7348 |
(d) Prepares an application for refund or a return for a | 7349 |
taxpayer in response to a notice of deficiency issued to the | 7350 |
taxpayer or the taxpayer's related member, or in response to a | 7351 |
waiver of restriction after the commencement of an audit of the | 7352 |
taxpayer or the taxpayer's related member. | 7353 |
(B) Divisions (C) and (D) of this section apply to the filing | 7354 |
of original tax returns that are due in a calendar year only if | 7355 |
the tax commissioner, by the last day of the calendar year | 7356 |
immediately preceding the calendar year in which such returns are | 7357 |
due, has published on the department of taxation's official | 7358 |
internet web site at least one method of electronic technology | 7359 |
acceptable to the commissioner for filing such returns. | 7360 |
(C) A tax return preparer that prepares more than | 7361 |
seventy-five original tax returns during any calendar year that | 7362 |
7363 | |
that prepares more than eleven original tax returns during any | 7364 |
calendar year that begins on or after January 1, 2013, shall | 7365 |
7366 | |
the tax commissioner all original tax returns prepared by the tax | 7367 |
return preparer. This division does not apply to a tax return | 7368 |
preparer | 7369 |
2013, if, during the previous calendar year, the tax return | 7370 |
preparer prepared no more than twenty-five original tax returns. | 7371 |
This division does not apply to a tax return preparer in any | 7372 |
calendar year that begins on or after January 1, 2013, if, during | 7373 |
the previous calendar year, the tax return preparer prepared not | 7374 |
more than ten original tax returns. | 7375 |
(D) If a tax return preparer required by this section to | 7376 |
submit original tax returns by electronic technology files an | 7377 |
original tax return by some means other than by electronic | 7378 |
technology, the tax commissioner shall impose a penalty of fifty | 7379 |
dollars for each return, in excess of seventy-five in | 7380 |
year 2010, 2011, or 2012, or in excess of eleven in any calendar | 7381 |
year thereafter, that is not filed by electronic technology. Upon | 7382 |
good cause shown by the tax return preparer, the tax commissioner | 7383 |
may waive all or any portion of the penalty or may refund all or | 7384 |
any portion of the penalty the tax return preparer has paid. | 7385 |
Sec. 5751.01. As used in this chapter: | 7386 |
(A) "Person" means, but is not limited to, individuals, | 7387 |
combinations of individuals of any form, receivers, assignees, | 7388 |
trustees in bankruptcy, firms, companies, joint-stock companies, | 7389 |
business trusts, estates, partnerships, limited liability | 7390 |
partnerships, limited liability companies, associations, joint | 7391 |
ventures, clubs, societies, for-profit corporations, S | 7392 |
corporations, qualified subchapter S subsidiaries, qualified | 7393 |
subchapter S trusts, trusts, entities that are disregarded for | 7394 |
federal income tax purposes, and any other entities. | 7395 |
(B) "Consolidated elected taxpayer" means a group of two or | 7396 |
more persons treated as a single taxpayer for purposes of this | 7397 |
chapter as the result of an election made under section 5751.011 | 7398 |
of the Revised Code. | 7399 |
(C) "Combined taxpayer" means a group of two or more persons | 7400 |
treated as a single taxpayer for purposes of this chapter under | 7401 |
section 5751.012 of the Revised Code. | 7402 |
(D) "Taxpayer" means any person, or any group of persons in | 7403 |
the case of a consolidated elected taxpayer or combined taxpayer | 7404 |
treated as one taxpayer, required to register or pay tax under | 7405 |
this chapter. "Taxpayer" does not include excluded persons. | 7406 |
(E) "Excluded person" means any of the following: | 7407 |
(1) Any person with not more than one hundred fifty thousand | 7408 |
dollars of taxable gross receipts during the calendar year. | 7409 |
Division (E)(1) of this section does not apply to a person that is | 7410 |
a member of a consolidated elected taxpayer; | 7411 |
(2) A public utility that paid the excise tax imposed by | 7412 |
section 5727.24 or 5727.30 of the Revised Code based on one or | 7413 |
more measurement periods that include the entire tax period under | 7414 |
this chapter, except that a public utility that is a combined | 7415 |
company is a taxpayer with regard to the following gross receipts: | 7416 |
(a) Taxable gross receipts directly attributed to a public | 7417 |
utility activity, but not directly attributed to an activity that | 7418 |
is subject to the excise tax imposed by section 5727.24 or 5727.30 | 7419 |
of the Revised Code; | 7420 |
(b) Taxable gross receipts that cannot be directly attributed | 7421 |
to any activity, multiplied by a fraction whose numerator is the | 7422 |
taxable gross receipts described in division (E)(2)(a) of this | 7423 |
section and whose denominator is the total taxable gross receipts | 7424 |
that can be directly attributed to any activity; | 7425 |
(c) Except for any differences resulting from the use of an | 7426 |
accrual basis method of accounting for purposes of determining | 7427 |
gross receipts under this chapter and the use of the cash basis | 7428 |
method of accounting for purposes of determining gross receipts | 7429 |
under section 5727.24 of the Revised Code, the gross receipts | 7430 |
directly attributed to the activity of a natural gas company shall | 7431 |
be determined in a manner consistent with division (D) of section | 7432 |
5727.03 of the Revised Code. | 7433 |
As used in division (E)(2) of this section, "combined | 7434 |
company" and "public utility" have the same meanings as in section | 7435 |
5727.01 of the Revised Code. | 7436 |
(3) A financial institution, as defined in section 5725.01 of | 7437 |
the Revised Code, that paid the corporation franchise tax charged | 7438 |
by division (D) of section 5733.06 of the Revised Code based on | 7439 |
one or more taxable years that include the entire tax period under | 7440 |
this chapter; | 7441 |
(4) A dealer in intangibles, as defined in section 5725.01 of | 7442 |
the Revised Code, that paid the dealer in intangibles tax levied | 7443 |
by division (D) of section 5707.03 of the Revised Code based on | 7444 |
one or more measurement periods that include the entire tax period | 7445 |
under this chapter; | 7446 |
(5) A financial holding company as defined in the "Bank | 7447 |
Holding Company Act," 12 U.S.C. 1841(p); | 7448 |
(6) A bank holding company as defined in the "Bank Holding | 7449 |
Company Act," 12 U.S.C. 1841(a); | 7450 |
(7) A savings and loan holding company as defined in the | 7451 |
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging | 7452 |
only in activities or investments permissible for a financial | 7453 |
holding company under 12 U.S.C. 1843(k); | 7454 |
(8) A person directly or indirectly owned by one or more | 7455 |
financial institutions, financial holding companies, bank holding | 7456 |
companies, or savings and loan holding companies described in | 7457 |
division (E)(3), (5), (6), or (7) of this section that is engaged | 7458 |
in activities permissible for a financial holding company under 12 | 7459 |
U.S.C. 1843(k), except that any such person held pursuant to | 7460 |
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12 | 7461 |
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person | 7462 |
directly or indirectly owned by one or more insurance companies | 7463 |
described in division (E)(9) of this section that is authorized to | 7464 |
do the business of insurance in this state. | 7465 |
For the purposes of division (E)(8) of this section, a person | 7466 |
owns another person under the following circumstances: | 7467 |
(a) In the case of corporations issuing capital stock, one | 7468 |
corporation owns another corporation if it owns fifty per cent or | 7469 |
more of the other corporation's capital stock with current voting | 7470 |
rights; | 7471 |
(b) In the case of a limited liability company, one person | 7472 |
owns the company if that person's membership interest, as defined | 7473 |
in section 1705.01 of the Revised Code, is fifty per cent or more | 7474 |
of the combined membership interests of all persons owning such | 7475 |
interests in the company; | 7476 |
(c) In the case of a partnership, trust, or other | 7477 |
unincorporated business organization other than a limited | 7478 |
liability company, one person owns the organization if, under the | 7479 |
articles of organization or other instrument governing the affairs | 7480 |
of the organization, that person has a beneficial interest in the | 7481 |
organization's profits, surpluses, losses, or distributions of | 7482 |
fifty per cent or more of the combined beneficial interests of all | 7483 |
persons having such an interest in the organization; | 7484 |
(d) In the case of multiple ownership, the ownership | 7485 |
interests of more than one person may be aggregated to meet the | 7486 |
fifty per cent ownership tests in this division only when each | 7487 |
such owner is described in division (E)(3), (5), (6), or (7) of | 7488 |
this section and is engaged in activities permissible for a | 7489 |
financial holding company under 12 U.S.C. 1843(k) or is a person | 7490 |
directly or indirectly owned by one or more insurance companies | 7491 |
described in division (E)(9) of this section that is authorized to | 7492 |
do the business of insurance in this state. | 7493 |
(9) A domestic insurance company or foreign insurance | 7494 |
company, as defined in section 5725.01 of the Revised Code, that | 7495 |
paid the insurance company premiums tax imposed by section 5725.18 | 7496 |
or Chapter 5729. of the Revised Code, or an unauthorized insurance | 7497 |
company whose gross premiums are subject to tax under section | 7498 |
3905.36 of the Revised Code based on one or more measurement | 7499 |
periods that include the entire tax period under this chapter; | 7500 |
(10) A person that solely facilitates or services one or more | 7501 |
securitizations or similar transactions for any person described | 7502 |
in division (E)(3), (5), (6), (7), (8), or (9) of this section. | 7503 |
For purposes of this division, "securitization" means transferring | 7504 |
one or more assets to one or more persons and then issuing | 7505 |
securities backed by the right to receive payment from the asset | 7506 |
or assets so transferred. | 7507 |
(11) Except as otherwise provided in this division, a | 7508 |
pre-income tax trust as defined in division (FF)(4) of section | 7509 |
5747.01 of the Revised Code and any pass-through entity of which | 7510 |
such pre-income tax trust owns or controls, directly, indirectly, | 7511 |
or constructively through related interests, more than five per | 7512 |
cent of the ownership or equity interests. If the pre-income tax | 7513 |
trust has made a qualifying pre-income tax trust election under | 7514 |
division (FF)(3) of section 5747.01 of the Revised Code, then the | 7515 |
trust and the pass-through entities of which it owns or controls, | 7516 |
directly, indirectly, or constructively through related interests, | 7517 |
more than five per cent of the ownership or equity interests, | 7518 |
shall not be excluded persons for purposes of the tax imposed | 7519 |
under section 5751.02 of the Revised Code. | 7520 |
(12) Nonprofit organizations or the state and its agencies, | 7521 |
instrumentalities, or political subdivisions. | 7522 |
(F) Except as otherwise provided in divisions (F)(2), (3), | 7523 |
and (4) of this section, "gross receipts" means the total amount | 7524 |
realized by a person, without deduction for the cost of goods sold | 7525 |
or other expenses incurred, that contributes to the production of | 7526 |
gross income of the person, including the fair market value of any | 7527 |
property and any services received, and any debt transferred or | 7528 |
forgiven as consideration. | 7529 |
(1) The following are examples of gross receipts: | 7530 |
(a) Amounts realized from the sale, exchange, or other | 7531 |
disposition of the taxpayer's property to or with another; | 7532 |
(b) Amounts realized from the taxpayer's performance of | 7533 |
services for another; | 7534 |
(c) Amounts realized from another's use or possession of the | 7535 |
taxpayer's property or capital; | 7536 |
(d) Any combination of the foregoing amounts. | 7537 |
(2) "Gross receipts" excludes the following amounts: | 7538 |
(a) Interest income except interest on credit sales; | 7539 |
(b) Dividends and distributions from corporations, and | 7540 |
distributive or proportionate shares of receipts and income from a | 7541 |
pass-through entity as defined under section 5733.04 of the | 7542 |
Revised Code; | 7543 |
(c) Receipts from the sale, exchange, or other disposition of | 7544 |
an asset described in section 1221 or 1231 of the Internal Revenue | 7545 |
Code, without regard to the length of time the person held the | 7546 |
asset. Notwithstanding section 1221 of the Internal Revenue Code, | 7547 |
receipts from hedging transactions also are excluded to the extent | 7548 |
the transactions are entered into primarily to protect a financial | 7549 |
position, such as managing the risk of exposure to (i) foreign | 7550 |
currency fluctuations that affect assets, liabilities, profits, | 7551 |
losses, equity, or investments in foreign operations; (ii) | 7552 |
interest rate fluctuations; or (iii) commodity price fluctuations. | 7553 |
As used in division (F)(2)(c) of this section, "hedging | 7554 |
transaction" has the same meaning as used in section 1221 of the | 7555 |
Internal Revenue Code and also includes transactions accorded | 7556 |
hedge accounting treatment under statement of financial accounting | 7557 |
standards number 133 of the financial accounting standards board. | 7558 |
For the purposes of division (F)(2)(c) of this section, the actual | 7559 |
transfer of title of real or tangible personal property to another | 7560 |
entity is not a hedging transaction. | 7561 |
(d) Proceeds received attributable to the repayment, | 7562 |
maturity, or redemption of the principal of a loan, bond, mutual | 7563 |
fund, certificate of deposit, or marketable instrument; | 7564 |
(e) The principal amount received under a repurchase | 7565 |
agreement or on account of any transaction properly characterized | 7566 |
as a loan to the person; | 7567 |
(f) Contributions received by a trust, plan, or other | 7568 |
arrangement, any of which is described in section 501(a) of the | 7569 |
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter | 7570 |
1, Subchapter (D) of the Internal Revenue Code applies; | 7571 |
(g) Compensation, whether current or deferred, and whether in | 7572 |
cash or in kind, received or to be received by an employee, former | 7573 |
employee, or the employee's legal successor for services rendered | 7574 |
to or for an employer, including reimbursements received by or for | 7575 |
an individual for medical or education expenses, health insurance | 7576 |
premiums, or employee expenses, or on account of a dependent care | 7577 |
spending account, legal services plan, any cafeteria plan | 7578 |
described in section 125 of the Internal Revenue Code, or any | 7579 |
similar employee reimbursement; | 7580 |
(h) Proceeds received from the issuance of the taxpayer's own | 7581 |
stock, options, warrants, puts, or calls, or from the sale of the | 7582 |
taxpayer's treasury stock; | 7583 |
(i) Proceeds received on the account of payments from | 7584 |
insurance policies, except those proceeds received for the loss of | 7585 |
