As Reported by the Senate Ways and Means and Economic Development Committee

129th General Assembly Regular Session 2011-2012

Sub. H. B. No. 508

Representative Beck 

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

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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, 5751.22, and

10

5753.03, to enact section 5703.061, and to repeal

11

section 5751.032 of the Revised Code to make

12

changes to the laws governing the assessment,

13

levy, and collection of taxes in the state, to the

14

laws governing public accounting firm peer review,

15

and to the school facilities construction law.

16

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

Section 1. That sections 122.85, 131.02, 349.01, 1545.21,	17
1701.86, 1702.47, 3769.28, 4301.42, 4303.33, 4701.01, 4701.04,	18
5703.261, 5703.37, 5703.47, 5705.313, 5709.084, 5709.40, 5709.41,	19
5709.73, 5709.78, 5727.84, 5727.86, 5731.39, 5733.056, 5735.02,	20
5735.03, 5735.35, 5739.01, 5739.02, 5739.021, 5739.023, 5739.026,	21
5739.04, 5739.17, 5741.08, 5743.20, 5743.61, 5743.66, 5747.082,	22
5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051,	23
5751.12, 5751.20, 5751.22, and 5753.03 be amended and section	24
5703.061 of the Revised Code be enacted to read as follows:	25

Sec. 122.85. (A) As used in this section and in sections	26
5733.59 and 5747.66 of the Revised Code:	27

(1) "Tax credit-eligible production" means a motion picture	28
production certified by the director of development under division	29
(B) of this section as qualifying the motion picture company for a	30
tax credit under section 5733.59 or 5747.66 of the Revised Code.	31

(2) "Certificate owner" means a motion picture company to	32
which a tax credit certificate is issued.	33

(3) "Motion picture company" means an individual,	34
corporation, partnership, limited liability company, or other form	35
of business association producing a motion picture.	36

(4) "Eligible production expenditures" means expenditures	37
made after June 30, 2009, for goods or services purchased and	38
consumed in this state by a motion picture company directly for	39
the production of a tax credit-eligible production.	40

"Eligible production expenditures" includes, but is not	41
limited to, expenditures for resident and nonresident cast and	42
crew wages, accommodations, costs of set construction and	43
operations, editing and related services, photography, sound	44
synchronization, lighting, wardrobe, makeup and accessories, film	45
processing, transfer, sound mixing, special and visual effects,	46
music, location fees, and the purchase or rental of facilities and	47
equipment.	48

(5) "Motion picture" means entertainment content created in	49
whole or in part within this state for distribution or exhibition	50
to the general public, including, but not limited to,	51
feature-length films; documentaries; long-form, specials,	52
miniseries, series, and interstitial television programming;	53
interactive web sites; sound recordings; videos; music videos;	54
interactive television; interactive games; videogamesvideo games;	55
commercials; any format of digital media; and any trailer, pilot,	56
video teaser, or demo created primarily to stimulate the sale,	57
marketing, promotion, or exploitation of future investment in	58
either a product or a motion picture by any means and media in any	59
digital media format, film, or videotape, provided the motion	60
picture qualifies as a motion picture. "Motion picture" does not	61
include any television program created primarily as news, weather,	62
or financial market reports, a production featuring current events	63
or sporting events, an awards show or other gala event, a	64
production whose sole purpose is fundraising, a long-form	65
production that primarily markets a product or service or in-house	66
corporate advertising or other similar productions, a production	67
for purposes of political advocacy, or any production for which	68
records are required to be maintained under 18 U.S.C. 2257 with	69
respect to sexually explicit content.	70

(B) For the purpose of encouraging and developing a strong	71
film industry in this state, the director of development may	72
certify a motion picture produced by a motion picture company as a	73
tax credit-eligible production. In the case of a television	74
series, the director may certify the production of each episode of	75
the series as a separate tax credit-eligible production. A motion	76
picture company shall apply for certification of a motion picture	77
as a tax credit-eligible production on a form and in the manner	78
prescribed by the director. Each application shall include the	79
following information:	80

(1) The name and telephone number of the motion picture	81
production company;	82

(2) The name and telephone number of the company's contact	83
person;	84

(3) A list of the first preproduction date through the last	85
production date in Ohio;	86

(4) The Ohio production office address and telephone number;

87

(5) The total production budget of the motion picture;

88

(6) The total budgeted eligible production expenditures and	89
the percentage that amount is of the total production budget of	90
the motion picture;	91

(7) The total percentage of the motion picture being shot in	92
Ohio;	93

(8) The level of employment of cast and crew who reside in	94
Ohio;	95

(9) A synopsis of the script;

96

(10) The shooting script;

97

(11) A creative elements list that includes the names of the	98
principal cast and crew and the producer and director;	99

(12) Documentation of financial ability to undertake and	100
complete the motion picture;	101

(13) Estimated value of the tax credit based upon total	102
budgeted eligible production expenditures;	103

(14) Any other information considered necessary by the	104
director.	105

Within ninety days after certification of a motion picture as	106
a tax credit-eligible production, and any time thereafter upon the	107
director's request, the motion picture company shall present to	108
the director of development sufficient evidence of reviewable	109
progress. If the motion picture company fails to present	110
sufficient evidence, the director of development may rescind the	111
certification. Upon rescission, the director shall notify the	112
applicant that the certification has been rescinded. Nothing in	113
this section prohibits an applicant whose tax credit-eligible	114
production certification has been rescinded from submitting a	115
subsequent application for certification.	116

(C)(1) A motion picture company whose motion picture has been	117
certified as a tax credit-eligible production may apply to the	118
director of development on or after July 1, 2009, for a refundable	119
credit against the tax imposed by section 5733.06 or 5747.02 of	120
the Revised Code. The director in consultation with the tax	121
commissioner shall prescribe the form and manner of the	122
application and the information or documentation required to be	123
submitted with the application.	124

The credit is determined as follows:

125

(a) If the total budgeted eligible production expenditures	126
stated in the application submitted under division (B) of this	127
section or the actual eligible production expenditures as finally	128
determined under division (D) of this section, whichever is least,	129
is less than or equal to three hundred thousand dollars, no credit	130
is allowed;	131

(b) If the total budgeted eligible production expenditures	132
stated in the application submitted under division (B) of this	133
section or the actual eligible production expenditures as finally	134
determined under division (D) of this section, whichever is least,	135
is greater than three hundred thousand dollars, the credit equals	136
the sum of the following, subject to the limitation in division	137
(C)(4) of this section:	138

(i) Twenty-five per cent of the least of such budgeted or	139
actual eligible expenditure amounts excluding budgeted or actual	140
eligible expenditures for resident cast and crew wages;	141

(ii) Thirty-five per cent of budgeted or actual eligible	142
expenditures for resident cast and crew wages.	143

(2) Except as provided in division (C)(4) of this section, if	144
the director of development approves a motion picture company's	145
application for a credit, the director shall issue a tax credit	146
certificate to the company. The director in consultation with the	147
tax commissioner shall prescribe the form and manner of issuing	148
certificates. The director shall assign a unique identifying	149
number to each tax credit certificate and shall record the	150
certificate in a register devised and maintained by the director	151
for that purpose. The certificate shall state the amount of the	152
eligible production expenditures on which the credit is based and	153
the amount of the credit. Upon the issuance of a certificate, the	154
director shall certify to the tax commissioner the name of the	155
applicant, the amount of eligible production expenditures shown on	156
the certificate, and any other information required by the rules	157
adopted to administer this section.	158

(3) The amount of eligible production expenditures for which	159
a tax credit may be claimed is subject to inspection and	160
examination by the tax commissioner or employees of the	161
commissioner under section 5703.19 of the Revised Code and any	162
other applicable law. Once the eligible production expenditures	163
are finally determined under section 5703.19 of the Revised Code	164
and division (D) of this section, the credit amount is not subject	165
to adjustment unless the director determines an error was	166
committed in the computation of the credit amount.	167

(4) No tax credit certificate may be issued before the	168
completion of the tax credit-eligible production. For the fiscal	169
biennium beginning July 1, 2009, and ending June 30, 2011, not	170
more than thirty million dollars of tax credit may be allowed, of	171
which not more than ten million dollars of tax credit may be	172
allowed in the first year of the biennium. In succeeding fiscal	173
biennia, notNot more than twentyforty million dollars of tax	174
credit may be allowed per fiscal biennium beginning on or after	175
July 1, 2011, and not more than tentwenty million dollars may be	176
allowed in the first year of the biennium. At any time, not more	177
than five million dollars of tax credit may be allowed per tax	178
credit-eligible production.	179

(D) A motion picture company whose motion picture has been	180
certified as a tax credit-eligible production shall engage, at the	181
company's expense, an independent certified public accountant to	182
examine the company's production expenditures to identify the	183
expenditures that qualify as eligible production expenditures. The	184
certified public accountant shall issue a report to the company	185
and to the director of development certifying the company's	186
eligible production expenditures and any other information	187
required by the director. Upon receiving and examining the report,	188
the director may disallow any expenditure the director determines	189
is not an eligible production expenditure. If the director	190
disallows an expenditure, the director shall issue a written	191
notice to the motion picture production company stating that the	192
expenditure is disallowed and the reason for the disallowance.	193
Upon examination of the report and disallowance of any	194
expenditures, the director shall determine finally the lesser of	195
the total budgeted eligible production expenditures stated in the	196
application submitted under division (B) of this section or the	197
actual eligible production expenditures for the purpose of	198
computing the amount of the credit.	199

(E) No credit shall be allowed under section 5733.59 or	200
5747.66 of the Revised Code unless the director has reviewed the	201
report and made the determination prescribed by division (D) of	202
this section.	203

(F) This state reserves the right to refuse the use of this	204
state's name in the credits of any tax credit-eligible motion	205
picture production.	206

(G)(1) The director of development in consultation with the	207
tax commissioner shall adopt rules for the administration of this	208
section, including rules setting forth and governing the criteria	209
for determining whether a motion picture production is a tax	210
credit-eligible production; activities that constitute the	211
production of a motion picture; reporting sufficient evidence of	212
reviewable progress; expenditures that qualify as eligible	213
production expenditures; a competitive process for approving	214
credits; and consideration of geographic distribution of credits.	215
The rules shall be adopted under Chapter 119. of the Revised Code.	216

(2) The director may require a reasonable application fee to	217
cover administrative costs of the tax credit program. The fees	218
collected shall be credited to the motion picture tax credit	219
program operating fund, which is hereby created in the state	220
treasury. The motion picture tax credit program operating fund	221
shall consist of all grants, gifts, fees, and contributions made	222
to the director of development for marketing and promotion of the	223
motion picture industry within this state. The director of	224
development shall use money in the fund to pay expenses related to	225
the administration of the Ohio film office and the credit	226
authorized by this section and sections 5733.59 and 5747.66 of the	227
Revised Code.	228

Sec. 131.02. (A) Except as otherwise provided in section	229
4123.37, section 5703.061, and division (K) of section 4123.511 of	230
the Revised Code, whenever any amount is payable to the state, the	231
officer, employee, or agent responsible for administering the law	232
under which the amount is payable shall immediately proceed to	233
collect the amount or cause the amount to be collected and shall	234
pay the amount into the state treasury or into the appropriate	235
custodial fund in the manner set forth pursuant to section 113.08	236
of the Revised Code. Except as otherwise provided in this	237
division, if the amount is not paid within forty-five days after	238
payment is due, the officer, employee, or agent shall certify the	239
amount due to the attorney general, in the form and manner	240
prescribed by the attorney general, and notify the director of	241
budget and management thereof. In the case of an amount payable by	242
a student enrolled in a state institution of higher education, the	243
amount shall be certified within the later of forty-five days	244
after the amount is due or the tenth day after the beginning of	245
the next academic semester, quarter, or other session following	246
the session for which the payment is payable. The attorney general	247
may assess the collection cost to the amount certified in such	248
manner and amount as prescribed by the attorney general. If an	249
amount payable to a political subdivision is past due, the	250
political subdivision may, with the approval of the attorney	251
general, certify the amount to the attorney general pursuant to	252
this section.	253

For the purposes of this section, the attorney general and	254
the officer, employee, or agent responsible for administering the	255
law under which the amount is payable shall agree on the time a	256
payment is due, and that agreed upon time shall be one of the	257
following times:	258

(1) If a law, including an administrative rule, of this state	259
prescribes the time a payment is required to be made or reported,	260
when the payment is required by that law to be paid or reported.	261

(2) If the payment is for services rendered, when the	262
rendering of the services is completed.	263

(3) If the payment is reimbursement for a loss, when the loss	264
is incurred.	265

(4) In the case of a fine or penalty for which a law or	266
administrative rule does not prescribe a time for payment, when	267
the fine or penalty is first assessed.	268

(5) If the payment arises from a legal finding, judgment, or	269
adjudication order, when the finding, judgment, or order is	270
rendered or issued.	271

(6) If the payment arises from an overpayment of money by the	272
state to another person, when the overpayment is discovered.	273

(7) The date on which the amount for which an individual is	274
personally liable under section 5735.35, section 5739.33, or	275
division (G) of section 5747.07 of the Revised Code is determined.	276

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

277

(9) Any other appropriate time determined by the attorney	278
general and the officer, employee, or agent responsible for	279
administering the law under which the amount is payable on the	280
basis of statutory requirements or ordinary business processes of	281
the state agency to which the payment is owed.	282

(B)(1) The attorney general shall give immediate notice by	283
mail or otherwise to the party indebted of the nature and amount	284
of the indebtedness.	285

(2) If the amount payable to this state arises from a tax	286
levied under Chapter 5733., 5739., 5741., 5747., or 5751. of the	287
Revised Code, the notice also shall specify all of the following:	288

(a) The assessment or case number;

289

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

290

(c) The reason for the liability, including, if applicable,	291
that a penalty or interest is due;	292

(d) An explanation of how and when interest will be added to	293
the amount assessed;	294

(e) That the attorney general and tax commissioner, acting	295
together, have the authority, but are not required, to compromise	296
the claim and accept payment over a reasonable time, if such	297
actions are in the best interest of the state.	298

(C) The attorney general shall collect the claim or secure a	299
judgment and issue an execution for its collection.	300

(D) Each claim shall bear interest, from the day on which the	301
claim became due, at the rate per annum required by section	302
5703.47 of the Revised Code.	303

(E) The attorney general and the chief officer of the agency	304
reporting a claim, acting together, may do any of the following if	305
such action is in the best interests of the state:	306

(1) Compromise the claim;

307

(2) Extend for a reasonable period the time for payment of	308
the claim by agreeing to accept monthly or other periodic	309
payments. The agreement may require security for payment of the	310
claim.	311

(3) Add fees to recover the cost of processing checks or	312
other draft instruments returned for insufficient funds and the	313
cost of providing electronic payment options.	314

(F)(1) Except as provided in division (F)(2) of this section,	315
if the attorney general finds, after investigation, that any claim	316
due and owing to the state is uncollectible, the attorney general,	317
with the consent of the chief officer of the agency reporting the	318
claim, may do the following:	319

(a) Sell, convey, or otherwise transfer the claim to one or	320
more private entities for collection;	321

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

322

(2) The attorney general shall cancel or cause to be canceled	323
an unsatisfied claim on the date that is forty years after the	324
date the claim is certified.	325

(3) No initial action shall be commenced to collect any tax	326
payable to the state that is administered by the tax commissioner,	327
whether or not such tax is subject to division (B) of this	328
section, or any penalty, interest, or additional charge on such	329
tax, after the expiration of the period ending on the later of the	330
dates specified in divisions (F)(3)(a) and (b) of this section,	331
provided that such period shall be extended by the period of any	332
stay to such collection or by any other period to which the	333
parties mutually agree. If the initial action in aid of execution	334
is commenced before the later of the dates specified in divisions	335
(F)(3)(a) and (b) of this section, any and all subsequent actions	336
may be pursued in aid of execution of judgment for as long as the	337
debt exists.	338

(a) Seven years after the assessment of the tax, penalty,	339
interest, or additional charge is issued.	340

(b) Four years after the assessment of the tax, penalty,	341
interest, or additional charge becomes final. For the purposes of	342
division (F)(3)(b) of this section, the assessment becomes final	343
at the latest of the following: upon expiration of the period to	344
petition for reassessment, or if applicable, to appeal a final	345
determination of the commissioner or decision of the board of tax	346
appeals or a court, or, if applicable, upon decision of the United	347
States supreme court.	348

For the purposes of division (F)(3) of this section, an	349
initial action to collect a tax debt is commenced at the time when	350
any action, including any action in aid of execution on a	351
judgment, commences after a certified copy of the tax	352
commissioner's entry making an assessment final has been filed in	353
the office of the clerk of court of common pleas in the county in	354
which the taxpayer resides or has its principal place of business	355
in this state, or in the office of the clerk of court of common	356
pleas of Franklin county, as provided in section 5739.13, 5741.14,	357
5747.13, or 5751.09 of the Revised Code or in any other applicable	358
law requiring such a filing. If an assessment has not been issued	359
and there is no time limitation on the issuance of an assessment	360
under applicable law, an action to collect a tax debt commences	361
when the action is filed in the courts of this state to collect	362
the liability.	363

(4) If information contained in a claim that is sold,	364
conveyed, or transferred to a private entity pursuant to this	365
section is confidential pursuant to federal law or a section of	366
the Revised Code that implements a federal law governing	367
confidentiality, such information remains subject to that law	368
during and following the sale, conveyance, or transfer.	369

Sec. 349.01.  As used in this chapter:

370

(A) "New community" means a community or an addition to an	371
existing community planned pursuant to this chapter so that it	372
includes facilities for the conduct of industrial, commercial,	373
residential, cultural, educational, and recreational activities,	374
and designed in accordance with planning concepts for the	375
placement of utility, open space, and other supportive facilities.	376

In the case of a new community authority established within	377
three years after March 22, 2012, the effective date of H.B. 225	378
of the 129th general assembly, "new community" may mean a	379
community or development of property planned under this chapter in	380
relation to an existing community so that the community includes	381
facilities for the conduct of community activities, and is	382
designed in accordance with planning concepts for the placement of	383
utility, open space, and other supportive facilities for the	384
community.	385

(B) "New community development program" means a program for	386
the development of a new community characterized by well-balanced	387
and diversified land use patterns and which includes land	388
acquisition and land development, the acquisition, construction,	389
operation, and maintenance of community facilities, and the	390
provision of services authorized in this chapter.	391

In the case of a new community authority established within	392
three years after March 22, 2012, the effective date of H.B. 225	393
of the 129th general assembly, a new community development program	394
may take into account any existing community in relation to which	395
a new community is developed for purposes of being characterized	396
by well-balanced and diversified land use patterns.	397

(C) "New community district" means the area of land described	398
by the developer in the petition as set forth in division (A) of	399
section 349.03 of the Revised Code for development as a new	400
community and any lands added to the district by amendment of the	401
resolution establishing the community authority.	402

(D) "New community authority" means a body corporate and	403
politic in this state, established pursuant to section 349.03 of	404
the Revised Code and governed by a board of trustees as provided	405
in section 349.04 of the Revised Code.	406

(E) "Developer" means any person, organized for carrying out	407
a new community development program who owns or controls, through	408
leases of at least seventy-five years' duration, options, or	409
contracts to purchase, the land within a new community district,	410
or any municipal corporation, county, or port authority that owns	411
the land within a new community district, or has the ability to	412
acquire such land, either by voluntary acquisition or condemnation	413
in order to eliminate slum, blighted, and deteriorated or	414
deteriorating areas and to prevent the recurrence thereof. In the	415
case of a new community authority established within three years	416
after March 22, 2012, the effective date of H.B. 225 of the 129th	417
general assembly, "developer" may mean a person, municipal	418
corporation, county, or port authority that controls land within a	419
new community district through leases of at least forty years'	420
duration.	421

(F) "Organizational board of commissioners" means, if the new	422
community district is located in only one county, the board of	423
county commissioners of such county; if located in more than one	424
county, a board consisting of the members of the board of county	425
commissioners of each of the counties in which the district is	426
located, provided that action of such board shall require a	427
majority vote of the members of each separate board of county	428
commissioners; or, if more than half of the new community district	429
is located within the boundaries of the most populous municipal	430
corporation of a county, the legislative authority of the	431
municipal corporation.	432

(G) "Land acquisition" means the acquisition of real property	433
and interests in real property as part of a new community	434
development program.	435

(H) "Land development" means the process of clearing and	436
grading land, making, installing, or constructing water	437
distribution systems, sewers, sewage collection systems, steam,	438
gas, and electric lines, roads, streets, curbs, gutters,	439
sidewalks, storm drainage facilities, and other installations or	440
work, whether within or without the new community district, and	441
the construction of community facilities.	442

(I)(1) "Community facilities" means all real property,	443
buildings, structures, or other facilities, including related	444
fixtures, equipment, and furnishings, to be owned, operated,	445
financed, constructed, and maintained under this chapter,	446
including public, community, village, neighborhood, or town	447
buildings, centers and plazas, auditoriums, day care centers,	448
recreation halls, educational facilities, hospital facilities as	449
defined in section 140.01 of the Revised Code, recreational	450
facilities, natural resource facilities, including parks and other	451
open space land, lakes and streams, cultural facilities, community	452
streets, pathway and bikeway systems, pedestrian underpasses and	453
overpasses, lighting facilities, design amenities, or other	454
community facilities, and buildings needed in connection with	455
water supply or sewage disposal installations or steam, gas, or	456
electric lines or installation.	457

(2) In the case of a new community authority established	458
within three years after March 22, 2012, the effective date of	459
H.B. 225 of the 129th general assembly, "community facilities" may	460
mean, in addition to the facilities authorized in division (I)(1)	461
of this section, any community facilities that are owned,	462
operated, financed, constructed, or maintained for, relating to,	463
or in furtherance of community activities, including, but not	464
limited to, town buildings or other facilities, health care	465
facilities including, but limited to, hospital facilities, and	466
off-street parking facilities.	467

(J) "Cost" as applied to a new community development program	468
means all costs related to land acquisition and land development,	469
the acquisition, construction, maintenance, and operation of	470
community facilities and offices of the community authority, and	471
of providing furnishings and equipment therefor, financing charges	472
including interest prior to and during construction and for the	473
duration of the new community development program, planning	474
expenses, engineering expenses, administrative expenses including	475
working capital, and all other expenses necessary and incident to	476
the carrying forward of the new community development program.	477

(K) "Income source" means any and all sources of income to	478
the community authority, including community development charges	479
of which the new community authority is the beneficiary as	480
provided in section 349.07 of the Revised Code, rentals, user fees	481
and other charges received by the new community authority, any	482
gift or grant received, any moneys received from any funds	483
invested by or on behalf of the new community authority, and	484
proceeds from the sale or lease of land and community facilities.	485

(L) "Community development charge" means:

486

(1) A dollar amount which shall be determined on the basis of	487
the assessed valuation of real property or interests in real	488
property in a new community district sold, leased, or otherwise	489
conveyed by the developer or the new community authority, the	490
income of the residents of such property subject to such charge	491
under section 349.07 of the Revised Code, if such property is	492
devoted to residential uses or to the profits of any business, a	493
uniform fee on each parcel of such real property originally sold,	494
leased, or otherwise conveyed by the developer or new community	495
authority, or any combination of the foregoing bases.	496

(2) For a new community authority that is established within	497
three years after March 22, 2012, the effective date of H.B. 225	498
of the 129th general assembly, "community development charge"	499
includes, in addition to the charges authorized in division (L)(1)	500
of this section, a charge determined on the basis of all or a part	501
of the income of the residents of real property within the new	502
community district if such property is devoted to residential	503
uses, or all or a part of the profits, gross receipts, or other	504
revenues of any business operating in the new community district,	505
including rentals received from leases of real property located in	506
the district. If a new community authority imposes a community	507
development charge determined on the basis of rentals received	508
from leases of real property, improvements of any real property	509
located in the new community district and subject to that charge	510
may not be exempted from taxation under section 5709.40, 5709.41,	511
5709.73, or 5709.78 of the Revised Code.	512

(M) "Proximate city" means any city that, as of the date of	513
filing of the petition under section 349.03 of the Revised Code,	514
is the city with the greatest population located in the county in	515
which the proposed new community district is located, is the city	516
with the greatest population located in an adjoining county if any	517
portion of such city is within five miles of any part of the	518
boundaries of such district, or exercises extraterritorial	519
subdivision authority under section 711.09 of the Revised Code	520
with respect to any part of such district.	521

In the case of a new community authority that is established	522
within three years after March 22, 2012, the effective date of	523
H.B. 225 of the 129th general assembly, "proximate city" may mean	524
a municipal corporation in which, at the time of filing the	525
petition under section 349.03 of the Revised Code, any portion of	526
the proposed new community district is located, or, if at the time	527
of that filing more than one-half of the proposed district is	528
contained within a joint economic development district created	529
under sections 715.70 to 715.83 of the Revised Code, the township	530
containing the greatest portion of the territory of the joint	531
economic development district.	532

(N) "Community activities" means cultural, educational,	533
governmental, recreational, residential, industrial, commercial,	534
distribution and research activities, or any combination thereof	535
that includes residential activities.	536

Sec. 1545.21.  The board of park commissioners, by	537
resolution, may submit to the electors of the park district the	538
question of levying taxes for the use of the district. The	539
resolution shall declare the necessity of levying such taxes,	540
shall specify the purpose for which such taxes shall be used, the	541
annual rate proposed, and the number of consecutive years the rate	542
shall be levied. Such resolution shall be forthwith certified to	543
the board of elections in each county in which any part of such	544
district is located, not later than the ninetieth day before the	545
day of the election, and the question of the levy of taxes as	546
provided in such resolution shall be submitted to the electors of	547
the district at a special election to be held on whichever of the	548
following occurs first:	549

(A) The day of the next general election;

550

(B) The first Tuesday after the first Monday in May in any	551
calendar year, except that if a presidential primary election is	552
held in that calendar year, then the day of that election. The	553
ballot shall set forth the purpose for which the taxes shall be	554
levied, the annual rate of levy, and the number of years of such	555
levy. If the tax is to be placed on the current tax list, the form	556
of the ballot shall state that the tax will be levied in the	557
current tax year and shall indicate the first calendar year the	558
tax will be due. If the resolution of the board of park	559
commissioners provides that an existing levy will be canceled upon	560
the passage of the new levy, the ballot may include a statement	561
that: "an existing levy of ... mills (stating the original levy	562
millage), having ... years remaining, will be canceled and	563
replaced upon the passage of this levy." In such case, the ballot	564
may refer to the new levy as a "replacement levy" if the new	565
millage does not exceed the original millage of the levy being	566
canceled or as a "replacement and additional levy" if the new	567
millage exceeds the original millage of the levy being canceled.	568
If a majority of the electors voting upon the question of such	569
levy vote in favor thereof, such taxes shall be levied and shall	570
be in addition to the taxes authorized by section 1545.20 of the	571
Revised Code, and all other taxes authorized by law. The rate	572
submitted to the electors at any one time shall not exceed two	573
mills annually upon each dollar of valuation unless the purpose of	574
the levy includes providing operating revenues for one of Ohio's	575
major metropolitan zoos, as defined in section 4503.74 of the	576
Revised Code, in which case the rate shall not exceed three mills	577
annually upon each dollar of valuation. When a tax levy has been	578
authorized as provided in this section or in section 1545.041 of	579
the Revised Code, the board of park commissioners may issue bonds	580
pursuant to section 133.24 of the Revised Code in anticipation of	581
the collection of such levy, provided that such bonds shall be	582
issued only for the purpose of acquiring and improving lands. Such	583
levy, when collected, shall be applied in payment of the bonds so	584
issued and the interest thereon. The amount of bonds so issued and	585
outstanding at any time shall not exceed one per cent of the total	586
tax valuation in such district. Such bonds shall bear interest at	587
a rate not to exceed the rate determined as provided in section	588
9.95 of the Revised Code.	589

Sec. 1701.86.  (A) A corporation may be dissolved voluntarily	590
in the manner provided in this section, provided the provisions of	591
Chapter 1704. of the Revised Code do not prevent the dissolution	592
from being effected.	593

(B) A resolution of dissolution for a corporation shall set	594
forth that the corporation elects to be dissolved. The resolution	595
also may include any of the following:	596

(1) The date on which the certificate of dissolution is to be	597
filed or the conditions or events that will result in the filing	598
of the certificate;	599

(2) Authorization for the officers or directors to abandon	600
the proposed dissolution before the filing of the certificate of	601
dissolution;	602

(3) Any additional provision considered necessary with	603
respect to the proposed dissolution and winding up.	604

(C) If an initial stated capital is not set forth in the	605
articles then before the corporation begins business, or if an	606
initial stated capital is set forth in the articles then before	607
subscriptions to shares shall have been received in the amount of	608
that initial stated capital, the incorporators or a majority of	609
them may adopt, by a writing signed by each of them, a resolution	610
of dissolution.	611

(D) The directors may adopt a resolution of dissolution in	612
any of the following cases:	613

(1) When the corporation has been adjudged bankrupt or has	614
made a general assignment for the benefit of creditors;	615

(2) By leave of the court, when a receiver has been appointed	616
in a general creditors' suit or in any suit in which the affairs	617
of the corporation are to be wound up;	618

(3) When substantially all of the assets have been sold at	619
judicial sale or otherwise;	620

(4) When the articles have been canceled for failure to file	621
annual franchise or excise tax returns or for failure to pay	622
franchise or excise taxes and the corporation has not been	623
reinstated or does not desire to be reinstated;	624

(5) When the period of existence of the corporation specified	625
in its articles has expired.	626

(E) The shareholders at a meeting held for such purpose may	627
adopt a resolution of dissolution by the affirmative vote of the	628
holders of shares entitling them to exercise two-thirds of the	629
voting power of the corporation on such proposal or, if the	630
articles provide or permit, by the affirmative vote of a greater	631
or lesser proportion, though not less than a majority, of such	632
voting power, and by such affirmative vote of the holders of	633
shares of any particular class as is required by the articles.	634
Notice of the meeting of the shareholders shall be given to all	635
the shareholders whether or not entitled to vote at it.	636

(F) Upon the adoption of a resolution of dissolution, a	637
certificate shall be prepared, on a form prescribed by the	638
secretary of state, setting forth all of the following:	639

(1) The name of the corporation;

640

(2) A statement that a resolution of dissolution has been	641
adopted;	642

(3) A statement of the manner of adoption of such resolution,	643
and, in the case of its adoption by the incorporators or	644
directors, a statement of the basis for such adoption;	645

(4) The place in this state where its principal office is or	646
is to be located;	647

(5) The internet address of each domain name held or	648
maintained by or on behalf of the corporation;	649

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

650

(7) The date of dissolution, if other than the filing date.	651
The date of dissolution shall not be more than ninety days after	652
the filing of the certificate of dissolution.	653

(G) When the resolution of dissolution is adopted by the	654
incorporators, the certificate shall be signed by not less than a	655
majority of them. In all other cases, the certificate shall be	656
signed by any authorized officer, unless the officer fails to	657
execute and file such certificate within thirty days after the	658
date upon which such certificate is to be filed. In that latter	659
event, the certificate of dissolution may be signed by any three	660
shareholders or, if there are less than three shareholders, all of	661
the shareholders and shall set forth a statement that the persons	662
signing the certificate are shareholders and are filing the	663
certificate because of the failure of the officers to do so.	664

(H) Except as otherwise provided in division (I) of this	665
section, a certificate of dissolution, filed with the secretary of	666
state, shall be accompanied by all of the following:	667

(1) An affidavit of one or more of the persons executing the	668
certificate of dissolution or of an officer of the corporation	669
containing a statement of the counties, if any, in this state in	670
which the corporation has personal property or a statement that	671
the corporation is of a type required to pay personal property	672
taxes to state authorities only;	673

(2) A certificate or other evidence from the department of	674
taxation showing that the payment of all franchise, sales, use,	675
and highway use taxes accruing up to the date of dissolution or	676
showing that such payment has been adequately guaranteed,	677
corporation has paid all taxes administered by and required to be	678
paid to the tax commissioner that are or will be due from the	679
corporation on the date of the dissolution or an affidavit of one	680
or more of the persons executing the certificate of dissolution or	681
of an officer of the corporation containing a statement that the	682
corporation is not required to pay or the department of taxation	683
has not assessed any tax for which such a certificate or other	684
evidence is not provided;	685

(3) A certificate or other evidence showing the payment of	686
all personal property and commercial activity taxes accruing up to	687
the date of dissolution or showing that such payment has been	688
adequately guaranteed, or an affidavit of one or more of the	689
persons executing the certificate of dissolution or of an officer	690
of the corporation containing a statement that the corporation is	691
not required to pay or the department of taxation has not assessed	692
any tax for which such a certificate or other evidence is not	693
provided;	694

(4) A receipt, certificate, or other evidence from the	695
director of job and family services showing that all contributions	696
due from the corporation as an employer have been paid, or that	697
such payment has been adequately guaranteed, or that the	698
corporation is not subject to such contributions;	699

(5) A receipt, certificate, or other evidence from the bureau	700
of workers' compensation showing that all premiums due from the	701
corporation as an employer have been paid, or that such payment	702
has been adequately guaranteed, or that the corporation is not	703
subject to such premium payments.	704

(I) In lieu of the receipt, certificate, or other evidence	705
described in division (H)(2), (3), (4), or (5) of this section, an	706
affidavit of one or more persons executing the certificate of	707
dissolution or of an officer of the corporation containing a	708
statement of the date upon which the particular department,	709
agency, or authority was advised in writing of the scheduled	710
effective date of the dissolution and was advised in writing of	711
the acknowledgment by the corporation of the applicability of the	712
provisions of section 1701.95 of the Revised Code.	713

(J) Upon the filing of a certificate of dissolution and such	714
accompanying documents or on a later date specified in the	715
certificate that is not more than ninety days after the filing,	716
the corporation shall be dissolved.	717

Sec. 1702.47.  (A) A corporation may be dissolved voluntarily	718
in the manner provided in this section.	719

(B) A resolution of dissolution for a corporation shall set	720
forth:	721

(1) That the corporation elects to be dissolved;

722

(2) Any additional provision deemed necessary with respect to	723
the proposed dissolution and winding up.	724

(C) The directors may adopt a resolution of dissolution in	725
the following cases:	726

(1) When the corporation has been adjudged bankrupt or has	727
made a general assignment for the benefit of creditors;	728

(2) By leave of the court, when a receiver has been appointed	729
in a general creditors' suit or in any suit in which the affairs	730
of the corporation are to be wound up;	731

(3) When substantially all of the assets have been sold at	732
judicial sale or otherwise;	733

(4) When the period of existence of the corporation specified	734
in its articles has expired.	735

(D)(1) The voting members at a meeting held for that purpose	736
may adopt a resolution of dissolution by the affirmative vote of a	737
majority of the voting members present in person or, if permitted,	738
by mail, by proxy, or by the use of authorized communications	739
equipment, if a quorum is present or, if the articles or the	740
regulations provide or permit, by the affirmative vote of a	741
greater or lesser proportion or number of the voting members, and	742
by the affirmative vote of the voting members or the affirmative	743
vote of the voting members of any particular class that is	744
required by the articles or the regulations. Notice of the meeting	745
of the members shall be sent to all the members who would be	746
entitled to vote at the meeting by mail, overnight delivery	747
service, or any authorized communications equipment.	748

(2) For purposes of division (D)(1) of this section,	749
participation by a voting member at a meeting through the use of	750
any of the means of communication described in that division	751
constitutes presence in person of that voting member at the	752
meeting for purposes of determining a quorum.	753

(E) Upon the adoption of a resolution of dissolution, a	754
certificate shall be prepared, on a form prescribed by the	755
secretary of state, setting forth the following:	756

(1) The name of the corporation;

757

(2) A statement that a resolution of dissolution has been	758
adopted;	759

(3) A statement of the manner of adoption of that resolution,	760
and, in the case of its adoption by the directors, a statement of	761
the basis for the adoption;	762

(4) The place in this state where its principal office is or	763
is to be located;	764

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

765

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

766

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

767

(F) The certificate described in division (E) of this section	768
shall be signed by any authorized officer, unless the officer	769
fails to execute and file the certificate within thirty days after	770
the adoption of the resolution, or upon any date specified in the	771
resolution as the date upon which the certificate is to be filed,	772
or upon the expiration of any period specified in the resolution	773
as the period within which the certificate is to be filed,	774
whichever is latest, in which event the certificate of dissolution	775
may be signed by any three voting members and shall set forth a	776
statement that the persons signing the certificate are voting	777
members and are filing the certificate because of the failure of	778
the officers to do so.	779

(G) A certificate of dissolution, filed with the secretary of	780
state, shall be accompanied by:	781

(1) An affidavit of one or more of the persons executing the	782
certificate of dissolution or of an officer of the corporation	783
containing a statement of the counties, if any, in this state in	784
which the corporation has personal property subject to personal	785
property taxes or a statement that the corporation is of a type	786
required to pay personal property taxes to state authorities only;	787

(2) A receipt, certificate, or other evidence showing the	788
payment of all personal property taxes accruing up to the date of	789
such filing or, if applicable, to the later date specified in the	790
certificate of dissolution in accordance with division (E) of this	791
section, unless the affidavit provided for in division (G)(1) of	792
this section states that the corporation has in this state no	793
personal property subject to personal property taxes;	794

(3) A receipt, certificate, or other evidence from the	795
director of job and family services showing that all contributions	796
due from the corporation as an employer have been paid, that such	797
payment has been adequately guaranteed, or that the corporation is	798
not subject to such contributions;	799

(4)(2) A receipt, certificate, or other evidence showing that	800
the payment of all sales, use, and highway use taxes accruing up	801
to the date of such filing or, if applicable, to the later date	802
specified in the certificate ofcorporation has paid all taxes	803
imposed under the laws of this state that are or will be due from	804
the corporation on the date of the dissolution in accordance with	805
division (E) of this section, or that such payment has been	806
adequately guaranteed;	807

(5)(3) In lieu of the receipt, certificate, or other evidence	808
described in division (G)(1) or (2), (3), or (4) of this section,	809
an affidavit of one or more of the persons executing the	810
certificate of dissolution or of an officer of the corporation	811
containing a statement of the date upon which the particular	812
department, agency, or authority was advised in writing of the	813
scheduled effective date of the dissolution and was advised in	814
writing of the acknowledgement by the corporation of the	815
applicability of section 1702.55 of the Revised Code.	816

(H) Upon the filing of a certificate of dissolution and those	817
accompanying documents or on a later date specified in the	818
certificate that is not more than ninety days after the filing,	819
the corporation shall be dissolved.	820

Sec. 3769.28.  The tax commissioner shall collect from each	821
permit holder who conducts a pari-mutuel system of wagering where	822
the wagering is less than five million dollars a sum of money	823
equal to one-tenth of one per cent of the total amount wagered and	824
where the wagering is five million dollars or more a sum of money	825
equal to fifteen hundredths of one per cent of the total amount	826
wagered during any horse-racing meeting for the purpose of	827
providing operating revenue for the political subdivisions wherein	828
such meetings are held. Such moneys shall be collected by the	829
commissioner withinWithin ten days after the close of sucha	830
meeting and shall be sent back to, the permit holder who paid the	831
tax. Such permit holdershall prepare and transmit to the tax	832
commissioner a final report showing the total amount wagered	833
during the horse-racing meeting and any other information required	834
by the commissioner relative to the tax levied by this section.	835
The final report shall be signed by the permit holder or an	836
authorized agent of the permit holder. The commissioner shall	837
prescribe the form of the final report.	838

The commissioner shall collect the tax due under this section	839
on amounts wagered during a horse-racing meeting within ten days	840
after the close of the meeting. The amount collected by the	841
commissioner shall be made payable to the chief fiscal officers of	842
the municipal corporations or townships in which such horse-racing	843
meeting took place and in which any such facilities or accessory	844
uses therefor were located. The commissioner shall then	845
immediately forward the moneysamount collected to thesuch chief	846
fiscal officers of the municipal corporations or townships in	847
which such horse-racing meeting took place and in which any such	848
facilities or accessory uses therefor were located. Such moneys	849
The amount collected shall be divided equally between the	850
municipal corporations or townships in which such horse-racing	851
meeting took place and in which any facilities or accessory uses	852
therefor were located. Such municipal corporations or townships	853
may distribute a portion of the moneys so received to any	854
adjoining political subdivision which incurs increased expenses	855
because of such horse-racing meeting.	856

This section shall not apply to any agricultural society	857
which holds a horse-racing permit.	858

The amount collected under this section from any one permit	859
holder shall not exceed fifteen thousand dollars from any one	860
horse-racing meeting in any calendar year.	861

Sec. 4301.42.  For the purpose of providing revenue for the	862
support of the state, a tax is hereby levied on the sale of beer	863
in sealed bottles and cans having twelve ounces or less of liquid	864
content, at the rate of fourteen one-hundredths of one cent on	865
each ounce of liquid content or fractional part of each ounce of	866
liquid content, and on such containers in excess of twelve ounces,	867
at the rate of eighty-four one-hundredths of one cent on each six	868
ounces of liquid content or fractional part of each six ounces of	869
liquid content. Sections 4307.01 to 4307.12 of the Revised Code	870
apply in the administration of that tax. Manufacturers, bottlers,	871
and canners of and wholesale dealers in beer, wholesale dealers in	872
beer, and S permit holders have the duty to pay the tax imposed by	873
this section and are entitled to the privileges in the manner	874
provided in section 4303.33 of the Revised Code.	875

Sec. 4303.33.  (A) Every A-1 permit holder in this state,	876
every bottler, importer, wholesale dealer, broker, producer, or	877
manufacturer of beer outside this state and within the United	878
States, and every B-1 permit holder and importer importing beer	879
from any manufacturer, bottler, person, or group of persons	880
however organized outside the United States for sale or	881
distribution for sale in this state, on or before the eighteenth	882
day of each month, shall make and file with the tax commissioner	883
upon a form prescribed by the tax commissioner an advance tax	884
payment in an amount estimated to equal the taxpayer's tax	885
liability for the month in which the advance tax payment is made.	886
If the advance tax payment credits claimed on the report are for	887
advance tax payments received by the tax commissioner on or before	888
the eighteenth day of the month covered by the report, the	889
taxpayer is entitled to an additional credit of three per cent of	890
the advance tax payment and a discount of three per cent shall be	891
allowed the taxpayer at the time of filing the report if filed as	892
provided in division (B) of this section on any amount by which	893
the tax liability reflected in the report exceeds the advance tax	894
payment estimate by not more than ten per cent. The additional	895
three per cent credit and three per cent discount shall be in	896
consideration for advancing the payment of the tax and other	897
services performed by the permit holder and other taxpayers in the	898
collection of the tax.	899

"Advance tax payment credit" means credit for payments made	900
by an A-1 or B-1 permit holder and any other persons during the	901
period covered by a report which was made in anticipation of the	902
tax liability required to be reported on that report.	903

"Tax liability" as used in division (A) of this section means	904
the total gross tax liability of an A-1 or B-1 permit holder and	905
any other persons for the period covered by a report before any	906
allowance for credits and discount.	907

(B) Every A-1 permit holder in this state, every bottler,	908
importer, wholesale dealer, broker, producer, or manufacturer of	909
beer outside this state and within the United States, and every	910
B-1 permit holder importing beer from any manufacturer, bottler,	911
person, or group of persons however organized outside the United	912
States, and every S permit holder, on or before the tenth day of	913
each month, shall make and file a report for the preceding month	914
upon a form prescribed by the tax commissioner which report shall	915
show the amount of beer produced, sold, and distributed for sale	916
in this state by the A-1 permit holder, sold and distributed for	917
sale in this state by each manufacturer, bottler, importer,	918
wholesale dealer, or broker outside this state and within the	919
United States, and the amount of beer imported into this state	920
from outside the United States and sold and distributed for sale	921
in this state by the B-1 permit holder or importer, and the amount	922
of beer sold in this state by the S permit holder.	923

The report shall be filed by mailing it to the tax	924
commissioner, together with payment of the tax levied by sections	925
4301.42 and 4305.01 of the Revised Code shown to be due on the	926
report after deduction of advance payment credits and any	927
additional credits or discounts provided for under this section.	928

(C)(1) Every A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S permit	929
holder in this state, on or before the eighteenth day of each	930
month, shall make and file a report with the tax commissioner upon	931
a form prescribed by the tax commissioner which report shall show,	932
on the report of each A-2, A-4, B-2a, and S permit holder the	933
amount of wine, cider, and mixed beverages produced and sold, or	934
sold in this state by each such A-2, A-4, B-2a, and S permit	935
holder for the next preceding calendar month and such other	936
information as the tax commissioner requires, and on the report of	937
each such B-2, B-3, B-4, and B-5 permit holder the amount of wine,	938
cider, and mixed beverages purchased from an importer, broker,	939
wholesale dealer, producer, or manufacturer located outside this	940
state and sold and distributed in this state by such B-2, B-3,	941
B-4, and B-5 permit holder, for the next preceding calendar month	942
and such other information as the tax commissioner requires.	943

(2) Every such A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S	944
permit holder in this state shall remit with the report the tax	945
levied by sections 4301.43 and, if applicable, 4301.432 of the	946
Revised Code less a discount thereon of three per cent of the	947
total tax so levied and paid, provided the return is filed	948
together with remittance of the amount of tax shown to be due	949
thereon, within the time prescribed. Any permit holder or other	950
persons who fail to file a report under this section, for each day	951
the person so fails, may be required to forfeit and pay into the	952
state treasury the sum of one dollar as revenue arising from the	953
tax imposed by sections 4301.42, 4301.43, 4301.432, and 4305.01 of	954
the Revised Code, and that sum may be collected by assessment in	955
the manner provided in section 4305.13 of the Revised Code.	956

(3) If the tax commissioner determines that the quantity	957
reported by a person does not warrant monthly reporting, the	958
commissioner may authorize the filing of returns and the payment	959
of the tax required by this section for periods longer than one	960
month.	961

(D) Every B-1 permit holder and importer in this state	962
importing beer from any manufacturer, bottler, person, or group of	963
persons however organized, outside the United States, if required	964
by the tax commissioner shall post a bond payable to the state in	965
such form and amount as the commissioner prescribes with surety to	966
the satisfaction of the tax commissioner, conditioned upon the	967
payment to the tax commissioner of taxes levied by sections	968
4301.42 and 4305.01 of the Revised Code.	969

(E) No such wine, beer, cider, or mixed beverages sold or	970
distributed in this state shall be taxed more than once under	971
sections 4301.42, 4301.43, and 4305.01 of the Revised Code.	972

(F) As used in this section:

973

(1) "Cider" has the same meaning as in section 4301.01 of the	974
Revised Code.	975

(2) "Wine" has the same meaning as in section 4301.01 of the	976
Revised Code, except that "wine" does not include cider.	977

(G) All money collected by the tax commissioner under this	978
section shall be paid to the treasurer of state as revenue arising	979
from the taxes levied by sections 4301.42, 4301.43, 4301.432, and	980
4305.01 of the Revised Code.	981

Sec. 4701.01.  As used in this chapter:

982

(A) "Practice of public accounting" means performing or	983
offering to perform any engagement that will result in the	984
issuance of an attest report and, with respect to a person who	985
holds a CPA certificate, PA registration, foreign certificate, or	986
firm registration, any other services involving the use of	987
accounting or auditing skills as established by rules adopted by	988
the accountancy board.	989

(B) "Public accounting firm" means a sole proprietorship, a	990
partnership, a limited liability company, a professional	991
association, a corporation-for-profit, or any other business	992
organization that is engaged in the practice of public accounting	993
in this state.	994

(C) "Opinion report" means any opinion on a financial	995
statement that is expressed in accordance with generally accepted	996
auditing standards as to the fairness of presentation of	997
information and that is used for guidance in financial	998
transactions, for accounting, or for assessing the status or	999
performance of commercial and noncommercial enterprises, whether	1000
public, private, or governmental.	1001

(D) "Peer review" means a study, appraisal, or review of one	1002
or more aspects of the professional work of a public accounting	1003
firm that meets the standards and requirements set forth by the	1004
accountancy board.	1005

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

1006

(1) Any review report on a financial statement that is issued	1007
with respect to any of the following:	1008

(a) Interim financial information in accordance with	1009
generally accepted auditing standards;	1010

(b) The financial information of a nonpublic entity in	1011
accordance with statements on standards for accounting and review	1012
services;	1013

(c) The reliability of another party's written assertion in	1014
accordance with statements on standards for attestation	1015
engagements.	1016

(2) Any other review report on a financial statement that is	1017
not described in division (E)(1) of this section and that is	1018
issued in accordance with standards promulgated by the American	1019
institute of certified public accountants.	1020

(F) "Compilation report" means any compilation report on a	1021
financial statement that is issued with respect to financial	1022
information of a nonpublic entity in accordance with statements on	1023
standards for accounting and review services as promulgated by the	1024
American institute of certified public accountants.	1025

(G) "Examination report" means any examination report on a	1026
financial statement that is issued with respect to another party's	1027
written assertion in accordance with statements on standards for	1028
attestation engagements as promulgated by the American institute	1029
of certified public accountants.	1030

(H) "Agreed-upon procedures report" means any report that is	1031
on a financial statement and that is based on agreed-upon	1032
procedures issued with respect to another party's written	1033
assertion in accordance with statements on standards for	1034
attestation engagements as promulgated by the American institute	1035
of certified public accountants.	1036

(I) "Qualified firm" means a sole proprietorship,	1037
partnership, professional association, corporation-for-profit,	1038
limited liability company, or other business organization in which	1039
the individuals who own a majority of the business organization	1040
interests in the business organization and control the business	1041
organization hold an Ohio permit or a foreign certificate.	1042

(J) "Own" means any direct or indirect ownership of an equity	1043
interest in a public accounting firm or qualified firm.	1044

(K) "Control" or "controlled" means the right to exercise the	1045
majority of the voting equity interests in a public accounting	1046
firm or qualified firm with respect to any matter.	1047

(L) "Equity interest" means any capital interest or profit	1048
interest in a sole proprietorship, partnership, professional	1049
association, corporation-for-profit, limited liability company, or	1050
other business organization.	1051

(M) "Ohio permit" means a permit to practice public	1052
accounting issued under division (A) of section 4701.10 of the	1053
Revised Code that is not revoked or suspended.	1054

(N) "Ohio registration" means the registration under division	1055
(B) of section 4701.10 of the Revised Code of a holder of a CPA	1056
certificate or PA registration who is not in the practice of	1057
public accounting in this state.	1058

(O) "Firm registration" or "registered firm" means	1059
registration as a public accounting firm under section 4701.04 of	1060
the Revised Code.	1061

(P) "PA registration" means registration as a public	1062
accountant under section 4701.07 of the Revised Code that is not	1063
revoked or suspended.	1064

(Q) "CPA certificate" means a certificate issued under	1065
section 4701.06 or 4701.061 of the Revised Code that is not	1066
revoked or suspended.	1067

(R) "Foreign certificate" means a license, permit,	1068
certificate of, or registration issued to a certified public	1069
accountant issued under the laws of another state that authorizes	1070
the holder to practice public accounting in that state, is valid,	1071
is in good standing, and has not expired.	1072

(S) "Attest report" means an opinion report, review report,	1073
compilation report, examination report, agreed-upon procedures	1074
report, or any similar report prepared in accordance with	1075
standards established by the American institute of certified	1076
public accountants with respect to a financial statement or other	1077
financial information.	1078

(T) "Person" means any individual, corporation-for-profit,	1079
business trust, estate, partnership, limited liability company,	1080
professional association, or other business organization.	1081

(U) Technical terms that define specific public accounting	1082
engagements have the same meanings as in the professional	1083
standards promulgated by the American institute of certified	1084
public accountants.	1085

(V)(1) "Good moral character" means the combination of	1086
personal traits of honesty, integrity, attention to duty,	1087
forthrightness, and self-restraint that enables a person to	1088
discharge the duties of the accounting profession fully and	1089
faithfully.	1090

(2) A history of dishonest acts or felonious acts or	1091
convictions is sufficient to prove lack of good moral character if	1092
that history demonstrates by a preponderance of the evidence that	1093
the person lacks one or more of the personal traits referred to in	1094
division (V)(1) of this section. A person who has a felony	1095
conviction related to one or more of those personal traits bears	1096
the burden of establishing the person's present good moral	1097
character, including the person's full and complete rehabilitation	1098
subsequent to the conviction. If less than one year has passed	1099
since the completion of the person's sentence on a felony	1100
conviction, including any period under a community control	1101
sanction or post-release control, the board may delay any	1102
determination of the person's good moral character until one year	1103
has passed from the time of the completion of that sentence.	1104

(3) In determining whether a person who has a felony	1105
conviction has met the person's burden of proof described in	1106
division (V)(2) of this section, the accountancy board may	1107
consider the following factors:	1108

(a) The person's path toward professional licensing following	1109
completion of the person's sentence;	1110

(b) The nature and degree of the person's academic	1111
achievements;	1112

(c) The nature and degree of the person's employment	1113
following completion of the person's sentence;	1114

(d) The person's degree of self-sufficiency following	1115
completion of the person's sentence;	1116

(e) The nature and degree of the person's other	1117
responsibilities following completion of the person's sentence;	1118

(f) The person's conviction for any other criminal offense	1119
since completion of the person's sentence for the person's first	1120
felony conviction;	1121

(g) Whether the person's application or presentation contains	1122
any inconsistencies or misleading explanations that convince the	1123
board that either the person or the person's attorney is trying to	1124
keep the board from acquiring a true, though damaging,	1125
representation of the person's character;	1126

(h) The nature and circumstances of the dishonest acts or	1127
felonious acts or convictions of the person;	1128

(i) Any other specifically identifiable information that the	1129
board determines to be relevant to the person's ability to	1130
discharge the duties of the accounting profession fully and	1131
faithfully.	1132

Sec. 4701.04.  (A) No public accounting firm located in this	1133
state shall engage in the practice of public accounting in this	1134
state unless it registers with the accountancy board and pays a	1135
registration fee set by the board.	1136

(B) Public accounting firms shall apply for initial	1137
registration within ninety days after formation or within ninety	1138
days after the commencement of practicing public accounting in	1139
this state. All public accounting firms shall renew their	1140
registration triennially. All public accounting firms shall submit	1141
with their initial and renewal registration applications all of	1142
the following:	1143

(1) A list of the names, addresses, and certificate or	1144
registration numbers of all individuals who hold an Ohio permit	1145
and who own an equity interest in the public accounting firm or	1146
are employed by the public accounting firm;	1147

(2) A list of the names and addresses of each person who does	1148
not hold an Ohio permit or a foreign certificate and who owns an	1149
equity interest in the public accounting firm if the person's	1150
principal place of business is located in this state;	1151

(3) A statement that the public accounting firm and each	1152
person who owns an equity interest in the public accounting firm	1153
or is employed by the public accounting firm and who does not hold	1154
an Ohio permit or a foreign certificate is in compliance with	1155
divisions (C) and (D) of this section.	1156

(C) A public accounting firm shall satisfy all of the	1157
following requirements in order to register:	1158

(1) Except as provided in division (C)(5) of this section,	1159
each partner, shareholder, member, or other person who owns an	1160
equity interest in the public accounting firm shall hold an Ohio	1161
permit or a foreign certificate.	1162

(2) The chief executive of any office of a public accounting	1163
firm located in or doing business in this state shall hold	1164
designate an individual who holds an Ohio permit or a foreign	1165
certificatewho shall be responsible for the proper registration	1166
of the firm. The public accounting firm shall identify this	1167
individual to the board.	1168

(3) Each individual in a public accounting firm who signs any	1169
attest report issued from an office of the public accounting firm	1170
located in this state shall hold an Ohio permit.	1171

(4) An individual who owns an equity interest in the public	1172
accounting firm or is employed by the public accounting firm and	1173
who holds an Ohio permit or a foreign certificate, or a qualified	1174
firm that owns an equity interest in the public accounting firm,	1175
shall assume ultimate responsibility for any attest report issued	1176
from an office of the public accounting firm located in this	1177
state.	1178

(5) Any person who does not hold an Ohio permit or a foreign	1179
certificate and who holds an equity interest in the public	1180
accounting firm shall satisfy the conditions set forth in division	1181
(D) of this section.	1182

(6) The public accounting firm shall provide for the transfer	1183
of the equity interest owned by persons who do not hold an Ohio	1184
permit or a foreign certificate to either the public accounting	1185
firm or to another person who owns an equity interest in the firm	1186
if a person who does not hold an Ohio permit or a foreign	1187
certificate withdraws from or ceases to be employed by the public	1188
accounting firm. The public accounting firm may make payments in	1189
connection with the person's withdrawal from the firm to that	1190
person or, if that person is deceased or dissolved, to the	1191
person's estate or successor in interest.	1192

(D) A person who does not hold an Ohio permit or a foreign	1193
certificate may own an equity interest in a public accounting firm	1194
if all of the following conditions are met:	1195

(1) All of the individuals who hold an Ohio permit or a	1196
foreign certificate and who own equity interests in the public	1197
accounting firm, and qualified firms that own equity interests in	1198
the public accounting firm, own, in the aggregate, a majority of	1199
the equity interests in the public accounting firm and control the	1200
public accounting firm.	1201

(2) The person does not assume or use any titles or	1202
designations specified in division (A) of section 4701.14 of the	1203
Revised Code. The person may designate or refer to the person as a	1204
shareholder, partner, member, principal, owner, or officer of the	1205
public accounting firm and also may use any other title that the	1206
board authorizes by rule.	1207

(3) The person is not in violation of any standard regarding	1208
the character or conduct of that person that the board establishes	1209
by rule.	1210

(4) The person's participation in the business of the public	1211
accounting firm is the person's principal occupation and consists	1212
of providing services to or on behalf of the public accounting	1213
firm, and the person is not functioning solely or predominately as	1214
a passive investor in the public accounting firm.	1215

(5) The person has graduated with a baccalaureate or higher	1216
degree conferred by a college or university approved by the board.	1217

(6) The person meets or exceeds the continuing education	1218
requirements that the board establishes by rule.	1219

(7)(6) A person who holds a professional license,	1220
registration, or certification issued by this state or another	1221
state complies with the requirements of that license,	1222
registration, or certification.	1223

(8)(7) The person abides by the code of conduct of the	1224
American institute of certified public accountants or a comparable	1225
code of professional conduct that the board adopts by rule.	1226

(9)(8) The person complies with all applicable provisions of	1227
this chapter and the rules adopted by the board.	1228

(E) A person who owns a voting equity interest in a public	1229
accounting firm may not delegate, by proxy or otherwise, the duty	1230
to exercise any voting rights to a person that does not hold an	1231
Ohio permit or a foreign certificate or to a person that is not a	1232
qualified firm.	1233

(F) As a condition for initial or renewal registration of a	1234
public accounting firm on and after January 1, 1993, the board, by	1235
rule, shall require that each public accounting firm undergo a	1236
peer review to determine the public accounting firm's degree of	1237
compliance in the practice of public accounting with generally	1238
accepted accounting principles, generally accepted auditing	1239
standards, and other generally accepted technical standards as	1240
defined by the board in rule, unless the public accounting firm	1241
meets one of the exceptions in division (J) of this section.	1242

(G) The board shall adopt rules establishing guidelines for	1243
peer reviews, and may authorize an agent to administer all or part	1244
of the board's peer review program and to assess a reasonable fee	1245
to firms to cover the costs incurred by the agent for program	1246
administration. The rules shall do all of the following:	1247

(1) Designate a peer review committee consisting of	1248
accounting professionals to serve as advisors to the board and to	1249
ensure that the board's guidelines are followed. The board may	1250
establish fair and reasonable compensation for the committee	1251
members to be paid for time they spend conducting committee	1252
business.	1253

(2) Require that the peer review be conducted by a reviewer	1254
that is both independent of the public accounting firm reviewed	1255
and qualified pursuant to board rules;	1256

(3) Require that the standards and practices applied by the	1257
reviewer be at least as stringent as those applied by the American	1258
institute of certified public accountants;	1259

