As Passed by the Senate

130th General Assembly Regular Session 2013-2014

Am. Sub. H. B. No. 492

Representative Scherer 

Cosponsors: Representatives Amstutz, McClain, Anielski, Beck, Blessing, Boose, Brown, Budish, Burkley, Carney, Celebrezze, Damschroder, Duffey, Green, Hackett, Hagan, C., Henne, Huffman, Letson, McGregor, Milkovich, O'Brien, Patmon, Pelanda, Rogers, Ruhl, Sears, Sprague, Stebelton, Stinziano, Terhar, Thompson Speaker Batchelder 

Senators Coley, Eklund, Hite, Oelslager, Peterson, Seitz 

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A BILL

To amend sections 122.17, 122.171, 122.86, 166.21,

1

718.15, 718.151, 3734.905, 4921.13, 4921.19,

2

5703.056, 5703.059, 5703.21, 5727.47, 5727.91,

3

5735.01, 5735.026, 5735.05, 5735.062, 5735.07,

4

5735.09, 5735.12, 5735.141, 5735.23, 5736.01,

5

5736.02, 5736.03, 5736.04, 5736.06, 5736.09,

6

5736.13, 5743.01, 5743.021, 5743.024, 5743.025,

7

5743.03, 5743.04, 5743.05, 5743.051, 5743.112,

8

5743.52, 5743.65, 5747.08, 5747.98, 5751.01, and

9

5751.20, to enact sections 5736.041 and 5736.50,

10

and to repeal sections 183.35, 5726.08, 5733.30,

11

5735.16, 5743.06, and 5745.10 of the Revised Code

12

to provide authorization and conditions for the

13

levy and administration of taxes in this state.

14

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

Section 1. That sections 122.17, 122.171, 122.86, 166.21,	15
718.15, 718.151, 3734.905, 4921.13, 4921.19, 5703.056, 5703.059,	16
5703.21, 5727.47, 5727.91, 5735.01, 5735.026, 5735.05, 5735.062,	17
5735.07, 5735.09, 5735.12, 5735.141, 5735.23, 5736.01, 5736.02,	18
5736.03, 5736.04, 5736.06, 5736.09, 5736.13, 5743.01, 5743.021,	19
5743.024, 5743.025, 5743.03, 5743.04, 5743.05, 5743.051, 5743.112,	20
5743.52, 5743.65, 5747.08, 5747.98, 5751.01, and 5751.20 be	21
amended and sections 5736.041 and 5736.50 of the Revised Code be	22
enacted to read as follows:	23

Sec. 122.17.  (A) As used in this section:

24

(1) "Income tax revenue" means the total amount withheld	25
under section 5747.06 of the Revised Code by the taxpayer during	26
the taxable year, or during the calendar year that includes the	27
tax period, from the compensation of each employee or each	28
home-based employee employed in the project to the extent the	29
employee's withholdings are not used to determine the credit under	30
section 122.171 of the Revised Code. "Income tax revenue" excludes	31
amounts withheld before the day the taxpayer becomes eligible for	32
the credit.	33

(2) "Baseline income tax revenue" means income tax revenue	34
except that the applicable withholding period is the twelve months	35
immediately preceding the date the tax credit authority approves	36
the taxpayer's application or the date the tax credit authority	37
receives the recommendation described in division (C)(2)(a) of	38
this section, whichever occurs first, multiplied by the sum of one	39
plus an annual pay increase factor to be determined by the tax	40
credit authority. If the taxpayer becomes eligible for the credit	41
after the first day of the taxpayer's taxable year or after the	42
first day of the calendar year that includes the tax period, the	43
taxpayer's baseline income tax revenue for the first such taxable	44
or calendar year of credit eligibility shall be reduced in	45
proportion to the number of days during the taxable or calendar	46
year for which the taxpayer was not eligible for the credit. For	47
subsequent taxable or calendar years, "baseline income tax	48
revenue" equals the unreduced baseline income tax revenue for the	49
preceding taxable or calendar year multiplied by the sum of one	50
plus the pay increase factor.	51

(3) "Excess income tax revenue" means income tax revenue	52
minus baseline income tax revenue.	53

(4) "Home-based employee" means an employee whose services	54
are performed primarily from the employee's residence in this	55
state exclusively for the benefit of the project and whose rate of	56
pay is at least one hundred thirty-one per cent of the federal	57
minimum wage under 29 U.S.C. 206.	58

(B) The tax credit authority may make grants under this	59
section to foster job creation in this state. Such a grant shall	60
take the form of a refundable credit allowed against the tax	61
imposed by section 5725.18, 5726.02, 5729.03, 5733.06, 5736.02, or	62
5747.02 or levied under Chapter 5751. of the Revised Code. The	63
credit shall be claimed for the taxable years or tax periods	64
specified in the taxpayer's agreement with the tax credit	65
authority under division (D) of this section. With respect to	66
taxes imposed under section 5726.02, 5733.06, or 5747.02 or	67
Chapter 5751. of the Revised Code, the credit shall be claimed in	68
the order required under section 5726.98, 5733.98, 5747.98, or	69
5751.98 of the Revised Code. The amount of the credit available	70
for a taxable year or for a calendar year that includes a tax	71
period equals the excess income tax revenue for that year	72
multiplied by the percentage specified in the agreement with the	73
tax credit authority. Any credit granted under this section	74
against the tax imposed by section 5733.06 or 5747.02 of the	75
Revised Code, to the extent not fully utilized against such tax	76
for taxable years ending prior to 2008, shall automatically be	77
converted without any action taken by the tax credit authority to	78
a credit against the tax levied under Chapter 5751. of the Revised	79
Code for tax periods beginning on or after July 1, 2008, provided	80
that the person to whom the credit was granted is subject to such	81
tax. The converted credit shall apply to those calendar years in	82
which the remaining taxable years specified in the agreement end.	83

(C)(1) A taxpayer or potential taxpayer who proposes a	84
project to create new jobs in this state may apply to the tax	85
credit authority to enter into an agreement for a tax credit under	86
this section.	87

An application shall not propose to include both home-based	88
employees and employees who are not home-based employees in the	89
computation of income tax revenue for the purposes of the same tax	90
credit agreement. If a taxpayer or potential taxpayer employs both	91
home-based employees and employees who are not home-based	92
employees in a project, the taxpayer shall submit separate	93
applications for separate tax credit agreements for the project,	94
one of which shall include home-based employees in the computation	95
of income tax revenue and one of which shall include all other	96
employees in the computation of income tax revenue.	97

The director of development services shall prescribe the form	98
of the application. After receipt of an application, the authority	99
may enter into an agreement with the taxpayer for a credit under	100
this section if it determines all of the following:	101

(a) The taxpayer's project will increase payroll and income	102
tax revenue;	103

(b) The taxpayer's project is economically sound and will	104
benefit the people of this state by increasing opportunities for	105
employment and strengthening the economy of this state;	106

(c) Receiving the tax credit is a major factor in the	107
taxpayer's decision to go forward with the project.	108

(2)(a) A taxpayer that chooses to begin the project prior to	109
receiving the determination of the authority may, upon submitting	110
the taxpayer's application to the authority, request that the	111
chief investment officer of the nonprofit corporation formed under	112
section 187.01 of the Revised Code and the director review the	113
taxpayer's application and recommend to the authority that the	114
taxpayer's application be considered. As soon as possible after	115
receiving such a request, the chief investment officer and the	116
director shall review the taxpayer's application and, if they	117
determine that the application warrants consideration by the	118
authority, make that recommendation to the authority not later	119
than six months after the application is received by the	120
authority.	121

(b) The authority shall consider any taxpayer's application	122
for which it receives a recommendation under division (C)(2)(a) of	123
this section. If the authority determines that the taxpayer does	124
not meet all of the criteria set forth in division (C)(1) of this	125
section, the authority and the development services agency shall	126
proceed in accordance with rules adopted by the director pursuant	127
to division (I) of this section.	128

(D) An agreement under this section shall include all of the	129
following:	130

(1) A detailed description of the project that is the subject	131
of the agreement;	132

(2)(a) The term of the tax credit, which, except as provided	133
in division (D)(2)(b) of this section, shall not exceed fifteen	134
years, and the first taxable year, or first calendar year that	135
includes a tax period, for which the credit may be claimed;	136

(b) If the tax credit is computed on the basis of home-based	137
employees, the term of the credit shall expire on or before the	138
last day of the taxable or calendar year ending before the	139
beginning of the seventh year after September 6, 2012, the	140
effective date of H.B. 327 of the 129th general assembly.	141

(3) A requirement that the taxpayer shall maintain operations	142
at the project location for at least the greater of seven years or	143
the term of the credit plus three years;	144

(4) The percentage, as determined by the tax credit	145
authority, of excess income tax revenue that will be allowed as	146
the amount of the credit for each taxable year or for each	147
calendar year that includes a tax period;	148

(5) The pay increase factor to be applied to the taxpayer's	149
baseline income tax revenue;	150

(6) A requirement that the taxpayer annually shall report to	151
the director of development services employment, tax withholding,	152
investment, the provision of health care benefits and tuition	153
reimbursement if required in the agreement, and other information	154
the director needs to perform the director's duties under this	155
section;	156

(7) A requirement that the director of development services	157
annually review the information reported under division (D)(6) of	158
this section and verify compliance with the agreement; if the	159
taxpayer is in compliance, a requirement that the director issue a	160
certificate to the taxpayer stating that the information has been	161
verified and identifying the amount of the credit that may be	162
claimed for the taxable or calendar year;	163

(8) A provision providing that the taxpayer may not relocate	164
a substantial number of employment positions from elsewhere in	165
this state to the project location unless the director of	166
development services determines that the legislative authority of	167
the county, township, or municipal corporation from which the	168
employment positions would be relocated has been notified by the	169
taxpayer of the relocation.	170

For purposes of this section, the movement of an employment	171
position from one political subdivision to another political	172
subdivision shall be considered a relocation of an employment	173
position unless the employment position in the first political	174
subdivision is replaced.	175

(9) If the tax credit is computed on the basis of home-based	176
employees, that the tax credit may not be claimed by the taxpayer	177
until the taxable year or tax period in which the taxpayer employs	178
at least two hundred employees more than the number of employees	179
the taxpayer employed on June 30, 2011.	180

(E) If a taxpayer fails to meet or comply with any condition	181
or requirement set forth in a tax credit agreement, the tax credit	182
authority may amend the agreement to reduce the percentage or term	183
of the tax credit. The reduction of the percentage or term may	184
take effect in the current taxable or calendar year.	185

(F) Projects that consist solely of point-of-final-purchase	186
retail facilities are not eligible for a tax credit under this	187
section. If a project consists of both point-of-final-purchase	188
retail facilities and nonretail facilities, only the portion of	189
the project consisting of the nonretail facilities is eligible for	190
a tax credit and only the excess income tax revenue from the	191
nonretail facilities shall be considered when computing the amount	192
of the tax credit. If a warehouse facility is part of a	193
point-of-final-purchase retail facility and supplies only that	194
facility, the warehouse facility is not eligible for a tax credit.	195
Catalog distribution centers are not considered	196
point-of-final-purchase retail facilities for the purposes of this	197
division, and are eligible for tax credits under this section.	198