business revenue; | 7586 |
(j) Gifts or charitable contributions received; membership | 7587 |
dues received by trade, professional, homeowners', or condominium | 7588 |
associations; and payments received for educational courses, | 7589 |
meetings, meals, or similar payments to a trade, professional, or | 7590 |
other similar association; and fundraising receipts received by | 7591 |
any person when any excess receipts are donated or used | 7592 |
exclusively for charitable purposes; | 7593 |
(k) Damages received as the result of litigation in excess of | 7594 |
amounts that, if received without litigation, would be gross | 7595 |
receipts; | 7596 |
(l) Property, money, and other amounts received or acquired | 7597 |
by an agent on behalf of another in excess of the agent's | 7598 |
commission, fee, or other remuneration; | 7599 |
(m) Tax refunds, other tax benefit recoveries, and | 7600 |
reimbursements for the tax imposed under this chapter made by | 7601 |
entities that are part of the same combined taxpayer or | 7602 |
consolidated elected taxpayer group, and reimbursements made by | 7603 |
entities that are not members of a combined taxpayer or | 7604 |
consolidated elected taxpayer group that are required to be made | 7605 |
for economic parity among multiple owners of an entity whose tax | 7606 |
obligation under this chapter is required to be reported and paid | 7607 |
entirely by one owner, pursuant to the requirements of sections | 7608 |
5751.011 and 5751.012 of the Revised Code; | 7609 |
(n) Pension reversions; | 7610 |
(o) Contributions to capital; | 7611 |
(p) Sales or use taxes collected as a vendor or an | 7612 |
out-of-state seller on behalf of the taxing jurisdiction from a | 7613 |
consumer or other taxes the taxpayer is required by law to collect | 7614 |
directly from a purchaser and remit to a local, state, or federal | 7615 |
tax authority; | 7616 |
(q) In the case of receipts from the sale of cigarettes or | 7617 |
tobacco products by a wholesale dealer, retail dealer, | 7618 |
distributor, manufacturer, or seller, all as defined in section | 7619 |
5743.01 of the Revised Code, an amount equal to the federal and | 7620 |
state excise taxes paid by any person on or for such cigarettes or | 7621 |
tobacco products under subtitle E of the Internal Revenue Code or | 7622 |
Chapter 5743. of the Revised Code; | 7623 |
(r) In the case of receipts from the sale of motor fuel by a | 7624 |
licensed motor fuel dealer, licensed retail dealer, or licensed | 7625 |
permissive motor fuel dealer, all as defined in section 5735.01 of | 7626 |
the Revised Code, an amount equal to federal and state excise | 7627 |
taxes paid by any person on such motor fuel under section 4081 of | 7628 |
the Internal Revenue Code or Chapter 5735. of the Revised Code; | 7629 |
(s) In the case of receipts from the sale of beer or | 7630 |
intoxicating liquor, as defined in section 4301.01 of the Revised | 7631 |
Code, by a person holding a permit issued under Chapter 4301. or | 7632 |
4303. of the Revised Code, an amount equal to federal and state | 7633 |
excise taxes paid by any person on or for such beer or | 7634 |
intoxicating liquor under subtitle E of the Internal Revenue Code | 7635 |
or Chapter 4301. or 4305. of the Revised Code; | 7636 |
(t) Receipts realized by a new motor vehicle dealer or used | 7637 |
motor vehicle dealer, as defined in section 4517.01 of the Revised | 7638 |
Code, from the sale or other transfer of a motor vehicle, as | 7639 |
defined in that section, to another motor vehicle dealer for the | 7640 |
purpose of resale by the transferee motor vehicle dealer, but only | 7641 |
if the sale or other transfer was based upon the transferee's need | 7642 |
to meet a specific customer's preference for a motor vehicle; | 7643 |
(u) Receipts from a financial institution described in | 7644 |
division (E)(3) of this section for services provided to the | 7645 |
financial institution in connection with the issuance, processing, | 7646 |
servicing, and management of loans or credit accounts, if such | 7647 |
financial institution and the recipient of such receipts have at | 7648 |
least fifty per cent of their ownership interests owned or | 7649 |
controlled, directly or constructively through related interests, | 7650 |
by common owners; | 7651 |
(v) Receipts realized from administering anti-neoplastic | 7652 |
drugs and other cancer chemotherapy, biologicals, therapeutic | 7653 |
agents, and supportive drugs in a physician's office to patients | 7654 |
with cancer; | 7655 |
(w) Funds received or used by a mortgage broker that is not a | 7656 |
dealer in intangibles, other than fees or other consideration, | 7657 |
pursuant to a table-funding mortgage loan or warehouse-lending | 7658 |
mortgage loan. Terms used in division (F)(2)(w) of this section | 7659 |
have the same meanings as in section 1322.01 of the Revised Code, | 7660 |
except "mortgage broker" means a person assisting a buyer in | 7661 |
obtaining a mortgage loan for a fee or other consideration paid by | 7662 |
the buyer or a lender, or a person engaged in table-funding or | 7663 |
warehouse-lending mortgage loans that are first lien mortgage | 7664 |
loans. | 7665 |
(x) Property, money, and other amounts received by a | 7666 |
professional employer organization, as defined in section 4125.01 | 7667 |
of the Revised Code, from a client employer, as defined in that | 7668 |
section, in excess of the administrative fee charged by the | 7669 |
professional employer organization to the client employer; | 7670 |
(y) In the case of amounts retained as commissions by a | 7671 |
permit holder under Chapter 3769. of the Revised Code, an amount | 7672 |
equal to the amounts specified under that chapter that must be | 7673 |
paid to or collected by the tax commissioner as a tax and the | 7674 |
amounts specified under that chapter to be used as purse money; | 7675 |
(z) Qualifying distribution center receipts. | 7676 |
(i) For purposes of division (F)(2)(z) of this section: | 7677 |
(I) "Qualifying distribution center receipts" means receipts | 7678 |
of a supplier from qualified property that is delivered to a | 7679 |
qualified distribution center, multiplied by a quantity that | 7680 |
equals one minus the Ohio delivery percentage. | 7681 |
(II) "Qualified property" means tangible personal property | 7682 |
delivered to a qualified distribution center that is shipped to | 7683 |
that qualified distribution center solely for further shipping by | 7684 |
the qualified distribution center to another location in this | 7685 |
state or elsewhere. "Further shipping" includes storing and | 7686 |
repackaging such property into smaller or larger bundles, so long | 7687 |
as such property is not subject to further manufacturing or | 7688 |
processing. | 7689 |
(III) "Qualified distribution center" means a warehouse or | 7690 |
other similar facility in this state that, for the qualifying | 7691 |
year, is operated by a person that is not part of a combined | 7692 |
taxpayer group and that has a qualifying certificate. However, all | 7693 |
warehouses or other similar facilities that are operated by | 7694 |
persons in the same taxpayer group and that are located within one | 7695 |
mile of each other shall be treated as one qualified distribution | 7696 |
center. | 7697 |
(IV) "Qualifying year" means the calendar year to which the | 7698 |
qualifying certificate applies. | 7699 |
(V) "Qualifying period" means the period of the first day of | 7700 |
July of the second year preceding the qualifying year through the | 7701 |
thirtieth day of June of the year preceding the qualifying year. | 7702 |
(VI) "Qualifying certificate" means the certificate issued by | 7703 |
the tax commissioner after the operator of a distribution center | 7704 |
files an annual application with the commissioner. The application | 7705 |
and annual fee shall be filed and paid for each qualified | 7706 |
distribution center on or before the first day of September before | 7707 |
the qualifying year or within forty-five days after the | 7708 |
distribution center opens, whichever is later. | 7709 |
The applicant must substantiate to the commissioner's | 7710 |
satisfaction that, for the qualifying period, all persons | 7711 |
operating the distribution center have more than fifty per cent of | 7712 |
the cost of the qualified property shipped to a location such that | 7713 |
it would be sitused outside this state under the provisions of | 7714 |
division (E) of section 5751.033 of the Revised Code. The | 7715 |
applicant must also substantiate that the distribution center | 7716 |
cumulatively had costs from its suppliers equal to or exceeding | 7717 |
five hundred million dollars during the qualifying period. (For | 7718 |
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier" | 7719 |
excludes any person that is part of the consolidated elected | 7720 |
taxpayer group, if applicable, of the operator of the qualified | 7721 |
distribution center.) The commissioner may require the applicant | 7722 |
to have an independent certified public accountant certify that | 7723 |
the calculation of the minimum thresholds required for a qualified | 7724 |
distribution center by the operator of a distribution center has | 7725 |
been made in accordance with generally accepted accounting | 7726 |
principles. The commissioner shall issue or deny the issuance of a | 7727 |
certificate within sixty days after the receipt of the | 7728 |
application. A denial is subject to appeal under section 5717.02 | 7729 |
of the Revised Code. If the operator files a timely appeal under | 7730 |
section 5717.02 of the Revised Code, the operator shall be granted | 7731 |
a qualifying certificate, provided that the operator is liable for | 7732 |
any tax, interest, or penalty upon amounts claimed as qualifying | 7733 |
distribution center receipts, other than those receipts exempt | 7734 |
under division (C)(1) of section 5751.011 of the Revised Code, | 7735 |
that would have otherwise not been owed by its suppliers if the | 7736 |
qualifying certificate was valid. | 7737 |
(VII) "Ohio delivery percentage" means the proportion of the | 7738 |
total property delivered to a destination inside Ohio from the | 7739 |
qualified distribution center during the qualifying period | 7740 |
compared with total deliveries from such distribution center | 7741 |
everywhere during the qualifying period. | 7742 |
(ii) If the distribution center is new and was not open for | 7743 |
the entire qualifying period, the operator of the distribution | 7744 |
center may request that the commissioner grant a qualifying | 7745 |
certificate. If the certificate is granted and it is later | 7746 |
determined that more than fifty per cent of the qualified property | 7747 |
during that year was not shipped to a location such that it would | 7748 |
be sitused outside of this state under the provisions of division | 7749 |
(E) of section 5751.033 of the Revised Code or if it is later | 7750 |
determined that the person that operates the distribution center | 7751 |
had average monthly costs from its suppliers of less than forty | 7752 |
million dollars during that year, then the operator of the | 7753 |
distribution center shall be liable for any tax, interest, or | 7754 |
penalty upon amounts claimed as qualifying distribution center | 7755 |
receipts, other than those receipts exempt under division (C)(1) | 7756 |
of section 5751.011 of the Revised Code, that would have not | 7757 |
otherwise been owed by its suppliers during the qualifying year if | 7758 |
the qualifying certificate was valid. (For purposes of division | 7759 |
(F)(2)(z)(ii) of this section, "supplier" excludes any person that | 7760 |
is part of the consolidated elected taxpayer group, if applicable, | 7761 |
of the operator of the qualified distribution center.) | 7762 |
(iii) When filing an application for a qualifying certificate | 7763 |
under division (F)(2)(z)(i)(VI) of this section, the operator of a | 7764 |
qualified distribution center also shall provide documentation, as | 7765 |
the commissioner requires, for the commissioner to ascertain the | 7766 |
Ohio delivery percentage. The commissioner, upon issuing the | 7767 |
qualifying certificate, also shall certify the Ohio delivery | 7768 |
percentage. The operator of the qualified distribution center may | 7769 |
appeal the commissioner's certification of the Ohio delivery | 7770 |
percentage in the same manner as an appeal is taken from the | 7771 |
denial of a qualifying certificate under division (F)(2)(z)(i)(VI) | 7772 |
of this section. | 7773 |
Within thirty days after all appeals have been exhausted, the | 7774 |
operator of the qualified distribution center shall notify the | 7775 |
affected suppliers of qualified property that such suppliers are | 7776 |
required to file, within sixty days after receiving notice from | 7777 |
the operator of the qualified distribution center, amended reports | 7778 |
for the impacted calendar quarter or quarters or calendar year, | 7779 |
whichever the case may be. Any additional tax liability or tax | 7780 |
overpayment shall be subject to interest but shall not be subject | 7781 |
to the imposition of any penalty so long as the amended returns | 7782 |
are timely filed. The supplier of tangible personal property | 7783 |
delivered to the qualified distribution center shall include in | 7784 |
its report of taxable gross receipts the receipts from the total | 7785 |
sales of property delivered to the qualified distribution center | 7786 |
for the calendar quarter or calendar year, whichever the case may | 7787 |
be, multiplied by the Ohio delivery percentage for the qualifying | 7788 |
year. Nothing in division (F)(2)(z)(iii) of this section shall be | 7789 |
construed as imposing liability on the operator of a qualified | 7790 |
distribution center for the tax imposed by this chapter arising | 7791 |
from any change to the Ohio delivery percentage. | 7792 |
(iv) In the case where the distribution center is new and not | 7793 |
open for the entire qualifying period, the operator shall make a | 7794 |
good faith estimate of an Ohio delivery percentage for use by | 7795 |
suppliers in their reports of taxable gross receipts for the | 7796 |
remainder of the qualifying period. The operator of the facility | 7797 |
shall disclose to the suppliers that such Ohio delivery percentage | 7798 |
is an estimate and is subject to recalculation. By the due date of | 7799 |
the next application for a qualifying certificate, the operator | 7800 |
shall determine the actual Ohio delivery percentage for the | 7801 |
estimated qualifying period and proceed as provided in division | 7802 |
(F)(2)(z)(iii) of this section with respect to the calculation and | 7803 |
recalculation of the Ohio delivery percentage. The supplier is | 7804 |
required to file, within sixty days after receiving notice from | 7805 |
the operator of the qualified distribution center, amended reports | 7806 |
for the impacted calendar quarter or quarters or calendar year, | 7807 |
whichever the case may be. Any additional tax liability or tax | 7808 |
overpayment shall be subject to interest but shall not be subject | 7809 |
to the imposition of any penalty so long as the amended returns | 7810 |
are timely filed. | 7811 |
(v) Qualifying certificates and Ohio delivery percentages | 7812 |
issued by the commissioner shall be open to public inspection and | 7813 |
shall be timely published by the commissioner. A supplier relying | 7814 |
in good faith on a certificate issued under this division shall | 7815 |
not be subject to tax on the qualifying distribution center | 7816 |