(4) Prohibit the use or disclosure of information obtained by	1260
members of the board or a committee of peer reviewers during or in	1261
connection with the peer review process for purposes other than	1262
those related to determining the degree of compliance by the	1263
public accounting firm with generally accepted accounting	1264
principles, generally accepted auditing standards, and other	1265
generally accepted technical standards as defined by the board in	1266
rule. Division (G)(4) of this section does not apply to the use or	1267
disclosure of information that is described in division (K)(3) of	1268
this section or that is necessary to comply with any provision of	1269
law.	1270

(H)(1) If a peer review report indicates that a public	1271
accounting firm does not comply with standards and practices set	1272
forth in the rules adopted by the board guidelines, the board, in	1273
its discretion, may hold a hearing to review the results of the	1274
peer review report. If the board, after conducting the hearingor	1275
its authorized peer review program administrator, determines that	1276
the public accounting firm does not comply with the standards and	1277
practices, it may issue an order that requiresrequire both of the	1278
following:	1279

(a) Remedial or disciplinary action, which may include any of	1280
the following:	1281

(i) Requiring employees of the public accounting firm to	1282
complete general or specific continuing professional education	1283
courses;	1284

(ii) Requiring the public accounting firm to undergo peer	1285
review more frequently than triennially and peer review that is	1286
conducted in whole or part under the direct supervision of the	1287
board or its designee;	1288

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

1289

(iv) Imposing any disciplinary measures set forth in division	1290
(B) of section 4701.16 of the Revised Code.	1291

(b) An affidavit and supporting documentation from the public	1292
accounting firm submitted within the time specified by the board	1293
indicating completion of required remedial actions.	1294

(2) If the board, or its authorized peer review program	1295
administrator, determines that a public accounting firm has not	1296
complied with any requirement ordered under division (H) of this	1297
section, or if the board determines, after the review of a peer	1298
review report, that the public accounting firm has a history of	1299
noncompliance with standards and practices set forth in board	1300
rules, the board may hold a hearing to determine the extent of the	1301
firm's noncompliance. If the board, after conducting the hearing,	1302
determines that the public accounting firm does not comply with	1303
appropriate standards and practices, the board may issue an order	1304
that imposes any disciplinary measure set forth in division (B) of	1305
section 4701.16 of the Revised Code.	1306

(3) Notwithstanding divisions (K)(1) and (2) of this section,	1307
all matters relating to the procedures for determining compliance	1308
with the standards and practices under division (H)(1)(2) of this	1309
section are subject to Chapter 119. of the Revised Code, including	1310
the notice and conduct of any hearing and the issuance and appeal	1311
of any order. Remedial orders made under division (H)(1) of this	1312
section are not subject to Chapter 119. of the Revised Code.	1313

(I) The public accounting firm reviewed shall pay for any	1314
peer review performed.	1315

(J) The board may exempt a public accounting firm from the	1316
requirement to undergo a peer review if the public accounting firm	1317
submits to the board a written and notarized statement that the	1318
public accounting firm meets at least one of the following grounds	1319
for exemption identified in the statement:	1320

(1) Within three years of the date of application for initial	1321
or renewal registration, the public accounting firm has been	1322
subject tocompleted a peer review acceptable to the board and	1323
conducted pursuant to standards not less stringent than the peer	1324
review standards appliedpromulgated by the American institute of	1325
certified public accountants. A peer review that does not comply	1326
with standards and practices set forth in the rules adopted by the	1327
board and that may subject a public accounting firm to remedial or	1328
disciplinary action pursuant to division (H) of this section, does	1329
not qualify as an acceptable peer review. The public accounting	1330
firm shall submit to the board a copy of the results of the peer	1331
review and any additional documentation required by the board. The	1332
board shall not require submittal of the working papers related to	1333
the peer review process.	1334

(2) Within three years of the date of application for initial	1335
or renewal registration, the public accounting firm has undergone	1336
completed a peer review acceptable to the board that was conducted	1337
in another state or foreign country. The public accounting firm	1338
shall submit to the board a copy of the results of the peer review	1339
and any additional documentation required by the board, including	1340
a detailed report of the procedures and standards applied by the	1341
reviewer.	1342

(3) The public accounting firm has never practiced public	1343
accounting in this state or any other state or foreign country	1344
and, will undergocomplete a peer review acceptable to the board	1345
within eighteen months of initial registration, and will review	1346
its registration with the board two years after initial	1347
registration as specified in rules the board adopts.	1348

(4) The public accounting firm, on a schedule as required by	1349
rule adopted by the board, submits a report to the board that	1350
states all of the following:	1351

(a) The public accounting firm does not undertake any	1352
engagement that will result in the issuance of an attest report or	1353
other engagement that is subject to peer review in accordance with	1354
division (F) of this section.	1355

(b) Within the next three years, the public accounting firm	1356
does not intend to undertake any engagement that will result in	1357
the issuance of any attest report.	1358

(c) The public accounting firm agrees to notify the board	1359
within ninety days after accepting any engagement that will result	1360
in the issuance of any attest report or other engagement that is	1361
subject to peer review in accordance with division (F) of this	1362
section and will undergocomplete a peer review acceptable to the	1363
board within one year after the acceptance of an engagement of	1364
that nature.	1365

(5) Subject to the board's approval,and for reasons of	1366
personal health, military service, or other good cause as defined	1367
in rules the board adopts, the public accounting firm is entitled	1368
to an exemption.	1369

(K) In any civil action, arbitration, or administrative	1370
proceeding involving a public accounting firm, all of the	1371
following shall apply:	1372

(1) The proceedings, records, and work papers of any	1373
reviewer, including board members and review committee members,	1374
involved in the peer review process are privileged and not subject	1375
to discovery, subpoena, or other means of legal process and may	1376
not be introduced into evidence.	1377

(2) No reviewer, including board members and review committee	1378
members, involved in the peer review process shall be permitted or	1379
required to testify as to any matters produced, presented,	1380
disclosed, or discussed during or in connection with the peer	1381
review process or shall be required to testify to any finding,	1382
recommendation, evaluation, opinion, or other actions of those	1383
committees or their members.	1384

(3) No privilege exists under this section for either of the	1385
following:	1386

(a) Information presented or considered in the peer review	1387
process that was otherwise available to the public;	1388

(b) Materials prepared in connection with a particular	1389
engagement merely because they subsequently are presented or	1390
considered as part of the peer review process.	1391

(L)(1) If a peer review report indicates that a public	1392
accounting firm complies with standards and practices set forth in	1393
rules adopted by the board guidelines, the board shall destroy all	1394
documents and reports related to the peer review within thirty	1395
days after the board completes its review of the report. If	1396

(2) If a peer review report indicates that a public	1397
accounting firm does not comply with those standards and practices	1398
set forth in rules adopted by the board, the board shall retain	1399
all documents and reports related to the peer review until	1400
completion of the next peer review that complies with standards	1401
and practices set forth in rules adopted by the board pursuant to	1402
division (G) of this section. The board also may use these	1403
documents to determine a history of noncompliance with standards	1404
and practices in any proceeding held under division (H)(2) of this	1405
section.	1406

Sec. 5703.061. Except as otherwise provided in this section,	1407
the tax commissioner may cancel a debt owed to the state arising	1408
from any tax administered by the commissioner if the total amount	1409
of the debt does not exceed fifty dollars and if the debt consists	1410
only of unpaid taxes due for a single reporting period and of any	1411
penalty, interest, assessment, or other charge arising from such	1412
unpaid taxes. The commissioner shall not cancel any debt that has	1413
been certified to the attorney general under section 131.02 of the	1414
Revised Code or that is subject to an appeal filed with the board	1415
of tax appeals.	1416

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

1417

(1) "Instrument" has the same meaning as in section 1303.03	1418
of the Revised Code.	1419

(2) "Financial transaction device" has the same meaning as in	1420
section 113.40 of the Revised Code.	1421

(B) If a taxpayer or employer required by any tax	1422
administered by the department of taxation to pay taxes,	1423
penalties, or interest, or other charges arising from unpaid taxes	1424
makes payment of the taxes, penalties, or interest, or other	1425
charges with a nonnegotiable or dishonored instrument, an	1426
instrument that is determined to be nonnegotiable, or with any	1427
financial transaction device that is declined, returned, or	1428
dishonored, a penalty of fifty dollars shall be added to the	1429
amount due. The penalty imposed by this section shall be assessed	1430
and collected in the same manner as the taxes, penalties, or	1431
interest, or other charges. All or part of any penalty imposed	1432
under this section may be abated by the tax commissioner. The	1433
commissioner may assess only one penalty under this section	1434
against the same instrument or the same financial transaction	1435
device for the same payment.	1436

Sec. 5703.37.  (A)(1) Except as provided in division (B) of	1437
this section, whenever service of a notice or order is required in	1438
the manner provided in this section, a copy of the notice or order	1439
shall be served upon the person affected thereby either by	1440
personal service, by certified mail, or by a delivery service	1441
authorized under section 5703.056 of the Revised Code that	1442
notifies the tax commissioner of the date of delivery.	1443

(2) With the permission of the person affected by the notice	1444
or order, the commissioner may enter into a written agreement to	1445
deliver a notice or order byIn lieu of serving a copy of a notice	1446
or order through one of the means provided in division (A)(1) of	1447
this section, the commissioner may serve a notice or order upon	1448
the person affected thereby through alternative means as provided	1449
in this section, including, but not limited to, delivery by secure	1450
electronic mail as provided in division (F) of this section.	1451
Delivery by such means satisfies the requirements for delivery	1452
under this section.	1453

(B)(1)(a) If certified mail is returned because of an	1454
undeliverable address, the commissioner shall first utilize	1455
reasonable means to ascertain a new last known address, including	1456
the use of a change of address service offered by the United	1457
States postal service or an authorized delivery service under	1458
section 5703.056 of the Revised Code. If, after using reasonable	1459
means, the commissioner is unable to ascertain a new last known	1460
address, the assessment is final for purposes of section 131.02 of	1461
the Revised Code sixty days after the notice or order sent by	1462
certified mail is first returned to the commissioner, and the	1463
commissioner shall certify the notice or order, if applicable, to	1464
the attorney general for collection under section 131.02 of the	1465
Revised Code.	1466

(b) Notwithstanding certification to the attorney general	1467
under division (B)(1)(a) of this section, once the commissioner or	1468
attorney general, or the designee of either, makes an initial	1469
contact with the person to whom the notice or order is directed,	1470
the person may protest an assessment by filing a petition for	1471
reassessment within sixty days after the initial contact. The	1472
certification of an assessment under division (B)(1)(a) of this	1473
section is prima-facie evidence that delivery is complete and that	1474
the notice or order is served.	1475

(2) If mailing of a notice or order by certified mail is	1476
returned for some cause other than an undeliverable address, the	1477
tax commissioner shall resend the notice or order by ordinary	1478
mail. The notice or order shall show the date the commissioner	1479
sends the notice or order and include the following statement:	1480

"This notice or order is deemed to be served on the addressee	1481
under applicable law ten days from the date this notice or order	1482
was mailed by the commissioner as shown on the notice or order,	1483
and all periods within which an appeal may be filed apply from and	1484
after that date."	1485

Unless the mailing is returned because of an undeliverable	1486
address, the mailing of that information is prima-facie evidence	1487
that delivery of the notice or order was completed ten days after	1488
the commissioner sent the notice or order by ordinary mail and	1489
that the notice or order was served.	1490

If the ordinary mail is subsequently returned because of an	1491
undeliverable address, the commissioner shall proceed under	1492
division (B)(1)(a) of this section. A person may challenge the	1493
presumption of delivery and service under this division in	1494
accordance with division (C) of this section.	1495

(C)(1) A person disputing the presumption of delivery and	1496
service under division (B) of this section bears the burden of	1497
proving by a preponderance of the evidence that the address to	1498
which the notice or order was sent was not an address with which	1499
the person was associated at the time the commissioner originally	1500
mailed the notice or order by certified mail. For the purposes of	1501
this section, a person is associated with an address at the time	1502
the commissioner originally mailed the notice or order if, at that	1503
time, the person was residing, receiving legal documents, or	1504
conducting business at the address; or if, before that time, the	1505
person had conducted business at the address and, when the notice	1506
or order was mailed, the person's agent or the person's affiliate	1507
was conducting business at the address. For the purposes of this	1508
section, a person's affiliate is any other person that, at the	1509
time the notice or order was mailed, owned or controlled at least	1510
twenty per cent, as determined by voting rights, of the	1511
addressee's business.	1512

(2) If the person elects to protest an assessment certified	1513
to the attorney general for collection, the person must do so	1514
within sixty days after the attorney general's initial contact	1515
with the person. The attorney general may enter into a compromise	1516
with the person under sections 131.02 and 5703.06 of the Revised	1517
Code if the person does not file a petition for reassessment with	1518
the tax commissioner.	1519

(D) Nothing in this section prohibits the tax commissioner or	1520
the commissioner's designee from delivering a notice or order by	1521
personal service.	1522

(E) Collection actions taken pursuant to section 131.02 of	1523
the Revised Code upon any assessment being challenged under	1524
division (B)(1)(b) of this section shall be stayed upon the	1525
pendency of an appeal under this section. If a petition for	1526
reassessment is filed pursuant to this section on a claim that has	1527
been certified to the attorney general for collection, the claim	1528
shall be uncertified.	1529

(F) The commissioner may serve a notice or order upon the	1530
person affected by the notice or order through secure electronic	1531
means only with the person's consent. The commissioner must inform	1532
the recipient, electronically or by mail, that a notice or order	1533
is available for electronic review and provide instructions to	1534
access and print the notice or order. The recipient's electronic	1535
access of the notice or order satisfies the requirements for	1536
delivery under this section. If the recipient fails to access the	1537
notice or order electronically within ten business days, the	1538
notice or order shall be served upon the person through one of the	1539
means provided in division (A)(1) of this section.	1540

(G) As used in this section:

1541

(1) "Last known address" means the address the department has	1542
at the time the document is originally sent by certified mail, or	1543
any address the department can ascertain using reasonable means	1544
such as the use of a change of address service offered by the	1545
United States postal service or an authorized delivery service	1546
under section 5703.056 of the Revised Code.	1547

(2) "Undeliverable address" means an address to which the	1548
United States postal service or an authorized delivery service	1549
under section 5703.056 of the Revised Code is not able to deliver	1550
a notice or order, except when the reason for nondelivery is	1551
because the addressee fails to acknowledge or accept the notice or	1552
order.	1553

Sec. 5703.47.  (A) As used in this section, "federal	1554
short-term rate" means the rate of the average market yield on	1555
outstanding marketable obligations of the United States with	1556
remaining periods to maturity of three years or less, as	1557
determined under section 1274 of the "Internal Revenue Code of	1558
1986," 100 Stat. 2085, 26 U.S.C.A. 1274, for July of the current	1559
year.	1560

(B) On the fifteenth day of October of each year, the tax	1561
commissioner shall determine the federal short-term rate. For	1562
purposes of any section of the Revised Code requiring interest to	1563
be computed at the rate per annum required by this section, the	1564
rate determined by the commissioner under this section, rounded to	1565
the nearest whole number per cent, plus three per cent, shall be	1566
the interest rate per annum used in making the computation for	1567
interest that accrues during the following calendar year. For the	1568
purposes of sections 5719.041 and 5731.23 of the Revised Code,	1569
references to the "federal short-term rate" are references to the	1570
federal short-term rate as determined by the tax commissioner	1571
under this section rounded to the nearest whole number per cent.	1572

(C) Within ten days after the interest rate per annum is	1573
determined under this section, the tax commissioner shall notify	1574
the auditor of each county in writing of that rate of interest.	1575

Sec. 5705.313.  (A)(1) Whenever a board of county	1576
commissioners adopts a resolution pursuant to section 5739.021 or	1577
5739.026 of the Revised Code to levy or increase the rate of a	1578
sales tax, the board may adopt an accompanying resolution reducing	1579
the rate of any property tax the county currently is levying for	1580
current expenses within the ten-mill limitation or amending a	1581
previously adopted accompanying resolution increasing the amount	1582
of an existing reduction made under this division.	1583

(2) At any time after a board of county commissioners has	1584
adopted a resolution pursuant to section 5739.021 or 5739.026 of	1585
the Revised Code to levy or increase the rate of the sales tax,	1586
the board may adopt another resolution reducing the rate of any	1587
property tax the county currently is levying for current expenses	1588
within the ten-mill limitation or amending a previously adopted	1589
accompanying resolution increasing the amount of an existing	1590
reduction made under this division. This resolution may be adopted	1591
at any time during which the county is levying the sales tax under	1592
section 5739.021 or 5739.026 of the Revised Code.	1593

The rate reduction under division (A)(1) or (2) of this	1594
section may be any amount, provided it does not reduce the annual	1595
property tax revenue for current expenses within the ten-mill	1596
limitation by more than the amount of annual revenue the	1597
commissioners estimate the sales tax levy to generate. The	1598
resolution shall set forth the current millage rate for current	1599
expenses of the county within the ten-mill limitation; the number	1600
of such mills not currently levied under this division, if any;	1601
the number of such mills currently levied that will not be levied	1602
until a resolution is adopted under division (C) of this section	1603
or the expiration of the specified number of years the rate is not	1604
to be levied, and the tax year in which the rate reduction shall	1605
first apply. The resolution may state that the property tax rate	1606
reduction will be for a specified number of years. A copy of the	1607
resolution shall be certified to the county auditor.	1608

(B) Notwithstanding any other provision of law, whenever a	1609
board of county commissioners adopts a resolution under division	1610
(A) of this section, no other taxing unit may levy any portion of	1611
the rate the county does not levy until the expiration of the	1612
specified number of years that such portion of the rate reduction	1613
is in effect as set forth in the resolution, except as may be	1614
required by the county budget commission pursuant to division (D)	1615
of section 5705.31 of the Revised Code to provide for the levies	1616
required in division (B) of that section for debt charges of a	1617
subdivision or taxing unit.	1618

(C) At any time a rate reduction is in effect the board of	1619
county commissioners may, by two-thirds vote of its members, adopt	1620
a resolution increasing the rate of the levy by any amount up to	1621
the rate at which it was levied prior to its rate reduction under	1622
this section. The board shall then immediately certify its action	1623
to the county auditor. If the commissioners increase the rate to	1624
the full rate at which it was levied prior to its rate reduction	1625
under this section, this section shall thereupon cease to apply to	1626
that county until another resolution is adopted pursuant to	1627
division (A)(1) or (2) of this section.	1628

Sec. 5709.084. Real and personal property comprising a	1629
convention center that is constructed or, in the case of personal	1630
property, acquired, after January 1, 2010, are exempt from	1631
taxation if the convention center is located in a county having a	1632
population, when construction of the convention center commences,	1633
of more than one million two hundred thousand according to the	1634
most recent federal decennial census, and if the convention	1635
center, or the land upon which the convention center is situated,	1636
is owned or leased by the county. For the purposes of this	1637
section, construction of the convention center commences upon the	1638
earlier of issuance of debt to finance all or a portion of the	1639
convention center, demolition of existing structures on the site,	1640
or grading of the site in preparation for construction.	1641

Real and personal property comprising a convention center	1642
owned by the largest city in a county having a population greater	1643
than seven hundred thousand but less than nine hundred thousand	1644
according to the most recent federal decennial census is exempt	1645
from taxation, regardless of whether the property is leased to or	1646
otherwise operated or managed by a person other than the city.	1647

Real and personal property comprising a convention center or	1648
arena owned by the largest city in a county having a population	1649
greater than two hundred thirty-five thousand but less than three	1650
hundred thousand according to the most recent federal decennial	1651
census at the time of the construction of the convention center or	1652
arena is exempt from taxation, regardless of whether the property	1653
is leased to or otherwise operated or managed by a person other	1654
than the city.	1655

As used in this section, "convention center" hasand "arena"	1656
have the same meaningmeanings as in section 307.695 of the	1657
Revised Code.	1658

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

1659

(1) "Blighted area" and "impacted city" have the same	1660
meanings as in section 1728.01 of the Revised Code.	1661

(2) "Business day" means a day of the week excluding	1662
Saturday, Sunday, and a legal holiday as defined under section	1663
1.14 of the Revised Code.	1664

(3) "Housing renovation" means a project carried out for	1665
residential purposes.	1666

(4) "Improvement" means the increase in the assessed value of	1667
any real property that would first appear on the tax list and	1668
duplicate of real and public utility property after the effective	1669
date of an ordinance adopted under this section were it not for	1670
the exemption granted by that ordinance.	1671

(5) "Incentive district" means an area not more than three	1672
hundred acres in size enclosed by a continuous boundary in which a	1673
project is being, or will be, undertaken and having one or more of	1674
the following distress characteristics:	1675

(a) At least fifty-one per cent of the residents of the	1676
district have incomes of less than eighty per cent of the median	1677
income of residents of the political subdivision in which the	1678
district is located, as determined in the same manner specified	1679
under section 119(b) of the "Housing and Community Development Act	1680
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended;	1681

(b) The average rate of unemployment in the district during	1682
the most recent twelve-month period for which data are available	1683
is equal to at least one hundred fifty per cent of the average	1684
rate of unemployment for this state for the same period.	1685

(c) At least twenty per cent of the people residing in the	1686
district live at or below the poverty level as defined in the	1687
federal Housing and Community Development Act of 1974, 42 U.S.C.	1688
5301, as amended, and regulations adopted pursuant to that act.	1689

(d) The district is a blighted area.

1690

(e) The district is in a situational distress area as	1691
designated by the director of development under division (F) of	1692
section 122.23 of the Revised Code.	1693

(f) As certified by the engineer for the political	1694
subdivision, the public infrastructure serving the district is	1695
inadequate to meet the development needs of the district as	1696
evidenced by a written economic development plan or urban renewal	1697
plan for the district that has been adopted by the legislative	1698
authority of the subdivision.	1699

(g) The district is comprised entirely of unimproved land	1700
that is located in a distressed area as defined in section 122.23	1701
of the Revised Code.	1702

(6) "Project" means development activities undertaken on one	1703
or more parcels, including, but not limited to, construction,	1704
expansion, and alteration of buildings or structures, demolition,	1705
remediation, and site development, and any building or structure	1706
that results from those activities.	1707

(7) "Public infrastructure improvement" includes, but is not	1708
limited to, public roads and highways; water and sewer lines;	1709
environmental remediation; land acquisition, including acquisition	1710
in aid of industry, commerce, distribution, or research;	1711
demolition, including demolition on private property when	1712
determined to be necessary for economic development purposes;	1713
stormwater and flood remediation projects, including such projects	1714
on private property when determined to be necessary for public	1715
health, safety, and welfare; the provision of gas, electric, and	1716
communications service facilities; and the enhancement of public	1717
waterways through improvements that allow for greater public	1718
access.	1719

(B) The legislative authority of a municipal corporation, by	1720
ordinance, may declare improvements to certain parcels of real	1721
property located in the municipal corporation to be a public	1722
purpose. Improvements with respect to a parcel that is used or to	1723
be used for residential purposes may be declared a public purpose	1724
under this division only if the parcel is located in a blighted	1725
area of an impacted city. Except with the approval under division	1726
(D) of this section of the board of education of each city, local,	1727
or exempted village school district within which the improvements	1728
are located, not more than seventy-five per cent of an improvement	1729
thus declared to be a public purpose may be exempted from real	1730
property taxation for a period of not more than ten years. The	1731
ordinance shall specify the percentage of the improvement to be	1732
exempted from taxation and the life of the exemption.	1733

An ordinance adopted or amended under this division shall	1734
designate the specific public infrastructure improvements made, to	1735
be made, or in the process of being made by the municipal	1736
corporation that directly benefit, or that once made will directly	1737
benefit, the parcels for which improvements are declared to be a	1738
public purpose. The service payments provided for in section	1739
5709.42 of the Revised Code shall be used to finance the public	1740
infrastructure improvements designated in the ordinance, for the	1741
purpose described in division (D)(1) of this section or as	1742
provided in section 5709.43 of the Revised Code.	1743

(C)(1) The legislative authority of a municipal corporation	1744
may adopt an ordinance creating an incentive district and	1745
declaring improvements to parcels within the district to be a	1746
public purpose and, except as provided in division (F) of this	1747
section, exempt from taxation as provided in this section, but no	1748
legislative authority of a municipal corporation that has a	1749
population that exceeds twenty-five thousand, as shown by the most	1750
recent federal decennial census, shall adopt an ordinance that	1751
creates an incentive district if the sum of the taxable value of	1752
real property in the proposed district for the preceding tax year	1753
and the taxable value of all real property in the municipal	1754
corporation that would have been taxable in the preceding year	1755
were it not for the fact that the property was in an existing	1756
incentive district and therefore exempt from taxation exceeds	1757
twenty-five per cent of the taxable value of real property in the	1758
municipal corporation for the preceding tax year. The ordinance	1759
shall delineate the boundary of the district and specifically	1760
identify each parcel within the district. A district may not	1761
include any parcel that is or has been exempted from taxation	1762
under division (B) of this section or that is or has been within	1763
another district created under this division. An ordinance may	1764
create more than one such district, and more than one ordinance	1765
may be adopted under division (C)(1) of this section.	1766

(2) Not later than thirty days prior to adopting an ordinance	1767
under division (C)(1) of this section, if the municipal	1768
corporation intends to apply for exemptions from taxation under	1769
section 5709.911 of the Revised Code on behalf of owners of real	1770
property located within the proposed incentive district, the	1771
legislative authority of a municipal corporation shall conduct a	1772
public hearing on the proposed ordinance. Not later than thirty	1773
days prior to the public hearing, the legislative authority shall	1774
give notice of the public hearing and the proposed ordinance by	1775
first class mail to every real property owner whose property is	1776
located within the boundaries of the proposed incentive district	1777
that is the subject of the proposed ordinance.	1778

(3)(a) An ordinance adopted under division (C)(1) of this	1779
section shall specify the life of the incentive district and the	1780
percentage of the improvements to be exempted, shall designate the	1781
public infrastructure improvements made, to be made, or in the	1782
process of being made, that benefit or serve, or, once made, will	1783
benefit or serve parcels in the district. The ordinance also shall	1784
identify one or more specific projects being, or to be, undertaken	1785
in the district that place additional demand on the public	1786
infrastructure improvements designated in the ordinance. The	1787
project identified may, but need not be, the project under	1788
division (C)(3)(b) of this section that places real property in	1789
use for commercial or industrial purposes. Except as otherwise	1790
permitted under that division, the service payments provided for	1791
in section 5709.42 of the Revised Code shall be used to finance	1792
the designated public infrastructure improvements, for the purpose	1793
described in division (D)(1) or (E) of this section, or as	1794
provided in section 5709.43 of the Revised Code.	1795

An ordinance adopted under division (C)(1) of this section on	1796
or after March 30, 2006, shall not designate police or fire	1797
equipment as public infrastructure improvements, and no service	1798
payment provided for in section 5709.42 of the Revised Code and	1799
received by the municipal corporation under the ordinance shall be	1800
used for police or fire equipment.	1801

(b) An ordinance adopted under division (C)(1) of this	1802
section may authorize the use of service payments provided for in	1803
section 5709.42 of the Revised Code for the purpose of housing	1804
renovations within the incentive district, provided that the	1805
ordinance also designates public infrastructure improvements that	1806
benefit or serve the district, and that a project within the	1807
district places real property in use for commercial or industrial	1808
purposes. Service payments may be used to finance or support	1809
loans, deferred loans, and grants to persons for the purpose of	1810
housing renovations within the district. The ordinance shall	1811
designate the parcels within the district that are eligible for	1812
housing renovation. The ordinance shall state separately the	1813
amounts or the percentages of the expected aggregate service	1814
payments that are designated for each public infrastructure	1815
improvement and for the general purpose of housing renovations.	1816

(4) Except with the approval of the board of education of	1817
each city, local, or exempted village school district within the	1818
territory of which the incentive district is or will be located,	1819
and subject to division (E) of this section, the life of an	1820
incentive district shall not exceed ten years, and the percentage	1821
of improvements to be exempted shall not exceed seventy-five per	1822
cent. With approval of the board of education, the life of a	1823
district may be not more than thirty years, and the percentage of	1824
improvements to be exempted may be not more than one hundred per	1825
cent. The approval of a board of education shall be obtained in	1826
the manner provided in division (D) of this section.	1827

(D)(1) If the ordinance declaring improvements to a parcel to	1828
be a public purpose or creating an incentive district specifies	1829
that payments in lieu of taxes provided for in section 5709.42 of	1830
the Revised Code shall be paid to the city, local, or exempted	1831
village, and joint vocational school district in which the parcel	1832
or incentive district is located in the amount of the taxes that	1833
would have been payable to the school district if the improvements	1834
had not been exempted from taxation, the percentage of the	1835
improvement that may be exempted from taxation may exceed	1836
seventy-five per cent, and the exemption may be granted for up to	1837
thirty years, without the approval of the board of education as	1838
otherwise required under division (D)(2) of this section.	1839

(2) Improvements with respect to a parcel may be exempted	1840
from taxation under division (B) of this section, and improvements	1841
to parcels within an incentive district may be exempted from	1842
taxation under division (C) of this section, for up to ten years	1843
or, with the approval under this paragraph of the board of	1844
education of the city, local, or exempted village school district	1845
within which the parcel or district is located, for up to thirty	1846
years. The percentage of the improvement exempted from taxation	1847
may, with such approval, exceed seventy-five per cent, but shall	1848
not exceed one hundred per cent. Not later than forty-five	1849
business days prior to adopting an ordinance under this section	1850
declaring improvements to be a public purpose that is subject to	1851
approval by a board of education under this division, the	1852
legislative authority shall deliver to the board of education a	1853
notice stating its intent to adopt an ordinance making that	1854
declaration. The notice regarding improvements with respect to a	1855
parcel under division (B) of this section shall identify the	1856
parcels for which improvements are to be exempted from taxation,	1857
provide an estimate of the true value in money of the	1858
improvements, specify the period for which the improvements would	1859
be exempted from taxation and the percentage of the improvement	1860
that would be exempted, and indicate the date on which the	1861
legislative authority intends to adopt the ordinance. The notice	1862
regarding improvements to parcels within an incentive district	1863
under division (C) of this section shall delineate the boundaries	1864
of the district, specifically identify each parcel within the	1865
district, identify each anticipated improvement in the district,	1866
provide an estimate of the true value in money of each such	1867
improvement, specify the life of the district and the percentage	1868
of improvements that would be exempted, and indicate the date on	1869
which the legislative authority intends to adopt the ordinance.	1870
The board of education, by resolution adopted by a majority of the	1871
board, may approve the exemption for the period or for the	1872
exemption percentage specified in the notice; may disapprove the	1873
exemption for the number of years in excess of ten, may disapprove	1874
the exemption for the percentage of the improvement to be exempted	1875
in excess of seventy-five per cent, or both; or may approve the	1876
exemption on the condition that the legislative authority and the	1877
board negotiate an agreement providing for compensation to the	1878
school district equal in value to a percentage of the amount of	1879
taxes exempted in the eleventh and subsequent years of the	1880
exemption period or, in the case of exemption percentages in	1881
excess of seventy-five per cent, compensation equal in value to a	1882
percentage of the taxes that would be payable on the portion of	1883
the improvement in excess of seventy-five per cent were that	1884
portion to be subject to taxation, or other mutually agreeable	1885
compensation. If an agreement is negotiated between the	1886
legislative authority and the board to compensate the school	1887
district for all or part of the taxes exempted, including	1888
agreements for payments in lieu of taxes under section 5709.42 of	1889
the Revised Code, the legislative authority shall compensate the	1890
joint vocational school district within which the parcel or	1891
district is located at the same rate and under the same terms	1892
received by the city, local, or exempted village school district.	1893

(3) The board of education shall certify its resolution to	1894
the legislative authority not later than fourteen days prior to	1895
the date the legislative authority intends to adopt the ordinance	1896
as indicated in the notice. If the board of education and the	1897
legislative authority negotiate a mutually acceptable compensation	1898
agreement, the ordinance may declare the improvements a public	1899
purpose for the number of years specified in the ordinance or, in	1900
the case of exemption percentages in excess of seventy-five per	1901
cent, for the exemption percentage specified in the ordinance. In	1902
either case, if the board and the legislative authority fail to	1903
negotiate a mutually acceptable compensation agreement, the	1904
ordinance may declare the improvements a public purpose for not	1905
more than ten years, and shall not exempt more than seventy-five	1906
per cent of the improvements from taxation. If the board fails to	1907
certify a resolution to the legislative authority within the time	1908
prescribed by this division, the legislative authority thereupon	1909
may adopt the ordinance and may declare the improvements a public	1910
purpose for up to thirty years, or, in the case of exemption	1911
percentages proposed in excess of seventy-five per cent, for the	1912
exemption percentage specified in the ordinance. The legislative	1913
authority may adopt the ordinance at any time after the board of	1914
education certifies its resolution approving the exemption to the	1915
legislative authority, or, if the board approves the exemption on	1916
the condition that a mutually acceptable compensation agreement be	1917
negotiated, at any time after the compensation agreement is agreed	1918
to by the board and the legislative authority.	1919

(4) If a board of education has adopted a resolution waiving	1920
its right to approve exemptions from taxation under this section	1921
and the resolution remains in effect, approval of exemptions by	1922
the board is not required under division (D) of this section. If a	1923
board of education has adopted a resolution allowing a legislative	1924
authority to deliver the notice required under division (D) of	1925
this section fewer than forty-five business days prior to the	1926
legislative authority's adoption of the ordinance, the legislative	1927
authority shall deliver the notice to the board not later than the	1928
number of days prior to such adoption as prescribed by the board	1929
in its resolution. If a board of education adopts a resolution	1930
waiving its right to approve agreements or shortening the	1931
notification period, the board shall certify a copy of the	1932
resolution to the legislative authority. If the board of education	1933
rescinds such a resolution, it shall certify notice of the	1934
rescission to the legislative authority.	1935

(5) If the legislative authority is not required by division	1936
(D) of this section to notify the board of education of the	1937
legislative authority's intent to declare improvements to be a	1938
public purpose, the legislative authority shall comply with the	1939
notice requirements imposed under section 5709.83 of the Revised	1940
Code, unless the board has adopted a resolution under that section	1941
waiving its right to receive such a notice.	1942

(E)(1) If a proposed ordinance under division (C)(1) of this	1943
section exempts improvements with respect to a parcel within an	1944
incentive district for more than ten years, or the percentage of	1945
the improvement exempted from taxation exceeds seventy-five per	1946
cent, not later than forty-five business days prior to adopting	1947
the ordinance the legislative authority of the municipal	1948
corporation shall deliver to the board of county commissioners of	1949
the county within which the incentive district will be located a	1950
notice that states its intent to adopt an ordinance creating an	1951
incentive district. The notice shall include a copy of the	1952
proposed ordinance, identify the parcels for which improvements	1953
are to be exempted from taxation, provide an estimate of the true	1954
value in money of the improvements, specify the period of time for	1955
which the improvements would be exempted from taxation, specify	1956
the percentage of the improvements that would be exempted from	1957
taxation, and indicate the date on which the legislative authority	1958
intends to adopt the ordinance.	1959

(2) The board of county commissioners, by resolution adopted	1960
by a majority of the board, may object to the exemption for the	1961
number of years in excess of ten, may object to the exemption for	1962
the percentage of the improvement to be exempted in excess of	1963
seventy-five per cent, or both. If the board of county	1964
commissioners objects, the board may negotiate a mutually	1965
acceptable compensation agreement with the legislative authority.	1966
In no case shall the compensation provided to the board exceed the	1967
property taxes forgone due to the exemption. If the board of	1968
county commissioners objects, and the board and legislative	1969
authority fail to negotiate a mutually acceptable compensation	1970
agreement, the ordinance adopted under division (C)(1) of this	1971
section shall provide to the board compensation in the eleventh	1972
and subsequent years of the exemption period equal in value to not	1973
more than fifty per cent of the taxes that would be payable to the	1974
county or, if the board's objection includes an objection to an	1975
exemption percentage in excess of seventy-five per cent,	1976
compensation equal in value to not more than fifty per cent of the	1977
taxes that would be payable to the county, on the portion of the	1978
improvement in excess of seventy-five per cent, were that portion	1979
to be subject to taxation. The board of county commissioners shall	1980
certify its resolution to the legislative authority not later than	1981
thirty days after receipt of the notice.	1982

(3) If the board of county commissioners does not object or	1983
fails to certify its resolution objecting to an exemption within	1984
thirty days after receipt of the notice, the legislative authority	1985
may adopt the ordinance, and no compensation shall be provided to	1986
the board of county commissioners. If the board timely certifies	1987
its resolution objecting to the ordinance, the legislative	1988
authority may adopt the ordinance at any time after a mutually	1989
acceptable compensation agreement is agreed to by the board and	1990
the legislative authority, or, if no compensation agreement is	1991
negotiated, at any time after the legislative authority agrees in	1992
the proposed ordinance to provide compensation to the board of	1993
fifty per cent of the taxes that would be payable to the county in	1994
the eleventh and subsequent years of the exemption period or on	1995
the portion of the improvement in excess of seventy-five per cent,	1996
were that portion to be subject to taxation.	1997

(F) Service payments in lieu of taxes that are attributable	1998
to any amount by which the effective tax rate of either a renewal	1999
levy with an increase or a replacement levy exceeds the effective	2000
tax rate of the levy renewed or replaced, or that are attributable	2001
to an additional levy, for a levy authorized by the voters for any	2002
of the following purposes on or after January 1, 2006, and which	2003
are provided pursuant to an ordinance creating an incentive	2004
district under division (C)(1) of this section that is adopted on	2005
or after January 1, 2006, shall be distributed to the appropriate	2006
taxing authority as required under division (C) of section 5709.42	2007
of the Revised Code in an amount equal to the amount of taxes from	2008
that additional levy or from the increase in the effective tax	2009
rate of such renewal or replacement levy that would have been	2010
payable to that taxing authority from the following levies were it	2011
not for the exemption authorized under division (C) of this	2012
section:	2013

(1) A tax levied under division (L) of section 5705.19 or	2014
section 5705.191 of the Revised Code for community mental	2015
retardation and developmental disabilities programs and services	2016
pursuant to Chapter 5126. of the Revised Code;	2017

(2) A tax levied under division (Y) of section 5705.19 of the	2018
Revised Code for providing or maintaining senior citizens services	2019
or facilities;	2020

(3) A tax levied under section 5705.22 of the Revised Code	2021
for county hospitals;	2022

(4) A tax levied by a joint-county district or by a county	2023
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	2024
for alcohol, drug addiction, and mental health services or	2025
facilities;	2026

(5) A tax levied under section 5705.23 of the Revised Code	2027
for library purposes;	2028

(6) A tax levied under section 5705.24 of the Revised Code	2029
for the support of children services and the placement and care of	2030
children;	2031

(7) A tax levied under division (Z) of section 5705.19 of the	2032
Revised Code for the provision and maintenance of zoological park	2033
services and facilities under section 307.76 of the Revised Code;	2034

(8) A tax levied under section 511.27 or division (H) of	2035
section 5705.19 of the Revised Code for the support of township	2036
park districts;	2037

(9) A tax levied under division (A), (F), or (H) of section	2038
5705.19 of the Revised Code for parks and recreational purposes of	2039
a joint recreation district organized pursuant to division (B) of	2040
section 755.14 of the Revised Code;	2041

(10) A tax levied under section 1545.20 or 1545.21 of the	2042
Revised Code for park district purposes;	2043

(11) A tax levied under section 5705.191 of the Revised Code	2044
for the purpose of making appropriations for public assistance;	2045
human or social services; public relief; public welfare; public	2046
health and hospitalization; and support of general hospitals;	2047

(12) A tax levied under section 3709.29 of the Revised Code	2048
for a general health district program.	2049

(G) An exemption from taxation granted under this section	2050
commences with the tax year specified in the ordinance so long as	2051
the year specified in the ordinance commences after the effective	2052
date of the ordinance. If the ordinance specifies a year	2053
commencing before the effective date of the resolution or	2054
specifies no year whatsoever, the exemption commences with the tax	2055
year in which an exempted improvement first appears on the tax	2056
list and duplicate of real and public utility property and that	2057
commences after the effective date of the ordinance. Except as	2058
otherwise provided in this division, the exemption ends on the	2059
date specified in the ordinance as the date the improvement ceases	2060
to be a public purpose or the incentive district expires, or ends	2061
on the date on which the public infrastructure improvements and	2062
housing renovations are paid in full from the municipal public	2063
improvement tax increment equivalent fund established under	2064
division (A) of section 5709.43 of the Revised Code, whichever	2065
occurs first. The exemption of an improvement with respect to a	2066
parcel or within an incentive district may end on a later date, as	2067
specified in the ordinance, if the legislative authority and the	2068
board of education of the city, local, or exempted village school	2069
district within which the parcel or district is located have	2070
entered into a compensation agreement under section 5709.82 of the	2071
Revised Code with respect to the improvement, and the board of	2072
education has approved the term of the exemption under division	2073
(D)(2) of this section, but in no case shall the improvement be	2074
exempted from taxation for more than thirty years. Exemptions	2075
shall be claimed and allowed in the same manner as in the case of	2076
other real property exemptions. If an exemption status changes	2077
during a year, the procedure for the apportionment of the taxes	2078
for that year is the same as in the case of other changes in tax	2079
exemption status during the year.	2080

(H) Additional municipal financing of public infrastructure	2081
improvements and housing renovations may be provided by any	2082
methods that the municipal corporation may otherwise use for	2083
financing such improvements or renovations. If the municipal	2084
corporation issues bonds or notes to finance the public	2085
infrastructure improvements and housing renovations and pledges	2086
money from the municipal public improvement tax increment	2087
equivalent fund to pay the interest on and principal of the bonds	2088
or notes, the bonds or notes are not subject to Chapter 133. of	2089
the Revised Code.	2090

(I) The municipal corporation, not later than fifteen days	2091
after the adoption of an ordinance under this section, shall	2092
submit to the director of development a copy of the ordinance. On	2093
or before the thirty-first day of March of each year, the	2094
municipal corporation shall submit a status report to the director	2095
of development. The report shall indicate, in the manner	2096
prescribed by the director, the progress of the project during	2097
each year that an exemption remains in effect, including a summary	2098
of the receipts from service payments in lieu of taxes;	2099
expenditures of money from the funds created under section 5709.43	2100
of the Revised Code; a description of the public infrastructure	2101
improvements and housing renovations financed with such	2102
expenditures; and a quantitative summary of changes in employment	2103
and private investment resulting from each project.	2104

(J) Nothing in this section shall be construed to prohibit a	2105
legislative authority from declaring to be a public purpose	2106
improvements with respect to more than one parcel.	2107

(K) If a parcel is located in a new community district in	2108
which the new community authority imposes a community development	2109
charge on the basis of rentals received from leases of real	2110
property as described in division (L)(2) of section 349.01 of the	2111
Revised Code, the parcel may not be exempted from taxation under	2112
this section.	2113

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

2114

(1) "Business day" means a day of the week excluding	2115
Saturday, Sunday, and a legal holiday as defined under section	2116
1.14 of the Revised Code.	2117

(2) "Improvement" means the increase in assessed value of any	2118
parcel of property subsequent to the acquisition of the parcel by	2119
a municipal corporation engaged in urban redevelopment.	2120

(B) The legislative authority of a municipal corporation, by	2121
ordinance, may declare to be a public purpose any improvement to a	2122
parcel of real property if both of the following apply:	2123

(1) The municipal corporation held fee title to the parcel	2124
prior to the adoption of the ordinance;	2125

(2) The parcel is leased, or the fee of the parcel is	2126
conveyed, to any person either before or after adoption of the	2127
ordinance.	2128

Improvements used or to be used for residential purposes may	2129
be declared a public purpose under this section only if the parcel	2130
is located in a blighted area of an impacted city as those terms	2131
are defined in section 1728.01 of the Revised Code.	2132

(C) Except as otherwise provided in division (C)(1), (2), or	2133
(3) of this section, not more than seventy-five per cent of an	2134
improvement thus declared to be a public purpose may be exempted	2135
from real property taxation. The ordinance shall specify the	2136
percentage of the improvement to be exempted from taxation. If a	2137
parcel is located in a new community district in which the new	2138
community authority imposes a community development charge on the	2139
basis of rentals received from leases of real property as	2140
described in division (L)(2) of section 349.01 of the Revised	2141
Code, the parcel may not be exempted from taxation under this	2142
section.	2143

(1) If the ordinance declaring improvements to a parcel to be	2144
a public purpose specifies that payments in lieu of taxes provided	2145
for in section 5709.42 of the Revised Code shall be paid to the	2146
city, local, or exempted village school district in which the	2147
parcel is located in the amount of the taxes that would have been	2148
payable to the school district if the improvements had not been	2149
exempted from taxation, the percentage of the improvement that may	2150
be exempted from taxation may exceed seventy-five per cent, and	2151
the exemption may be granted for up to thirty years, without the	2152
approval of the board of education as otherwise required under	2153
division (C)(2) of this section.	2154

(2) Improvements may be exempted from taxation for up to ten	2155
years or, with the approval of the board of education of the city,	2156
local, or exempted village school district within the territory of	2157
which the improvements are or will be located, for up to thirty	2158
years. The percentage of the improvement exempted from taxation	2159
may, with such approval, exceed seventy-five per cent, but shall	2160
not exceed one hundred per cent. Not later than forty-five	2161
business days prior to adopting an ordinance under this section,	2162
the legislative authority shall deliver to the board of education	2163
a notice stating its intent to declare improvements to be a public	2164
purpose under this section. The notice shall describe the parcel	2165
and the improvements, provide an estimate of the true value in	2166
money of the improvements, specify the period for which the	2167
improvements would be exempted from taxation and the percentage of	2168
the improvements that would be exempted, and indicate the date on	2169
which the legislative authority intends to adopt the ordinance.	2170
The board of education, by resolution adopted by a majority of the	2171
board, may approve the exemption for the period or for the	2172
exemption percentage specified in the notice, may disapprove the	2173
exemption for the number of years in excess of ten, may disapprove	2174
the exemption for the percentage of the improvements to be	2175
exempted in excess of seventy-five per cent, or both, or may	2176
approve the exemption on the condition that the legislative	2177
authority and the board negotiate an agreement providing for	2178
compensation to the school district equal in value to a percentage	2179
of the amount of taxes exempted in the eleventh and subsequent	2180
years of the exemption period, or, in the case of exemption	2181
percentages in excess of seventy-five per cent, compensation equal	2182
in value to a percentage of the taxes that would be payable on the	2183
portion of the improvement in excess of seventy-five per cent were	2184
that portion to be subject to taxation. The board of education	2185
shall certify its resolution to the legislative authority not	2186
later than fourteen days prior to the date the legislative	2187
authority intends to adopt the ordinance as indicated in the	2188
notice. If the board of education approves the exemption on the	2189
condition that a compensation agreement be negotiated, the board	2190
in its resolution shall propose a compensation percentage. If the	2191
board of education and the legislative authority negotiate a	2192
mutually acceptable compensation agreement, the ordinance may	2193
declare the improvements a public purpose for the number of years	2194
specified in the ordinance or, in the case of exemption	2195
percentages in excess of seventy-five per cent, for the exemption	2196
percentage specified in the ordinance. In either case, if the	2197
board and the legislative authority fail to negotiate a mutually	2198
acceptable compensation agreement, the ordinance may declare the	2199
improvements a public purpose for not more than ten years, but	2200
shall not exempt more than seventy-five per cent of the	2201
improvements from taxation. If the board fails to certify a	2202
resolution to the legislative authority within the time prescribed	2203
by this division, the legislative authority thereupon may adopt	2204
the ordinance and may declare the improvements a public purpose	2205
for up to thirty years. The legislative authority may adopt the	2206
ordinance at any time after the board of education certifies its	2207
resolution approving the exemption to the legislative authority,	2208
or, if the board approves the exemption on the condition that a	2209
mutually acceptable compensation agreement be negotiated, at any	2210
time after the compensation agreement is agreed to by the board	2211
and the legislative authority. If a mutually acceptable	2212
compensation agreement is negotiated between the legislative	2213
authority and the board, including agreements for payments in lieu	2214
of taxes under section 5709.42 of the Revised Code, the	2215
legislative authority shall compensate the joint vocational school	2216
district within the territory of which the improvements are or	2217
will be located at the same rate and under the same terms received	2218
by the city, local, or exempted village school district.	2219

(3) If a board of education has adopted a resolution waiving	2220
its right to approve exemptions from taxation and the resolution	2221
remains in effect, approval of exemptions by the board is not	2222
required under this division. If a board of education has adopted	2223
a resolution allowing a legislative authority to deliver the	2224
notice required under this division fewer than forty-five business	2225
days prior to the legislative authority's adoption of the	2226
ordinance, the legislative authority shall deliver the notice to	2227
the board not later than the number of days prior to such adoption	2228
as prescribed by the board in its resolution. If a board of	2229
education adopts a resolution waiving its right to approve	2230
exemptions or shortening the notification period, the board shall	2231
certify a copy of the resolution to the legislative authority. If	2232
the board of education rescinds such a resolution, it shall	2233
certify notice of the rescission to the legislative authority.	2234

(4) If the legislative authority is not required by division	2235
(C)(1), (2), or (3) of this section to notify the board of	2236
education of the legislative authority's intent to declare	2237
improvements to be a public purpose, the legislative authority	2238
shall comply with the notice requirements imposed under section	2239
5709.83 of the Revised Code, unless the board has adopted a	2240
resolution under that section waiving its right to receive such a	2241
notice.	2242

(D) The exemption commences on the effective date of the	2243
ordinance and ends on the date specified in the ordinance as the	2244
date the improvement ceases to be a public purpose. The exemption	2245
shall be claimed and allowed in the same or a similar manner as in	2246
the case of other real property exemptions. If an exemption status	2247
changes during a tax year, the procedure for the apportionment of	2248
the taxes for that year is the same as in the case of other	2249
changes in tax exemption status during the year.	2250

(E) A municipal corporation, not later than fifteen days	2251
after the adoption of an ordinance granting a tax exemption under	2252
this section, shall submit to the director of development a copy	2253
of the ordinance. On or before the thirty-first day of March each	2254
year, the municipal corporation shall submit a status report to	2255
the director of development outlining the progress of the project	2256
during each year that the exemption remains in effect.	2257

Sec. 5709.73.  (A) As used in this section and section	2258
5709.74 of the Revised Code:	2259

(1) "Business day" means a day of the week excluding	2260
Saturday, Sunday, and a legal holiday as defined in section 1.14	2261
of the Revised Code.	2262

(2) "Further improvements" or "improvements" means the	2263
increase in the assessed value of real property that would first	2264
appear on the tax list and duplicate of real and public utility	2265
property after the effective date of a resolution adopted under	2266
this section were it not for the exemption granted by that	2267
resolution. For purposes of division (B) of this section,	2268
"improvements" do not include any property used or to be used for	2269
residential purposes.	2270

(3) "Housing renovation" means a project carried out for	2271
residential purposes.	2272

(4) "Incentive district" has the same meaning as in section	2273
5709.40 of the Revised Code, except that a blighted area is in the	2274
unincorporated area of a township.	2275

(5) "Project" and "public infrastructure improvement" have	2276
the same meanings as in section 5709.40 of the Revised Code.	2277

(B) A board of township trustees may, by unanimous vote,	2278
adopt a resolution that declares to be a public purpose any public	2279
infrastructure improvements made that are necessary for the	2280
development of certain parcels of land located in the	2281
unincorporated area of the township. Except with the approval	2282
under division (D) of this section of the board of education of	2283
each city, local, or exempted village school district within which	2284
the improvements are located, the resolution may exempt from real	2285
property taxation not more than seventy-five per cent of further	2286
improvements to a parcel of land that directly benefits from the	2287
public infrastructure improvements, for a period of not more than	2288
ten years. The resolution shall specify the percentage of the	2289
further improvements to be exempted and the life of the exemption.	2290

(C)(1) A board of township trustees may adopt, by unanimous	2291
vote, a resolution creating an incentive district and declaring	2292
improvements to parcels within the district to be a public purpose	2293
and, except as provided in division (F) of this section, exempt	2294
from taxation as provided in this section, but no board of	2295
township trustees of a township that has a population that exceeds	2296
twenty-five thousand, as shown by the most recent federal	2297
decennial census, shall adopt a resolution that creates an	2298
incentive district if the sum of the taxable value of real	2299
property in the proposed district for the preceding tax year and	2300
the taxable value of all real property in the township that would	2301
have been taxable in the preceding year were it not for the fact	2302
that the property was in an existing incentive district and	2303
therefore exempt from taxation exceeds twenty-five per cent of the	2304
taxable value of real property in the township for the preceding	2305
tax year. The district shall be located within the unincorporated	2306
area of the township and shall not include any territory that is	2307
included within a district created under division (B) of section	2308
5709.78 of the Revised Code. The resolution shall delineate the	2309
boundary of the district and specifically identify each parcel	2310
within the district. A district may not include any parcel that is	2311
or has been exempted from taxation under division (B) of this	2312
section or that is or has been within another district created	2313
under this division. A resolution may create more than one	2314
district, and more than one resolution may be adopted under	2315
division (C)(1) of this section.	2316

(2) Not later than thirty days prior to adopting a resolution	2317
under division (C)(1) of this section, if the township intends to	2318
apply for exemptions from taxation under section 5709.911 of the	2319
Revised Code on behalf of owners of real property located within	2320
the proposed incentive district, the board shall conduct a public	2321
hearing on the proposed resolution. Not later than thirty days	2322
prior to the public hearing, the board shall give notice of the	2323
public hearing and the proposed resolution by first class mail to	2324
every real property owner whose property is located within the	2325
boundaries of the proposed incentive district that is the subject	2326
of the proposed resolution.	2327

(3)(a) A resolution adopted under division (C)(1) of this	2328
section shall specify the life of the incentive district and the	2329
percentage of the improvements to be exempted, shall designate the	2330
public infrastructure improvements made, to be made, or in the	2331
process of being made, that benefit or serve, or, once made, will	2332
benefit or serve parcels in the district. The resolution also	2333
shall identify one or more specific projects being, or to be,	2334
undertaken in the district that place additional demand on the	2335
public infrastructure improvements designated in the resolution.	2336
The project identified may, but need not be, the project under	2337
division (C)(3)(b) of this section that places real property in	2338
use for commercial or industrial purposes.	2339

A resolution adopted under division (C)(1) of this section on	2340
or after March 30, 2006, shall not designate police or fire	2341
equipment as public infrastructure improvements, and no service	2342
payment provided for in section 5709.74 of the Revised Code and	2343
received by the township under the resolution shall be used for	2344
police or fire equipment.	2345

(b) A resolution adopted under division (C)(1) of this	2346
section may authorize the use of service payments provided for in	2347
section 5709.74 of the Revised Code for the purpose of housing	2348
renovations within the incentive district, provided that the	2349
resolution also designates public infrastructure improvements that	2350
benefit or serve the district, and that a project within the	2351
district places real property in use for commercial or industrial	2352
purposes. Service payments may be used to finance or support	2353
loans, deferred loans, and grants to persons for the purpose of	2354
housing renovations within the district. The resolution shall	2355
designate the parcels within the district that are eligible for	2356
housing renovations. The resolution shall state separately the	2357
amount or the percentages of the expected aggregate service	2358
payments that are designated for each public infrastructure	2359
improvement and for the purpose of housing renovations.	2360

(4) Except with the approval of the board of education of	2361
each city, local, or exempted village school district within the	2362
territory of which the incentive district is or will be located,	2363
and subject to division (E) of this section, the life of an	2364
incentive district shall not exceed ten years, and the percentage	2365
of improvements to be exempted shall not exceed seventy-five per	2366
cent. With approval of the board of education, the life of a	2367
district may be not more than thirty years, and the percentage of	2368
improvements to be exempted may be not more than one hundred per	2369
cent. The approval of a board of education shall be obtained in	2370
the manner provided in division (D) of this section.	2371

(D) Improvements with respect to a parcel may be exempted	2372
from taxation under division (B) of this section, and improvements	2373
to parcels within an incentive district may be exempted from	2374
taxation under division (C) of this section, for up to ten years	2375
or, with the approval of the board of education of the city,	2376
local, or exempted village school district within which the parcel	2377
or district is located, for up to thirty years. The percentage of	2378
the improvements exempted from taxation may, with such approval,	2379
exceed seventy-five per cent, but shall not exceed one hundred per	2380
cent. Not later than forty-five business days prior to adopting a	2381
resolution under this section declaring improvements to be a	2382
public purpose that is subject to approval by a board of education	2383
under this division, the board of township trustees shall deliver	2384
to the board of education a notice stating its intent to adopt a	2385
resolution making that declaration. The notice regarding	2386
improvements with respect to a parcel under division (B) of this	2387
section shall identify the parcels for which improvements are to	2388
be exempted from taxation, provide an estimate of the true value	2389
in money of the improvements, specify the period for which the	2390
improvements would be exempted from taxation and the percentage of	2391
the improvements that would be exempted, and indicate the date on	2392
which the board of township trustees intends to adopt the	2393
resolution. The notice regarding improvements made under division	2394
(C) of this section to parcels within an incentive district shall	2395
delineate the boundaries of the district, specifically identify	2396
each parcel within the district, identify each anticipated	2397
improvement in the district, provide an estimate of the true value	2398
in money of each such improvement, specify the life of the	2399
district and the percentage of improvements that would be	2400
exempted, and indicate the date on which the board of township	2401
trustees intends to adopt the resolution. The board of education,	2402
by resolution adopted by a majority of the board, may approve the	2403
exemption for the period or for the exemption percentage specified	2404
in the notice; may disapprove the exemption for the number of	2405
years in excess of ten, may disapprove the exemption for the	2406
percentage of the improvements to be exempted in excess of	2407
seventy-five per cent, or both; or may approve the exemption on	2408
the condition that the board of township trustees and the board of	2409
education negotiate an agreement providing for compensation to the	2410
school district equal in value to a percentage of the amount of	2411
taxes exempted in the eleventh and subsequent years of the	2412
exemption period or, in the case of exemption percentages in	2413
excess of seventy-five per cent, compensation equal in value to a	2414
percentage of the taxes that would be payable on the portion of	2415
the improvements in excess of seventy-five per cent were that	2416
portion to be subject to taxation, or other mutually agreeable	2417
compensation.	2418

The board of education shall certify its resolution to the	2419
board of township trustees not later than fourteen days prior to	2420
the date the board of township trustees intends to adopt the	2421
resolution as indicated in the notice. If the board of education	2422
and the board of township trustees negotiate a mutually acceptable	2423
compensation agreement, the resolution may declare the	2424
improvements a public purpose for the number of years specified in	2425
the resolution or, in the case of exemption percentages in excess	2426
of seventy-five per cent, for the exemption percentage specified	2427
in the resolution. In either case, if the board of education and	2428
the board of township trustees fail to negotiate a mutually	2429
acceptable compensation agreement, the resolution may declare the	2430
improvements a public purpose for not more than ten years, and	2431
shall not exempt more than seventy-five per cent of the	2432
improvements from taxation. If the board of education fails to	2433
certify a resolution to the board of township trustees within the	2434
time prescribed by this section, the board of township trustees	2435
thereupon may adopt the resolution and may declare the	2436
improvements a public purpose for up to thirty years or, in the	2437
case of exemption percentages proposed in excess of seventy-five	2438
per cent, for the exemption percentage specified in the	2439
resolution. The board of township trustees may adopt the	2440
resolution at any time after the board of education certifies its	2441
resolution approving the exemption to the board of township	2442
trustees, or, if the board of education approves the exemption on	2443
the condition that a mutually acceptable compensation agreement be	2444
negotiated, at any time after the compensation agreement is agreed	2445
to by the board of education and the board of township trustees.	2446
If a mutually acceptable compensation agreement is negotiated	2447
between the board of township trustees and the board of education,	2448
including agreements for payments in lieu of taxes under section	2449
5709.74 of the Revised Code, the board of township trustees shall	2450
compensate the joint vocational school district within which the	2451
parcel or district is located at the same rate and under the same	2452
terms received by the city, local, or exempted village school	2453
district.	2454