(G) Financial statements and other information submitted to	199
the development services agency or the tax credit authority by an	200
applicant or recipient of a tax credit under this section, and any	201
information taken for any purpose from such statements or	202
information, are not public records subject to section 149.43 of	203
the Revised Code. However, the chairperson of the authority may	204
make use of the statements and other information for purposes of	205
issuing public reports or in connection with court proceedings	206
concerning tax credit agreements under this section. Upon the	207
request of the tax commissioner or, if the applicant or recipient	208
is an insurance company, upon the request of the superintendent of	209
insurance, the chairperson of the authority shall provide to the	210
commissioner or superintendent any statement or information	211
submitted by an applicant or recipient of a tax credit in	212
connection with the credit. The commissioner or superintendent	213
shall preserve the confidentiality of the statement or	214
information.	215

(H) A taxpayer claiming a credit under this section shall	216
submit to the tax commissioner or, if the taxpayer is an insurance	217
company, to the superintendent of insurance, a copy of the	218
director of development services' certificate of verification	219
under division (D)(7) of this section with the taxpayer's tax	220
report or return for the taxable year or for the calendar year	221
that includes the tax period. Failure to submit a copy of the	222
certificate with the report or return does not invalidate a claim	223
for a credit if the taxpayer submits a copy of the certificate to	224
the commissioner or superintendent within sixty days after the	225
commissioner or superintendent requests it.	226

(I) The director of development services, after consultation	227
with the tax commissioner and the superintendent of insurance and	228
in accordance with Chapter 119. of the Revised Code, shall adopt	229
rules necessary to implement this section, including rules that	230
establish a procedure to be followed by the tax credit authority	231
and the development services agency in the event the authority	232
considers a taxpayer's application for which it receives a	233
recommendation under division (C)(2)(a) of this section but does	234
not approve it. The rules may provide for recipients of tax	235
credits under this section to be charged fees to cover	236
administrative costs of the tax credit program. The fees collected	237
shall be credited to the business assistance fund created in	238
section 122.174 of the Revised Code. At the time the director	239
gives public notice under division (A) of section 119.03 of the	240
Revised Code of the adoption of the rules, the director shall	241
submit copies of the proposed rules to the chairpersons of the	242
standing committees on economic development in the senate and the	243
house of representatives.	244

(J) For the purposes of this section, a taxpayer may include	245
a partnership, a corporation that has made an election under	246
subchapter S of chapter one of subtitle A of the Internal Revenue	247
Code, or any other business entity through which income flows as a	248
distributive share to its owners. A partnership, S-corporation, or	249
other such business entity may elect to pass the credit received	250
under this section through to the persons to whom the income or	251
profit of the partnership, S-corporation, or other entity is	252
distributed. The election shall be made on the annual report	253
required under division (D)(6) of this section. The election	254
applies to and is irrevocable for the credit for which the report	255
is submitted. If the election is made, the credit shall be	256
apportioned among those persons in the same proportions as those	257
in which the income or profit is distributed.	258

(K) If the director of development services determines that a	259
taxpayer who has received a credit under this section is not	260
complying with the requirement under division (D)(3) of this	261
section, the director shall notify the tax credit authority of the	262
noncompliance. After receiving such a notice, and after giving the	263
taxpayer an opportunity to explain the noncompliance, the tax	264
credit authority may require the taxpayer to refund to this state	265
a portion of the credit in accordance with the following:	266

(1) If the taxpayer maintained operations at the project	267
location for a period less than or equal to the term of the	268
credit, an amount not exceeding one hundred per cent of the sum of	269
any credits allowed and received under this section;	270

(2) If the taxpayer maintained operations at the project	271
location for a period longer than the term of the credit, but less	272
than the greater of seven years or the term of the credit plus	273
three years, an amount not exceeding seventy-five per cent of the	274
sum of any credits allowed and received under this section.	275

In determining the portion of the tax credit to be refunded	276
to this state, the tax credit authority shall consider the effect	277
of market conditions on the taxpayer's project and whether the	278
taxpayer continues to maintain other operations in this state.	279
After making the determination, the authority shall certify the	280
amount to be refunded to the tax commissioner or superintendent of	281
insurance, as appropriate. If the amount is certified to the	282
commissioner, the commissioner shall make an assessment for that	283
amount against the taxpayer under Chapter 5726., 5733., 5736.,	284
5747., or 5751. of the Revised Code. If the amount is certified to	285
the superintendent, the superintendent shall make an assessment	286
for that amount against the taxpayer under Chapter 5725. or 5729.	287
of the Revised Code. The time limitations on assessments under	288
those chapters do not apply to an assessment under this division,	289
but the commissioner or superintendent, as appropriate, shall make	290
the assessment within one year after the date the authority	291
certifies to the commissioner or superintendent the amount to be	292
refunded.	293

(L) On or before the first day of August each year, the	294
director of development services shall submit a report to the	295
governor, the president of the senate, and the speaker of the	296
house of representatives on the tax credit program under this	297
section. The report shall include information on the number of	298
agreements that were entered into under this section during the	299
preceding calendar year, a description of the project that is the	300
subject of each such agreement, and an update on the status of	301
projects under agreements entered into before the preceding	302
calendar year.	303

(M) There is hereby created the tax credit authority, which	304
consists of the director of development services and four other	305
members appointed as follows: the governor, the president of the	306
senate, and the speaker of the house of representatives each shall	307
appoint one member who shall be a specialist in economic	308
development; the governor also shall appoint a member who is a	309
specialist in taxation. Of the initial appointees, the members	310
appointed by the governor shall serve a term of two years; the	311
members appointed by the president of the senate and the speaker	312
of the house of representatives shall serve a term of four years.	313
Thereafter, terms of office shall be for four years. Initial	314
appointments to the authority shall be made within thirty days	315
after January 13, 1993. Each member shall serve on the authority	316
until the end of the term for which the member was appointed.	317
Vacancies shall be filled in the same manner provided for original	318
appointments. Any member appointed to fill a vacancy occurring	319
prior to the expiration of the term for which the member's	320
predecessor was appointed shall hold office for the remainder of	321
that term. Members may be reappointed to the authority. Members of	322
the authority shall receive their necessary and actual expenses	323
while engaged in the business of the authority. The director of	324
development services shall serve as chairperson of the authority,	325
and the members annually shall elect a vice-chairperson from among	326
themselves. Three members of the authority constitute a quorum to	327
transact and vote on the business of the authority. The majority	328
vote of the membership of the authority is necessary to approve	329
any such business, including the election of the vice-chairperson.	330

The director of development services may appoint a	331
professional employee of the development services agency to serve	332
as the director's substitute at a meeting of the authority. The	333
director shall make the appointment in writing. In the absence of	334
the director from a meeting of the authority, the appointed	335
substitute shall serve as chairperson. In the absence of both the	336
director and the director's substitute from a meeting, the	337
vice-chairperson shall serve as chairperson.	338

(N) For purposes of the credits granted by this section	339
against the taxes imposed under sections 5725.18 and 5729.03 of	340
the Revised Code, "taxable year" means the period covered by the	341
taxpayer's annual statement to the superintendent of insurance.	342

(O) On or before the first day of March of each of the five	343
calendar years beginning with 2014, each taxpayer subject to an	344
agreement with the tax credit authority under this section on the	345
basis of home-based employees shall report the number of	346
home-based employees and other employees employed by the taxpayer	347
in this state to the development services agency.	348

(P) On or before the first day of January of 2019, the	349
director of development services shall submit a report to the	350
governor, the president of the senate, and the speaker of the	351
house of representatives on the effect of agreements entered into	352
under this section in which the taxpayer included home-based	353
employees in the computation of income tax revenue. The report	354
shall include information on the number of such agreements that	355
were entered into in the preceding six years, a description of the	356
projects that were the subjects of such agreements, and an	357
analysis of nationwide home-based employment trends, including the	358
number of home-based jobs created from July 1, 2011, through June	359
30, 2017, and a description of any home-based employment tax	360
incentives provided by other states during that time.	361

(Q) The director of development services may require any	362
agreement entered into under this section for a tax credit	363
computed on the basis of home-based employees to contain a	364
provision that the taxpayer makes available health care benefits	365
and tuition reimbursement to all employees.	366

Sec. 122.171. (A) As used in this section:

367

(1) "Capital investment project" means a plan of investment	368
at a project site for the acquisition, construction, renovation,	369
or repair of buildings, machinery, or equipment, or for	370
capitalized costs of basic research and new product development	371
determined in accordance with generally accepted accounting	372
principles, but does not include any of the following:	373

(a) Payments made for the acquisition of personal property	374
through operating leases;	375

(b) Project costs paid before January 1, 2002;

376

(c) Payments made to a related member as defined in section	377
5733.042 of the Revised Code or to a consolidated elected taxpayer	378
or a combined taxpayer as defined in section 5751.01 of the	379
Revised Code.	380

(2) "Eligible business" means a taxpayer and its related	381
members with Ohio operations satisfying all of the following:	382

(a) The taxpayer employs at least five hundred full-time	383
equivalent employees or has an annual payroll of at least	384
thirty-five million dollars at the time the tax credit authority	385
grants the tax credit under this section;	386

(b) The taxpayer makes or causes to be made payments for the	387
capital investment project of one of the following:	388

(i) If the taxpayer is engaged at the project site primarily	389
as a manufacturer, at least fifty million dollars in the aggregate	390
at the project site during a period of three consecutive calendar	391
years, including the calendar year that includes a day of the	392
taxpayer's taxable year or tax period with respect to which the	393
credit is granted;	394

(ii) If the taxpayer is engaged at the project site primarily	395
in significant corporate administrative functions, as defined by	396
the director of development services by rule, at least twenty	397
million dollars in the aggregate at the project site during a	398
period of three consecutive calendar years including the calendar	399
year that includes a day of the taxpayer's taxable year or tax	400
period with respect to which the credit is granted;	401

(iii) If the taxpayer is applying to enter into an agreement	402
for a tax credit authorized under division (B)(3) of this section,	403
at least five million dollars in the aggregate at the project site	404
during a period of three consecutive calendar years, including the	405
calendar year that includes a day of the taxpayer's taxable year	406
or tax period with respect to which the credit is granted.	407

(c) The taxpayer had a capital investment project reviewed	408
and approved by the tax credit authority as provided in divisions	409
(C), (D), and (E) of this section.	410

(3) "Full-time equivalent employees" means the quotient	411
obtained by dividing the total number of hours for which employees	412
were compensated for employment in the project by two thousand	413
eighty. "Full-time equivalent employees" shall exclude hours that	414
are counted for a credit under section 122.17 of the Revised Code.	415

(4) "Income tax revenue" means the total amount withheld	416
under section 5747.06 of the Revised Code by the taxpayer during	417
the taxable year, or during the calendar year that includes the	418
tax period, from the compensation of all employees employed in the	419
project whose hours of compensation are included in calculating	420
the number of full-time equivalent employees.	421

(5) "Manufacturer" has the same meaning as in section	422
5739.011 of the Revised Code.	423

(6) "Project site" means an integrated complex of facilities	424
in this state, as specified by the tax credit authority under this	425
section, within a fifteen-mile radius where a taxpayer is	426
primarily operating as an eligible business.	427