receipts under division (F)(2)(z) of this section. A person | 7817 |
receiving a qualifying certificate is responsible for paying the | 7818 |
tax, interest, and penalty upon amounts claimed as qualifying | 7819 |
distribution center receipts that would not otherwise have been | 7820 |
owed by the supplier if the qualifying certificate were available | 7821 |
when it is later determined that the qualifying certificate should | 7822 |
not have been issued because the statutory requirements were in | 7823 |
fact not met. | 7824 |
(vi) The annual fee for a qualifying certificate shall be one | 7825 |
hundred thousand dollars for each qualified distribution center. | 7826 |
If a qualifying certificate is not issued, the annual fee is | 7827 |
subject to refund after the exhaustion of all appeals provided for | 7828 |
in division (F)(2)(z)(i)(VI) of this section. The fee imposed | 7829 |
under this division may be assessed in the same manner as the tax | 7830 |
imposed under this chapter. The first one hundred thousand dollars | 7831 |
of the annual application fees collected each calendar year shall | 7832 |
be credited to the | 7833 |
enhancement fund. The remainder of the annual application fees | 7834 |
collected shall be distributed in the same manner required under | 7835 |
section 5751.20 of the Revised Code. | 7836 |
(vii) The tax commissioner may require that adequate security | 7837 |
be posted by the operator of the distribution center on appeal | 7838 |
when the commissioner disagrees that the applicant has met the | 7839 |
minimum thresholds for a qualified distribution center as set | 7840 |
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this | 7841 |
section. | 7842 |
(aa) Receipts of an employer from payroll deductions relating | 7843 |
to the reimbursement of the employer for advancing moneys to an | 7844 |
unrelated third party on an employee's behalf; | 7845 |
(bb) Cash discounts allowed and taken; | 7846 |
(cc) Returns and allowances; | 7847 |
(dd) Bad debts from receipts on the basis of which the tax | 7848 |
imposed by this chapter was paid in a prior quarterly tax payment | 7849 |
period. For the purpose of this division, "bad debts" means any | 7850 |
debts that have become worthless or uncollectible between the | 7851 |
preceding and current quarterly tax payment periods, have been | 7852 |
uncollected for at least six months, and that may be claimed as a | 7853 |
deduction under section 166 of the Internal Revenue Code and the | 7854 |
regulations adopted under that section, or that could be claimed | 7855 |
as such if the taxpayer kept its accounts on the accrual basis. | 7856 |
"Bad debts" does not include repossessed property, uncollectible | 7857 |
amounts on property that remains in the possession of the taxpayer | 7858 |
until the full purchase price is paid, or expenses in attempting | 7859 |
to collect any account receivable or for any portion of the debt | 7860 |
recovered; | 7861 |
(ee) Any amount realized from the sale of an account | 7862 |
receivable to the extent the receipts from the underlying | 7863 |
transaction giving rise to the account receivable were included in | 7864 |
the gross receipts of the taxpayer; | 7865 |
(ff) Any receipts directly attributed to providing public | 7866 |
services pursuant to sections 126.60 to 126.605 of the Revised | 7867 |
Code, or any receipts directly attributed to a transfer agreement | 7868 |
or to the enterprise transferred under that agreement under | 7869 |
section 4313.02 of the Revised Code. | 7870 |
(gg) | 7871 |
7872 | |
7873 |
| 7874 |
(I) "Qualified uranium receipts" means receipts from the | 7875 |
sale, exchange, lease, loan, production, processing, or other | 7876 |
disposition of uranium within a uranium enrichment zone certified | 7877 |
by the tax commissioner under division | 7878 |
(F)(2)(gg)(ii) of this section. "Qualified uranium receipts" does | 7879 |
not include any receipts with a situs in this state outside a | 7880 |
uranium enrichment zone certified by the tax commissioner under | 7881 |
division
| 7882 |
(II) "Uranium enrichment zone" means all real property that | 7883 |
is part of a uranium enrichment facility licensed by the United | 7884 |
States nuclear regulatory commission and that was or is owned or | 7885 |
controlled by the United States department of energy or its | 7886 |
successor. | 7887 |
(ii) Any person that owns, leases, or operates real or | 7888 |
tangible personal property constituting or located within a | 7889 |
uranium enrichment zone may apply to the tax commissioner to have | 7890 |
the uranium enrichment zone certified for the purpose of excluding | 7891 |
qualified uranium receipts under division | 7892 |
this section. The application shall include such information that | 7893 |
the tax commissioner prescribes. Within sixty days after receiving | 7894 |
the application, the tax commissioner shall certify the zone for | 7895 |
that purpose if the commissioner determines that the property | 7896 |
qualifies as a uranium enrichment zone as defined in division | 7897 |
7898 | |
determines that the property does not qualify, the commissioner | 7899 |
shall deny the application or request additional information from | 7900 |
the applicant. If the tax commissioner denies an application, the | 7901 |
commissioner shall state the reasons for the denial. The applicant | 7902 |
may appeal the denial of an application to the board of tax | 7903 |
appeals pursuant to section 5717.02 of the Revised Code. If the | 7904 |
applicant files a timely appeal, the tax commissioner shall | 7905 |
conditionally certify the applicant's property. The conditional | 7906 |
certification shall expire when all of the applicant's appeals are | 7907 |
exhausted. Until final resolution of the appeal, the applicant | 7908 |
shall retain the applicant's records in accordance with section | 7909 |
5751.12 of the Revised Code, notwithstanding any time limit on the | 7910 |
preservation of records under that section. | 7911 |
| 7912 |
licensed permissive motor fuel dealers from the exchange of | 7913 |
petroleum products, including motor fuel, between such dealers, | 7914 |
provided that delivery of the petroleum products occurs at a | 7915 |
refinery, terminal, pipeline, or marine vessel and that the | 7916 |
exchanging dealers agree neither dealer shall require monetary | 7917 |
compensation from the other for the value of the exchanged | 7918 |
petroleum products other than such compensation for differences in | 7919 |
product location or grade. Division | 7920 |
section does not apply to amounts realized as a result of | 7921 |
differences in location or grade of exchanged petroleum products | 7922 |
or from handling, lubricity, dye, or other additive injections | 7923 |
fees, pipeline security fees, or similar fees. As used in this | 7924 |
division, "motor fuel," "licensed motor fuel dealer," "licensed | 7925 |
permissive motor fuel dealer," and "terminal" have the same | 7926 |
meanings as in section 5735.01 of the Revised Code. | 7927 |
| 7928 |
casino operator from casino gaming, amounts in excess of the | 7929 |
casino operator's gross casino revenue. In this division, "casino | 7930 |
operator" and "casino gaming" have the meanings defined in section | 7931 |
3772.01 of the Revised Code, and "gross casino revenue" has the | 7932 |
meaning defined in section 5753.01 of the Revised Code. | 7933 |
(jj) Any receipts for which the tax imposed by this chapter | 7934 |
is prohibited by the constitution or laws of the United States or | 7935 |
the constitution of this state. | 7936 |
(3) In the case of a taxpayer when acting as a real estate | 7937 |
broker, "gross receipts" includes only the portion of any fee for | 7938 |
the service of a real estate broker, or service of a real estate | 7939 |
salesperson associated with that broker, that is retained by the | 7940 |
broker and not paid to an associated real estate salesperson or | 7941 |
another real estate broker. For the purposes of this division, | 7942 |
"real estate broker" and "real estate salesperson" have the same | 7943 |
meanings as in section 4735.01 of the Revised Code. | 7944 |
(4) A taxpayer's method of accounting for gross receipts for | 7945 |
a tax period shall be the same as the taxpayer's method of | 7946 |
accounting for federal income tax purposes for the taxpayer's | 7947 |
federal taxable year that includes the tax period. If a taxpayer's | 7948 |
method of accounting for federal income tax purposes changes, its | 7949 |
method of accounting for gross receipts under this chapter shall | 7950 |
be changed accordingly. | 7951 |
(G) "Taxable gross receipts" means gross receipts sitused to | 7952 |
this state under section 5751.033 of the Revised Code. | 7953 |
(H) A person has "substantial nexus with this state" if any | 7954 |
of the following applies. The person: | 7955 |
(1) Owns or uses a part or all of its capital in this state; | 7956 |
(2) Holds a certificate of compliance with the laws of this | 7957 |
state authorizing the person to do business in this state; | 7958 |
(3) Has bright-line presence in this state; | 7959 |
(4) Otherwise has nexus with this state to an extent that the | 7960 |
person can be required to remit the tax imposed under this chapter | 7961 |
under the Constitution of the United States. | 7962 |
(I) A person has "bright-line presence" in this state for a | 7963 |
reporting period and for the remaining portion of the calendar | 7964 |
year if any of the following applies. The person: | 7965 |
(1) Has at any time during the calendar year property in this | 7966 |
state with an aggregate value of at least fifty thousand dollars. | 7967 |
For the purpose of division (I)(1) of this section, owned property | 7968 |
is valued at original cost and rented property is valued at eight | 7969 |
times the net annual rental charge. | 7970 |
(2) Has during the calendar year payroll in this state of at | 7971 |
least fifty thousand dollars. Payroll in this state includes all | 7972 |
of the following: | 7973 |
(a) Any amount subject to withholding by the person under | 7974 |
section 5747.06 of the Revised Code; | 7975 |
(b) Any other amount the person pays as compensation to an | 7976 |
individual under the supervision or control of the person for work | 7977 |
done in this state; and | 7978 |
(c) Any amount the person pays for services performed in this | 7979 |
state on its behalf by another. | 7980 |
(3) Has during the calendar year taxable gross receipts of at | 7981 |
least five hundred thousand dollars. | 7982 |
(4) Has at any time during the calendar year within this | 7983 |
state at least twenty-five per cent of the person's total | 7984 |
property, total payroll, or total gross receipts. | 7985 |
(5) Is domiciled in this state as an individual or for | 7986 |
corporate, commercial, or other business purposes. | 7987 |
(J) "Tangible personal property" has the same meaning as in | 7988 |
section 5739.01 of the Revised Code. | 7989 |
(K) "Internal Revenue Code" means the Internal Revenue Code | 7990 |
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in | 7991 |
this chapter that is not otherwise defined has the same meaning as | 7992 |
when used in a comparable context in the laws of the United States | 7993 |
relating to federal income taxes unless a different meaning is | 7994 |
clearly required. Any reference in this chapter to the Internal | 7995 |
Revenue Code includes other laws of the United States relating to | 7996 |
federal income taxes. | 7997 |
(L) "Calendar quarter" means a three-month period ending on | 7998 |
the thirty-first day of March, the thirtieth day of June, the | 7999 |
thirtieth day of September, or the thirty-first day of December. | 8000 |
(M) "Tax period" means the calendar quarter or calendar year | 8001 |
on the basis of which a taxpayer is required to pay the tax | 8002 |
imposed under this chapter. | 8003 |
(N) "Calendar year taxpayer" means a taxpayer for which the | 8004 |
tax period is a calendar year. | 8005 |
(O) "Calendar quarter taxpayer" means a taxpayer for which | 8006 |
the tax period is a calendar quarter. | 8007 |
(P) "Agent" means a person authorized by another person to | 8008 |
act on its behalf to undertake a transaction for the other, | 8009 |
including any of the following: | 8010 |
(1) A person receiving a fee to sell financial instruments; | 8011 |
(2) A person retaining only a commission from a transaction | 8012 |
with the other proceeds from the transaction being remitted to | 8013 |
another person; | 8014 |
(3) A person issuing licenses and permits under section | 8015 |
1533.13 of the Revised Code; | 8016 |
(4) A lottery sales agent holding a valid license issued | 8017 |
under section 3770.05 of the Revised Code; | 8018 |
(5) A person acting as an agent of the division of liquor | 8019 |
control under section 4301.17 of the Revised Code. | 8020 |
(Q) "Received" includes amounts accrued under the accrual | 8021 |
method of accounting. | 8022 |
(R) "Reporting person" means a person in a consolidated | 8023 |
elected taxpayer or combined taxpayer group that is designated by | 8024 |
that group to legally bind the group for all filings and tax | 8025 |
liabilities and to receive all legal notices with respect to | 8026 |
matters under this chapter, or, for the purposes of section | 8027 |
5751.04 of the Revised Code, a separate taxpayer that is not a | 8028 |
member of such a group. | 8029 |
Sec. 5751.011. (A) A group of two or more persons may elect | 8030 |
to be a consolidated elected taxpayer for the purposes of this | 8031 |
chapter if the group satisfies all of the following requirements: | 8032 |
(1) The group elects to include all persons, including | 8033 |
persons enumerated in divisions (E)(2) to (10) of section 5751.01 | 8034 |
of the Revised Code, having at least eighty per cent, or having at | 8035 |
least fifty per cent, of the value of their ownership interests | 8036 |
owned or controlled, directly or constructively through related | 8037 |
interests, by common owners during all or any portion of the tax | 8038 |
period, together with the common owners. | 8039 |
A group making its initial election on the basis of the | 8040 |
eighty per cent ownership test may change its election so that its | 8041 |
consolidated elected taxpayer group is formed on the basis of the | 8042 |
fifty per cent ownership test if all of the following are | 8043 |
satisfied: | 8044 |
(a) When the initial election was made, the group did not | 8045 |
have any persons satisfying the fifty per cent ownership test; | 8046 |
(b) One or more of the persons in the initial group | 8047 |
subsequently acquires ownership interests in a person such that | 8048 |
the fifty per cent ownership test is satisfied, the eighty per | 8049 |
cent ownership test is not satisfied, and the acquired person | 8050 |
would be required to be included in a combined taxpayer group | 8051 |
under section 5751.012 of the Revised Code; | 8052 |
(c) The group requests the change in | 8053 |
writing to the
| 8054 |
8055 | |
8056 | |
of this section; | 8057 |
(d) The group has not previously changed its election. | 8058 |
At the election of the group, all entities that are not | 8059 |
incorporated or formed under the laws of a state or of the United | 8060 |
States and that meet the consolidated elected ownership test shall | 8061 |
either be included in the group or all shall be excluded from the | 8062 |
group. If, at the time of registration, the group does not include | 8063 |
any such entities that meet the consolidated elected ownership | 8064 |
test, the group shall elect to either include or exclude the newly | 8065 |