If a board of education has adopted a resolution waiving its	2455
right to approve exemptions from taxation under this section and	2456
the resolution remains in effect, approval of such exemptions by	2457
the board of education is not required under division (D) of this	2458
section. If a board of education has adopted a resolution allowing	2459
a board of township trustees to deliver the notice required under	2460
division (D) of this section fewer than forty-five business days	2461
prior to adoption of the resolution by the board of township	2462
trustees, the board of township trustees shall deliver the notice	2463
to the board of education not later than the number of days prior	2464
to the adoption as prescribed by the board of education in its	2465
resolution. If a board of education adopts a resolution waiving	2466
its right to approve exemptions or shortening the notification	2467
period, the board of education shall certify a copy of the	2468
resolution to the board of township trustees. If the board of	2469
education rescinds the resolution, it shall certify notice of the	2470
rescission to the board of township trustees.	2471

If the board of township trustees is not required by division	2472
(D) of this section to notify the board of education of the board	2473
of township trustees' intent to declare improvements to be a	2474
public purpose, the board of township trustees shall comply with	2475
the notice requirements imposed under section 5709.83 of the	2476
Revised Code before taking formal action to adopt the resolution	2477
making that declaration, unless the board of education has adopted	2478
a resolution under that section waiving its right to receive the	2479
notice.	2480

(E)(1) If a proposed resolution under division (C)(1) of this	2481
section exempts improvements with respect to a parcel within an	2482
incentive district for more than ten years, or the percentage of	2483
the improvement exempted from taxation exceeds seventy-five per	2484
cent, not later than forty-five business days prior to adopting	2485
the resolution the board of township trustees shall deliver to the	2486
board of county commissioners of the county within which the	2487
incentive district is or will be located a notice that states its	2488
intent to adopt a resolution creating an incentive district. The	2489
notice shall include a copy of the proposed resolution, identify	2490
the parcels for which improvements are to be exempted from	2491
taxation, provide an estimate of the true value in money of the	2492
improvements, specify the period of time for which the	2493
improvements would be exempted from taxation, specify the	2494
percentage of the improvements that would be exempted from	2495
taxation, and indicate the date on which the board of township	2496
trustees intends to adopt the resolution.	2497

(2) The board of county commissioners, by resolution adopted	2498
by a majority of the board, may object to the exemption for the	2499
number of years in excess of ten, may object to the exemption for	2500
the percentage of the improvement to be exempted in excess of	2501
seventy-five per cent, or both. If the board of county	2502
commissioners objects, the board may negotiate a mutually	2503
acceptable compensation agreement with the board of township	2504
trustees. In no case shall the compensation provided to the board	2505
of county commissioners exceed the property taxes foregone due to	2506
the exemption. If the board of county commissioners objects, and	2507
the board of county commissioners and board of township trustees	2508
fail to negotiate a mutually acceptable compensation agreement,	2509
the resolution adopted under division (C)(1) of this section shall	2510
provide to the board of county commissioners compensation in the	2511
eleventh and subsequent years of the exemption period equal in	2512
value to not more than fifty per cent of the taxes that would be	2513
payable to the county or, if the board of county commissioner's	2514
objection includes an objection to an exemption percentage in	2515
excess of seventy-five per cent, compensation equal in value to	2516
not more than fifty per cent of the taxes that would be payable to	2517
the county, on the portion of the improvement in excess of	2518
seventy-five per cent, were that portion to be subject to	2519
taxation. The board of county commissioners shall certify its	2520
resolution to the board of township trustees not later than thirty	2521
days after receipt of the notice.	2522

(3) If the board of county commissioners does not object or	2523
fails to certify its resolution objecting to an exemption within	2524
thirty days after receipt of the notice, the board of township	2525
trustees may adopt its resolution, and no compensation shall be	2526
provided to the board of county commissioners. If the board of	2527
county commissioners timely certifies its resolution objecting to	2528
the trustees' resolution, the board of township trustees may adopt	2529
its resolution at any time after a mutually acceptable	2530
compensation agreement is agreed to by the board of county	2531
commissioners and the board of township trustees, or, if no	2532
compensation agreement is negotiated, at any time after the board	2533
of township trustees agrees in the proposed resolution to provide	2534
compensation to the board of county commissioners of fifty per	2535
cent of the taxes that would be payable to the county in the	2536
eleventh and subsequent years of the exemption period or on the	2537
portion of the improvement in excess of seventy-five per cent,	2538
were that portion to be subject to taxation.	2539

(F) Service payments in lieu of taxes that are attributable	2540
to any amount by which the effective tax rate of either a renewal	2541
levy with an increase or a replacement levy exceeds the effective	2542
tax rate of the levy renewed or replaced, or that are attributable	2543
to an additional levy, for a levy authorized by the voters for any	2544
of the following purposes on or after January 1, 2006, and which	2545
are provided pursuant to a resolution creating an incentive	2546
district under division (C)(1) of this section that is adopted on	2547
or after January 1, 2006, shall be distributed to the appropriate	2548
taxing authority as required under division (C) of section 5709.74	2549
of the Revised Code in an amount equal to the amount of taxes from	2550
that additional levy or from the increase in the effective tax	2551
rate of such renewal or replacement levy that would have been	2552
payable to that taxing authority from the following levies were it	2553
not for the exemption authorized under division (C) of this	2554
section:	2555

(1) A tax levied under division (L) of section 5705.19 or	2556
section 5705.191 of the Revised Code for community mental	2557
retardation and developmental disabilities programs and services	2558
pursuant to Chapter 5126. of the Revised Code;	2559

(2) A tax levied under division (Y) of section 5705.19 of the	2560
Revised Code for providing or maintaining senior citizens services	2561
or facilities;	2562

(3) A tax levied under section 5705.22 of the Revised Code	2563
for county hospitals;	2564

(4) A tax levied by a joint-county district or by a county	2565
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	2566
for alcohol, drug addiction, and mental health services or	2567
families;	2568

(5) A tax levied under section 5705.23 of the Revised Code	2569
for library purposes;	2570

(6) A tax levied under section 5705.24 of the Revised Code	2571
for the support of children services and the placement and care of	2572
children;	2573

(7) A tax levied under division (Z) of section 5705.19 of the	2574
Revised Code for the provision and maintenance of zoological park	2575
services and facilities under section 307.76 of the Revised Code;	2576

(8) A tax levied under section 511.27 or division (H) of	2577
section 5705.19 of the Revised Code for the support of township	2578
park districts;	2579

(9) A tax levied under division (A), (F), or (H) of section	2580
5705.19 of the Revised Code for parks and recreational purposes of	2581
a joint recreation district organized pursuant to division (B) of	2582
section 755.14 of the Revised Code;	2583

(10) A tax levied under section 1545.20 or 1545.21 of the	2584
Revised Code for park district purposes;	2585

(11) A tax levied under section 5705.191 of the Revised Code	2586
for the purpose of making appropriations for public assistance;	2587
human or social services; public relief; public welfare; public	2588
health and hospitalization; and support of general hospitals;	2589

(12) A tax levied under section 3709.29 of the Revised Code	2590
for a general health district program.	2591

(G) An exemption from taxation granted under this section	2592
commences with the tax year specified in the resolution so long as	2593
the year specified in the resolution commences after the effective	2594
date of the resolution. If the resolution specifies a year	2595
commencing before the effective date of the resolution or	2596
specifies no year whatsoever, the exemption commences with the tax	2597
year in which an exempted improvement first appears on the tax	2598
list and duplicate of real and public utility property and that	2599
commences after the effective date of the resolution. Except as	2600
otherwise provided in this division, the exemption ends on the	2601
date specified in the resolution as the date the improvement	2602
ceases to be a public purpose or the incentive district expires,	2603
or ends on the date on which the public infrastructure	2604
improvements and housing renovations are paid in full from the	2605
township public improvement tax increment equivalent fund	2606
established under section 5709.75 of the Revised Code, whichever	2607
occurs first. The exemption of an improvement with respect to a	2608
parcel or within an incentive district may end on a later date, as	2609
specified in the resolution, if the board of township trustees and	2610
the board of education of the city, local, or exempted village	2611
school district within which the parcel or district is located	2612
have entered into a compensation agreement under section 5709.82	2613
of the Revised Code with respect to the improvement and the board	2614
of education has approved the term of the exemption under division	2615
(D) of this section, but in no case shall the improvement be	2616
exempted from taxation for more than thirty years. The board of	2617
township trustees may, by majority vote, adopt a resolution	2618
permitting the township to enter into such agreements as the board	2619
finds necessary or appropriate to provide for the construction or	2620
undertaking of public infrastructure improvements and housing	2621
renovations. Any exemption shall be claimed and allowed in the	2622
same or a similar manner as in the case of other real property	2623
exemptions. If an exemption status changes during a tax year, the	2624
procedure for the apportionment of the taxes for that year is the	2625
same as in the case of other changes in tax exemption status	2626
during the year.	2627

(H) The board of township trustees may issue the notes of the	2628
township to finance all costs pertaining to the construction or	2629
undertaking of public infrastructure improvements and housing	2630
renovations made pursuant to this section. The notes shall be	2631
signed by the board and attested by the signature of the township	2632
fiscal officer, shall bear interest not to exceed the rate	2633
provided in section 9.95 of the Revised Code, and are not subject	2634
to Chapter 133. of the Revised Code. The resolution authorizing	2635
the issuance of the notes shall pledge the funds of the township	2636
public improvement tax increment equivalent fund established	2637
pursuant to section 5709.75 of the Revised Code to pay the	2638
interest on and principal of the notes. The notes, which may	2639
contain a clause permitting prepayment at the option of the board,	2640
shall be offered for sale on the open market or given to the	2641
vendor or contractor if no sale is made.	2642

(I) The township, not later than fifteen days after the	2643
adoption of a resolution under this section, shall submit to the	2644
director of development a copy of the resolution. On or before the	2645
thirty-first day of March of each year, the township shall submit	2646
a status report to the director of development. The report shall	2647
indicate, in the manner prescribed by the director, the progress	2648
of the project during each year that the exemption remains in	2649
effect, including a summary of the receipts from service payments	2650
in lieu of taxes; expenditures of money from the fund created	2651
under section 5709.75 of the Revised Code; a description of the	2652
public infrastructure improvements and housing renovations	2653
financed with the expenditures; and a quantitative summary of	2654
changes in private investment resulting from each project.	2655

(J) Nothing in this section shall be construed to prohibit a	2656
board of township trustees from declaring to be a public purpose	2657
improvements with respect to more than one parcel.	2658

If a parcel is located in a new community district in which	2659
the new community authority imposes a community development charge	2660
on the basis of rentals received from leases of real property as	2661
described in division (L)(2) of section 349.01 of the Revised	2662
Code, the parcel may not be exempted from taxation under this	2663
section.	2664

(K) A board of township trustees that adopted a resolution	2665
under this section prior to July 21, 1994, may amend that	2666
resolution to include any additional public infrastructure	2667
improvement. A board of township trustees that seeks by the	2668
amendment to utilize money from its township public improvement	2669
tax increment equivalent fund for land acquisition in aid of	2670
industry, commerce, distribution, or research, demolition on	2671
private property, or stormwater and flood remediation projects may	2672
do so provided that the board currently is a party to a	2673
hold-harmless agreement with the board of education of the city,	2674
local, or exempted village school district within the territory of	2675
which are located the parcels that are subject to an exemption.	2676
For the purposes of this division, a "hold-harmless agreement"	2677
means an agreement under which the board of township trustees	2678
agrees to compensate the school district for one hundred per cent	2679
of the tax revenue that the school district would have received	2680
from further improvements to parcels designated in the resolution	2681
were it not for the exemption granted by the resolution.	2682

Sec. 5709.78.  (A) A board of county commissioners may, by	2683
resolution, declare improvements to certain parcels of real	2684
property located in the unincorporated territory of the county to	2685
be a public purpose. Except with the approval under division (C)	2686
of this section of the board of education of each city, local, or	2687
exempted village school district within which the improvements are	2688
located, not more than seventy-five per cent of an improvement	2689
thus declared to be a public purpose may be exempted from real	2690
property taxation, for a period of not more than ten years. The	2691
resolution shall specify the percentage of the improvement to be	2692
exempted and the life of the exemption.	2693

A resolution adopted under this division shall designate the	2694
specific public infrastructure improvements made, to be made, or	2695
in the process of being made by the county that directly benefit,	2696
or that once made will directly benefit, the parcels for which	2697
improvements are declared to be a public purpose. The service	2698
payments provided for in section 5709.79 of the Revised Code shall	2699
be used to finance the public infrastructure improvements	2700
designated in the resolution, or as provided in section 5709.80 of	2701
the Revised Code.	2702

(B)(1) A board of county commissioners may adopt a resolution	2703
creating an incentive district and declaring improvements to	2704
parcels within the district to be a public purpose and, except as	2705
provided in division (E) of this section, exempt from taxation as	2706
provided in this section, but no board of county commissioners of	2707
a county that has a population that exceeds twenty-five thousand,	2708
as shown by the most recent federal decennial census, shall adopt	2709
a resolution that creates an incentive district if the sum of the	2710
taxable value of real property in the proposed district for the	2711
preceding tax year and the taxable value of all real property in	2712
the county that would have been taxable in the preceding year were	2713
it not for the fact that the property was in an existing incentive	2714
district and therefore exempt from taxation exceeds twenty-five	2715
per cent of the taxable value of real property in the county for	2716
the preceding tax year. The district shall be located within the	2717
unincorporated territory of the county and shall not include any	2718
territory that is included within a district created under	2719
division (C) of section 5709.73 of the Revised Code. The	2720
resolution shall delineate the boundary of the district and	2721
specifically identify each parcel within the district. A district	2722
may not include any parcel that is or has been exempted from	2723
taxation under division (A) of this section or that is or has been	2724
within another district created under this division. A resolution	2725
may create more than one such district, and more than one	2726
resolution may be adopted under division (B)(1) of this section.	2727

(2) Not later than thirty days prior to adopting a resolution	2728
under division (B)(1) of this section, if the county intends to	2729
apply for exemptions from taxation under section 5709.911 of the	2730
Revised Code on behalf of owners of real property located within	2731
the proposed incentive district, the board of county commissioners	2732
shall conduct a public hearing on the proposed resolution. Not	2733
later than thirty days prior to the public hearing, the board	2734
shall give notice of the public hearing and the proposed	2735
resolution by first class mail to every real property owner whose	2736
property is located within the boundaries of the proposed	2737
incentive district that is the subject of the proposed resolution.	2738
The board also shall provide the notice by first class mail to the	2739
clerk of each township in which the proposed incentive district	2740
will be located.	2741

(3)(a) A resolution adopted under division (B)(1) of this	2742
section shall specify the life of the incentive district and the	2743
percentage of the improvements to be exempted, shall designate the	2744
public infrastructure improvements made, to be made, or in the	2745
process of being made, that benefit or serve, or, once made, will	2746
benefit or serve parcels in the district. The resolution also	2747
shall identify one or more specific projects being, or to be,	2748
undertaken in the district that place additional demand on the	2749
public infrastructure improvements designated in the resolution.	2750
The project identified may, but need not be, the project under	2751
division (B)(3)(b) of this section that places real property in	2752
use for commercial or industrial purposes.	2753

A resolution adopted under division (B)(1) of this section on	2754
or after March 30, 2006, shall not designate police or fire	2755
equipment as public infrastructure improvements, and no service	2756
payment provided for in section 5709.79 of the Revised Code and	2757
received by the county under the resolution shall be used for	2758
police or fire equipment.	2759

(b) A resolution adopted under division (B)(1) of this	2760
section may authorize the use of service payments provided for in	2761
section 5709.79 of the Revised Code for the purpose of housing	2762
renovations within the incentive district, provided that the	2763
resolution also designates public infrastructure improvements that	2764
benefit or serve the district, and that a project within the	2765
district places real property in use for commercial or industrial	2766
purposes. Service payments may be used to finance or support	2767
loans, deferred loans, and grants to persons for the purpose of	2768
housing renovations within the district. The resolution shall	2769
designate the parcels within the district that are eligible for	2770
housing renovations. The resolution shall state separately the	2771
amount or the percentages of the expected aggregate service	2772
payments that are designated for each public infrastructure	2773
improvement and for the purpose of housing renovations.	2774

(4) Except with the approval of the board of education of	2775
each city, local, or exempted village school district within the	2776
territory of which the incentive district is or will be located,	2777
and subject to division (D) of this section, the life of an	2778
incentive district shall not exceed ten years, and the percentage	2779
of improvements to be exempted shall not exceed seventy-five per	2780
cent. With approval of the board of education, the life of a	2781
district may be not more than thirty years, and the percentage of	2782
improvements to be exempted may be not more than one hundred per	2783
cent. The approval of a board of education shall be obtained in	2784
the manner provided in division (C) of this section.	2785

(C)(1) Improvements with respect to a parcel may be exempted	2786
from taxation under division (A) of this section, and improvements	2787
to parcels within an incentive district may be exempted from	2788
taxation under division (B) of this section, for up to ten years	2789
or, with the approval of the board of education of each city,	2790
local, or exempted village school district within which the parcel	2791
or district is located, for up to thirty years. The percentage of	2792
the improvements exempted from taxation may, with such approval,	2793
exceed seventy-five per cent, but shall not exceed one hundred per	2794
cent. Not later than forty-five business days prior to adopting a	2795
resolution under this section declaring improvements to be a	2796
public purpose that is subject to the approval of a board of	2797
education under this division, the board of county commissioners	2798
shall deliver to the board of education a notice stating its	2799
intent to adopt a resolution making that declaration. The notice	2800
regarding improvements with respect to a parcel under division (A)	2801
of this section shall identify the parcels for which improvements	2802
are to be exempted from taxation, provide an estimate of the true	2803
value in money of the improvements, specify the period for which	2804
the improvements would be exempted from taxation and the	2805
percentage of the improvements that would be exempted, and	2806
indicate the date on which the board of county commissioners	2807
intends to adopt the resolution. The notice regarding improvements	2808
to parcels within an incentive district under division (B) of this	2809
section shall delineate the boundaries of the district,	2810
specifically identify each parcel within the district, identify	2811
each anticipated improvement in the district, provide an estimate	2812
of the true value in money of each such improvement, specify the	2813
life of the district and the percentage of improvements that would	2814
be exempted, and indicate the date on which the board of county	2815
commissioners intends to adopt the resolution. The board of	2816
education, by resolution adopted by a majority of the board, may	2817
approve the exemption for the period or for the exemption	2818
percentage specified in the notice; may disapprove the exemption	2819
for the number of years in excess of ten, may disapprove the	2820
exemption for the percentage of the improvements to be exempted in	2821
excess of seventy-five per cent, or both; or may approve the	2822
exemption on the condition that the board of county commissioners	2823
and the board of education negotiate an agreement providing for	2824
compensation to the school district equal in value to a percentage	2825
of the amount of taxes exempted in the eleventh and subsequent	2826
years of the exemption period or, in the case of exemption	2827
percentages in excess of seventy-five per cent, compensation equal	2828
in value to a percentage of the taxes that would be payable on the	2829
portion of the improvements in excess of seventy-five per cent	2830
were that portion to be subject to taxation, or other mutually	2831
agreeable compensation.	2832

(2) The board of education shall certify its resolution to	2833
the board of county commissioners not later than fourteen days	2834
prior to the date the board of county commissioners intends to	2835
adopt its resolution as indicated in the notice. If the board of	2836
education and the board of county commissioners negotiate a	2837
mutually acceptable compensation agreement, the resolution of the	2838
board of county commissioners may declare the improvements a	2839
public purpose for the number of years specified in that	2840
resolution or, in the case of exemption percentages in excess of	2841
seventy-five per cent, for the exemption percentage specified in	2842
the resolution. In either case, if the board of education and the	2843
board of county commissioners fail to negotiate a mutually	2844
acceptable compensation agreement, the resolution may declare the	2845
improvements a public purpose for not more than ten years, and	2846
shall not exempt more than seventy-five per cent of the	2847
improvements from taxation. If the board of education fails to	2848
certify a resolution to the board of county commissioners within	2849
the time prescribed by this section, the board of county	2850
commissioners thereupon may adopt the resolution and may declare	2851
the improvements a public purpose for up to thirty years or, in	2852
the case of exemption percentages proposed in excess of	2853
seventy-five per cent, for the exemption percentage specified in	2854
the resolution. The board of county commissioners may adopt the	2855
resolution at any time after the board of education certifies its	2856
resolution approving the exemption to the board of county	2857
commissioners, or, if the board of education approves the	2858
exemption on the condition that a mutually acceptable compensation	2859
agreement be negotiated, at any time after the compensation	2860
agreement is agreed to by the board of education and the board of	2861
county commissioners. If a mutually acceptable compensation	2862
agreement is negotiated between the board of county commissioners	2863
and the board of education, including agreements for payments in	2864
lieu of taxes under section 5709.79 of the Revised Code, the board	2865
of county commissioners shall compensate the joint vocational	2866
school district within which the parcel or district is located at	2867
the same rate and under the same terms received by the city,	2868
local, or exempted village school district.	2869

(3) If a board of education has adopted a resolution waiving	2870
its right to approve exemptions from taxation under this section	2871
and the resolution remains in effect, approval of such exemptions	2872
by the board of education is not required under division (C) of	2873
this section. If a board of education has adopted a resolution	2874
allowing a board of county commissioners to deliver the notice	2875
required under division (C) of this section fewer than forty-five	2876
business days prior to approval of the resolution by the board of	2877
county commissioners, the board of county commissioners shall	2878
deliver the notice to the board of education not later than the	2879
number of days prior to such approval as prescribed by the board	2880
of education in its resolution. If a board of education adopts a	2881
resolution waiving its right to approve exemptions or shortening	2882
the notification period, the board of education shall certify a	2883
copy of the resolution to the board of county commissioners. If	2884
the board of education rescinds such a resolution, it shall	2885
certify notice of the rescission to the board of county	2886
commissioners.	2887

(D)(1) If a proposed resolution under division (B)(1) of this	2888
section exempts improvements with respect to a parcel within an	2889
incentive district for more than ten years, or the percentage of	2890
the improvement exempted from taxation exceeds seventy-five per	2891
cent, not later than forty-five business days prior to adopting	2892
the resolution the board of county commissioners shall deliver to	2893
the board of township trustees of any township within which the	2894
incentive district is or will be located a notice that states its	2895
intent to adopt a resolution creating an incentive district. The	2896
notice shall include a copy of the proposed resolution, identify	2897
the parcels for which improvements are to be exempted from	2898
taxation, provide an estimate of the true value in money of the	2899
improvements, specify the period of time for which the	2900
improvements would be exempted from taxation, specify the	2901
percentage of the improvements that would be exempted from	2902
taxation, and indicate the date on which the board intends to	2903
adopt the resolution.	2904

(2) The board of township trustees, by resolution adopted by	2905
a majority of the board, may object to the exemption for the	2906
number of years in excess of ten, may object to the exemption for	2907
the percentage of the improvement to be exempted in excess of	2908
seventy-five per cent, or both. If the board of township trustees	2909
objects, the board of township trustees may negotiate a mutually	2910
acceptable compensation agreement with the board of county	2911
commissioners. In no case shall the compensation provided to the	2912
board of township trustees exceed the property taxes forgone due	2913
to the exemption. If the board of township trustees objects, and	2914
the board of township trustees and the board of county	2915
commissioners fail to negotiate a mutually acceptable compensation	2916
agreement, the resolution adopted under division (B)(1) of this	2917
section shall provide to the board of township trustees	2918
compensation in the eleventh and subsequent years of the exemption	2919
period equal in value to not more than fifty per cent of the taxes	2920
that would be payable to the township or, if the board of township	2921
trustee's objection includes an objection to an exemption	2922
percentage in excess of seventy-five per cent, compensation equal	2923
in value to not more than fifty per cent of the taxes that would	2924
be payable to the township on the portion of the improvement in	2925
excess of seventy-five per cent, were that portion to be subject	2926
to taxation. The board of township trustees shall certify its	2927
resolution to the board of county commissioners not later than	2928
thirty days after receipt of the notice.	2929

(3) If the board of township trustees does not object or	2930
fails to certify a resolution objecting to an exemption within	2931
thirty days after receipt of the notice, the board of county	2932
commissioners may adopt its resolution, and no compensation shall	2933
be provided to the board of township trustees. If the board of	2934
township trustees certifies its resolution objecting to the	2935
commissioners' resolution, the board of county commissioners may	2936
adopt its resolution at any time after a mutually acceptable	2937
compensation agreement is agreed to by the board of county	2938
commissioners and the board of township trustees. If the board of	2939
township trustees certifies a resolution objecting to the	2940
commissioners' resolution, the board of county commissioners may	2941
adopt its resolution at any time after a mutually acceptable	2942
compensation agreement is agreed to by the board of county	2943
commissioners and the board of township trustees, or, if no	2944
compensation agreement is negotiated, at any time after the board	2945
of county commissioners in the proposed resolution to provide	2946
compensation to the board of township trustees of fifty per cent	2947
of the taxes that would be payable to the township in the eleventh	2948
and subsequent years of the exemption period or on the portion of	2949
the improvement in excess of seventy-five per cent, were that	2950
portion to be subject to taxation.	2951

(E) Service payments in lieu of taxes that are attributable	2952
to any amount by which the effective tax rate of either a renewal	2953
levy with an increase or a replacement levy exceeds the effective	2954
tax rate of the levy renewed or replaced, or that are attributable	2955
to an additional levy, for a levy authorized by the voters for any	2956
of the following purposes on or after January 1, 2006, and which	2957
are provided pursuant to a resolution creating an incentive	2958
district under division (B)(1) of this section that is adopted on	2959
or after January 1, 2006, shall be distributed to the appropriate	2960
taxing authority as required under division (D) of section 5709.79	2961
of the Revised Code in an amount equal to the amount of taxes from	2962
that additional levy or from the increase in the effective tax	2963
rate of such renewal or replacement levy that would have been	2964
payable to that taxing authority from the following levies were it	2965
not for the exemption authorized under division (B) of this	2966
section:	2967

(1) A tax levied under division (L) of section 5705.19 or	2968
section 5705.191 of the Revised Code for community mental	2969
retardation and developmental disabilities programs and services	2970
pursuant to Chapter 5126. of the Revised Code;	2971

(2) A tax levied under division (Y) of section 5705.19 of the	2972
Revised Code for providing or maintaining senior citizens services	2973
or facilities;	2974

(3) A tax levied under section 5705.22 of the Revised Code	2975
for county hospitals;	2976

(4) A tax levied by a joint-county district or by a county	2977
under section 5705.19, 5705.191, or 5705.221 of the Revised Code	2978
for alcohol, drug addiction, and mental health services or	2979
facilities;	2980

(5) A tax levied under section 5705.23 of the Revised Code	2981
for library purposes;	2982

(6) A tax levied under section 5705.24 of the Revised Code	2983
for the support of children services and the placement and care of	2984
children;	2985

(7) A tax levied under division (Z) of section 5705.19 of the	2986
Revised Code for the provision and maintenance of zoological park	2987
services and facilities under section 307.76 of the Revised Code;	2988

(8) A tax levied under section 511.27 or division (H) of	2989
section 5705.19 of the Revised Code for the support of township	2990
park districts;	2991

(9) A tax levied under division (A), (F), or (H) of section	2992
5705.19 of the Revised Code for parks and recreational purposes of	2993
a joint recreation district organized pursuant to division (B) of	2994
section 755.14 of the Revised Code;	2995

(10) A tax levied under section 1545.20 or 1545.21 of the	2996
Revised Code for park district purposes;	2997

(11) A tax levied under section 5705.191 of the Revised Code	2998
for the purpose of making appropriations for public assistance;	2999
human or social services; public relief; public welfare; public	3000
health and hospitalization; and support of general hospitals;	3001

(12) A tax levied under section 3709.29 of the Revised Code	3002
for a general health district program.	3003

(F) An exemption from taxation granted under this section	3004
commences with the tax year specified in the resolution so long as	3005
the year specified in the resolution commences after the effective	3006
date of the resolution. If the resolution specifies a year	3007
commencing before the effective date of the resolution or	3008
specifies no year whatsoever, the exemption commences with the tax	3009
year in which an exempted improvement first appears on the tax	3010
list and duplicate of real and public utility property and that	3011
commences after the effective date of the resolution. Except as	3012
otherwise provided in this division, the exemption ends on the	3013
date specified in the resolution as the date the improvement	3014
ceases to be a public purpose or the incentive district expires,	3015
or ends on the date on which the county can no longer require	3016
annual service payments in lieu of taxes under section 5709.79 of	3017
the Revised Code, whichever occurs first. The exemption of an	3018
improvement with respect to a parcel or within an incentive	3019
district may end on a later date, as specified in the resolution,	3020
if the board of commissioners and the board of education of the	3021
city, local, or exempted village school district within which the	3022
parcel or district is located have entered into a compensation	3023
agreement under section 5709.82 of the Revised Code with respect	3024
to the improvement, and the board of education has approved the	3025
term of the exemption under division (C)(1) of this section, but	3026
in no case shall the improvement be exempted from taxation for	3027
more than thirty years. Exemptions shall be claimed and allowed in	3028
the same or a similar manner as in the case of other real property	3029
exemptions. If an exemption status changes during a tax year, the	3030
procedure for the apportionment of the taxes for that year is the	3031
same as in the case of other changes in tax exemption status	3032
during the year.	3033

(G) If the board of county commissioners is not required by	3034
this section to notify the board of education of the board of	3035
county commissioners' intent to declare improvements to be a	3036
public purpose, the board of county commissioners shall comply	3037
with the notice requirements imposed under section 5709.83 of the	3038
Revised Code before taking formal action to adopt the resolution	3039
making that declaration, unless the board of education has adopted	3040
a resolution under that section waiving its right to receive such	3041
a notice.	3042

(H) The county, not later than fifteen days after the	3043
adoption of a resolution under this section, shall submit to the	3044
director of development a copy of the resolution. On or before the	3045
thirty-first day of March of each year, the county shall submit a	3046
status report to the director of development. The report shall	3047
indicate, in the manner prescribed by the director, the progress	3048
of the project during each year that an exemption remains in	3049
effect, including a summary of the receipts from service payments	3050
in lieu of taxes; expenditures of money from the fund created	3051
under section 5709.80 of the Revised Code; a description of the	3052
public infrastructure improvements and housing renovations	3053
financed with such expenditures; and a quantitative summary of	3054
changes in employment and private investment resulting from each	3055
project.	3056

(I) Nothing in this section shall be construed to prohibit a	3057
board of county commissioners from declaring to be a public	3058
purpose improvements with respect to more than one parcel.	3059

(J) If a parcel is located in a new community district in	3060
which the new community authority imposes a community development	3061
charge on the basis of rentals received from leases of real	3062
property as described in division (L)(2) of section 349.01 of the	3063
Revised Code, the parcel may not be exempted from taxation under	3064
this section.	3065

Sec. 5727.84.  (A) As used in this section and sections	3066
5727.85, 5727.86, and 5727.87 of the Revised Code:	3067

(1) "School district" means a city, local, or exempted	3068
village school district.	3069

(2) "Joint vocational school district" means a joint	3070
vocational school district created under section 3311.16 of the	3071
Revised Code, and includes a cooperative education school district	3072
created under section 3311.52 or 3311.521 of the Revised Code and	3073
a county school financing district created under section 3311.50	3074
of the Revised Code.	3075

(3) "Local taxing unit" means a subdivision or taxing unit,	3076
as defined in section 5705.01 of the Revised Code, a park district	3077
created under Chapter 1545. of the Revised Code, or a township	3078
park district established under section 511.23 of the Revised	3079
Code, but excludes school districts and joint vocational school	3080
districts.	3081

(4) "State education aid," for a school district, means the	3082
following:	3083

(a) For fiscal years prior to fiscal year 2010, the sum of	3084
state aid amounts computed for the district under the following	3085
provisions, as they existed for the applicable fiscal year:	3086
divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section	3087
3317.022; divisions (B), (C), and (D) of section 3317.023;	3088
divisions (G), (L), and (N) of section 3317.024; and sections	3089
3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and	3090
3317.053 of the Revised Code; and the adjustments required by:	3091
division (C) of section 3310.08; division (C)(2) of section	3092
3310.41; division (C) of section 3314.08; division (D)(2) of	3093
section 3314.091; division (D) of section 3314.13; divisions (E),	3094
(K), (L), (M), and (N) of section 3317.023; division (C) of	3095
section 3317.20; and sections 3313.979 and 3313.981 of the Revised	3096
Code. However, when calculating state education aid for a school	3097
district for fiscal years 2008 and 2009, include the amount	3098
computed for the district under Section 269.20.80 of H.B. 119 of	3099
the 127th general assembly, as subsequently amended, instead of	3100
division (D) of section 3317.022 of the Revised Code; and include	3101
amounts calculated under Section 269.30.80 of H.B. 119 of the	3102
127th general assembly, as subsequently amended.	3103

(b) For fiscal years 2010 and 2011, the sum of the amounts	3104
computed for the district under former sections 3306.052, 3306.12,	3105
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code and	3106
the following provisions, as they existed for the applicable	3107
fiscal year: division (G) of section 3317.024; sections 3317.05,	3108
3317.052, and 3317.053 of the Revised Code; and the adjustments	3109
required by division (C) of section 3310.08; division (C)(2) of	3110
section 3310.41; division (C) of section 3314.08; division (D)(2)	3111
of section 3314.091; division (D) of section 3314.13; divisions	3112
(E), (K), (L), (M), and (N) of section 3317.023; division (C) of	3113
section 3317.20; and sections 3313.979, 3313.981, and 3326.33 of	3114
the Revised Code.	3115

(c) For fiscal years 2012 and 2013, the amount paid in	3116
accordance with the section of H.B. 153 of the 129th general	3117
assembly entitled "FUNDING FOR CITY, EXEMPTED VILLAGE, AND LOCAL	3118
SCHOOL DISTRICTS" and the adjustments required by division (C) of	3119
section 3310.08; division (C)(2) of section 3310.41; section	3120
3310.55; division (C) of section 3314.08; division (D)(2) of	3121
section 3314.091; division (D) of section 3314.13; divisions (B),	3122
(H), (I), (J), and (K) of section 3317.023; division (C) of	3123
section 3317.20; and sections 3313.979 and 3313.981 of the Revised	3124
Code.	3125

(5) "State education aid," for a joint vocational school	3126
district, means the following:	3127

(a) For fiscal years prior to fiscal year 2010, the sum of	3128
the state aid amounts computed for the district under division (N)	3129
of section 3317.024 and section 3317.16 of the Revised Code.	3130
However, when calculating state education aid for a joint	3131
vocational school district for fiscal years 2008 and 2009, include	3132
the amount computed for the district under Section 269.30.90 of	3133
H.B. 119 of the 127th general assembly, as subsequently amended.	3134

(b) For fiscal years 2010 and 2011, the amount computed for	3135
the district in accordance with the section of H.B. 1 of the 128th	3136
general assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL	3137
DISTRICTS".	3138

(c) For fiscal years 2012 and 2013, the amount paid in	3139
accordance with the section of H.B. 153 of the 129th general	3140
assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL DISTRICTS."	3141

(6) "State education aid offset" means the amount determined	3142
for each school district or joint vocational school district under	3143
division (A)(1) of section 5727.85 of the Revised Code.	3144

(7) "Recognized valuation" has the same meaning as in section	3145
3317.02 of the Revised Code.	3146

(8) "Electric company tax value loss" means the amount	3147
determined under division (D) of this section.	3148

(9) "Natural gas company tax value loss" means the amount	3149
determined under division (E) of this section.	3150

(10) "Tax value loss" means the sum of the electric company	3151
tax value loss and the natural gas company tax value loss.	3152

(11) "Fixed-rate levy" means any tax levied on property other	3153
than a fixed-sum levy.	3154

(12) "Fixed-rate levy loss" means the amount determined under	3155
division (G) of this section.	3156

(13) "Fixed-sum levy" means a tax levied on property at	3157
whatever rate is required to produce a specified amount of tax	3158
money or levied in excess of the ten-mill limitation to pay debt	3159
charges, and includes school district emergency levies imposed	3160
charged and payable pursuant to section 5705.194 of the Revised	3161
Code.	3162

(14) "Fixed-sum levy loss" means the amount determined under	3163
division (H) of this section.	3164

(15) "Consumer price index" means the consumer price index	3165
(all items, all urban consumers) prepared by the bureau of labor	3166
statistics of the United States department of labor.	3167

(16) "Total resources" hasand "total library resources" have	3168
the same meaningmeanings as in section 5751.20 of the Revised	3169
Code.	3170

(17) "2011 current expense S.B. 3 allocation" means the sum	3171
of payments received by a school district or joint vocational	3172
school district in fiscal year 2011 for current expense levy	3173
losses pursuant to division (C)(2) of section 5727.85 of the	3174
Revised Code. If a fixed-rate levy eligible for reimbursement is	3175
not imposedcharged and payable in any year after tax year 2010,	3176
"2011 current expense S.B. 3 allocation" used to compute payments	3177
to be made under division (C)(3) of section 5727.85 of the Revised	3178
Code in the tax years following the last year the levy is imposed	3179
charged and payable shall be reduced by the amount ofto the	3180
extent that those payments are attributable to the fixed-rate levy	3181
loss of that levy.	3182

(18) "2010 current expense S.B. 3 allocation" means the sum	3183
of payments received by a municipal corporation in calendar year	3184
2010 for current expense levy losses pursuant to division (A)(1)	3185
of section 5727.86 of the Revised Code, excluding any such	3186
payments received for current expense levy losses attributable to	3187
a tax levied under section 5705.23 of the Revised Code. If a	3188
fixed-rate levy eligible for reimbursement is not imposedcharged	3189
and payable in any year after tax year 2010, "2010 current expense	3190
S.B. 3 allocation" used to compute payments to be made under	3191
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code	3192
in the tax years following the last year the levy is imposed	3193
charged and payable shall be reduced by the amount ofto the	3194
extent that those payments are attributable to the fixed-rate levy	3195
loss of that levy.	3196

(19) "2010 S.B. 3 allocation" means the sum of payments	3197
received by a local taxing unit during calendar year 2010 pursuant	3198
to division (A)(1) of section 5727.86 of the Revised Code,	3199
excluding any such payments received for fixed-rate levy losses	3200
attributable to a tax levied under section 5705.23 of the Revised	3201
Code. If a fixed-rate levy eligible for reimbursement is not	3202
imposedcharged and payable in any year after tax year 2010, "2010	3203
S.B. 3 allocation" used to compute payments to be made under	3204
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code	3205
in the tax years following the last year the levy is imposed	3206
charged and payable shall be reduced by the amount ofto the	3207
extent that those payments are attributable to the fixed-rate levy	3208
loss of that levy.	3209

(20) "Total S.B. 3 allocation" means, in the case of a school	3210
district or joint vocational school district, the sum of the	3211
amountspayments received in fiscal year 2011 pursuant to	3212
divisions (C)(2) and (D) of section 5727.85 of the Revised Code.	3213
In the case of a local taxing unit, "total S.B. 3 allocation"	3214
means the sum of payments received by the unit in calendar year	3215
2010 pursuant to divisions (A)(1) and (4) of section 5727.86 of	3216
the Revised Code, excluding any such payments received for	3217
fixed-rate levy losses attributable to a tax levied under section	3218
5705.23 of the Revised Code. If a fixed-rate levy eligible for	3219
reimbursement is not imposedcharged and payable in any year after	3220
tax year 2010, "total S.B. 3 allocation" used to compute payments	3221
to be made under division (C)(3) of section 5727.85 or division	3222
(A)(1)(d) or (e) of section 5727.86 of the Revised Code in the tax	3223
years following the last year the levy is imposedcharged and	3224
payable shall be reduced by the amount ofto the extent that those	3225
payments are attributable to the fixed-rate levy loss of that levy	3226
as would be computed under division (C)(2) of section 5727.85 or	3227
division (A)(1)(b) of section 5727.86 of the Revised Code.	3228

(21) "2011 non-current expense S.B. 3 allocation" means the	3229
difference of a school district's or joint vocational school	3230
district's total S.B. 3 allocation minus the sum of the school	3231
district's 2011 current expense S.B. 3 allocation and the portion	3232
of the school district's total S.B. 3 allocation constituting	3233
reimbursement for debt levies pursuant to division (D) of section	3234
5727.85 of the Revised Code.	3235

(22) "2010 non-current expense S.B. 3 allocation" means the	3236
difference of a municipal corporation's total S.B. 3 allocation	3237
minus the sum of its 2010 current expense S.B. 3 allocation and	3238
the portion of its total S.B. 3 allocation constituting	3239
reimbursement for debt levies pursuant to division (A)(4) of	3240
section 5727.86 of the Revised Code.	3241

(23) "S.B. 3 allocation for library purposes" means, in the	3242
case of a county, municipal corporation, school district, or	3243
township public library that receives the proceeds of a tax levied	3244
under section 5705.23 of the Revised Code, the sum of the payments	3245
received by the public library in calendar year 2010 pursuant to	3246
section 5727.86 of the Revised Code for fixed-rate levy losses	3247
attributable to a tax levied under section 5705.23 of the Revised	3248
Code. If a fixed-rate levy authorized under section 5705.23 of the	3249
Revised Code that is eligible for reimbursement is not charged and	3250
payable in any year after tax year 2010, "S.B. 3 allocation for	3251
library purposes" used to compute payments to be made under	3252
division (A)(1)(f) of section 5727.86 of the Revised Code in the	3253
tax years following the last year the levy is charged and payable	3254
shall be reduced to the extent that those payments are	3255
attributable to the fixed-rate levy loss of that levy as would be	3256
computed under division (A)(1)(b) of section 5727.86 of the	3257
Revised Code.	3258

(24) "Threshold per cent" means, in the case of a school	3259
district or joint vocational school district, two per cent for	3260
fiscal year 2012 and four per cent for fiscal years 2013 and	3261
thereafter. In the case of a local taxing unit or public library	3262
that receives the proceeds of a tax levied under section 5705.23	3263
of the Revised Code, "threshold per cent" means two per cent for	3264
calendar year 2011, four per cent for calendar year 2012, and six	3265
per cent for calendar years 2013 and thereafter.	3266

(B) The kilowatt-hour tax receipts fund is hereby created in	3267
the state treasury and shall consist of money arising from the tax	3268
imposed by section 5727.81 of the Revised Code. All money in the	3269
kilowatt-hour tax receipts fund shall be credited as follows:	3270

Fiscal Year	General Revenue Fund	School District Property Tax Replacement Fund	Local Government Property Tax Replacement Fund		3271
2001-2011	63.0%	25.4%	11.6%		3272
2012 and thereafter	88.0%	9.0%	3.0%		3273

(C) The natural gas tax receipts fund is hereby created in	3274
the state treasury and shall consist of money arising from the tax	3275
imposed by section 5727.811 of the Revised Code. All money in the	3276
fund shall be credited as follows:	3277

(1) For fiscal years before fiscal year 2012:

3278

(a) Sixty-eight and seven-tenths per cent shall be credited	3279
to the school district property tax replacement fund for the	3280
purpose of making the payments described in section 5727.85 of the	3281
Revised Code.	3282

(b) Thirty-one and three-tenths per cent shall be credited to	3283
the local government property tax replacement fund for the purpose	3284
of making the payments described in section 5727.86 of the Revised	3285
Code.	3286

(2) For fiscal years 2012 and thereafter, one hundred per	3287
cent to the general revenue fund.	3288

(D) Not later than January 1, 2002, the tax commissioner	3289
shall determine for each taxing district its electric company tax	3290
value loss, which is the sum of the applicable amounts described	3291
in divisions (D)(1) to (4) of this section:	3292

(1) The difference obtained by subtracting the amount	3293
described in division (D)(1)(b) from the amount described in	3294
division (D)(1)(a) of this section.	3295

(a) The value of electric company and rural electric company	3296
tangible personal property as assessed by the tax commissioner for	3297
tax year 1998 on a preliminary assessment, or an amended	3298
preliminary assessment if issued prior to March 1, 1999, and as	3299
apportioned to the taxing district for tax year 1998;	3300

(b) The value of electric company and rural electric company	3301
tangible personal property as assessed by the tax commissioner for	3302
tax year 1998 had the property been apportioned to the taxing	3303
district for tax year 2001, and assessed at the rates in effect	3304
for tax year 2001.	3305

(2) The difference obtained by subtracting the amount	3306
described in division (D)(2)(b) from the amount described in	3307
division (D)(2)(a) of this section.	3308

(a) The three-year average for tax years 1996, 1997, and 1998	3309
of the assessed value from nuclear fuel materials and assemblies	3310
assessed against a person under Chapter 5711. of the Revised Code	3311
from the leasing of them to an electric company for those	3312
respective tax years, as reflected in the preliminary assessments;	3313

(b) The three-year average assessed value from nuclear fuel	3314
materials and assemblies assessed under division (D)(2)(a) of this	3315
section for tax years 1996, 1997, and 1998, as reflected in the	3316
preliminary assessments, using an assessment rate of twenty-five	3317
per cent.	3318

(3) In the case of a taxing district having a nuclear power	3319
plant within its territory, any amount, resulting in an electric	3320
company tax value loss, obtained by subtracting the amount	3321
described in division (D)(1) of this section from the difference	3322
obtained by subtracting the amount described in division (D)(3)(b)	3323
of this section from the amount described in division (D)(3)(a) of	3324
this section.	3325

(a) The value of electric company tangible personal property	3326
as assessed by the tax commissioner for tax year 2000 on a	3327
preliminary assessment, or an amended preliminary assessment if	3328
issued prior to March 1, 2001, and as apportioned to the taxing	3329
district for tax year 2000;	3330

(b) The value of electric company tangible personal property	3331
as assessed by the tax commissioner for tax year 2001 on a	3332
preliminary assessment, or an amended preliminary assessment if	3333
issued prior to March 1, 2002, and as apportioned to the taxing	3334
district for tax year 2001.	3335

(4) In the case of a taxing district having a nuclear power	3336
plant within its territory, the difference obtained by subtracting	3337
the amount described in division (D)(4)(b) of this section from	3338
the amount described in division (D)(4)(a) of this section,	3339
provided that such difference is greater than ten per cent of the	3340
amount described in division (D)(4)(a) of this section.	3341

(a) The value of electric company tangible personal property	3342
as assessed by the tax commissioner for tax year 2005 on a	3343
preliminary assessment, or an amended preliminary assessment if	3344
issued prior to March 1, 2006, and as apportioned to the taxing	3345
district for tax year 2005;	3346

(b) The value of electric company tangible personal property	3347
as assessed by the tax commissioner for tax year 2006 on a	3348
preliminary assessment, or an amended preliminary assessment if	3349
issued prior to March 1, 2007, and as apportioned to the taxing	3350
district for tax year 2006.	3351

(E) Not later than January 1, 2002, the tax commissioner	3352
shall determine for each taxing district its natural gas company	3353
tax value loss, which is the sum of the amounts described in	3354
divisions (E)(1) and (2) of this section:	3355

(1) The difference obtained by subtracting the amount	3356
described in division (E)(1)(b) from the amount described in	3357
division (E)(1)(a) of this section.	3358

(a) The value of all natural gas company tangible personal	3359
property, other than property described in division (E)(2) of this	3360
section, as assessed by the tax commissioner for tax year 1999 on	3361
a preliminary assessment, or an amended preliminary assessment if	3362
issued prior to March 1, 2000, and apportioned to the taxing	3363
district for tax year 1999;	3364

(b) The value of all natural gas company tangible personal	3365
property, other than property described in division (E)(2) of this	3366
section, as assessed by the tax commissioner for tax year 1999 had	3367
the property been apportioned to the taxing district for tax year	3368
2001, and assessed at the rates in effect for tax year 2001.	3369

(2) The difference in the value of current gas obtained by	3370
subtracting the amount described in division (E)(2)(b) from the	3371
amount described in division (E)(2)(a) of this section.	3372

(a) The three-year average assessed value of current gas as	3373
assessed by the tax commissioner for tax years 1997, 1998, and	3374
1999 on a preliminary assessment, or an amended preliminary	3375
assessment if issued prior to March 1, 2001, and as apportioned in	3376
the taxing district for those respective years;	3377

(b) The three-year average assessed value from current gas	3378
under division (E)(2)(a) of this section for tax years 1997, 1998,	3379
and 1999, as reflected in the preliminary assessment, using an	3380
assessment rate of twenty-five per cent.	3381

(F) The tax commissioner may request that natural gas	3382
companies, electric companies, and rural electric companies file a	3383
report to help determine the tax value loss under divisions (D)	3384
and (E) of this section. The report shall be filed within thirty	3385
days of the commissioner's request. A company that fails to file	3386
the report or does not timely file the report is subject to the	3387
penalty in section 5727.60 of the Revised Code.	3388

(G) Not later than January 1, 2002, the tax commissioner	3389
shall determine for each school district, joint vocational school	3390
district, and local taxing unit its fixed-rate levy loss, which is	3391
the sum of its electric company tax value loss multiplied by the	3392
tax rate in effect in tax year 1998 for fixed-rate levies and its	3393
natural gas company tax value loss multiplied by the tax rate in	3394
effect in tax year 1999 for fixed-rate levies.	3395

(H) Not later than January 1, 2002, the tax commissioner	3396
shall determine for each school district, joint vocational school	3397
district, and local taxing unit its fixed-sum levy loss, which is	3398
the amount obtained by subtracting the amount described in	3399
division (H)(2) of this section from the amount described in	3400
division (H)(1) of this section:	3401

(1) The sum of the electric company tax value loss multiplied	3402
by the tax rate in effect in tax year 1998, and the natural gas	3403
company tax value loss multiplied by the tax rate in effect in tax	3404
year 1999, for fixed-sum levies for all taxing districts within	3405
each school district, joint vocational school district, and local	3406
taxing unit. For the years 2002 through 2006, this computation	3407
shall include school district emergency levies that existed in	3408
1998 in the case of the electric company tax value loss, and 1999	3409
in the case of the natural gas company tax value loss, and all	3410
other fixed-sum levies that existed in 1998 in the case of the	3411
electric company tax value loss and 1999 in the case of the	3412
natural gas company tax value loss and continue to be charged in	3413
the tax year preceding the distribution year. For the years 2007	3414
through 2016 in the case of school district emergency levies, and	3415
for all years after 2006 in the case of all other fixed-sum	3416
levies, this computation shall exclude all fixed-sum levies that	3417
existed in 1998 in the case of the electric company tax value loss	3418
and 1999 in the case of the natural gas company tax value loss,	3419
but are no longer in effect in the tax year preceding the	3420
distribution year. For the purposes of this section, an emergency	3421
levy that existed in 1998 in the case of the electric company tax	3422
value loss, and 1999 in the case of the natural gas company tax	3423
value loss, continues to exist in a year beginning on or after	3424
January 1, 2007, but before January 1, 2017, if, in that year, the	3425
board of education levies a school district emergency levy for an	3426
annual sum at least equal to the annual sum levied by the board in	3427
tax year 1998 or 1999, respectively, less the amount of the	3428
payment certified under this division for 2002.	3429

(2) The total taxable value in tax year 1999 less the tax	3430
value loss in each school district, joint vocational school	3431
district, and local taxing unit multiplied by one-fourth of one	3432
mill.	3433

If the amount computed under division (H) of this section for	3434
any school district, joint vocational school district, or local	3435
taxing unit is greater than zero, that amount shall equal the	3436
fixed-sum levy loss reimbursed pursuant to division (F) of section	3437
5727.85 of the Revised Code or division (A)(2) of section 5727.86	3438
of the Revised Code, and the one-fourth of one mill that is	3439
subtracted under division (H)(2) of this section shall be	3440
apportioned among all contributing fixed-sum levies in the	3441
proportion of each levy to the sum of all fixed-sum levies within	3442
each school district, joint vocational school district, or local	3443
taxing unit.	3444

(I) Notwithstanding divisions (D), (E), (G), and (H) of this	3445
section, in computing the tax value loss, fixed-rate levy loss,	3446
and fixed-sum levy loss, the tax commissioner shall use the	3447
greater of the 1998 tax rate or the 1999 tax rate in the case of	3448
levy losses associated with the electric company tax value loss,	3449
but the 1999 tax rate shall not include for this purpose any tax	3450
levy approved by the voters after June 30, 1999, and the tax	3451
commissioner shall use the greater of the 1999 or the 2000 tax	3452
rate in the case of levy losses associated with the natural gas	3453
company tax value loss.	3454

(J) Not later than January 1, 2002, the tax commissioner	3455
shall certify to the department of education the tax value loss	3456
determined under divisions (D) and (E) of this section for each	3457
taxing district, the fixed-rate levy loss calculated under	3458
division (G) of this section, and the fixed-sum levy loss	3459
calculated under division (H) of this section. The calculations	3460
under divisions (G) and (H) of this section shall separately	3461
display the levy loss for each levy eligible for reimbursement.	3462

(K) Not later than September 1, 2001, the tax commissioner	3463
shall certify the amount of the fixed-sum levy loss to the county	3464
auditor of each county in which a school district with a fixed-sum	3465
levy loss has territory.	3466

Sec. 5727.86.  (A) Not later than January 1, 2002, theThe	3467
tax commissioner shall compute the payments to be made to each	3468
local taxing unit, and to each public library that receives the	3469
proceeds of a tax levied under section 5705.23 of the Revised	3470
Code, for each year according to divisions (A)(1), (2), (3), and	3471
(4) and division (E) of this section, and shall distribute the	3472
payments in the manner prescribed by division (C) of this section.	3473
The calculation of the fixed-sum levy loss shall cover a time	3474
period sufficient to include all fixed-sum levies for which the	3475
tax commissioner determined, pursuant to division (H) of section	3476
5727.84 of the Revised Code, that a fixed-sum levy loss is to be	3477
reimbursed.	3478

(1) Except as provided in divisions (A)(3) and (4) of this	3479
section, the following amounts shall be paid on or before the	3480
thirty-first day of August and the twenty-eighth day of February:	3481

(a) For years 2002 through 2006, fifty per cent of the	3482
fixed-rate levy loss computed under division (G) of section	3483
5727.84 of the Revised Code;	3484

(b) For years 2007 through 2010, forty per cent of the	3485
fixed-rate levy loss computed under division (G) of section	3486
5727.84 of the Revised Code;	3487

(c) For the payment in 2011 to be made on or before the	3488
twentieth day of February, the amount required to be paid in 2010	3489
on or before the twentieth day of February;	3490

(d) For the payment in 2011 to be made on or before the	3491
thirty-first day of August and for all payments to be made in	3492
years 2012 and thereafter, the sum of the amounts in divisions	3493
(A)(1)(d)(i) or (ii) and (iii) of this section:	3494

(i) If the ratio of fifty per cent of the taxing unit's 2010	3495
S.B. 3 allocation to its total resources is equal to or less than	3496
the threshold per cent, zero;	3497

(ii) If the ratio of fifty per cent of the taxing unit's 2010	3498
S.B. 3 allocation to its total resources is greater than the	3499
threshold per cent, the difference of fifty per cent of the 2010	3500
S.B. 3 allocation minus the product of total resources multiplied	3501
by the threshold per cent;	3502

(iii) In the case of a municipal corporation, fifty per cent	3503
of the product of its 2010 non-current expense S.B. 3 allocation	3504
multiplied by seventy-five per cent for year 2011, fifty per cent	3505
for year 2012, and twenty-five percent for years 2013 and	3506
thereafter.	3507

(e) For 2012 and each year thereafter, the sum of the amounts	3508
in divisions (A)(1)(e)(i) or (ii) and (iii) of this section:	3509

(i) If the ratio of the taxing unit's 2010 S.B. 3 allocation	3510
to its total resources is equal to or less than the threshold per	3511
cent, zero;	3512

(ii) If the ratio of the taxing unit's 2010 S.B. 3 allocation	3513
to its total resources is greater than the threshold per cent,	3514
fifty per cent of the difference of the 2010 S.B. 3 allocation	3515
minus the product of total resources multiplied by the threshold	3516
per cent;	3517

(iii) In the case of a municipal corporation, fifty per cent	3518
of the product of its 2010 non-current expense S.B. 3 allocation	3519
multiplied by fifty per cent for year 2012 and by twenty-five per	3520
cent for years 2013 and thereafter.	3521

(f) For the payment in 2012 to be made to a public library on	3522
or before the thirty-first day of August and for all such payments	3523
to be made in 2013 and thereafter, the amount in division	3524
(A)(1)(f)(i) or (ii) of this section:	3525

(i) If the ratio of S.B. 3 allocation for library purposes to	3526
total library resources is equal to or less than the threshold per	3527
cent, zero;	3528

(ii) If the ratio of S.B. 3 allocation for library purposes	3529
to total library resources is greater than the threshold per cent,	3530
fifty per cent of the difference of the S.B. 3 allocation for	3531
library purposes minus the product of total library resources	3532
multiplied by the threshold per cent.	3533

(2) For fixed-sum levy losses determined under division (H)	3534
of section 5727.84 of the Revised Code, payments shall be made in	3535
the amount of one hundred per cent of the fixed-sum levy loss for	3536
payments required to be made in 2002 and thereafter.	3537

(3) A local taxing unit in a county of less than two hundred	3538
fifty square miles that receives eighty per cent or more of its	3539
combined general fund and bond retirement fund revenues from	3540
property taxes and rollbacks based on 1997 actual revenues as	3541
presented in its 1999 tax budget, and in which electric companies	3542
and rural electric companies comprise over twenty per cent of its	3543
property valuation, shall receive one hundred per cent of its	3544
fixed-rate levy losses from electric company tax value losses	3545
certified under division (A) of this section in years 2002 to	3546
2010. Beginning in 2011, payments for such local taxing units	3547
shall be determined under division (A)(1) of this section.	3548

(4) For taxes levied within the ten-mill limitation or	3549
pursuant to a municipal charter for debt purposes in tax year 1998	3550
in the case of electric company tax value losses, and in tax year	3551
1999 in the case of natural gas company tax value losses, payments	3552
shall be made equal to one hundred per cent of the loss computed	3553
as if the tax were a fixed-rate levy, but those payments shall	3554
extend from 2011 through 2016 if the levy was imposedcharged and	3555
payable for debt purposes in tax year 2010. If the levy is not	3556
imposedcharged and payable for debt purposes in tax year 2010 or	3557
any following tax year before tax year 2016, payments for that	3558
levy shall be made under division (A)(1) of this section beginning	3559
with the first year after the year the levy is imposedcharged and	3560
payable for a purpose other than debt. For the purposes of this	3561
division, taxes levied pursuant to a municipal charter refer to	3562
taxes levied pursuant to a provision of a municipal charter that	3563
permits the tax to be levied without prior voter approval.	3564

(B) Beginning in 2003, by the thirty-first day of January of	3565
each year, the tax commissioner shall review the calculation	3566
originally made under division (A) of this section of the	3567
fixed-sum levy loss determined under division (H) of section	3568
5727.84 of the Revised Code. If the commissioner determines that a	3569
fixed-sum levy that had been scheduled to be reimbursed in the	3570
current year has expired, a revised calculation for that and all	3571
subsequent years shall be made.	3572

(C) Payments to local taxing units and public libraries	3573
required to be made under divisions (A) and (E) of this section	3574
shall be paid from the local government property tax replacement	3575
fund to the county undivided income tax fund in the proper county	3576
treasury. The county treasurer shall distribute amounts paid under	3577
division (A) of this section to the proper local taxing unit or	3578
public library as if they had been levied and collected as taxes,	3579
and the local taxing unit or public library shall apportion the	3580
amounts so received among its funds in the same proportions as if	3581
those amounts had been levied and collected as taxes. Except in	3582
the case of amounts distributed to the county as a local taxing	3583
unit, amounts distributed under division (E)(2) of this section	3584
shall be credited to the general fund of the local taxing unit	3585
that receives them. Amounts distributed to each county as a local	3586
taxing unit under division (E)(2) of this section shall be	3587
credited in the proportion that the current taxes charged and	3588
payable from each levy of or by the county bears to the total	3589
current taxes charged and payable from all levies of or by the	3590
county.	3591

