As Passed by the Senate

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


Representative Beck 

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

Senators Beagle, Coley, Hite, Manning 



A BILL
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


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

       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; videogamesvideo 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. For the fiscal 168
biennium beginning July 1, 2009, and ending June 30, 2011, not 169
more than thirty million dollars of tax credit may be allowed, of 170
which not more than ten million dollars of tax credit may be 171
allowed in the first year of the biennium. In succeeding fiscal 172
biennia, notNot more than twentyforty million dollars of tax 173
credit may be allowed per fiscal biennium beginning on or after 174
July 1, 2011, and not more than tentwenty million dollars may be 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 payment of all franchise, sales, use, 674
and highway use taxes accruing up to the date of dissolution or 675
showing that such payment has been adequately guaranteed,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 and commercial activity taxes accruing up to 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) An affidavit of one or more of the persons executing the 781
certificate of dissolution or of an officer of the corporation 782
containing a statement of the counties, if any, in this state in 783
which the corporation has personal property subject to personal 784
property taxes or a statement that the corporation is of a type 785
required to pay personal property taxes to state authorities only;786

       (2) A receipt, certificate, or other evidence showing the 787
payment of all personal property taxes accruing up to the date of 788
such filing or, if applicable, to the later date specified in the 789
certificate of dissolution in accordance with division (E) of this 790
section, unless the affidavit provided for in division (G)(1) of 791
this section states that the corporation has in this state no 792
personal property subject to personal property taxes;793

       (3) A receipt, certificate, or other evidence from the 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

       (4)(2) A receipt, certificate, or other evidence showing that799
the payment of all sales, use, and highway use taxes accruing up 800
to the date of such filing or, if applicable, to the later date 801
specified in the certificate ofcorporation has paid all taxes 802
imposed under the laws of this state that are or will be due from 803
the corporation on the date of the dissolution in accordance with 804
division (E) of this section, or that such payment has been 805
adequately guaranteed;806

       (5)(3) In lieu of the receipt, certificate, or other evidence 807
described in division (G)(1) or (2), (3), or (4) of this section, 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. Such moneys shall be collected by the 828
commissioner withinWithin ten days after the close of sucha829
meeting and shall be sent back to, the permit holder who paid the 830
tax. Such permit holdershall prepare and transmit to the tax 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 moneysamount collected to thesuch chief 845
fiscal officers of the municipal corporations or townships in 846
which such horse-racing meeting took place and in which any such 847
facilities or accessory uses therefor were located. Such moneys848
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 and wholesale dealers in beer, wholesale dealers in 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, and every 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, and the amount of beer imported into this state 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 of, or registration issued to a certified public 1068
accountant issued under the laws of another state that authorizes 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 chief executive of any office of a public accounting 1162
firm located in or doing business in this state shall hold1163
designate an individual who holds an Ohio permit or a foreign 1164
certificatewho shall be responsible for the proper registration 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) The person has graduated with a baccalaureate or higher 1215
degree conferred by a college or university approved by the board.1216

       (6) The person meets or exceeds the continuing education 1217
requirements that the board establishes by rule.1218

       (7)(6) A person who holds a professional license, 1219
registration, or certification issued by this state or another 1220
state complies with the requirements of that license, 1221
registration, or certification.1222

       (8)(7) The person abides by the code of conduct of the 1223
American institute of certified public accountants or a comparable 1224
code of professional conduct that the board adopts by rule.1225

       (9)(8) The person complies with all applicable provisions of 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. The board may 1249
establish fair and reasonable compensation for the committee 1250
members to be paid for time they spend conducting committee 1251
business.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 guidelines, the board, in 1272
its discretion, may hold a hearing to review the results of the 1273
peer review report. If the board, after conducting the hearingor 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 issue an order that requiresrequire both of the 1277
following:1278

       (a) Remedial or disciplinary action, which may include any of 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

       (iv) Imposing any disciplinary measures set forth in division 1289
(B) of section 4701.16 of the Revised Code.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)(1)(2) of this 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 been 1321
subject tocompleted a peer review acceptable to the board and 1322
conducted pursuant to standards not less stringent than the peer1323
review standards appliedpromulgated by the American institute of 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 undergone1335
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
and, will undergocomplete a peer review acceptable to the board1344
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) Within the next three years, the public accounting firm 1355
does not intend to undertake any engagement that will result in 1356
the issuance of any attest report.1357

       (c) The public accounting firm agrees to notify the board 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 undergocomplete a peer review acceptable to the 1362
board within one year after the acceptance of an engagement of 1363
that nature.1364