acquired entities before the due date of the first return due | 8066 |
after the date of the acquisition. | 8067 |
| 8068 |
8069 | |
8070 | |
of a person's ownership interests is owned or controlled by each | 8071 |
of two consolidated elected taxpayer groups formed under the fifty | 8072 |
per cent ownership or control test, that person is a member of | 8073 |
each group for the purposes of this section, and each group shall | 8074 |
include in the group's taxable gross receipts fifty per cent of | 8075 |
that person's taxable gross receipts. Otherwise, all of that | 8076 |
person's taxable gross receipts shall be included in the taxable | 8077 |
gross receipts of the consolidated elected taxpayer group of which | 8078 |
the person is a member. In no event shall the ownership or control | 8079 |
of fifty per cent of the value of a person's ownership interests | 8080 |
by two otherwise unrelated groups form the basis for consolidating | 8081 |
the groups into a single consolidated elected taxpayer group or | 8082 |
permit any exclusion under division (C) of this section of taxable | 8083 |
gross receipts between members of the two groups. Division (A)(3) | 8084 |
of this section applies with respect to the elections described in | 8085 |
this division. | 8086 |
(2) The group makes the election to be treated as a | 8087 |
consolidated elected taxpayer in the manner prescribed under | 8088 |
division (D) of this section. | 8089 |
(3) Subject to review and audit by the tax commissioner, the | 8090 |
group agrees that all of the following apply: | 8091 |
(a) The group shall file reports as a single taxpayer for at | 8092 |
least the next eight calendar quarters following the election so | 8093 |
long as at least two or more of the members of the group meet the | 8094 |
requirements of division (A)(1) of this section. | 8095 |
(b) Before the expiration of the eighth such calendar | 8096 |
quarter, the group shall notify the commissioner if it elects to | 8097 |
cancel its designation as a consolidated elected taxpayer. If the | 8098 |
group does not so notify the tax commissioner, the election | 8099 |
remains in effect for another eight calendar quarters. | 8100 |
(c) If, at any time during any of those eight calendar | 8101 |
quarters following the election, a former member of the group no | 8102 |
longer meets the requirements under division (A)(1) of this | 8103 |
section, that member shall report and pay the tax imposed under | 8104 |
this chapter separately, as a member of a combined taxpayer, or, | 8105 |
if the former member satisfies such requirements with respect to | 8106 |
another consolidated elected group, as a member of that | 8107 |
consolidated elected group. | 8108 |
(d) The group agrees to the application of division (B) of | 8109 |
this section. | 8110 |
(B) A group of persons making the election under this section | 8111 |
shall report and pay tax on all of the group's taxable gross | 8112 |
receipts even if substantial nexus with this state does not exist | 8113 |
for one or more persons in the group. | 8114 |
(C)(1)(a) Members of a consolidated elected taxpayer group | 8115 |
shall exclude gross receipts among persons included in the | 8116 |
consolidated elected taxpayer group. | 8117 |
(b) Subject to divisions (C)(1)(c) and (C)(2) of this | 8118 |
section, nothing in this section shall have the effect of | 8119 |
requiring a consolidated elected taxpayer group to include gross | 8120 |
receipts received by a person enumerated in divisions (E)(2) to | 8121 |
(10) of section 5751.01 of the Revised Code if that person is a | 8122 |
member of the group pursuant to the elections made by the group | 8123 |
under division (A)(1) of this section. | 8124 |
(c)(i) As used in division (C)(1)(c) of this section, "dealer | 8125 |
transfer" means a transfer of property that satisfies both of the | 8126 |
following: (I) the property is directly transferred by any means | 8127 |
from one member of the group to another member of the group that | 8128 |
is a dealer in intangibles but is not a qualifying dealer as | 8129 |
defined in section 5707.031 of the Revised Code; and (II) the | 8130 |
property is subsequently delivered by the dealer in intangibles to | 8131 |
a person that is not a member of the group. | 8132 |
(ii) In the event of a dealer transfer, a consolidated | 8133 |
elected taxpayer group shall not exclude, under division (C) of | 8134 |
this section, gross receipts from the transfer described in | 8135 |
division (C)(1)(c)(i)(I) of this section. | 8136 |
(2) Gross receipts related to the sale or transmission of | 8137 |
electricity through the use of an intermediary regional | 8138 |
transmission organization approved by the federal energy | 8139 |
regulatory commission shall be excluded from taxable gross | 8140 |
receipts under division (C)(1) of this section if all other | 8141 |
requirements of that division are met, even if the receipts are | 8142 |
from and to the same member of the group. | 8143 |
(D) To make the election to be a consolidated elected | 8144 |
taxpayer, a group of persons shall notify the | 8145 |
the election | 8146 |
8147 | |
8148 | |
8149 | |
8150 | |
8151 | |
commissioner for that purpose, which shall be signed by one or | 8152 |
more individuals with authority, separately or together, to make a | 8153 |
binding election on behalf of all persons in the group. Elections | 8154 |
under division (A) of this section shall be made | 8155 |
on or before the | 8156 |
8157 | |
8158 | |
8159 |
| 8160 |
8161 | |
8162 | |
8163 |
Any person acquired or formed after the filing of the | 8164 |
registration shall be included in the group if the person meets | 8165 |
the requirements of division (A)(1) of this section, and the group | 8166 |
shall notify the | 8167 |
8168 | |
commissioner for such purpose. | 8169 |
Sec. 5751.012. (A) All persons, other than persons | 8170 |
enumerated in divisions (E)(2) to (10) of section 5751.01 of the | 8171 |
Revised Code, having more than fifty per cent of the value of | 8172 |
their ownership interest owned or controlled, directly or | 8173 |
constructively through related interests, by common owners during | 8174 |
all or any portion of the tax period, together with the common | 8175 |
owners, shall be members of a combined taxpayer group if those | 8176 |
persons are not members of a consolidated elected taxpayer group | 8177 |
pursuant to an election under section 5751.011 of the Revised | 8178 |
Code. | 8179 |
(B) A combined taxpayer group shall register, file returns, | 8180 |
and pay taxes under this chapter as a single taxpayer | 8181 |
| 8182 |
gross receipts between its members nor from others that are not | 8183 |
members. | 8184 |
| 8185 |
8186 | |
8187 | |
8188 | |
8189 | |
8190 | |
8191 | |
8192 | |
8193 |
(C) Any person acquired or formed after the filing of the | 8194 |
registration shall be included in the group if the person meets | 8195 |
the requirements of division (A) of this section, and the group | 8196 |
must notify the | 8197 |
8198 | |
prescribed by the commissioner for such purpose. | 8199 |
Sec. 5751.03. (A) Except as provided in | 8200 |
(B) | 8201 |
8202 | |
for each tax period shall be the product of two and six-tenths | 8203 |
mills per dollar times the remainder of the taxpayer's taxable | 8204 |
gross receipts for the tax period after subtracting the exclusion | 8205 |
amount provided for in division (C) of this section. | 8206 |
(B) Notwithstanding division (C) of this section, the tax on | 8207 |
the first one million dollars in taxable gross receipts each | 8208 |
calendar year shall be one hundred fifty dollars. | 8209 |
8210 | |
8211 | |
8212 | |
8213 | |
8214 | |
8215 | |
8216 | |
imposed under this division shall be paid not later than the tenth | 8217 |
day of May of each year along with the first quarter or annual tax | 8218 |
return, as applicable. | 8219 |
(C)(1) Each | 8220 |
8221 | |
receipts for a calendar | 8222 |
shall apply the full exclusion amount to the first calendar | 8223 |
quarter return the taxpayer files that calendar year and may carry | 8224 |
forward and apply any unused exclusion amount to | 8225 |
subsequent calendar quarters within that same calendar year. | 8226 |
8227 | |
8228 |
(2) A taxpayer switching from a calendar year tax period to a | 8229 |
calendar quarter tax period may, for the first quarter of the | 8230 |
change, apply the | 8231 |
exclusion | 8232 |
taxpayer files that calendar year. Such taxpayers may carry | 8233 |
forward and apply any unused exclusion amount to subsequent | 8234 |
calendar quarters within that same calendar year. The tax rate | 8235 |
shall be based on the rate imposed that calendar quarter when the | 8236 |
taxpayer switches from a calendar year to a calendar quarter tax | 8237 |
period. | 8238 |
| 8239 |
8240 | |
8241 | |
8242 | |
8243 | |
8244 | |
8245 | |
8246 | |
8247 | |
8248 | |
exclude more than one million dollars pursuant to division (C) of | 8249 |
this section in a calendar year. | 8250 |
Sec. 5751.04. (A) As used in this section, "person" includes | 8251 |
a reporting person. | 8252 |
(B) Not later than thirty days after a person first has more | 8253 |
than one hundred fifty thousand dollars in taxable gross receipts | 8254 |
in a calendar year, each person subject to this chapter shall | 8255 |
register with the tax commissioner on the form prescribed by the | 8256 |
commissioner. The form shall include the following: | 8257 |
(1) The person's name; | 8258 |
(2) | 8259 |
8260 |
| 8261 |
8262 | |
8263 |
| 8264 |
8265 | |
8266 | |
8267 |
| 8268 |
(3) The | 8269 |
8270 |
| 8271 |
8272 | |
8273 |
| 8274 |
8275 | |
8276 |
| 8277 |
8278 | |
security number or equivalent, as applicable; | 8279 |
| 8280 |
(6) The date the person is first subject to the tax imposed | 8281 |
by this chapter; | 8282 |
(7) The names, addresses, federal identification numbers or | 8283 |
social security numbers or equivalents, and organization types of | 8284 |
each member that is commonly owned in a consolidated elected | 8285 |
taxpayer or combined taxpayer group; | 8286 |
(8) All other information that the commissioner requires to | 8287 |
administer and enforce this chapter. | 8288 |
(C) | 8289 |
8290 | |
8291 | |
8292 | |
8293 | |
8294 | |
8295 | |
8296 | |
8297 | |
8298 | |
8299 | |
8300 | |
(1) To help defray the costs of administering the tax imposed by | 8301 |
this chapter, the commissioner shall collect a registration fee in | 8302 |
the amount of twenty dollars per person up to a maximum of two | 8303 |
hundred dollars per consolidated elected taxpayer or combined | 8304 |
taxpayer group. The commissioner shall systematically deduct and | 8305 |
collect the fee from the first tax payment each taxpayer makes | 8306 |
after registering or adding members, as applicable. No separate | 8307 |
registration fee may be collected in addition to the tax imposed | 8308 |
by this chapter. | 8309 |
(2) If a person does not register within the time prescribed | 8310 |
by this section, an additional fee is imposed in the amount of one | 8311 |
hundred dollars per month or part thereof that the fee is | 8312 |
outstanding, not to exceed one thousand dollars. The tax | 8313 |
commissioner may abate the additional fee. The fee imposed under | 8314 |
this division may be assessed in the same manner as the tax | 8315 |
imposed under this chapter. | 8316 |
(D) Proceeds from the fee imposed under division (C) of this | 8317 |
section shall be credited to the | 8318 |
8319 | |
in the state treasury | 8320 |
8321 |
| 8322 |
8323 | |
8324 | |
8325 |
| 8326 |
no longer a taxpayer subject to this chapter, | 8327 |
8328 | |
8329 | |
commissioner that the person's registration should be cancelled. | 8330 |
| 8331 |
commissioner before | 8332 |
8333 | |
8334 | |
primary taxpayer on the registration shall be the reporting person | 8335 |
until the taxpayer notifies the commissioner otherwise. | 8336 |
Sec. 5751.05. (A) If a person subject to this chapter | 8337 |
anticipates that the person's taxable gross receipts will be more | 8338 |
than one million dollars in a calendar year, the person shall | 8339 |
notify the tax commissioner on the person's initial registration | 8340 |
form and file on a quarterly basis as a calendar quarter taxpayer. | 8341 |
Any taxpayer with taxable gross receipts of one million dollars or | 8342 |
less shall register as a calendar year taxpayer and shall file | 8343 |
annually. | 8344 |
(B) Any person that is a calendar year taxpayer under | 8345 |
division (A) of this section shall become a calendar quarter | 8346 |
taxpayer in the subsequent calendar year if the person's taxable | 8347 |
gross receipts for the prior calendar year are more than one | 8348 |
million dollars, and shall remain a calendar quarter taxpayer | 8349 |
until the person notifies the | 8350 |
approval in writing from the | 8351 |
being a calendar year taxpayer. | 8352 |
8353 | |
8354 | |
8355 | |
8356 |
(C) | 8357 |
8358 | |
commissioner may grant written approval for a calendar quarter | 8359 |
taxpayer to use an alternative reporting schedule or estimate the | 8360 |
amount of tax due for a calendar quarter if the taxpayer | 8361 |
demonstrates to the commissioner the need for such a deviation. | 8362 |
The commissioner may adopt a rule to apply division (C) of this | 8363 |
section to a group of taxpayers without the taxpayers having to | 8364 |
receive written approval from the commissioner. | 8365 |
Sec. 5751.051. (A)(1) Not later than the tenth day of the | 8366 |
second month after the end of each calendar quarter, every | 8367 |
taxpayer other than a calendar year taxpayer shall file with the | 8368 |
tax commissioner a tax return in such form as the commissioner | 8369 |
prescribes. The return shall include, but is not limited to, the | 8370 |
amount of the taxpayer's taxable gross receipts for the calendar | 8371 |
quarter and shall indicate the amount of tax due under section | 8372 |
5751.03 of the Revised Code for the calendar quarter. | 8373 |
(2)(a) Subject to division (C) of section 5751.05 of the | 8374 |
Revised Code, a calendar quarter taxpayer shall report the taxable | 8375 |
gross receipts for that calendar quarter. | 8376 |
(b) With respect to taxable gross receipts incorrectly | 8377 |
reported in a calendar quarter that has a lower tax rate, the tax | 8378 |
shall be computed at the tax rate in effect for the quarterly | 8379 |
return in which such receipts should have been reported. Nothing | 8380 |
in division (A)(2)(b) of this section prohibits a taxpayer from | 8381 |
filing an application for refund under section 5751.08 of the | 8382 |
Revised Code with regard to the incorrect reporting of taxable | 8383 |
gross receipts discovered after filing the annual return described | 8384 |
in division (A)(3) of this section. | 8385 |
A tax return shall not be deemed to be an incorrect reporting | 8386 |
of taxable gross receipts for the purposes of division (A)(2)(b) | 8387 |
of this section if the return reflects between ninety-five and one | 8388 |
hundred five per cent of the actual taxable gross receipts for the | 8389 |
calendar quarter. | 8390 |
(3) For the purposes of division (A)(2)(b) of this section, | 8391 |
the tax return filed for the fourth calendar quarter of a calendar | 8392 |
year is the annual return for the privilege tax imposed by this | 8393 |
chapter. Such return shall report any additional taxable gross | 8394 |
receipts not previously reported in the calendar year and shall | 8395 |
adjust for any over-reported taxable gross receipts in the | 8396 |
calendar year. If the taxpayer ceases to be a taxpayer before the | 8397 |
end of the calendar year, the last return the taxpayer is required | 8398 |