(D) By February 5, 2002, the tax commissioner shall estimate	3592
the amount of money in the local government property tax	3593
replacement fund in excess of the amount necessary to make	3594
payments in that month under division (C) of this section.	3595
Notwithstanding division (A) of this section, the tax commissioner	3596
may pay any local taxing unit, from those excess funds, nine and	3597
four-tenths times the amount computed for 2002 under division	3598
(A)(1) of this section. A payment made under this division shall	3599
be in lieu of the payment to be made in February 2002 under	3600
division (A)(1) of this section. A local taxing unit receiving a	3601
payment under this division will no longer be entitled to any	3602
further payments under division (A)(1) of this section. A payment	3603
made under this division shall be paid from the local government	3604
property tax replacement fund to the county undivided income tax	3605
fund in the proper county treasury. The county treasurer shall	3606
distribute the payment to the proper local taxing unit as if it	3607
had been levied and collected as taxes, and the local taxing unit	3608
shall apportion the amounts so received among its funds in the	3609
same proportions as if those amounts had been levied and collected	3610
as taxes.	3611

(E)(1) On the thirty-first day of July of 2002, 2003, 2004,	3612
2005, and 2006, and on the thirty-first day of January and July of	3613
2007 through January 2011, if the amount credited to the local	3614
government property tax replacement fund exceeds the amount needed	3615
to be distributed from the fund under division (A) of this section	3616
in the following month, the tax commissioner shall distribute the	3617
excess to each county as follows:	3618

(a) One-half shall be distributed to each county in	3619
proportion to each county's population.	3620

(b) One-half shall be distributed to each county in the	3621
proportion that the amounts determined under divisions (G) and (H)	3622
of section 5727.84 of the Revised Code for all local taxing units	3623
in the county is of the total amounts so determined for all local	3624
taxing units in the state.	3625

(2) The amounts distributed to each county under division (E)	3626
of this section shall be distributed by the county auditor to each	3627
local taxing unit in the county in the proportion that the unit's	3628
current taxes charged and payable are of the total current taxes	3629
charged and payable of all the local taxing units in the county.	3630
If the amount that the county auditor determines to be distributed	3631
to a local taxing unit is less than five dollars, that amount	3632
shall not be distributed, and the amount not distributed shall	3633
remain credited to the county undivided income tax fund. At the	3634
time of the next distribution under division (E)(2) of this	3635
section, any amount that had not been distributed in the prior	3636
distribution shall be added to the amount available for the next	3637
distribution prior to calculation of the amount to be distributed.	3638
As used in this division, "current taxes charged and payable"	3639
means the taxes charged and payable as most recently determined	3640
for local taxing units in the county.	3641

After January 2011, any amount that exceeds the amount needed	3642
to be distributed from the fund under division (A) of this section	3643
in the following month shall be transferred to the general revenue	3644
fund.	3645

(F) If the total amount in the local government property tax	3646
replacement fund is insufficient to make all payments under	3647
division (C) of this section at the times the payments are to be	3648
made, the director of budget and management shall transfer from	3649
the general revenue fund to the local government property tax	3650
replacement fund the difference between the total amount to be	3651
paid and the amount in the local government property tax	3652
replacement fund, except that no transfer shall be made by reason	3653
of a deficiency to the extent that it results from the amendment	3654
of section 5727.84 of the Revised Code by Amended Substitute House	3655
Bill 95 of the 125th general assembly.	3656

(G) If all or a part of the territories of two or more local	3657
taxing units are merged, or unincorporated territory of a township	3658
is annexed by a municipal corporation, the tax commissioner shall	3659
adjust the payments made under this section to each of the local	3660
taxing units in proportion to the square mileage apportioned to	3661
the merged or annexed territory, or as otherwise provided by a	3662
written agreement between the legislative authorities of the local	3663
taxing units certified to the tax commissioner not later than the	3664
first day of June of the calendar year in which the payment is to	3665
be made.	3666

Sec. 5731.39. (A)This section does not apply to, and the	3667
written permission of the tax commissioner is not required for	3668
asset transfers with respect to, decedents dying on or after	3669
January 1, 2013.	3670

(A) No corporation organized or existing under the laws of	3671
this state shall transfer on its books or issue a new certificate	3672
for any share of its capital stock registered in the name of a	3673
decedent, or in trust for a decedent, or in the name of a decedent	3674
and another person or persons, without the written consent of the	3675
tax commissioner.	3676

(B) No safe deposit company, trust company, financial	3677
institution as defined in division (A) of section 5725.01 of the	3678
Revised Code or other corporation or person, having in possession,	3679
control, or custody a deposit standing in the name of a decedent,	3680
or in trust for a decedent, or in the name of a decedent and	3681
another person or persons, shall deliver or transfer an amount in	3682
excess of three-fourths of the total value of such deposit,	3683
including accrued interest and dividends, as of the date of	3684
decedent's death, without the written consent of the tax	3685
commissioner. The written consent of the tax commissioner need not	3686
be obtained prior to the delivery or transfer of amounts having a	3687
value of three-fourths or less of said total value.	3688

(C) No life insurance company shall pay the proceeds of an	3689
annuity or matured endowment contract, or of a life insurance	3690
contract payable to the estate of a decedent, or of any other	3691
insurance contract taxable under Chapter 5731. of the Revised	3692
Code, without the written consent of the tax commissioner. Any	3693
life insurance company may pay the proceeds of any insurance	3694
contract not specified in this division (C) without the written	3695
consent of the tax commissioner.	3696

(D) No trust company or other corporation or person shall pay	3697
the proceeds of any death benefit, retirement, pension or profit	3698
sharing plan in excess of two thousand dollars, without the	3699
written consent of the tax commissioner. Such trust company or	3700
other corporation or person, however, may pay the proceeds of any	3701
death benefit, retirement, pension, or profit-sharing plan which	3702
consists of insurance on the life of the decedent payable to a	3703
beneficiary other than the estate of the insured without the	3704
written consent of the tax commissioner.	3705

(E) No safe deposit company, trust company, financial	3706
institution as defined in division (A) of section 5725.01 of the	3707
Revised Code, or other corporation or person, having in	3708
possession, control, or custody securities, assets, or other	3709
property (including the shares of the capital stock of, or other	3710
interest in, such safe deposit company, trust company, financial	3711
institution as defined in division (A) of section 5725.01 of the	3712
Revised Code, or other corporation), standing in the name of a	3713
decedent, or in trust for a decedent, or in the name of a decedent	3714
and another person or persons, and the transfer of which is	3715
taxable under Chapter 5731. of the Revised Code, shall deliver or	3716
transfer any such securities, assets, or other property which have	3717
a value as of the date of decedent's death in excess of	3718
three-fourths of the total value thereof, without the written	3719
consent of the tax commissioner. The written consent of the tax	3720
commissioner need not be obtained prior to the delivery or	3721
transfer of any such securities, assets, or other property having	3722
a value of three-fourths or less of said total value.	3723

(F) No safe deposit company, financial institution as defined	3724
in division (A) of section 5725.01 of the Revised Code, or other	3725
corporation or person having possession or control of a safe	3726
deposit box or similar receptacle standing in the name of a	3727
decedent or in the name of the decedent and another person or	3728
persons, or to which the decedent had a right of access, except	3729
when such safe deposit box or other receptacle stands in the name	3730
of a corporation or partnership, or in the name of the decedent as	3731
guardian or executor, shall deliver any of the contents thereof	3732
unless the safe deposit box or similar receptacle has been opened	3733
and inventoried in the presence of the tax commissioner or the	3734
commissioner's agent, and a written consent to transfer issued;	3735
provided, however, that a safe deposit company, financial	3736
institution, or other corporation or person having possession or	3737
control of a safe deposit box may deliver wills, deeds to burial	3738
lots, and insurance policies to a representative of the decedent,	3739
but that a representative of the safe deposit company, financial	3740
institution, or other corporation or person must supervise the	3741
opening of the box and make a written record of the wills, deeds,	3742
and policies removed. Such written record shall be included in the	3743
tax commissioner's inventory records.	3744

(G) Notwithstanding any provision of this section:

3745

(1) The tax commissioner may authorize any delivery or	3746
transfer or waive any of the foregoing requirements under such	3747
terms and conditions as the commissioner may prescribe;	3748

(2) An adult care facility, as defined in section 5119.70 of	3749
the Revised Code, or a home, as defined in section 3721.10 of the	3750
Revised Code, may transfer or use the money in a personal needs	3751
allowance account in accordance with section 5111.113 of the	3752
Revised Code without the written consent of the tax commissioner,	3753
and without the account having been opened and inventoried in the	3754
presence of the commissioner or the commissioner's agent.	3755

Failure to comply with this section shall render such safe	3756
deposit company, trust company, life insurance company, financial	3757
institution as defined in division (A) of section 5725.01 of the	3758
Revised Code, or other corporation or person liable for the amount	3759
of the taxes and interest due under the provisions of Chapter	3760
5731. of the Revised Code on the transfer of such stock, deposit,	3761
proceeds of an annuity or matured endowment contract or of a life	3762
insurance contract payable to the estate of a decedent, or other	3763
insurance contract taxable under Chapter 5731. of the Revised	3764
Code, proceeds of any death benefit, retirement, pension, or	3765
profit sharing plan in excess of two thousand dollars, or	3766
securities, assets, or other property of any resident decedent,	3767
and in addition thereto, to a penalty of not less than five	3768
hundred or more than five thousand dollars.	3769

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

3770

(1) "Billing address" means the address where any notice,	3771
statement, or bill relating to a customer's account is mailed, as	3772
indicated in the books and records of the taxpayer on the first	3773
day of the taxable year or on such later date in the taxable year	3774
when the customer relationship began.	3775

(2) "Borrower or credit card holder located in this state"	3776
means:	3777

(a) A borrower, other than a credit card holder, that is	3778
engaged in a trade or business and maintains its commercial	3779
domicile in this state; or	3780

(b) A borrower that is not engaged in a trade or business, or	3781
a credit card holder, whose billing address is in this state.	3782

(3) "Branch" means a "domestic branch" as defined in section	3783
3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12 U.S.C.	3784
1813(o), as amended.	3785

(4) "Compensation" means wages, salaries, commissions, and	3786
any other form of remuneration paid to employees for personal	3787
services that are included in such employee's gross income under	3788
the Internal Revenue Code. In the case of employees not subject to	3789
the Internal Revenue Code, such as those employed in foreign	3790
countries, the determination of whether such payments would	3791
constitute gross income to such employees under the Internal	3792
Revenue Code shall be made as though such employees were subject	3793
to the Internal Revenue Code.	3794

(5) "Credit card" means a credit, travel, or entertainment	3795
card.	3796

(6) "Credit card issuer's reimbursement fee" means the fee a	3797
taxpayer receives from a merchant's bank because one of the	3798
persons to whom the taxpayer has issued a credit card has charged	3799
merchandise or services to the credit card.	3800

(7) "Deposits" has the meaning given in section 3 of the	3801
"Federal Deposit Insurance Act," 64 Stat. 873, 12 U.S.C. 1813(1),	3802
as amended.	3803

(8) "Employee" means, with respect to a particular taxpayer,	3804
any individual who under the usual common law rules applicable in	3805
determining the employer-employee relationship, has the status of	3806
an employee of that taxpayer.	3807

(9) "Gross rents" means the actual sum of money or other	3808
consideration payable for the use or possession of property.	3809
"Gross rents" includes:	3810

(a) Any amount payable for the use or possession of real	3811
property or tangible personal property whether designated as a	3812
fixed sum of money or as a percentage of receipts, profits, or	3813
otherwise;	3814

(b) Any amount payable as additional rent or in lieu of rent,	3815
such as interest, taxes, insurance, repairs, or any other amount	3816
required to be paid by the terms of a lease or other arrangement;	3817
and	3818

(c) A proportionate part of the cost of any improvement to	3819
real property made by or on behalf of the taxpayer which reverts	3820
to the owner or lessor upon termination of a lease or other	3821
arrangement. The amount to be included in gross rents is the	3822
amount of amortization or depreciation allowed in computing the	3823
taxable income base for the taxable year. However, where a	3824
building is erected on leased land, by or on behalf of the	3825
taxpayer, the value of the land is determined by multiplying the	3826
gross rent by eight, and the value of the building is determined	3827
in the same manner as if owned by the taxpayer.	3828

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

3829

(i) Reasonable amounts payable as separate charges for water	3830
and electric service furnished by the lessor;	3831

(ii) Reasonable amounts payable as service charges for	3832
janitorial services furnished by the lessor;	3833

(iii) Reasonable amounts payable for storage, provided such	3834
amounts are payable for space not designated and not under the	3835
control of the taxpayer; and	3836

(iv) That portion of any rental payment which is applicable	3837
to the space subleased from the taxpayer and not used by it.	3838

(10) "Loan" means any extension of credit resulting from	3839
direct negotiations between the taxpayer and its customer, or the	3840
purchase, in whole or in part, of such extension of credit from	3841
another. Loans include debt obligations of subsidiaries,	3842
participations, syndications, and leases treated as loans for	3843
federal income tax purposes. "Loan" does not include: properties	3844
treated as loans under section 595 of the Internal Revenue Code;	3845
futures or forward contracts; options; notional principal	3846
contracts such as swaps; credit card receivables, including	3847
purchased credit card relationships; non-interest bearing balances	3848
due from depositor institutions; cash items in the process of	3849
collection; federal funds sold; securities purchased under	3850
agreements to resell; assets held in a trading account;	3851
securities; interests in a real estate mortgage investment conduit	3852
or other mortgage-backed or asset-backed security; and other	3853
similar items.	3854

(11) "Loan secured by real property" means that fifty per	3855
cent or more of the aggregate value of the collateral used to	3856
secure a loan or other obligation, when valued at fair market	3857
value as of the time the original loan or obligation was incurred,	3858
was real property.	3859

(12) "Merchant discount" means the fee, or negotiated	3860
discount, charged to a merchant by the taxpayer for the privilege	3861
of participating in a program whereby a credit card is accepted in	3862
payment for merchandise or services sold to the card holder.	3863

(13) "Participation" means an extension of credit in which an	3864
undivided ownership interest is held on a pro rata basis in a	3865
single loan or pool of loans and related collateral. In a loan	3866
participation, the credit originator initially makes the loan and	3867
then subsequently resells all or a portion of it to other lenders.	3868
The participation may or may not be known to the borrower.	3869

(14) "Principal base of operations" with respect to	3870
transportation property means the place of more or less permanent	3871
nature from which the property is regularly directed or	3872
controlled. With respect to an employee, the "principal base of	3873
operations" means the place of more or less permanent nature from	3874
which the employee regularly (a) starts work and to which the	3875
employee customarily returns in order to receive instructions from	3876
the employer or (b) communicates with the employee's customers or	3877
other persons or (c) performs any other functions necessary to the	3878
exercise of the trade or profession at some other point or points.	3879

(15) "Qualified institution" means a financial institution	3880
that on or after June 1, 1997:	3881

(a)(i) Has consummated one or more approved transactions with	3882
insured banks with different home states that would qualify under	3883
section 102 of the "Riegle-Neal Interstate Banking and Branching	3884
Efficiency Act of 1994," Public Law 103-328, 108 Stat. 2338;	3885

(ii) Is a federal savings association or federal savings bank	3886
that has consummated one or more interstate acquisitions that	3887
result in a financial institution that has branches in more than	3888
one state; or	3889

(iii) Has consummated one or more approved interstate	3890
acquisitions under authority of Title XI of the Revised Code that	3891
result in a financial institution that has branches in more than	3892
one state; and	3893

(b) Has at least nine per cent of its deposits in this state	3894
as of the last day of June prior to the beginning of the tax year.	3895

(16) "Real property owned" and "tangible personal property	3896
owned" mean real and tangible personal property, respectively, on	3897
which the taxpayer may claim depreciation for federal income tax	3898
purposes, or to which the taxpayer holds legal title and on which	3899
no other person may claim depreciation for federal income tax	3900
purposes, or could claim depreciation if subject to federal income	3901
tax. Real and tangible personal property do not include coin,	3902
currency, or property acquired in lieu of or pursuant to a	3903
foreclosure.	3904

(17) "Regular place of business" means an office at which the	3905
taxpayer carries on its business in a regular and systematic	3906
manner and which is continuously maintained, occupied, and used by	3907
employees of the taxpayer.	3908

(18) "State" means a state of the United States, the District	3909
of Columbia, the commonwealth of Puerto Rico, or any territory or	3910
possession of the United States.	3911

(19) "Syndication" means an extension of credit in which two	3912
or more persons fund and each person is at risk only up to a	3913
specified percentage of the total extension of credit or up to a	3914
specified dollar amount.	3915

(20) "Transportation property" means vehicles and vessels	3916
capable of moving under their own power, such as aircraft, trains,	3917
water vessels and motor vehicles, as well as any equipment or	3918
containers attached to such property, such as rolling stock,	3919
barges, trailers, or the like.	3920

(21) "Qualified financial institution" means a financial	3921
institution in which not less than eighty per cent of the	3922
financial institution's ownership interest is owned directly or	3923
indirectly by a grandfathered unitary savings and loan holding	3924
company described in 12 U.S.C. 1467a(c)(9)(C).	3925

(B) The annual financial institution report determines the	3926
value of the issued and outstanding shares of stock of the	3927
taxpayer, and is the base or measure of the franchise tax	3928
liability. Such determination shall be made as of the date shown	3929
by the report to have been the beginning of the financial	3930
institution's annual accounting period that includes the first day	3931
of January of the tax year. For purposes of this section, division	3932
(A) of section 5733.05, and division (D) of section 5733.06 of the	3933
Revised Code, the value of the issued and outstanding shares of	3934
stock of the financial institution shall include the total value,	3935
as shown by the books of the financial institution, of its	3936
capital, surplus, whether earned or unearned, undivided profits,	3937
and reserves, but exclusive of:	3938

(1) Reserves for accounts receivable, depreciation,	3939
depletion, and any other valuation reserves with respect to	3940
specific assets;	3941

(2) Taxes due and payable during the year for which such	3942
report was made;	3943

(3) Voting stock and participation certificates in	3944
corporations chartered pursuant to the "Farm Credit Act of 1971,"	3945
85 Stat. 597, 12 U.S.C. 2091, as amended;	3946

(4) Good will, appreciation, and abandoned property as set up	3947
in the annual report of the financial institution, provided a	3948
certified balance sheet of the company is made available upon the	3949
request of the tax commissioner. Such balance sheet shall not be a	3950
part of the public records, but shall be a confidential report for	3951
use of the tax commissioner only.	3952

(5) A portion of the value of the issued and outstanding	3953
shares of stock of such financial institution equal to the amount	3954
obtained by multiplying such value by the quotient obtained by:	3955

(a) Dividing (1) the amount of the financial institution's	3956
assets, as shown on its books, represented by investments in the	3957
capital stock and indebtedness of public utilities, except	3958
electric companies and combined companies, and, for tax years 2005	3959
and thereafter, telephone companies, of which at least eighty per	3960
cent of the utility's issued and outstanding common stock is owned	3961
by the financial institution by (2) the total assets of such	3962
financial institution as shown on its books;	3963

(b) Dividing (1) the amount of the financial institution's	3964
assets, as shown on its books, represented by investments in the	3965
capital stock and indebtedness of insurance companies of which at	3966
least eighty per cent of the insurance company's issued and	3967
outstanding common stock is owned by the financial institution by	3968
(2) the total assets of such financial institution as shown on its	3969
books;	3970

(c) Dividing (1) the amount of the financial institution's	3971
assets, as shown on its books, represented by investments in the	3972
capital stock and indebtedness of other financial institutions of	3973
which at least twenty-five per cent of the other financial	3974
institution's issued and outstanding common stock is owned by the	3975
financial institution by (2) the total assets of the financial	3976
institution as shown on its books. Division (B)(5)(c) of this	3977
section applies only with respect to such other financial	3978
institutions that for the tax year immediately following the	3979
taxpayer's taxable year will pay the tax imposed by division (D)	3980
of section 5733.06 of the Revised Code.	3981

(6) Land that has been determined pursuant to section 5713.31	3982
of the Revised Code by the county auditor of the county in which	3983
the land is located to be devoted exclusively to agricultural use	3984
as of the first Monday of June in the financial institution's	3985
taxable year.	3986

(7) Property within this state used exclusively during the	3987
taxable year for qualified research as defined in section 5733.05	3988
of the Revised Code.	3989

(C) TheExcept as provided under division (I) of this	3990
section, the base upon which the tax levied under division (D) of	3991
section 5733.06 of the Revised Code shall be computed by	3992
multiplying the value of a financial institution's issued and	3993
outstanding shares of stock as determined in division (B) of this	3994
section by a fraction. The numerator of the fraction is the sum of	3995
the following: the property factor multiplied by fifteen, the	3996
payroll factor multiplied by fifteen, and the sales factor	3997
multiplied by seventy. The denominator of the fraction is one	3998
hundred, provided that the denominator shall be reduced by fifteen	3999
if the property factor has a denominator of zero, by fifteen if	4000
the payroll factor has a denominator of zero, and by seventy if	4001
the sales factor has a denominator of zero.	4002

(D) A financial institution shall calculate the property	4003
factor as follows:	4004

(1) The property factor is a fraction, the numerator of which	4005
is the average value of real property and tangible personal	4006
property rented to the taxpayer that is located or used within	4007
this state during the taxable year, the average value of real and	4008
tangible personal property owned by the taxpayer that is located	4009
or used within this state during the taxable year, and the average	4010
value of the taxpayer's loans and credit card receivables that are	4011
located within this state during the taxable year; and the	4012
denominator of which is the average value of all such property	4013
located or used within and without this state during the taxable	4014
year.	4015

(2)(a) The value of real property and tangible personal	4016
property owned by the taxpayer is the original cost or other basis	4017
of such property for federal income tax purposes without regard to	4018
depletion, depreciation, or amortization.	4019

(b) Loans are valued at their outstanding principal balance,	4020
without regard to any reserve for bad debts. If a loan is	4021
charged-off in whole or in part for federal income tax purposes,	4022
the portion of the loan charged-off is not outstanding. A	4023
specifically allocated reserve established pursuant to financial	4024
accounting guidelines which is treated as charged-off for federal	4025
income tax purposes shall be treated as charged-off for purposes	4026
of this section.	4027

(c) Credit card receivables are valued at their outstanding	4028
principal balance, without regard to any reserve for bad debts. If	4029
a credit card receivable is charged-off in whole or in part for	4030
federal income tax purposes, the portion of the receivable	4031
charged-off is not outstanding.	4032

(3) The average value of property owned by the taxpayer is	4033
computed on an annual basis by adding the value of the property on	4034
the first day of the taxable year and the value on the last day of	4035
the taxable year and dividing the sum by two. If averaging on this	4036
basis does not properly reflect average value, the tax	4037
commissioner may require averaging on a more frequent basis. The	4038
taxpayer may elect to average on a more frequent basis. When	4039
averaging on a more frequent basis is required by the tax	4040
commissioner or is elected by the taxpayer, the same method of	4041
valuation must be used consistently by the taxpayer with respect	4042
to property within and without this state and on all subsequent	4043
returns unless the taxpayer receives prior permission from the tax	4044
commissioner or the tax commissioner requires a different method	4045
of determining value.	4046

(4)(a) The average value of real property and tangible	4047
personal property that the taxpayer has rented from another and is	4048
not treated as property owned by the taxpayer for federal income	4049
tax purposes, shall be determined annually by multiplying the	4050
gross rents payable during the taxable year by eight.	4051

(b) Where the use of the general method described in division	4052
(D)(4)(a) of this section results in inaccurate valuations of	4053
rented property, any other method which properly reflects the	4054
value may be adopted by the tax commissioner or by the taxpayer	4055
when approved in writing by the tax commissioner. Once approved,	4056
such other method of valuation must be used on all subsequent	4057
returns unless the taxpayer receives prior approval from the tax	4058
commissioner or the tax commissioner requires a different method	4059
of valuation.	4060

(5)(a) Except as described in division (D)(5)(b) of this	4061
section, real property and tangible personal property owned by or	4062
rented to the taxpayer is considered to be located within this	4063
state if it is physically located, situated, or used within this	4064
state.	4065

(b) Transportation property is included in the numerator of	4066
the property factor to the extent that the property is used in	4067
this state. The extent an aircraft will be deemed to be used in	4068
this state and the amount of value that is to be included in the	4069
numerator of this state's property factor is determined by	4070
multiplying the average value of the aircraft by a fraction, the	4071
numerator of which is the number of landings of the aircraft in	4072
this state and the denominator of which is the total number of	4073
landings of the aircraft everywhere. If the extent of the use of	4074
any transportation property within this state cannot be	4075
determined, then the property will be deemed to be used wholly in	4076
the state in which the property has its principal base of	4077
operations. A motor vehicle will be deemed to be used wholly in	4078
the state in which it is registered.	4079

(6)(a)(i) A loan, other than a loan or advance described in	4080
division (D)(6)(d) of this section, is considered to be located	4081
within this state if it is properly assigned to a regular place of	4082
business of the taxpayer within this state.	4083

(ii) A loan is properly assigned to the regular place of	4084
business with which it has a preponderance of substantive	4085
contacts. A loan assigned by the taxpayer to a regular place of	4086
business without the state shall be presumed to have been properly	4087
assigned if:	4088

(I) The taxpayer has assigned, in the regular course of its	4089
business, such loan on its records to a regular place of business	4090
consistent with federal or state regulatory requirements;	4091

(II) Such assignment on its records is based upon substantive	4092
contacts of the load to such regular place of business; and	4093

(III) The taxpayer uses the records reflecting assignment of	4094
loans for the filing of all state and local tax returns for which	4095
an assignment of loans to a regular place of business is required.	4096

(iii) The presumption of proper assignment of a loan provided	4097
in division (D)(6)(a)(ii) of this section may be rebutted upon a	4098
showing by the tax commissioner, supported by a preponderance of	4099
the evidence, that the preponderance of substantive contacts	4100
regarding such loan did not occur at the regular place of business	4101
to which it was assigned on the taxpayer's records. When such	4102
presumption has been rebutted, the loan shall then be located	4103
within this state if (1) the taxpayer had a regular place of	4104
business within this state at the time the loan was made; and (2)	4105
the taxpayer fails to show, by a preponderance of the evidence,	4106
that the preponderance of substantive contacts regarding such loan	4107
did not occur within this state.	4108

(b) In the case of a loan which is assigned by the taxpayer	4109
to a place without this state which is not a regular place of	4110
business, it shall be presumed, subject to rebuttal by the	4111
taxpayer on a showing supported by the preponderance of evidence,	4112
that the preponderance of substantive contacts regarding the loan	4113
occurred within this state if, at the time the loan was made the	4114
taxpayer's commercial domicile was within this state.	4115

(c) To determine the state in which the preponderance of	4116
substantive contacts relating to a loan have occurred, the facts	4117
and circumstances regarding the loan at issue shall be reviewed on	4118
a case-by-case basis and consideration shall be given to such	4119
activities as the solicitation, investigation, negotiation,	4120
approval, and administration of the loan. The terms	4121
"solicitation," "investigation," "negotiation," "approval," and	4122
"administration" are defined as follows:	4123

(i) "Solicitation" is either active or passive. Active	4124
solicitation occurs when an employee of the taxpayer initiates the	4125
contact with the customer. Such activity is located at the regular	4126
place of business which the taxpayer's employee is regularly	4127
connected with or working out of, regardless of where the services	4128
of such employee were actually performed. Passive solicitation	4129
occurs when the customer initiates the contact with the taxpayer.	4130
If the customer's initial contact was not at a regular place of	4131
business of the taxpayer, the regular place of business, if any,	4132
where the passive solicitation occurred is determined by the facts	4133
in each case.	4134

(ii) "Investigation" is the procedure whereby employees of	4135
the taxpayer determine the creditworthiness of the customer as	4136
well as the degree of risk involved in making a particular	4137
agreement. Such activity is located at the regular place of	4138
business which the taxpayer's employees are regularly connected	4139
with or working out of, regardless of where the services of such	4140
employees were actually performed.	4141

(iii) Negotiation is the procedure whereby employees of the	4142
taxpayer and its customer determine the terms of the agreement,	4143
such as the amount, duration, interest rate, frequency of	4144
repayment, currency denomination, and security required. Such	4145
activity is located at the regular place of business to which the	4146
taxpayer's employees are regularly connected or working from,	4147
regardless of where the services of such employees were actually	4148
performed.	4149

(iv) "Approval" is the procedure whereby employees or the	4150
board of directors of the taxpayer make the final determination	4151
whether to enter into the agreement. Such activity is located at	4152
the regular place of business to which the taxpayer's employees	4153
are regularly connected or working from, regardless of where the	4154
services of such employees were actually performed. If the board	4155
of directors makes the final determination, such activity is	4156
located at the commercial domicile of the taxpayer.	4157

(v) "Administration" is the process of managing the account.	4158
This process includes bookkeeping, collecting the payments,	4159
corresponding with the customer, reporting to management regarding	4160
the status of the agreement, and proceeding against the borrower	4161
or the security interest if the borrower is in default. Such	4162
activity is located at the regular place of business that oversees	4163
this activity.	4164

(d) A loan or advance to a subsidiary corporation at least	4165
fifty-one per cent of whose common stock is owned by the financial	4166
institution shall be allocated in and out of the state by the	4167
application of a ratio whose numerator is the sum of the net book	4168
value of the subsidiary's real property owned in this state and	4169
the subsidiary's tangible personal property owned in this state	4170
and whose denominator is the sum of the subsidiary's real property	4171
owned wherever located and the subsidiary's tangible personal	4172
property owned wherever located. For purposes of calculating this	4173
ratio, the taxpayer shall determine net book value in accordance	4174
with generally accepted accounting principles. If the subsidiary	4175
corporation owns at least fifty-one per cent of the common stock	4176
of another corporation, the ratio shall be calculated by including	4177
the other corporation's real property and tangible personal	4178
property. The calculation of the ratio applies with respect to all	4179
lower-tiered subsidiaries, provided that the immediate parent	4180
corporation of the subsidiary owns at least fifty-one per cent of	4181
the common stock of that subsidiary.	4182

(7) For purposes of determining the location of credit card	4183
receivables, credit card receivables shall be treated as loans and	4184
shall be subject to division (D)(6) of this section.	4185

(8) A loan that has been properly assigned to a state shall,	4186
absent any change of material fact, remain assigned to that state	4187
for the length of the original term of the loan. Thereafter, the	4188
loan may be properly assigned to another state if the loan has a	4189
preponderance of substantive contact to a regular place of	4190
business there.	4191

(E) A financial institution shall calculate the payroll	4192
factor as follows:	4193

(1) The payroll factor is a fraction, the numerator of which	4194
is the total amount paid in this state during the taxable year by	4195
the taxpayer for compensation, and the denominator of which is the	4196
total compensation paid both within and without this state during	4197
the taxable year.	4198

(2) Compensation is paid in this state if any one of the	4199
following tests, applied consecutively, is met:	4200

(a) The employee's services are performed entirely within	4201
this state.	4202

(b) The employee's services are performed both within and	4203
without this state, but the service performed without this state	4204
is incidental to the employee's service within this state. The	4205
term "incidental" means any service which is temporary or	4206
transitory in nature, or which is rendered in connection with an	4207
isolated transaction.	4208

(c) The employee's services are performed both within and	4209
without this state, and:	4210

(i) The employee's principal base of operations is within	4211
this state; or	4212

(ii) There is no principal base of operations in any state in	4213
which some part of the services are performed, but the place from	4214
which the services are directed or controlled is in this state; or	4215

(iii) The principal base of operations and the place from	4216
which the services are directed or controlled are not in any state	4217
in which some part of the service is performed but the employee's	4218
residence is in this state.	4219

(F) A financial institution shall calculate the sales factor	4220
as follows:	4221

(1) The sales factor is a fraction, the numerator of which is	4222
the receipts of the taxpayer in this state during the taxable year	4223
and the denominator of which is the receipts of the taxpayer	4224
within and without this state during the taxable year. The method	4225
of calculating receipts for purposes of the denominator is the	4226
same as the method used in determining receipts for purposes of	4227
the numerator.	4228

(2) The numerator of the sales factor includes receipts from	4229
the lease or rental of real property owned by the taxpayer if the	4230
property is located within this state, or receipts from the	4231
sublease of real property if the property is located within this	4232
state.	4233

(3)(a) Except as described in division (F)(3)(b) of this	4234
section the numerator of the sales factor includes receipts from	4235
the lease or rental of tangible personal property owned by the	4236
taxpayer if the property is located within this state when it is	4237
first placed in service by the lessee.	4238

(b) Receipts from the lease or rental of transportation	4239
property owned by the taxpayer are included in the numerator of	4240
the sales factor to the extent that the property is used in this	4241
state. The extent an aircraft will be deemed to be used in this	4242
state and the amount of receipts that is to be included in the	4243
numerator of this state's sales factor is determined by	4244
multiplying all the receipts from the lease or rental of the	4245
aircraft by a fraction, the numerator of which is the number of	4246
landings of the aircraft in this state and the denominator of	4247
which is the total number of landings of the aircraft. If the	4248
extent of the use of any transportation property within this state	4249
cannot be determined, then the property will be deemed to be used	4250
wholly in the state in which the property has its principal base	4251
of operations. A motor vehicle will be deemed to be used wholly in	4252
the state in which it is registered.	4253

(4)(a) The numerator of the sales factor includes interest	4254
and fees or penalties in the nature of interest from loans secured	4255
by real property if the property is located within this state. If	4256
the property is located both within this state and one or more	4257
other states, the receipts described in this paragraph are	4258
included in the numerator of the sales factor if more than fifty	4259
per cent of the fair market value of the real property is located	4260
within this state. If more than fifty per cent of the fair market	4261
value of the real property is not located within any one state,	4262
then the receipts described in this paragraph shall be included in	4263
the numerator of the sales factor if the borrower is located in	4264
this state.	4265

(b) The determination of whether the real property securing a	4266
loan is located within this state shall be made as of the time the	4267
original agreement was made and any and all subsequent	4268
substitutions of collateral shall be disregarded.	4269

(5) The numerator of the sales factor includes interest and	4270
fees or penalties in the nature of interest from loans not secured	4271
by real property if the borrower is located in this state.	4272

(6) The numerator of the sales factor includes net gains from	4273
the sale of loans. Net gains from the sale of loans includes	4274
income recorded under the coupon stripping rules of section 1286	4275
of the Internal Revenue Code.	4276

(a) The amount of net gains, but not less than zero, from the	4277
sale of loans secured by real property included in the numerator	4278
is determined by multiplying such net gains by a fraction the	4279
numerator of which is the amount included in the numerator of the	4280
sales factor pursuant to division (F)(4) of this section and the	4281
denominator of which is the total amount of interest and fees or	4282
penalties in the nature of interest from loans secured by real	4283
property.	4284

(b) The amount of net gains, but not less than zero, from the	4285
sale of loans not secured by real property included in the	4286
numerator is determined by multiplying such net gains by a	4287
fraction the numerator of which is the amount included in the	4288
numerator of the sales factor pursuant to division (F)(5) of this	4289
section and the denominator of which is the total amount of	4290
interest and fees or penalties in the nature of interest from	4291
loans not secured by real property.	4292

(7) The numerator of the sales factor includes interest and	4293
fees or penalties in the nature of interest from credit card	4294
receivables and receipts from fees charged to card holders, such	4295
as annual fees, if the billing address of the card holder is in	4296
this state.	4297

(8) The numerator of the sales factor includes net gains, but	4298
not less than zero, from the sale of credit card receivables	4299
multiplied by a fraction, the numerator of which is the amount	4300
included in the numerator of the sales factor pursuant to division	4301
(F)(7) of this section and the denominator of which is the	4302
taxpayer's total amount of interest and fees or penalties in the	4303
nature of interest from credit card receivables and fees charged	4304
to card holders.	4305

(9) The numerator of the sales factor includes all credit	4306
card issuer's reimbursement fees multiplied by a fraction, the	4307
numerator of which is the amount included in the numerator of the	4308
sales factor pursuant to division (F)(7) of this section and the	4309
denominator of which is the taxpayer's total amount of interest	4310
and fees or penalties in the nature of interest from credit card	4311
receivables and fees charged to card holders.	4312

(10) The numerator of the sales factor includes receipts from	4313
merchant discount if the commercial domicile of the merchant is in	4314
this state. Such receipts shall be computed net of any card holder	4315
charge backs, but shall not be reduced by any interchange	4316
transaction fees or by any issuer's reimbursement fees paid to	4317
another for charges made by its card holders.	4318

(11)(a)(i) The numerator of the sales factor includes loan	4319
servicing fees derived from loans secured by real property	4320
multiplied by a fraction the numerator of which is the amount	4321
included in the numerator of the sales factor pursuant to division	4322
(F)(4) of this section and the denominator of which is the total	4323
amount of interest and fees or penalties in the nature of interest	4324
from loans secured by real property.	4325

(ii) The numerator of the sales factor includes loan	4326
servicing fees derived from loans not secured by real property	4327
multiplied by a fraction the numerator of which is the amount	4328
included in the numerator of the sales factor pursuant to division	4329
(F)(5) of this section and the denominator of which is the total	4330
amount of interest and fees or penalties in the nature of interest	4331
from loans not secured by real property.	4332

(b) In circumstances in which the taxpayer receives loan	4333
servicing fees for servicing either the secured or the unsecured	4334
loans of another, the numerator of the sales factor shall include	4335
such fees if the borrower is located in this state.	4336

(12) The numerator of the sales factor includes receipts from	4337
services not otherwise apportioned under this section if the	4338
service is performed in this state. If the service is performed	4339
both within and without this state, the numerator of the sales	4340
factor includes receipts from services not otherwise apportioned	4341
under this section, if a greater proportion of the	4342
income-producing activity is performed in this state based on cost	4343
of performance.	4344

(13)(a) Interest, dividends, net gains, but not less than	4345
zero, and other income from investment assets and activities and	4346
from trading assets and activities shall be included in the sales	4347
factor. Investment assets and activities and trading assets and	4348
activities include but are not limited to: investment securities;	4349
trading account assets; federal funds; securities purchased and	4350
sold under agreements to resell or repurchase; options; futures	4351
contracts; forward contracts; notional principal contracts such as	4352
swaps; equities; and foreign currency transactions. With respect	4353
to the investment and trading assets and activities described in	4354
divisions (F)(13)(a)(i) and (ii) of this section, the sales factor	4355
shall include the amounts described in such divisions.	4356

(i) The sales factor shall include the amount by which	4357
interest from federal funds sold and securities purchased under	4358
resale agreements exceeds interest expense on federal funds	4359
purchased and securities sold under repurchase agreements.	4360

(ii) The sales factor shall include the amount by which	4361
interest, dividends, gains, and other income from trading assets	4362
and activities, including, but not limited to, assets and	4363
activities in the matched book, in the arbitrage book, and foreign	4364
currency transactions, exceed amounts paid in lieu of interest,	4365
amounts paid in lieu of dividends, and losses from such assets and	4366
activities.	4367

(b) The numerator of the sales factor includes interest,	4368
dividends, net gains, but not less than zero, and other income	4369
from investment assets and activities and from trading assets and	4370
activities described in division (F)(13)(a) of this section that	4371
are attributable to this state.	4372

(i) The amount of interest, other than interest described in	4373
division (F)(13)(b)(iv) of this section, dividends, other than	4374
dividends described in that division, net gains, but not less than	4375
zero, and other income from investment assets and activities in	4376
the investment account to be attributed to this state and included	4377
in the numerator is determined by multiplying all such income from	4378
such assets and activities by a fraction, the numerator of which	4379
is the average value of such assets which are properly assigned to	4380
a regular place of business of the taxpayer within this state and	4381
the denominator of which is the average value of all such assets.	4382

(ii) The amount of interest from federal funds sold and	4383
purchased and from securities purchased under resale agreements	4384
and securities sold under repurchase agreements attributable to	4385
this state and included in the numerator is determined by	4386
multiplying the amount described in division (F)(13)(a)(i) of this	4387
section from such funds and such securities by a fraction, the	4388
numerator of which is the average value of federal funds sold and	4389
securities purchased under agreements to resell which are properly	4390
assigned to a regular place of business of the taxpayer within	4391
this state and the denominator of which is the average value of	4392
all such funds and such securities.	4393

(iii) The amount of interest, dividends, gains, and other	4394
income from trading assets and activities, including but not	4395
limited to assets and activities in the matched book, in the	4396
arbitrage book, and foreign currency transaction, but excluding	4397
amounts described in division (F)(13)(b)(i) or (ii) of this	4398
section, attributable to this state and included in the numerator	4399
is determined by multiplying the amount described in division	4400
(F)(13)(a)(ii) of this section by a fraction, the numerator of	4401
which is the average value of such trading assets which are	4402
properly assigned to a regular place of business of the taxpayer	4403
within this state and the denominator of which is the average	4404
value of all such assets.	4405

(iv) The amount of dividends received on the capital stock	4406
of, and the amount of interest received from loans and advances	4407
to, subsidiary corporations at least fifty-one per cent of whose	4408
common stock is owned by the reporting financial institution shall	4409
be allocated in and out of this state by the application of a	4410
ratio whose numerator is the sum of the net book value of the	4411
payor's real property owned in this state and the payor's tangible	4412
personal property owned in this state and whose denominator is the	4413
sum of the net book value of the payor's real property owned	4414
wherever located and the payor's tangible personal property owned	4415
wherever located. For purposes of calculating this ratio, the	4416
taxpayer shall determine net book value in accordance with	4417
generally accepted accounting principles.	4418

(v) For purposes of this division, average value shall be	4419
determined using the rules for determining the average value of	4420
tangible personal property set forth in division (D)(2) and (3) of	4421
this section.	4422

(c) In lieu of using the method set forth in division	4423
(F)(13)(b) of this section, the taxpayer may elect, or the tax	4424
commissioner may require in order to fairly represent the business	4425
activity of the taxpayer in this state, the use of the method set	4426
forth in division (F)(13)(c) of this section.	4427

(i) The amount of interest, other than interest described in	4428
division (F)(13)(b)(iv) of this section, dividends, other than	4429
dividends described in that division, net gains, but not less than	4430
zero, and other income from investment assets and activities in	4431
the investment account to be attributed to this state and included	4432
in the numerator is determined by multiplying all such income from	4433
such assets and activities by a fraction, the numerator of which	4434
is the gross income from such assets and activities which are	4435
properly assigned to a regular place of business of the taxpayer	4436
within this state, and the denominator of which is the gross	4437
income from all such assets and activities.	4438

(ii) The amount of interest from federal funds sold and	4439
purchased and from securities purchased under resale agreements	4440
and securities sold under repurchase agreements attributable to	4441
this state and included in the numerator is determined by	4442
multiplying the amount described in division (F)(13)(a)(i) of this	4443
section from such funds and such securities by a fraction, the	4444
numerator of which is the gross income from such funds and such	4445
securities which are properly assigned to a regular place of	4446
business of the taxpayer within this state and the denominator of	4447
which is the gross income from all such funds and such securities.	4448

(iii) The amount of interest, dividends, gains, and other	4449
income from trading assets and activities, including, but not	4450
limited to, assets and activities in the matched book, in the	4451
arbitrage book, and foreign currency transactions, but excluding	4452
amounts described in division (F)(13)(a)(i) or (ii) of this	4453
section, attributable to this state and included in the numerator,	4454
is determined by multiplying the amount described in division	4455
(F)(13)(a)(ii) of this section by a fraction, the numerator of	4456
which is the gross income from such trading assets and activities	4457
which are properly assigned to a regular place of business of the	4458
taxpayer within this state and the denominator of which is the	4459
gross income from all such assets and activities.	4460

(iv) The amount of dividends received on the capital stock	4461
of, and the amount of interest received from loans and advances	4462
to, subsidiary corporations at least fifty-one per cent of whose	4463
common stock is owned by the reporting financial institution shall	4464
be allocated in and out of this state by the application of a	4465
ratio whose numerator is the sum of the net book value of the	4466
payor's real property owned in this state and the payor's tangible	4467
personal property owned in this state and whose denominator is the	4468
sum of the payor's real property owned wherever located and the	4469
payor's tangible personal property owned wherever located. For	4470
purposes of calculating this ratio, the taxpayer shall determine	4471
net book value in accordance with generally accepted accounting	4472
principles.	4473

(d) If the taxpayer elects or is required by the tax	4474
commissioner to use the method set forth in division (F)(13)(c) of	4475
this section, it shall use this method on all subsequent returns	4476
unless the taxpayer receives prior permission from the tax	4477
commissioner to use or the tax commissioner requires a different	4478
method.	4479

(e) The taxpayer shall have the burden of proving that an	4480
investment asset or activity or trading asset or activity was	4481
properly assigned to a regular place of business outside of this	4482
state by demonstrating that the day-to-day decisions regarding the	4483
asset or activity occurred at a regular place of business outside	4484
this state. Where the day-to-day decisions regarding an investment	4485
asset or activity or trading asset or activity occur at more than	4486
one regular place of business and one such regular place of	4487
business is in this state and one such regular place of business	4488
is outside this state such asset or activity shall be considered	4489
to be located at the regular place of business of the taxpayer	4490
where the investment or trading policies or guidelines with	4491
respect to the asset or activity are established. Unless the	4492
taxpayer demonstrates to the contrary, such policies and	4493
guidelines shall be presumed to be established at the commercial	4494
domicile of the taxpayer.	4495

(14) The numerator of the sales factor includes all other	4496
receipts if either:	4497

(a) The income-producing activity is performed solely in this	4498
state; or	4499

(b) The income-producing activity is performed both within	4500
and without this state and a greater proportion of the	4501
income-producing activity is performed within this state than in	4502
any other state, based on costs of performance.	4503

(G) A qualified institution may calculate the base upon which	4504
the fee provided for in division (D) of section 5733.06 of the	4505
Revised Code is determined for each tax year by multiplying the	4506
value of its issued and outstanding shares of stock determined	4507
under division (B) of this section by a single deposits fraction	4508
whose numerator is the deposits assigned to branches in this state	4509
and whose denominator is the deposits assigned to branches	4510
everywhere. Deposits shall be assigned to branches in the same	4511
manner in which the assignment is made for regulatory purposes. If	4512
the base calculated under this division is less than the base	4513
calculated under division (C) of this section, then the qualifying	4514
institution may elect to substitute the base calculated under this	4515
division for the base calculated under division (C) of this	4516
section. Such election may be made annually for each tax year on	4517
the corporate report. The election need not accompany the report;	4518
rather, the election may accompany a subsequently filed but timely	4519
application for refund, a subsequently filed but timely amended	4520
report, or a subsequently filed but timely petition for	4521
reassessment. The election is not irrevocable and it applies only	4522
to the specified tax year. Nothing in this division shall be	4523
construed to extend any statute of limitations set forth in this	4524
chapter.	4525

(H) If the apportionment provisions of this section do not	4526
fairly represent the extent of the taxpayer's business activity in	4527
this state, the taxpayer may petition for or the tax commissioner	4528
may require, in respect to all or any part of the taxpayer's	4529
business activity, if reasonable:	4530

(1) Separate accounting;

4531

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

4532

(3) The inclusion of one or more additional factors which	4533
will fairly represent the taxpayer's business activity in this	4534
state; or	4535

(4) The employment of any other method to effectuate an	4536
equitable allocation and apportionment of the taxpayer's value.	4537

(I) For tax year 2012 and every tax year thereafter, a	4538
qualified financial institution may calculate the base upon which	4539
the tax imposed by division (D) of section 5733.06 of the Revised	4540
Code is determined by multiplying the value of the qualified	4541
financial institution's issued and outstanding shares of stock as	4542
determined under division (B) of this section by the sales factor	4543
calculated in division (F) of this section instead of using the	4544
base calculated under division (C) of this section. An election	4545
under this division shall accompany the report or a subsequently	4546
filed but timely amended report.	4547

Sec. 5735.02. (A) A motor fuel dealer shall not receive, use,	4548
sell, or distribute any motor fuel or engage in business within	4549
this state unless the motor fuel dealer holds an unrevoked license	4550
issued by the tax commissioner to engage in such business. To	4551

(B) To procure sucha motor fuel dealer's license, every	4552
motor fuel dealer shall file with the commissioner an application	4553
verified under oath by the applicant and in such form as the	4554
commissioner prescribes, setting forth, in addition to such other	4555
information required by the commissioner, the following:	4556

(A)(1) The name under which the motor fuel dealer will	4557
transact business within the state;	4558

(B)(2) The location, including street number address, of its	4559
principal office or place of business within this state;	4560

(C)(3) The name and address of the owner, or the names and	4561
addresses of the partners if such motor fuel dealer is a	4562
partnership, or the names and addresses of the principal officers	4563
if such motor fuel dealer is a corporation or an association;	4564

(D)(4) If such motor fuel dealer is a corporation organized	4565
under the laws of another state, territory, or country, a	4566
certified copy of the certificate or license issued by the Ohio	4567
secretary of state showing that such corporation is authorized to	4568
transact business in this state;	4569

(E)(5) An agreement that the motor fuel dealer will assume	4570
the liability and will pay the tax on any shipment of motor fuel	4571
made into the state from any other state or foreign country and	4572
sold or caused to be sold by such motor fuel dealer for delivery	4573
to a person in this state who is not the holder of an unrevoked	4574
motor fuel dealer's license.	4575

An(C)(1) Except as provided in division (C)(2) of this	4576
section, an application for a license shall be accompanied by a	4577
bond, of the character stipulated and in the amount provided for	4578
in section 5735.03 of the Revised Code, which shall be filed with	4579
the commissioner.	4580

(2) The tax commissioner may exempt a motor fuel dealer from	4581
the requirements set forth in division (C)(1) of this section and	4582
section 5735.03 of the Revised Code if the motor fuel dealer only	4583
sells or distributes motor fuel upon which the motor fuel taxes	4584
imposed under this chapter have been paid or are not required to	4585
be paid by the motor fuel dealer.	4586

(D) If any application for a license to transact business as	4587
a motor fuel dealer in the state is filed by any person who has	4588
had any license previously canceled for cause by the tax	4589
commissioner; if the commissioner believes that such application	4590
is not filed in good faith or that such application is filed as a	4591
subterfuge by some person for the real person in interest who has	4592
previously had any license canceled for cause by the tax	4593
commissioner; or if the person has violated any provision of this	4594
chapter, then the tax commissioner, after a hearing, of which the	4595
applicant shall be given five days' notice in writing and at which	4596
said applicant shall have the right to appear in person or by	4597
counsel and present testimony, may refuse to issue to such person	4598
a license to transact business as a motor fuel dealer in the	4599
state.	4600

(E) When the application in proper form has been accepted for	4601
filing, and the bond accepted and approved, the commissioner shall	4602
issue to such motor fuel dealer a license to transact business as	4603
a motor fuel dealer in the state, subject to cancellation of such	4604
license as provided by law.	4605

(F) No person shall make a false or fraudulent statement on	4606
the application required by this section.	4607

Sec. 5735.03. EveryExcept as provided in division (C)(2) of	4608
section 5735.02 of the Revised Code, every motor fuel dealer shall	4609
file with the tax commissioner a surety bond of not less than five	4610
thousand dollars, but may be required by the tax commissioner to	4611
submit a surety bond equal to three months' average tax liability,	4612
on a form approved by and with a surety satisfactory to the	4613
commissioner, upon which the motor fuel dealer shall be the	4614
principal obligor and the state shall be the obligee, conditioned	4615
upon the prompt filing of true reports and the payment by the	4616
motor fuel dealer to the treasurer of state of all motor fuel	4617
excise taxes levied by the state, provided that after notice is	4618
received from the state by the surety of the delinquency of any	4619
taxes, if the surety pays the taxes within thirty days after the	4620
receipt of the notice no penalties or interest shall be charged	4621
against the surety. If the surety does not pay the taxes within	4622
thirty days, but does pay within ninety days from the date of the	4623
receipt of notice from the state by the surety, no penalty shall	4624
be assessed against the surety but the surety shall pay interest	4625
at the rate of six per cent per annum on the unpaid taxes from the	4626
date the taxes are due and payable. If the surety does not pay	4627
within ninety days then the surety shall be liable for interest	4628
and penalties, and the tax commissioner may cancel all bonds	4629
issued by the surety.	4630

The commissioner may increase or reduce the amount of the	4631
bond required to be filed by any licensed motor fuel dealer. If	4632
the commissioner finds that it is necessary to increase the bond	4633
to assure payment of the tax, the bond may be increased to an	4634
amount equal to three months/average liability or fifty thousand	4635
dollars, whichever is greater.	4636

If liability upon the bond thus filed by the motor fuel	4637
dealer with the commissioner is discharged or reduced, whether by	4638
judgment rendered, payment made, or otherwise, or if, in the	4639
opinion of the commissioner any surety on the bond theretofore	4640
given has become unsatisfactory or unacceptable, the commissioner	4641
may require the motor fuel dealer to file a new bond with	4642
satisfactory sureties in the same amount, and if a new bond is not	4643
filed the commissioner shall forthwith cancel the license of the	4644
motor fuel dealer. If a new bond is furnished by the motor fuel	4645
dealer, the commissioner shall cancel and surrender the bond of	4646
the motor fuel dealer for which the new bond is substituted.	4647

A surety on a bond furnished by a motor fuel dealer shall be	4648
released from all liability to the state accruing on the bond	4649
after the expiration of sixty days from the date upon which the	4650
surety lodges with the commissioner a written request to be	4651
released. The request shall not operate to release the surety from	4652
any liability already accrued, or which accrues before the	4653
expiration of the sixty-day period. The commissioner shall	4654
promptly on receipt of notice of the request notify the motor fuel	4655
dealer who furnished the bond and, unless the motor fuel dealer on	4656
or before the expiration of the sixty-day period files with the	4657
commissioner a new bond with a surety satisfactory to the	4658
commissioner in the amount and form provided in this section, the	4659
commissioner shall forthwith cancel the license of the motor fuel	4660
dealer. If the new bond is furnished by said motor fuel dealer,	4661
the commissioner shall cancel and surrender the bond of the motor	4662
fuel dealer for which the new bond is substituted.	4663

The commissioner, in lieu of any surety bond required by this	4664
section, may accept a deposit by a motor fuel dealer of cash. Any	4665
cash thus accepted shall be deposited with the treasurer of state	4666
to be held by the treasurer of state, in the same manner as other	4667
cash required to be deposited with the treasurer of state under	4668
the laws of the state, for the account of such motor fuel dealer	4669
and subject to any lawful claim of the state for any excise tax	4670
upon motor fuel, and penalties and interest thereon levied by the	4671
laws of this state. The state shall have a lien upon cash thus	4672
deposited for the amount of any motor fuel excise taxes and	4673
penalty and interest due to the state from the motor fuel dealer	4674
in whose behalf they were deposited. The amount of cash to be thus	4675
accepted shall in all respects be determined in the same manner as	4676
provided in this section for the amount of surety bonds. Any cash	4677
deposited shall be subject to levy upon execution to satisfy any	4678
judgment secured in any action by the state to recover any motor	4679
fuel excise taxes, and penalties and interest found to be due to	4680
the state from such motor fuel dealer. The cash shall be released	4681
by the treasurer of state upon certificate of the commissioner	4682
that the license of the motor fuel dealer in whose behalf they	4683
have been deposited has been canceled or that other security has	4684
been accepted in lieu thereof, and that the state asserts no claim	4685
thereto.	4686

Sec. 5735.35.  (A)(1) If any corporation or business trust	4687
person, regardless of organizational form, required to file	4688
reports and to remit taxes imposed under this chapter fails for	4689
any reason to file such reports or pay such taxes, any employees	4690
of the corporation or business trustperson having control or	4691
supervision of, or charged with the responsibility of, filing	4692
reports and making payments, or any officers or trustees of the	4693
corporation or business trustperson responsible for the execution	4694
of the corporation's or business trust'sperson's fiscal	4695
responsibilities, are personally liable for the unpaid liability	4696
resulting from the failure to file such reports or pay such taxes.	4697

(2) The dissolution, termination, or bankruptcy of a	4698
corporation or business trustperson shall not discharge a	4699
responsible officer's, shareholder's, member's, manager's,	4700
employee's, or trustee's liability for failure of the person to	4701
file reports or remit taxes. The sum due for the liability may be	4702
collected by assessment in the manner provided in sections 5735.12	4703
and 5735.121 of the Revised Code.	4704

(B) If more than one personindividual is personally liable	4705
under this section for the unpaid tax of a corporation or business	4706
trustperson, then the liability of all such individuals shall be	4707
joint and several.	4708

Sec. 5739.01.  As used in this chapter:

4709

(A) "Person" includes individuals, receivers, assignees,	4710
trustees in bankruptcy, estates, firms, partnerships,	4711
associations, joint-stock companies, joint ventures, clubs,	4712
societies, corporations, the state and its political subdivisions,	4713
and combinations of individuals of any form.	4714

(B) "Sale" and "selling" include all of the following	4715
transactions for a consideration in any manner, whether absolutely	4716
or conditionally, whether for a price or rental, in money or by	4717
exchange, and by any means whatsoever:	4718

(1) All transactions by which title or possession, or both,	4719
of tangible personal property, is or is to be transferred, or a	4720
license to use or consume tangible personal property is or is to	4721
be granted;	4722

(2) All transactions by which lodging by a hotel is or is to	4723
be furnished to transient guests;	4724

(3) All transactions by which:

4725

(a) An item of tangible personal property is or is to be	4726
repaired, except property, the purchase of which would not be	4727
subject to the tax imposed by section 5739.02 of the Revised Code;	4728

(b) An item of tangible personal property is or is to be	4729
installed, except property, the purchase of which would not be	4730
subject to the tax imposed by section 5739.02 of the Revised Code	4731
or property that is or is to be incorporated into and will become	4732
a part of a production, transmission, transportation, or	4733
distribution system for the delivery of a public utility service;	4734

(c) The service of washing, cleaning, waxing, polishing, or	4735
painting a motor vehicle is or is to be furnished;	4736

(d) Until August 1, 2003, industrial laundry cleaning	4737
services are or are to be provided and, on and after August 1,	4738
2003, laundry and dry cleaning services are or are to be provided;	4739

(e) Automatic data processing, computer services, or	4740
electronic information services are or are to be provided for use	4741
in business when the true object of the transaction is the receipt	4742
by the consumer of automatic data processing, computer services,	4743
or electronic information services rather than the receipt of	4744
personal or professional services to which automatic data	4745
processing, computer services, or electronic information services	4746
are incidental or supplemental. Notwithstanding any other	4747
provision of this chapter, such transactions that occur between	4748
members of an affiliated group are not sales. An "affiliated	4749
group" means two or more persons related in such a way that one	4750
person owns or controls the business operation of another member	4751
of the group. In the case of corporations with stock, one	4752
corporation owns or controls another if it owns more than fifty	4753
per cent of the other corporation's common stock with voting	4754
rights.	4755

(f) Telecommunications service, including prepaid calling	4756
service, prepaid wireless calling service, or ancillary service,	4757
is or is to be provided, but not including coin-operated telephone	4758
service;	4759

(g) Landscaping and lawn care service is or is to be	4760
provided;	4761

(h) Private investigation and security service is or is to be	4762
provided;	4763

(i) Information services or tangible personal property is	4764
provided or ordered by means of a nine hundred telephone call;	4765

(j) Building maintenance and janitorial service is or is to	4766
be provided;	4767

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

4768

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

4769

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

4770

(n) Physical fitness facility service is or is to be	4771
provided;	4772

(o) Recreation and sports club service is or is to be	4773
provided;	4774

(p) On and after August 1, 2003, satellite broadcasting	4775
service is or is to be provided;	4776

(q) On and after August 1, 2003, personal care service is or	4777
is to be provided to an individual. As used in this division,	4778
"personal care service" includes skin care, the application of	4779
cosmetics, manicuring, pedicuring, hair removal, tattooing, body	4780
piercing, tanning, massage, and other similar services. "Personal	4781
care service" does not include a service provided by or on the	4782
order of a licensed physician or licensed chiropractor, or the	4783
cutting, coloring, or styling of an individual's hair.	4784

(r) On and after August 1, 2003, the transportation of	4785
persons by motor vehicle or aircraft is or is to be provided, when	4786
the transportation is entirely within this state, except for	4787
transportation provided by an ambulance service, by a transit bus,	4788
as defined in section 5735.01 of the Revised Code, and	4789
transportation provided by a citizen of the United States holding	4790
a certificate of public convenience and necessity issued under 49	4791
U.S.C. 41102;	4792