(7) "Related member" has the same meaning as in section	428
5733.042 of the Revised Code as that section existed on the	429
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd	430
general assembly, September 29, 1997.	431

(8) "Taxable year" includes, in the case of a domestic or	432
foreign insurance company, the calendar year ending on the	433
thirty-first day of December preceding the day the superintendent	434
of insurance is required to certify to the treasurer of state	435
under section 5725.20 or 5729.05 of the Revised Code the amount of	436
taxes due from insurance companies.	437

(B) The tax credit authority created under section 122.17 of	438
the Revised Code may grant tax credits under this section for the	439
purpose of fostering job retention in this state. Upon application	440
by an eligible business and upon consideration of the	441
recommendation of the director of budget and management, tax	442
commissioner, the superintendent of insurance in the case of an	443
insurance company, and director of development services under	444
division (C) of this section, the tax credit authority may grant	445
the following credits against the tax imposed by section 5725.18,	446
5726.02, 5729.03, 5733.06, 5736.02, 5747.02, or 5751.02 of the	447
Revised Code:	448

(1) A nonrefundable credit to an eligible business;

449

(2) A refundable credit to an eligible business meeting the	450
following conditions, provided that the director of budget and	451
management, tax commissioner, superintendent of insurance in the	452
case of an insurance company, and director of development services	453
have recommended the granting of the credit to the tax credit	454
authority before July 1, 2011:	455

(a) The business retains at least one thousand full-time	456
equivalent employees at the project site.	457

(b) The business makes or causes to be made payments for a	458
capital investment project of at least twenty-five million dollars	459
in the aggregate at the project site during a period of three	460
consecutive calendar years, including the calendar year that	461
includes a day of the business' taxable year or tax period with	462
respect to which the credit is granted.	463

(c) In 2010, the business received a written offer of	464
financial incentives from another state of the United States that	465
the director determines to be sufficient inducement for the	466
business to relocate the business' operations from this state to	467
that state.	468

(3) A refundable credit to an eligible business with a total	469
annual payroll of at least twenty million dollars, provided that	470
the tax credit authority grants the tax credit on or after July 1,	471
2011, and before January 1, 2014.	472

The credits authorized in divisions (B)(1), (2), and (3) of	473
this section may be granted for a period up to fifteen taxable	474
years or, in the case of the tax levied by section 5736.02 or	475
5751.02 of the Revised Code, for a period of up to fifteen	476
calendar years. The credit amount for a taxable year or a calendar	477
year that includes the tax period for which a credit may be	478
claimed equals the income tax revenue for that year multiplied by	479
the percentage specified in the agreement with the tax credit	480
authority. The percentage may not exceed seventy-five per cent.	481
The credit shall be claimed in the order required under section	482
5725.98, 5726.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the	483
Revised Code. In determining the percentage and term of the	484
credit, the tax credit authority shall consider both the number of	485
full-time equivalent employees and the value of the capital	486
investment project. The credit amount may not be based on the	487
income tax revenue for a calendar year before the calendar year in	488
which the tax credit authority specifies the tax credit is to	489
begin, and the credit shall be claimed only for the taxable years	490
or tax periods specified in the eligible business' agreement with	491
the tax credit authority. In no event shall the credit be claimed	492
for a taxable year or tax period terminating before the date	493
specified in the agreement. Any credit granted under this section	494
against the tax imposed by section 5733.06 or 5747.02 of the	495
Revised Code, to the extent not fully utilized against such tax	496
for taxable years ending prior to 2008, shall automatically be	497
converted without any action taken by the tax credit authority to	498
a credit against the tax levied under Chapter 5751. of the Revised	499
Code for tax periods beginning on or after July 1, 2008, provided	500
that the person to whom the credit was granted is subject to such	501
tax. The converted credit shall apply to those calendar years in	502
which the remaining taxable years specified in the agreement end.	503

If a nonrefundable credit allowed under division (B)(1) of	504
this section for a taxable year or tax period exceeds the	505
taxpayer's tax liability for that year or period, the excess may	506
be carried forward for the three succeeding taxable or calendar	507
years, but the amount of any excess credit allowed in any taxable	508
year or tax period shall be deducted from the balance carried	509
forward to the succeeding year or period.	510

(C) A taxpayer that proposes a capital investment project to	511
retain jobs in this state may apply to the tax credit authority to	512
enter into an agreement for a tax credit under this section. The	513
director of development services shall prescribe the form of the	514
application. After receipt of an application, the authority shall	515
forward copies of the application to the director of budget and	516
management, the tax commissioner, the superintendent of insurance	517
in the case of an insurance company, and the director of	518
development services, each of whom shall review the application to	519
determine the economic impact the proposed project would have on	520
the state and the affected political subdivisions and shall submit	521
a summary of their determinations and recommendations to the	522
authority.	523

(D) Upon review and consideration of the determinations and	524
recommendations described in division (C) of this section, the tax	525
credit authority may enter into an agreement with the taxpayer for	526
a credit under this section if the authority determines all of the	527
following:	528

(1) The taxpayer's capital investment project will result in	529
the retention of employment in this state.	530

(2) The taxpayer is economically sound and has the ability to	531
complete the proposed capital investment project.	532

(3) The taxpayer intends to and has the ability to maintain	533
operations at the project site for at least the greater of (a) the	534
term of the credit plus three years, or (b) seven years.	535

(4) Receiving the credit is a major factor in the taxpayer's	536
decision to begin, continue with, or complete the project.	537

(5) If the taxpayer is applying to enter into an agreement	538
for a tax credit authorized under division (B)(3) of this section,	539
the taxpayer's capital investment project will be located in the	540
political subdivision in which the taxpayer maintains its	541
principal place of business or maintains a unit or division with	542
at least four thousand two hundred employees at the project site.	543

(E) An agreement under this section shall include all of the	544
following:	545

(1) A detailed description of the project that is the subject	546
of the agreement, including the amount of the investment, the	547
period over which the investment has been or is being made, the	548
number of full-time equivalent employees at the project site, and	549
the anticipated income tax revenue to be generated.	550

(2) The term of the credit, the percentage of the tax credit,	551
the maximum annual value of tax credits that may be allowed each	552
year, and the first year for which the credit may be claimed.	553

(3) A requirement that the taxpayer maintain operations at	554
the project site for at least the greater of (a) the term of the	555
credit plus three years, or (b) seven years.	556

(4)(a) In the case of a credit granted under division (B)(1)	557
of this section, a requirement that the taxpayer retain at least	558
five hundred full-time equivalent employees at the project site	559
and within this state for the entire term of the credit, or a	560
requirement that the taxpayer maintain an annual payroll of at	561
least thirty-five million dollars for the entire term of the	562
credit;	563

(b) In the case of a credit granted under division (B)(2) of	564
this section, a requirement that the taxpayer retain at least one	565
thousand full-time equivalent employees at the project site and	566
within this state for the entire term of the credit;	567

(c) In the case of a credit granted under division (B)(3) of	568
this section, either of the following:	569

(i) A requirement that the taxpayer retain at least five	570
hundred full-time equivalent employees at the project site and	571
within this state for the entire term of the credit and a	572
requirement that the taxpayer maintain an annual payroll of at	573
least twenty million dollars for the entire term of the credit;	574

(ii) A requirement that the taxpayer maintain an annual	575
payroll of at least thirty-five million dollars for the entire	576
term of the credit.	577

(5) A requirement that the taxpayer annually report to the	578
director of development services employment, tax withholding,	579
capital investment, and other information the director needs to	580
perform the director's duties under this section.	581

(6) A requirement that the director of development services	582
annually review the annual reports of the taxpayer to verify the	583
information reported under division (E)(5) of this section and	584
compliance with the agreement. Upon verification, the director	585
shall issue a certificate to the taxpayer stating that the	586
information has been verified and identifying the amount of the	587
credit for the taxable year or calendar year that includes the tax	588
period. In determining the number of full-time equivalent	589
employees, no position shall be counted that is filled by an	590
employee who is included in the calculation of a tax credit under	591
section 122.17 of the Revised Code.	592

(7) A provision providing that the taxpayer may not relocate	593
a substantial number of employment positions from elsewhere in	594
this state to the project site unless the director of development	595
services determines that the taxpayer notified the legislative	596
authority of the county, township, or municipal corporation from	597
which the employment positions would be relocated.	598

For purposes of this section, the movement of an employment	599
position from one political subdivision to another political	600
subdivision shall be considered a relocation of an employment	601
position unless the movement is confined to the project site. The	602
transfer of an employment position from one political subdivision	603
to another political subdivision shall not be considered a	604
relocation of an employment position if the employment position in	605
the first political subdivision is replaced by another employment	606
position.	607

(8) A waiver by the taxpayer of any limitations periods	608
relating to assessments or adjustments resulting from the	609
taxpayer's failure to comply with the agreement.	610

(F) If a taxpayer fails to meet or comply with any condition	611
or requirement set forth in a tax credit agreement, the tax credit	612
authority may amend the agreement to reduce the percentage or term	613
of the credit. The reduction of the percentage or term may take	614
effect in the current taxable or calendar year.	615

(G) Financial statements and other information submitted to	616
the department of development services or the tax credit authority	617
by an applicant for or recipient of a tax credit under this	618
section, and any information taken for any purpose from such	619
statements or information, are not public records subject to	620
section 149.43 of the Revised Code. However, the chairperson of	621
the authority may make use of the statements and other information	622
for purposes of issuing public reports or in connection with court	623
proceedings concerning tax credit agreements under this section.	624
Upon the request of the tax commissioner, or the superintendent of	625
insurance in the case of an insurance company, the chairperson of	626
the authority shall provide to the commissioner or superintendent	627
any statement or other information submitted by an applicant for	628
or recipient of a tax credit in connection with the credit. The	629
commissioner or superintendent shall preserve the confidentiality	630
of the statement or other information.	631

(H) A taxpayer claiming a tax credit under this section shall	632
submit to the tax commissioner or, in the case of an insurance	633
company, to the superintendent of insurance, a copy of the	634
director of development services' certificate of verification	635
under division (E)(6) of this section with the taxpayer's tax	636
report or return for the taxable year or for the calendar year	637
that includes the tax period. Failure to submit a copy of the	638
certificate with the report or return does not invalidate a claim	639
for a credit if the taxpayer submits a copy of the certificate to	640
the commissioner or superintendent within sixty days after the	641
commissioner or superintendent requests it.	642

(I) For the purposes of this section, a taxpayer may include	643
a partnership, a corporation that has made an election under	644
subchapter S of chapter one of subtitle A of the Internal Revenue	645
Code, or any other business entity through which income flows as a	646
distributive share to its owners. A partnership, S-corporation, or	647
other such business entity may elect to pass the credit received	648
under this section through to the persons to whom the income or	649
profit of the partnership, S-corporation, or other entity is	650
distributed. The election shall be made on the annual report	651
required under division (E)(5) of this section. The election	652
applies to and is irrevocable for the credit for which the report	653
is submitted. If the election is made, the credit shall be	654
apportioned among those persons in the same proportions as those	655
in which the income or profit is distributed.	656