to file shall be the annual return for the taxpayer and the | 8399 |
taxpayer shall report any additional taxable gross receipts not | 8400 |
previously reported in the calendar year and shall adjust for any | 8401 |
over-reported taxable gross receipts in the calendar year. | 8402 |
(4) Because the tax imposed by this chapter is a privilege | 8403 |
tax, the tax rate with respect to taxable gross receipts for a | 8404 |
calendar quarter is not fixed until the end of the measurement | 8405 |
period for each calendar quarter. Subject to division (A)(2)(b) of | 8406 |
this section, the total amount of taxable gross receipts reported | 8407 |
for a given calendar quarter shall be subject to the tax rate in | 8408 |
effect in that quarter. | 8409 |
(5) Not later than the tenth day of May following the end of | 8410 |
each calendar year, every calendar year taxpayer shall file with | 8411 |
the tax commissioner a tax return in such form as the commissioner | 8412 |
prescribes. The return shall include, but is not limited to, the | 8413 |
amount of the taxpayer's taxable gross receipts for the calendar | 8414 |
year and shall indicate the amount of tax due under section | 8415 |
5751.03 of the Revised Code for the calendar year. | 8416 |
(B)(1) A person that first becomes subject to the tax imposed | 8417 |
under this chapter shall pay the minimum tax imposed under | 8418 |
division (B) of section 5751.03 of the Revised Code | 8419 |
8420 | |
before the day the return is required to be filed for that quarter | 8421 |
under division (A)(1) of this section, regardless of whether the | 8422 |
person | 8423 |
section 5751.05 of the Revised Code. | 8424 |
(2) The amount of the minimum tax for a person subject to | 8425 |
division (B)(1) of this section shall be reduced to seventy-five | 8426 |
dollars if the registration is timely filed after the first day of | 8427 |
May and before the first day of January of the following calendar | 8428 |
year. | 8429 |
Sec. 5751.12. The tax commissioner may prescribe | 8430 |
requirements for the keeping of records and other pertinent | 8431 |
documents, the filing of copies of federal income tax returns and | 8432 |
determinations, and computations reconciling federal income tax | 8433 |
returns with the returns and reports required by section | 8434 |
5751.051 of the Revised Code. The commissioner may require any | 8435 |
person, by rule or notice served on that person, to keep those | 8436 |
records that the commissioner considers necessary to show whether, | 8437 |
and the extent to which, a person is subject to this chapter. | 8438 |
Those records and other documents shall be open during business | 8439 |
hours to the inspection of the commissioner, and shall be | 8440 |
preserved for a period of four years unless the commissioner, in | 8441 |
writing, consents to their destruction within that period, or by | 8442 |
order requires that they be kept longer. If such records are | 8443 |
normally kept by the person electronically, the person shall | 8444 |
provide such records to the commissioner electronically at the | 8445 |
commissioner's request. | 8446 |
Any information required by the | 8447 |
chapter is confidential as provided for in section 5703.21 of the | 8448 |
Revised Code. However, the commissioner shall make public an | 8449 |
electronic list of all actively registered persons required to | 8450 |
remit the tax under this chapter, including legal names, trade | 8451 |
names, addresses, and account numbers. In addition, such list | 8452 |
shall include all persons that cancelled their registration at any | 8453 |
time during the preceding four calendar years, including the | 8454 |
effective date of the | 8455 |
Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of | 8456 |
the Revised Code: | 8457 |
(1) "School district," "joint vocational school district," | 8458 |
"local taxing unit," "recognized valuation," "fixed-rate levy," | 8459 |
and "fixed-sum levy" have the same meanings as used in section | 8460 |
5727.84 of the Revised Code. | 8461 |
(2) "State education aid" for a school district means the | 8462 |
following: | 8463 |
(a) For fiscal years prior to fiscal year 2010, the sum of | 8464 |
state aid amounts computed for the district under the following | 8465 |
provisions, as they existed for the applicable fiscal year: | 8466 |
division (A) of section 3317.022 of the Revised Code, including | 8467 |
the amounts calculated under sections 3317.029 and 3317.0217 of | 8468 |
the Revised Code; divisions (C)(1), (C)(4), (D), (E), and (F) of | 8469 |
section 3317.022; divisions (B), (C), and (D) of section 3317.023; | 8470 |
divisions (L) and (N) of section 3317.024; section 3317.0216; and | 8471 |
any unit payments for gifted student services paid under sections | 8472 |
3317.05, 3317.052, and 3317.053 of the Revised Code; except that, | 8473 |
for fiscal years 2008 and 2009, the amount computed for the | 8474 |
district under Section 269.20.80 of H.B. 119 of the 127th general | 8475 |
assembly and as that section subsequently may be amended shall be | 8476 |
substituted for the amount computed under division (D) of section | 8477 |
3317.022 of the Revised Code, and the amount computed under | 8478 |
Section 269.30.80 of H.B. 119 of the 127th general assembly and as | 8479 |
that section subsequently may be amended shall be included. | 8480 |
(b) For fiscal years 2010 and 2011, the sum of the amounts | 8481 |
computed under former sections 3306.052, 3306.12, 3306.13, | 8482 |
3306.19, 3306.191, and 3306.192 of the Revised Code; | 8483 |
(c) For fiscal years 2012 and 2013, the amount paid in | 8484 |
accordance with | 8485 |
129th general assembly entitled "FUNDING FOR CITY, EXEMPTED | 8486 |
VILLAGE, AND LOCAL SCHOOL DISTRICTS." | 8487 |
(3) "State education aid" for a joint vocational school | 8488 |
district means the following: | 8489 |
(a) For fiscal years prior to fiscal year 2010, the sum of | 8490 |
the state aid computed for the district under division (N) of | 8491 |
section 3317.024 and section 3317.16 of the Revised Code, except | 8492 |
that, for fiscal years 2008 and 2009, the amount computed under | 8493 |
Section 269.30.80 of H.B. 119 of the 127th general assembly and as | 8494 |
that section subsequently may be amended shall be included. | 8495 |
(b) For fiscal years 2010 and 2011, the amount paid in | 8496 |
accordance with | 8497 |
128th general assembly entitled "FUNDING FOR JOINT VOCATIONAL | 8498 |
SCHOOL DISTRICTS." | 8499 |
(c) For fiscal years 2012 and 2013, the amount paid in | 8500 |
accordance with | 8501 |
129th general assembly entitled "FUNDING FOR JOINT VOCATIONAL | 8502 |
SCHOOL DISTRICTS." | 8503 |
(4) "State education aid offset" means the amount determined | 8504 |
for each school district or joint vocational school district under | 8505 |
division (A)(1) of section 5751.21 of the Revised Code. | 8506 |
(5) "Machinery and equipment property tax value loss" means | 8507 |
the amount determined under division (C)(1) of this section. | 8508 |
(6) "Inventory property tax value loss" means the amount | 8509 |
determined under division (C)(2) of this section. | 8510 |
(7) "Furniture and fixtures property tax value loss" means | 8511 |
the amount determined under division (C)(3) of this section. | 8512 |
(8) "Machinery and equipment fixed-rate levy loss" means the | 8513 |
amount determined under division (D)(1) of this section. | 8514 |
(9) "Inventory fixed-rate levy loss" means the amount | 8515 |
determined under division (D)(2) of this section. | 8516 |
(10) "Furniture and fixtures fixed-rate levy loss" means the | 8517 |
amount determined under division (D)(3) of this section. | 8518 |
(11) "Total fixed-rate levy loss" means the sum of the | 8519 |
machinery and equipment fixed-rate levy loss, the inventory | 8520 |
fixed-rate levy loss, the furniture and fixtures fixed-rate levy | 8521 |
loss, and the telephone company fixed-rate levy loss. | 8522 |
(12) "Fixed-sum levy loss" means the amount determined under | 8523 |
division (E) of this section. | 8524 |
(13) "Machinery and equipment" means personal property | 8525 |
subject to the assessment rate specified in division (F) of | 8526 |
section 5711.22 of the Revised Code. | 8527 |
(14) "Inventory" means personal property subject to the | 8528 |
assessment rate specified in division (E) of section 5711.22 of | 8529 |
the Revised Code. | 8530 |
(15) "Furniture and fixtures" means personal property subject | 8531 |
to the assessment rate specified in division (G) of section | 8532 |
5711.22 of the Revised Code. | 8533 |
(16) "Qualifying levies" are levies in effect for tax year | 8534 |
2004 or applicable to tax year 2005 or approved at an election | 8535 |
conducted before September 1, 2005. For the purpose of determining | 8536 |
the rate of a qualifying levy authorized by section 5705.212 or | 8537 |
5705.213 of the Revised Code, the rate shall be the rate that | 8538 |
would be in effect for tax year 2010. | 8539 |
(17) "Telephone property" means tangible personal property of | 8540 |
a telephone, telegraph, or interexchange telecommunications | 8541 |
company subject to an assessment rate specified in section | 8542 |
5727.111 of the Revised Code in tax year 2004. | 8543 |
(18) "Telephone property tax value loss" means the amount | 8544 |
determined under division (C)(4) of this section. | 8545 |
(19) "Telephone property fixed-rate levy loss" means the | 8546 |
amount determined under division (D)(4) of this section. | 8547 |
(20) "Taxes charged and payable" means taxes charged and | 8548 |
payable after the reduction required by section 319.301 of the | 8549 |
Revised Code but before the reductions required by sections | 8550 |
319.302 and 323.152 of the Revised Code. | 8551 |
(21) "Median estate tax collections" means, in the case of a | 8552 |
municipal corporation to which revenue from the taxes levied in | 8553 |
Chapter 5731. of the Revised Code was distributed in each of | 8554 |
calendar years 2006, 2007, 2008, and 2009, the median of those | 8555 |
distributions. In the case of a municipal corporation to which no | 8556 |
distributions were made in one or more of those years, "median | 8557 |
estate tax collections" means zero. | 8558 |
(22) "Total resources," in the case of a school district, | 8559 |
means the sum of the amounts in divisions (A)(22)(a) to (h) of | 8560 |
this section less any reduction required under division (A)(32) or | 8561 |
(33) of this section. | 8562 |
(a) The state education aid for fiscal year 2010; | 8563 |
(b) The sum of the payments received by the school district | 8564 |
in fiscal year 2010 for current expense levy losses pursuant to | 8565 |
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of | 8566 |
section 5751.21 of the Revised Code, excluding the portion of such | 8567 |
payments attributable to levies for joint vocational school | 8568 |
district purposes; | 8569 |
(c) The sum of fixed-sum levy loss payments received by the | 8570 |
school district in fiscal year 2010 pursuant to division (E)(1) of | 8571 |
section 5727.85 and division (E)(1) of section 5751.21 of the | 8572 |
Revised Code for fixed-sum levies | 8573 |
a purpose other than paying debt charges; | 8574 |
(d) Fifty per cent of the school district's taxes charged and | 8575 |
payable against all property on the tax list of real and public | 8576 |
utility property for current expense purposes for tax year 2008, | 8577 |
including taxes charged and payable from emergency levies | 8578 |
charged and payable under section 5709.194 of the Revised Code and | 8579 |
excluding taxes levied for joint vocational school district | 8580 |
purposes; | 8581 |
(e) Fifty per cent of the school district's taxes charged and | 8582 |
payable against all property on the tax list of real and public | 8583 |
utility property for current expenses for tax year 2009, including | 8584 |
taxes charged and payable from emergency levies and excluding | 8585 |
taxes levied for joint vocational school district purposes; | 8586 |
(f) The school district's taxes charged and payable against | 8587 |
all property on the general tax list of personal property for | 8588 |
current expenses for tax year 2009, including taxes charged and | 8589 |
payable from emergency levies; | 8590 |
(g) The amount certified for fiscal year 2010 under division | 8591 |
(A)(2) of section 3317.08 of the Revised Code; | 8592 |
(h) Distributions received during calendar year 2009 from | 8593 |
taxes levied under section 718.09 of the Revised Code. | 8594 |
(23) "Total resources," in the case of a joint vocational | 8595 |
school district, means the sum of amounts in divisions (A)(23)(a) | 8596 |
to (g) of this section less any reduction required under division | 8597 |
(A)(32) of this section. | 8598 |
(a) The state education aid for fiscal year 2010; | 8599 |
(b) The sum of the payments received by the joint vocational | 8600 |
school district in fiscal year 2010 for current expense levy | 8601 |
losses pursuant to division (C)(2) of section 5727.85 and | 8602 |
divisions (C)(8) and (9) of section 5751.21 of the Revised Code; | 8603 |
(c) Fifty per cent of the joint vocational school district's | 8604 |
taxes charged and payable against all property on the tax list of | 8605 |
real and public utility property for current expense purposes for | 8606 |
tax year 2008; | 8607 |
(d) Fifty per cent of the joint vocational school district's | 8608 |
taxes charged and payable against all property on the tax list of | 8609 |
real and public utility property for current expenses for tax year | 8610 |
2009; | 8611 |
(e) Fifty per cent of a city, local, or exempted village | 8612 |
school district's taxes charged and payable against all property | 8613 |
on the tax list of real and public utility property for current | 8614 |
expenses of the joint vocational school district for tax year | 8615 |
2008; | 8616 |
(f) Fifty per cent of a city, local, or exempted village | 8617 |
school district's taxes charged and payable against all property | 8618 |
on the tax list of real and public utility property for current | 8619 |
expenses of the joint vocational school district for tax year | 8620 |
2009; | 8621 |
(g) The joint vocational school district's taxes charged and | 8622 |
payable against all property on the general tax list of personal | 8623 |
property for current expenses for tax year 2009. | 8624 |
(24) "Total resources," in the case of county mental health | 8625 |
and disability related functions, means the sum of the amounts in | 8626 |
divisions (A)(24)(a) and (b) of this section less any reduction | 8627 |
required under division (A)(32) of this section. | 8628 |
(a) The sum of the payments received by the county for mental | 8629 |
health and developmental disability related functions in calendar | 8630 |
year 2010 under division (A)(1) of section 5727.86 and | 8631 |
divisions (A)(1) and (2) of section 5751.22 of the Revised Code as | 8632 |
they existed at that time; | 8633 |
(b) With respect to taxes levied by the county for mental | 8634 |
health and developmental disability related purposes, the taxes | 8635 |
charged and payable for such purposes against all property on the | 8636 |
tax list of real and public utility property for tax year 2009. | 8637 |
(25) "Total resources," in the case of county senior services | 8638 |
related functions, means the sum of the amounts in divisions | 8639 |
(A)(25)(a) and (b) of this section less any reduction required | 8640 |
under division (A)(32) of this section. | 8641 |
(a) The sum of the payments received by the county for senior | 8642 |
services related functions in calendar year 2010 under division | 8643 |