(s) On and after August 1, 2003, motor vehicle towing service	4793
is or is to be provided. As used in this division, "motor vehicle	4794
towing service" means the towing or conveyance of a wrecked,	4795
disabled, or illegally parked motor vehicle.	4796

(t) On and after August 1, 2003, snow removal service is or	4797
is to be provided. As used in this division, "snow removal	4798
service" means the removal of snow by any mechanized means, but	4799
does not include the providing of such service by a person that	4800
has less than five thousand dollars in sales of such service	4801
during the calendar year.	4802

(u) Electronic publishing service is or is to be provided to	4803
a consumer for use in business, except that such transactions	4804
occurring between members of an affiliated group, as defined in	4805
division (B)(3)(e) of this section, are not sales.	4806

(4) All transactions by which printed, imprinted,	4807
overprinted, lithographic, multilithic, blueprinted, photostatic,	4808
or other productions or reproductions of written or graphic matter	4809
are or are to be furnished or transferred;	4810

(5) The production or fabrication of tangible personal	4811
property for a consideration for consumers who furnish either	4812
directly or indirectly the materials used in the production of	4813
fabrication work; and include the furnishing, preparing, or	4814
serving for a consideration of any tangible personal property	4815
consumed on the premises of the person furnishing, preparing, or	4816
serving such tangible personal property. Except as provided in	4817
section 5739.03 of the Revised Code, a construction contract	4818
pursuant to which tangible personal property is or is to be	4819
incorporated into a structure or improvement on and becoming a	4820
part of real property is not a sale of such tangible personal	4821
property. The construction contractor is the consumer of such	4822
tangible personal property, provided that the sale and	4823
installation of carpeting, the sale and installation of	4824
agricultural land tile, the sale and erection or installation of	4825
portable grain bins, or the provision of landscaping and lawn care	4826
service and the transfer of property as part of such service is	4827
never a construction contract.	4828

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

4829

(a) "Agricultural land tile" means fired clay or concrete	4830
tile, or flexible or rigid perforated plastic pipe or tubing,	4831
incorporated or to be incorporated into a subsurface drainage	4832
system appurtenant to land used or to be used primarily in	4833
production by farming, agriculture, horticulture, or floriculture.	4834
The term does not include such materials when they are or are to	4835
be incorporated into a drainage system appurtenant to a building	4836
or structure even if the building or structure is used or to be	4837
used in such production.	4838

(b) "Portable grain bin" means a structure that is used or to	4839
be used by a person engaged in farming or agriculture to shelter	4840
the person's grain and that is designed to be disassembled without	4841
significant damage to its component parts.	4842

(6) All transactions in which all of the shares of stock of a	4843
closely held corporation are transferred, or an ownership interest	4844
in a pass-through entity, as defined in section 5733.04 of the	4845
Revised Code, is transferred, if the corporation or pass-through	4846
entity is not engaging in business and its entire assets consist	4847
of boats, planes, motor vehicles, or other tangible personal	4848
property operated primarily for the use and enjoyment of the	4849
shareholders or owners;	4850

(7) All transactions in which a warranty, maintenance or	4851
service contract, or similar agreement by which the vendor of the	4852
warranty, contract, or agreement agrees to repair or maintain the	4853
tangible personal property of the consumer is or is to be	4854
provided;	4855

(8) The transfer of copyrighted motion picture films used	4856
solely for advertising purposes, except that the transfer of such	4857
films for exhibition purposes is not a sale;	4858

(9) On and after August 1, 2003, all transactions by which	4859
tangible personal property is or is to be stored, except such	4860
property that the consumer of the storage holds for sale in the	4861
regular course of business;	4862

(10) All transactions in which "guaranteed auto protection"	4863
is provided whereby a person promises to pay to the consumer the	4864
difference between the amount the consumer receives from motor	4865
vehicle insurance and the amount the consumer owes to a person	4866
holding title to or a lien on the consumer's motor vehicle in the	4867
event the consumer's motor vehicle suffers a total loss under the	4868
terms of the motor vehicle insurance policy or is stolen and not	4869
recovered, if the protection and its price are included in the	4870
purchase or lease agreement;	4871

(11)(a) Except as provided in division (B)(11)(b) of this	4872
section, on and after October 1, 2009, all transactions by which	4873
health care services are paid for, reimbursed, provided,	4874
delivered, arranged for, or otherwise made available by a medicaid	4875
health insuring corporation pursuant to the corporation's contract	4876
with the state.	4877

(b) If the centers for medicare and medicaid services of the	4878
United States department of health and human services determines	4879
that the taxation of transactions described in division (B)(11)(a)	4880
of this section constitutes an impermissible health care-related	4881
tax under section 1903(w) of the "Social Security Act," 49 Stat.	4882
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations	4883
adopted thereunder, the director of job and family services shall	4884
notify the tax commissioner of that determination. Beginning with	4885
the first day of the month following that notification, the	4886
transactions described in division (B)(11)(a) of this section are	4887
not sales for the purposes of this chapter or Chapter 5741. of the	4888
Revised Code. The tax commissioner shall order that the collection	4889
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026,	4890
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code	4891
shall cease for transactions occurring on or after that date.	4892

Except as provided in this section, "sale" and "selling" do	4893
not include transfers of interest in leased property where the	4894
original lessee and the terms of the original lease agreement	4895
remain unchanged, or professional, insurance, or personal service	4896
transactions that involve the transfer of tangible personal	4897
property as an inconsequential element, for which no separate	4898
charges are made.	4899

(C) "Vendor" means the person providing the service or by	4900
whom the transfer effected or license given by a sale is or is to	4901
be made or given and, for sales described in division (B)(3)(i) of	4902
this section, the telecommunications service vendor that provides	4903
the nine hundred telephone service; if two or more persons are	4904
engaged in business at the same place of business under a single	4905
trade name in which all collections on account of sales by each	4906
are made, such persons shall constitute a single vendor.	4907

Physicians, dentists, hospitals, and veterinarians who are	4908
engaged in selling tangible personal property as received from	4909
others, such as eyeglasses, mouthwashes, dentifrices, or similar	4910
articles, are vendors. Veterinarians who are engaged in	4911
transferring to others for a consideration drugs, the dispensing	4912
of which does not require an order of a licensed veterinarian or	4913
physician under federal law, are vendors.	4914

(D)(1) "Consumer" means the person for whom the service is	4915
provided, to whom the transfer effected or license given by a sale	4916
is or is to be made or given, to whom the service described in	4917
division (B)(3)(f) or (i) of this section is charged, or to whom	4918
the admission is granted.	4919

(2) Physicians, dentists, hospitals, and blood banks operated	4920
by nonprofit institutions and persons licensed to practice	4921
veterinary medicine, surgery, and dentistry are consumers of all	4922
tangible personal property and services purchased by them in	4923
connection with the practice of medicine, dentistry, the rendition	4924
of hospital or blood bank service, or the practice of veterinary	4925
medicine, surgery, and dentistry. In addition to being consumers	4926
of drugs administered by them or by their assistants according to	4927
their direction, veterinarians also are consumers of drugs that	4928
under federal law may be dispensed only by or upon the order of a	4929
licensed veterinarian or physician, when transferred by them to	4930
others for a consideration to provide treatment to animals as	4931
directed by the veterinarian.	4932

(3) A person who performs a facility management, or similar	4933
service contract for a contractee is a consumer of all tangible	4934
personal property and services purchased for use in connection	4935
with the performance of such contract, regardless of whether title	4936
to any such property vests in the contractee. The purchase of such	4937
property and services is not subject to the exception for resale	4938
under division (E)(1) of this section.	4939

(4)(a) In the case of a person who purchases printed matter	4940
for the purpose of distributing it or having it distributed to the	4941
public or to a designated segment of the public, free of charge,	4942
that person is the consumer of that printed matter, and the	4943
purchase of that printed matter for that purpose is a sale.	4944

(b) In the case of a person who produces, rather than	4945
purchases, printed matter for the purpose of distributing it or	4946
having it distributed to the public or to a designated segment of	4947
the public, free of charge, that person is the consumer of all	4948
tangible personal property and services purchased for use or	4949
consumption in the production of that printed matter. That person	4950
is not entitled to claim exemption under division (B)(42)(f) of	4951
section 5739.02 of the Revised Code for any material incorporated	4952
into the printed matter or any equipment, supplies, or services	4953
primarily used to produce the printed matter.	4954

(c) The distribution of printed matter to the public or to a	4955
designated segment of the public, free of charge, is not a sale to	4956
the members of the public to whom the printed matter is	4957
distributed or to any persons who purchase space in the printed	4958
matter for advertising or other purposes.	4959

(5) A person who makes sales of any of the services listed in	4960
division (B)(3) of this section is the consumer of any tangible	4961
personal property used in performing the service. The purchase of	4962
that property is not subject to the resale exception under	4963
division (E)(1) of this section.	4964

(6) A person who engages in highway transportation for hire	4965
is the consumer of all packaging materials purchased by that	4966
person and used in performing the service, except for packaging	4967
materials sold by such person in a transaction separate from the	4968
service.	4969

(7) In the case of a transaction for health care services	4970
under division (B)(11) of this section, a medicaid health insuring	4971
corporation is the consumer of such services. The purchase of such	4972
services by a medicaid health insuring corporation is not subject	4973
to the exception for resale under division (E)(1) of this section	4974
or to the exemptions provided under divisions (B)(12), (18), (19),	4975
and (22) of section 5739.02 of the Revised Code.	4976

(E) "Retail sale" and "sales at retail" include all sales,	4977
except those in which the purpose of the consumer is to resell the	4978
thing transferred or benefit of the service provided, by a person	4979
engaging in business, in the form in which the same is, or is to	4980
be, received by the person.	4981

(F) "Business" includes any activity engaged in by any person	4982
with the object of gain, benefit, or advantage, either direct or	4983
indirect. "Business" does not include the activity of a person in	4984
managing and investing the person's own funds.	4985

(G) "Engaging in business" means commencing, conducting, or	4986
continuing in business, and liquidating a business when the	4987
liquidator thereof holds itself out to the public as conducting	4988
such business. Making a casual sale is not engaging in business.	4989

(H)(1)(a) "Price," except as provided in divisions (H)(2),	4990
(3), and (4) of this section, means the total amount of	4991
consideration, including cash, credit, property, and services, for	4992
which tangible personal property or services are sold, leased, or	4993
rented, valued in money, whether received in money or otherwise,	4994
without any deduction for any of the following:	4995

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

4996

(ii) The cost of materials used, labor or service costs,	4997
interest, losses, all costs of transportation to the vendor, all	4998
taxes imposed on the vendor, including the tax imposed under	4999
Chapter 5751. of the Revised Code, and any other expense of the	5000
vendor;	5001

(iii) Charges by the vendor for any services necessary to	5002
complete the sale;	5003

(iv) On and after August 1, 2003, delivery charges. As used	5004
in this division, "delivery charges" means charges by the vendor	5005
for preparation and delivery to a location designated by the	5006
consumer of tangible personal property or a service, including	5007
transportation, shipping, postage, handling, crating, and packing.	5008

(v) Installation charges;

5009

(vi) Credit for any trade-in.

5010

(b) "Price" includes consideration received by the vendor	5011
from a third party, if the vendor actually receives the	5012
consideration from a party other than the consumer, and the	5013
consideration is directly related to a price reduction or discount	5014
on the sale; the vendor has an obligation to pass the price	5015
reduction or discount through to the consumer; the amount of the	5016
consideration attributable to the sale is fixed and determinable	5017
by the vendor at the time of the sale of the item to the consumer;	5018
and one of the following criteria is met:	5019

(i) The consumer presents a coupon, certificate, or other	5020
document to the vendor to claim a price reduction or discount	5021
where the coupon, certificate, or document is authorized,	5022
distributed, or granted by a third party with the understanding	5023
that the third party will reimburse any vendor to whom the coupon,	5024
certificate, or document is presented;	5025

(ii) The consumer identifies the consumer's self to the	5026
seller as a member of a group or organization entitled to a price	5027
reduction or discount. A preferred customer card that is available	5028
to any patron does not constitute membership in such a group or	5029
organization.	5030

(iii) The price reduction or discount is identified as a	5031
third party price reduction or discount on the invoice received by	5032
the consumer, or on a coupon, certificate, or other document	5033
presented by the consumer.	5034

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

5035

(i) Discounts, including cash, term, or coupons that are not	5036
reimbursed by a third party that are allowed by a vendor and taken	5037
by a consumer on a sale;	5038

(ii) Interest, financing, and carrying charges from credit	5039
extended on the sale of tangible personal property or services, if	5040
the amount is separately stated on the invoice, bill of sale, or	5041
similar document given to the purchaser;	5042

(iii) Any taxes legally imposed directly on the consumer that	5043
are separately stated on the invoice, bill of sale, or similar	5044
document given to the consumer. For the purpose of this division,	5045
the tax imposed under Chapter 5751. of the Revised Code is not a	5046
tax directly on the consumer, even if the tax or a portion thereof	5047
is separately stated.	5048

(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this	5049
section, any discount allowed by an automobile manufacturer to its	5050
employee, or to the employee of a supplier, on the purchase of a	5051
new motor vehicle from a new motor vehicle dealer in this state.	5052

(v) The dollar value of a gift card that is not sold by a	5053
vendor or purchased by a consumer and that is redeemed by the	5054
consumer in purchasing tangible personal property or services if	5055
the vendor is not reimbursed and does not receive compensation	5056
from a third party to cover all or part of the gift card value.	5057
For the purposes of this division, a gift card is not sold by a	5058
vendor or purchased by a consumer if it is distributed pursuant to	5059
an awards, loyalty, or promotional program. Past and present	5060
purchases of tangible personal property or services by the	5061
consumer shall not be treated as consideration exchanged for a	5062
gift card.	5063

(2) In the case of a sale of any new motor vehicle by a new	5064
motor vehicle dealer, as defined in section 4517.01 of the Revised	5065
Code, in which another motor vehicle is accepted by the dealer as	5066
part of the consideration received, "price" has the same meaning	5067
as in division (H)(1) of this section, reduced by the credit	5068
afforded the consumer by the dealer for the motor vehicle received	5069
in trade.	5070

(3) In the case of a sale of any watercraft or outboard motor	5071
by a watercraft dealer licensed in accordance with section	5072
1547.543 of the Revised Code, in which another watercraft,	5073
watercraft and trailer, or outboard motor is accepted by the	5074
dealer as part of the consideration received, "price" has the same	5075
meaning as in division (H)(1) of this section, reduced by the	5076
credit afforded the consumer by the dealer for the watercraft,	5077
watercraft and trailer, or outboard motor received in trade. As	5078
used in this division, "watercraft" includes an outdrive unit	5079
attached to the watercraft.	5080

(4) In the case of transactions for health care services	5081
under division (B)(11) of this section, "price" means the amount	5082
of managed care premiums received each month by a medicaid health	5083
insuring corporation.	5084

(I) "Receipts" means the total amount of the prices of the	5085
sales of vendors, provided that the dollar value of gift cards	5086
distributed pursuant to an awards, loyalty, or promotional	5087
program, and cash discounts allowed and taken on sales at the time	5088
they are consummated are not included, minus any amount deducted	5089
as a bad debt pursuant to section 5739.121 of the Revised Code.	5090
"Receipts" does not include the sale price of property returned or	5091
services rejected by consumers when the full sale price and tax	5092
are refunded either in cash or by credit.	5093

(J) "Place of business" means any location at which a person	5094
engages in business.	5095

(K) "Premises" includes any real property or portion thereof	5096
upon which any person engages in selling tangible personal	5097
property at retail or making retail sales and also includes any	5098
real property or portion thereof designated for, or devoted to,	5099
use in conjunction with the business engaged in by such person.	5100

(L) "Casual sale" means a sale of an item of tangible	5101
personal property that was obtained by the person making the sale,	5102
through purchase or otherwise, for the person's own use and was	5103
previously subject to any state's taxing jurisdiction on its sale	5104
or use, and includes such items acquired for the seller's use that	5105
are sold by an auctioneer employed directly by the person for such	5106
purpose, provided the location of such sales is not the	5107
auctioneer's permanent place of business. As used in this	5108
division, "permanent place of business" includes any location	5109
where such auctioneer has conducted more than two auctions during	5110
the year.	5111

(M) "Hotel" means every establishment kept, used, maintained,	5112
advertised, or held out to the public to be a place where sleeping	5113
accommodations are offered to guests, in which five or more rooms	5114
are used for the accommodation of such guests, whether the rooms	5115
are in one or several structures, except as otherwise provided in	5116
division (G) of section 5739.09 of the Revised Code.	5117

(N) "Transient guests" means persons occupying a room or	5118
rooms for sleeping accommodations for less than thirty consecutive	5119
days.	5120

(O) "Making retail sales" means the effecting of transactions	5121
wherein one party is obligated to pay the price and the other	5122
party is obligated to provide a service or to transfer title to or	5123
possession of the item sold. "Making retail sales" does not	5124
include the preliminary acts of promoting or soliciting the retail	5125
sales, other than the distribution of printed matter which	5126
displays or describes and prices the item offered for sale, nor	5127
does it include delivery of a predetermined quantity of tangible	5128
personal property or transportation of property or personnel to or	5129
from a place where a service is performed, regardless of whether	5130
the vendor is a delivery vendor.	5131

(P) "Used directly in the rendition of a public utility	5132
service" means that property that is to be incorporated into and	5133
will become a part of the consumer's production, transmission,	5134
transportation, or distribution system and that retains its	5135
classification as tangible personal property after such	5136
incorporation; fuel or power used in the production, transmission,	5137
transportation, or distribution system; and tangible personal	5138
property used in the repair and maintenance of the production,	5139
transmission, transportation, or distribution system, including	5140
only such motor vehicles as are specially designed and equipped	5141
for such use. Tangible personal property and services used	5142
primarily in providing highway transportation for hire are not	5143
used directly in the rendition of a public utility service. In	5144
this definition, "public utility" includes a citizen of the United	5145
States holding, and required to hold, a certificate of public	5146
convenience and necessity issued under 49 U.S.C. 41102.	5147

(Q) "Refining" means removing or separating a desirable	5148
product from raw or contaminated materials by distillation or	5149
physical, mechanical, or chemical processes.	5150

(R) "Assembly" and "assembling" mean attaching or fitting	5151
together parts to form a product, but do not include packaging a	5152
product.	5153

(S) "Manufacturing operation" means a process in which	5154
materials are changed, converted, or transformed into a different	5155
state or form from which they previously existed and includes	5156
refining materials, assembling parts, and preparing raw materials	5157
and parts by mixing, measuring, blending, or otherwise committing	5158
such materials or parts to the manufacturing process.	5159
"Manufacturing operation" does not include packaging.	5160

(T) "Fiscal officer" means, with respect to a regional	5161
transit authority, the secretary-treasurer thereof, and with	5162
respect to a county that is a transit authority, the fiscal	5163
officer of the county transit board if one is appointed pursuant	5164
to section 306.03 of the Revised Code or the county auditor if the	5165
board of county commissioners operates the county transit system.	5166

(U) "Transit authority" means a regional transit authority	5167
created pursuant to section 306.31 of the Revised Code or a county	5168
in which a county transit system is created pursuant to section	5169
306.01 of the Revised Code. For the purposes of this chapter, a	5170
transit authority must extend to at least the entire area of a	5171
single county. A transit authority that includes territory in more	5172
than one county must include all the area of the most populous	5173
county that is a part of such transit authority. County population	5174
shall be measured by the most recent census taken by the United	5175
States census bureau.	5176

(V) "Legislative authority" means, with respect to a regional	5177
transit authority, the board of trustees thereof, and with respect	5178
to a county that is a transit authority, the board of county	5179
commissioners.	5180

(W) "Territory of the transit authority" means all of the	5181
area included within the territorial boundaries of a transit	5182
authority as they from time to time exist. Such territorial	5183
boundaries must at all times include all the area of a single	5184
county or all the area of the most populous county that is a part	5185
of such transit authority. County population shall be measured by	5186
the most recent census taken by the United States census bureau.	5187

(X) "Providing a service" means providing or furnishing	5188
anything described in division (B)(3) of this section for	5189
consideration.	5190

(Y)(1)(a) "Automatic data processing" means processing of	5191
others' data, including keypunching or similar data entry services	5192
together with verification thereof, or providing access to	5193
computer equipment for the purpose of processing data.	5194

(b) "Computer services" means providing services consisting	5195
of specifying computer hardware configurations and evaluating	5196
technical processing characteristics, computer programming, and	5197
training of computer programmers and operators, provided in	5198
conjunction with and to support the sale, lease, or operation of	5199
taxable computer equipment or systems.	5200

(c) "Electronic information services" means providing access	5201
to computer equipment by means of telecommunications equipment for	5202
the purpose of either of the following:	5203

(i) Examining or acquiring data stored in or accessible to	5204
the computer equipment;	5205

(ii) Placing data into the computer equipment to be retrieved	5206
by designated recipients with access to the computer equipment.	5207

For transactions occurring on or after the effective date of	5208
the amendment of this section by H.B. 157 of the 127th general	5209
assembly, December 21, 2007, "electronic information services"	5210
does not include electronic publishing as defined in division	5211
(LLL) of this section.	5212

(d) "Automatic data processing, computer services, or	5213
electronic information services" shall not include personal or	5214
professional services.	5215

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	5216
section, "personal and professional services" means all services	5217
other than automatic data processing, computer services, or	5218
electronic information services, including but not limited to:	5219

(a) Accounting and legal services such as advice on tax	5220
matters, asset management, budgetary matters, quality control,	5221
information security, and auditing and any other situation where	5222
the service provider receives data or information and studies,	5223
alters, analyzes, interprets, or adjusts such material;	5224

(b) Analyzing business policies and procedures;

5225

(c) Identifying management information needs;

5226

(d) Feasibility studies, including economic and technical	5227
analysis of existing or potential computer hardware or software	5228
needs and alternatives;	5229

(e) Designing policies, procedures, and custom software for	5230
collecting business information, and determining how data should	5231
be summarized, sequenced, formatted, processed, controlled, and	5232
reported so that it will be meaningful to management;	5233

(f) Developing policies and procedures that document how	5234
business events and transactions are to be authorized, executed,	5235
and controlled;	5236

(g) Testing of business procedures;

5237

(h) Training personnel in business procedure applications;

5238

(i) Providing credit information to users of such information	5239
by a consumer reporting agency, as defined in the "Fair Credit	5240
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or	5241
as hereafter amended, including but not limited to gathering,	5242
organizing, analyzing, recording, and furnishing such information	5243
by any oral, written, graphic, or electronic medium;	5244

(j) Providing debt collection services by any oral, written,	5245
graphic, or electronic means.	5246

The services listed in divisions (Y)(2)(a) to (j) of this	5247
section are not automatic data processing or computer services.	5248

(Z) "Highway transportation for hire" means the	5249
transportation of personal property belonging to others for	5250
consideration by any of the following:	5251

(1) The holder of a permit or certificate issued by this	5252
state or the United States authorizing the holder to engage in	5253
transportation of personal property belonging to others for	5254
consideration over or on highways, roadways, streets, or any	5255
similar public thoroughfare;	5256

(2) A person who engages in the transportation of personal	5257
property belonging to others for consideration over or on	5258
highways, roadways, streets, or any similar public thoroughfare	5259
but who could not have engaged in such transportation on December	5260
11, 1985, unless the person was the holder of a permit or	5261
certificate of the types described in division (Z)(1) of this	5262
section;	5263

(3) A person who leases a motor vehicle to and operates it	5264
for a person described by division (Z)(1) or (2) of this section.	5265

(AA)(1) "Telecommunications service" means the electronic	5266
transmission, conveyance, or routing of voice, data, audio, video,	5267
or any other information or signals to a point, or between or	5268
among points. "Telecommunications service" includes such	5269
transmission, conveyance, or routing in which computer processing	5270
applications are used to act on the form, code, or protocol of the	5271
content for purposes of transmission, conveyance, or routing	5272
without regard to whether the service is referred to as voice-over	5273
internet protocol service or is classified by the federal	5274
communications commission as enhanced or value-added.	5275
"Telecommunications service" does not include any of the	5276
following:	5277

(a) Data processing and information services that allow data	5278
to be generated, acquired, stored, processed, or retrieved and	5279
delivered by an electronic transmission to a consumer where the	5280
consumer's primary purpose for the underlying transaction is the	5281
processed data or information;	5282

(b) Installation or maintenance of wiring or equipment on a	5283
customer's premises;	5284

(c) Tangible personal property;

5285

(d) Advertising, including directory advertising;

5286

(e) Billing and collection services provided to third	5287
parties;	5288

(f) Internet access service;

5289

(g) Radio and television audio and video programming	5290
services, regardless of the medium, including the furnishing of	5291
transmission, conveyance, and routing of such services by the	5292
programming service provider. Radio and television audio and video	5293
programming services include, but are not limited to, cable	5294
service, as defined in 47 U.S.C. 522(6), and audio and video	5295
programming services delivered by commercial mobile radio service	5296
providers, as defined in 47 C.F.R. 20.3;	5297

(h) Ancillary service;

5298

(i) Digital products delivered electronically, including	5299
software, music, video, reading materials, or ring tones.	5300

(2) "Ancillary service" means a service that is associated	5301
with or incidental to the provision of telecommunications service,	5302
including conference bridging service, detailed telecommunications	5303
billing service, directory assistance, vertical service, and voice	5304
mail service. As used in this division:	5305

(a) "Conference bridging service" means an ancillary service	5306
that links two or more participants of an audio or video	5307
conference call, including providing a telephone number.	5308
"Conference bridging service" does not include telecommunications	5309
services used to reach the conference bridge.	5310

(b) "Detailed telecommunications billing service" means an	5311
ancillary service of separately stating information pertaining to	5312
individual calls on a customer's billing statement.	5313

(c) "Directory assistance" means an ancillary service of	5314
providing telephone number or address information.	5315

(d) "Vertical service" means an ancillary service that is	5316
offered in connection with one or more telecommunications	5317
services, which offers advanced calling features that allow	5318
customers to identify callers and manage multiple calls and call	5319
connections, including conference bridging service.	5320

(e) "Voice mail service" means an ancillary service that	5321
enables the customer to store, send, or receive recorded messages.	5322
"Voice mail service" does not include any vertical services that	5323
the customer may be required to have in order to utilize the voice	5324
mail service.	5325

(3) "900 service" means an inbound toll telecommunications	5326
service purchased by a subscriber that allows the subscriber's	5327
customers to call in to the subscriber's prerecorded announcement	5328
or live service, and which is typically marketed under the name	5329
"900" service and any subsequent numbers designated by the federal	5330
communications commission. "900 service" does not include the	5331
charge for collection services provided by the seller of the	5332
telecommunications service to the subscriber, or services or	5333
products sold by the subscriber to the subscriber's customer.	5334

(4) "Prepaid calling service" means the right to access	5335
exclusively telecommunications services, which must be paid for in	5336
advance and which enables the origination of calls using an access	5337
number or authorization code, whether manually or electronically	5338
dialed, and that is sold in predetermined units ofor dollars of	5339
which the number declines with use in a known amount.	5340

(5) "Prepaid wireless calling service" means a	5341
telecommunications service that provides the right to utilize	5342
mobile telecommunications service as well as other	5343
non-telecommunications services, including the download of digital	5344
products delivered electronically, and content and ancillary	5345
services, that must be paid for in advance and that is sold in	5346
predetermined units ofor dollars of which the number declines	5347
with use in a known amount.	5348

(6) "Value-added non-voice data service" means a	5349
telecommunications service in which computer processing	5350
applications are used to act on the form, content, code, or	5351
protocol of the information or data primarily for a purpose other	5352
than transmission, conveyance, or routing.	5353

(7) "Coin-operated telephone service" means a	5354
telecommunications service paid for by inserting money into a	5355
telephone accepting direct deposits of money to operate.	5356

(8) "Customer" has the same meaning as in section 5739.034 of	5357
the Revised Code.	5358

(BB) "Laundry and dry cleaning services" means removing soil	5359
or dirt from towels, linens, articles of clothing, or other fabric	5360
items that belong to others and supplying towels, linens, articles	5361
of clothing, or other fabric items. "Laundry and dry cleaning	5362
services" does not include the provision of self-service	5363
facilities for use by consumers to remove soil or dirt from	5364
towels, linens, articles of clothing, or other fabric items.	5365

(CC) "Magazines distributed as controlled circulation	5366
publications" means magazines containing at least twenty-four	5367
pages, at least twenty-five per cent editorial content, issued at	5368
regular intervals four or more times a year, and circulated	5369
without charge to the recipient, provided that such magazines are	5370
not owned or controlled by individuals or business concerns which	5371
conduct such publications as an auxiliary to, and essentially for	5372
the advancement of the main business or calling of, those who own	5373
or control them.	5374

(DD) "Landscaping and lawn care service" means the services	5375
of planting, seeding, sodding, removing, cutting, trimming,	5376
pruning, mulching, aerating, applying chemicals, watering,	5377
fertilizing, and providing similar services to establish, promote,	5378
or control the growth of trees, shrubs, flowers, grass, ground	5379
cover, and other flora, or otherwise maintaining a lawn or	5380
landscape grown or maintained by the owner for ornamentation or	5381
other nonagricultural purpose. However, "landscaping and lawn care	5382
service" does not include the providing of such services by a	5383
person who has less than five thousand dollars in sales of such	5384
services during the calendar year.	5385

(EE) "Private investigation and security service" means the	5386
performance of any activity for which the provider of such service	5387
is required to be licensed pursuant to Chapter 4749. of the	5388
Revised Code, or would be required to be so licensed in performing	5389
such services in this state, and also includes the services of	5390
conducting polygraph examinations and of monitoring or overseeing	5391
the activities on or in, or the condition of, the consumer's home,	5392
business, or other facility by means of electronic or similar	5393
monitoring devices. "Private investigation and security service"	5394
does not include special duty services provided by off-duty police	5395
officers, deputy sheriffs, and other peace officers regularly	5396
employed by the state or a political subdivision.	5397

(FF) "Information services" means providing conversation,	5398
giving consultation or advice, playing or making a voice or other	5399
recording, making or keeping a record of the number of callers,	5400
and any other service provided to a consumer by means of a nine	5401
hundred telephone call, except when the nine hundred telephone	5402
call is the means by which the consumer makes a contribution to a	5403
recognized charity.	5404

(GG) "Research and development" means designing, creating, or	5405
formulating new or enhanced products, equipment, or manufacturing	5406
processes, and also means conducting scientific or technological	5407
inquiry and experimentation in the physical sciences with the goal	5408
of increasing scientific knowledge which may reveal the bases for	5409
new or enhanced products, equipment, or manufacturing processes.	5410

(HH) "Qualified research and development equipment" means	5411
capitalized tangible personal property, and leased personal	5412
property that would be capitalized if purchased, used by a person	5413
primarily to perform research and development. Tangible personal	5414
property primarily used in testing, as defined in division (A)(4)	5415
of section 5739.011 of the Revised Code, or used for recording or	5416
storing test results, is not qualified research and development	5417
equipment unless such property is primarily used by the consumer	5418
in testing the product, equipment, or manufacturing process being	5419
created, designed, or formulated by the consumer in the research	5420
and development activity or in recording or storing such test	5421
results.	5422

(II) "Building maintenance and janitorial service" means	5423
cleaning the interior or exterior of a building and any tangible	5424
personal property located therein or thereon, including any	5425
services incidental to such cleaning for which no separate charge	5426
is made. However, "building maintenance and janitorial service"	5427
does not include the providing of such service by a person who has	5428
less than five thousand dollars in sales of such service during	5429
the calendar year.	5430

(JJ) "Employment service" means providing or supplying	5431
personnel, on a temporary or long-term basis, to perform work or	5432
labor under the supervision or control of another, when the	5433
personnel so provided or supplied receive their wages, salary, or	5434
other compensation from the provider or supplier of the employment	5435
service or from a third party that provided or supplied the	5436
personnel to the provider or supplier. "Employment service" does	5437
not include:	5438

(1) Acting as a contractor or subcontractor, where the	5439
personnel performing the work are not under the direct control of	5440
the purchaser.	5441

(2) Medical and health care services.

5442

(3) Supplying personnel to a purchaser pursuant to a contract	5443
of at least one year between the service provider and the	5444
purchaser that specifies that each employee covered under the	5445
contract is assigned to the purchaser on a permanent basis.	5446

(4) Transactions between members of an affiliated group, as	5447
defined in division (B)(3)(e) of this section.	5448

(5) Transactions where the personnel so provided or supplied	5449
by a provider or supplier to a purchaser of an employment service	5450
are then provided or supplied by that purchaser to a third party	5451
as an employment service, except "employment service" does include	5452
the transaction between that purchaser and the third party.	5453

(KK) "Employment placement service" means locating or finding	5454
employment for a person or finding or locating an employee to fill	5455
an available position.	5456

(LL) "Exterminating service" means eradicating or attempting	5457
to eradicate vermin infestations from a building or structure, or	5458
the area surrounding a building or structure, and includes	5459
activities to inspect, detect, or prevent vermin infestation of a	5460
building or structure.	5461

(MM) "Physical fitness facility service" means all	5462
transactions by which a membership is granted, maintained, or	5463
renewed, including initiation fees, membership dues, renewal fees,	5464
monthly minimum fees, and other similar fees and dues, by a	5465
physical fitness facility such as an athletic club, health spa, or	5466
gymnasium, which entitles the member to use the facility for	5467
physical exercise.	5468

(NN) "Recreation and sports club service" means all	5469
transactions by which a membership is granted, maintained, or	5470
renewed, including initiation fees, membership dues, renewal fees,	5471
monthly minimum fees, and other similar fees and dues, by a	5472
recreation and sports club, which entitles the member to use the	5473
facilities of the organization. "Recreation and sports club" means	5474
an organization that has ownership of, or controls or leases on a	5475
continuing, long-term basis, the facilities used by its members	5476
and includes an aviation club, gun or shooting club, yacht club,	5477
card club, swimming club, tennis club, golf club, country club,	5478
riding club, amateur sports club, or similar organization.	5479

(OO) "Livestock" means farm animals commonly raised for food,	5480
food production, or other agricultural purposes, including, but	5481
not limited to, cattle, sheep, goats, swine, poultry, and captive	5482
deer. "Livestock" does not include invertebrates, amphibians,	5483
reptiles, domestic pets, animals for use in laboratories or for	5484
exhibition, or other animals not commonly raised for food or food	5485
production.	5486

(PP) "Livestock structure" means a building or structure used	5487
exclusively for the housing, raising, feeding, or sheltering of	5488
livestock, and includes feed storage or handling structures and	5489
structures for livestock waste handling.	5490

(QQ) "Horticulture" means the growing, cultivation, and	5491
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	5492
and nursery stock. As used in this division, "nursery stock" has	5493
the same meaning as in section 927.51 of the Revised Code.	5494

(RR) "Horticulture structure" means a building or structure	5495
used exclusively for the commercial growing, raising, or	5496
overwintering of horticultural products, and includes the area	5497
used for stocking, storing, and packing horticultural products	5498
when done in conjunction with the production of those products.	5499

(SS) "Newspaper" means an unbound publication bearing a title	5500
or name that is regularly published, at least as frequently as	5501
biweekly, and distributed from a fixed place of business to the	5502
public in a specific geographic area, and that contains a	5503
substantial amount of news matter of international, national, or	5504
local events of interest to the general public.	5505

(TT) "Professional racing team" means a person that employs	5506
at least twenty full-time employees for the purpose of conducting	5507
a motor vehicle racing business for profit. The person must	5508
conduct the business with the purpose of racing one or more motor	5509
racing vehicles in at least ten competitive professional racing	5510
events each year that comprise all or part of a motor racing	5511
series sanctioned by one or more motor racing sanctioning	5512
organizations. A "motor racing vehicle" means a vehicle for which	5513
the chassis, engine, and parts are designed exclusively for motor	5514
racing, and does not include a stock or production model vehicle	5515
that may be modified for use in racing. For the purposes of this	5516
division:	5517

(1) A "competitive professional racing event" is a motor	5518
vehicle racing event sanctioned by one or more motor racing	5519
sanctioning organizations, at which aggregate cash prizes in	5520
excess of eight hundred thousand dollars are awarded to the	5521
competitors.	5522

(2) "Full-time employee" means an individual who is employed	5523
for consideration for thirty-five or more hours a week, or who	5524
renders any other standard of service generally accepted by custom	5525
or specified by contract as full-time employment.	5526

(UU)(1) "Lease" or "rental" means any transfer of the	5527
possession or control of tangible personal property for a fixed or	5528
indefinite term, for consideration. "Lease" or "rental" includes	5529
future options to purchase or extend, and agreements described in	5530
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where	5531
the amount of consideration may be increased or decreased by	5532
reference to the amount realized upon the sale or disposition of	5533
the property. "Lease" or "rental" does not include:	5534

(a) A transfer of possession or control of tangible personal	5535
property under a security agreement or a deferred payment plan	5536
that requires the transfer of title upon completion of the	5537
required payments;	5538

(b) A transfer of possession or control of tangible personal	5539
property under an agreement that requires the transfer of title	5540
upon completion of required payments and payment of an option	5541
price that does not exceed the greater of one hundred dollars or	5542
one per cent of the total required payments;	5543

(c) Providing tangible personal property along with an	5544
operator for a fixed or indefinite period of time, if the operator	5545
is necessary for the property to perform as designed. For purposes	5546
of this division, the operator must do more than maintain,	5547
inspect, or set-up the tangible personal property.	5548

(2) "Lease" and "rental," as defined in division (UU) of this	5549
section, shall not apply to leases or rentals that exist before	5550
June 26, 2003.	5551

(3) "Lease" and "rental" have the same meaning as in division	5552
(UU)(1) of this section regardless of whether a transaction is	5553
characterized as a lease or rental under generally accepted	5554
accounting principles, the Internal Revenue Code, Title XIII of	5555
the Revised Code, or other federal, state, or local laws.	5556

(VV) "Mobile telecommunications service" has the same meaning	5557
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.	5558
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and,	5559
on and after August 1, 2003, includes related fees and ancillary	5560
services, including universal service fees, detailed billing	5561
service, directory assistance, service initiation, voice mail	5562
service, and vertical services, such as caller ID and three-way	5563
calling.	5564

(WW) "Certified service provider" has the same meaning as in	5565
section 5740.01 of the Revised Code.	5566

(XX) "Satellite broadcasting service" means the distribution	5567
or broadcasting of programming or services by satellite directly	5568
to the subscriber's receiving equipment without the use of ground	5569
receiving or distribution equipment, except the subscriber's	5570
receiving equipment or equipment used in the uplink process to the	5571
satellite, and includes all service and rental charges, premium	5572
channels or other special services, installation and repair	5573
service charges, and any other charges having any connection with	5574
the provision of the satellite broadcasting service.	5575

(YY) "Tangible personal property" means personal property	5576
that can be seen, weighed, measured, felt, or touched, or that is	5577
in any other manner perceptible to the senses. For purposes of	5578
this chapter and Chapter 5741. of the Revised Code, "tangible	5579
personal property" includes motor vehicles, electricity, water,	5580
gas, steam, and prewritten computer software.	5581

(ZZ) "Direct mail" means printed material delivered or	5582
distributed by United States mail or other delivery service to a	5583
mass audience or to addressees on a mailing list provided by the	5584
consumer or at the direction of the consumer when the cost of the	5585
items are not billed directly to the recipients. "Direct mail"	5586
includes tangible personal property supplied directly or	5587
indirectly by the consumer to the direct mail vendor for inclusion	5588
in the package containing the printed material. "Direct mail" does	5589
not include multiple items of printed material delivered to a	5590
single address.	5591

(AAA) "Computer" means an electronic device that accepts	5592
information in digital or similar form and manipulates it for a	5593
result based on a sequence of instructions.	5594

(BBB) "Computer software" means a set of coded instructions	5595
designed to cause a computer or automatic data processing	5596
equipment to perform a task.	5597

(CCC) "Delivered electronically" means delivery of computer	5598
software from the seller to the purchaser by means other than	5599
tangible storage media.	5600

(DDD) "Prewritten computer software" means computer software,	5601
including prewritten upgrades, that is not designed and developed	5602
by the author or other creator to the specifications of a specific	5603
purchaser. The combining of two or more prewritten computer	5604
software programs or prewritten portions thereof does not cause	5605
the combination to be other than prewritten computer software.	5606
"Prewritten computer software" includes software designed and	5607
developed by the author or other creator to the specifications of	5608
a specific purchaser when it is sold to a person other than the	5609
purchaser. If a person modifies or enhances computer software of	5610
which the person is not the author or creator, the person shall be	5611
deemed to be the author or creator only of such person's	5612
modifications or enhancements. Prewritten computer software or a	5613
prewritten portion thereof that is modified or enhanced to any	5614
degree, where such modification or enhancement is designed and	5615
developed to the specifications of a specific purchaser, remains	5616
prewritten computer software; provided, however, that where there	5617
is a reasonable, separately stated charge or an invoice or other	5618
statement of the price given to the purchaser for the modification	5619
or enhancement, the modification or enhancement shall not	5620
constitute prewritten computer software.	5621

(EEE)(1) "Food" means substances, whether in liquid,	5622
concentrated, solid, frozen, dried, or dehydrated form, that are	5623
sold for ingestion or chewing by humans and are consumed for their	5624
taste or nutritional value. "Food" does not include alcoholic	5625
beverages, dietary supplements, soft drinks, or tobacco.	5626

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

5627

(a) "Alcoholic beverages" means beverages that are suitable	5628
for human consumption and contain one-half of one per cent or more	5629
of alcohol by volume.	5630

(b) "Dietary supplements" means any product, other than	5631
tobacco, that is intended to supplement the diet and that is	5632
intended for ingestion in tablet, capsule, powder, softgel,	5633
gelcap, or liquid form, or, if not intended for ingestion in such	5634
a form, is not represented as conventional food for use as a sole	5635
item of a meal or of the diet; that is required to be labeled as a	5636
dietary supplement, identifiable by the "supplement facts" box	5637
found on the label, as required by 21 C.F.R. 101.36; and that	5638
contains one or more of the following dietary ingredients:	5639

(i) A vitamin;

5640

(ii) A mineral;

5641

(iii) An herb or other botanical;

5642

(iv) An amino acid;

5643

(v) A dietary substance for use by humans to supplement the	5644
diet by increasing the total dietary intake;	5645

(vi) A concentrate, metabolite, constituent, extract, or	5646
combination of any ingredient described in divisions	5647
(EEE)(2)(b)(i) to (v) of this section.	5648

(c) "Soft drinks" means nonalcoholic beverages that contain	5649
natural or artificial sweeteners. "Soft drinks" does not include	5650
beverages that contain milk or milk products, soy, rice, or	5651
similar milk substitutes, or that contains greater than fifty per	5652
cent vegetable or fruit juice by volume.	5653

(d) "Tobacco" means cigarettes, cigars, chewing or pipe	5654
tobacco, or any other item that contains tobacco.	5655

(FFF) "Drug" means a compound, substance, or preparation, and	5656
any component of a compound, substance, or preparation, other than	5657
food, dietary supplements, or alcoholic beverages that is	5658
recognized in the official United States pharmacopoeia, official	5659
homeopathic pharmacopoeia of the United States, or official	5660
national formulary, and supplements to them; is intended for use	5661
in the diagnosis, cure, mitigation, treatment, or prevention of	5662
disease; or is intended to affect the structure or any function of	5663
the body.	5664

(GGG) "Prescription" means an order, formula, or recipe	5665
issued in any form of oral, written, electronic, or other means of	5666
transmission by a duly licensed practitioner authorized by the	5667
laws of this state to issue a prescription.	5668

(HHH) "Durable medical equipment" means equipment, including	5669
repair and replacement parts for such equipment, that can	5670
withstand repeated use, is primarily and customarily used to serve	5671
a medical purpose, generally is not useful to a person in the	5672
absence of illness or injury, and is not worn in or on the body.	5673
"Durable medical equipment" does not include mobility enhancing	5674
equipment.	5675

(III) "Mobility enhancing equipment" means equipment,	5676
including repair and replacement parts for such equipment, that is	5677
primarily and customarily used to provide or increase the ability	5678
to move from one place to another and is appropriate for use	5679
either in a home or a motor vehicle, that is not generally used by	5680
persons with normal mobility, and that does not include any motor	5681
vehicle or equipment on a motor vehicle normally provided by a	5682
motor vehicle manufacturer. "Mobility enhancing equipment" does	5683
not include durable medical equipment.	5684

(JJJ) "Prosthetic device" means a replacement, corrective, or	5685
supportive device, including repair and replacement parts for the	5686
device, worn on or in the human body to artificially replace a	5687
missing portion of the body, prevent or correct physical deformity	5688
or malfunction, or support a weak or deformed portion of the body.	5689
As used in this division, "prosthetic device" does not include	5690
corrective eyeglasses, contact lenses, or dental prosthesis.	5691

(KKK)(1) "Fractional aircraft ownership program" means a	5692
program in which persons within an affiliated group sell and	5693
manage fractional ownership program aircraft, provided that at	5694
least one hundred airworthy aircraft are operated in the program	5695
and the program meets all of the following criteria:	5696

(a) Management services are provided by at least one program	5697
manager within an affiliated group on behalf of the fractional	5698
owners.	5699

(b) Each program aircraft is owned or possessed by at least	5700
one fractional owner.	5701

(c) Each fractional owner owns or possesses at least a	5702
one-sixteenth interest in at least one fixed-wing program	5703
aircraft.	5704

(d) A dry-lease aircraft interchange arrangement is in effect	5705
among all of the fractional owners.	5706

(e) Multi-year program agreements are in effect regarding the	5707
fractional ownership, management services, and dry-lease aircraft	5708
interchange arrangement aspects of the program.	5709

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

5710

(a) "Affiliated group" has the same meaning as in division	5711
(B)(3)(e) of this section.	5712

(b) "Fractional owner" means a person that owns or possesses	5713
at least a one-sixteenth interest in a program aircraft and has	5714
entered into the agreements described in division (KKK)(1)(e) of	5715
this section.	5716

(c) "Fractional ownership program aircraft" or "program	5717
aircraft" means a turbojet aircraft that is owned or possessed by	5718
a fractional owner and that has been included in a dry-lease	5719
aircraft interchange arrangement and agreement under divisions	5720
(KKK)(1)(d) and (e) of this section, or an aircraft a program	5721
manager owns or possesses primarily for use in a fractional	5722
aircraft ownership program.	5723

(d) "Management services" means administrative and aviation	5724
support services furnished under a fractional aircraft ownership	5725
program in accordance with a management services agreement under	5726
division (KKK)(1)(e) of this section, and offered by the program	5727
manager to the fractional owners, including, at a minimum, the	5728
establishment and implementation of safety guidelines; the	5729
coordination of the scheduling of the program aircraft and crews;	5730
program aircraft maintenance; program aircraft insurance; crew	5731
training for crews employed, furnished, or contracted by the	5732
program manager or the fractional owner; the satisfaction of	5733
record-keeping requirements; and the development and use of an	5734
operations manual and a maintenance manual for the fractional	5735
aircraft ownership program.	5736

(e) "Program manager" means the person that offers management	5737
services to fractional owners pursuant to a management services	5738
agreement under division (KKK)(1)(e) of this section.	5739

(LLL) "Electronic publishing" means providing access to one	5740
or more of the following primarily for business customers,	5741
including the federal government or a state government or a	5742
political subdivision thereof, to conduct research: news;	5743
business, financial, legal, consumer, or credit materials;	5744
editorials, columns, reader commentary, or features; photos or	5745
images; archival or research material; legal notices, identity	5746
verification, or public records; scientific, educational,	5747
instructional, technical, professional, trade, or other literary	5748
materials; or other similar information which has been gathered	5749
and made available by the provider to the consumer in an	5750
electronic format. Providing electronic publishing includes the	5751
functions necessary for the acquisition, formatting, editing,	5752
storage, and dissemination of data or information that is the	5753
subject of a sale.	5754

(MMM) "Medicaid health insuring corporation" means a health	5755
insuring corporation that holds a certificate of authority under	5756
Chapter 1751. of the Revised Code and is under contract with the	5757
department of job and family services pursuant to section 5111.17	5758
of the Revised Code.	5759

(NNN) "Managed care premium" means any premium, capitation,	5760
or other payment a medicaid health insuring corporation receives	5761
for providing or arranging for the provision of health care	5762
services to its members or enrollees residing in this state.	5763

(OOO) "Captive deer" means deer and other cervidae that have	5764
been legally acquired, or their offspring, that are privately	5765
owned for agricultural or farming purposes.	5766

(PPP) "Gift card" means a document, card, certificate, or	5767
other record, whether tangible or intangible, that may be redeemed	5768
by a consumer for a dollar value when making a purchase of	5769
tangible personal property or services.	5770

Sec. 5739.02.  For the purpose of providing revenue with	5771
which to meet the needs of the state, for the use of the general	5772
revenue fund of the state, for the purpose of securing a thorough	5773
and efficient system of common schools throughout the state, for	5774
the purpose of affording revenues, in addition to those from	5775
general property taxes, permitted under constitutional	5776
limitations, and from other sources, for the support of local	5777
governmental functions, and for the purpose of reimbursing the	5778
state for the expense of administering this chapter, an excise tax	5779
is hereby levied on each retail sale made in this state.	5780

(A)(1) The tax shall be collected as provided in section	5781
5739.025 of the Revised Code. The rate of the tax shall be five	5782
and one-half per cent. The tax applies and is collectible when the	5783
sale is made, regardless of the time when the price is paid or	5784
delivered.	5785

(2) In the case of the lease or rental, with a fixed term of	5786
more than thirty days or an indefinite term with a minimum period	5787
of more than thirty days, of any motor vehicles designed by the	5788
manufacturer to carry a load of not more than one ton, watercraft,	5789
outboard motor, or aircraft, or of any tangible personal property,	5790
other than motor vehicles designed by the manufacturer to carry a	5791
load of more than one ton, to be used by the lessee or renter	5792
primarily for business purposes, the tax shall be collected by the	5793
vendor at the time the lease or rental is consummated and shall be	5794
calculated by the vendor on the basis of the total amount to be	5795
paid by the lessee or renter under the lease agreement. If the	5796
total amount of the consideration for the lease or rental includes	5797
amounts that are not calculated at the time the lease or rental is	5798
executed, the tax shall be calculated and collected by the vendor	5799
at the time such amounts are billed to the lessee or renter. In	5800
the case of an open-end lease or rental, the tax shall be	5801
calculated by the vendor on the basis of the total amount to be	5802
paid during the initial fixed term of the lease or rental, and for	5803
each subsequent renewal period as it comes due. As used in this	5804
division, "motor vehicle" has the same meaning as in section	5805
4501.01 of the Revised Code, and "watercraft" includes an outdrive	5806
unit attached to the watercraft.	5807

A lease with a renewal clause and a termination penalty or	5808
similar provision that applies if the renewal clause is not	5809
exercised is presumed to be a sham transaction. In such a case,	5810
the tax shall be calculated and paid on the basis of the entire	5811
length of the lease period, including any renewal periods, until	5812
the termination penalty or similar provision no longer applies.	5813
The taxpayer shall bear the burden, by a preponderance of the	5814
evidence, that the transaction or series of transactions is not a	5815
sham transaction.	5816

(3) Except as provided in division (A)(2) of this section, in	5817
the case of a sale, the price of which consists in whole or in	5818
part of the lease or rental of tangible personal property, the tax	5819
shall be measured by the installments of that lease or rental.	5820

(4) In the case of a sale of a physical fitness facility	5821
service or recreation and sports club service, the price of which	5822
consists in whole or in part of a membership for the receipt of	5823
the benefit of the service, the tax applicable to the sale shall	5824
be measured by the installments thereof.	5825

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

5826

(1) Sales to the state or any of its political subdivisions,	5827
or to any other state or its political subdivisions if the laws of	5828
that state exempt from taxation sales made to this state and its	5829
political subdivisions;	5830

(2) Sales of food for human consumption off the premises	5831
where sold;	5832

(3) Sales of food sold to students only in a cafeteria,	5833
dormitory, fraternity, or sorority maintained in a private,	5834
public, or parochial school, college, or university;	5835

(4) Sales of newspapers and of magazine subscriptions and	5836
sales or transfers of magazines distributed as controlled	5837
circulation publications;	5838

(5) The furnishing, preparing, or serving of meals without	5839
charge by an employer to an employee provided the employer records	5840
the meals as part compensation for services performed or work	5841
done;	5842

(6) Sales of motor fuel upon receipt, use, distribution, or	5843
sale of which in this state a tax is imposed by the law of this	5844
state, but this exemption shall not apply to the sale of motor	5845
fuel on which a refund of the tax is allowable under division (A)	5846
of section 5735.14 of the Revised Code; and the tax commissioner	5847
may deduct the amount of tax levied by this section applicable to	5848
the price of motor fuel when granting a refund of motor fuel tax	5849
pursuant to division (A) of section 5735.14 of the Revised Code	5850
and shall cause the amount deducted to be paid into the general	5851
revenue fund of this state;	5852

(7) Sales of natural gas by a natural gas company, of water	5853
by a water-works company, or of steam by a heating company, if in	5854
each case the thing sold is delivered to consumers through pipes	5855
or conduits, and all sales of communications services by a	5856
telegraph company, all terms as defined in section 5727.01 of the	5857
Revised Code, and sales of electricity delivered through wires;	5858

(8) Casual sales by a person, or auctioneer employed directly	5859
by the person to conduct such sales, except as to such sales of	5860
motor vehicles, watercraft or outboard motors required to be	5861
titled under section 1548.06 of the Revised Code, watercraft	5862
documented with the United States coast guard, snowmobiles, and	5863
all-purpose vehicles as defined in section 4519.01 of the Revised	5864
Code;	5865

(9)(a) Sales of services or tangible personal property, other	5866
than motor vehicles, mobile homes, and manufactured homes, by	5867
churches, organizations exempt from taxation under section	5868
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	5869
organizations operated exclusively for charitable purposes as	5870
defined in division (B)(12) of this section, provided that the	5871
number of days on which such tangible personal property or	5872
services, other than items never subject to the tax, are sold does	5873
not exceed six in any calendar year, except as otherwise provided	5874
in division (B)(9)(b) of this section. If the number of days on	5875
which such sales are made exceeds six in any calendar year, the	5876
church or organization shall be considered to be engaged in	5877
business and all subsequent sales by it shall be subject to the	5878
tax. In counting the number of days, all sales by groups within a	5879
church or within an organization shall be considered to be sales	5880
of that church or organization.	5881

(b) The limitation on the number of days on which tax-exempt	5882
sales may be made by a church or organization under division	5883
(B)(9)(a) of this section does not apply to sales made by student	5884
clubs and other groups of students of a primary or secondary	5885
school, or a parent-teacher association, booster group, or similar	5886
organization that raises money to support or fund curricular or	5887
extracurricular activities of a primary or secondary school.	5888

(c) Divisions (B)(9)(a) and (b) of this section do not apply	5889
to sales by a noncommercial educational radio or television	5890
broadcasting station.	5891

(10) Sales not within the taxing power of this state under	5892
the Constitution of the United States;	5893

(11) Except for transactions that are sales under division	5894
(B)(3)(r) of section 5739.01 of the Revised Code, the	5895
transportation of persons or property, unless the transportation	5896
is by a private investigation and security service;	5897

(12) Sales of tangible personal property or services to	5898
churches, to organizations exempt from taxation under section	5899
501(c)(3) of the Internal Revenue Code of 1986, and to any other	5900
nonprofit organizations operated exclusively for charitable	5901
purposes in this state, no part of the net income of which inures	5902
to the benefit of any private shareholder or individual, and no	5903
substantial part of the activities of which consists of carrying	5904
on propaganda or otherwise attempting to influence legislation;	5905
sales to offices administering one or more homes for the aged or	5906
one or more hospital facilities exempt under section 140.08 of the	5907
Revised Code; and sales to organizations described in division (D)	5908
of section 5709.12 of the Revised Code.	5909

"Charitable purposes" means the relief of poverty; the	5910
improvement of health through the alleviation of illness, disease,	5911
or injury; the operation of an organization exclusively for the	5912
provision of professional, laundry, printing, and purchasing	5913
services to hospitals or charitable institutions; the operation of	5914
a home for the aged, as defined in section 5701.13 of the Revised	5915
Code; the operation of a radio or television broadcasting station	5916
that is licensed by the federal communications commission as a	5917
noncommercial educational radio or television station; the	5918
operation of a nonprofit animal adoption service or a county	5919
humane society; the promotion of education by an institution of	5920
learning that maintains a faculty of qualified instructors,	5921
teaches regular continuous courses of study, and confers a	5922
recognized diploma upon completion of a specific curriculum; the	5923
operation of a parent-teacher association, booster group, or	5924
similar organization primarily engaged in the promotion and	5925
support of the curricular or extracurricular activities of a	5926
primary or secondary school; the operation of a community or area	5927
center in which presentations in music, dramatics, the arts, and	5928
related fields are made in order to foster public interest and	5929
education therein; the production of performances in music,	5930
dramatics, and the arts; or the promotion of education by an	5931
organization engaged in carrying on research in, or the	5932
dissemination of, scientific and technological knowledge and	5933
information primarily for the public.	5934

Nothing in this division shall be deemed to exempt sales to	5935
any organization for use in the operation or carrying on of a	5936
trade or business, or sales to a home for the aged for use in the	5937
operation of independent living facilities as defined in division	5938
(A) of section 5709.12 of the Revised Code.	5939

(13) Building and construction materials and services sold to	5940
construction contractors for incorporation into a structure or	5941
improvement to real property under a construction contract with	5942
this state or a political subdivision of this state, or with the	5943
United States government or any of its agencies; building and	5944
construction materials and services sold to construction	5945
contractors for incorporation into a structure or improvement to	5946
real property that are accepted for ownership by this state or any	5947
of its political subdivisions, or by the United States government	5948
or any of its agencies at the time of completion of the structures	5949
or improvements; building and construction materials sold to	5950
construction contractors for incorporation into a horticulture	5951
structure or livestock structure for a person engaged in the	5952
business of horticulture or producing livestock; building	5953
materials and services sold to a construction contractor for	5954
incorporation into a house of public worship or religious	5955
education, or a building used exclusively for charitable purposes	5956
under a construction contract with an organization whose purpose	5957
is as described in division (B)(12) of this section; building	5958
materials and services sold to a construction contractor for	5959
incorporation into a building under a construction contract with	5960
an organization exempt from taxation under section 501(c)(3) of	5961
the Internal Revenue Code of 1986 when the building is to be used	5962
exclusively for the organization's exempt purposes; building and	5963
construction materials sold for incorporation into the original	5964
construction of a sports facility under section 307.696 of the	5965
Revised Code; building and construction materials and services	5966
sold to a construction contractor for incorporation into real	5967
property outside this state if such materials and services, when	5968
sold to a construction contractor in the state in which the real	5969
property is located for incorporation into real property in that	5970
state, would be exempt from a tax on sales levied by that state;	5971
and, until one calendar year after the construction of a	5972
convention center that qualifies for property tax exemption under	5973
section 5709.084 of the Revised Code is completed, building and	5974
construction materials and services sold to a construction	5975
contractor for incorporation into the real property comprising	5976
that convention center;	5977

(14) Sales of ships or vessels or rail rolling stock used or	5978
to be used principally in interstate or foreign commerce, and	5979
repairs, alterations, fuel, and lubricants for such ships or	5980
vessels or rail rolling stock;	5981