       (5) Subject to the board's approval,and for reasons of 1365
personal health, military service, or other good cause as defined 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 guidelines, the board shall destroy all 1393
documents and reports related to the peer review within thirty 1394
days after the board completes its review of the report. If1395

       (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. If(A) As used in this section: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, or interest, or other charges arising from unpaid taxes1423
makes payment of the taxes, penalties, or interest, or other 1424
charges with a nonnegotiable or dishonored instrument, an 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, or1430
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) With the permission of the person affected by the notice 1443
or order, the commissioner may enter into a written agreement to 1444
deliver a notice or order byIn lieu of serving a copy of a notice 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
tax commissioner shall resend the notice or order by ordinary 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 tax commissioner.1518

       (D) Nothing in this section prohibits the tax commissioner or 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 in writing of that rate of interest.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" hasand "arena" 1655
have the same meaningmeanings as in section 307.695 of the 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 imposed3159
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" hasand "total library resources" have3167
the same meaningmeanings as in section 5751.20 of the Revised 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 imposedcharged and payable in any year after tax year 2010, 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 imposed3178
charged and payable shall be reduced by the amount ofto the 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 imposedcharged 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 imposed3192
charged and payable shall be reduced by the amount ofto the 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
imposedcharged and payable in any year after tax year 2010, "2010 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 imposed3205
charged and payable shall be reduced by the amount ofto the 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
amountspayments received in fiscal year 2011 pursuant to 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 imposedcharged and payable in any year after 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 imposedcharged and 3223
payable shall be reduced by the amount ofto the extent that those 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) Not later than January 1, 2002, theThe3466
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 and for all payments to be made in 3491
years 2012 and thereafter, the sum of the amounts in divisions 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 for year 2011, fifty per cent 3504
for year 2012, and twenty-five percent for years 2013 and 3505
thereafter.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 imposedcharged and 3554
payable for debt purposes in tax year 2010. If the levy is not 3555
imposedcharged and payable for debt purposes in tax year 2010 or 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 imposedcharged and 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 libraries3572
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. (A)This section does not apply to, and the 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; or3779

       (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
and3817

       (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; and3835

       (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; or3888

       (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; and3892

       (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) TheExcept as provided under division (I) of this 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; and4092

       (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; or4211

       (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; or4214

       (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; or4498

       (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; or4534

       (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. To4550

       (B) To procure sucha motor fuel dealer's license, every 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

       (A)(1) The name under which the motor fuel dealer will 4556
transact business within the state;4557

       (B)(2) The location, including street number address, of its 4558
principal office or place of business within this state;4559

       (C)(3) The name and address of the owner, or the names and 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

       (D)(4) If such motor fuel dealer is a corporation organized 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

       (E)(5) An agreement that the motor fuel dealer will assume 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

       An(C)(1) Except as provided in division (C)(2) of this 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. EveryExcept as provided in division (C)(2) of 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 corporation or business trust4686
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 corporation or business trustperson having control or 4690
supervision of, or charged with the responsibility of, filing 4691
reports and making payments, or any officers or trustees of the 4692
corporation or business trustperson responsible for the execution 4693
of the corporation's or business trust'sperson's fiscal 4694
responsibilities, are personally liable for the unpaid liability 4695
resulting from the failure to file such reports or pay such taxes.4696

       (2) The dissolution, termination, or bankruptcy of a 4697
corporation or business trustperson shall not discharge a 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 personindividual is personally liable 4704
under this section for the unpaid tax of a corporation or business 4705
trustperson, then the liability of all such individuals shall be 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, regardless of whether 5129
the vendor is a delivery vendor.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 ofor dollars of 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 ofor dollars of which the number declines 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
except the sale of bottled water, distilled water, mineral water, 6069
carbonated water, or ice;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 that is registered with the central 6485
electronic registration system provided for in section 5740.05 of 6486
the Revised Code makes a sale in this state by printed catalog and 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 that is registered with the central 6652
electronic registration system provided for in section 5740.05 of 6653
the Revised Code makes a sale in this state by printed catalog and 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 that is registered with the central 6929
electronic registration system provided for in section 5740.05 of 6930
the Revised Code makes a sale in this state by printed catalog and 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 that is registered 6966
with the central electronic registration system provided for in 6967
section 5740.05 of the Revised Code or the vendor's certified 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 tax commissioner.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. If7009

       (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 tax commissioner to transfer the existing vendor's license to 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 tax commissioner may establish or participate in a 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

       (B)(D) As used in this divisionsection, "transient vendor" 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