(J) If the director of development services determines that a	657
taxpayer that received a certificate under division (E)(6) of this	658
section is not complying with the requirement under division	659
(E)(3) of this section, the director shall notify the tax credit	660
authority of the noncompliance. After receiving such a notice, and	661
after giving the taxpayer an opportunity to explain the	662
noncompliance, the authority may terminate the agreement and	663
require the taxpayer, or any related member or members that	664
claimed the tax credit under division (N) of this section, to	665
refund to the state all or a portion of the credit claimed in	666
previous years, as follows:	667

(1) If the taxpayer maintained operations at the project site	668
for less than or equal to the term of the credit, an amount not to	669
exceed one hundred per cent of the sum of any tax credits allowed	670
and received under this section.	671

(2) If the taxpayer maintained operations at the project site	672
longer than the term of the credit, but less than the greater of	673
(a) the term of the credit plus three years, or (b) seven years,	674
the amount required to be refunded shall not exceed seventy-five	675
per cent of the sum of any tax credits allowed and received under	676
this section.	677

In determining the portion of the credit to be refunded to	678
this state, the authority shall consider the effect of market	679
conditions on the taxpayer's project and whether the taxpayer	680
continues to maintain other operations in this state. After making	681
the determination, the authority shall certify the amount to be	682
refunded to the tax commissioner or the superintendent of	683
insurance. If the taxpayer, or any related member or members who	684
claimed the tax credit under division (N) of this section, is not	685
an insurance company, the commissioner shall make an assessment	686
for that amount against the taxpayer under Chapter 5726., 5733.,	687
5736., 5747., or 5751. of the Revised Code. If the taxpayer, or	688
any related member or members that claimed the tax credit under	689
division (N) of this section, is an insurance company, the	690
superintendent of insurance shall make an assessment under section	691
5725.222 or 5729.102 of the Revised Code. The time limitations on	692
assessments under those chapters and sections do not apply to an	693
assessment under this division, but the commissioner or	694
superintendent shall make the assessment within one year after the	695
date the authority certifies to the commissioner or superintendent	696
the amount to be refunded.	697

(K) The director of development services, after consultation	698
with the tax commissioner and the superintendent of insurance and	699
in accordance with Chapter 119. of the Revised Code, shall adopt	700
rules necessary to implement this section. The rules may provide	701
for recipients of tax credits under this section to be charged	702
fees to cover administrative costs of the tax credit program. The	703
fees collected shall be credited to the business assistance fund	704
created in section 122.174 of the Revised Code. At the time the	705
director gives public notice under division (A) of section 119.03	706
of the Revised Code of the adoption of the rules, the director	707
shall submit copies of the proposed rules to the chairpersons of	708
the standing committees on economic development in the senate and	709
the house of representatives.	710

(L) On or before the first day of August of each year, the	711
director of development services shall submit a report to the	712
governor, the president of the senate, and the speaker of the	713
house of representatives on the tax credit program under this	714
section. The report shall include information on the number of	715
agreements that were entered into under this section during the	716
preceding calendar year, a description of the project that is the	717
subject of each such agreement, and an update on the status of	718
projects under agreements entered into before the preceding	719
calendar year.	720

(M)(1) The aggregate amount of tax credits issued under	721
division (B)(1) of this section during any calendar year for	722
capital investment projects reviewed and approved by the tax	723
credit authority may not exceed the following amounts:	724

(a) For 2010, thirteen million dollars;

725

(b) For 2011 through 2023, the amount of the limit for the	726
preceding calendar year plus thirteen million dollars;	727

(c) For 2024 and each year thereafter, one hundred	728
ninety-five million dollars.	729

(2) The aggregate amount of tax credits authorized under	730
divisions (B)(2) and (3) of this section and allowed to be claimed	731
by taxpayers in any calendar year for capital improvement projects	732
reviewed and approved by the tax credit authority in 2011, 2012,	733
and 2013 combined shall not exceed twenty-five million dollars. An	734
amount equal to the aggregate amount of credits first authorized	735
in calendar year 2011, 2012, and 2013 may be claimed over the	736
ensuing period up to fifteen years, subject to the terms of	737
individual tax credit agreements.	738

The limitations in division (M) of this section do not apply	739
to credits for capital investment projects approved by the tax	740
credit authority before July 1, 2009.	741

(N) This division applies only to an eligible business that	742
is part of an affiliated group that includes a diversified savings	743
and loan holding company or a grandfathered unitary savings and	744
loan holding company, as those terms are defined in section	745
5726.01 of the Revised Code. Notwithstanding any contrary	746
provision of the agreement between such an eligible business and	747
the tax credit authority, any credit granted under this section	748
against the tax imposed by section 5725.18, 5729.03, 5733.06,	749
5747.02, or 5751.02 of the Revised Code to the eligible business,	750
at the election of the eligible business and without any action by	751
the tax credit authority, may be shared with any member or members	752
of the affiliated group that includes the eligible business, which	753
member or members may claim the credit against the taxes imposed	754
by section 5725.18, 5726.02, 5729.03, 5733.06, 5747.02, or 5751.02	755
of the Revised Code. Credits shall be claimed by the eligible	756
business in sequential order, as applicable, first claiming the	757
credits to the fullest extent possible against the tax that the	758
certificate holder is subject to, then against the tax imposed by,	759
sequentially, section 5729.03, 5725.18, 5747.02, 5751.02, and	760
lastly 5726.02 of the Revised Code. The credits may be allocated	761
among the members of the affiliated group in such manner as the	762
eligible business elects, but subject to the sequential order	763
required under this division. This division applies to credits	764
granted before, on, or after March 27, 2013, the effective date of	765
H.B. 510 of the 129th general assembly. Credits granted before	766
that effective date that are shared and allocated under this	767
division may be claimed in those calendar years in which the	768
remaining taxable years specified in the agreement end.	769

As used in this division, "affiliated group" means a group of	770
two or more persons with fifty per cent or greater of the value of	771
each person's ownership interests owned or controlled directly,	772
indirectly, or constructively through related interests by common	773
owners during all or any portion of the taxable year, and the	774
common owners. "Affiliated group" includes, but is not limited to,	775
any person eligible to be included in a consolidated elected	776
taxpayer group under section 5751.011 of the Revised Code or a	777
combined taxpayer group under section 5751.012 of the Revised	778
Code.	779

Sec. 122.86.  (A) As used in this section and section 5747.81	780
of the Revised Code:	781

(1) "Small business enterprise" means a corporation,	782
pass-through entity, or other person satisfying all of the	783
following:	784

(a) At the time of a qualifying investment, the enterprise	785
meets all of the following requirements:	786

(i) Has no outstanding tax or other liabilities owed to the	787
state;	788

(ii) Is in good standing with the secretary of state, if the	789
enterprise is required to be registered with the secretary;	790

(iii) Is current with any court-ordered payments;

791

(iv) Is not engaged in any illegal activity.

792

(b) At the time of a qualifying investment, the enterprise's	793
assets according to generally accepted accounting principles do	794
not exceed fifty million dollars, or its annual sales do not	795
exceed ten million dollars. When making this determination, the	796
assets and annual sales of all of the enterprise's related or	797
affiliated entities shall be included in the calculation.	798

(c) The enterprise employs at least fifty full-time	799
equivalent employees in this state for whom the enterprise is	800
required to withhold income tax under section 5747.06 of the	801
Revised Code, or more than one-half the enterprise's total number	802
of full-time equivalent employees employed anywhere in the United	803
States are employed in this state and are subject to that	804
withholding requirement.	805

(d) The enterprise, within six months after an eligible	806
investor's qualifying investment is made, invests in or incurs	807
cost for one or more of the following in an amount at least equal	808
to the amount of the qualifying investment:	809

(i) Tangible personal property, other than motor vehicles	810
operated on public roads and highways, used in business and	811
physically located in this state from the time of its acquisition	812
by the enterprise until the end of the investor's holding period;	813

(ii) Motor vehicles operated on public roads and highways if,	814
from the time of acquisition by the enterprise until the end of	815
the investor's holding period, the motor vehicles are purchased in	816
this state, registered in this state under Chapter 4503. of the	817
Revised Code, are used primarily for business purposes, and are	818
necessary for the operation of the enterprise's business;	819

(iii) Real property located in this state that is used in	820
business from the time of its acquisition by the enterprise until	821
the end of the holding period;	822

(iv) Intangible personal property, including patents,	823
copyrights, trademarks, service marks, or licenses used in	824
business primarily in this state from the time of its acquisition	825
by the enterprise until the end of the holding period;	826

(v) Compensation for new employees of the enterprise for whom	827
the enterprise is required to withhold income tax under section	828
5747.06 of the Revised Code, not including increased compensation	829
for owners, officers, or managers of the enterprise. For this	830
purpose compensation for new employees includes compensation for	831
newly hired or retained employees.	832

(2) "Qualifying investment" means an investment of money made	833
on or after July 1, 2011, to acquire capital stock or other equity	834
interest in a small business enterprise. "Qualifying investment"	835
does not include either of the following:	836

(a) Any investment of money an eligible investor derives,	837
directly or indirectly, from a grant or loan from the federal	838
government or the state or a political subdivision, including the	839
third frontier program under Chapter 184. of the Revised Code;	840

(b) Any investment of money which is the basis of a tax	841
credit granted under any other section of the Revised Code.	842

(3) "Eligible investor" means an individual, estate, or trust	843
subject to the tax imposed by section 5747.02 of the Revised Code,	844
or a pass-through entity in which such an individual, estate, or	845
trust holds a direct or indirect ownership or other equity	846
interest. To qualify as an eligible investor, the individual,	847
estate, trust, or pass-through entity shall not owe any	848
outstanding tax or other liability to the state at the time of a	849
qualifying investment.	850

(4) "Holding period" means:

851

(a) For qualifying investments made on or after July 1, 2011,	852
but before July 1, 2013, the two-year period beginning on the day	853
the investment was made;	854

(b) For qualifying investments made on or after July 1, 2013,	855
the five-year period beginning on the day the investment wasa	856
qualifying investment is made.	857

(5) "Pass-through entity" has the same meaning as in section	858
5733.04 of the Revised Code.	859

(B) Any eligible investor that makes a qualifying investment	860
in a small business enterprise on or after July 1, 2011, may apply	861
to the director of development services to obtain a small business	862
investment certificate from the director. Alternatively, a small	863
business enterprise may apply on behalf of eligible investors to	864
obtain the certificates for those investors. The director, in	865
consultation with the tax commissioner, shall prescribe the form	866
or manner in which an applicant shall apply for the certificate,	867
devise the form of the certificate, and prescribe any records or	868
other information an applicant shall furnish with the application	869
to evidence the qualifying investment. The applicant shall state	870
the amount of the intended investment. The applicant shall pay an	871
application fee equal to the greater of one-tenth of one per cent	872
of the amount of the intended investment or one hundred dollars.	873

A small business investment certificate entitles the	874
certificate holder to receive a tax credit under section 5747.81	875
of the Revised Code if the certificate holder qualifies for the	876
credit as otherwise provided in this section. If the certificate	877
holder is a pass-through entity, the certificate entitles the	878
entity's equity owners to receive their distributive or	879
proportionate shares of the credit. In any fiscal biennium, an	880
eligible investor may not apply for small business investment	881
certificates representing intended investment amounts in excess of	882
ten million dollars. Such certificates are not transferable.	883