(15) Sales to persons primarily engaged in any of the	5982
activities mentioned in division (B)(42)(a), (g), or (h) of this	5983
section, to persons engaged in making retail sales, or to persons	5984
who purchase for sale from a manufacturer tangible personal	5985
property that was produced by the manufacturer in accordance with	5986
specific designs provided by the purchaser, of packages, including	5987
material, labels, and parts for packages, and of machinery,	5988
equipment, and material for use primarily in packaging tangible	5989
personal property produced for sale, including any machinery,	5990
equipment, and supplies used to make labels or packages, to	5991
prepare packages or products for labeling, or to label packages or	5992
products, by or on the order of the person doing the packaging, or	5993
sold at retail. "Packages" includes bags, baskets, cartons,	5994
crates, boxes, cans, bottles, bindings, wrappings, and other	5995
similar devices and containers, but does not include motor	5996
vehicles or bulk tanks, trailers, or similar devices attached to	5997
motor vehicles. "Packaging" means placing in a package. Division	5998
(B)(15) of this section does not apply to persons engaged in	5999
highway transportation for hire.	6000

(16) Sales of food to persons using supplemental nutrition	6001
assistance program benefits to purchase the food. As used in this	6002
division, "food" has the same meaning as in 7 U.S.C. 2012 and	6003
federal regulations adopted pursuant to the Food and Nutrition Act	6004
of 2008.	6005

(17) Sales to persons engaged in farming, agriculture,	6006
horticulture, or floriculture, of tangible personal property for	6007
use or consumption primarily in the production by farming,	6008
agriculture, horticulture, or floriculture of other tangible	6009
personal property for use or consumption primarily in the	6010
production of tangible personal property for sale by farming,	6011
agriculture, horticulture, or floriculture; or material and parts	6012
for incorporation into any such tangible personal property for use	6013
or consumption in production; and of tangible personal property	6014
for such use or consumption in the conditioning or holding of	6015
products produced by and for such use, consumption, or sale by	6016
persons engaged in farming, agriculture, horticulture, or	6017
floriculture, except where such property is incorporated into real	6018
property;	6019

(18) Sales of drugs for a human being that may be dispensed	6020
only pursuant to a prescription; insulin as recognized in the	6021
official United States pharmacopoeia; urine and blood testing	6022
materials when used by diabetics or persons with hypoglycemia to	6023
test for glucose or acetone; hypodermic syringes and needles when	6024
used by diabetics for insulin injections; epoetin alfa when	6025
purchased for use in the treatment of persons with medical	6026
disease; hospital beds when purchased by hospitals, nursing homes,	6027
or other medical facilities; and medical oxygen and medical	6028
oxygen-dispensing equipment when purchased by hospitals, nursing	6029
homes, or other medical facilities;	6030

(19) Sales of prosthetic devices, durable medical equipment	6031
for home use, or mobility enhancing equipment, when made pursuant	6032
to a prescription and when such devices or equipment are for use	6033
by a human being.	6034

(20) Sales of emergency and fire protection vehicles and	6035
equipment to nonprofit organizations for use solely in providing	6036
fire protection and emergency services, including trauma care and	6037
emergency medical services, for political subdivisions of the	6038
state;	6039

(21) Sales of tangible personal property manufactured in this	6040
state, if sold by the manufacturer in this state to a retailer for	6041
use in the retail business of the retailer outside of this state	6042
and if possession is taken from the manufacturer by the purchaser	6043
within this state for the sole purpose of immediately removing the	6044
same from this state in a vehicle owned by the purchaser;	6045

(22) Sales of services provided by the state or any of its	6046
political subdivisions, agencies, instrumentalities, institutions,	6047
or authorities, or by governmental entities of the state or any of	6048
its political subdivisions, agencies, instrumentalities,	6049
institutions, or authorities;	6050

(23) Sales of motor vehicles to nonresidents of this state	6051
under the circumstances described in division (B) of section	6052
5739.029 of the Revised Code;	6053

(24) Sales to persons engaged in the preparation of eggs for	6054
sale of tangible personal property used or consumed directly in	6055
such preparation, including such tangible personal property used	6056
for cleaning, sanitizing, preserving, grading, sorting, and	6057
classifying by size; packages, including material and parts for	6058
packages, and machinery, equipment, and material for use in	6059
packaging eggs for sale; and handling and transportation equipment	6060
and parts therefor, except motor vehicles licensed to operate on	6061
public highways, used in intraplant or interplant transfers or	6062
shipment of eggs in the process of preparation for sale, when the	6063
plant or plants within or between which such transfers or	6064
shipments occur are operated by the same person. "Packages"	6065
includes containers, cases, baskets, flats, fillers, filler flats,	6066
cartons, closure materials, labels, and labeling materials, and	6067
"packaging" means placing therein.	6068

(25)(a) Sales of water to a consumer for residential use,	6069
except the sale of bottled water, distilled water, mineral water,	6070
carbonated water, or ice;	6071

(b) Sales of water by a nonprofit corporation engaged	6072
exclusively in the treatment, distribution, and sale of water to	6073
consumers, if such water is delivered to consumers through pipes	6074
or tubing.	6075

(26) Fees charged for inspection or reinspection of motor	6076
vehicles under section 3704.14 of the Revised Code;	6077

(27) Sales to persons licensed to conduct a food service	6078
operation pursuant to section 3717.43 of the Revised Code, of	6079
tangible personal property primarily used directly for the	6080
following:	6081

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

6082

(b) To preserve food that has been or will be prepared for	6083
human consumption for sale by the food service operator, not	6084
including tangible personal property used to display food for	6085
selection by the consumer;	6086

(c) To clean tangible personal property used to prepare or	6087
serve food for human consumption for sale.	6088

(28) Sales of animals by nonprofit animal adoption services	6089
or county humane societies;	6090

(29) Sales of services to a corporation described in division	6091
(A) of section 5709.72 of the Revised Code, and sales of tangible	6092
personal property that qualifies for exemption from taxation under	6093
section 5709.72 of the Revised Code;	6094

(30) Sales and installation of agricultural land tile, as	6095
defined in division (B)(5)(a) of section 5739.01 of the Revised	6096
Code;	6097

(31) Sales and erection or installation of portable grain	6098
bins, as defined in division (B)(5)(b) of section 5739.01 of the	6099
Revised Code;	6100

(32) The sale, lease, repair, and maintenance of, parts for,	6101
or items attached to or incorporated in, motor vehicles that are	6102
primarily used for transporting tangible personal property	6103
belonging to others by a person engaged in highway transportation	6104
for hire, except for packages and packaging used for the	6105
transportation of tangible personal property;	6106

(33) Sales to the state headquarters of any veterans'	6107
organization in this state that is either incorporated and issued	6108
a charter by the congress of the United States or is recognized by	6109
the United States veterans administration, for use by the	6110
headquarters;	6111

(34) Sales to a telecommunications service vendor, mobile	6112
telecommunications service vendor, or satellite broadcasting	6113
service vendor of tangible personal property and services used	6114
directly and primarily in transmitting, receiving, switching, or	6115
recording any interactive, one- or two-way electromagnetic	6116
communications, including voice, image, data, and information,	6117
through the use of any medium, including, but not limited to,	6118
poles, wires, cables, switching equipment, computers, and record	6119
storage devices and media, and component parts for the tangible	6120
personal property. The exemption provided in this division shall	6121
be in lieu of all other exemptions under division (B)(42)(a) or	6122
(n) of this section to which the vendor may otherwise be entitled,	6123
based upon the use of the thing purchased in providing the	6124
telecommunications, mobile telecommunications, or satellite	6125
broadcasting service.	6126

(35)(a) Sales where the purpose of the consumer is to use or	6127
consume the things transferred in making retail sales and	6128
consisting of newspaper inserts, catalogues, coupons, flyers, gift	6129
certificates, or other advertising material that prices and	6130
describes tangible personal property offered for retail sale.	6131

(b) Sales to direct marketing vendors of preliminary	6132
materials such as photographs, artwork, and typesetting that will	6133
be used in printing advertising material; of printed matter that	6134
offers free merchandise or chances to win sweepstake prizes and	6135
that is mailed to potential customers with advertising material	6136
described in division (B)(35)(a) of this section; and of equipment	6137
such as telephones, computers, facsimile machines, and similar	6138
tangible personal property primarily used to accept orders for	6139
direct marketing retail sales.	6140

(c) Sales of automatic food vending machines that preserve	6141
food with a shelf life of forty-five days or less by refrigeration	6142
and dispense it to the consumer.	6143

For purposes of division (B)(35) of this section, "direct	6144
marketing" means the method of selling where consumers order	6145
tangible personal property by United States mail, delivery	6146
service, or telecommunication and the vendor delivers or ships the	6147
tangible personal property sold to the consumer from a warehouse,	6148
catalogue distribution center, or similar fulfillment facility by	6149
means of the United States mail, delivery service, or common	6150
carrier.	6151

(36) Sales to a person engaged in the business of	6152
horticulture or producing livestock of materials to be	6153
incorporated into a horticulture structure or livestock structure;	6154

(37) Sales of personal computers, computer monitors, computer	6155
keyboards, modems, and other peripheral computer equipment to an	6156
individual who is licensed or certified to teach in an elementary	6157
or a secondary school in this state for use by that individual in	6158
preparation for teaching elementary or secondary school students;	6159

(38) Sales to a professional racing team of any of the	6160
following:	6161

(a) Motor racing vehicles;

6162

(b) Repair services for motor racing vehicles;

6163

(c) Items of property that are attached to or incorporated in	6164
motor racing vehicles, including engines, chassis, and all other	6165
components of the vehicles, and all spare, replacement, and	6166
rebuilt parts or components of the vehicles; except not including	6167
tires, consumable fluids, paint, and accessories consisting of	6168
instrumentation sensors and related items added to the vehicle to	6169
collect and transmit data by means of telemetry and other forms of	6170
communication.	6171

(39) Sales of used manufactured homes and used mobile homes,	6172
as defined in section 5739.0210 of the Revised Code, made on or	6173
after January 1, 2000;	6174

(40) Sales of tangible personal property and services to a	6175
provider of electricity used or consumed directly and primarily in	6176
generating, transmitting, or distributing electricity for use by	6177
others, including property that is or is to be incorporated into	6178
and will become a part of the consumer's production, transmission,	6179
or distribution system and that retains its classification as	6180
tangible personal property after incorporation; fuel or power used	6181
in the production, transmission, or distribution of electricity;	6182
energy conversion equipment as defined in section 5727.01 of the	6183
Revised Code; and tangible personal property and services used in	6184
the repair and maintenance of the production, transmission, or	6185
distribution system, including only those motor vehicles as are	6186
specially designed and equipped for such use. The exemption	6187
provided in this division shall be in lieu of all other exemptions	6188
in division (B)(42)(a) or (n) of this section to which a provider	6189
of electricity may otherwise be entitled based on the use of the	6190
tangible personal property or service purchased in generating,	6191
transmitting, or distributing electricity.	6192

(41) Sales to a person providing services under division	6193
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	6194
personal property and services used directly and primarily in	6195
providing taxable services under that section.	6196

(42) Sales where the purpose of the purchaser is to do any of	6197
the following:	6198

(a) To incorporate the thing transferred as a material or a	6199
part into tangible personal property to be produced for sale by	6200
manufacturing, assembling, processing, or refining; or to use or	6201
consume the thing transferred directly in producing tangible	6202
personal property for sale by mining, including, without	6203
limitation, the extraction from the earth of all substances that	6204
are classed geologically as minerals, production of crude oil and	6205
natural gas, or directly in the rendition of a public utility	6206
service, except that the sales tax levied by this section shall be	6207
collected upon all meals, drinks, and food for human consumption	6208
sold when transporting persons. Persons engaged in rendering	6209
services in the exploration for, and production of, crude oil and	6210
natural gas for others are deemed engaged directly in the	6211
exploration for, and production of, crude oil and natural gas.	6212
This paragraph does not exempt from "retail sale" or "sales at	6213
retail" the sale of tangible personal property that is to be	6214
incorporated into a structure or improvement to real property.	6215

(b) To hold the thing transferred as security for the	6216
performance of an obligation of the vendor;	6217

(c) To resell, hold, use, or consume the thing transferred as	6218
evidence of a contract of insurance;	6219

(d) To use or consume the thing directly in commercial	6220
fishing;	6221

(e) To incorporate the thing transferred as a material or a	6222
part into, or to use or consume the thing transferred directly in	6223
the production of, magazines distributed as controlled circulation	6224
publications;	6225

(f) To use or consume the thing transferred in the production	6226
and preparation in suitable condition for market and sale of	6227
printed, imprinted, overprinted, lithographic, multilithic,	6228
blueprinted, photostatic, or other productions or reproductions of	6229
written or graphic matter;	6230

(g) To use the thing transferred, as described in section	6231
5739.011 of the Revised Code, primarily in a manufacturing	6232
operation to produce tangible personal property for sale;	6233

(h) To use the benefit of a warranty, maintenance or service	6234
contract, or similar agreement, as described in division (B)(7) of	6235
section 5739.01 of the Revised Code, to repair or maintain	6236
tangible personal property, if all of the property that is the	6237
subject of the warranty, contract, or agreement would not be	6238
subject to the tax imposed by this section;	6239

(i) To use the thing transferred as qualified research and	6240
development equipment;	6241

(j) To use or consume the thing transferred primarily in	6242
storing, transporting, mailing, or otherwise handling purchased	6243
sales inventory in a warehouse, distribution center, or similar	6244
facility when the inventory is primarily distributed outside this	6245
state to retail stores of the person who owns or controls the	6246
warehouse, distribution center, or similar facility, to retail	6247
stores of an affiliated group of which that person is a member, or	6248
by means of direct marketing. This division does not apply to	6249
motor vehicles registered for operation on the public highways. As	6250
used in this division, "affiliated group" has the same meaning as	6251
in division (B)(3)(e) of section 5739.01 of the Revised Code and	6252
"direct marketing" has the same meaning as in division (B)(35) of	6253
this section.	6254

(k) To use or consume the thing transferred to fulfill a	6255
contractual obligation incurred by a warrantor pursuant to a	6256
warranty provided as a part of the price of the tangible personal	6257
property sold or by a vendor of a warranty, maintenance or service	6258
contract, or similar agreement the provision of which is defined	6259
as a sale under division (B)(7) of section 5739.01 of the Revised	6260
Code;	6261

(l) To use or consume the thing transferred in the production	6262
of a newspaper for distribution to the public;	6263

(m) To use tangible personal property to perform a service	6264
listed in division (B)(3) of section 5739.01 of the Revised Code,	6265
if the property is or is to be permanently transferred to the	6266
consumer of the service as an integral part of the performance of	6267
the service;	6268

(n) To use or consume the thing transferred primarily in	6269
producing tangible personal property for sale by farming,	6270
agriculture, horticulture, or floriculture. Persons engaged in	6271
rendering farming, agriculture, horticulture, or floriculture	6272
services for others are deemed engaged primarily in farming,	6273
agriculture, horticulture, or floriculture. This paragraph does	6274
not exempt from "retail sale" or "sales at retail" the sale of	6275
tangible personal property that is to be incorporated into a	6276
structure or improvement to real property.	6277

(o) To use or consume the thing transferred in acquiring,	6278
formatting, editing, storing, and disseminating data or	6279
information by electronic publishing.	6280

As used in division (B)(42) of this section, "thing" includes	6281
all transactions included in divisions (B)(3)(a), (b), and (e) of	6282
section 5739.01 of the Revised Code.	6283

(43) Sales conducted through a coin operated device that	6284
activates vacuum equipment or equipment that dispenses water,	6285
whether or not in combination with soap or other cleaning agents	6286
or wax, to the consumer for the consumer's use on the premises in	6287
washing, cleaning, or waxing a motor vehicle, provided no other	6288
personal property or personal service is provided as part of the	6289
transaction.	6290

(44) Sales of replacement and modification parts for engines,	6291
airframes, instruments, and interiors in, and paint for, aircraft	6292
used primarily in a fractional aircraft ownership program, and	6293
sales of services for the repair, modification, and maintenance of	6294
such aircraft, and machinery, equipment, and supplies primarily	6295
used to provide those services.	6296

(45) Sales of telecommunications service that is used	6297
directly and primarily to perform the functions of a call center.	6298
As used in this division, "call center" means any physical	6299
location where telephone calls are placed or received in high	6300
volume for the purpose of making sales, marketing, customer	6301
service, technical support, or other specialized business	6302
activity, and that employs at least fifty individuals that engage	6303
in call center activities on a full-time basis, or sufficient	6304
individuals to fill fifty full-time equivalent positions.	6305

(46) Sales by a telecommunications service vendor of 900	6306
service to a subscriber. This division does not apply to	6307
information services, as defined in division (FF) of section	6308
5739.01 of the Revised Code.	6309

(47) Sales of value-added non-voice data service. This	6310
division does not apply to any similar service that is not	6311
otherwise a telecommunications service.	6312

(48)(a) Sales of machinery, equipment, and software to a	6313
qualified direct selling entity for use in a warehouse or	6314
distribution center primarily for storing, transporting, or	6315
otherwise handling inventory that is held for sale to independent	6316
salespersons who operate as direct sellers and that is held	6317
primarily for distribution outside this state;	6318

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

6319

(i) "Direct seller" means a person selling consumer products	6320
to individuals for personal or household use and not from a fixed	6321
retail location, including selling such product at in-home product	6322
demonstrations, parties, and other one-on-one selling.	6323

(ii) "Qualified direct selling entity" means an entity	6324
selling to direct sellers at the time the entity enters into a tax	6325
credit agreement with the tax credit authority pursuant to section	6326
122.17 of the Revised Code, provided that the agreement was	6327
entered into on or after January 1, 2007. Neither contingencies	6328
relevant to the granting of, nor later developments with respect	6329
to, the tax credit shall impair the status of the qualified direct	6330
selling entity under division (B)(48) of this section after	6331
execution of the tax credit agreement by the tax credit authority.	6332

(c) Division (B)(48) of this section is limited to machinery,	6333
equipment, and software first stored, used, or consumed in this	6334
state within the period commencing June 24, 2008, and ending on	6335
the date that is five years after that date.	6336

(49) Sales of materials, parts, equipment, or engines used in	6337
the repair or maintenance of aircraft or avionics systems of such	6338
aircraft, and sales of repair, remodeling, replacement, or	6339
maintenance services in this state performed on aircraft or on an	6340
aircraft's avionics, engine, or component materials or parts. As	6341
used in division (B)(49) of this section, "aircraft" means	6342
aircraft of more than six thousand pounds maximum certified	6343
takeoff weight or used exclusively in general aviation.	6344

(50) Sales of full flight simulators that are used for pilot	6345
or flight-crew training, sales of repair or replacement parts or	6346
components, and sales of repair or maintenance services for such	6347
full flight simulators. "Full flight simulator" means a replica of	6348
a specific type, or make, model, and series of aircraft cockpit.	6349
It includes the assemblage of equipment and computer programs	6350
necessary to represent aircraft operations in ground and flight	6351
conditions, a visual system providing an out-of-the-cockpit view,	6352
and a system that provides cues at least equivalent to those of a	6353
three-degree-of-freedom motion system, and has the full range of	6354
capabilities of the systems installed in the device as described	6355
in appendices A and B of part 60 of chapter 1 of title 14 of the	6356
Code of Federal Regulations.	6357

(51) Any transfer or lease of tangible personal property	6358
between the state and a successful proposer in accordance with	6359
sections 126.60 to 126.605 of the Revised Code, provided the	6360
property is part of a project as defined in section 126.60 of the	6361
Revised Code and the state retains ownership of the project or	6362
part thereof that is being transferred or leased, between the	6363
state and JobsOhio in accordance with section 4313.02 of the	6364
Revised Code.	6365

(C) For the purpose of the proper administration of this	6366
chapter, and to prevent the evasion of the tax, it is presumed	6367
that all sales made in this state are subject to the tax until the	6368
contrary is established.	6369

(D) The levy of this tax on retail sales of recreation and	6370
sports club service shall not prevent a municipal corporation from	6371
levying any tax on recreation and sports club dues or on any	6372
income generated by recreation and sports club dues.	6373

(E) The tax collected by the vendor from the consumer under	6374
this chapter is not part of the price, but is a tax collection for	6375
the benefit of the state, and of counties levying an additional	6376
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	6377
Code and of transit authorities levying an additional sales tax	6378
pursuant to section 5739.023 of the Revised Code. Except for the	6379
discount authorized under section 5739.12 of the Revised Code and	6380
the effects of any rounding pursuant to section 5703.055 of the	6381
Revised Code, no person other than the state or such a county or	6382
transit authority shall derive any benefit from the collection or	6383
payment of the tax levied by this section or section 5739.021,	6384
5739.023, or 5739.026 of the Revised Code.	6385

Sec. 5739.021.  (A) For the purpose of providing additional	6386
general revenues for the county or supporting criminal and	6387
administrative justice services in the county, or both, and to pay	6388
the expenses of administering such levy, any county may levy a tax	6389
at the rate of not more than one per cent at any multiple of	6390
one-fourth of one per cent upon every retail sale made in the	6391
county, except sales of watercraft and outboard motors required to	6392
be titled pursuant to Chapter 1548. of the Revised Code and sales	6393
of motor vehicles, and may increase the rate of an existing tax to	6394
not more than one per cent at any multiple of one-fourth of one	6395
per cent.	6396

The tax shall be levied and the rate increased pursuant to a	6397
resolution of the board of county commissioners. The resolution	6398
shall state the purpose for which the tax is to be levied and the	6399
number of years for which the tax is to be levied, or that it is	6400
for a continuing period of time. If the tax is to be levied for	6401
the purpose of providing additional general revenues and for the	6402
purpose of supporting criminal and administrative justice	6403
services, the resolution shall state the rate or amount of the tax	6404
to be apportioned to each such purpose. The rate or amount may be	6405
different for each year the tax is to be levied, but the rates or	6406
amounts actually apportioned each year shall not be different from	6407
that stated in the resolution for that year. If the resolution is	6408
adopted as an emergency measure necessary for the immediate	6409
preservation of the public peace, health, or safety, it must	6410
receive an affirmative vote of all of the members of the board of	6411
county commissioners and shall state the reasons for such	6412
necessity. The board shall deliver a certified copy of the	6413
resolution to the tax commissioner, not later than the sixty-fifth	6414
day prior to the date on which the tax is to become effective,	6415
which shall be the first day of the calendar quarter.	6416

Prior to the adoption of any resolution under this section,	6417
the board of county commissioners shall conduct two public	6418
hearings on the resolution, the second hearing to be not less than	6419
three nor more than ten days after the first. Notice of the date,	6420
time, and place of the hearings shall be given by publication in a	6421
newspaper of general circulation in the county, or as provided in	6422
section 7.16 of the Revised Code, once a week on the same day of	6423
the week for two consecutive weeks, the second publication being	6424
not less than ten nor more than thirty days prior to the first	6425
hearing.	6426

Except as provided in division (B)(3) of this section, the	6427
resolution shall be subject to a referendum as provided in	6428
sections 305.31 to 305.41 of the Revised Code.	6429

If a petition for a referendum is filed, the county auditor	6430
with whom the petition was filed shall, within five days, notify	6431
the board of county commissioners and the tax commissioner of the	6432
filing of the petition by certified mail. If the board of	6433
elections with which the petition was filed declares the petition	6434
invalid, the board of elections, within five days, shall notify	6435
the board of county commissioners and the tax commissioner of that	6436
declaration by certified mail. If the petition is declared to be	6437
invalid, the effective date of the tax or increased rate of tax	6438
levied by this section shall be the first day of a calendar	6439
quarter following the expiration of sixty-five days from the date	6440
the commissioner receives notice from the board of elections that	6441
the petition is invalid.	6442

(B)(1) A resolution that is not adopted as an emergency	6443
measure may direct the board of elections to submit the question	6444
of levying the tax or increasing the rate of tax to the electors	6445
of the county at a special election held on the date specified by	6446
the board of county commissioners in the resolution, provided that	6447
the election occurs not less than ninety days after a certified	6448
copy of such resolution is transmitted to the board of elections	6449
and the election is not held in February or August of any year.	6450
Upon transmission of the resolution to the board of elections, the	6451
board of county commissioners shall notify the tax commissioner in	6452
writing of the levy question to be submitted to the electors. No	6453
resolution adopted under this division shall go into effect unless	6454
approved by a majority of those voting upon it, and, except as	6455
provided in division (B)(3) of this section, shall become	6456
effective on the first day of a calendar quarter following the	6457
expiration of sixty-five days from the date the tax commissioner	6458
receives notice from the board of elections of the affirmative	6459
vote.	6460

(2) A resolution that is adopted as an emergency measure	6461
shall go into effect as provided in division (A) of this section,	6462
but may direct the board of elections to submit the question of	6463
repealing the tax or increase in the rate of the tax to the	6464
electors of the county at the next general election in the county	6465
occurring not less than ninety days after a certified copy of the	6466
resolution is transmitted to the board of elections. Upon	6467
transmission of the resolution to the board of elections, the	6468
board of county commissioners shall notify the tax commissioner in	6469
writing of the levy question to be submitted to the electors. The	6470
ballot question shall be the same as that prescribed in section	6471
5739.022 of the Revised Code. The board of elections shall notify	6472
the board of county commissioners and the tax commissioner of the	6473
result of the election immediately after the result has been	6474
declared. If a majority of the qualified electors voting on the	6475
question of repealing the tax or increase in the rate of the tax	6476
vote for repeal of the tax or repeal of the increase, the board of	6477
county commissioners, on the first day of a calendar quarter	6478
following the expiration of sixty-five days after the date the	6479
board and tax commissioner receive notice of the result of the	6480
election, shall, in the case of a repeal of the tax, cease to levy	6481
the tax, or, in the case of a repeal of an increase in the rate of	6482
the tax, cease to levy the increased rate and levy the tax at the	6483
rate at which it was imposed immediately prior to the increase in	6484
rate.	6485

(3) If a vendor that is registered with the central	6486
electronic registration system provided for in section 5740.05 of	6487
the Revised Code makes a sale in this state by printed catalog and	6488
the consumer computed the tax on the sale based on local rates	6489
published in the catalog, any tax levied or repealed or rate	6490
changed under this section shall not apply to such a sale until	6491
the first day of a calendar quarter following the expiration of	6492
one hundred twenty days from the date of notice by the tax	6493
commissioner pursuant to division (H) of this section.	6494

(C) If a resolution is rejected at a referendum or if a	6495
resolution adopted after January 1, 1982, as an emergency measure	6496
is repealed by the electors pursuant to division (B)(2) of this	6497
section or section 5739.022 of the Revised Code, then for one year	6498
after the date of the election at which the resolution was	6499
rejected or repealed the board of county commissioners may not	6500
adopt any resolution authorized by this section as an emergency	6501
measure.	6502

(D) The board of county commissioners, at any time while a	6503
tax levied under this section is in effect, may by resolution	6504
reduce the rate at which the tax is levied to a lower rate	6505
authorized by this section. Any reduction in the rate at which the	6506
tax is levied shall be made effective on the first day of a	6507
calendar quarter next following the sixty-fifth day after a	6508
certified copy of the resolution is delivered to the tax	6509
commissioner.	6510

(E) The tax on every retail sale subject to a tax levied	6511
pursuant to this section shall be in addition to the tax levied by	6512
section 5739.02 of the Revised Code and any tax levied pursuant to	6513
section 5739.023 or 5739.026 of the Revised Code.	6514

A county that levies a tax pursuant to this section shall	6515
levy a tax at the same rate pursuant to section 5741.021 of the	6516
Revised Code.	6517

The additional tax levied by the county shall be collected	6518
pursuant to section 5739.025 of the Revised Code. If the	6519
additional tax or some portion thereof is levied for the purpose	6520
of criminal and administrative justice services, the revenue from	6521
the tax, or the amount or rate apportioned to that purpose, shall	6522
be credited to a special fund created in the county treasury for	6523
receipt of that revenue.	6524

Any tax levied pursuant to this section is subject to the	6525
exemptions provided in section 5739.02 of the Revised Code and in	6526
addition shall not be applicable to sales not within the taxing	6527
power of a county under the Constitution of the United States or	6528
the Ohio Constitution.	6529

(F) For purposes of this section, a copy of a resolution is	6530
"certified" when it contains a written statement attesting that	6531
the copy is a true and exact reproduction of the original	6532
resolution.	6533

(G) If a board of commissioners intends to adopt a resolution	6534
to levy a tax in whole or in part for the purpose of criminal and	6535
administrative justice services, the board shall prepare and make	6536
available at the first public hearing at which the resolution is	6537
considered a statement containing the following information:	6538

(1) For each of the two preceding fiscal years, the amount of	6539
expenditures made by the county from the county general fund for	6540
the purpose of criminal and administrative justice services;	6541

(2) For the fiscal year in which the resolution is adopted,	6542
the board's estimate of the amount of expenditures to be made by	6543
the county from the county general fund for the purpose of	6544
criminal and administrative justice services;	6545

(3) For each of the two fiscal years after the fiscal year in	6546
which the resolution is adopted, the board's preliminary plan for	6547
expenditures to be made from the county general fund for the	6548
purpose of criminal and administrative justice services, both	6549
under the assumption that the tax will be imposed for that purpose	6550
and under the assumption that the tax would not be imposed for	6551
that purpose, and for expenditures to be made from the special	6552
fund created under division (E) of this section under the	6553
assumption that the tax will be imposed for that purpose.	6554

The board shall prepare the statement and the preliminary	6555
plan using the best information available to the board at the time	6556
the statement is prepared. Neither the statement nor the	6557
preliminary plan shall be used as a basis to challenge the	6558
validity of the tax in any court of competent jurisdiction, nor	6559
shall the statement or preliminary plan limit the authority of the	6560
board to appropriate, pursuant to section 5705.38 of the Revised	6561
Code, an amount different from that specified in the preliminary	6562
plan.	6563

(H) Upon receipt from a board of county commissioners of a	6564
certified copy of a resolution required by division (A) or (D) of	6565
this section, or from the board of elections of a notice of the	6566
results of an election required by division (A) or (B)(1) or (2)	6567
of this section, the tax commissioner shall provide notice of a	6568
tax rate change in a manner that is reasonably accessible to all	6569
affected vendors. The commissioner shall provide this notice at	6570
least sixty days prior to the effective date of the rate change.	6571
The commissioner, by rule, may establish the method by which	6572
notice will be provided.	6573

(I) As used in this section, "criminal and administrative	6574
justice services" means the exercise by the county sheriff of all	6575
powers and duties vested in that office by law; the exercise by	6576
the county prosecuting attorney of all powers and duties vested in	6577
that office by law; the exercise by any court in the county of all	6578
powers and duties vested in that court; the exercise by the clerk	6579
of the court of common pleas, any clerk of a municipal court	6580
having jurisdiction throughout the county, or the clerk of any	6581
county court of all powers and duties vested in the clerk by law	6582
except, in the case of the clerk of the court of common pleas, the	6583
titling of motor vehicles or watercraft pursuant to Chapter 1548.	6584
or 4505. of the Revised Code; the exercise by the county coroner	6585
of all powers and duties vested in that office by law; making	6586
payments to any other public agency or a private, nonprofit	6587
agency, the purposes of which in the county include the diversion,	6588
adjudication, detention, or rehabilitation of criminals or	6589
juvenile offenders; the operation and maintenance of any detention	6590
facility, as defined in section 2921.01 of the Revised Code; and	6591
the construction, acquisition, equipping, or repair of such a	6592
detention facility, including the payment of any debt charges	6593
incurred in the issuance of securities pursuant to Chapter 133. of	6594
the Revised Code for the purpose of constructing, acquiring,	6595
equipping, or repairing such a facility.	6596

Sec. 5739.023.  (A)(1) For the purpose of providing	6597
additional general revenues for a transit authority and paying the	6598
expenses of administering such levy, any transit authority as	6599
defined in division (U) of section 5739.01 of the Revised Code may	6600
levy a tax upon every retail sale made in the territory of the	6601
transit authority, except sales of watercraft and outboard motors	6602
required to be titled pursuant to Chapter 1548. of the Revised	6603
Code and sales of motor vehicles, at a rate of not more than one	6604
and one-half per cent at any multiple of one-fourth of one per	6605
cent and may increase the existing rate of tax to not more than	6606
one and one-half per cent at any multiple of one-fourth of one per	6607
cent. The tax shall be levied and the rate increased pursuant to a	6608
resolution of the legislative authority of the transit authority	6609
and a certified copy of the resolution shall be delivered by the	6610
fiscal officer to the board of elections as provided in section	6611
3505.071 of the Revised Code and to the tax commissioner. The	6612
resolution shall specify the number of years for which the tax is	6613
to be in effect or that the tax is for a continuing period of	6614
time, and the date of the election on the question of the tax	6615
pursuant to section 306.70 of the Revised Code. The board of	6616
elections shall certify the results of the election to the transit	6617
authority and tax commissioner.	6618

(2) Except as provided in division (C) of this section, the	6619
tax levied by the resolution shall become effective on the first	6620
day of a calendar quarter next following the sixty-fifth day	6621
following the date the tax commissioner receives from the board of	6622
elections the certification of the results of the election on the	6623
question of the tax.	6624

(B) The legislative authority may, at any time while the tax	6625
is in effect, by resolution fix the rate of the tax at any rate	6626
authorized by this section and not in excess of that approved by	6627
the voters pursuant to section 306.70 of the Revised Code. Except	6628
as provided in division (C) of this section, any change in the	6629
rate of the tax shall be made effective on the first day of a	6630
calendar quarter next following the sixty-fifth day following the	6631
date the tax commissioner receives the certification of the	6632
resolution; provided, that in any case where bonds, or notes in	6633
anticipation of bonds, of a regional transit authority have been	6634
issued under section 306.40 of the Revised Code without a vote of	6635
the electors while the tax proposed to be reduced was in effect,	6636
the board of trustees of the regional transit authority shall	6637
continue to levy and collect under authority of the original	6638
election authorizing the tax a rate of tax that the board of	6639
trustees reasonably estimates will produce an amount in that year	6640
equal to the amount of principal of and interest on those bonds as	6641
is payable in that year.	6642

(C) Upon receipt from the board of elections of the	6643
certification of the results of the election required by division	6644
(A) of this section, or from the legislative authority of the	6645
certification of a resolution under division (B) of this section,	6646
the tax commissioner shall provide notice of a tax rate change in	6647
a manner that is reasonably accessible to all affected vendors.	6648
The commissioner shall provide this notice at least sixty days	6649
prior to the effective date of the rate change. The commissioner,	6650
by rule, may establish the method by which notice will be	6651
provided.	6652

(D) If a vendor that is registered with the central	6653
electronic registration system provided for in section 5740.05 of	6654
the Revised Code makes a sale in this state by printed catalog and	6655
the consumer computed the tax on the sale based on local rates	6656
published in the catalog, any tax levied or rate changed under	6657
this section shall not apply to such a sale until the first day of	6658
a calendar quarter following the expiration of one hundred twenty	6659
days from the date of notice by the tax commissioner pursuant to	6660
division (C) of this section.	6661

(E) The tax on every retail sale subject to a tax levied	6662
pursuant to this section is in addition to the tax levied by	6663
section 5739.02 of the Revised Code and any tax levied pursuant to	6664
section 5739.021 or 5739.026 of the Revised Code.	6665

(F) The additional tax levied by the transit authority shall	6666
be collected pursuant to section 5739.025 of the Revised Code.	6667

(G) Any tax levied pursuant to this section is subject to the	6668
exemptions provided in section 5739.02 of the Revised Code and in	6669
addition shall not be applicable to sales not within the taxing	6670
power of a transit authority under the constitution of the United	6671
States or the constitution of this state.	6672

(H) The rate of a tax levied under this section is subject to	6673
reduction under section 5739.028 of the Revised Code, if a ballot	6674
question is approved by voters pursuant to that section.	6675

Sec. 5739.026.  (A) A board of county commissioners may levy	6676
a tax of one-fourth or one-half of one per cent on every retail	6677
sale in the county, except sales of watercraft and outboard motors	6678
required to be titled pursuant to Chapter 1548. of the Revised	6679
Code and sales of motor vehicles, and may increase an existing	6680
rate of one-fourth of one per cent to one-half of one per cent, to	6681
pay the expenses of administering the tax and, except as provided	6682
in division (A)(6) of this section, for any one or more of the	6683
following purposes provided that the aggregate levy for all such	6684
purposes does not exceed one-half of one per cent:	6685

(1) To provide additional revenues for the payment of bonds	6686
or notes issued in anticipation of bonds issued by a convention	6687
facilities authority established by the board of county	6688
commissioners under Chapter 351. of the Revised Code and to	6689
provide additional operating revenues for the convention	6690
facilities authority;	6691

(2) To provide additional revenues for a transit authority	6692
operating in the county;	6693

(3) To provide additional revenue for the county's general	6694
fund;	6695

(4) To provide additional revenue for permanent improvements	6696
within the county to be distributed by the community improvements	6697
board in accordance with section 307.283 and to pay principal,	6698
interest, and premium on bonds issued under section 307.284 of the	6699
Revised Code;	6700

(5) To provide additional revenue for the acquisition,	6701
construction, equipping, or repair of any specific permanent	6702
improvement or any class or group of permanent improvements, which	6703
improvement or class or group of improvements shall be enumerated	6704
in the resolution required by division (D) of this section, and to	6705
pay principal, interest, premium, and other costs associated with	6706
the issuance of bonds or notes in anticipation of bonds issued	6707
pursuant to Chapter 133. of the Revised Code for the acquisition,	6708
construction, equipping, or repair of the specific permanent	6709
improvement or class or group of permanent improvements;	6710

(6) To provide revenue for the implementation and operation	6711
of a 9-1-1 system in the county. If the tax is levied or the rate	6712
increased exclusively for such purpose, the tax shall not be	6713
levied or the rate increased for more than five years. At the end	6714
of the last year the tax is levied or the rate increased, any	6715
balance remaining in the special fund established for such purpose	6716
shall remain in that fund and be used exclusively for such purpose	6717
until the fund is completely expended, and, notwithstanding	6718
section 5705.16 of the Revised Code, the board of county	6719
commissioners shall not petition for the transfer of money from	6720
such special fund, and the tax commissioner shall not approve such	6721
a petition.	6722

If the tax is levied or the rate increased for such purpose	6723
for more than five years, the board of county commissioners also	6724
shall levy the tax or increase the rate of the tax for one or more	6725
of the purposes described in divisions (A)(1) to (5) of this	6726
section and shall prescribe the method for allocating the revenues	6727
from the tax each year in the manner required by division (C) of	6728
this section.	6729

(7) To provide additional revenue for the operation or	6730
maintenance of a detention facility, as that term is defined under	6731
division (F) of section 2921.01 of the Revised Code;	6732

(8) To provide revenue to finance the construction or	6733
renovation of a sports facility, but only if the tax is levied for	6734
that purpose in the manner prescribed by section 5739.028 of the	6735
Revised Code.	6736

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

6737

(a) "Sports facility" means a facility intended to house	6738
major league professional athletic teams.	6739

(b) "Constructing" or "construction" includes providing	6740
fixtures, furnishings, and equipment.	6741

(9) To provide additional revenue for the acquisition of	6742
agricultural easements, as defined in section 5301.67 of the	6743
Revised Code; to pay principal, interest, and premium on bonds	6744
issued under section 133.60 of the Revised Code; and for the	6745
supervision and enforcement of agricultural easements held by the	6746
county;	6747

(10) To provide revenue for the provision of ambulance,	6748
paramedic, or other emergency medical services.	6749

Pursuant to section 755.171 of the Revised Code, a board of	6750
county commissioners may pledge and contribute revenue from a tax	6751
levied for the purpose of division (A)(5) of this section to the	6752
payment of debt charges on bonds issued under section 755.17 of	6753
the Revised Code.	6754

The rate of tax shall be a multiple of one-fourth of one per	6755
cent, unless a portion of the rate of an existing tax levied under	6756
section 5739.023 of the Revised Code has been reduced, and the	6757
rate of tax levied under this section has been increased, pursuant	6758
to section 5739.028 of the Revised Code, in which case the	6759
aggregate of the rates of tax levied under this section and	6760
section 5739.023 of the Revised Code shall be a multiple of	6761
one-fourth of one per cent. The tax shall be levied and the rate	6762
increased pursuant to a resolution adopted by a majority of the	6763
members of the board. The board shall deliver a certified copy of	6764
the resolution to the tax commissioner, not later than the	6765
sixty-fifth day prior to the date on which the tax is to become	6766
effective, which shall be the first day of a calendar quarter.	6767

Prior to the adoption of any resolution to levy the tax or to	6768
increase the rate of tax exclusively for the purpose set forth in	6769
division (A)(3) of this section, the board of county commissioners	6770
shall conduct two public hearings on the resolution, the second	6771
hearing to be no fewer than three nor more than ten days after the	6772
first. Notice of the date, time, and place of the hearings shall	6773
be given by publication in a newspaper of general circulation in	6774
the county, or as provided in section 7.16 of the Revised Code,	6775
once a week on the same day of the week for two consecutive weeks.	6776
The second publication shall be no fewer than ten nor more than	6777
thirty days prior to the first hearing. Except as provided in	6778
division (E) of this section, the resolution shall be subject to a	6779
referendum as provided in sections 305.31 to 305.41 of the Revised	6780
Code. If the resolution is adopted as an emergency measure	6781
necessary for the immediate preservation of the public peace,	6782
health, or safety, it must receive an affirmative vote of all of	6783
the members of the board of county commissioners and shall state	6784
the reasons for the necessity.	6785

If the tax is for more than one of the purposes set forth in	6786
divisions (A)(1) to (7), (9), and (10) of this section, or is	6787
exclusively for one of the purposes set forth in division (A)(1),	6788
(2), (4), (5), (6), (7), (9), or (10) of this section, the	6789
resolution shall not go into effect unless it is approved by a	6790
majority of the electors voting on the question of the tax.	6791

(B) The board of county commissioners shall adopt a	6792
resolution under section 351.02 of the Revised Code creating the	6793
convention facilities authority, or under section 307.283 of the	6794
Revised Code creating the community improvements board, before	6795
adopting a resolution levying a tax for the purpose of a	6796
convention facilities authority under division (A)(1) of this	6797
section or for the purpose of a community improvements board under	6798
division (A)(4) of this section.	6799

(C)(1) If the tax is to be used for more than one of the	6800
purposes set forth in divisions (A)(1) to (7), (9), and (10) of	6801
this section, the board of county commissioners shall establish	6802
the method that will be used to determine the amount or proportion	6803
of the tax revenue received by the county during each year that	6804
will be distributed for each of those purposes, including, if	6805
applicable, provisions governing the reallocation of a convention	6806
facilities authority's allocation if the authority is dissolved	6807
while the tax is in effect. The allocation method may provide that	6808
different proportions or amounts of the tax shall be distributed	6809
among the purposes in different years, but it shall clearly	6810
describe the method that will be used for each year. Except as	6811
otherwise provided in division (C)(2) of this section, the	6812
allocation method established by the board is not subject to	6813
amendment during the life of the tax.	6814

(2) Subsequent to holding a public hearing on the proposed	6815
amendment, the board of county commissioners may amend the	6816
allocation method established under division (C)(1) of this	6817
section for any year, if the amendment is approved by the	6818
governing board of each entity whose allocation for the year would	6819
be reduced by the proposed amendment. In the case of a tax that is	6820
levied for a continuing period of time, the board may not so amend	6821
the allocation method for any year before the sixth year that the	6822
tax is in effect.	6823

(a) If the additional revenues provided to the convention	6824
facilities authority are pledged by the authority for the payment	6825
of convention facilities authority revenue bonds for as long as	6826
such bonds are outstanding, no reduction of the authority's	6827
allocation of the tax shall be made for any year except to the	6828
extent that the reduced authority allocation, when combined with	6829
the authority's other revenues pledged for that purpose, is	6830
sufficient to meet the debt service requirements for that year on	6831
such bonds.	6832

(b) If the additional revenues provided to the county are	6833
pledged by the county for the payment of bonds or notes described	6834
in division (A)(4) or (5) of this section, for as long as such	6835
bonds or notes are outstanding, no reduction of the county's or	6836
the community improvements board's allocation of the tax shall be	6837
made for any year, except to the extent that the reduced county or	6838
community improvements board allocation is sufficient to meet the	6839
debt service requirements for that year on such bonds or notes.	6840

(c) If the additional revenues provided to the transit	6841
authority are pledged by the authority for the payment of revenue	6842
bonds issued under section 306.37 of the Revised Code, for as long	6843
as such bonds are outstanding, no reduction of the authority's	6844
allocation of tax shall be made for any year, except to the extent	6845
that the authority's reduced allocation, when combined with the	6846
authority's other revenues pledged for that purpose, is sufficient	6847
to meet the debt service requirements for that year on such bonds.	6848

(d) If the additional revenues provided to the county are	6849
pledged by the county for the payment of bonds or notes issued	6850
under section 133.60 of the Revised Code, for so long as the bonds	6851
or notes are outstanding, no reduction of the county's allocation	6852
of the tax shall be made for any year, except to the extent that	6853
the reduced county allocation is sufficient to meet the debt	6854
service requirements for that year on the bonds or notes.	6855

(D)(1) The resolution levying the tax or increasing the rate	6856
of tax shall state the rate of the tax or the rate of the	6857
increase; the purpose or purposes for which it is to be levied;	6858
the number of years for which it is to be levied or that it is for	6859
a continuing period of time; the allocation method required by	6860
division (C) of this section; and if required to be submitted to	6861
the electors of the county under division (A) of this section, the	6862
date of the election at which the proposal shall be submitted to	6863
the electors of the county, which shall be not less than ninety	6864
days after the certification of a copy of the resolution to the	6865
board of elections and, if the tax is to be levied exclusively for	6866
the purpose set forth in division (A)(3) of this section, shall	6867
not occur in February or August of any year. Upon certification of	6868
the resolution to the board of elections, the board of county	6869
commissioners shall notify the tax commissioner in writing of the	6870
levy question to be submitted to the electors. If approved by a	6871
majority of the electors, the tax shall become effective on the	6872
first day of a calendar quarter next following the sixty-fifth day	6873
following the date the board of county commissioners and tax	6874
commissioner receive from the board of elections the certification	6875
of the results of the election, except as provided in division (E)	6876
of this section.	6877

(2)(a) A resolution specifying that the tax is to be used	6878
exclusively for the purpose set forth in division (A)(3) of this	6879
section that is not adopted as an emergency measure may direct the	6880
board of elections to submit the question of levying the tax or	6881
increasing the rate of the tax to the electors of the county at a	6882
special election held on the date specified by the board of county	6883
commissioners in the resolution, provided that the election occurs	6884
not less than ninety days after the resolution is certified to the	6885
board of elections and the election is not held in February or	6886
August of any year. Upon certification of the resolution to the	6887
board of elections, the board of county commissioners shall notify	6888
the tax commissioner in writing of the levy question to be	6889
submitted to the electors. No resolution adopted under division	6890
(D)(2)(a) of this section shall go into effect unless approved by	6891
a majority of those voting upon it and, except as provided in	6892
division (E) of this section, not until the first day of a	6893
calendar quarter following the expiration of sixty-five days from	6894
the date the tax commissioner receives notice from the board of	6895
elections of the affirmative vote.	6896

(b) A resolution specifying that the tax is to be used	6897
exclusively for the purpose set forth in division (A)(3) of this	6898
section that is adopted as an emergency measure shall become	6899
effective as provided in division (A) of this section, but may	6900
direct the board of elections to submit the question of repealing	6901
the tax or increase in the rate of the tax to the electors of the	6902
county at the next general election in the county occurring not	6903
less than ninety days after the resolution is certified to the	6904
board of elections. Upon certification of the resolution to the	6905
board of elections, the board of county commissioners shall notify	6906
the tax commissioner in writing of the levy question to be	6907
submitted to the electors. The ballot question shall be the same	6908
as that prescribed in section 5739.022 of the Revised Code. The	6909
board of elections shall notify the board of county commissioners	6910
and the tax commissioner of the result of the election immediately	6911
after the result has been declared. If a majority of the qualified	6912
electors voting on the question of repealing the tax or increase	6913
in the rate of the tax vote for repeal of the tax or repeal of the	6914
increase, the board of county commissioners, on the first day of a	6915
calendar quarter following the expiration of sixty-five days after	6916
the date the board and tax commissioner received notice of the	6917
result of the election, shall, in the case of a repeal of the tax,	6918
cease to levy the tax, or, in the case of a repeal of an increase	6919
in the rate of the tax, cease to levy the increased rate and levy	6920
the tax at the rate at which it was imposed immediately prior to	6921
the increase in rate.	6922

(c) A board of county commissioners, by resolution, may	6923
reduce the rate of a tax levied exclusively for the purpose set	6924
forth in division (A)(3) of this section to a lower rate	6925
authorized by this section. Any such reduction shall be made	6926
effective on the first day of the calendar quarter next following	6927
the sixty-fifth day after the tax commissioner receives a	6928
certified copy of the resolution from the board.	6929

(E) If a vendor that is registered with the central	6930
electronic registration system provided for in section 5740.05 of	6931
the Revised Code makes a sale in this state by printed catalog and	6932
the consumer computed the tax on the sale based on local rates	6933
published in the catalog, any tax levied or repealed or rate	6934
changed under this section shall not apply to such a sale until	6935
the first day of a calendar quarter following the expiration of	6936
one hundred twenty days from the date of notice by the tax	6937
commissioner pursuant to division (G) of this section.	6938

(F) The tax levied pursuant to this section shall be in	6939
addition to the tax levied by section 5739.02 of the Revised Code	6940
and any tax levied pursuant to section 5739.021 or 5739.023 of the	6941
Revised Code.	6942

A county that levies a tax pursuant to this section shall	6943
levy a tax at the same rate pursuant to section 5741.023 of the	6944
Revised Code.	6945

The additional tax levied by the county shall be collected	6946
pursuant to section 5739.025 of the Revised Code.	6947

Any tax levied pursuant to this section is subject to the	6948
exemptions provided in section 5739.02 of the Revised Code and in	6949
addition shall not be applicable to sales not within the taxing	6950
power of a county under the Constitution of the United States or	6951
the Ohio Constitution.	6952

(G) Upon receipt from a board of county commissioners of a	6953
certified copy of a resolution required by division (A) of this	6954
section, or from the board of elections a notice of the results of	6955
an election required by division (D)(1), (2)(a), (b), or (c) of	6956
this section, the tax commissioner shall provide notice of a tax	6957
rate change in a manner that is reasonably accessible to all	6958
affected vendors. The commissioner shall provide this notice at	6959
least sixty days prior to the effective date of the rate change.	6960
The commissioner, by rule, may establish the method by which	6961
notice will be provided.	6962

Sec. 5739.04. If modification of a county's jurisdictional	6963
boundaries or a transit authority's territory results in a change	6964
in the tax rate levied under section 5739.021, 5739.023, or	6965
5739.026 of the Revised Code, the tax commissioner, within thirty	6966
days of such change, shall notify any vendor that is registered	6967
with the central electronic registration system provided for in	6968
section 5740.05 of the Revised Code or the vendor's certified	6969
service provider, if the vendor has selected one, of such change.	6970
The rate change shall not apply to sales made by such vendor until	6971
the first day of a calendar quarter following the expiration of	6972
sixty days from the date of notice by the tax commissioner.	6973

Sec. 5739.17.  (A) No person shall engage in making retail	6974
sales subject to a tax imposed by or pursuant to section 5739.02,	6975
5739.021, 5739.023, or 5739.026 of the Revised Code as a business	6976
without having a license therefor, except as otherwise provided in	6977
divisions (A)(1), (2), and (3) of this section.	6978

(1) In the dissolution of a partnership by death, the	6979
surviving partner may operate under the license of the partnership	6980
for a period of sixty days.	6981

(2) The heirs or legal representatives of deceased persons,	6982
and receivers and trustees in bankruptcy, appointed by any	6983
competent authority, may operate under the license of the person	6984
so succeeded in possession.	6985

(3) Two or more persons who are not partners may operate a	6986
single place of business under one license. In such case neither	6987
the retirement of any such person from business at that place of	6988
business, nor the entrance of any person, under an existing	6989
arrangement, shall affect the license or require the issuance of a	6990
new license, unless the person retiring from the business is the	6991
individual named on the vendor's license.	6992

Except as otherwise provided in this section, each applicant	6993
for a license shall make out and deliver to the county auditor of	6994
each county in which the applicant desires to engage in business,	6995
upon a blank to be furnished by such auditor for that purpose, a	6996
statement showing the name of the applicant, each place of	6997
business in the county where the applicant will make retail sales,	6998
the nature of the business, and any other information the tax	6999
commissioner reasonably prescribes in the form of a statement	7000
prescribed by the commissioner.	7001

At the time of making the application, the applicant shall	7002
pay into the county treasury a license fee in the sum of	7003
twenty-five dollars for each fixed place of business in the county	7004
that will be the situs of retail sales. Upon receipt of the	7005
application and exhibition of the county treasurer's receipt,	7006
showing the payment of the license fee, the county auditor shall	7007
issue to the applicant a license for each fixed place of business	7008
designated in the application, authorizing the applicant to engage	7009
in business at that location. If	7010

(B) If a vendor's identity changes, the vendor shall apply	7011
for a new license. If a vendor wishes to move an existing fixed	7012
place of business to a new location within the same county, the	7013
vendor shall obtain a new vendor's license or submit a request to	7014
the tax commissioner to transfer the existing vendor's license to	7015
the new location. When the new location has been verified as being	7016
within the same county, the commissioner shall authorize the	7017
transfer and notify the county auditor of the change of location.	7018
If a vendor wishes to move an existing fixed place of business to	7019
another county, the vendor's license shall not transfer and the	7020
vendor shall obtain a new vendor's license from the county in	7021
which the business is to be located. The form of the license shall	7022
be prescribed by the commissioner. The fees collected shall be	7023
credited to the general fund of the county. If a vendor fails to	7024
notify the commissioner of a change of location of its fixed place	7025
of business or that its business has closed, the commissioner may	7026
cancel the vendor's license if ordinary mail sent to the location	7027
shown on the license is returned because of an undeliverable	7028
address.	7029

(C) The tax commissioner may establish or participate in a	7030
registration system whereby any vendor may obtain a vendor's	7031
license by submitting to the commissioner a vendor's license	7032
application and a license fee of twenty-five dollars for each	7033
fixed place of business at which the vendor intends to make retail	7034
sales. Under this registration system, the commissioner shall	7035
issue a vendor's license to the applicant on behalf of the county	7036
auditor of the county in which the applicant desires to engage in	7037
business, and shall forward a copy of the application and license	7038
fee to that county. All such license fees received by the	7039
commissioner for the issuance of vendor's licenses shall be	7040
deposited into the vendor's license application fund, which is	7041
hereby created in the state treasury. The commissioner shall	7042
certify to the director of budget and management within ten	7043
business days after the close of a month the license fees to be	7044
transmitted to each county from the vendor's license application	7045
fund for vendor's license applications received by the	7046
commissioner during that month. License fees transmitted to a	7047
county for which payment was not received by the commissioner may	7048
be netted against a future distribution to that county, including	7049
distributions made pursuant to section 5739.21 of the Revised	7050
Code.	7051

A vendor that makes retail sales subject to tax under Chapter	7052
5739. of the Revised Code pursuant to a permit issued by the	7053
division of liquor control shall obtain a vendor's license in the	7054
identical name and for the identical address as shown on the	7055
permit.	7056

Except as otherwise provided in this section, if a vendor has	7057
no fixed place of business and sells from a vehicle, each vehicle	7058
intended to be used within a county constitutes a place of	7059
business for the purpose of this section.	7060

(B)(D) As used in this divisionsection, "transient vendor"	7061
means any person who makes sales of tangible personal property	7062
from vending machines located on land owned by others, who leases	7063
titled motor vehicles, titled watercraft, or titled outboard	7064
motors, who effectuates leases that are taxed according to	7065
division (A)(2) of section 5739.02 of the Revised Code, or who, in	7066
the usual course of the person's business, transports inventory,	7067
stock of goods, or similar tangible personal property to a	7068
temporary place of business or temporary exhibition, show, fair,	7069
flea market, or similar event in a county in which the person has	7070
no fixed place of business, for the purpose of making retail sales	7071
of such property. A "temporary place of business" means any public	7072
or quasi-public place including, but not limited to, a hotel,	7073
rooming house, storeroom, building, part of a building, tent,	7074
vacant lot, railroad car, or motor vehicle that is temporarily	7075
occupied for the purpose of making retail sales of goods to the	7076
public. A place of business is not temporary if the same person	7077
conducted business at the place continuously for more than six	7078
months or occupied the premises as the person's permanent	7079
residence for more than six months, or if the person intends it to	7080
be a fixed place of business.	7081

Any transient vendor, in lieu of obtaining a vendor's license	7082
under division (A) of this section for counties in which the	7083
transient vendor has no fixed place of business, may apply to the	7084
tax commissioner, on a form prescribed by the commissioner, for a	7085
transient vendor's license. The transient vendor's license	7086
authorizes the transient vendor to make retail sales in any county	7087
in which the transient vendor does not maintain a fixed place of	7088
business. Any holder of a transient vendor's license shall not be	7089
required to obtain a separate vendor's license from the county	7090
auditor in that county. Upon the commissioner's determination that	7091
an applicant is a transient vendor, the applicant shall pay a	7092
license fee in the amount of twenty-five dollars, at which time	7093
the tax commissioner shall issue the license. The tax commissioner	7094
may require a vendor to be licensed as a transient vendor if, in	7095
the opinion of the commissioner, such licensing is necessary for	7096
the efficient administration of the tax.	7097

Any holder of a valid transient vendor's license may make	7098
retail sales at a temporary place of business or temporary	7099
exhibition, show, fair, flea market, or similar event, held	7100
anywhere in the state without complying with any provision of	7101
section 311.37 of the Revised Code. Any holder of a valid vendor's	7102
license may make retail sales as a transient vendor at a temporary	7103
place of business or temporary exhibition, show, fair, flea	7104
market, or similar event held in any county in which the vendor	7105
maintains a fixed place of business for which the vendor holds a	7106
vendor's license without obtaining a transient vendor's license.	7107

(C) As used in this division, "service vendor" means any	7108
person who, in the usual course of the person's business, sells	7109
services described in division (B)(3)(e), (f), (g), (h), (i), (j),	7110
(k), (l), (m), (p), or (t) of section 5739.01 of the Revised Code.	7111

Every service vendor shall make application to the tax	7112
commissioner for a service vendor's license. Each applicant shall	7113
pay a license fee in the amount of twenty-five dollars. Upon the	7114
commissioner's determination that an applicant is a service vendor	7115
and payment of the fee, the commissioner shall issue the applicant	7116
a service vendor's license.	7117

Only sales described in division (B)(3)(e), (f), (g), (h),	7118
(i), (j), (k), (l), (m), (p), or (t) of section 5739.01 of the	7119
Revised Code may be made under authority of a service vendor's	7120
license, and that license authorizes sales to be made at any place	7121
in this state. Any service vendor who makes sales of other	7122
services or tangible personal property subject to the sales tax	7123
also shall be licensed under division (A), (B), or (D) of this	7124
section.	7125

(D) As used in this division, "delivery vendor" means any	7126
vendor who engages in one or more of the activities described in	7127
divisions (D)(1) to (4) of this section, and who maintains no	7128
store, showroom, or similar fixed place of business or other	7129
location where merchandise regularly is offered for sale or	7130
displayed or shown in catalogs for selection or pick-up by	7131
consumers, or where consumers bring goods for repair or other	7132
service.	7133

(1) The vendor makes retail sales of tangible personal	7134
property;	7135

(2) The vendor rents or leases, at retail, tangible personal	7136
property, except titled motor vehicles, titled watercraft, or	7137
titled outboard motors;	7138

(3) The vendor provides a service, at retail, described in	7139
division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the	7140
Revised Code; or	7141

(4) The vendor makes retail sales of warranty, maintenance or	7142
service contracts, or similar agreements as described in division	7143
(B)(7) of section 5739.01 of the Revised Code.	7144

A transient vendor or a seller registered pursuant to section	7145
5741.17 of the Revised Code is not a delivery vendor.	7146