       (C) As used in this division, "service vendor" means any 7107
person who, in the usual course of the person's business, sells 7108
services described in division (B)(3)(e), (f), (g), (h), (i), (j), 7109
(k), (l), (m), (p), or (t) of section 5739.01 of the Revised Code.7110

       Every service vendor shall make application to the tax 7111
commissioner for a service vendor's license. Each applicant shall 7112
pay a license fee in the amount of twenty-five dollars. Upon the 7113
commissioner's determination that an applicant is a service vendor 7114
and payment of the fee, the commissioner shall issue the applicant 7115
a service vendor's license.7116

       Only sales described in division (B)(3)(e), (f), (g), (h), 7117
(i), (j), (k), (l), (m), (p), or (t) of section 5739.01 of the 7118
Revised Code may be made under authority of a service vendor's 7119
license, and that license authorizes sales to be made at any place 7120
in this state. Any service vendor who makes sales of other 7121
services or tangible personal property subject to the sales tax 7122
also shall be licensed under division (A), (B), or (D) of this 7123
section.7124

       (D) As used in this division, "delivery vendor" means any 7125
vendor who engages in one or more of the activities described in 7126
divisions (D)(1) to (4) of this section, and who maintains no 7127
store, showroom, or similar fixed place of business or other 7128
location where merchandise regularly is offered for sale or 7129
displayed or shown in catalogs for selection or pick-up by 7130
consumers, or where consumers bring goods for repair or other 7131
service.7132

       (1) The vendor makes retail sales of tangible personal 7133
property;7134

       (2) The vendor rents or leases, at retail, tangible personal 7135
property, except titled motor vehicles, titled watercraft, or 7136
titled outboard motors;7137

       (3) The vendor provides a service, at retail, described in 7138
division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the 7139
Revised Code; or7140

       (4) The vendor makes retail sales of warranty, maintenance or 7141
service contracts, or similar agreements as described in division 7142
(B)(7) of section 5739.01 of the Revised Code.7143

       A transient vendor or a seller registered pursuant to section 7144
5741.17 of the Revised Code is not a delivery vendor.7145

       Delivery vendors shall apply to the tax commissioner, on a 7146
form prescribed by the commissioner, for a delivery vendor's 7147
license. Each applicant shall pay a license fee of twenty-five 7148
dollars for each delivery vendor's license, to be credited to the 7149
general revenue fund. Upon the commissioner's determination that 7150
the applicant is a delivery vendor, the commissioner shall issue 7151
the license. A delivery vendor's license authorizes retail sales 7152
to be made throughout the state. All sales of the vendor must be 7153
reported under the delivery license. The commissioner may require 7154
a vendor to be licensed as a delivery vendor if, in the opinion of 7155
the commissioner, such licensing is necessary for the efficient 7156
administration of the tax. The commissioner shall not issue a 7157
delivery vendor license to a vendor who holds a license issued 7158
under division (A) of this section.7159

       (E) Any transient vendor who is issued a license pursuant to 7160
this section shall display the license or a copy of it 7161
prominently, in plain view, at every place of business of the7162
transient vendor. Every7163

       (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 tax commissioner.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 that is registered 7178
with the central electronic registration system provided for in 7179
section 5740.05 of the Revised Code or the seller's certified 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 tax commissioner.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,and importers, and 7219
brokers of other tobacco products are subject to public 7220
disclosure. The tax commissioner shall maintain an alphabetical 7221
list of all such manufacturers, importers, wholesalers, and7222
distributors, and brokers, shall post the list on a web site 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 tax7229
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,or importer, or broker7307
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 tax commissioner, shall 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,or importer, or broker of tobacco products shall 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
begins on or after January 1, 2008ends before January 1, 2013, or 7363
that prepares more than eleven original tax returns during any 7364
calendar year that begins on or after January 1, 2013, shall, 7365
beginning January 1, 2010, use electronic technology to file with 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 for ain any calendar year that ends before January 1, 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 a calendar 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 commercial activity tax administrativerevenue 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) Any receipts for which the tax imposed by this chapter 7871
is prohibited by the Constitution or laws of the United States or 7872
the Constitution of Ohio.7873

       (hh)(i) As used in this division: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 (F)(2)(hh)(ii)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 (F)(2)(hh)(ii)(F)(2)(gg)(ii) of this section.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 (F)(2)(hh)(F)(2)(gg) of 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
(F)(2)(hh)(F)(2)(gg) of this section, or, if the tax commissioner 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

       (ii)(hh) Amounts realized by licensed motor fuel dealers or 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 (F)(2)(ii)(F)(2)(hh) of this 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