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section | 8644 |
5751.22 of the Revised Code as they existed at that time; | 8645 |
(b) With respect to taxes levied by the county for senior | 8646 |
services related purposes, the taxes charged and payable for such | 8647 |
purposes against all property on the tax list of real and public | 8648 |
utility property for tax year 2009. | 8649 |
(26) "Total resources," in the case of county children's | 8650 |
services related functions, means the sum of the amounts in | 8651 |
divisions (A)(26)(a) and (b) of this section less any reduction | 8652 |
required under division (A)(32) of this section. | 8653 |
(a) The sum of the payments received by the county for | 8654 |
children's services related functions in calendar year 2010 under | 8655 |
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of | 8656 |
section 5751.22 of the Revised Code as they existed at that time; | 8657 |
(b) With respect to taxes levied by the county for children's | 8658 |
services related purposes, the taxes charged and payable for such | 8659 |
purposes against all property on the tax list of real and public | 8660 |
utility property for tax year 2009. | 8661 |
(27) "Total resources," in the case of county public health | 8662 |
related functions, means the sum of the amounts in divisions | 8663 |
(A)(27)(a) and (b) of this section less any reduction required | 8664 |
under division (A)(32) of this section. | 8665 |
(a) The sum of the payments received by the county for public | 8666 |
health related functions in calendar year 2010 under division | 8667 |
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section | 8668 |
5751.22 of the Revised Code as they existed at that time; | 8669 |
(b) With respect to taxes levied by the county for public | 8670 |
health related purposes, the taxes charged and payable for such | 8671 |
purposes against all property on the tax list of real and public | 8672 |
utility property for tax year 2009. | 8673 |
(28) "Total resources," in the case of all county functions | 8674 |
not included in divisions (A)(24) to (27) of this section, means | 8675 |
the sum of the amounts in divisions (A)(28)(a) to (d) of this | 8676 |
section less any reduction required under division (A)(32) or (33) | 8677 |
of this section. | 8678 |
(a) The sum of the payments received by the county for all | 8679 |
other purposes in calendar year 2010 under division (A)(1) of | 8680 |
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of | 8681 |
the Revised Code as they existed at that time; | 8682 |
(b) The county's percentage share of county undivided local | 8683 |
government fund allocations as certified to the tax commissioner | 8684 |
for calendar year 2010 by the county auditor under division (J) of | 8685 |
section 5747.51 of the Revised Code or division (F) of section | 8686 |
5747.53 of the Revised Code multiplied by the total amount | 8687 |
actually distributed in calendar year 2010 from the county | 8688 |
undivided local government fund; | 8689 |
(c) With respect to taxes levied by the county for all other | 8690 |
purposes, the taxes charged and payable for such purposes against | 8691 |
all property on the tax list of real and public utility property | 8692 |
for tax year 2009, excluding taxes charged and payable for the | 8693 |
purpose of paying debt charges; | 8694 |
(d) The sum of the amounts distributed to the county in | 8695 |
calendar year 2010 for the taxes levied pursuant to sections | 8696 |
5739.021 and 5741.021 of the Revised Code. | 8697 |
(29) "Total resources," in the case of a municipal | 8698 |
corporation, means the sum of the amounts in divisions (A)(29)(a) | 8699 |
to (g) of this section less any reduction required under division | 8700 |
(A)(32) or (33) of this section. | 8701 |
(a) The sum of the payments received by the municipal | 8702 |
corporation in calendar year 2010 for current expense levy losses | 8703 |
under division (A)(1) of section 5727.86 and divisions (A)(1) and | 8704 |
(2) of section 5751.22 of the Revised Code as they existed at that | 8705 |
time; | 8706 |
(b) The municipal corporation's percentage share of county | 8707 |
undivided local government fund allocations as certified to the | 8708 |
tax commissioner for calendar year 2010 by the county auditor | 8709 |
under division (J) of section 5747.51 of the Revised Code or | 8710 |
division (F) of section 5747.53 of the Revised Code multiplied by | 8711 |
the total amount actually distributed in calendar year 2010 from | 8712 |
the county undivided local government fund; | 8713 |
(c) The sum of the amounts distributed to the municipal | 8714 |
corporation in calendar year 2010 pursuant to section 5747.50 of | 8715 |
the Revised Code; | 8716 |
(d) With respect to taxes levied by the municipal | 8717 |
corporation, the taxes charged and payable against all property on | 8718 |
the tax list of real and public utility property for current | 8719 |
expenses, defined in division (A) | 8720 |
year 2009; | 8721 |
(e) The amount of admissions tax collected by the municipal | 8722 |
corporation in calendar year 2008, or if such information has not | 8723 |
yet been reported to the tax commissioner, in the most recent year | 8724 |
before 2008 for which the municipal corporation has reported data | 8725 |
to the commissioner; | 8726 |
(f) The amount of income taxes collected by the municipal | 8727 |
corporation in calendar year 2008, or if such information has not | 8728 |
yet been reported to the tax commissioner, in the most recent year | 8729 |
before 2008 for which the municipal corporation has reported data | 8730 |
to the commissioner; | 8731 |
(g) The municipal corporation's median estate tax | 8732 |
collections. | 8733 |
(30) "Total resources," in the case of a township, means the | 8734 |
sum of the amounts in divisions (A)(30)(a) to (c) of this section | 8735 |
less any reduction required under division (A)(32) or (33) of this | 8736 |
section. | 8737 |
(a) The sum of the payments received by the township in | 8738 |
calendar year 2010 pursuant to division (A)(1) of section 5727.86 | 8739 |
of the Revised Code and divisions (A)(1) and (2) of section | 8740 |
5751.22 of the Revised Code as they existed at that time, | 8741 |
excluding payments received for debt purposes; | 8742 |
(b) The township's percentage share of county undivided local | 8743 |
government fund allocations as certified to the tax commissioner | 8744 |
for calendar year 2010 by the county auditor under division (J) of | 8745 |
section 5747.51 of the Revised Code or division (F) of section | 8746 |
5747.53 of the Revised Code multiplied by the total amount | 8747 |
actually distributed in calendar year 2010 from the county | 8748 |
undivided local government fund; | 8749 |
(c) With respect to taxes levied by the township, the taxes | 8750 |
charged and payable against all property on the tax list of real | 8751 |
and public utility property for tax year 2009 excluding taxes | 8752 |
charged and payable for the purpose of paying debt charges. | 8753 |
(31) "Total resources," in the case of a local taxing unit | 8754 |
that is not a county, municipal corporation, or township, means | 8755 |
the sum of the amounts in divisions (A)(31)(a) to (e) of this | 8756 |
section less any reduction required under division (A)(32) of this | 8757 |
section. | 8758 |
(a) The sum of the payments received by the local taxing unit | 8759 |
in calendar year 2010 pursuant to division (A)(1) of section | 8760 |
5727.86 of the Revised Code and divisions (A)(1) and (2) of | 8761 |
section 5751.22 of the Revised Code as they existed at that time; | 8762 |
(b) The local taxing unit's percentage share of county | 8763 |
undivided local government fund allocations as certified to the | 8764 |
tax commissioner for calendar year 2010 by the county auditor | 8765 |
under division (J) of section 5747.51 of the Revised Code or | 8766 |
division (F) of section 5747.53 of the Revised Code multiplied by | 8767 |
the total amount actually distributed in calendar year 2010 from | 8768 |
the county undivided local government fund; | 8769 |
(c) With respect to taxes levied by the local taxing unit, | 8770 |
the taxes charged and payable against all property on the tax list | 8771 |
of real and public utility property for tax year 2009 excluding | 8772 |
taxes charged and payable for the purpose of paying debt charges; | 8773 |
(d) The amount received from the tax commissioner during | 8774 |
calendar year 2010 for sales or use taxes authorized under | 8775 |
sections 5739.023 and 5741.022 of the Revised Code; | 8776 |
(e) For institutions of higher education receiving tax | 8777 |
revenue from a local levy, as identified in section 3358.02 of the | 8778 |
Revised Code, the final state share of instruction allocation for | 8779 |
fiscal year 2010 as calculated by the board of regents and | 8780 |
reported to the state controlling board. | 8781 |
(32) If a fixed-rate levy that is a qualifying levy is not | 8782 |
8783 | |
"total resources" used to compute payments to be made under | 8784 |
division (C)(12) of section 5751.21 or division (A)(1)(b) or (c) | 8785 |
of section 5751.22 of the Revised Code in the tax years following | 8786 |
the last year the levy is
| 8787 |
reduced | 8788 |
attributable to the fixed-rate levy loss of that levy as would be | 8789 |
computed under division (C)(2) of section 5727.85, division (A)(1) | 8790 |
of section 5727.85, divisions (C)(8) and (9) of section 5751.21, | 8791 |
or division (A)(1) of section 5751.22 of the Revised Code. | 8792 |
(33) In the case of a county, municipal corporation, school | 8793 |
district, or township with fixed-rate levy losses attributable to | 8794 |
a tax levied under section 5705.23 of the Revised Code, "total | 8795 |
resources" used to compute payments to be made under division | 8796 |
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86, | 8797 |
division (C)(12) of section 5751.21, or division (A)(1)(c) of | 8798 |
section 5751.22 of the Revised Code shall be reduced by the | 8799 |
amounts described in divisions (A)(34)(a) to (c) of this section | 8800 |
to the extent that those amounts were included in calculating the | 8801 |
"total resources" of the school district or local taxing unit | 8802 |
under division (A)(22), (28), (29), or (30) of this section. | 8803 |
(34) "Total library resources," in the case of a county, | 8804 |
municipal corporation, school district, or township public library | 8805 |
that receives the proceeds of a tax levied under section 5705.23 | 8806 |
of the Revised Code, means the sum of the amounts in divisions | 8807 |
(A)(34)(a) to (c) of this section less any reduction required | 8808 |
under division (A)(32) of this section. | 8809 |
(a) The sum of the payments received by the county, municipal | 8810 |
corporation, school district, or township public library in | 8811 |
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the | 8812 |
Revised Code, as they existed at that time, for fixed-rate levy | 8813 |
losses attributable to a tax levied under section 5705.23 of the | 8814 |
Revised Code for the benefit of the public library; | 8815 |
(b) The public library's percentage share of county undivided | 8816 |
local government fund allocations as certified to the tax | 8817 |
commissioner for calendar year 2010 by the county auditor under | 8818 |
division (J) of section 5747.51 of the Revised Code or division | 8819 |
(F) of section 5747.53 of the Revised Code multiplied by the total | 8820 |
amount actually distributed in calendar year 2010 from the county | 8821 |
undivided local government fund; | 8822 |
(c) With respect to a tax levied pursuant to section 5705.23 | 8823 |
of the Revised Code for the benefit of the public library, the | 8824 |
amount of such tax that is charged and payable against all | 8825 |
property on the tax list of real and public utility property for | 8826 |
tax year 2009 excluding any tax that is charged and payable for | 8827 |
the purpose of paying debt charges. | 8828 |
(35) "Municipal current expense property tax levies" means | 8829 |
all property tax levies of a municipality, except those with the | 8830 |
following levy names: airport resurfacing; bond or any levy name | 8831 |
including the word "bond"; capital improvement or any levy name | 8832 |
including the word "capital"; debt or any levy name including the | 8833 |
word "debt"; equipment or any levy name including the word | 8834 |
"equipment," unless the levy is for combined operating and | 8835 |
equipment; employee termination fund; fire pension or any levy | 8836 |
containing the word "pension," including police pensions; | 8837 |
fireman's fund or any practically similar name; sinking fund; road | 8838 |
improvements or any levy containing the word "road"; fire truck or | 8839 |
apparatus; flood or any levy containing the word "flood"; | 8840 |
conservancy district; county health; note retirement; sewage, or | 8841 |
any levy containing the words "sewage" or "sewer"; park | 8842 |
improvement; parkland acquisition; storm drain; street or any levy | 8843 |
name containing the word "street"; lighting, or any levy name | 8844 |
containing the word "lighting"; and water. | 8845 |
| 8846 |
of a school district or joint vocational school district, the sum | 8847 |
of the payments received by the school district in fiscal year | 8848 |
2011 pursuant to divisions (C)(10) and (11) of section 5751.21 of | 8849 |
the Revised Code to the extent paid for current expense levies. In | 8850 |
the case of a municipal corporation, "current expense TPP | 8851 |
allocation" means the sum of the payments received by the | 8852 |
municipal corporation in calendar year 2010 pursuant to divisions | 8853 |
(A)(1) and (2) of section 5751.22 of the Revised Code to the | 8854 |
extent paid for municipal current expense property tax levies as | 8855 |
defined in division (A) | 8856 |
such payments received for current expense levy losses | 8857 |
attributable to a tax levied under section 5705.23 of the Revised | 8858 |
Code. If a fixed-rate levy that is a qualifying levy is not | 8859 |
8860 | |
"current expense TPP allocation" used to compute payments to be | 8861 |
made under division (C)(12) of section 5751.21 or division | 8862 |
(A)(1)(b) or (c) of section 5751.22 of the Revised Code in the tax | 8863 |
years following the last year the levy is | 8864 |
payable shall be reduced
| 8865 |
payments are attributable to the fixed-rate levy loss of that levy | 8866 |
as would be computed under divisions (C)(10) and (11) of section | 8867 |
5751.21 or division (A)(1) of section 5751.22 of the Revised Code. | 8868 |
| 8869 |
by a local taxing unit in calendar year 2010 pursuant to divisions | 8870 |
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding | 8871 |
any such payments received for fixed-rate levy losses attributable | 8872 |
to a tax levied under section 5705.23 of the Revised Code. If a | 8873 |
fixed-rate levy that is a qualifying levy is not | 8874 |
and payable in any year after tax year 2010, "TPP allocation" used | 8875 |
to compute payments to be made under division (A)(1)(b) or (c) of | 8876 |
section 5751.22 of the Revised Code in the tax years following the | 8877 |
last year the levy is | 8878 |
8879 | |
attributable to the fixed-rate levy loss of that levy as would be | 8880 |
computed under division (A)(1) of that section. | 8881 |
| 8882 |
school district or joint vocational school district, the sum of | 8883 |
the amounts received in fiscal year 2011 pursuant to divisions | 8884 |
(C)(10) and (11) and (D) of section 5751.21 of the Revised Code. | 8885 |