Delivery vendors shall apply to the tax commissioner, on a	7147
form prescribed by the commissioner, for a delivery vendor's	7148
license. Each applicant shall pay a license fee of twenty-five	7149
dollars for each delivery vendor's license, to be credited to the	7150
general revenue fund. Upon the commissioner's determination that	7151
the applicant is a delivery vendor, the commissioner shall issue	7152
the license. A delivery vendor's license authorizes retail sales	7153
to be made throughout the state. All sales of the vendor must be	7154
reported under the delivery license. The commissioner may require	7155
a vendor to be licensed as a delivery vendor if, in the opinion of	7156
the commissioner, such licensing is necessary for the efficient	7157
administration of the tax. The commissioner shall not issue a	7158
delivery vendor license to a vendor who holds a license issued	7159
under division (A) of this section.	7160

(E) Any transient vendor who is issued a license pursuant to	7161
this section shall display the license or a copy of it	7162
prominently, in plain view, at every place of business of the	7163
transient vendor. Every	7164

(F) No owner, organizer, or promoter who operates a fair,	7165
flea market, show, exhibition, convention, or similar event at	7166
which transient vendors are present shall fail to keep a	7167
comprehensive record of all such vendors, listing the vendor's	7168
name, permanent address, vendor's license number, and the type of	7169
goods sold. Such records shall be kept for four years and shall be	7170
open to inspection by the tax commissioner.	7171

(G) The commissioner may issue additional types of licenses	7172
if required to efficiently administer the tax imposed by this	7173
chapter.	7174

Sec. 5741.08. If modification of a county's jurisdictional	7175
boundaries or a transit authority's territory results in a change	7176
in the tax rate levied under section 5741.021, 5741.022, or	7177
5741.023 of the Revised Code, the tax commissioner, within thirty	7178
days of such change, shall notify any seller that is registered	7179
with the central electronic registration system provided for in	7180
section 5740.05 of the Revised Code or the seller's certified	7181
service provider, if the seller has selected one, of such change.	7182
The rate change shall not apply until the first day of a calendar	7183
quarter following the expiration of sixty days from the date of	7184
notice by the tax commissioner.	7185

Sec. 5743.20.  No person shall sell any cigarettes both as a	7186
retail dealer and as a wholesale dealer at the same place of	7187
business. No person other than a licensed wholesale dealer shall	7188
sell cigarettes to a licensed retail dealer. No retail dealer	7189
shall purchase cigarettes from any person other than a licensed	7190
wholesale dealer.	7191

Subject to section 5743.031 of the Revised Code, a licensed	7192
wholesale dealer may not sell cigarettes to any person in this	7193
state other than a licensed retail dealer, except a licensed	7194
wholesale dealer may sell cigarettes to another licensed wholesale	7195
dealer if the tax commissioner has authorized the sale of the	7196
cigarettes between those wholesale dealers and the wholesale	7197
dealer that sells the cigarettes received them directly from a	7198
licensed manufacturer or licensed importer.	7199

The tax commissioner shall adopt rules governing sales of	7200
cigarettes between licensed wholesale dealers, including rules	7201
establishing criteria for authorizing such sales.	7202

No manufacturer or importer shall sell cigarettes to any	7203
person in this state other than to a licensed wholesale dealer or	7204
licensed importer. No importer shall purchase cigarettes from any	7205
person other than a licensed manufacturer or licensed importer.	7206

A retail dealer may purchase other tobacco products only from	7207
a licensed distributor. A licensed distributor may sell tobacco	7208
products only to a retail dealer, except a licensed distributor	7209
may sell tobacco products to another licensed distributor if the	7210
tax commissioner has authorized the sale of the tobacco products	7211
between those distributors and the distributor that sells the	7212
tobacco products received them directly from a manufacturer or	7213
importer of tobacco products.	7214

The tax commissioner may adopt rules governing sales of	7215
tobacco products between licensed distributors, including rules	7216
establishing criteria for authorizing such sales.	7217

The identities of cigarette manufacturers and importers,	7218
licensed cigarette wholesalers, licensed distributors of other	7219
tobacco products, and registered manufacturers,and importers, and	7220
brokers of other tobacco products are subject to public	7221
disclosure. The tax commissioner shall maintain an alphabetical	7222
list of all such manufacturers, importers, wholesalers, and	7223
distributors, and brokers, shall post the list on a web site	7224
accessible to the public through the internet, and shall	7225
periodically update the web site posting.	7226

As used in this section, "licensed" means the manufacturer,	7227
importer, wholesale dealer, or distributor holds a current and	7228
valid license issued under section 5743.15 or 5743.61 of the	7229
Revised Code, and "registered" means registered with the tax	7230
commissioner under section 5743.66 of the Revised Code.	7231

Sec. 5743.61.  (A) Except as otherwise provided in this	7232
division, no distributor shall engage in the business of	7233
distributing tobacco products within this state without having a	7234
license issued by the department of taxation to engage in that	7235
business. On the dissolution of a partnership by death, the	7236
surviving partner may operate under the license of the partnership	7237
until the expiration of the license, and the heirs or legal	7238
representatives of deceased persons, and receivers and trustees in	7239
bankruptcy appointed by any competent authority, may operate under	7240
the license of the person succeeded in possession by the heir,	7241
representative, receiver, or trustee in bankruptcy if the partner	7242
or successor notifies the department of taxation of the	7243
dissolution or succession within thirty days after the dissolution	7244
or succession.	7245

(B)(1) Each applicant for a license to engage in the business	7246
of distributing tobacco products, annually, on or before the first	7247
day of February, shall make and deliver to the tax commissioner,	7248
upon a form furnished by the commissioner for that purpose, a	7249
statement showing the name of the applicant, each physical place	7250
from which the applicant distributes to distributors, retail	7251
dealers, or wholesale dealers, and any other information the	7252
commissioner considers necessary for the administration of	7253
sections 5743.51 to 5743.66 of the Revised Code.	7254

(2) At the time of making the license application, the	7255
applicant shall pay an application fee of one thousand dollars for	7256
each place listed on the application where the applicant proposes	7257
to carry on that business. The fee charged for the application	7258
shall accompany the application and shall be made payable to the	7259
treasurer of state for deposit into the cigarette tax enforcement	7260
fund.	7261

(3) Upon receipt of the application and payment of any	7262
licensing fee required by this section, the commissioner shall	7263
issue to the applicant a license for each place of distribution	7264
designated in the application authorizing the applicant to engage	7265
in business at that location for one year commencing on the first	7266
day of February. For licenses issued after the first day of	7267
February, the license application fee shall be reduced	7268
proportionately by the remainder of the twelve-month period for	7269
which the license is issued, except that the application fee	7270
required to be paid under this section shall be not less than two	7271
hundred dollars. If the original license is lost, destroyed, or	7272
defaced, a duplicate license may be obtained from the commissioner	7273
upon payment of a license replacement fee of twenty-five dollars.	7274

(C) The holder of a tobacco products license may transfer the	7275
license to a place of business on condition that the licensee's	7276
ownership and business structure remains unchanged and the	7277
licensee applies to the commissioner for the transfer on a form	7278
issued by the commissioner, and pays a transfer fee of twenty-five	7279
dollars.	7280

(D) If a distributor fails to file forms as required under	7281
Chapter 1346. or section 5743.52 of the Revised Code or pay the	7282
tax due for two consecutive periods or three periods during any	7283
twelve-month period, the commissioner may suspend the license	7284
issued to the distributor under this section. The suspension is	7285
effective ten days after the commissioner notifies the distributor	7286
of the suspension in writing personally or by certified mail. The	7287
commissioner shall lift the suspension when the distributor files	7288
the delinquent forms and pays the tax due, including any	7289
penalties, interest, and additional charges. The commissioner may	7290
refuse to issue the annual renewal of the license required by this	7291
section and may refuse to issue a new license for the same	7292
location until all delinquent forms are filed and outstanding	7293
taxes are paid. This division does not apply to any unpaid or	7294
underpaid tax liability that is the subject of a petition or	7295
appeal filed pursuant to section 5743.56, 5717.02, or 5717.04 of	7296
the Revised Code.	7297

(E)(1) The tax commissioner may impose a penalty of up to one	7298
thousand dollars on any person found to be engaging in the	7299
business of distributing tobacco products without a license as	7300
required by this section.	7301

(2) Any person engaging in the business of distributing	7302
tobacco products without a license as required by this section	7303
shall comply with divisions (B)(1) and (2) of this section within	7304
ten days after being notified of the requirement to do so. Failure	7305
to comply with division (E)(2) of this section subjects a person	7306
to penalties imposed under section 5743.99 of the Revised Code.	7307

Sec. 5743.66.  (A) Each manufacturer,or importer, or broker	7308
of tobacco products shall register with the tax commissioner	7309
before it sells or distributes tobacco products to distributors in	7310
this state, and, upon the request of the tax commissioner, shall	7311
provide complete information on sales made to distributors in this	7312
state and a current list of prices charged for tobacco products	7313
sold to distributors in this state.	7314

(B) On or before the last day of each month, every	7315
manufacturer,or importer, or broker of tobacco products shall	7316
file a report with the commissioner listing all sales of tobacco	7317
products to distributors located in this state during the	7318
preceding month and any other information the commissioner finds	7319
necessary for the proper administration of sections 5743.51 to	7320
5743.66 of the Revised Code.	7321

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

7322

(1) "Electronic technology" means electronic technology	7323
acceptable to the tax commissioner under division (B) of this	7324
section.	7325

(2) "Original tax return" means any report, return, or other	7326
tax document required to be filed under this chapter for the	7327
purpose of reporting the taxes due under, and withholdings	7328
required by, this chapter. "Original tax return" does not include	7329
an amended return or any declaration or form required by or filed	7330
in connection with section 5747.09 of the Revised Code.	7331

(3) "Related member" has the same meaning as in section	7332
5733.042 of the Revised Code.	7333

(4) "Tax return preparer" means any person that operates a	7334
business that prepares, or directly or indirectly employs another	7335
person to prepare, for a taxpayer an original tax return in	7336
exchange for compensation or remuneration from the taxpayer or the	7337
taxpayer's related member. With respect to the preparation of a	7338
return or application for refund under this chapter, "tax return	7339
preparer" does not include an individual who performs only one or	7340
more of the following activities:	7341

(a) Furnishes typing, reproducing, or other mechanical	7342
assistance;	7343

(b) Prepares an application for refund or a return on behalf	7344
of an employer by whom the individual is regularly and	7345
continuously employed, or on behalf of an officer or employee of	7346
that employer;	7347

(c) Prepares as a fiduciary an application for refund or a	7348
return;	7349

(d) Prepares an application for refund or a return for a	7350
taxpayer in response to a notice of deficiency issued to the	7351
taxpayer or the taxpayer's related member, or in response to a	7352
waiver of restriction after the commencement of an audit of the	7353
taxpayer or the taxpayer's related member.	7354

(B) Divisions (C) and (D) of this section apply to the filing	7355
of original tax returns that are due in a calendar year only if	7356
the tax commissioner, by the last day of the calendar year	7357
immediately preceding the calendar year in which such returns are	7358
due, has published on the department of taxation's official	7359
internet web site at least one method of electronic technology	7360
acceptable to the commissioner for filing such returns.	7361

(C) A tax return preparer that prepares more than	7362
seventy-five original tax returns during any calendar year that	7363
begins on or after January 1, 2008ends before January 1, 2013, or	7364
that prepares more than eleven original tax returns during any	7365
calendar year that begins on or after January 1, 2013, shall,	7366
beginning January 1, 2010, use electronic technology to file with	7367
the tax commissioner all original tax returns prepared by the tax	7368
return preparer. This division does not apply to a tax return	7369
preparer for ain any calendar year that ends before January 1,	7370
2013, if, during the previous calendar year, the tax return	7371
preparer prepared no more than twenty-five original tax returns.	7372
This division does not apply to a tax return preparer in any	7373
calendar year that begins on or after January 1, 2013, if, during	7374
the previous calendar year, the tax return preparer prepared not	7375
more than ten original tax returns.	7376

(D) If a tax return preparer required by this section to	7377
submit original tax returns by electronic technology files an	7378
original tax return by some means other than by electronic	7379
technology, the tax commissioner shall impose a penalty of fifty	7380
dollars for each return, in excess of seventy-five in a calendar	7381
year 2010, 2011, or 2012, or in excess of eleven in any calendar	7382
year thereafter, that is not filed by electronic technology. Upon	7383
good cause shown by the tax return preparer, the tax commissioner	7384
may waive all or any portion of the penalty or may refund all or	7385
any portion of the penalty the tax return preparer has paid.	7386

Sec. 5751.01.  As used in this chapter:

7387

(A) "Person" means, but is not limited to, individuals,	7388
combinations of individuals of any form, receivers, assignees,	7389
trustees in bankruptcy, firms, companies, joint-stock companies,	7390
business trusts, estates, partnerships, limited liability	7391
partnerships, limited liability companies, associations, joint	7392
ventures, clubs, societies, for-profit corporations, S	7393
corporations, qualified subchapter S subsidiaries, qualified	7394
subchapter S trusts, trusts, entities that are disregarded for	7395
federal income tax purposes, and any other entities.	7396

(B) "Consolidated elected taxpayer" means a group of two or	7397
more persons treated as a single taxpayer for purposes of this	7398
chapter as the result of an election made under section 5751.011	7399
of the Revised Code.	7400

(C) "Combined taxpayer" means a group of two or more persons	7401
treated as a single taxpayer for purposes of this chapter under	7402
section 5751.012 of the Revised Code.	7403

(D) "Taxpayer" means any person, or any group of persons in	7404
the case of a consolidated elected taxpayer or combined taxpayer	7405
treated as one taxpayer, required to register or pay tax under	7406
this chapter. "Taxpayer" does not include excluded persons.	7407

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

7408

(1) Any person with not more than one hundred fifty thousand	7409
dollars of taxable gross receipts during the calendar year.	7410
Division (E)(1) of this section does not apply to a person that is	7411
a member of a consolidated elected taxpayer;	7412

(2) A public utility that paid the excise tax imposed by	7413
section 5727.24 or 5727.30 of the Revised Code based on one or	7414
more measurement periods that include the entire tax period under	7415
this chapter, except that a public utility that is a combined	7416
company is a taxpayer with regard to the following gross receipts:	7417

(a) Taxable gross receipts directly attributed to a public	7418
utility activity, but not directly attributed to an activity that	7419
is subject to the excise tax imposed by section 5727.24 or 5727.30	7420
of the Revised Code;	7421

(b) Taxable gross receipts that cannot be directly attributed	7422
to any activity, multiplied by a fraction whose numerator is the	7423
taxable gross receipts described in division (E)(2)(a) of this	7424
section and whose denominator is the total taxable gross receipts	7425
that can be directly attributed to any activity;	7426

(c) Except for any differences resulting from the use of an	7427
accrual basis method of accounting for purposes of determining	7428
gross receipts under this chapter and the use of the cash basis	7429
method of accounting for purposes of determining gross receipts	7430
under section 5727.24 of the Revised Code, the gross receipts	7431
directly attributed to the activity of a natural gas company shall	7432
be determined in a manner consistent with division (D) of section	7433
5727.03 of the Revised Code.	7434

As used in division (E)(2) of this section, "combined	7435
company" and "public utility" have the same meanings as in section	7436
5727.01 of the Revised Code.	7437

(3) A financial institution, as defined in section 5725.01 of	7438
the Revised Code, that paid the corporation franchise tax charged	7439
by division (D) of section 5733.06 of the Revised Code based on	7440
one or more taxable years that include the entire tax period under	7441
this chapter;	7442

(4) A dealer in intangibles, as defined in section 5725.01 of	7443
the Revised Code, that paid the dealer in intangibles tax levied	7444
by division (D) of section 5707.03 of the Revised Code based on	7445
one or more measurement periods that include the entire tax period	7446
under this chapter;	7447

(5) A financial holding company as defined in the "Bank	7448
Holding Company Act," 12 U.S.C. 1841(p);	7449

(6) A bank holding company as defined in the "Bank Holding	7450
Company Act," 12 U.S.C. 1841(a);	7451

(7) A savings and loan holding company as defined in the	7452
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	7453
only in activities or investments permissible for a financial	7454
holding company under 12 U.S.C. 1843(k);	7455

(8) A person directly or indirectly owned by one or more	7456
financial institutions, financial holding companies, bank holding	7457
companies, or savings and loan holding companies described in	7458
division (E)(3), (5), (6), or (7) of this section that is engaged	7459
in activities permissible for a financial holding company under 12	7460
U.S.C. 1843(k), except that any such person held pursuant to	7461
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12	7462
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person	7463
directly or indirectly owned by one or more insurance companies	7464
described in division (E)(9) of this section that is authorized to	7465
do the business of insurance in this state.	7466

For the purposes of division (E)(8) of this section, a person	7467
owns another person under the following circumstances:	7468

(a) In the case of corporations issuing capital stock, one	7469
corporation owns another corporation if it owns fifty per cent or	7470
more of the other corporation's capital stock with current voting	7471
rights;	7472

(b) In the case of a limited liability company, one person	7473
owns the company if that person's membership interest, as defined	7474
in section 1705.01 of the Revised Code, is fifty per cent or more	7475
of the combined membership interests of all persons owning such	7476
interests in the company;	7477

(c) In the case of a partnership, trust, or other	7478
unincorporated business organization other than a limited	7479
liability company, one person owns the organization if, under the	7480
articles of organization or other instrument governing the affairs	7481
of the organization, that person has a beneficial interest in the	7482
organization's profits, surpluses, losses, or distributions of	7483
fifty per cent or more of the combined beneficial interests of all	7484
persons having such an interest in the organization;	7485

(d) In the case of multiple ownership, the ownership	7486
interests of more than one person may be aggregated to meet the	7487
fifty per cent ownership tests in this division only when each	7488
such owner is described in division (E)(3), (5), (6), or (7) of	7489
this section and is engaged in activities permissible for a	7490
financial holding company under 12 U.S.C. 1843(k) or is a person	7491
directly or indirectly owned by one or more insurance companies	7492
described in division (E)(9) of this section that is authorized to	7493
do the business of insurance in this state.	7494

(9) A domestic insurance company or foreign insurance	7495
company, as defined in section 5725.01 of the Revised Code, that	7496
paid the insurance company premiums tax imposed by section 5725.18	7497
or Chapter 5729. of the Revised Code, or an unauthorized insurance	7498
company whose gross premiums are subject to tax under section	7499
3905.36 of the Revised Code based on one or more measurement	7500
periods that include the entire tax period under this chapter;	7501

(10) A person that solely facilitates or services one or more	7502
securitizations or similar transactions for any person described	7503
in division (E)(3), (5), (6), (7), (8), or (9) of this section.	7504
For purposes of this division, "securitization" means transferring	7505
one or more assets to one or more persons and then issuing	7506
securities backed by the right to receive payment from the asset	7507
or assets so transferred.	7508

(11) Except as otherwise provided in this division, a	7509
pre-income tax trust as defined in division (FF)(4) of section	7510
5747.01 of the Revised Code and any pass-through entity of which	7511
such pre-income tax trust owns or controls, directly, indirectly,	7512
or constructively through related interests, more than five per	7513
cent of the ownership or equity interests. If the pre-income tax	7514
trust has made a qualifying pre-income tax trust election under	7515
division (FF)(3) of section 5747.01 of the Revised Code, then the	7516
trust and the pass-through entities of which it owns or controls,	7517
directly, indirectly, or constructively through related interests,	7518
more than five per cent of the ownership or equity interests,	7519
shall not be excluded persons for purposes of the tax imposed	7520
under section 5751.02 of the Revised Code.	7521

(12) Nonprofit organizations or the state and its agencies,	7522
instrumentalities, or political subdivisions.	7523

(F) Except as otherwise provided in divisions (F)(2), (3),	7524
and (4) of this section, "gross receipts" means the total amount	7525
realized by a person, without deduction for the cost of goods sold	7526
or other expenses incurred, that contributes to the production of	7527
gross income of the person, including the fair market value of any	7528
property and any services received, and any debt transferred or	7529
forgiven as consideration.	7530

(1) The following are examples of gross receipts:

7531

(a) Amounts realized from the sale, exchange, or other	7532
disposition of the taxpayer's property to or with another;	7533

(b) Amounts realized from the taxpayer's performance of	7534
services for another;	7535

(c) Amounts realized from another's use or possession of the	7536
taxpayer's property or capital;	7537

(d) Any combination of the foregoing amounts.

7538

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

7539

(a) Interest income except interest on credit sales;

7540

(b) Dividends and distributions from corporations, and	7541
distributive or proportionate shares of receipts and income from a	7542
pass-through entity as defined under section 5733.04 of the	7543
Revised Code;	7544

(c) Receipts from the sale, exchange, or other disposition of	7545
an asset described in section 1221 or 1231 of the Internal Revenue	7546
Code, without regard to the length of time the person held the	7547
asset. Notwithstanding section 1221 of the Internal Revenue Code,	7548
receipts from hedging transactions also are excluded to the extent	7549
the transactions are entered into primarily to protect a financial	7550
position, such as managing the risk of exposure to (i) foreign	7551
currency fluctuations that affect assets, liabilities, profits,	7552
losses, equity, or investments in foreign operations; (ii)	7553
interest rate fluctuations; or (iii) commodity price fluctuations.	7554
As used in division (F)(2)(c) of this section, "hedging	7555
transaction" has the same meaning as used in section 1221 of the	7556
Internal Revenue Code and also includes transactions accorded	7557
hedge accounting treatment under statement of financial accounting	7558
standards number 133 of the financial accounting standards board.	7559
For the purposes of division (F)(2)(c) of this section, the actual	7560
transfer of title of real or tangible personal property to another	7561
entity is not a hedging transaction.	7562

(d) Proceeds received attributable to the repayment,	7563
maturity, or redemption of the principal of a loan, bond, mutual	7564
fund, certificate of deposit, or marketable instrument;	7565

(e) The principal amount received under a repurchase	7566
agreement or on account of any transaction properly characterized	7567
as a loan to the person;	7568

(f) Contributions received by a trust, plan, or other	7569
arrangement, any of which is described in section 501(a) of the	7570
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	7571
1, Subchapter (D) of the Internal Revenue Code applies;	7572

(g) Compensation, whether current or deferred, and whether in	7573
cash or in kind, received or to be received by an employee, former	7574
employee, or the employee's legal successor for services rendered	7575
to or for an employer, including reimbursements received by or for	7576
an individual for medical or education expenses, health insurance	7577
premiums, or employee expenses, or on account of a dependent care	7578
spending account, legal services plan, any cafeteria plan	7579
described in section 125 of the Internal Revenue Code, or any	7580
similar employee reimbursement;	7581

(h) Proceeds received from the issuance of the taxpayer's own	7582
stock, options, warrants, puts, or calls, or from the sale of the	7583
taxpayer's treasury stock;	7584

(i) Proceeds received on the account of payments from	7585
insurance policies, except those proceeds received for the loss of	7586
business revenue;	7587

(j) Gifts or charitable contributions received; membership	7588
dues received by trade, professional, homeowners', or condominium	7589
associations; and payments received for educational courses,	7590
meetings, meals, or similar payments to a trade, professional, or	7591
other similar association; and fundraising receipts received by	7592
any person when any excess receipts are donated or used	7593
exclusively for charitable purposes;	7594

(k) Damages received as the result of litigation in excess of	7595
amounts that, if received without litigation, would be gross	7596
receipts;	7597

(l) Property, money, and other amounts received or acquired	7598
by an agent on behalf of another in excess of the agent's	7599
commission, fee, or other remuneration;	7600

(m) Tax refunds, other tax benefit recoveries, and	7601
reimbursements for the tax imposed under this chapter made by	7602
entities that are part of the same combined taxpayer or	7603
consolidated elected taxpayer group, and reimbursements made by	7604
entities that are not members of a combined taxpayer or	7605
consolidated elected taxpayer group that are required to be made	7606
for economic parity among multiple owners of an entity whose tax	7607
obligation under this chapter is required to be reported and paid	7608
entirely by one owner, pursuant to the requirements of sections	7609
5751.011 and 5751.012 of the Revised Code;	7610

(n) Pension reversions;

7611

(o) Contributions to capital;

7612

(p) Sales or use taxes collected as a vendor or an	7613
out-of-state seller on behalf of the taxing jurisdiction from a	7614
consumer or other taxes the taxpayer is required by law to collect	7615
directly from a purchaser and remit to a local, state, or federal	7616
tax authority;	7617

(q) In the case of receipts from the sale of cigarettes or	7618
tobacco products by a wholesale dealer, retail dealer,	7619
distributor, manufacturer, or seller, all as defined in section	7620
5743.01 of the Revised Code, an amount equal to the federal and	7621
state excise taxes paid by any person on or for such cigarettes or	7622
tobacco products under subtitle E of the Internal Revenue Code or	7623
Chapter 5743. of the Revised Code;	7624

(r) In the case of receipts from the sale of motor fuel by a	7625
licensed motor fuel dealer, licensed retail dealer, or licensed	7626
permissive motor fuel dealer, all as defined in section 5735.01 of	7627
the Revised Code, an amount equal to federal and state excise	7628
taxes paid by any person on such motor fuel under section 4081 of	7629
the Internal Revenue Code or Chapter 5735. of the Revised Code;	7630

(s) In the case of receipts from the sale of beer or	7631
intoxicating liquor, as defined in section 4301.01 of the Revised	7632
Code, by a person holding a permit issued under Chapter 4301. or	7633
4303. of the Revised Code, an amount equal to federal and state	7634
excise taxes paid by any person on or for such beer or	7635
intoxicating liquor under subtitle E of the Internal Revenue Code	7636
or Chapter 4301. or 4305. of the Revised Code;	7637

(t) Receipts realized by a new motor vehicle dealer or used	7638
motor vehicle dealer, as defined in section 4517.01 of the Revised	7639
Code, from the sale or other transfer of a motor vehicle, as	7640
defined in that section, to another motor vehicle dealer for the	7641
purpose of resale by the transferee motor vehicle dealer, but only	7642
if the sale or other transfer was based upon the transferee's need	7643
to meet a specific customer's preference for a motor vehicle;	7644

(u) Receipts from a financial institution described in	7645
division (E)(3) of this section for services provided to the	7646
financial institution in connection with the issuance, processing,	7647
servicing, and management of loans or credit accounts, if such	7648
financial institution and the recipient of such receipts have at	7649
least fifty per cent of their ownership interests owned or	7650
controlled, directly or constructively through related interests,	7651
by common owners;	7652

(v) Receipts realized from administering anti-neoplastic	7653
drugs and other cancer chemotherapy, biologicals, therapeutic	7654
agents, and supportive drugs in a physician's office to patients	7655
with cancer;	7656

(w) Funds received or used by a mortgage broker that is not a	7657
dealer in intangibles, other than fees or other consideration,	7658
pursuant to a table-funding mortgage loan or warehouse-lending	7659
mortgage loan. Terms used in division (F)(2)(w) of this section	7660
have the same meanings as in section 1322.01 of the Revised Code,	7661
except "mortgage broker" means a person assisting a buyer in	7662
obtaining a mortgage loan for a fee or other consideration paid by	7663
the buyer or a lender, or a person engaged in table-funding or	7664
warehouse-lending mortgage loans that are first lien mortgage	7665
loans.	7666

(x) Property, money, and other amounts received by a	7667
professional employer organization, as defined in section 4125.01	7668
of the Revised Code, from a client employer, as defined in that	7669
section, in excess of the administrative fee charged by the	7670
professional employer organization to the client employer;	7671

(y) In the case of amounts retained as commissions by a	7672
permit holder under Chapter 3769. of the Revised Code, an amount	7673
equal to the amounts specified under that chapter that must be	7674
paid to or collected by the tax commissioner as a tax and the	7675
amounts specified under that chapter to be used as purse money;	7676

(z) Qualifying distribution center receipts.

7677

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

7678

(I) "Qualifying distribution center receipts" means receipts	7679
of a supplier from qualified property that is delivered to a	7680
qualified distribution center, multiplied by a quantity that	7681
equals one minus the Ohio delivery percentage.	7682

(II) "Qualified property" means tangible personal property	7683
delivered to a qualified distribution center that is shipped to	7684
that qualified distribution center solely for further shipping by	7685
the qualified distribution center to another location in this	7686
state or elsewhere. "Further shipping" includes storing and	7687
repackaging such property into smaller or larger bundles, so long	7688
as such property is not subject to further manufacturing or	7689
processing.	7690

(III) "Qualified distribution center" means a warehouse or	7691
other similar facility in this state that, for the qualifying	7692
year, is operated by a person that is not part of a combined	7693
taxpayer group and that has a qualifying certificate. However, all	7694
warehouses or other similar facilities that are operated by	7695
persons in the same taxpayer group and that are located within one	7696
mile of each other shall be treated as one qualified distribution	7697
center.	7698

(IV) "Qualifying year" means the calendar year to which the	7699
qualifying certificate applies.	7700

(V) "Qualifying period" means the period of the first day of	7701
July of the second year preceding the qualifying year through the	7702
thirtieth day of June of the year preceding the qualifying year.	7703

(VI) "Qualifying certificate" means the certificate issued by	7704
the tax commissioner after the operator of a distribution center	7705
files an annual application with the commissioner. The application	7706
and annual fee shall be filed and paid for each qualified	7707
distribution center on or before the first day of September before	7708
the qualifying year or within forty-five days after the	7709
distribution center opens, whichever is later.	7710

The applicant must substantiate to the commissioner's	7711
satisfaction that, for the qualifying period, all persons	7712
operating the distribution center have more than fifty per cent of	7713
the cost of the qualified property shipped to a location such that	7714
it would be sitused outside this state under the provisions of	7715
division (E) of section 5751.033 of the Revised Code. The	7716
applicant must also substantiate that the distribution center	7717
cumulatively had costs from its suppliers equal to or exceeding	7718
five hundred million dollars during the qualifying period. (For	7719
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	7720
excludes any person that is part of the consolidated elected	7721
taxpayer group, if applicable, of the operator of the qualified	7722
distribution center.) The commissioner may require the applicant	7723
to have an independent certified public accountant certify that	7724
the calculation of the minimum thresholds required for a qualified	7725
distribution center by the operator of a distribution center has	7726
been made in accordance with generally accepted accounting	7727
principles. The commissioner shall issue or deny the issuance of a	7728
certificate within sixty days after the receipt of the	7729
application. A denial is subject to appeal under section 5717.02	7730
of the Revised Code. If the operator files a timely appeal under	7731
section 5717.02 of the Revised Code, the operator shall be granted	7732
a qualifying certificate, provided that the operator is liable for	7733
any tax, interest, or penalty upon amounts claimed as qualifying	7734
distribution center receipts, other than those receipts exempt	7735
under division (C)(1) of section 5751.011 of the Revised Code,	7736
that would have otherwise not been owed by its suppliers if the	7737
qualifying certificate was valid.	7738

(VII) "Ohio delivery percentage" means the proportion of the	7739
total property delivered to a destination inside Ohio from the	7740
qualified distribution center during the qualifying period	7741
compared with total deliveries from such distribution center	7742
everywhere during the qualifying period.	7743

(ii) If the distribution center is new and was not open for	7744
the entire qualifying period, the operator of the distribution	7745
center may request that the commissioner grant a qualifying	7746
certificate. If the certificate is granted and it is later	7747
determined that more than fifty per cent of the qualified property	7748
during that year was not shipped to a location such that it would	7749
be sitused outside of this state under the provisions of division	7750
(E) of section 5751.033 of the Revised Code or if it is later	7751
determined that the person that operates the distribution center	7752
had average monthly costs from its suppliers of less than forty	7753
million dollars during that year, then the operator of the	7754
distribution center shall be liable for any tax, interest, or	7755
penalty upon amounts claimed as qualifying distribution center	7756
receipts, other than those receipts exempt under division (C)(1)	7757
of section 5751.011 of the Revised Code, that would have not	7758
otherwise been owed by its suppliers during the qualifying year if	7759
the qualifying certificate was valid. (For purposes of division	7760
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	7761
is part of the consolidated elected taxpayer group, if applicable,	7762
of the operator of the qualified distribution center.)	7763

(iii) When filing an application for a qualifying certificate	7764
under division (F)(2)(z)(i)(VI) of this section, the operator of a	7765
qualified distribution center also shall provide documentation, as	7766
the commissioner requires, for the commissioner to ascertain the	7767
Ohio delivery percentage. The commissioner, upon issuing the	7768
qualifying certificate, also shall certify the Ohio delivery	7769
percentage. The operator of the qualified distribution center may	7770
appeal the commissioner's certification of the Ohio delivery	7771
percentage in the same manner as an appeal is taken from the	7772
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	7773
of this section.	7774

Within thirty days after all appeals have been exhausted, the	7775
operator of the qualified distribution center shall notify the	7776
affected suppliers of qualified property that such suppliers are	7777
required to file, within sixty days after receiving notice from	7778
the operator of the qualified distribution center, amended reports	7779
for the impacted calendar quarter or quarters or calendar year,	7780
whichever the case may be. Any additional tax liability or tax	7781
overpayment shall be subject to interest but shall not be subject	7782
to the imposition of any penalty so long as the amended returns	7783
are timely filed. The supplier of tangible personal property	7784
delivered to the qualified distribution center shall include in	7785
its report of taxable gross receipts the receipts from the total	7786
sales of property delivered to the qualified distribution center	7787
for the calendar quarter or calendar year, whichever the case may	7788
be, multiplied by the Ohio delivery percentage for the qualifying	7789
year. Nothing in division (F)(2)(z)(iii) of this section shall be	7790
construed as imposing liability on the operator of a qualified	7791
distribution center for the tax imposed by this chapter arising	7792
from any change to the Ohio delivery percentage.	7793

(iv) In the case where the distribution center is new and not	7794
open for the entire qualifying period, the operator shall make a	7795
good faith estimate of an Ohio delivery percentage for use by	7796
suppliers in their reports of taxable gross receipts for the	7797
remainder of the qualifying period. The operator of the facility	7798
shall disclose to the suppliers that such Ohio delivery percentage	7799
is an estimate and is subject to recalculation. By the due date of	7800
the next application for a qualifying certificate, the operator	7801
shall determine the actual Ohio delivery percentage for the	7802
estimated qualifying period and proceed as provided in division	7803
(F)(2)(z)(iii) of this section with respect to the calculation and	7804
recalculation of the Ohio delivery percentage. The supplier is	7805
required to file, within sixty days after receiving notice from	7806
the operator of the qualified distribution center, amended reports	7807
for the impacted calendar quarter or quarters or calendar year,	7808
whichever the case may be. Any additional tax liability or tax	7809
overpayment shall be subject to interest but shall not be subject	7810
to the imposition of any penalty so long as the amended returns	7811
are timely filed.	7812

(v) Qualifying certificates and Ohio delivery percentages	7813
issued by the commissioner shall be open to public inspection and	7814
shall be timely published by the commissioner. A supplier relying	7815
in good faith on a certificate issued under this division shall	7816
not be subject to tax on the qualifying distribution center	7817
receipts under division (F)(2)(z) of this section. A person	7818
receiving a qualifying certificate is responsible for paying the	7819
tax, interest, and penalty upon amounts claimed as qualifying	7820
distribution center receipts that would not otherwise have been	7821
owed by the supplier if the qualifying certificate were available	7822
when it is later determined that the qualifying certificate should	7823
not have been issued because the statutory requirements were in	7824
fact not met.	7825

(vi) The annual fee for a qualifying certificate shall be one	7826
hundred thousand dollars for each qualified distribution center.	7827
If a qualifying certificate is not issued, the annual fee is	7828
subject to refund after the exhaustion of all appeals provided for	7829
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	7830
under this division may be assessed in the same manner as the tax	7831
imposed under this chapter. The first one hundred thousand dollars	7832
of the annual application fees collected each calendar year shall	7833
be credited to the commercial activity tax administrativerevenue	7834
enhancement fund. The remainder of the annual application fees	7835
collected shall be distributed in the same manner required under	7836
section 5751.20 of the Revised Code.	7837

(vii) The tax commissioner may require that adequate security	7838
be posted by the operator of the distribution center on appeal	7839
when the commissioner disagrees that the applicant has met the	7840
minimum thresholds for a qualified distribution center as set	7841
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	7842
section.	7843

(aa) Receipts of an employer from payroll deductions relating	7844
to the reimbursement of the employer for advancing moneys to an	7845
unrelated third party on an employee's behalf;	7846

(bb) Cash discounts allowed and taken;

7847

(cc) Returns and allowances;

7848

(dd) Bad debts from receipts on the basis of which the tax	7849
imposed by this chapter was paid in a prior quarterly tax payment	7850
period. For the purpose of this division, "bad debts" means any	7851
debts that have become worthless or uncollectible between the	7852
preceding and current quarterly tax payment periods, have been	7853
uncollected for at least six months, and that may be claimed as a	7854
deduction under section 166 of the Internal Revenue Code and the	7855
regulations adopted under that section, or that could be claimed	7856
as such if the taxpayer kept its accounts on the accrual basis.	7857
"Bad debts" does not include repossessed property, uncollectible	7858
amounts on property that remains in the possession of the taxpayer	7859
until the full purchase price is paid, or expenses in attempting	7860
to collect any account receivable or for any portion of the debt	7861
recovered;	7862

(ee) Any amount realized from the sale of an account	7863
receivable to the extent the receipts from the underlying	7864
transaction giving rise to the account receivable were included in	7865
the gross receipts of the taxpayer;	7866

(ff) Any receipts directly attributed to providing public	7867
services pursuant to sections 126.60 to 126.605 of the Revised	7868
Code, or any receipts directly attributed to a transfer agreement	7869
or to the enterprise transferred under that agreement under	7870
section 4313.02 of the Revised Code.	7871

(gg) Any receipts for which the tax imposed by this chapter	7872
is prohibited by the Constitution or laws of the United States or	7873
the Constitution of Ohio.	7874

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

7875

(I) "Qualified uranium receipts" means receipts from the	7876
sale, exchange, lease, loan, production, processing, or other	7877
disposition of uranium within a uranium enrichment zone certified	7878
by the tax commissioner under division (F)(2)(hh)(ii)	7879
(F)(2)(gg)(ii) of this section. "Qualified uranium receipts" does	7880
not include any receipts with a situs in this state outside a	7881
uranium enrichment zone certified by the tax commissioner under	7882
division (F)(2)(hh)(ii)(F)(2)(gg)(ii) of this section.	7883

(II) "Uranium enrichment zone" means all real property that	7884
is part of a uranium enrichment facility licensed by the United	7885
States nuclear regulatory commission and that was or is owned or	7886
controlled by the United States department of energy or its	7887
successor.	7888

(ii) Any person that owns, leases, or operates real or	7889
tangible personal property constituting or located within a	7890
uranium enrichment zone may apply to the tax commissioner to have	7891
the uranium enrichment zone certified for the purpose of excluding	7892
qualified uranium receipts under division (F)(2)(hh)(F)(2)(gg) of	7893
this section. The application shall include such information that	7894
the tax commissioner prescribes. Within sixty days after receiving	7895
the application, the tax commissioner shall certify the zone for	7896
that purpose if the commissioner determines that the property	7897
qualifies as a uranium enrichment zone as defined in division	7898
(F)(2)(hh)(F)(2)(gg) of this section, or, if the tax commissioner	7899
determines that the property does not qualify, the commissioner	7900
shall deny the application or request additional information from	7901
the applicant. If the tax commissioner denies an application, the	7902
commissioner shall state the reasons for the denial. The applicant	7903
may appeal the denial of an application to the board of tax	7904
appeals pursuant to section 5717.02 of the Revised Code. If the	7905
applicant files a timely appeal, the tax commissioner shall	7906
conditionally certify the applicant's property. The conditional	7907
certification shall expire when all of the applicant's appeals are	7908
exhausted. Until final resolution of the appeal, the applicant	7909
shall retain the applicant's records in accordance with section	7910
5751.12 of the Revised Code, notwithstanding any time limit on the	7911
preservation of records under that section.	7912

(ii)(hh) Amounts realized by licensed motor fuel dealers or	7913
licensed permissive motor fuel dealers from the exchange of	7914
petroleum products, including motor fuel, between such dealers,	7915
provided that delivery of the petroleum products occurs at a	7916
refinery, terminal, pipeline, or marine vessel and that the	7917
exchanging dealers agree neither dealer shall require monetary	7918
compensation from the other for the value of the exchanged	7919
petroleum products other than such compensation for differences in	7920
product location or grade. Division (F)(2)(ii)(F)(2)(hh) of this	7921
section does not apply to amounts realized as a result of	7922
differences in location or grade of exchanged petroleum products	7923
or from handling, lubricity, dye, or other additive injections	7924
fees, pipeline security fees, or similar fees. As used in this	7925
division, "motor fuel," "licensed motor fuel dealer," "licensed	7926
permissive motor fuel dealer," and "terminal" have the same	7927
meanings as in section 5735.01 of the Revised Code.	7928

(hh)(ii) In the case of amounts collected by a licensed	7929
casino operator from casino gaming, amounts in excess of the	7930
casino operator's gross casino revenue. In this division, "casino	7931
operator" and "casino gaming" have the meanings defined in section	7932
3772.01 of the Revised Code, and "gross casino revenue" has the	7933
meaning defined in section 5753.01 of the Revised Code.	7934

(jj) Any receipts for which the tax imposed by this chapter	7935
is prohibited by the constitution or laws of the United States or	7936
the constitution of this state.	7937

(3) In the case of a taxpayer when acting as a real estate	7938
broker, "gross receipts" includes only the portion of any fee for	7939
the service of a real estate broker, or service of a real estate	7940
salesperson associated with that broker, that is retained by the	7941
broker and not paid to an associated real estate salesperson or	7942
another real estate broker. For the purposes of this division,	7943
"real estate broker" and "real estate salesperson" have the same	7944
meanings as in section 4735.01 of the Revised Code.	7945

(4) A taxpayer's method of accounting for gross receipts for	7946
a tax period shall be the same as the taxpayer's method of	7947
accounting for federal income tax purposes for the taxpayer's	7948
federal taxable year that includes the tax period. If a taxpayer's	7949
method of accounting for federal income tax purposes changes, its	7950
method of accounting for gross receipts under this chapter shall	7951
be changed accordingly.	7952

(G) "Taxable gross receipts" means gross receipts sitused to	7953
this state under section 5751.033 of the Revised Code.	7954

(H) A person has "substantial nexus with this state" if any	7955
of the following applies. The person:	7956

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

7957

(2) Holds a certificate of compliance with the laws of this	7958
state authorizing the person to do business in this state;	7959

(3) Has bright-line presence in this state;

7960

(4) Otherwise has nexus with this state to an extent that the	7961
person can be required to remit the tax imposed under this chapter	7962
under the Constitution of the United States.	7963

(I) A person has "bright-line presence" in this state for a	7964
reporting period and for the remaining portion of the calendar	7965
year if any of the following applies. The person:	7966

(1) Has at any time during the calendar year property in this	7967
state with an aggregate value of at least fifty thousand dollars.	7968
For the purpose of division (I)(1) of this section, owned property	7969
is valued at original cost and rented property is valued at eight	7970
times the net annual rental charge.	7971

(2) Has during the calendar year payroll in this state of at	7972
least fifty thousand dollars. Payroll in this state includes all	7973
of the following:	7974

(a) Any amount subject to withholding by the person under	7975
section 5747.06 of the Revised Code;	7976

(b) Any other amount the person pays as compensation to an	7977
individual under the supervision or control of the person for work	7978
done in this state; and	7979

(c) Any amount the person pays for services performed in this	7980
state on its behalf by another.	7981

(3) Has during the calendar year taxable gross receipts of at	7982
least five hundred thousand dollars.	7983

(4) Has at any time during the calendar year within this	7984
state at least twenty-five per cent of the person's total	7985
property, total payroll, or total gross receipts.	7986

(5) Is domiciled in this state as an individual or for	7987
corporate, commercial, or other business purposes.	7988

(J) "Tangible personal property" has the same meaning as in	7989
section 5739.01 of the Revised Code.	7990

(K) "Internal Revenue Code" means the Internal Revenue Code	7991
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	7992
this chapter that is not otherwise defined has the same meaning as	7993
when used in a comparable context in the laws of the United States	7994
relating to federal income taxes unless a different meaning is	7995
clearly required. Any reference in this chapter to the Internal	7996
Revenue Code includes other laws of the United States relating to	7997
federal income taxes.	7998

(L) "Calendar quarter" means a three-month period ending on	7999
the thirty-first day of March, the thirtieth day of June, the	8000
thirtieth day of September, or the thirty-first day of December.	8001

(M) "Tax period" means the calendar quarter or calendar year	8002
on the basis of which a taxpayer is required to pay the tax	8003
imposed under this chapter.	8004

(N) "Calendar year taxpayer" means a taxpayer for which the	8005
tax period is a calendar year.	8006

(O) "Calendar quarter taxpayer" means a taxpayer for which	8007
the tax period is a calendar quarter.	8008

(P) "Agent" means a person authorized by another person to	8009
act on its behalf to undertake a transaction for the other,	8010
including any of the following:	8011

(1) A person receiving a fee to sell financial instruments;

8012

(2) A person retaining only a commission from a transaction	8013
with the other proceeds from the transaction being remitted to	8014
another person;	8015

(3) A person issuing licenses and permits under section	8016
1533.13 of the Revised Code;	8017

(4) A lottery sales agent holding a valid license issued	8018
under section 3770.05 of the Revised Code;	8019

(5) A person acting as an agent of the division of liquor	8020
control under section 4301.17 of the Revised Code.	8021

(Q) "Received" includes amounts accrued under the accrual	8022
method of accounting.	8023

(R) "Reporting person" means a person in a consolidated	8024
elected taxpayer or combined taxpayer group that is designated by	8025
that group to legally bind the group for all filings and tax	8026
liabilities and to receive all legal notices with respect to	8027
matters under this chapter, or, for the purposes of section	8028
5751.04 of the Revised Code, a separate taxpayer that is not a	8029
member of such a group.	8030

Sec. 5751.011.  (A) A group of two or more persons may elect	8031
to be a consolidated elected taxpayer for the purposes of this	8032
chapter if the group satisfies all of the following requirements:	8033

(1) The group elects to include all persons, including	8034
persons enumerated in divisions (E)(2) to (10) of section 5751.01	8035
of the Revised Code, having at least eighty per cent, or having at	8036
least fifty per cent, of the value of their ownership interests	8037
owned or controlled, directly or constructively through related	8038
interests, by common owners during all or any portion of the tax	8039
period, together with the common owners.	8040

A group making its initial election on the basis of the	8041
eighty per cent ownership test may change its election so that its	8042
consolidated elected taxpayer group is formed on the basis of the	8043
fifty per cent ownership test if all of the following are	8044
satisfied:	8045

(a) When the initial election was made, the group did not	8046
have any persons satisfying the fifty per cent ownership test;	8047

(b) One or more of the persons in the initial group	8048
subsequently acquires ownership interests in a person such that	8049
the fifty per cent ownership test is satisfied, the eighty per	8050
cent ownership test is not satisfied, and the acquired person	8051
would be required to be included in a combined taxpayer group	8052
under section 5751.012 of the Revised Code;	8053

(c) The group requests the change in a written request	8054
writing to the tax commissioner on or before the due date for	8055
filing the first return due under section 5751.051 of the Revised	8056
Code after the date of the acquisitionas required by division (D)	8057
of this section;	8058

(d) The group has not previously changed its election.

8059

At the election of the group, all entities that are not	8060
incorporated or formed under the laws of a state or of the United	8061
States and that meet the consolidated elected ownership test shall	8062
either be included in the group or all shall be excluded from the	8063
group. If, at the time of registration, the group does not include	8064
any such entities that meet the consolidated elected ownership	8065
test, the group shall elect to either include or exclude the newly	8066
acquired entities before the due date of the first return due	8067
after the date of the acquisition.	8068

Each group shall notify the tax commissioner of the foregoing	8069
elections before the due date of the return for the period in	8070
which the election becomes binding. If fifty per cent of the value	8071
of a person's ownership interests is owned or controlled by each	8072
of two consolidated elected taxpayer groups formed under the fifty	8073
per cent ownership or control test, that person is a member of	8074
each group for the purposes of this section, and each group shall	8075
include in the group's taxable gross receipts fifty per cent of	8076
that person's taxable gross receipts. Otherwise, all of that	8077
person's taxable gross receipts shall be included in the taxable	8078
gross receipts of the consolidated elected taxpayer group of which	8079
the person is a member. In no event shall the ownership or control	8080
of fifty per cent of the value of a person's ownership interests	8081
by two otherwise unrelated groups form the basis for consolidating	8082
the groups into a single consolidated elected taxpayer group or	8083
permit any exclusion under division (C) of this section of taxable	8084
gross receipts between members of the two groups. Division (A)(3)	8085
of this section applies with respect to the elections described in	8086
this division.	8087

(2) The group makes the election to be treated as a	8088
consolidated elected taxpayer in the manner prescribed under	8089
division (D) of this section.	8090

(3) Subject to review and audit by the tax commissioner, the	8091
group agrees that all of the following apply:	8092

(a) The group shall file reports as a single taxpayer for at	8093
least the next eight calendar quarters following the election so	8094
long as at least two or more of the members of the group meet the	8095
requirements of division (A)(1) of this section.	8096

(b) Before the expiration of the eighth such calendar	8097
quarter, the group shall notify the commissioner if it elects to	8098
cancel its designation as a consolidated elected taxpayer. If the	8099
group does not so notify the tax commissioner, the election	8100
remains in effect for another eight calendar quarters.	8101

(c) If, at any time during any of those eight calendar	8102
quarters following the election, a former member of the group no	8103
longer meets the requirements under division (A)(1) of this	8104
section, that member shall report and pay the tax imposed under	8105
this chapter separately, as a member of a combined taxpayer, or,	8106
if the former member satisfies such requirements with respect to	8107
another consolidated elected group, as a member of that	8108
consolidated elected group.	8109

(d) The group agrees to the application of division (B) of	8110
this section.	8111

(B) A group of persons making the election under this section	8112
shall report and pay tax on all of the group's taxable gross	8113
receipts even if substantial nexus with this state does not exist	8114
for one or more persons in the group.	8115

(C)(1)(a) Members of a consolidated elected taxpayer group	8116
shall exclude gross receipts among persons included in the	8117
consolidated elected taxpayer group.	8118

(b) Subject to divisions (C)(1)(c) and (C)(2) of this	8119
section, nothing in this section shall have the effect of	8120
requiring a consolidated elected taxpayer group to include gross	8121
receipts received by a person enumerated in divisions (E)(2) to	8122
(10) of section 5751.01 of the Revised Code if that person is a	8123
member of the group pursuant to the elections made by the group	8124
under division (A)(1) of this section.	8125

(c)(i) As used in division (C)(1)(c) of this section, "dealer	8126
transfer" means a transfer of property that satisfies both of the	8127
following: (I) the property is directly transferred by any means	8128
from one member of the group to another member of the group that	8129
is a dealer in intangibles but is not a qualifying dealer as	8130
defined in section 5707.031 of the Revised Code; and (II) the	8131
property is subsequently delivered by the dealer in intangibles to	8132
a person that is not a member of the group.	8133

(ii) In the event of a dealer transfer, a consolidated	8134
elected taxpayer group shall not exclude, under division (C) of	8135
this section, gross receipts from the transfer described in	8136
division (C)(1)(c)(i)(I) of this section.	8137

(2) Gross receipts related to the sale or transmission of	8138
electricity through the use of an intermediary regional	8139
transmission organization approved by the federal energy	8140
regulatory commission shall be excluded from taxable gross	8141
receipts under division (C)(1) of this section if all other	8142
requirements of that division are met, even if the receipts are	8143
from and to the same member of the group.	8144

(D) To make the election to be a consolidated elected	8145
taxpayer, a group of persons shall notify the tax commissioner of	8146
the election in the manner prescribed by the commissioner and pay	8147
the commissioner a registration fee equal to the lesser of two	8148
hundred dollars or twenty dollars for each person in the group. No	8149
additional fee shall be imposed for the addition of new members to	8150
the group once the group has remitted a fee in the amount of two	8151
hundred dollars. The electionon a form prescribed by the	8152
commissioner for that purpose, which shall be signed by one or	8153
more individuals with authority, separately or together, to make a	8154
binding election on behalf of all persons in the group. Elections	8155
under division (A) of this section shall be made and the fee paid	8156
on or before the beginning ofdue date for filing the first	8157
calendar quarter to whichreturn due after the election applies.	8158
The fee shall be collected and used in the same manner as provided	8159
in section 5751.04 of the Revised Code.	8160

The election shall be made on a form prescribed by the tax	8161
commissioner for that purpose and shall be signed by one or more	8162
individuals with authority, separately or together, to make a	8163
binding election on behalf of all persons in the group.	8164

Any person acquired or formed after the filing of the	8165
registration shall be included in the group if the person meets	8166
the requirements of division (A)(1) of this section, and the group	8167
shall notify the tax commissioner of any additions to the group	8168
with the next tax return it files withon a form prescribed by the	8169
commissioner for such purpose.	8170

Sec. 5751.012.  (A) All persons, other than persons	8171
enumerated in divisions (E)(2) to (10) of section 5751.01 of the	8172
Revised Code, having more than fifty per cent of the value of	8173
their ownership interest owned or controlled, directly or	8174
constructively through related interests, by common owners during	8175
all or any portion of the tax period, together with the common	8176
owners, shall be members of a combined taxpayer group if those	8177
persons are not members of a consolidated elected taxpayer group	8178
pursuant to an election under section 5751.011 of the Revised	8179
Code.	8180

(B) A combined taxpayer group shall register, file returns,	8181
and pay taxes under this chapter as a single taxpayer.	8182

(C) A combined taxpayerand shall neither exclude taxable	8183
gross receipts between its members nor from others that are not	8184
members.	8185

(D) A combined taxpayer shall pay to the tax commissioner a	8186
registration fee equal to the lesser of two hundred dollars or	8187
twenty dollars for each person in the group. No additional fee	8188
shall be imposed for the addition of new members to the group once	8189
the group has remitted a fee in the amount of two hundred dollars.	8190
The fee shall be timely paid before the later of the beginning of	8191
the first calendar quarter or November 15, 2005. The fee shall be	8192
collected and used in the same manner as provided in section	8193
5751.04 of the Revised Code.	8194

(C) Any person acquired or formed after the filing of the	8195
registration shall be included in the group if the person meets	8196
the requirements of division (A) of this section, and the group	8197
must notify the tax commissioner of any additions with the next	8198
quarterly tax return it files withto the group on a form	8199
prescribed by the commissioner for such purpose.	8200

Sec. 5751.03.  (A) Except as provided in divisionsdivision	8201
(B) and (D) of this section and in sectionssection 5751.031 and	8202
5751.032 of the Revised Code, the tax levied under this section	8203
for each tax period shall be the product of two and six-tenths	8204
mills per dollar times the remainder of the taxpayer's taxable	8205
gross receipts for the tax period after subtracting the exclusion	8206
amount provided for in division (C) of this section.	8207

(B) Notwithstanding division (C) of this section, the tax on	8208
the first one million dollars in taxable gross receipts each	8209
calendar year shall be one hundred fifty dollars. For calendar	8210
year 2006, the tax imposed under this division shall be paid not	8211
later than May 10, 2006, by both calendar year taxpayers and	8212
calendar quarter taxpayers. For calendar years 2007, 2008, and	8213
2009, the tax imposed under this division shall be paid with the	8214
fourth-quarter tax return or annual tax return for the prior	8215
calendar year by both calendar year taxpayers and calendar quarter	8216
taxpayers. For calendar years 2010 and thereafter, theThe tax	8217
imposed under this division shall be paid not later than the tenth	8218
day of May of each year along with the first quarter or annual tax	8219
return, as applicable.	8220

(C)(1) Each calendar quarter taxpayer may exclude the first	8221
two hundred fifty thousandone million dollars of taxable gross	8222
receipts for a calendar quarteryear. Calendar quarter taxpayers	8223
shall apply the full exclusion amount to the first calendar	8224
quarter return the taxpayer files that calendar year and may carry	8225
forward and apply any unused exclusion amount to the three	8226
subsequent calendar quarters within that same calendar year. Each	8227
calendar year taxpayer may exclude the first one million dollars	8228
of taxable gross receipts for a calendar year.	8229

(2) A taxpayer switching from a calendar year tax period to a	8230
calendar quarter tax period may, for the first quarter of the	8231
change, apply the prior calendar quarterfull one-million-dollar	8232
exclusion amountsamount to the first calendar quarter return the	8233
taxpayer files that calendar year. Such taxpayers may carry	8234
forward and apply any unused exclusion amount to subsequent	8235
calendar quarters within that same calendar year. The tax rate	8236
shall be based on the rate imposed that calendar quarter when the	8237
taxpayer switches from a calendar year to a calendar quarter tax	8238
period.	8239

(D) There is hereby allowed a credit against the tax imposed	8240
under this chapter for each of the following calendar years if a	8241
transfer was made in the preceding calendar year from the general	8242
revenue fund to the commercial activity tax refund fund under	8243
division (D) of section 5751.032 of the Revised Code: calendar	8244
years 2008, 2010, and 2012. The credit is allowed for taxpayers	8245
that paid in full the tax imposed under this chapter for the	8246
calendar year in which the transfer was made. The amount of a	8247
taxpayer's credit equals the amount computed under division (D) of	8248
section 5751.032 of the Revised Code(3) A taxpayer shall not	8249
exclude more than one million dollars pursuant to division (C) of	8250
this section in a calendar year.	8251

Sec. 5751.04. (A) As used in this section, "person" includes	8252
a reporting person.	8253

(B) Not later than thirty days after a person first has more	8254
than one hundred fifty thousand dollars in taxable gross receipts	8255
in a calendar year, each person subject to this chapter shall	8256
register with the tax commissioner on the form prescribed by the	8257
commissioner. The form shall include the following:	8258

(1) The person's name;

8259

(2) If applicable, the name of the state or country under the	8260
laws of which the person is incorporated;	8261

(3) If applicable, the location of a person's principal	8262
office and the name and address of the officer or agent of the	8263
corporation in charge of the business;	8264

(4) If applicable, the names of the person's president,	8265
secretary, treasurer, and statutory agent designated pursuant to	8266
section 1703.041 of the Revised Code, with the post office address	8267
of each;	8268

(5)The person's primary address;

8269

(3) The kind of business in which the person is engaged,	8270
including applicable business or industry codes for the person;	8271

(6) If required by the tax commissioner, the date of the	8272
beginning of the person's annual accounting period that includes	8273
the first day of January of the taxable calendar year;	8274

(7) If the person is not a corporation or a sole proprietor,	8275
the names of the person's owners and officers, if required by the	8276
tax commissioner;	8277

(8)(4) The person's federal employer identification number or	8278
numbers or, if those are not applicable, the person's social	8279
security number or equivalent, as applicable;	8280

(9)(5) The person's organizational type;

8281

(6) The date the person is first subject to the tax imposed	8282
by this chapter;	8283

(7) The names, addresses, federal identification numbers or	8284
social security numbers or equivalents, and organization types of	8285
each member that is commonly owned in a consolidated elected	8286
taxpayer or combined taxpayer group;	8287

(8) All other information that the commissioner requires to	8288
administer and enforce this chapter.	8289

(C) Except as otherwise provided in this division, each	8290
person registering with the tax commissioner as required by	8291
division (B) of this section shall pay a registration fee. The fee	8292
shall be in the amount of fifteen dollars if a person registers	8293
electronically and twenty dollars if a person does not register	8294
electronically. The registration fee shall be paid in the manner	8295
prescribed by the tax commissioner at the same time the	8296
registration is due if a person is subject to the tax imposed	8297
under this chapter before January 1, 2006. If a person first	8298
becomes subject to the tax after that date, the registration fee	8299
is payable with the first tax period return the person is required	8300
to file as prescribed by section 5751.051 of the Revised Code. If	8301
(1) To help defray the costs of administering the tax imposed by	8302
this chapter, the commissioner shall collect a registration fee in	8303
the amount of twenty dollars per person up to a maximum of two	8304
hundred dollars per consolidated elected taxpayer or combined	8305
taxpayer group. The commissioner shall systematically deduct and	8306
collect the fee from the first tax payment each taxpayer makes	8307
after registering or adding members, as applicable. No separate	8308
registration fee may be collected in addition to the tax imposed	8309
by this chapter.	8310