       (hh)(ii) In the case of amounts collected by a licensed 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; and7978

       (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 a written request8053
writing to the tax commissioner on or before the due date for 8054
filing the first return due under section 5751.051 of the Revised 8055
Code after the date of the acquisitionas required by division (D) 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

       Each group shall notify the tax commissioner of the foregoing 8068
elections before the due date of the return for the period in 8069
which the election becomes binding. If fifty per cent of the value 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 tax commissioner of 8145
the election in the manner prescribed by the commissioner and pay 8146
the commissioner a registration fee equal to the lesser of two 8147
hundred dollars or twenty dollars for each person in the group. No 8148
additional fee shall be imposed for the addition of new members to 8149
the group once the group has remitted a fee in the amount of two 8150
hundred dollars. The electionon a form prescribed by the 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 and the fee paid8155
on or before the beginning ofdue date for filing the first 8156
calendar quarter to whichreturn due after the election applies. 8157
The fee shall be collected and used in the same manner as provided 8158
in section 5751.04 of the Revised Code.8159

       The election shall be made on a form prescribed by the tax 8160
commissioner for that purpose and shall be signed by one or more 8161
individuals with authority, separately or together, to make a 8162
binding election on behalf of all persons in the group.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 tax commissioner of any additions to the group 8167
with the next tax return it files withon a form prescribed by the 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 group8177
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

       (C) A combined taxpayerand shall neither exclude taxable 8182
gross receipts between its members nor from others that are not 8183
members.8184

       (D) A combined taxpayer shall pay to the tax commissioner a 8185
registration fee equal to the lesser of two hundred dollars or 8186
twenty dollars for each person in the group. No additional fee 8187
shall be imposed for the addition of new members to the group once 8188
the group has remitted a fee in the amount of two hundred dollars. 8189
The fee shall be timely paid before the later of the beginning of 8190
the first calendar quarter or November 15, 2005. The fee shall be 8191
collected and used in the same manner as provided in section 8192
5751.04 of the Revised Code.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 tax commissioner of any additions with the next 8197
quarterly tax return it files withto the group on a form 8198
prescribed by the commissioner for such purpose.8199

       Sec. 5751.03.  (A) Except as provided in divisionsdivision8200
(B) and (D) of this section and in sectionssection 5751.031 and 8201
5751.032 of the Revised Code, the tax levied under this section 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. For calendar 8209
year 2006, the tax imposed under this division shall be paid not 8210
later than May 10, 2006, by both calendar year taxpayers and 8211
calendar quarter taxpayers. For calendar years 2007, 2008, and 8212
2009, the tax imposed under this division shall be paid with the 8213
fourth-quarter tax return or annual tax return for the prior 8214
calendar year by both calendar year taxpayers and calendar quarter 8215
taxpayers. For calendar years 2010 and thereafter, theThe tax 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 calendar quarter taxpayer may exclude the first 8220
two hundred fifty thousandone million dollars of taxable gross 8221
receipts for a calendar quarteryear. Calendar quarter taxpayers 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 the three8225
subsequent calendar quarters within that same calendar year. Each 8226
calendar year taxpayer may exclude the first one million dollars 8227
of taxable gross receipts for a calendar year.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 prior calendar quarterfull one-million-dollar8231
exclusion amountsamount to the first calendar quarter return the 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

       (D) There is hereby allowed a credit against the tax imposed 8239
under this chapter for each of the following calendar years if a 8240
transfer was made in the preceding calendar year from the general 8241
revenue fund to the commercial activity tax refund fund under 8242
division (D) of section 5751.032 of the Revised Code: calendar 8243
years 2008, 2010, and 2012. The credit is allowed for taxpayers 8244
that paid in full the tax imposed under this chapter for the 8245
calendar year in which the transfer was made. The amount of a 8246
taxpayer's credit equals the amount computed under division (D) of 8247
section 5751.032 of the Revised Code(3) A taxpayer shall not 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) If applicable, the name of the state or country under the 8259
laws of which the person is incorporated;8260

       (3) If applicable, the location of a person's principal 8261
office and the name and address of the officer or agent of the 8262
corporation in charge of the business;8263

       (4) If applicable, the names of the person's president, 8264
secretary, treasurer, and statutory agent designated pursuant to 8265
section 1703.041 of the Revised Code, with the post office address 8266
of each;8267

       (5)The person's primary address;8268

       (3) The kind of business in which the person is engaged, 8269
including applicable business or industry codes for the person;8270

       (6) If required by the tax commissioner, the date of the 8271
beginning of the person's annual accounting period that includes 8272
the first day of January of the taxable calendar year;8273