The director of development services may reserve small	884
business investment certificates to qualifying applicants in the	885
order in which the director receives applications, but may issue	886
the certificates as the applications are completed. An application	887
is completed when the director has validated that an eligible	888
investor has made a qualified investment and the small business	889
enterprise has made the appropriate reinvestment of the qualified	890
investment pursuant to the requirements of division (A)(1)(d) of	891
this section. To qualify for a certificate, an eligible investor	892
must satisfy both of the following, subject to the limitation on	893
the amount of qualifying investments for which certificates may be	894
issued under division (C) of this section:	895

(1) The eligible investor makes a qualifying investment on or	896
after July 1, 2011.	897

(2) The eligible investor pledges not to sell or otherwise	898
dispose of the qualifying investment before the conclusion of the	899
applicable holding period.	900

(C)(1) The amount of any eligible investor's qualifying	901
investments for which small business investment certificates may	902
be issued for a fiscal biennium shall not exceed ten million	903
dollars.	904

(2) The director of development services shall not issue a	905
small business investment certificate to an eligible investor	906
representing an amount of qualifying investment in excess of the	907
amount of the intended investment indicated on the investor's	908
application for the certificate.	909

(3) The director of development services shall not issue	910
small business investment certificates in a total amount that	911
would cause the tax credits claimed in any fiscal biennium to	912
exceed one hundred million dollars.	913

(4) The director of development services may issue a small	914
business investment certificate only if both of the following	915
apply at the time of issuance:	916

(a) The small business enterprise meets all the requirements	917
listed in divisions (A)(1)(a)(i) to (iv) of this section;	918

(b) The eligible investor does not owe any outstanding tax or	919
other liability to the state.	920

(D) Before the end of the applicable holding period of a	921
qualifying investment, each enterprise in which a qualifying	922
investment was made for which a small business investment	923
certificate has been issued, upon the request of the director of	924
development services, shall provide to the director records or	925
other evidence satisfactory to the director that the enterprise is	926
a small business enterprise for the purposes of this section. Each	927
enterprise shall also provide annually to the director records or	928
evidence regarding the number of jobs created or retained in the	929
state. No credit may be claimed under this section and section	930
5747.81 of the Revised Code if the director finds that an	931
enterprise is not a small business enterprise for the purposes of	932
this section. The director shall compile and maintain a register	933
of small business enterprises qualifying under this section and	934
shall certify the register to the tax commissioner. The director	935
shall also compile and maintain a record of the number of jobs	936
created or retained as a result of qualifying investments made	937
pursuant to this section.	938

(E) After the conclusion of the applicable holding period for	939
a qualifying investment, a person to whom a small business	940
investment certificate has been issued under this section may	941
claim a credit as provided under section 5747.81 of the Revised	942
Code.	943

(F) The director of development services, in consultation	944
with the tax commissioner, may adopt rules for the administration	945
of this section, including rules governing the following:	946

(1) Documents, records, or other information eligible	947
investors shall provide to the director;	948

(2) Any information a small business enterprise shall provide	949
for the purposes of this section and section 5747.81 of the	950
Revised Code;	951

(3) Determination of the number of full-time equivalent	952
employees of a small business enterprise;	953

(4) Verification of a small business enterprise's investment	954
in tangible personal property and intangible personal property	955
under division (A)(1)(d) of this section, including when such	956
investments have been made and where the property is used in	957
business;	958

(5) Circumstances under which small business enterprises or	959
eligible investors may be subverting the purposes of this section	960
and section 5747.81 of the Revised Code.	961

There is hereby created in the state treasury the InvestOhio	962
support fund. The fund shall consist of the fees paid under	963
division (B) of this section and shall be used by the development	964
services agency to pay the costs of administering the small	965
business investment certificate program established under this	966
section.	967

Sec. 166.21. (A) The director of development services, with	968
the approval of the controlling board and subject to other	969
applicable provisions of this chapter, may lend moneys in the	970
research and development loan fund to persons for the purpose of	971
paying allowable costs of eligible research and development	972
projects, if the director determines that all of the following	973
conditions are met:	974

(1) The project is an eligible research and development	975
project and is economically sound;	976

(2) The amount to be lent from the research and development	977
loan fund will not exceed seventy-five per cent of the total costs	978
of the eligible research and development project;	979

(3) The repayment of the loan from the research and	980
development loan fund will be secured by a mortgage, assignment,	981
pledge, lien provided for under section 9.661 of the Revised Code,	982
or other interest in property or other assets of the borrower, at	983
such level of priority and value as the director considers	984
necessary, provided that, in making such a determination, the	985
director shall take into account the value of any rights granted	986
by the borrower to the director to control the use of any assets	987
of the borrower under the circumstances described in the loan	988
documents.	989

(B) The determinations of the director under division (A) of	990
this section shall be conclusive for purposes of the validity of a	991
loan commitment evidenced by a loan agreement signed by the	992
director.	993

(C) Fees, charges, rates of interest, times of payment of	994
interest and principal, and other terms and conditions of, and	995
security for, loans made from the research and development loan	996
fund shall be such as the director determines to be appropriate	997
and in furtherance of the purpose for which the loans are made.	998
The moneys used in making loans shall be disbursed from the fund	999
upon order of the director. Unless otherwise specified in any	1000
indenture or other instrument securing obligations under division	1001
(D) of section 166.08 of the Revised Code, any payments of	1002
principal and interest from loans made from the fund shall be paid	1003
to the fund and used for the purpose of making loans under this	1004
section.	1005

(D)(1) As used in this division, "qualified research and	1006
development loan payments" means payments of principal and	1007
interest on a loan made from the research and development loan	1008
fund.	1009

(2) Each year, the director may, upon request, issue a	1010
certificate to a borrower of moneys from the research and	1011
development loan fund indicating the amount of the qualified	1012
research and development loan payments made by or on behalf of the	1013
borrower during the calendar year immediately preceding the tax	1014
year, as defined in section 5733.04 of the Revised Code, or	1015
taxable year, as defined in section 5747.01 of the Revised Code,	1016
for which the certificate is issued. In addition to indicating the	1017
amount of qualified research and development loan payments, the	1018
certificate shall include a determination of the director that as	1019
of the thirty-first day of December of the calendar year for which	1020
the certificate is issued, the borrower is not in default under	1021
the loan agreement, lease, or other instrument governing repayment	1022
of the loan, including compliance with the job creation and	1023
retention commitments that are part of the qualified research and	1024
development project. If the director determines that a borrower is	1025
in default under the loan agreement, lease, or other instrument	1026
governing repayment of the loan, the director may reduce the	1027
amount, percentage, or term of the credit allowed under section	1028
5733.352, 5747.331, or 5751.52 of the Revised Code with respect to	1029
the certificate issued to the borrower. The director shall not	1030
issue a certificate in an amount that exceeds one hundred fifty	1031
thousand dollars.	1032

(E) The director may take actions necessary or appropriate to	1033
collect or otherwise deal with any loan made under this section.	1034

(F) The director may fix service charges for the making of a	1035
loan. The charges shall be payable at such times and place and in	1036
such amounts and manner as may be prescribed by the director.	1037

(G)(1) There shall be credited to the research and	1038
development loan fund moneys received by this state from the	1039
repayment of loans, including interest thereon, made from the	1040
fund, and moneys received from the sale, lease, or other	1041
disposition of property acquired or constructed with moneys in the	1042
fund derived from the proceeds of the sale of obligations under	1043
section 166.08 of the Revised Code. Moneys in the fund shall be	1044
applied as provided in this chapter pursuant to appropriations	1045
made by the general assembly.	1046

(2) In addition to the requirements in division (G)(1) of	1047
this section, moneys referred to in that division may be deposited	1048
to the credit of separate accounts established by the director of	1049
development services within the research and development loan fund	1050
or in the bond service fund and pledged to the security of	1051
obligations, applied to the payment of bond service charges	1052
without need for appropriation, released from any such pledge and	1053
transferred to the research and development loan fund, all as and	1054
to the extent provided in the bond proceedings pursuant to written	1055
directions of the director of development. Accounts may be	1056
established by the director in the research and development loan	1057
fund for particular projects or otherwise. The director may	1058
withdraw from the fund or, subject to provisions of the applicable	1059
bond proceedings, from any special funds established pursuant to	1060
the bond proceedings, or from any accounts in such funds, any	1061
amounts of investment income required to be rebated and paid to	1062
the federal government in order to maintain the exemption from	1063
federal income taxation of interest on obligations issued under	1064
this chapter, which withdrawal and payment may be made without the	1065
necessity for appropriation.	1066

Sec. 718.15.  A municipal corporation, by ordinance, may	1067
grant a refundable or nonrefundable credit against its tax on	1068
income to a taxpayer that also receives a tax credit under section	1069
122.17 of the Revised Codeto foster job creation in the municipal	1070
corporation. If a credit is granted under this section, it shall	1071
be measured as a percentage of the new income tax revenue the	1072
municipal corporation derives from new employees of the taxpayer	1073
and shall be for a term not exceeding fifteen years. Before the	1074
municipal corporation passes an ordinance granting a credit, the	1075
municipal corporation and the taxpayer shall enter into an	1076
agreement specifying all the conditions of the credit.	1077

Sec. 718.151. A municipal corporation, by ordinance, may	1078
grant a refundable or nonrefundable credit against its tax on	1079
income to a taxpayer that receives a nonrefundable tax credit	1080
under section 122.171 of the Revised Code and may grant a	1081
refundable credit against its tax on income to a taxpayer that	1082
receives a refundable tax credit under that sectionfor the	1083
purpose of fostering job retention in the municipal corporation.	1084
If a credit is granted under this section, it shall be measured as	1085
a percentage of the income tax revenue the municipal corporation	1086
derives from the retained employees of the taxpayer, and shall be	1087
for a term not exceeding fifteen years. Before a municipal	1088
corporation passes an ordinance allowing such a credit, the	1089
municipal corporation and the taxpayer shall enter into an	1090
agreement specifying all the conditions of the credit.	1091

Sec. 3734.905.  (A) The treasurer of state shall refund the	1092
fee imposed by section 3734.901 of the Revised Code paid illegally	1093
or erroneously, or paid on an illegal or erroneous assessment.	1094
Applications for refund shall be filed with the tax commissioner	1095
on a form prescribed by the commissioner, within four years of the	1096
illegal or erroneous payment of the fee.	1097

On the filing of the application, the commissioner shall	1098
determine the amount of refund to which the applicant is entitled.	1099
If the amount is not less than that claimed, the commissioner	1100
shall certify the amount to the director of budget and management	1101
and treasurer of state for payment from the tax refund fund	1102
created by section 5703.052 of the Revised Code. If the amount is	1103
less than that claimed, the commissioner shall proceed in	1104
accordance with section 5703.70 of the Revised Code.	1105

If the application for refund is for fees paid on an illegal	1106
or erroneous assessment, theThe certified amount shall include	1107
interest calculated at the rate per annum prescribed by section	1108
5703.47 of the Revised Code from the date of overpayment to the	1109
date of the commissioner's certification.	1110