(2) If a person does not register within the time prescribed	8311
by this section, an additional fee is imposed in the amount of one	8312
hundred dollars per month or part thereof that the fee is	8313
outstanding, not to exceed one thousand dollars. The tax	8314
commissioner may abate the additional fee. The fee imposed under	8315
this division may be assessed in the same manner as the tax	8316
imposed under this chapter. Proceeds	8317

(D) Proceeds from the fee imposed under division (C) of this	8318
section shall be credited to the commercial activity tax	8319
administrativerevenue enhancement fund, which is hereby created	8320
in the state treasury for the commissioner to use in implementing	8321
and administering the tax imposed under this chapter.	8322

Registration fees paid under this section, excluding any	8323
additional fee imposed for a person's failure to timely register,	8324
shall be credited against the first payment of tax payable under	8325
section 5751.03 of the Revised Code.	8326

(D)(E) If a person that has registered under this section is	8327
no longer a taxpayer subject to this chapter, including no longer	8328
being a taxpayer because of the application of division (E)(1) of	8329
section 5751.01 of the Revised Code, the person shall notify the	8330
commissioner that the person's registration should be cancelled.	8331

(E)(F) With respect to registrations received by the	8332
commissioner before the effective date of the amendment of this	8333
section by the main operating appropriations act of the 128th	8334
general assemblyOctober 16, 2009, the taxpayer listed as the	8335
primary taxpayer on the registration shall be the reporting person	8336
until the taxpayer notifies the commissioner otherwise.	8337

Sec. 5751.05.  (A) If a person subject to this chapter	8338
anticipates that the person's taxable gross receipts will be more	8339
than one million dollars in a calendar year, the person shall	8340
notify the tax commissioner on the person's initial registration	8341
form and file on a quarterly basis as a calendar quarter taxpayer.	8342
Any taxpayer with taxable gross receipts of one million dollars or	8343
less shall register as a calendar year taxpayer and shall file	8344
annually.	8345

(B) Any person that is a calendar year taxpayer under	8346
division (A) of this section shall become a calendar quarter	8347
taxpayer in the subsequent calendar year if the person's taxable	8348
gross receipts for the prior calendar year are more than one	8349
million dollars, and shall remain a calendar quarter taxpayer	8350
until the person notifies the tax commissioner, and receives	8351
approval in writing from the tax commissioner, to switch back to	8352
being a calendar year taxpayer. Nothing in this division prohibits	8353
a person that has elected to be a calendar year taxpayer from	8354
notifying the tax commissioner, using the procedures prescribed by	8355
the commissioner, that it is switching back to being a calendar	8356
quarter taxpayer.	8357

(C) Any taxpayer that is not a calendar quarter taxpayer	8358
pursuant to this section is a calendar year taxpayer. The	8359
commissioner may grant written approval for a calendar quarter	8360
taxpayer to use an alternative reporting schedule or estimate the	8361
amount of tax due for a calendar quarter if the taxpayer	8362
demonstrates to the commissioner the need for such a deviation.	8363
The commissioner may adopt a rule to apply division (C) of this	8364
section to a group of taxpayers without the taxpayers having to	8365
receive written approval from the commissioner.	8366

Sec. 5751.051.  (A)(1) Not later than the tenth day of the	8367
second month after the end of each calendar quarter, every	8368
taxpayer other than a calendar year taxpayer shall file with the	8369
tax commissioner a tax return in such form as the commissioner	8370
prescribes. The return shall include, but is not limited to, the	8371
amount of the taxpayer's taxable gross receipts for the calendar	8372
quarter and shall indicate the amount of tax due under section	8373
5751.03 of the Revised Code for the calendar quarter.	8374

(2)(a) Subject to division (C) of section 5751.05 of the	8375
Revised Code, a calendar quarter taxpayer shall report the taxable	8376
gross receipts for that calendar quarter.	8377

(b) With respect to taxable gross receipts incorrectly	8378
reported in a calendar quarter that has a lower tax rate, the tax	8379
shall be computed at the tax rate in effect for the quarterly	8380
return in which such receipts should have been reported. Nothing	8381
in division (A)(2)(b) of this section prohibits a taxpayer from	8382
filing an application for refund under section 5751.08 of the	8383
Revised Code with regard to the incorrect reporting of taxable	8384
gross receipts discovered after filing the annual return described	8385
in division (A)(3) of this section.	8386

A tax return shall not be deemed to be an incorrect reporting	8387
of taxable gross receipts for the purposes of division (A)(2)(b)	8388
of this section if the return reflects between ninety-five and one	8389
hundred five per cent of the actual taxable gross receipts for the	8390
calendar quarter.	8391

(3) For the purposes of division (A)(2)(b) of this section,	8392
the tax return filed for the fourth calendar quarter of a calendar	8393
year is the annual return for the privilege tax imposed by this	8394
chapter. Such return shall report any additional taxable gross	8395
receipts not previously reported in the calendar year and shall	8396
adjust for any over-reported taxable gross receipts in the	8397
calendar year. If the taxpayer ceases to be a taxpayer before the	8398
end of the calendar year, the last return the taxpayer is required	8399
to file shall be the annual return for the taxpayer and the	8400
taxpayer shall report any additional taxable gross receipts not	8401
previously reported in the calendar year and shall adjust for any	8402
over-reported taxable gross receipts in the calendar year.	8403

(4) Because the tax imposed by this chapter is a privilege	8404
tax, the tax rate with respect to taxable gross receipts for a	8405
calendar quarter is not fixed until the end of the measurement	8406
period for each calendar quarter. Subject to division (A)(2)(b) of	8407
this section, the total amount of taxable gross receipts reported	8408
for a given calendar quarter shall be subject to the tax rate in	8409
effect in that quarter.	8410

(5) Not later than the tenth day of May following the end of	8411
each calendar year, every calendar year taxpayer shall file with	8412
the tax commissioner a tax return in such form as the commissioner	8413
prescribes. The return shall include, but is not limited to, the	8414
amount of the taxpayer's taxable gross receipts for the calendar	8415
year and shall indicate the amount of tax due under section	8416
5751.03 of the Revised Code for the calendar year.	8417

(B)(1) A person that first becomes subject to the tax imposed	8418
under this chapter shall pay the minimum tax imposed under	8419
division (B) of section 5751.03 of the Revised Code along with the	8420
registration fee imposed under this section, if applicable, on or	8421
before the day the return is required to be filed for that quarter	8422
under division (A)(1) of this section, regardless of whether the	8423
person elects to beregisters as a calendar year taxpayer under	8424
section 5751.05 of the Revised Code.	8425

(2) The amount of the minimum tax for a person subject to	8426
division (B)(1) of this section shall be reduced to seventy-five	8427
dollars if the registration is timely filed after the first day of	8428
May and before the first day of January of the following calendar	8429
year.	8430

Sec. 5751.12.  The tax commissioner may prescribe	8431
requirements for the keeping of records and other pertinent	8432
documents, the filing of copies of federal income tax returns and	8433
determinations, and computations reconciling federal income tax	8434
returns with the returns and reports required by section 5751.05	8435
5751.051 of the Revised Code. The commissioner may require any	8436
person, by rule or notice served on that person, to keep those	8437
records that the commissioner considers necessary to show whether,	8438
and the extent to which, a person is subject to this chapter.	8439
Those records and other documents shall be open during business	8440
hours to the inspection of the commissioner, and shall be	8441
preserved for a period of four years unless the commissioner, in	8442
writing, consents to their destruction within that period, or by	8443
order requires that they be kept longer. If such records are	8444
normally kept by the person electronically, the person shall	8445
provide such records to the commissioner electronically at the	8446
commissioner's request.	8447

Any information required by the tax commissioner under this	8448
chapter is confidential as provided for in section 5703.21 of the	8449
Revised Code. However, the commissioner shall make public an	8450
electronic list of all actively registered persons required to	8451
remit the tax under this chapter, including legal names, trade	8452
names, addresses, and account numbers. In addition, such list	8453
shall include all persons that cancelled their registration at any	8454
time during the preceding four calendar years, including the	8455
effective date of the registration was cancelledcancellation.	8456

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	8457
the Revised Code:	8458

(1) "School district," "joint vocational school district,"	8459
"local taxing unit," "recognized valuation," "fixed-rate levy,"	8460
and "fixed-sum levy" have the same meanings as used in section	8461
5727.84 of the Revised Code.	8462

(2) "State education aid" for a school district means the	8463
following:	8464

(a) For fiscal years prior to fiscal year 2010, the sum of	8465
state aid amounts computed for the district under the following	8466
provisions, as they existed for the applicable fiscal year:	8467
division (A) of section 3317.022 of the Revised Code, including	8468
the amounts calculated under sections 3317.029 and 3317.0217 of	8469
the Revised Code; divisions (C)(1), (C)(4), (D), (E), and (F) of	8470
section 3317.022; divisions (B), (C), and (D) of section 3317.023;	8471
divisions (L) and (N) of section 3317.024; section 3317.0216; and	8472
any unit payments for gifted student services paid under sections	8473
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,	8474
for fiscal years 2008 and 2009, the amount computed for the	8475
district under Section 269.20.80 of H.B. 119 of the 127th general	8476
assembly and as that section subsequently may be amended shall be	8477
substituted for the amount computed under division (D) of section	8478
3317.022 of the Revised Code, and the amount computed under	8479
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	8480
that section subsequently may be amended shall be included.	8481

(b) For fiscal years 2010 and 2011, the sum of the amounts	8482
computed under former sections 3306.052, 3306.12, 3306.13,	8483
3306.19, 3306.191, and 3306.192 of the Revised Code;	8484

(c) For fiscal years 2012 and 2013, the amount paid in	8485
accordance with the sectionSection 267.30.50 of H.B. 153 of the	8486
129th general assembly entitled "FUNDING FOR CITY, EXEMPTED	8487
VILLAGE, AND LOCAL SCHOOL DISTRICTS."	8488

(3) "State education aid" for a joint vocational school	8489
district means the following:	8490

(a) For fiscal years prior to fiscal year 2010, the sum of	8491
the state aid computed for the district under division (N) of	8492
section 3317.024 and section 3317.16 of the Revised Code, except	8493
that, for fiscal years 2008 and 2009, the amount computed under	8494
Section 269.30.80 of H.B. 119 of the 127th general assembly and as	8495
that section subsequently may be amended shall be included.	8496

(b) For fiscal years 2010 and 2011, the amount paid in	8497
accordance with the sectionSection 265.30.50 of H.B. 1 of the	8498
128th general assembly entitled "FUNDING FOR JOINT VOCATIONAL	8499
SCHOOL DISTRICTS."	8500

(c) For fiscal years 2012 and 2013, the amount paid in	8501
accordance with the sectionSection 267.30.60 of H.B. 153 of the	8502
129th general assembly entitled "FUNDING FOR JOINT VOCATIONAL	8503
SCHOOL DISTRICTS."	8504

(4) "State education aid offset" means the amount determined	8505
for each school district or joint vocational school district under	8506
division (A)(1) of section 5751.21 of the Revised Code.	8507

(5) "Machinery and equipment property tax value loss" means	8508
the amount determined under division (C)(1) of this section.	8509

(6) "Inventory property tax value loss" means the amount	8510
determined under division (C)(2) of this section.	8511

(7) "Furniture and fixtures property tax value loss" means	8512
the amount determined under division (C)(3) of this section.	8513

(8) "Machinery and equipment fixed-rate levy loss" means the	8514
amount determined under division (D)(1) of this section.	8515

(9) "Inventory fixed-rate levy loss" means the amount	8516
determined under division (D)(2) of this section.	8517

(10) "Furniture and fixtures fixed-rate levy loss" means the	8518
amount determined under division (D)(3) of this section.	8519

(11) "Total fixed-rate levy loss" means the sum of the	8520
machinery and equipment fixed-rate levy loss, the inventory	8521
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	8522
loss, and the telephone company fixed-rate levy loss.	8523

(12) "Fixed-sum levy loss" means the amount determined under	8524
division (E) of this section.	8525

(13) "Machinery and equipment" means personal property	8526
subject to the assessment rate specified in division (F) of	8527
section 5711.22 of the Revised Code.	8528

(14) "Inventory" means personal property subject to the	8529
assessment rate specified in division (E) of section 5711.22 of	8530
the Revised Code.	8531

(15) "Furniture and fixtures" means personal property subject	8532
to the assessment rate specified in division (G) of section	8533
5711.22 of the Revised Code.	8534

(16) "Qualifying levies" are levies in effect for tax year	8535
2004 or applicable to tax year 2005 or approved at an election	8536
conducted before September 1, 2005. For the purpose of determining	8537
the rate of a qualifying levy authorized by section 5705.212 or	8538
5705.213 of the Revised Code, the rate shall be the rate that	8539
would be in effect for tax year 2010.	8540

(17) "Telephone property" means tangible personal property of	8541
a telephone, telegraph, or interexchange telecommunications	8542
company subject to an assessment rate specified in section	8543
5727.111 of the Revised Code in tax year 2004.	8544

(18) "Telephone property tax value loss" means the amount	8545
determined under division (C)(4) of this section.	8546

(19) "Telephone property fixed-rate levy loss" means the	8547
amount determined under division (D)(4) of this section.	8548

(20) "Taxes charged and payable" means taxes charged and	8549
payable after the reduction required by section 319.301 of the	8550
Revised Code but before the reductions required by sections	8551
319.302 and 323.152 of the Revised Code.	8552

(21) "Median estate tax collections" means, in the case of a	8553
municipal corporation to which revenue from the taxes levied in	8554
Chapter 5731. of the Revised Code was distributed in each of	8555
calendar years 2006, 2007, 2008, and 2009, the median of those	8556
distributions. In the case of a municipal corporation to which no	8557
distributions were made in one or more of those years, "median	8558
estate tax collections" means zero.	8559

(22) "Total resources," in the case of a school district,	8560
means the sum of the amounts in divisions (A)(22)(a) to (h) of	8561
this section less any reduction required under division (A)(32) or	8562
(33) of this section.	8563

(a) The state education aid for fiscal year 2010;

8564

(b) The sum of the payments received by the school district	8565
in fiscal year 2010 for current expense levy losses pursuant to	8566
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of	8567
section 5751.21 of the Revised Code, excluding the portion of such	8568
payments attributable to levies for joint vocational school	8569
district purposes;	8570

(c) The sum of fixed-sum levy loss payments received by the	8571
school district in fiscal year 2010 pursuant to division (E)(1) of	8572
section 5727.85 and division (E)(1) of section 5751.21 of the	8573
Revised Code for fixed-sum levies imposedcharged and payable for	8574
a purpose other than paying debt charges;	8575

(d) Fifty per cent of the school district's taxes charged and	8576
payable against all property on the tax list of real and public	8577
utility property for current expense purposes for tax year 2008,	8578
including taxes charged and payable from emergency levies imposed	8579
charged and payable under section 5709.194 of the Revised Code and	8580
excluding taxes levied for joint vocational school district	8581
purposes;	8582

(e) Fifty per cent of the school district's taxes charged and	8583
payable against all property on the tax list of real and public	8584
utility property for current expenses for tax year 2009, including	8585
taxes charged and payable from emergency levies and excluding	8586
taxes levied for joint vocational school district purposes;	8587

(f) The school district's taxes charged and payable against	8588
all property on the general tax list of personal property for	8589
current expenses for tax year 2009, including taxes charged and	8590
payable from emergency levies;	8591

(g) The amount certified for fiscal year 2010 under division	8592
(A)(2) of section 3317.08 of the Revised Code;	8593

(h) Distributions received during calendar year 2009 from	8594
taxes levied under section 718.09 of the Revised Code.	8595

(23) "Total resources," in the case of a joint vocational	8596
school district, means the sum of amounts in divisions (A)(23)(a)	8597
to (g) of this section less any reduction required under division	8598
(A)(32) of this section.	8599

(a) The state education aid for fiscal year 2010;

8600

(b) The sum of the payments received by the joint vocational	8601
school district in fiscal year 2010 for current expense levy	8602
losses pursuant to division (C)(2) of section 5727.85 and	8603
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;	8604

(c) Fifty per cent of the joint vocational school district's	8605
taxes charged and payable against all property on the tax list of	8606
real and public utility property for current expense purposes for	8607
tax year 2008;	8608

(d) Fifty per cent of the joint vocational school district's	8609
taxes charged and payable against all property on the tax list of	8610
real and public utility property for current expenses for tax year	8611
2009;	8612

(e) Fifty per cent of a city, local, or exempted village	8613
school district's taxes charged and payable against all property	8614
on the tax list of real and public utility property for current	8615
expenses of the joint vocational school district for tax year	8616
2008;	8617

(f) Fifty per cent of a city, local, or exempted village	8618
school district's taxes charged and payable against all property	8619
on the tax list of real and public utility property for current	8620
expenses of the joint vocational school district for tax year	8621
2009;	8622

(g) The joint vocational school district's taxes charged and	8623
payable against all property on the general tax list of personal	8624
property for current expenses for tax year 2009.	8625

(24) "Total resources," in the case of county mental health	8626
and disability related functions, means the sum of the amounts in	8627
divisions (A)(24)(a) and (b) of this section less any reduction	8628
required under division (A)(32) of this section.	8629

(a) The sum of the payments received by the county for mental	8630
health and developmental disability related functions in calendar	8631
year 2010 under division (A)(1) of section 5727.86 and division	8632
divisions (A)(1) and (2) of section 5751.22 of the Revised Code as	8633
they existed at that time;	8634

(b) With respect to taxes levied by the county for mental	8635
health and developmental disability related purposes, the taxes	8636
charged and payable for such purposes against all property on the	8637
tax list of real and public utility property for tax year 2009.	8638

(25) "Total resources," in the case of county senior services	8639
related functions, means the sum of the amounts in divisions	8640
(A)(25)(a) and (b) of this section less any reduction required	8641
under division (A)(32) of this section.	8642

(a) The sum of the payments received by the county for senior	8643
services related functions in calendar year 2010 under division	8644
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	8645
5751.22 of the Revised Code as they existed at that time;	8646

(b) With respect to taxes levied by the county for senior	8647
services related purposes, the taxes charged and payable for such	8648
purposes against all property on the tax list of real and public	8649
utility property for tax year 2009.	8650

(26) "Total resources," in the case of county children's	8651
services related functions, means the sum of the amounts in	8652
divisions (A)(26)(a) and (b) of this section less any reduction	8653
required under division (A)(32) of this section.	8654

(a) The sum of the payments received by the county for	8655
children's services related functions in calendar year 2010 under	8656
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of	8657
section 5751.22 of the Revised Code as they existed at that time;	8658

(b) With respect to taxes levied by the county for children's	8659
services related purposes, the taxes charged and payable for such	8660
purposes against all property on the tax list of real and public	8661
utility property for tax year 2009.	8662

(27) "Total resources," in the case of county public health	8663
related functions, means the sum of the amounts in divisions	8664
(A)(27)(a) and (b) of this section less any reduction required	8665
under division (A)(32) of this section.	8666

(a) The sum of the payments received by the county for public	8667
health related functions in calendar year 2010 under division	8668
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	8669
5751.22 of the Revised Code as they existed at that time;	8670

(b) With respect to taxes levied by the county for public	8671
health related purposes, the taxes charged and payable for such	8672
purposes against all property on the tax list of real and public	8673
utility property for tax year 2009.	8674

(28) "Total resources," in the case of all county functions	8675
not included in divisions (A)(24) to (27) of this section, means	8676
the sum of the amounts in divisions (A)(28)(a) to (d) of this	8677
section less any reduction required under division (A)(32) or (33)	8678
of this section.	8679

(a) The sum of the payments received by the county for all	8680
other purposes in calendar year 2010 under division (A)(1) of	8681
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of	8682
the Revised Code as they existed at that time;	8683

(b) The county's percentage share of county undivided local	8684
government fund allocations as certified to the tax commissioner	8685
for calendar year 2010 by the county auditor under division (J) of	8686
section 5747.51 of the Revised Code or division (F) of section	8687
5747.53 of the Revised Code multiplied by the total amount	8688
actually distributed in calendar year 2010 from the county	8689
undivided local government fund;	8690

(c) With respect to taxes levied by the county for all other	8691
purposes, the taxes charged and payable for such purposes against	8692
all property on the tax list of real and public utility property	8693
for tax year 2009, excluding taxes charged and payable for the	8694
purpose of paying debt charges;	8695

(d) The sum of the amounts distributed to the county in	8696
calendar year 2010 for the taxes levied pursuant to sections	8697
5739.021 and 5741.021 of the Revised Code.	8698

(29) "Total resources," in the case of a municipal	8699
corporation, means the sum of the amounts in divisions (A)(29)(a)	8700
to (g) of this section less any reduction required under division	8701
(A)(32) or (33) of this section.	8702

(a) The sum of the payments received by the municipal	8703
corporation in calendar year 2010 for current expense levy losses	8704
under division (A)(1) of section 5727.86 and divisions (A)(1) and	8705
(2) of section 5751.22 of the Revised Code as they existed at that	8706
time;	8707

(b) The municipal corporation's percentage share of county	8708
undivided local government fund allocations as certified to the	8709
tax commissioner for calendar year 2010 by the county auditor	8710
under division (J) of section 5747.51 of the Revised Code or	8711
division (F) of section 5747.53 of the Revised Code multiplied by	8712
the total amount actually distributed in calendar year 2010 from	8713
the county undivided local government fund;	8714

(c) The sum of the amounts distributed to the municipal	8715
corporation in calendar year 2010 pursuant to section 5747.50 of	8716
the Revised Code;	8717

(d) With respect to taxes levied by the municipal	8718
corporation, the taxes charged and payable against all property on	8719
the tax list of real and public utility property for current	8720
expenses, defined in division (A)(33)(35) of this section, for tax	8721
year 2009;	8722

(e) The amount of admissions tax collected by the municipal	8723
corporation in calendar year 2008, or if such information has not	8724
yet been reported to the tax commissioner, in the most recent year	8725
before 2008 for which the municipal corporation has reported data	8726
to the commissioner;	8727

(f) The amount of income taxes collected by the municipal	8728
corporation in calendar year 2008, or if such information has not	8729
yet been reported to the tax commissioner, in the most recent year	8730
before 2008 for which the municipal corporation has reported data	8731
to the commissioner;	8732

(g) The municipal corporation's median estate tax	8733
collections.	8734

(30) "Total resources," in the case of a township, means the	8735
sum of the amounts in divisions (A)(30)(a) to (c) of this section	8736
less any reduction required under division (A)(32) or (33) of this	8737
section.	8738

(a) The sum of the payments received by the township in	8739
calendar year 2010 pursuant to division (A)(1) of section 5727.86	8740
of the Revised Code and divisions (A)(1) and (2) of section	8741
5751.22 of the Revised Code as they existed at that time,	8742
excluding payments received for debt purposes;	8743

(b) The township's percentage share of county undivided local	8744
government fund allocations as certified to the tax commissioner	8745
for calendar year 2010 by the county auditor under division (J) of	8746
section 5747.51 of the Revised Code or division (F) of section	8747
5747.53 of the Revised Code multiplied by the total amount	8748
actually distributed in calendar year 2010 from the county	8749
undivided local government fund;	8750

(c) With respect to taxes levied by the township, the taxes	8751
charged and payable against all property on the tax list of real	8752
and public utility property for tax year 2009 excluding taxes	8753
charged and payable for the purpose of paying debt charges.	8754

(31) "Total resources," in the case of a local taxing unit	8755
that is not a county, municipal corporation, or township, means	8756
the sum of the amounts in divisions (A)(31)(a) to (e) of this	8757
section less any reduction required under division (A)(32) of this	8758
section.	8759

(a) The sum of the payments received by the local taxing unit	8760
in calendar year 2010 pursuant to division (A)(1) of section	8761
5727.86 of the Revised Code and divisions (A)(1) and (2) of	8762
section 5751.22 of the Revised Code as they existed at that time;	8763

(b) The local taxing unit's percentage share of county	8764
undivided local government fund allocations as certified to the	8765
tax commissioner for calendar year 2010 by the county auditor	8766
under division (J) of section 5747.51 of the Revised Code or	8767
division (F) of section 5747.53 of the Revised Code multiplied by	8768
the total amount actually distributed in calendar year 2010 from	8769
the county undivided local government fund;	8770

(c) With respect to taxes levied by the local taxing unit,	8771
the taxes charged and payable against all property on the tax list	8772
of real and public utility property for tax year 2009 excluding	8773
taxes charged and payable for the purpose of paying debt charges;	8774

(d) The amount received from the tax commissioner during	8775
calendar year 2010 for sales or use taxes authorized under	8776
sections 5739.023 and 5741.022 of the Revised Code;	8777

(e) For institutions of higher education receiving tax	8778
revenue from a local levy, as identified in section 3358.02 of the	8779
Revised Code, the final state share of instruction allocation for	8780
fiscal year 2010 as calculated by the board of regents and	8781
reported to the state controlling board.	8782

(32) If a fixed-rate levy that is a qualifying levy is not	8783
imposedcharged and payable in any year after tax year 2010,	8784
"total resources" used to compute payments to be made under	8785
division (C)(12) of section 5751.21 or division (A)(1)(b) or (c)	8786
of section 5751.22 of the Revised Code in the tax years following	8787
the last year the levy is imposedcharged and payable shall be	8788
reduced by the amount ofto the extent that the payments are	8789
attributable to the fixed-rate levy loss of that levy as would be	8790
computed under division (C)(2) of section 5727.85, division (A)(1)	8791
of section 5727.85, divisions (C)(8) and (9) of section 5751.21,	8792
or division (A)(1) of section 5751.22 of the Revised Code.	8793

(33) In the case of a county, municipal corporation, school	8794
district, or township with fixed-rate levy losses attributable to	8795
a tax levied under section 5705.23 of the Revised Code, "total	8796
resources" used to compute payments to be made under division	8797
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,	8798
division (C)(12) of section 5751.21, or division (A)(1)(c) of	8799
section 5751.22 of the Revised Code shall be reduced by the	8800
amounts described in divisions (A)(34)(a) to (c) of this section	8801
to the extent that those amounts were included in calculating the	8802
"total resources" of the school district or local taxing unit	8803
under division (A)(22), (28), (29), or (30) of this section.	8804

(34) "Total library resources," in the case of a county,	8805
municipal corporation, school district, or township public library	8806
that receives the proceeds of a tax levied under section 5705.23	8807
of the Revised Code, means the sum of the amounts in divisions	8808
(A)(34)(a) to (c) of this section less any reduction required	8809
under division (A)(32) of this section.	8810

(a) The sum of the payments received by the county, municipal	8811
corporation, school district, or township public library in	8812
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the	8813
Revised Code, as they existed at that time, for fixed-rate levy	8814
losses attributable to a tax levied under section 5705.23 of the	8815
Revised Code for the benefit of the public library;	8816

(b) The public library's percentage share of county undivided	8817
local government fund allocations as certified to the tax	8818
commissioner for calendar year 2010 by the county auditor under	8819
division (J) of section 5747.51 of the Revised Code or division	8820
(F) of section 5747.53 of the Revised Code multiplied by the total	8821
amount actually distributed in calendar year 2010 from the county	8822
undivided local government fund;	8823

(c) With respect to a tax levied pursuant to section 5705.23	8824
of the Revised Code for the benefit of the public library, the	8825
amount of such tax that is charged and payable against all	8826
property on the tax list of real and public utility property for	8827
tax year 2009 excluding any tax that is charged and payable for	8828
the purpose of paying debt charges.	8829

(35) "Municipal current expense property tax levies" means	8830
all property tax levies of a municipality, except those with the	8831
following levy names: airport resurfacing; bond or any levy name	8832
including the word "bond"; capital improvement or any levy name	8833
including the word "capital"; debt or any levy name including the	8834
word "debt"; equipment or any levy name including the word	8835
"equipment," unless the levy is for combined operating and	8836
equipment; employee termination fund; fire pension or any levy	8837
containing the word "pension," including police pensions;	8838
fireman's fund or any practically similar name; sinking fund; road	8839
improvements or any levy containing the word "road"; fire truck or	8840
apparatus; flood or any levy containing the word "flood";	8841
conservancy district; county health; note retirement; sewage, or	8842
any levy containing the words "sewage" or "sewer"; park	8843
improvement; parkland acquisition; storm drain; street or any levy	8844
name containing the word "street"; lighting, or any levy name	8845
containing the word "lighting"; and water.	8846

(34)(36) "Current expense TPP allocation" means, in the case	8847
of a school district or joint vocational school district, the sum	8848
of the payments received by the school district in fiscal year	8849
2011 pursuant to divisions (C)(10) and (11) of section 5751.21 of	8850
the Revised Code to the extent paid for current expense levies. In	8851
the case of a municipal corporation, "current expense TPP	8852
allocation" means the sum of the payments received by the	8853
municipal corporation in calendar year 2010 pursuant to divisions	8854
(A)(1) and (2) of section 5751.22 of the Revised Code to the	8855
extent paid for municipal current expense property tax levies as	8856
defined in division (A)(33)(35) of this section, excluding any	8857
such payments received for current expense levy losses	8858
attributable to a tax levied under section 5705.23 of the Revised	8859
Code. If a fixed-rate levy that is a qualifying levy is not	8860
imposedcharged and payable in any year after tax year 2010,	8861
"current expense TPP allocation" used to compute payments to be	8862
made under division (C)(12) of section 5751.21 or division	8863
(A)(1)(b) or (c) of section 5751.22 of the Revised Code in the tax	8864
years following the last year the levy is imposedcharged and	8865
payable shall be reduced by the amount ofto the extent that the	8866
payments are attributable to the fixed-rate levy loss of that levy	8867
as would be computed under divisions (C)(10) and (11) of section	8868
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.	8869

(35)(37) "TPP allocation" means the sum of payments received	8870
by a local taxing unit in calendar year 2010 pursuant to divisions	8871
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding	8872
any such payments received for fixed-rate levy losses attributable	8873
to a tax levied under section 5705.23 of the Revised Code. If a	8874
fixed-rate levy that is a qualifying levy is not imposedcharged	8875
and payable in any year after tax year 2010, "TPP allocation" used	8876
to compute payments to be made under division (A)(1)(b) or (c) of	8877
section 5751.22 of the Revised Code in the tax years following the	8878
last year the levy is imposedcharged and payable shall be reduced	8879
by the amount of paymentto the extent that the payments are	8880
attributable to the fixed-rate levy loss of that levy as would be	8881
computed under division (A)(1) of that section.	8882

(36)(38) "Total TPP allocation" means, in the case of a	8883
school district or joint vocational school district, the sum of	8884
the amounts received in fiscal year 2011 pursuant to divisions	8885
(C)(10) and (11) and (D) of section 5751.21 of the Revised Code.	8886
In the case of a local taxing unit, "total TPP allocation" means	8887
the sum of payments received by the unit in calendar year 2010	8888
pursuant to divisions (A)(1), (2), and (3) of section 5751.22 of	8889
the Revised Code. If a fixed-rate levy that is a qualifying levy	8890
is not imposedcharged and payable in any year after tax year	8891
2010, "total TPP allocation" used to compute payments to be made	8892
under division (C)(12) of section 5751.21 or division (A)(1)(b) or	8893
(c) of section 5751.22 of the Revised Code in the tax years	8894
following the last year the levy is imposedcharged and payable	8895
shall be reduced by the amount ofto the extent that the payments	8896
are attributable to the fixed-rate levy loss of that levy as would	8897
be computed under divisions (C)(10) and (11) of section 5751.21 or	8898
division (A)(1) of section 5751.22 of the Revised Code.	8899

(37)(39) "Non-current expense TPP allocation" means the	8900
difference of total TPP allocation minus the sum of current	8901
expense TPP allocation and the portion of total TPP allocation	8902
constituting reimbursement for debt levies, pursuant to division	8903
(D) of section 5751.21 of the Revised Code in the case of a school	8904
district or joint vocational school district and pursuant to	8905
division (A)(3) of section 5751.22 of the Revised Code in the case	8906
of a municipal corporation.	8907

(38)(40) "TPP allocation for library purposes" means the sum	8908
of payments received by a county, municipal corporation, school	8909
district, or township public library in calendar year 2010	8910
pursuant to section 5751.22 of the Revised Code for fixed-rate	8911
levy losses attributable to a tax levied under section 5705.23 of	8912
the Revised Code. If a fixed-rate levy authorized under section	8913
5705.23 of the Revised Code that is a qualifying levy is not	8914
charged and payable in any year after tax year 2010, "TPP	8915
allocation for library purposes" used to compute payments to be	8916
made under division (A)(1)(d) of section 5751.22 of the Revised	8917
Code in the tax years following the last year the levy is charged	8918
and payable shall be reduced to the extent that the payments are	8919
attributable to the fixed-rate levy loss of that levy as would be	8920
computed under division (A)(1) of section 5751.22 of the Revised	8921
Code.	8922

(41) "Threshold per cent" means, in the case of a school	8923
district or joint vocational school district, two per cent for	8924
fiscal year 2012 and four per cent for fiscal years 2013 and	8925
thereafter. In the case of a local taxing unit or public library	8926
that receives the proceeds of a tax levied under section 5705.23	8927
of the Revised Code, "threshold per cent" means two per cent for	8928
tax year 2011, four per cent for tax year 2012, and six per cent	8929
for tax years 2013 and thereafter.	8930

(B) The commercial activities tax receipts fund is hereby	8931
created in the state treasury and shall consist of money arising	8932
from the tax imposed under this chapter. Eighty-five	8933
one-hundredths of one per cent of the money credited to that fund	8934
shall be credited to the tax reform system implementationrevenue	8935
enhancement fund, which is hereby created in the state treasury,	8936
and shall be used to defray the costs incurred by the department	8937
of taxation in administering the tax imposed by this chapter and	8938
in implementing tax reform measures. The remainder in the	8939
commercial activities tax receipts fund shall be credited for each	8940
fiscal year in the following percentages to the general revenue	8941
fund, to the school district tangible property tax replacement	8942
fund, which is hereby created in the state treasury for the	8943
purpose of making the payments described in section 5751.21 of the	8944
Revised Code, and to the local government tangible property tax	8945
replacement fund, which is hereby created in the state treasury	8946
for the purpose of making the payments described in section	8947
5751.22 of the Revised Code, in the following percentages:	8948

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		8949
2006	67.7%	22.6%	9.7%		8950
2007	0%	70.0%	30.0%		8951
2008	0%	70.0%	30.0%		8952
2009	0%	70.0%	30.0%		8953
2010	0%	70.0%	30.0%		8954
2011	0%	70.0%	30.0%		8955
2012	25.0%	52.5%	22.5%		8956
2013 and thereafter	50.0%	35.0%	15.0%		8957

(C) Not later than September 15, 2005, the tax commissioner	8958
shall determine for each school district, joint vocational school	8959
district, and local taxing unit its machinery and equipment,	8960
inventory property, furniture and fixtures property, and telephone	8961
property tax value losses, which are the applicable amounts	8962
described in divisions (C)(1), (2), (3), and (4) of this section,	8963
except as provided in division (C)(5) of this section:	8964

(1) Machinery and equipment property tax value loss is the	8965
taxable value of machinery and equipment property as reported by	8966
taxpayers for tax year 2004 multiplied by:	8967

(a) For tax year 2006, thirty-three and eight-tenths per	8968
cent;	8969

(b) For tax year 2007, sixty-one and three-tenths per cent;

8970

(c) For tax year 2008, eighty-three per cent;

8971

(d) For tax year 2009 and thereafter, one hundred per cent.

8972

(2) Inventory property tax value loss is the taxable value of	8973
inventory property as reported by taxpayers for tax year 2004	8974
multiplied by:	8975

(a) For tax year 2006, a fraction, the numerator of which is	8976
five and three-fourths and the denominator of which is	8977
twenty-three;	8978

(b) For tax year 2007, a fraction, the numerator of which is	8979
nine and one-half and the denominator of which is twenty-three;	8980

(c) For tax year 2008, a fraction, the numerator of which is	8981
thirteen and one-fourth and the denominator of which is	8982
twenty-three;	8983

(d) For tax year 2009 and thereafter a fraction, the	8984
numerator of which is seventeen and the denominator of which is	8985
twenty-three.	8986

(3) Furniture and fixtures property tax value loss is the	8987
taxable value of furniture and fixture property as reported by	8988
taxpayers for tax year 2004 multiplied by:	8989

(a) For tax year 2006, twenty-five per cent;

8990

(b) For tax year 2007, fifty per cent;

8991

(c) For tax year 2008, seventy-five per cent;

8992

(d) For tax year 2009 and thereafter, one hundred per cent.

8993

The taxable value of property reported by taxpayers used in	8994
divisions (C)(1), (2), and (3) of this section shall be such	8995
values as determined to be final by the tax commissioner as of	8996
August 31, 2005. Such determinations shall be final except for any	8997
correction of a clerical error that was made prior to August 31,	8998
2005, by the tax commissioner.	8999

(4) Telephone property tax value loss is the taxable value of	9000
telephone property as taxpayers would have reported that property	9001
for tax year 2004 if the assessment rate for all telephone	9002
property for that year were twenty-five per cent, multiplied by:	9003

(a) For tax year 2006, zero per cent;

9004

(b) For tax year 2007, zero per cent;

9005

(c) For tax year 2008, zero per cent;

9006

(d) For tax year 2009, sixty per cent;

9007

(e) For tax year 2010, eighty per cent;

9008

(f) For tax year 2011 and thereafter, one hundred per cent.

9009

(5) Division (C)(5) of this section applies to any school	9010
district, joint vocational school district, or local taxing unit	9011
in a county in which is located a facility currently or formerly	9012
devoted to the enrichment or commercialization of uranium or	9013
uranium products, and for which the total taxable value of	9014
property listed on the general tax list of personal property for	9015
any tax year from tax year 2001 to tax year 2004 was fifty per	9016
cent or less of the taxable value of such property listed on the	9017
general tax list of personal property for the next preceding tax	9018
year.	9019

In computing the fixed-rate levy losses under divisions	9020
(D)(1), (2), and (3) of this section for any school district,	9021
joint vocational school district, or local taxing unit to which	9022
division (C)(5) of this section applies, the taxable value of such	9023
property as listed on the general tax list of personal property	9024
for tax year 2000 shall be substituted for the taxable value of	9025
such property as reported by taxpayers for tax year 2004, in the	9026
taxing district containing the uranium facility, if the taxable	9027
value listed for tax year 2000 is greater than the taxable value	9028
reported by taxpayers for tax year 2004. For the purpose of making	9029
the computations under divisions (D)(1), (2), and (3) of this	9030
section, the tax year 2000 valuation is to be allocated to	9031
machinery and equipment, inventory, and furniture and fixtures	9032
property in the same proportions as the tax year 2004 values. For	9033
the purpose of the calculations in division (A) of section 5751.21	9034
of the Revised Code, the tax year 2004 taxable values shall be	9035
used.	9036

To facilitate the calculations required under division (C) of	9037
this section, the county auditor, upon request from the tax	9038
commissioner, shall provide by August 1, 2005, the values of	9039
machinery and equipment, inventory, and furniture and fixtures for	9040
all single-county personal property taxpayers for tax year 2004.	9041

(D) Not later than September 15, 2005, the tax commissioner	9042
shall determine for each tax year from 2006 through 2009 for each	9043
school district, joint vocational school district, and local	9044
taxing unit its machinery and equipment, inventory, and furniture	9045
and fixtures fixed-rate levy losses, and for each tax year from	9046
2006 through 2011 its telephone property fixed-rate levy loss.	9047
Except as provided in division (F) of this section, such losses	9048
are the applicable amounts described in divisions (D)(1), (2),	9049
(3), and (4) of this section:	9050

(1) The machinery and equipment fixed-rate levy loss is the	9051
machinery and equipment property tax value loss multiplied by the	9052
sum of the tax rates of fixed-rate qualifying levies.	9053

(2) The inventory fixed-rate loss is the inventory property	9054
tax value loss multiplied by the sum of the tax rates of	9055
fixed-rate qualifying levies.	9056

(3) The furniture and fixtures fixed-rate levy loss is the	9057
furniture and fixture property tax value loss multiplied by the	9058
sum of the tax rates of fixed-rate qualifying levies.	9059

(4) The telephone property fixed-rate levy loss is the	9060
telephone property tax value loss multiplied by the sum of the tax	9061
rates of fixed-rate qualifying levies.	9062

(E) Not later than September 15, 2005, the tax commissioner	9063
shall determine for each school district, joint vocational school	9064
district, and local taxing unit its fixed-sum levy loss. The	9065
fixed-sum levy loss is the amount obtained by subtracting the	9066
amount described in division (E)(2) of this section from the	9067
amount described in division (E)(1) of this section:	9068

(1) The sum of the machinery and equipment property tax value	9069
loss, the inventory property tax value loss, and the furniture and	9070
fixtures property tax value loss, and, for 2008 through 2010, the	9071
telephone property tax value loss of the district or unit	9072
multiplied by the sum of the fixed-sum tax rates of qualifying	9073
levies. For 2006 through 2010, this computation shall include all	9074
qualifying levies remaining in effect for the current tax year and	9075
any school district levies imposedcharged and payable under	9076
section 5705.194 or 5705.213 of the Revised Code that are	9077
qualifying levies not remaining in effect for the current year.	9078
For 2011 through 2017 in the case of school district levies	9079
imposedcharged and payable under section 5705.194 or 5705.213 of	9080
the Revised Code and for all years after 2010 in the case of other	9081
fixed-sum levies, this computation shall include only qualifying	9082
levies remaining in effect for the current year. For purposes of	9083
this computation, a qualifying school district levy imposed	9084
charged and payable under section 5705.194 or 5705.213 of the	9085
Revised Code remains in effect in a year after 2010 only if, for	9086
that year, the board of education levies a school district levy	9087
imposedcharged and payable under section 5705.194, 5705.199,	9088
5705.213, or 5705.219 of the Revised Code for an annual sum at	9089
least equal to the annual sum levied by the board in tax year 2004	9090
less the amount of the payment certified under this division for	9091
2006.	9092

(2) The total taxable value in tax year 2004 less the sum of	9093
the machinery and equipment, inventory, furniture and fixtures,	9094
and telephone property tax value losses in each school district,	9095
joint vocational school district, and local taxing unit multiplied	9096
by one-half of one mill per dollar.	9097

(3) For the calculations in divisions (E)(1) and (2) of this	9098
section, the tax value losses are those that would be calculated	9099
for tax year 2009 under divisions (C)(1), (2), and (3) of this	9100
section and for tax year 2011 under division (C)(4) of this	9101
section.	9102

(4) To facilitate the calculation under divisions (D) and (E)	9103
of this section, not later than September 1, 2005, any school	9104
district, joint vocational school district, or local taxing unit	9105
that has a qualifying levy that was approved at an election	9106
conducted during 2005 before September 1, 2005, shall certify to	9107
the tax commissioner a copy of the county auditor's certificate of	9108
estimated property tax millage for such levy as required under	9109
division (B) of section 5705.03 of the Revised Code, which is the	9110
rate that shall be used in the calculations under such divisions.	9111

If the amount determined under division (E) of this section	9112
for any school district, joint vocational school district, or	9113
local taxing unit is greater than zero, that amount shall equal	9114
the reimbursement to be paid pursuant to division (E) of section	9115
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	9116
and the one-half of one mill that is subtracted under division	9117
(E)(2) of this section shall be apportioned among all contributing	9118
fixed-sum levies in the proportion that each levy bears to the sum	9119
of all fixed-sum levies within each school district, joint	9120
vocational school district, or local taxing unit.	9121

(F) If a school district levies a tax under section 5705.219	9122
of the Revised Code, the fixed-rate levy loss for qualifying	9123
levies, to the extent repealed under that section, shall equal the	9124
sum of the following amounts in lieu of the amounts computed for	9125
such levies under division (D) of this section:	9126

(1) The sum of the rates of qualifying levies to the extent	9127
so repealed multiplied by the sum of the machinery and equipment,	9128
inventory, and furniture and fixtures tax value losses for 2009 as	9129
determined under that division;	9130

(2) The sum of the rates of qualifying levies to the extent	9131
so repealed multiplied by the telephone property tax value loss	9132
for 2011 as determined under that division.	9133

The fixed-rate levy losses for qualifying levies to the	9134
extent not repealed under section 5705.219 of the Revised Code	9135
shall be as determined under division (D) of this section. The	9136
revised fixed-rate levy losses determined under this division and	9137
division (D) of this section first apply in the year following the	9138
first year the district levies the tax under section 5705.219 of	9139
the Revised Code.	9140

(G) Not later than October 1, 2005, the tax commissioner	9141
shall certify to the department of education for every school	9142
district and joint vocational school district the machinery and	9143
equipment, inventory, furniture and fixtures, and telephone	9144
property tax value losses determined under division (C) of this	9145
section, the machinery and equipment, inventory, furniture and	9146
fixtures, and telephone fixed-rate levy losses determined under	9147
division (D) of this section, and the fixed-sum levy losses	9148
calculated under division (E) of this section. The calculations	9149
under divisions (D) and (E) of this section shall separately	9150
display the levy loss for each levy eligible for reimbursement.	9151

(H) Not later than October 1, 2005, the tax commissioner	9152
shall certify the amount of the fixed-sum levy losses to the	9153
county auditor of each county in which a school district, joint	9154
vocational school district, or local taxing unit with a fixed-sum	9155
levy loss reimbursement has territory.	9156

(I) Not later than the twenty-eighth day of February each	9157
year beginning in 2011 and ending in 2014, the tax commissioner	9158
shall certify to the department of education for each school	9159
district first levying a tax under section 5705.219 of the Revised	9160
Code in the preceding year the revised fixed-rate levy losses	9161
determined under divisions (D) and (F) of this section.	9162

Sec. 5751.22.  (A) Not later than January 1, 2006, the tax	9163
commissioner shall compute the payments to be made to each local	9164
taxing unit, and to each public library that receives the proceeds	9165
of a tax levied under section 5705.23 of the Revised Code, for	9166
each year according to divisions (A)(1), (2), (3), and (4) of this	9167
section as this section existed on that date, and shall distribute	9168
the payments in the manner prescribed by division (C) of this	9169
section. The calculation of the fixed-sum levy loss shall cover a	9170
time period sufficient to include all fixed-sum levies for which	9171
the commissioner determined, pursuant to division (E) of section	9172
5751.20 of the Revised Code, that a fixed-sum levy loss is to be	9173
reimbursed.	9174

(1) Except as provided in division (A)(3) of this section,	9175
for fixed-rate levy losses determined under division (D) of	9176
section 5751.20 of the Revised Code, payments shall be made in an	9177
amount equal to the following:	9178

(a) For tax years 2006 through 2010, one hundred per cent of	9179
such losses;	9180

(b) For the payment in tax year 2011 to be made on or before	9181
the twentieth day of November, the sum of the amount in division	9182
(A)(1)(b)(i) or (ii) and division (A)(1)(b)(iii) of this section:	9183

(i) If the ratio of six-sevenths of the TPP allocation to	9184
total resources is equal to or less than the threshold per cent,	9185
zero;	9186

(ii) If the ratio of six-sevenths of the TPP allocation to	9187
total resources is greater than the threshold per cent, the	9188
difference of six-sevenths of the TPP allocation minus the product	9189
of total resources multiplied by the threshold per cent;	9190

(iii) In the case of a municipal corporation, six-sevenths of	9191
the product of the non-current expense TPP allocation multiplied	9192
by seventy-five per cent.	9193

(c) For tax years 2012 and thereafter, the sum of the amount	9194
in division (A)(1)(c)(i) or (ii) and division (A)(1)(c)(iii) of	9195
this section:	9196

(i) If the ratio of TPP allocation to total resources is	9197
equal to or less than the threshold per cent, zero;	9198

(ii) If the ratio of TPP allocation to total resources is	9199
greater than the threshold per cent, the TPP allocation minus the	9200
product of total resources multiplied by the threshold per cent;	9201

(iii) In the case of a municipal corporation, non-current	9202
expense TPP allocation multiplied by fifty per cent for tax year	9203
2012 and twenty-five per cent for tax years 2013 and thereafter;	9204

(d) For tax years 2012 and thereafter, in the case of a	9205
county, school district, municipal corporation, or township public	9206
library, the amount in division (A)(1)(d)(i) or (ii) of this	9207
section:	9208

(i) If the ratio of TPP allocation for library purposes to	9209
total library resources is equal to or less than the threshold per	9210
cent, zero;	9211

(ii) If the ratio of TPP allocation for library purposes to	9212
total library resources is greater than the threshold per cent,	9213
the TPP allocation for library purposes minus the product of total	9214
library resources multiplied by the threshold per cent.	9215

(2) For fixed-sum levy losses determined under division (E)	9216
of section 5751.20 of the Revised Code, payments shall be made in	9217
the amount of one hundred per cent of the fixed-sum levy loss for	9218
payments required to be made in 2006 and thereafterthrough 2011,	9219
except that no payments shall be made for qualifying levies that	9220
have expired. For payments required to be made in 2012 and	9221
thereafter, payments shall be made in the amount of fifty per cent	9222
of the fixed-sum levy loss until the qualifying levy has expired.	9223

(3) For taxes levied within the ten-mill limitation or	9224
pursuant to a municipal charter for debt purposes in tax year	9225
2005, payments shall be made based on the schedule in division	9226
(A)(1) of this section for each of the calendar years 2006 through	9227
2010. For each of the calendar years 2011 through 2017, the	9228
percentages for calendar year 2010 shall be used for taxes levied	9229
within the ten-mill limitation or pursuant to a municipal charter	9230
for debt purposes in tax year 2010, as long as such levies	9231
continue to be used for debt purposes. If the purpose of such a	9232
qualifying levy is changed, that levy becomes subject to the	9233
payment schedules in divisions (A)(1)(a) to (h) of this section.	9234
No payments shall be made for such levies after calendar year	9235
2017. For the purposes of this division, taxes levied pursuant to	9236
a municipal charter refer to taxes levied pursuant to a provision	9237
of a municipal charter that permits the tax to be levied without	9238
prior voter approval.	9239

(B) Beginning in 2007, by the thirty-first day of January of	9240
each year, the tax commissioner shall review the calculation	9241
originally made under division (A) of this section of the	9242
fixed-sum levy losses determined under division (E) of section	9243
5751.20 of the Revised Code. If the commissioner determines that a	9244
fixed-sum levy that had been scheduled to be reimbursed in the	9245
current year has expired, a revised calculation for that and all	9246
subsequent years shall be made.	9247

(C) Payments to local taxing units and public libraries	9248
required to be made under division (A) of this section shall be	9249
paid from the local government tangible property tax replacement	9250
fund to the county undivided income tax fund in the proper county	9251
treasury. From May 2006 through November 2010, one-seventh of the	9252
amount determined under that division shall be paid by the last	9253
day of May each year, and three-sevenths shall be paid by the last	9254
day of August and October each year. From May 2011 through	9255
November 2013, one-seventh of the amount determined under that	9256
division shall be paid on or before the last day of May each year,	9257
and six-sevenths shall be paid on or before the twentieth	9258
thirtieth day of November each year, except that in November 2011,	9259
the payment shall equal one hundred per cent of the amount	9260
calculated for that payment. Beginning in May 2014, one-half of	9261
the amount determined under that division shall be paid on or	9262
before the last day of May each year, and one-half shall be paid	9263
on or before the twentieththirtieth day of November each year.	9264
Within fortythirty days after receipt of such payments, the	9265
county treasurer shall distribute amounts determined under	9266
division (A) of this section to the proper local taxing unit or	9267
public library as if they had been levied and collected as taxes,	9268
and the local taxing unit or public library shall apportion the	9269
amounts so received among its funds in the same proportions as if	9270
those amounts had been levied and collected as taxes.	9271

(D) For each of the fiscal years 2006 through 2018, if the	9272
total amount in the local government tangible property tax	9273
replacement fund is insufficient to make all payments under	9274
division (C) of this section at the times the payments are to be	9275
made, the director of budget and management shall transfer from	9276
the general revenue fund to the local government tangible property	9277
tax replacement fund the difference between the total amount to be	9278
paid and the amount in the local government tangible property tax	9279
replacement fund. For each fiscal year after 2018, at the time	9280
payments under division (A)(2) of this section are to be made, the	9281
director of budget and management shall transfer from the general	9282
revenue fund to the local government property tax replacement fund	9283
the amount necessary to make such payments.	9284

(E) On the fifteenth day of June of each year from 2006	9285
through 2018, the director of budget and management may transfer	9286
any balance in the local government tangible property tax	9287
replacement fund to the general revenue fund.	9288

(F) If all or a part of the territories of two or more local	9289
taxing units are merged, or unincorporated territory of a township	9290
is annexed by a municipal corporation, the tax commissioner shall	9291
adjust the payments made under this section to each of the local	9292
taxing units in proportion to the square mileage of the merged or	9293
annexed territory as a percentage of the total square mileage of	9294
the jurisdiction from which the territory originated, or as	9295
otherwise provided by a written agreement between the legislative	9296
authorities of the local taxing units certified to the	9297
commissioner not later than the first day of June of the calendar	9298
year in which the payment is to be made.	9299

Sec. 5753.03.  (A) For the purpose of receiving and	9300
distributing, and accounting for, revenue received from the tax	9301
levied by section 5753.02 of the Revised Code, the following funds	9302
are created in the state treasury:	9303

(1) The casino tax revenue fund;

9304

(2) The gross casino revenue county fund;

9305

(3) The gross casino revenue county student fund;

9306

(4) The gross casino revenue host city fund;

9307

(5) The Ohio state racing commission fund;

9308

(6) The Ohio law enforcement training fund;

9309

(7) The problem casino gambling and addictions fund;

9310

(8) The casino control commission fund;

9311

(9) The casino tax administration fund;

9312

(10) The peace officer training academy fund;

9313

(11) The criminal justice services casino tax revenue fund.

9314

(B) All moneys collected from the tax levied under this	9315
chapter shall be deposited into the casino tax revenue fund.	9316

(C) From the casino tax revenue fund the director of budget	9317
and management shall transfer as needed to the tax refund fund	9318
amounts equal to the refunds certified by the tax commissioner	9319
under section 5753.06 of the Revised Code.	9320

(D) After making any transfers required by division (C) of	9321
this section, but not later than the fifteenth day of the month	9322
following the end of each calendar quarter, the director of budget	9323
and management shall transfer amounts to each fund as follows:	9324

(1) Fifty-one per cent to the gross casino revenue county	9325
fund to make payments as required by Section 6(C)(3)(a) of Article	9326
XV, Ohio Constitution;	9327

(2) Thirty-four per cent to the gross casino revenue county	9328
student fund to make payments as required by Section 6(C)(3)(b) of	9329
Article XV, Ohio Constitution;	9330

(3) Five per cent to the gross casino revenue host city fund	9331
for the benefit of the cities in which casino facilities are	9332
located;	9333

(4) Three per cent to the Ohio state racing commission fund	9334
to support the efforts and activities of the Ohio state racing	9335
commission to promote horse racing in this state at which the	9336
pari-mutuel system of wagering is conducted;	9337

(5) Two per cent to the Ohio law enforcement training fund to	9338
support law enforcement functions in the state;	9339

(6) Two per cent to the problem casino gambling and	9340
addictions fund to support efforts of the department of alcohol	9341
and drug addiction services to alleviate problem gambling and	9342
substance abuse and related research in the state under section	9343
3793.032 of the Revised Code;	9344

(7) Three per cent to the casino control commission fund to	9345
support the operations of the Ohio casino control commission and	9346
to defray the cost of administering the tax levied under section	9347
5753.02 of the Revised Code.	9348

Payments under divisions (D)(1), (2), and (3) of this section	9349
shall be made by the end of the month following the end of the	9350
quarterly period. The tax commissioner shall make the data	9351
available to the director of budget and management for this	9352
purpose.	9353

Of the money credited to the Ohio law enforcement training	9354
fund, the director of budget and management shall distribute	9355
eighty-five per cent of the money to the police officer training	9356
academy fund for the purpose of supporting the law enforcement	9357
training efforts of the Ohio peace officer training academy and	9358
fifteen per cent of the money to the criminal justice services	9359
casino tax revenue fund for the purpose of supporting the law	9360
enforcement training efforts of the division of criminal justice	9361
services.	9362

(E) The director of budget and management shall transfer one	9363
per cent of the money credited to the casino control commission	9364
fund to the casino tax administration fund. The tax commissioner	9365
shall use the casino tax administration fund to defray the costs	9366
incurred in administering the tax levied by this chapter.	9367

Section 2. That existing sections 122.85, 131.02, 349.01,	9368
1545.21, 1701.86, 1702.47, 3769.28, 4301.42, 4303.33, 4701.01,	9369
4701.04, 5703.261, 5703.37, 5703.47, 5705.313, 5709.084, 5709.40,	9370
5709.41, 5709.73, 5709.78, 5727.84, 5727.86, 5731.39, 5733.056,	9371
5735.02, 5735.03, 5735.35, 5739.01, 5739.02, 5739.021, 5739.023,	9372
5739.026, 5739.04, 5739.17, 5741.08, 5743.20, 5743.61, 5743.66,	9373
5747.082, 5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05,	9374
5751.051, 5751.12, 5751.20, 5751.22, and 5753.03 and section	9375
5751.032 of the Revised Code are hereby repealed.	9376

Section 757.10. Notwithstanding sections 5713.01 and 5715.24	9377
of the Revised Code, for the purpose of equalizing and	9378
regionalizing real property assessment cycles, beginning in tax	9379
year 2014 and continuing for not more than five years, the Tax	9380
Commissioner may extend the revaluation of real property required	9381
in any county by not more than one year.	9382

Section 757.20. The Tax Commissioner is not required to issue	9383
the certifications that are or were otherwise required to be made	9384
on or before May 15, 2012, or June 1, 2012, under sections	9385
3317.026, 3317.027, 3317.028, and divisions (A)(4), (6), and (7)	9386
of section 3317.021 of the Revised Code. This section is intended	9387
to be remedial in nature and to be construed liberally to	9388
accomplish the purpose of avoiding unnecessary certifications.	9389

Section 757.30. Section 5709.084 of the Revised Code, as	9390
amended by this act, is remedial in nature and applies to the tax	9391
years at issue in any application for exemption from taxation or	9392
any appeal from such an application pending before the Tax	9393
Commissioner, the Board of Tax Appeals, any Court of Appeals, or	9394
the Supreme Court on the effective date of this act and to the	9395
property that is the subject of any such application or appeal.	9396

Section 757.40. The amendment by this act of section 5751.03	9397
of the Revised Code takes effect January 1, 2013. No taxpayer	9398
shall carry forward any unused exclusion amount from calendar year	9399
2012 to calendar year 2013, but shall fully utilize any such	9400
amount in calendar year 2012.	9401

Section 806.10. The items of law contained in this act, and	9402
their applications, are severable. If any item of law contained in	9403
this act, or if any application of any item of law contained in	9404
this act, is held invalid, the invalidity does not affect other	9405
items of law contained in this act and their applications that can	9406
be given effect without the invalid item of law or application.	9407

Section 812.10. Sections subject to referendum: general	9408
effective date. Except as otherwise provided in this act, the	9409
amendment, enactment, or repeal by this act of a section is	9410
subject to the referendum under Ohio Constitution, Article II,	9411
Section 1c and therefore takes effect on the ninety-first day	9412
after this act is filed with the Secretary of State.	9413

Section 812.20. Sections exempt from referendum: general	9414
effective date. The amendment, enactment, or repeal by this act of	9415
the following sections is exempt from the referendum under Ohio	9416
Constitution, Article II, Section 1d and section 1.471 of the	9417
Revised Code and therefore takes effect immediately when this act	9418
becomes law:	9419

Sections 5727.84, 5727.86, 5751.20, 5751.22, and 5753.03 of	9420
the Revised Code.	9421

Section 757.20 of this act.

9422

Section 815.10. Section 5751.01 of the Revised Code is	9423
presented in this act as a composite of the section as amended by	9424
both Am. Sub. H.B. 153 and Sub. H.B. 277 of the 129th General	9425
Assembly. The General Assembly, applying the principle stated in	9426
division (B) of section 1.52 of the Revised Code that amendments	9427
are to be harmonized if reasonably capable of simultaneous	9428
operation, finds that the composite is the resulting version of	9429
the section in effect prior to the effective date of the section	9430
as presented in this act.	9431