       (7) If the person is not a corporation or a sole proprietor, 8274
the names of the person's owners and officers, if required by the 8275
tax commissioner;8276

       (8)(4) The person's federal employer identification number or 8277
numbers or, if those are not applicable, the person's social 8278
security number or equivalent, as applicable;8279

       (9)(5) The person's organizational type;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) Except as otherwise provided in this division, each 8289
person registering with the tax commissioner as required by 8290
division (B) of this section shall pay a registration fee. The fee 8291
shall be in the amount of fifteen dollars if a person registers 8292
electronically and twenty dollars if a person does not register 8293
electronically. The registration fee shall be paid in the manner 8294
prescribed by the tax commissioner at the same time the 8295
registration is due if a person is subject to the tax imposed 8296
under this chapter before January 1, 2006. If a person first 8297
becomes subject to the tax after that date, the registration fee 8298
is payable with the first tax period return the person is required 8299
to file as prescribed by section 5751.051 of the Revised Code. If8300
(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. Proceeds8316

       (D) Proceeds from the fee imposed under division (C) of this 8317
section shall be credited to the commercial activity tax 8318
administrativerevenue enhancement fund, which is hereby created 8319
in the state treasury for the commissioner to use in implementing 8320
and administering the tax imposed under this chapter.8321

       Registration fees paid under this section, excluding any 8322
additional fee imposed for a person's failure to timely register, 8323
shall be credited against the first payment of tax payable under 8324
section 5751.03 of the Revised Code.8325

       (D)(E) If a person that has registered under this section is 8326
no longer a taxpayer subject to this chapter, including no longer 8327
being a taxpayer because of the application of division (E)(1) of 8328
section 5751.01 of the Revised Code, the person shall notify the 8329
commissioner that the person's registration should be cancelled.8330

       (E)(F) With respect to registrations received by the 8331
commissioner before the effective date of the amendment of this 8332
section by the main operating appropriations act of the 128th 8333
general assemblyOctober 16, 2009, the taxpayer listed as the 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 tax commissioner, and receives 8350
approval in writing from the tax commissioner, to switch back to 8351
being a calendar year taxpayer. Nothing in this division prohibits 8352
a person that has elected to be a calendar year taxpayer from 8353
notifying the tax commissioner, using the procedures prescribed by 8354
the commissioner, that it is switching back to being a calendar 8355
quarter taxpayer.8356

       (C) Any taxpayer that is not a calendar quarter taxpayer 8357
pursuant to this section is a calendar year taxpayer. The 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 along with the 8419
registration fee imposed under this section, if applicable, on or 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 elects to beregisters as a calendar year taxpayer under 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 5751.058434
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 tax commissioner under this 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 registration was cancelledcancellation.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 the sectionSection 267.30.50 of H.B. 153 of the 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 the sectionSection 265.30.50 of H.B. 1 of the 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 the sectionSection 267.30.60 of H.B. 153 of the 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 imposedcharged and payable for 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 imposed8578
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 division8631
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 losses8703
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)(33)(35) of this section, for tax 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
imposedcharged and payable in any year after tax year 2010, 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 imposedcharged and payable shall be 8787
reduced by the amount ofto the extent that the payments are8788
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

       (34)(36) "Current expense TPP allocation" means, in the case 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)(33)(35) of this section, excluding any 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
imposedcharged and payable in any year after tax year 2010, 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 imposedcharged and 8864
payable shall be reduced by the amount ofto the extent that the8865
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

       (35)(37) "TPP allocation" means the sum of payments received 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 imposedcharged 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 imposedcharged and payable shall be reduced 8878
by the amount of paymentto the extent that the payments are8879
attributable to the fixed-rate levy loss of that levy as would be 8880
computed under division (A)(1) of that section.8881

       (36)(38) "Total TPP allocation" means, in the case of a 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 imposedcharged and payable in any year after tax year 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 imposedcharged and payable8894
shall be reduced by the amount ofto the extent that the payments 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

       (37)(39) "Non-current expense TPP allocation" means the 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

       (38)(40) "TPP allocation for library purposes" means the sum 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 tax reform system implementationrevenue 8934
enhancement fund, which is hereby created in the state treasury,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 imposedcharged and payable under 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
imposedcharged and payable under section 5705.194 or 5705.213 of 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 imposed9083
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
imposedcharged and payable under section 5705.194, 5705.199, 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 and thereafterthrough 2011, 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 libraries9247
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 twentieth9257
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 twentieththirtieth day of November each year. 9263
Within fortythirty days after receipt of such payments, the 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