In the case of a local taxing unit, "total TPP allocation" means | 8886 |
the sum of payments received by the unit in calendar year 2010 | 8887 |
pursuant to divisions (A)(1), (2), and (3) of section 5751.22 of | 8888 |
the Revised Code. If a fixed-rate levy that is a qualifying levy | 8889 |
is not
| 8890 |
2010, "total TPP allocation" used to compute payments to be made | 8891 |
under division (C)(12) of section 5751.21 or division (A)(1)(b) or | 8892 |
(c) of section 5751.22 of the Revised Code in the tax years | 8893 |
following the last year the levy is | 8894 |
shall be reduced | 8895 |
are attributable to the fixed-rate levy loss of that levy as would | 8896 |
be computed under divisions (C)(10) and (11) of section 5751.21 or | 8897 |
division (A)(1) of section 5751.22 of the Revised Code. | 8898 |
| 8899 |
difference of total TPP allocation minus the sum of current | 8900 |
expense TPP allocation and the portion of total TPP allocation | 8901 |
constituting reimbursement for debt levies, pursuant to division | 8902 |
(D) of section 5751.21 of the Revised Code in the case of a school | 8903 |
district or joint vocational school district and pursuant to | 8904 |
division (A)(3) of section 5751.22 of the Revised Code in the case | 8905 |
of a municipal corporation. | 8906 |
| 8907 |
of payments received by a county, municipal corporation, school | 8908 |
district, or township public library in calendar year 2010 | 8909 |
pursuant to section 5751.22 of the Revised Code for fixed-rate | 8910 |
levy losses attributable to a tax levied under section 5705.23 of | 8911 |
the Revised Code. If a fixed-rate levy authorized under section | 8912 |
5705.23 of the Revised Code that is a qualifying levy is not | 8913 |
charged and payable in any year after tax year 2010, "TPP | 8914 |
allocation for library purposes" used to compute payments to be | 8915 |
made under division (A)(1)(d) of section 5751.22 of the Revised | 8916 |
Code in the tax years following the last year the levy is charged | 8917 |
and payable shall be reduced to the extent that the payments are | 8918 |
attributable to the fixed-rate levy loss of that levy as would be | 8919 |
computed under division (A)(1) of section 5751.22 of the Revised | 8920 |
Code. | 8921 |
(41) "Threshold per cent" means, in the case of a school | 8922 |
district or joint vocational school district, two per cent for | 8923 |
fiscal year 2012 and four per cent for fiscal years 2013 and | 8924 |
thereafter. In the case of a local taxing unit or public library | 8925 |
that receives the proceeds of a tax levied under section 5705.23 | 8926 |
of the Revised Code, "threshold per cent" means two per cent for | 8927 |
tax year 2011, four per cent for tax year 2012, and six per cent | 8928 |
for tax years 2013 and thereafter. | 8929 |
(B) The commercial activities tax receipts fund is hereby | 8930 |
created in the state treasury and shall consist of money arising | 8931 |
from the tax imposed under this chapter. Eighty-five | 8932 |
one-hundredths of one per cent of the money credited to that fund | 8933 |
shall be credited to the | 8934 |
enhancement fund | 8935 |
and shall be used to defray the costs incurred by the department | 8936 |
of taxation in administering the tax imposed by this chapter and | 8937 |
in implementing tax reform measures. The remainder in the | 8938 |
commercial activities tax receipts fund shall be credited for each | 8939 |
fiscal year in the following percentages to the general revenue | 8940 |
fund, to the school district tangible property tax replacement | 8941 |
fund, which is hereby created in the state treasury for the | 8942 |
purpose of making the payments described in section 5751.21 of the | 8943 |
Revised Code, and to the local government tangible property tax | 8944 |
replacement fund, which is hereby created in the state treasury | 8945 |
for the purpose of making the payments described in section | 8946 |
5751.22 of the Revised Code, in the following percentages: | 8947 |
Fiscal year | General Revenue Fund | School District Tangible Property Tax Replacement Fund | Local Government Tangible Property Tax Replacement Fund | 8948 | |
2006 | 67.7% | 22.6% | 9.7% | 8949 | |
2007 | 0% | 70.0% | 30.0% | 8950 | |
2008 | 0% | 70.0% | 30.0% | 8951 | |
2009 | 0% | 70.0% | 30.0% | 8952 | |
2010 | 0% | 70.0% | 30.0% | 8953 | |
2011 | 0% | 70.0% | 30.0% | 8954 | |
2012 | 25.0% | 52.5% | 22.5% | 8955 | |
2013 and thereafter | 50.0% | 35.0% | 15.0% | 8956 |
(C) Not later than September 15, 2005, the tax commissioner | 8957 |
shall determine for each school district, joint vocational school | 8958 |
district, and local taxing unit its machinery and equipment, | 8959 |
inventory property, furniture and fixtures property, and telephone | 8960 |
property tax value losses, which are the applicable amounts | 8961 |
described in divisions (C)(1), (2), (3), and (4) of this section, | 8962 |
except as provided in division (C)(5) of this section: | 8963 |
(1) Machinery and equipment property tax value loss is the | 8964 |
taxable value of machinery and equipment property as reported by | 8965 |
taxpayers for tax year 2004 multiplied by: | 8966 |
(a) For tax year 2006, thirty-three and eight-tenths per | 8967 |
cent; | 8968 |
(b) For tax year 2007, sixty-one and three-tenths per cent; | 8969 |
(c) For tax year 2008, eighty-three per cent; | 8970 |
(d) For tax year 2009 and thereafter, one hundred per cent. | 8971 |
(2) Inventory property tax value loss is the taxable value of | 8972 |
inventory property as reported by taxpayers for tax year 2004 | 8973 |
multiplied by: | 8974 |
(a) For tax year 2006, a fraction, the numerator of which is | 8975 |
five and three-fourths and the denominator of which is | 8976 |
twenty-three; | 8977 |
(b) For tax year 2007, a fraction, the numerator of which is | 8978 |
nine and one-half and the denominator of which is twenty-three; | 8979 |
(c) For tax year 2008, a fraction, the numerator of which is | 8980 |
thirteen and one-fourth and the denominator of which is | 8981 |
twenty-three; | 8982 |
(d) For tax year 2009 and thereafter a fraction, the | 8983 |
numerator of which is seventeen and the denominator of which is | 8984 |
twenty-three. | 8985 |
(3) Furniture and fixtures property tax value loss is the | 8986 |
taxable value of furniture and fixture property as reported by | 8987 |
taxpayers for tax year 2004 multiplied by: | 8988 |
(a) For tax year 2006, twenty-five per cent; | 8989 |
(b) For tax year 2007, fifty per cent; | 8990 |
(c) For tax year 2008, seventy-five per cent; | 8991 |
(d) For tax year 2009 and thereafter, one hundred per cent. | 8992 |
The taxable value of property reported by taxpayers used in | 8993 |
divisions (C)(1), (2), and (3) of this section shall be such | 8994 |
values as determined to be final by the tax commissioner as of | 8995 |
August 31, 2005. Such determinations shall be final except for any | 8996 |
correction of a clerical error that was made prior to August 31, | 8997 |
2005, by the tax commissioner. | 8998 |
(4) Telephone property tax value loss is the taxable value of | 8999 |
telephone property as taxpayers would have reported that property | 9000 |
for tax year 2004 if the assessment rate for all telephone | 9001 |
property for that year were twenty-five per cent, multiplied by: | 9002 |
(a) For tax year 2006, zero per cent; | 9003 |
(b) For tax year 2007, zero per cent; | 9004 |
(c) For tax year 2008, zero per cent; | 9005 |
(d) For tax year 2009, sixty per cent; | 9006 |
(e) For tax year 2010, eighty per cent; | 9007 |
(f) For tax year 2011 and thereafter, one hundred per cent. | 9008 |
(5) Division (C)(5) of this section applies to any school | 9009 |
district, joint vocational school district, or local taxing unit | 9010 |
in a county in which is located a facility currently or formerly | 9011 |
devoted to the enrichment or commercialization of uranium or | 9012 |
uranium products, and for which the total taxable value of | 9013 |
property listed on the general tax list of personal property for | 9014 |
any tax year from tax year 2001 to tax year 2004 was fifty per | 9015 |
cent or less of the taxable value of such property listed on the | 9016 |
general tax list of personal property for the next preceding tax | 9017 |
year. | 9018 |
In computing the fixed-rate levy losses under divisions | 9019 |
(D)(1), (2), and (3) of this section for any school district, | 9020 |
joint vocational school district, or local taxing unit to which | 9021 |
division (C)(5) of this section applies, the taxable value of such | 9022 |
property as listed on the general tax list of personal property | 9023 |
for tax year 2000 shall be substituted for the taxable value of | 9024 |
such property as reported by taxpayers for tax year 2004, in the | 9025 |
taxing district containing the uranium facility, if the taxable | 9026 |
value listed for tax year 2000 is greater than the taxable value | 9027 |
reported by taxpayers for tax year 2004. For the purpose of making | 9028 |
the computations under divisions (D)(1), (2), and (3) of this | 9029 |
section, the tax year 2000 valuation is to be allocated to | 9030 |
machinery and equipment, inventory, and furniture and fixtures | 9031 |
property in the same proportions as the tax year 2004 values. For | 9032 |
the purpose of the calculations in division (A) of section 5751.21 | 9033 |
of the Revised Code, the tax year 2004 taxable values shall be | 9034 |
used. | 9035 |
To facilitate the calculations required under division (C) of | 9036 |
this section, the county auditor, upon request from the tax | 9037 |
commissioner, shall provide by August 1, 2005, the values of | 9038 |
machinery and equipment, inventory, and furniture and fixtures for | 9039 |
all single-county personal property taxpayers for tax year 2004. | 9040 |
(D) Not later than September 15, 2005, the tax commissioner | 9041 |
shall determine for each tax year from 2006 through 2009 for each | 9042 |
school district, joint vocational school district, and local | 9043 |
taxing unit its machinery and equipment, inventory, and furniture | 9044 |
and fixtures fixed-rate levy losses, and for each tax year from | 9045 |
2006 through 2011 its telephone property fixed-rate levy loss. | 9046 |
Except as provided in division (F) of this section, such losses | 9047 |
are the applicable amounts described in divisions (D)(1), (2), | 9048 |
(3), and (4) of this section: | 9049 |
(1) The machinery and equipment fixed-rate levy loss is the | 9050 |
machinery and equipment property tax value loss multiplied by the | 9051 |
sum of the tax rates of fixed-rate qualifying levies. | 9052 |
(2) The inventory fixed-rate loss is the inventory property | 9053 |
tax value loss multiplied by the sum of the tax rates of | 9054 |
fixed-rate qualifying levies. | 9055 |
(3) The furniture and fixtures fixed-rate levy loss is the | 9056 |
furniture and fixture property tax value loss multiplied by the | 9057 |
sum of the tax rates of fixed-rate qualifying levies. | 9058 |
(4) The telephone property fixed-rate levy loss is the | 9059 |
telephone property tax value loss multiplied by the sum of the tax | 9060 |
rates of fixed-rate qualifying levies. | 9061 |
(E) Not later than September 15, 2005, the tax commissioner | 9062 |
shall determine for each school district, joint vocational school | 9063 |
district, and local taxing unit its fixed-sum levy loss. The | 9064 |
fixed-sum levy loss is the amount obtained by subtracting the | 9065 |
amount described in division (E)(2) of this section from the | 9066 |
amount described in division (E)(1) of this section: | 9067 |
(1) The sum of the machinery and equipment property tax value | 9068 |
loss, the inventory property tax value loss, and the furniture and | 9069 |
fixtures property tax value loss, and, for 2008 through 2010, the | 9070 |
telephone property tax value loss of the district or unit | 9071 |
multiplied by the sum of the fixed-sum tax rates of qualifying | 9072 |
levies. For 2006 through 2010, this computation shall include all | 9073 |
qualifying levies remaining in effect for the current tax year and | 9074 |
any school district levies | 9075 |
section 5705.194 or 5705.213 of the Revised Code that are | 9076 |
qualifying levies not remaining in effect for the current year. | 9077 |
For 2011 through 2017 in the case of school district levies | 9078 |
9079 | |
the Revised Code and for all years after 2010 in the case of other | 9080 |
fixed-sum levies, this computation shall include only qualifying | 9081 |
levies remaining in effect for the current year. For purposes of | 9082 |
this computation, a qualifying school district levy | 9083 |
charged and payable under section 5705.194 or 5705.213 of the | 9084 |
Revised Code remains in effect in a year after 2010 only if, for | 9085 |
that year, the board of education levies a school district levy | 9086 |
9087 | |
5705.213, or 5705.219 of the Revised Code for an annual sum at | 9088 |
least equal to the annual sum levied by the board in tax year 2004 | 9089 |
less the amount of the payment certified under this division for | 9090 |
2006. | 9091 |
(2) The total taxable value in tax year 2004 less the sum of | 9092 |
the machinery and equipment, inventory, furniture and fixtures, | 9093 |
and telephone property tax value losses in each school district, | 9094 |
joint vocational school district, and local taxing unit multiplied | 9095 |
by one-half of one mill per dollar. | 9096 |
(3) For the calculations in divisions (E)(1) and (2) of this | 9097 |
section, the tax value losses are those that would be calculated | 9098 |
for tax year 2009 under divisions (C)(1), (2), and (3) of this | 9099 |
section and for tax year 2011 under division (C)(4) of this | 9100 |
section. | 9101 |
(4) To facilitate the calculation under divisions (D) and (E) | 9102 |
of this section, not later than September 1, 2005, any school | 9103 |
district, joint vocational school district, or local taxing unit | 9104 |
that has a qualifying levy that was approved at an election | 9105 |
conducted during 2005 before September 1, 2005, shall certify to | 9106 |
the tax commissioner a copy of the county auditor's certificate of | 9107 |
estimated property tax millage for such levy as required under | 9108 |
division (B) of section 5705.03 of the Revised Code, which is the | 9109 |
rate that shall be used in the calculations under such divisions. | 9110 |
If the amount determined under division (E) of this section | 9111 |
for any school district, joint vocational school district, or | 9112 |
local taxing unit is greater than zero, that amount shall equal | 9113 |
the reimbursement to be paid pursuant to division (E) of section | 9114 |
5751.21 or division (A)(3) of section 5751.22 of the Revised Code, | 9115 |
and the one-half of one mill that is subtracted under division | 9116 |
(E)(2) of this section shall be apportioned among all contributing | 9117 |
fixed-sum levies in the proportion that each levy bears to the sum | 9118 |
of all fixed-sum levies within each school district, joint | 9119 |
vocational school district, or local taxing unit. | 9120 |
(F) If a school district levies a tax under section 5705.219 | 9121 |
of the Revised Code, the fixed-rate levy loss for qualifying | 9122 |
levies, to the extent repealed under that section, shall equal the | 9123 |
sum of the following amounts in lieu of the amounts computed for | 9124 |
such levies under division (D) of this section: | 9125 |
(1) The sum of the rates of qualifying levies to the extent | 9126 |
so repealed multiplied by the sum of the machinery and equipment, | 9127 |
inventory, and furniture and fixtures tax value losses for 2009 as | 9128 |