(B) When the fee imposed pursuant to section 3734.901 of the	1111
Revised Code has been paid on tires that are sold by a retail	1112
dealer or wholesale distributor to a motor vehicle manufacturer,	1113
or to a wholesale distributor or retail dealer for the purpose of	1114
resale outside this state, the seller in this state is entitled to	1115
a refund of the amount of the fee actually paid on the tires. To	1116
obtain a refund under this division, the seller shall apply to the	1117
tax commissioner, shall furnish documentary evidence satisfactory	1118
to the commissioner that the price paid by the purchaser did not	1119
include the fee, and shall provide the name and address of the	1120
purchaser to the commissioner. The seller shall apply on the form	1121
prescribed by the commissioner, within four years after the date	1122
of the sale. Upon receipt of an application, the commissioner	1123
shall determine the amount of any refund due and shall certify	1124
that amount to the director of budget and management and the	1125
treasurer of state for payment from the tax refund fund created in	1126
section 5703.052 of the Revised Code. The certified amount shall	1127
include interest calculated at the rate per annum prescribed by	1128
section 5703.47 of the Revised Code from the date of overpayment	1129
to the date of the commissioner's certification.	1130

(C) If any person entitled to a refund of fees under this	1131
section, or section 5703.70 of the Revised Code, is indebted to	1132
the state for any tax administered by the tax commissioner, or any	1133
charge, penalties, or interest arising from such tax, the amount	1134
allowable on the application for refund first shall be applied in	1135
satisfaction of the debt.	1136

Sec. 4921.13. (A) The public utilities commission shall adopt	1137
rules applicable to the filing of annual update forms and the	1138
payment of taxes by for-hire motor carriers. The rules shall not	1139
be incompatible with the requirements of the United States	1140
department of transportation. The rules shall at a minimum address	1141
all of the following:	1142

(1) The information and certifications that must be provided	1143
to the commission on an annual update form, including a	1144
certification that the carrier continues to be in compliance with	1145
the applicable laws of this state.	1146

(2) Documentation and information that must be provided	1147
regarding proof of financial responsibility;	1148

(3) The form and manner in which taxes may be paid under	1149
section 4921.19 of the Revised Code.	1150

(B) The rules may address any other information that the	1151
commission determines is necessary to carry out this section.	1152

(C) A for-hire motor carrier shall not be issued aany tax	1153
receipt under division (C) of section 4921.19 of the Revised Code	1154
until all of the following have been satisfied:	1155

(1) A complete and accurate annual update form has been filed	1156
with the commission;	1157

(2) Proof of financial responsibility remains in effect;

1158

(3) All applicable registration fees in accordance with rules	1159
adopted under section 4921.11 of the Revised Code, all applicable	1160
taxes under section 4921.19 of the Revised Code, and any	1161
forfeitures imposed under section 4923.99 of the Revised Code have	1162
been paid in full.	1163

Sec. 4921.19.  (A) Every for-hire motor carrier operating in	1164
this state shall, at the time of the issuance of a certificate of	1165
public convenience and necessity under section 4921.03 of the	1166
Revised Code, pay to the public utilities commission, for and on	1167
behalf of the treasurer of state, the following taxes:	1168

(1) For each motor vehicle used for transporting persons,	1169
thirty dollars;	1170

(2) For each commercial tractor, as defined in section	1171
4501.01 of the Revised Code, used for transporting property,	1172
thirty dollars;	1173

(3) For each other motor vehicle transporting property,	1174
twenty dollars.	1175

(B) Every for-hire motor carrier operating in this state	1176
solely in intrastate commerce shall, annually between the first	1177
day of May and the thirtieth day of June, pay to the commission,	1178
for and on behalf of the treasurer of state, the following taxes:	1179

(1) For each motor vehicle used for transporting persons,	1180
thirty dollars;	1181

(2) For each commercial tractor, as defined in section	1182
4501.01 of the Revised Code, used for transporting property,	1183
thirty dollars;	1184

(3) For each other motor vehicle transporting property,	1185
twenty dollars.	1186

(C) After a for-hire motor carrier has paid the applicable	1187
taxes under division (A) or (B) of this section and met all	1188
applicable requirements under section 4921.03 or division (C) of	1189
section 4921.13 of the Revised Code have been met, the commission	1190
shall issue the carrier a tax receipt for each motor vehicle for	1191
which a tax has been paid under this section. The carrier shall	1192
carry a copy ofkeep the appropriate tax receipt in each motor	1193
vehicle operated by the carrier. The carrier shall maintain the	1194
original copy of the tax receipt at the carrier's primary place of	1195
businesstax receipt records that specify to which motor vehicle	1196
each tax receipt is assigned.	1197

(D) A trailer used by a for-hire motor carrier shall not be	1198
taxed under this section.	1199

(E) The annual tax levied by division (B) of this section	1200
does not apply in those cases where the commission finds that the	1201
movement of agricultural commodities or foodstuffs produced	1202
therefrom requires a temporary and seasonal use of vehicular	1203
equipment for a period of not more than ninety days. In such	1204
event, the tax on the vehicular equipment shall be twenty-five per	1205
cent of the annual tax levied by division (B) of this section. If	1206
any vehicular equipment is used in excess of the ninety-day	1207
period, the annual tax levied by this section shall be paid.	1208

(F) All taxes levied by division (B) of this section shall be	1209
reckoned as from the beginning of the quarter in which the tax	1210
receipt is issued or as from when the use of equipment under any	1211
existing tax receipt began.	1212

(G) The fees for unified carrier registration pursuant to	1213
section 4921.11 of the Revised Code shall be identical to those	1214
established by the unified carrier registration act board as	1215
approved by the federal motor carrier safety administration for	1216
each year.	1217

(H)(1) The fees for uniform registration and a uniform permit	1218
as a carrier of hazardous materials pursuant to section 4921.15 of	1219
the Revised Code shall consist of the following:	1220

(a) A processing fee of fifty dollars;

1221

(b) An apportioned per-truck registration fee, which shall be	1222
calculated by multiplying the percentage of a registrant's	1223
activity in this state times the percentage of the registrant's	1224
business that is hazardous-materials-related, times the number of	1225
vehicles owned or operated by the registrant, times a per-truck	1226
fee determined by order of the commission following public notice	1227
and an opportunity for comment.	1228

(i) The percentage of a registrant's activity in this state	1229
shall be calculated by dividing the number of miles that the	1230
registrant travels in this state under the international	1231
registration plan, pursuant to section 4503.61 of the Revised	1232
Code, by the number of miles that the registrant travels	1233
nationwide under the international registration plan. Registrants	1234
that operate solely within this state shall use one hundred per	1235
cent as their percentage of activity. Registrants that do not	1236
register their vehicles through the international registration	1237
plan shall calculate activity in the state in the same manner as	1238
that required by the international registration plan.	1239

(ii) The percentage of a registrant's business that is	1240
hazardous-materials-related shall be calculated, for	1241
less-than-truckload shipments, by dividing the weight of all the	1242
registrant's hazardous materials shipments by the total weight of	1243
all shipments in the previous year. The percentage of a	1244
registrant's business that is hazardous-materials-related shall be	1245
calculated, for truckload shipments, by dividing the number of	1246
shipments for which placarding, marking of the vehicle, or	1247
manifesting, as appropriate, was required by regulations adopted	1248
under sections 4 to 6 of the "Hazardous Materials Transportation	1249
Uniform Safety Act of 1990," 104 Stat. 3244, 49 U.S.C. App. 1804,	1250
by the total number of the registrant's shipments that transported	1251
any kind of goods in the previous year. A registrant that	1252
transports both less-than-truckload and truckload shipments of	1253
hazardous materials shall calculate the percentage of business	1254
that is hazardous-materials-related on a proportional basis.	1255

(iii) A registrant may utilize fiscal year, or calendar year,	1256
or other current company accounting data, or other publicly	1257
available information, in calculating the percentages required by	1258
divisions (H)(1)(b)(i) and (ii) of this section.	1259

(2) The commission, after notice and opportunity for a	1260
hearing, may assess each carrier a fee for any background	1261
investigation required for the issuance, for the purpose of	1262
section 3734.15 of the Revised Code, of a uniform permit as a	1263
carrier of hazardous wastes and fees related to investigations and	1264
proceedings for the denial, suspension, or revocation of a uniform	1265
permit as a carrier of hazardous materials. The fees shall not	1266
exceed the reasonable costs of the investigations and proceedings.	1267
The fee for a background investigation for a uniform permit as a	1268
carrier of hazardous wastes shall be six hundred dollars plus the	1269
costs of obtaining any necessary information not included in the	1270
permit application, to be calculated at the rate of thirty dollars	1271
per hour, not exceeding six hundred dollars, plus any fees payable	1272
to obtain necessary information.	1273

(I) The application fee for a certificate for the	1274
transportation of household goods issued pursuant to sections	1275
4921.30 to 4921.38 of the Revised Code shall be based on the	1276
certificate holder's gross revenue, in the prior year, for the	1277
intrastate transportation of household goods. The commission shall	1278
establish, by order, ranges of gross revenue and the fee for each	1279
range. The fees shall be set in amounts sufficient to carry out	1280
the purposes of sections 4921.30 to 4921.38 and 4923.99 of the	1281
Revised Code and, to the extent necessary, the commission shall	1282
make changes to the fee structure to ensure that neither over nor	1283
under collection of the fees occurs. The fees shall also take into	1284
consideration the revenue generated from the assessment of	1285
forfeitures under section 4923.99 of the Revised Code regarding	1286
the consumer protection provisions applicable to for-hire motor	1287
carriers engaged in the transportation of household goods.	1288

(J) The fees and taxes provided under this section shall be	1289
in addition to taxes, fees, and charges fixed and exacted by other	1290
sections of the Revised Code, except the assessments required by	1291
section 4905.10 of the Revised Code, but all fees, license fees,	1292
annual payments, license taxes, or taxes or other money exactions,	1293
except the general property tax, assessed, charged, fixed, or	1294
exacted by local authorities such as municipal corporations,	1295
townships, counties, or other local boards, or the officers of	1296
such subdivisions are illegal and, are superseded by sections	1297
4503.04 and 4905.03 and Chapter 4921. of the Revised Code. On	1298
compliance with sections 4503.04 and 4905.03 and Chapter 4921. of	1299
the Revised Code, all local ordinances, resolutions, by laws	1300
bylaws, and rules in force shall cease to be operative as to the	1301
persons in compliance, except that such local subdivisions may	1302
make reasonable local police regulations within their respective	1303
boundaries not inconsistent with sections 4503.04 and 4905.03 and	1304
Chapter 4921. of the Revised Code.	1305

Sec. 5703.056.  (A) As used in any section of the Revised	1306
Code that requires the tax commissioner to use certified mail or	1307
personal service or that requires or permits a payment to be made	1308
or a document to be submitted to the tax commissioner or the board	1309
of tax appeals by mail or personal service, and as used in any	1310
section of Chapter 3734., 3769., 4303., or 4305. or Title LVII of	1311
the Revised Code that requires or permits a payment to be made or	1312
a document to be submitted to the treasurer of state by mail:	1313

(1) "Certified mail," "express mail," "United States mail,"	1314
"United States postal service," and similar terms include any	1315
delivery service authorized pursuant to division (B) of this	1316
section.	1317