determined under that division; | 9129 |
(2) The sum of the rates of qualifying levies to the extent | 9130 |
so repealed multiplied by the telephone property tax value loss | 9131 |
for 2011 as determined under that division. | 9132 |
The fixed-rate levy losses for qualifying levies to the | 9133 |
extent not repealed under section 5705.219 of the Revised Code | 9134 |
shall be as determined under division (D) of this section. The | 9135 |
revised fixed-rate levy losses determined under this division and | 9136 |
division (D) of this section first apply in the year following the | 9137 |
first year the district levies the tax under section 5705.219 of | 9138 |
the Revised Code. | 9139 |
(G) Not later than October 1, 2005, the tax commissioner | 9140 |
shall certify to the department of education for every school | 9141 |
district and joint vocational school district the machinery and | 9142 |
equipment, inventory, furniture and fixtures, and telephone | 9143 |
property tax value losses determined under division (C) of this | 9144 |
section, the machinery and equipment, inventory, furniture and | 9145 |
fixtures, and telephone fixed-rate levy losses determined under | 9146 |
division (D) of this section, and the fixed-sum levy losses | 9147 |
calculated under division (E) of this section. The calculations | 9148 |
under divisions (D) and (E) of this section shall separately | 9149 |
display the levy loss for each levy eligible for reimbursement. | 9150 |
(H) Not later than October 1, 2005, the tax commissioner | 9151 |
shall certify the amount of the fixed-sum levy losses to the | 9152 |
county auditor of each county in which a school district, joint | 9153 |
vocational school district, or local taxing unit with a fixed-sum | 9154 |
levy loss reimbursement has territory. | 9155 |
(I) Not later than the twenty-eighth day of February each | 9156 |
year beginning in 2011 and ending in 2014, the tax commissioner | 9157 |
shall certify to the department of education for each school | 9158 |
district first levying a tax under section 5705.219 of the Revised | 9159 |
Code in the preceding year the revised fixed-rate levy losses | 9160 |
determined under divisions (D) and (F) of this section. | 9161 |
Sec. 5751.22. (A) Not later than January 1, 2006, the tax | 9162 |
commissioner shall compute the payments to be made to each local | 9163 |
taxing unit, and to each public library that receives the proceeds | 9164 |
of a tax levied under section 5705.23 of the Revised Code, for | 9165 |
each year according to divisions (A)(1), (2), (3), and (4) of this | 9166 |
section as this section existed on that date, and shall distribute | 9167 |
the payments in the manner prescribed by division (C) of this | 9168 |
section. The calculation of the fixed-sum levy loss shall cover a | 9169 |
time period sufficient to include all fixed-sum levies for which | 9170 |
the commissioner determined, pursuant to division (E) of section | 9171 |
5751.20 of the Revised Code, that a fixed-sum levy loss is to be | 9172 |
reimbursed. | 9173 |
(1) Except as provided in division (A)(3) of this section, | 9174 |
for fixed-rate levy losses determined under division (D) of | 9175 |
section 5751.20 of the Revised Code, payments shall be made in an | 9176 |
amount equal to the following: | 9177 |
(a) For tax years 2006 through 2010, one hundred per cent of | 9178 |
such losses; | 9179 |
(b) For the payment in tax year 2011 to be made on or before | 9180 |
the twentieth day of November, the sum of the amount in division | 9181 |
(A)(1)(b)(i) or (ii) and division (A)(1)(b)(iii) of this section: | 9182 |
(i) If the ratio of six-sevenths of the TPP allocation to | 9183 |
total resources is equal to or less than the threshold per cent, | 9184 |
zero; | 9185 |
(ii) If the ratio of six-sevenths of the TPP allocation to | 9186 |
total resources is greater than the threshold per cent, the | 9187 |
difference of six-sevenths of the TPP allocation minus the product | 9188 |
of total resources multiplied by the threshold per cent; | 9189 |
(iii) In the case of a municipal corporation, six-sevenths of | 9190 |
the product of the non-current expense TPP allocation multiplied | 9191 |
by seventy-five per cent. | 9192 |
(c) For tax years 2012 and thereafter, the sum of the amount | 9193 |
in division (A)(1)(c)(i) or (ii) and division (A)(1)(c)(iii) of | 9194 |
this section: | 9195 |
(i) If the ratio of TPP allocation to total resources is | 9196 |
equal to or less than the threshold per cent, zero; | 9197 |
(ii) If the ratio of TPP allocation to total resources is | 9198 |
greater than the threshold per cent, the TPP allocation minus the | 9199 |
product of total resources multiplied by the threshold per cent; | 9200 |
(iii) In the case of a municipal corporation, non-current | 9201 |
expense TPP allocation multiplied by fifty per cent for tax year | 9202 |
2012 and twenty-five per cent for tax years 2013 and thereafter; | 9203 |
(d) For tax years 2012 and thereafter, in the case of a | 9204 |
county, school district, municipal corporation, or township public | 9205 |
library, the amount in division (A)(1)(d)(i) or (ii) of this | 9206 |
section: | 9207 |
(i) If the ratio of TPP allocation for library purposes to | 9208 |
total library resources is equal to or less than the threshold per | 9209 |
cent, zero; | 9210 |
(ii) If the ratio of TPP allocation for library purposes to | 9211 |
total library resources is greater than the threshold per cent, | 9212 |
the TPP allocation for library purposes minus the product of total | 9213 |
library resources multiplied by the threshold per cent. | 9214 |
(2) For fixed-sum levy losses determined under division (E) | 9215 |
of section 5751.20 of the Revised Code, payments shall be made in | 9216 |
the amount of one hundred per cent of the fixed-sum levy loss for | 9217 |
payments required to be made in 2006 | 9218 |
except that no payments shall be made for qualifying levies that | 9219 |
have expired. For payments required to be made in 2012 and | 9220 |
thereafter, payments shall be made in the amount of fifty per cent | 9221 |
of the fixed-sum levy loss until the qualifying levy has expired. | 9222 |
(3) For taxes levied within the ten-mill limitation or | 9223 |
pursuant to a municipal charter for debt purposes in tax year | 9224 |
2005, payments shall be made based on the schedule in division | 9225 |
(A)(1) of this section for each of the calendar years 2006 through | 9226 |
2010. For each of the calendar years 2011 through 2017, the | 9227 |
percentages for calendar year 2010 shall be used for taxes levied | 9228 |
within the ten-mill limitation or pursuant to a municipal charter | 9229 |
for debt purposes in tax year 2010, as long as such levies | 9230 |
continue to be used for debt purposes. If the purpose of such a | 9231 |
qualifying levy is changed, that levy becomes subject to the | 9232 |
payment schedules in divisions (A)(1)(a) to (h) of this section. | 9233 |
No payments shall be made for such levies after calendar year | 9234 |
2017. For the purposes of this division, taxes levied pursuant to | 9235 |
a municipal charter refer to taxes levied pursuant to a provision | 9236 |
of a municipal charter that permits the tax to be levied without | 9237 |
prior voter approval. | 9238 |
(B) Beginning in 2007, by the thirty-first day of January of | 9239 |
each year, the tax commissioner shall review the calculation | 9240 |
originally made under division (A) of this section of the | 9241 |
fixed-sum levy losses determined under division (E) of section | 9242 |
5751.20 of the Revised Code. If the commissioner determines that a | 9243 |
fixed-sum levy that had been scheduled to be reimbursed in the | 9244 |
current year has expired, a revised calculation for that and all | 9245 |
subsequent years shall be made. | 9246 |
(C) Payments to local taxing units and public libraries | 9247 |
required to be made under division (A) of this section shall be | 9248 |
paid from the local government tangible property tax replacement | 9249 |
fund to the county undivided income tax fund in the proper county | 9250 |
treasury. From May 2006 through November 2010, one-seventh of the | 9251 |
amount determined under that division shall be paid by the last | 9252 |
day of May each year, and three-sevenths shall be paid by the last | 9253 |
day of August and October each year. From May 2011 through | 9254 |
November 2013, one-seventh of the amount determined under that | 9255 |
division shall be paid on or before the last day of May each year, | 9256 |
and six-sevenths shall be paid on or before the | 9257 |
thirtieth day of November each year, except that in November 2011, | 9258 |
the payment shall equal one hundred per cent of the amount | 9259 |
calculated for that payment. Beginning in May 2014, one-half of | 9260 |
the amount determined under that division shall be paid on or | 9261 |
before the last day of May each year, and one-half shall be paid | 9262 |
on or before the | 9263 |
Within | 9264 |
county treasurer shall distribute amounts determined under | 9265 |
division (A) of this section to the proper local taxing unit or | 9266 |
public library as if they had been levied and collected as taxes, | 9267 |
and the local taxing unit or public library shall apportion the | 9268 |
amounts so received among its funds in the same proportions as if | 9269 |
those amounts had been levied and collected as taxes. | 9270 |
(D) For each of the fiscal years 2006 through 2018, if the | 9271 |
total amount in the local government tangible property tax | 9272 |
replacement fund is insufficient to make all payments under | 9273 |
division (C) of this section at the times the payments are to be | 9274 |
made, the director of budget and management shall transfer from | 9275 |
the general revenue fund to the local government tangible property | 9276 |
tax replacement fund the difference between the total amount to be | 9277 |
paid and the amount in the local government tangible property tax | 9278 |
replacement fund. For each fiscal year after 2018, at the time | 9279 |
payments under division (A)(2) of this section are to be made, the | 9280 |
director of budget and management shall transfer from the general | 9281 |
revenue fund to the local government property tax replacement fund | 9282 |
the amount necessary to make such payments. | 9283 |
(E) On the fifteenth day of June of each year from 2006 | 9284 |
through 2018, the director of budget and management may transfer | 9285 |
any balance in the local government tangible property tax | 9286 |
replacement fund to the general revenue fund. | 9287 |
(F) If all or a part of the territories of two or more local | 9288 |
taxing units are merged, or unincorporated territory of a township | 9289 |
is annexed by a municipal corporation, the tax commissioner shall | 9290 |
adjust the payments made under this section to each of the local | 9291 |
taxing units in proportion to the square mileage of the merged or | 9292 |
annexed territory as a percentage of the total square mileage of | 9293 |
the jurisdiction from which the territory originated, or as | 9294 |
otherwise provided by a written agreement between the legislative | 9295 |
authorities of the local taxing units certified to the | 9296 |
commissioner not later than the first day of June of the calendar | 9297 |
year in which the payment is to be made. | 9298 |
Section 2. That existing sections 122.85, 131.02, 349.01, | 9299 |
1545.21, 1701.86, 1702.47, 3769.28, 4301.42, 4303.33, 4701.01, | 9300 |
4701.04, 5703.261, 5703.37, 5703.47, 5705.313, 5709.084, 5709.40, | 9301 |
5709.41, 5709.73, 5709.78, 5727.84, 5727.86, 5731.39, 5733.056, | 9302 |
5735.02, 5735.03, 5735.35, 5739.01, 5739.02, 5739.021, 5739.023, | 9303 |
5739.026, 5739.04, 5739.17, 5741.08, 5743.20, 5743.61, 5743.66, | 9304 |
5747.082, 5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05, | 9305 |
5751.051, 5751.12, 5751.20, and 5751.22 and section 5751.032 of | 9306 |
the Revised Code are hereby repealed. | 9307 |
Section 757.10. Notwithstanding sections 5713.01 and 5715.24 | 9308 |
of the Revised Code, for the purpose of equalizing and | 9309 |
regionalizing real property assessment cycles, beginning in tax | 9310 |
year 2014 and continuing for not more than five years, the Tax | 9311 |
Commissioner may extend the revaluation of real property required | 9312 |
in any county by not more than one year. | 9313 |
Section 757.20. The Tax Commissioner is not required to issue | 9314 |
the certifications that are or were otherwise required to be made | 9315 |
on or before May 15, 2012, or June 1, 2012, under sections | 9316 |
3317.026, 3317.027, 3317.028, and divisions (A)(4), (6), and (7) | 9317 |
of section 3317.021 of the Revised Code. This section is intended | 9318 |
to be remedial in nature and to be construed liberally to | 9319 |
accomplish the purpose of avoiding unnecessary certifications. | 9320 |
Section 757.30. Section 5709.084 of the Revised Code, as | 9321 |
amended by this act, is remedial in nature and applies to the tax | 9322 |
years at issue in any application for exemption from taxation or | 9323 |
any appeal from such an application pending before the Tax | 9324 |
Commissioner, the Board of Tax Appeals, any Court of Appeals, or | 9325 |
the Supreme Court on the effective date of this act and to the | 9326 |
property that is the subject of any such application or appeal. | 9327 |
Section 757.40. The amendment by this act of section 5751.03 | 9328 |
of the Revised Code takes effect January 1, 2013. No taxpayer | 9329 |
shall carry forward any unused exclusion amount from calendar year | 9330 |
2012 to calendar year 2013, but shall fully utilize any such | 9331 |
amount in calendar year 2012. | 9332 |
Section 806.10. The items of law contained in this act, and | 9333 |
their applications, are severable. If any item of law contained in | 9334 |
this act, or if any application of any item of law contained in | 9335 |
this act, is held invalid, the invalidity does not affect other | 9336 |
items of law contained in this act and their applications that can | 9337 |
be given effect without the invalid item of law or application. | 9338 |
Section 812.10. Sections subject to referendum: general | 9339 |
effective date. Except as otherwise provided in this act, the | 9340 |
amendment, enactment, or repeal by this act of a section is | 9341 |
subject to the referendum under Ohio Constitution, Article II, | 9342 |
Section 1c and therefore takes effect on the ninety-first day | 9343 |
after this act is filed with the Secretary of State. | 9344 |
Section 812.20. Sections exempt from referendum: general | 9345 |
effective date. The amendment, enactment, or repeal by this act of | 9346 |
the following sections is exempt from the referendum under Ohio | 9347 |
Constitution, Article II, Section 1d and section 1.471 of the | 9348 |
Revised Code and therefore takes effect immediately when this act | 9349 |
becomes law: | 9350 |
Sections 5727.84, 5727.86, 5751.20, and 5751.22 of the | 9351 |
Revised Code. | 9352 |
Section 757.20 of this act. | 9353 |
Section 815.10. Section 5751.01 of the Revised Code is | 9354 |
presented in this act as a composite of the section as amended by | 9355 |
both Am. Sub. H.B. 153 and Sub. H.B. 277 of the 129th General | 9356 |
Assembly. The General Assembly, applying the principle stated in | 9357 |
division (B) of section 1.52 of the Revised Code that amendments | 9358 |
are to be harmonized if reasonably capable of simultaneous | 9359 |
operation, finds that the composite is the resulting version of | 9360 |
the section in effect prior to the effective date of the section | 9361 |
as presented in this act. | 9362 |