(2) "Postmark date," "date of postmark," and similar terms	1318
include the date recorded and marked in the manner described in	1319
division (B)(3) of this section.	1320

(B) The tax commissioner may authorize the use of a delivery	1321
service for the delivery of any payment or document described in	1322
division (A) of this section if the commissioner finds that the	1323
delivery service:	1324

(1) Is available to the general public;

1325

(2) Is at least as timely and reliable on a regular basis as	1326
the United States postal service;	1327

(3) Records electronically to a database kept in the regular	1328
course of its business, and marks on the cover in which the	1329
payment or document is enclosed, the date on which the payment or	1330
document was given to the delivery service for delivery;	1331

(4) Records electronically to a database kept in the regular	1332
course of its business the date on which the payment or document	1333
was given by the delivery service to the person who signed the	1334
receipt of delivery and the name of the person who signed the	1335
receipt; and	1336

(5) Meets any other criteria that the tax commissioner may by	1337
rule prescribe.	1338

(C) In any section of the Revised Code referring to the date	1339
any payment or document is received by the tax commissioner by	1340
mail, personal service, or electronically or by a person receiving	1341
a document or payment from the tax commissioner by mail, the	1342
payment or document shall be considered to be received on one of	1343
the following dates, as applicable, except as provided in section	1344
5703.053 or 5703.37 of the Revised Code:	1345

(1) For a document or payment sent by certified mail, express	1346
mail, United States mail, foreign mail, or a delivery service	1347
authorized for use under division (B) of this section, the date of	1348
the postmark placed by the postal or delivery service on the	1349
sender's receipt or, if the sender was not issued a postmarked	1350
sender's receipt, the date of the postmark placed by the postal or	1351
delivery service on the package containing the payment or	1352
document.	1353

(2) For personal service to the tax commissioner, the date	1354
the payment or document is received in any of the tax	1355
commissioner's offices during business hours.	1356

(3) For a document filed or sent electronically or a payment	1357
made electronically, the date on the timestamp assigned by the	1358
first electronic system receiving that payment or document.	1359

(D) As used in divisions (A) and (C) of this section	1360
"electronically" includes by facsimile, if applicable.	1361

Sec. 5703.059. (A) The tax commissioner may adopt rules	1362
requiring returns, including any accompanying schedule or	1363
statement, for any of the following taxestax or fee administered	1364
by the commissioner to be filed electronically using the Ohio	1365
business gateway as defined in section 718.051 of the Revised	1366
Code, filed telephonically using the system known as the Ohio	1367
telefile system, or filed by any other electronic means prescribed	1368
by the commissioner:	1369

(1) Employer income tax withholding under Chapter 5747. of	1370
the Revised Code;	1371

(2) Motor fuel tax under Chapter 5735. of the Revised Code;

1372

(3) Cigarette and tobacco product tax under Chapter 5743. of	1373
the Revised Code;	1374

(4) Severance tax under Chapter 5749. of the Revised Code;

1375

(5) Use tax under Chapter 5741. of the Revised Code;

1376

(6) Commercial activity tax under Chapter 5751. of the	1377
Revised Code;	1378

(7) Financial institutions tax under Chapter 5726. of the	1379
Revised Code;	1380

(8) Motor fuel receipts tax under Chapter 5736. of the	1381
Revised Code;	1382

(9) Horse-racing taxes under Chapter 3769. of the Revised	1383
Code.	1384

(B) The tax commissioner may adopt rules requiring any	1385
payment of tax shown on such a return to be due to be made	1386
electronically in a manner approved by the commissioner.	1387

(C) A rule adopted under this section does not apply to	1388
returns or reports filed or payments made before six months after	1389
the effective date of the rule. The commissioner shall publicize	1390
any new electronic filing requirement on the department's web	1391
site. The commissioner shall educate the public of the requirement	1392
through seminars, workshops, conferences, or other outreach	1393
activities.	1394

(D) Any person required to file returns and make payments	1395
electronically under rules adopted under this section may apply to	1396
the commissioner, on a form prescribed by the commissioner, to be	1397
excused from that requirement. For good cause shown, the	1398
commissioner may excuse the applicant from the requirement and	1399
permit the applicant to file the returns or reports or make the	1400
payments required under this section by nonelectronic means.	1401

Sec. 5703.21.  (A) Except as provided in divisions (B) and	1402
(C) of this section, no agent of the department of taxation,	1403
except in the agent's report to the department or when called on	1404
to testify in any court or proceeding, shall divulge any	1405
information acquired by the agent as to the transactions,	1406
property, or business of any person while acting or claiming to	1407
act under orders of the department. Whoever violates this	1408
provision shall thereafter be disqualified from acting as an	1409
officer or employee or in any other capacity under appointment or	1410
employment of the department.	1411

(B)(1) For purposes of an audit pursuant to section 117.15 of	1412
the Revised Code, or an audit of the department pursuant to	1413
Chapter 117. of the Revised Code, or an audit, pursuant to that	1414
chapter, the objective of which is to express an opinion on a	1415
financial report or statement prepared or issued pursuant to	1416
division (A)(7) or (9) of section 126.21 of the Revised Code, the	1417
officers and employees of the auditor of state charged with	1418
conducting the audit shall have access to and the right to examine	1419
any state tax returns and state tax return information in the	1420
possession of the department to the extent that the access and	1421
examination are necessary for purposes of the audit. Any	1422
information acquired as the result of that access and examination	1423
shall not be divulged for any purpose other than as required for	1424
the audit or unless the officers and employees are required to	1425
testify in a court or proceeding under compulsion of legal	1426
process. Whoever violates this provision shall thereafter be	1427
disqualified from acting as an officer or employee or in any other	1428
capacity under appointment or employment of the auditor of state.	1429

(2) For purposes of an internal audit pursuant to section	1430
126.45 of the Revised Code, the officers and employees of the	1431
office of internal audit in the office of budget and management	1432
charged with directing the internal audit shall have access to and	1433
the right to examine any state tax returns and state tax return	1434
information in the possession of the department to the extent that	1435
the access and examination are necessary for purposes of the	1436
internal audit. Any information acquired as the result of that	1437
access and examination shall not be divulged for any purpose other	1438
than as required for the internal audit or unless the officers and	1439
employees are required to testify in a court or proceeding under	1440
compulsion of legal process. Whoever violates this provision shall	1441
thereafter be disqualified from acting as an officer or employee	1442
or in any other capacity under appointment or employment of the	1443
office of internal audit.	1444

(3) As provided by section 6103(d)(2) of the Internal Revenue	1445
Code, any federal tax returns or federal tax information that the	1446
department has acquired from the internal revenue service, through	1447
federal and state statutory authority, may be disclosed to the	1448
auditor of state or the office of internal audit solely for	1449
purposes of an audit of the department.	1450

(4) For purposes of Chapter 3739. of the Revised Code, an	1451
agent of the department of taxation may share information with the	1452
division of state fire marshal that the agent finds during the	1453
course of an investigation.	1454

(C) Division (A) of this section does not prohibit any of the	1455
following:	1456

(1) Divulging information contained in applications,	1457
complaints, and related documents filed with the department under	1458
section 5715.27 of the Revised Code or in applications filed with	1459
the department under section 5715.39 of the Revised Code;	1460

(2) Providing information to the office of child support	1461
within the department of job and family services pursuant to	1462
section 3125.43 of the Revised Code;	1463

(3) Disclosing to the motor vehicle repair board any	1464
information in the possession of the department that is necessary	1465
for the board to verify the existence of an applicant's valid	1466
vendor's license and current state tax identification number under	1467
section 4775.07 of the Revised Code;	1468

(4) Providing information to the administrator of workers'	1469
compensation pursuant to sections 4123.271 and 4123.591 of the	1470
Revised Code;	1471

(5) Providing to the attorney general information the	1472
department obtains under division (J) of section 1346.01 of the	1473
Revised Code;	1474

(6) Permitting properly authorized officers, employees, or	1475
agents of a municipal corporation from inspecting reports or	1476
information pursuant to rules adopted under section 5745.16 of the	1477
Revised Code;	1478

(7) Providing information regarding the name, account number,	1479
or business address of a holder of a vendor's license issued	1480
pursuant to section 5739.17 of the Revised Code, a holder of a	1481
direct payment permit issued pursuant to section 5739.031 of the	1482
Revised Code, or a seller having a use tax account maintained	1483
pursuant to section 5741.17 of the Revised Code, or information	1484
regarding the active or inactive status of a vendor's license,	1485
direct payment permit, or seller's use tax account;	1486

(8) Releasing invoices or invoice information furnished under	1487
section 4301.433 of the Revised Code pursuant to that section;	1488

(9) Providing to a county auditor notices or documents	1489
concerning or affecting the taxable value of property in the	1490
county auditor's county. Unless authorized by law to disclose	1491
documents so provided, the county auditor shall not disclose such	1492
documents;	1493

(10) Providing to a county auditor sales or use tax return or	1494
audit information under section 333.06 of the Revised Code;	1495

(11) Subject to section 4301.441 of the Revised Code,	1496
disclosing to the appropriate state agency information in the	1497
possession of the department of taxation that is necessary to	1498
verify a permit holder's gallonage or noncompliance with taxes	1499
levied under Chapter 4301. or 4305. of the Revised Code;	1500

(12) Disclosing to the department of natural resources	1501
information in the possession of the department of taxation that	1502
is necessary for the department of taxation to verify the	1503
taxpayer's compliance with section 5749.02 of the Revised Code or	1504
to allow the department of natural resources to enforce Chapter	1505
1509. of the Revised Code;	1506

(13) Disclosing to the department of job and family services,	1507
industrial commission, and bureau of workers' compensation	1508
information in the possession of the department of taxation solely	1509
for the purpose of identifying employers that misclassify	1510
employees as independent contractors or that fail to properly	1511
report and pay employer tax liabilities. The department of	1512
taxation shall disclose only such information that is necessary to	1513
verify employer compliance with law administered by those	1514
agencies.	1515

(14) Disclosing to the Ohio casino control commission	1516
information in the possession of the department of taxation that	1517
is necessary to verify a casino operator's compliance with section	1518
5747.063 or 5753.02 of the Revised Code and sections related	1519
thereto;	1520

(15) Disclosing to the state lottery commission information	1521
in the possession of the department of taxation that is necessary	1522
to verify a lottery sales agent's compliance with section 5747.064	1523
of the Revised Code.	1524

(16) Disclosing to the development services agency	1525
information in the possession of the department of taxation that	1526
is necessary to ensure compliance with the laws of this state	1527
governing taxation and to verify information reported to the	1528
development services agency for the purpose of evaluating	1529
potential tax credits, grants, or loans. Such information shall	1530
not include information received from the internal revenue service	1531
the disclosure of which is prohibited by section 6103 of the	1532
Internal Revenue Code. No officer, employee, or agent of the	1533
development services agency shall disclose any information	1534
provided to the development services agency by the department of	1535
taxation under division (C)(16) of this section except when	1536
disclosure of the information is necessary for, and made solely	1537
for the purpose of facilitating, the evaluation of potential tax	1538
credits, grants, or loans.	1539

Sec. 5727.47.  (A) Notice of each assessment certified	1540
pursuant to section 5727.23 or 5727.38 of the Revised Code shall	1541
be mailed to the public utility, and its mailing shall be	1542
prima-facie evidence of its receipt by the public utility to which	1543
it is addressed. With the notice, the tax commissioner shall	1544
provide instructions on how to petition for reassessment and	1545
request a hearing on the petition. If a public utility objects to	1546
any assessment certified to it pursuant to such sections, it may	1547
file with the commissioner, either personally or by certified	1548
mail, within sixty days after the mailing of the notice of	1549
assessment a written petition for reassessment signed by the	1550
utility's authorized agent having knowledge of the facts. IfThe	1551
date the commissioner receives the petition is filed by certified	1552
mail, the date of the United States postmark placed on the	1553
sender's receipt by the postal employee to whom the petition is	1554
presented shall be treated asshall be considered the date of	1555
filing. The petition shall indicate the utility's objections, but	1556
additional objections may be raised in writing if received by the	1557
commissioner prior to the date shown on the final determination.	1558

In the case of a petition seeking a reduction in taxable	1559
value filed with respect to an assessment issued under section	1560
5727.23 of the Revised Code, the petitioner shall state in the	1561
petition the total amount of reduction in taxable value sought by	1562
the petitioner. If the petitioner objects to the percentage of	1563
true value at which taxable property is assessed by the	1564
commissioner, the petitioner shall state in the petition the total	1565
amount of reduction in taxable value sought both with and without	1566
regard to the objection pertaining to the percentage of true value	1567
at which its taxable property is assessed. If a petitioner objects	1568
to the commissioner's apportionment of the taxable value of the	1569
petitioner's taxable property, the petitioner shall distinctly	1570
state in the petition that the petitioner objects to the	1571
commissioner's apportionment, and, within forty-five days after	1572
filing the petition for reassessment, shall submit the	1573
petitioner's proposed apportionment of the taxable value of its	1574
taxable property among taxing districts. If a petitioner that	1575
objects to the commissioner's apportionment fails to state its	1576
objections to that apportionment in its petition for reassessment	1577
or fails to submit its proposed apportionment within forty-five	1578
days after filing the petition for reassessment, the commissioner	1579
shall dismiss the petitioner's objection to the commissioner's	1580
apportionment, and the taxable value of the petitioner's taxable	1581
property, subject to any adjustment to taxable value pursuant to	1582
the petition or appeal, shall be apportioned in the manner used by	1583
the commissioner in the preliminary or amended preliminary	1584
assessment issued under section 5727.23 of the Revised Code.	1585

If an additional objection seeking a reduction in taxable	1586
value in excess of the reduction stated in the original petition	1587
is properly and timely raised with respect to an assessment issued	1588
under section 5727.23 of the Revised Code, the petitioner shall	1589
state the total amount of the reduction in taxable value sought in	1590
the additional objection both with and without regard to any	1591
reduction in taxable value pertaining to the percentage of true	1592
value at which taxable property is assessed. If a petitioner fails	1593
to state the reduction in taxable value sought in the original	1594
petition or in additional objections properly raised after the	1595
petition is filed, the commissioner shall notify the petitioner of	1596
the failure by certified mail. If the petitioner fails to notify	1597
the commissioner in writing of the reduction in taxable value	1598
sought in the petition or in an additional objection within thirty	1599
days after receiving the commissioner's notice, the commissioner	1600
shall dismiss the petition or the additional objection in which	1601
that reduction is sought.	1602

(B)(1) Subject to divisions (B)(2) and (3) of this section, a	1603
public utility filing a petition for reassessment regarding an	1604
assessment issued under section 5727.23 or 5727.38 of the Revised	1605
Code shall pay the tax with respect to the assessment objected to	1606
as required by law. The acceptance of any tax payment by the	1607
treasurer of state or any county treasurer shall not prejudice any	1608
claim for taxes on final determination by the commissioner or	1609
final decision by the board of tax appeals or any court.	1610

(2) If a public utility properly and timely files a petition	1611
for reassessment regarding an assessment issued under section	1612
5727.23 of the Revised Code, the petitioner shall pay the tax as	1613
prescribed by divisions (B)(2)(a), (b), and (c) of this section:	1614

(a) If the petitioner does not object to the commissioner's	1615
apportionment of the taxable value of the petitioner's taxable	1616
property, the petitioner is not required to pay the part of the	1617
tax otherwise due on the taxable value that the petitioner seeks	1618
to have reduced, subject to division (B)(2)(c) of this section.	1619

(b) If the petitioner objects to the commissioner's	1620
apportionment of the taxable value of the petitioner's taxable	1621
property, the petitioner is not required to pay the tax otherwise	1622
due on the part of the taxable value apportioned to any taxing	1623
district that the petitioner objects to, subject to division	1624
(B)(2)(c) of this section. If, pursuant to division (A) of this	1625
section, the petitioner has, in a proper and timely manner,	1626
apportioned taxable value to a taxing district to which the	1627
commissioner did not apportion the petitioner's taxable value, the	1628
petitioner shall pay the tax due on the taxable value that the	1629
petitioner has apportioned to the taxing district, subject to	1630
division (B)(2)(c) of this section.	1631

(c) If a petitioner objects to the percentage of true value	1632
at which taxable property is assessed by the commissioner, the	1633
petitioner shall pay the tax due on the basis of the percentage of	1634
true value at which the public utility's taxable property is	1635
assessed by the commissioner. In any case, the petitioner's	1636
payment of tax shall not be less than the amount of tax due based	1637
on the taxable value reflected on the last appeal notice issued by	1638
the commissioner under division (C) of this section. Until the	1639
county auditor receives notification under division (E) of this	1640
section and proceeds under section 5727.471 of the Revised Code to	1641
issue any refund that is found to be due, the county auditor shall	1642
not issue a refund for any increase in the reduction in taxable	1643
value that is sought by a petitioner later than forty-five days	1644
after the petitioner files the original petition as required under	1645
division (A) of this section.	1646

(3) Any part of the tax that, under division (B)(2)(a) or (b)	1647
of this section, is not paid shall be collected upon receipt of	1648
the notification as provided in section 5727.471 of the Revised	1649
Code with interest thereon computed in the same manner as interest	1650
is computed under division (E) of section 5715.19 of the Revised	1651
Code, subject to any correction of the assessment by the	1652
commissioner under division (E) of this section or the final	1653
judgment of the board of tax appeals or a court to which the	1654
board's final judgment is appealed. The penalty imposed under	1655
section 323.121 of the Revised Code shall apply only to the unpaid	1656
portion of the tax if the petitioner's tax payment is less than	1657
the amount of tax due based on the taxable value reflected on the	1658
last appeal notice issued by the commissioner under division (C)	1659
of this section.	1660

(C) Upon receipt of a properly filed petition for	1661
reassessment, the tax commissioner shall notify the treasurer of	1662
state or the auditor of each county to which the assessment	1663
objected to has been certified. In the case of a petition with	1664
respect to an assessment issued under section 5727.23 of the	1665
Revised Code, the commissioner shall issue an appeal notice within	1666
thirty days after receiving the amount of the taxable value	1667
reduction and apportionment changes sought by the petitioner in	1668
the original petition or in any additional objections properly and	1669
timely raised by the petitioner. The appeal notice shall indicate	1670
the amount of the reduction in taxable value sought in the	1671
petition or in the additional objections and the extent to which	1672
the reduction in taxable value and any change in apportionment	1673
requested by the petitioner would affect the commissioner's	1674
apportionment of the taxable value among taxing districts in the	1675
county as shown in the assessment. If a petitioner is seeking a	1676
reduction in taxable value on the basis of a lower percentage of	1677
true value than the percentage at which the commissioner assessed	1678
the petitioner's taxable property, the appeal notice shall	1679
indicate the reduction in taxable value sought by the petitioner	1680
without regard to the reduction sought on the basis of the lower	1681
percentage and shall indicate that the petitioner is required to	1682
pay tax on the reduced taxable value determined without regard to	1683
the reduction sought on the basis of a lower percentage of true	1684
value, as provided under division (B)(2)(c) of this section. The	1685
appeal notice shall include a statement that the reduced taxable	1686
value and the apportionment indicated in the notice are not final	1687
and are subject to adjustment by the commissioner or by the board	1688
of tax appeals or a court on appeal. If the commissioner finds an	1689
error in the appeal notice, the commissioner may amend the notice,	1690
but the notice is only for informational and tax payment purposes;	1691
the notice is not subject to appeal by any person. The	1692
commissioner also shall mail a copy of the appeal notice to the	1693
petitioner. Upon the request of a taxing authority, the county	1694
auditor may disclose to the taxing authority the extent to which a	1695
reduction in taxable value sought by a petitioner would affect the	1696
apportionment of taxable value to the taxing district or districts	1697
under the taxing authority's jurisdiction, but such a disclosure	1698
does not constitute a notice required by law to be given for the	1699
purpose of section 5717.02 of the Revised Code.	1700

(D) If the petitioner requests a hearing on the petition, the	1701
tax commissioner shall assign a time and place for the hearing on	1702
the petition and notify the petitioner of such time and place, but	1703
the commissioner may continue the hearing from time to time as	1704
necessary.	1705

(E) The tax commissioner may make corrections to the	1706
assessment as the commissioner finds proper. The commissioner	1707
shall serve a copy of the commissioner's final determination on	1708
the petitioner in the manner provided in section 5703.37 of the	1709
Revised Code. The commissioner's decision in the matter shall be	1710
final, subject to appeal under section 5717.02 of the Revised	1711
Code. The commissioner also shall transmit a copy of the final	1712
determination to the treasurer of state or applicable county	1713
auditor. In the absence of any further appeal, or when a decision	1714
of the board of tax appeals or of any court to which the decision	1715
has been appealed becomes final, the commissioner shall notify the	1716
public utility and, as appropriate, the treasurer of state who	1717
shall proceed under section 5727.42 of the Revised Code, or the	1718
applicable county auditor who shall proceed under section 5727.471	1719
of the Revised Code.	1720

The notification made under this division is not subject to	1721
further appeal.	1722

(F) On appeal, no adjustment shall be made in the tax	1723
commissioner's assessment issued under section 5727.23 of the	1724
Revised Code that reduces the taxable value of a petitioner's	1725
taxable property by an amount that exceeds the reduction sought by	1726
the petitioner in its petition for reassessment or in any	1727
additional objections properly and timely raised after the	1728
petition is filed with the commissioner.	1729

Sec. 5727.91.  (A) The treasurer of state shall refund the	1730
amount of tax paid under section 5727.81 or 5727.811 of the	1731
Revised Code that was paid illegally or erroneously, or paid on an	1732
illegal or erroneous assessment. A natural gas distribution	1733
company, an electric distribution company, or a self-assessing	1734
purchaser shall file an application for a refund with the tax	1735
commissioner on a form prescribed by the commissioner, within four	1736
years of the illegal or erroneous payment of the tax.	1737

On the filing of the application, the commissioner shall	1738
determine the amount of refund to which the applicant is entitled.	1739
If the amount is not less than that claimed, the commissioner	1740
shall certify that amount to the director of budget and management	1741
and the treasurer of state for payment from the tax refund fund	1742
under section 5703.052 of the Revised Code. If the amount is less	1743
than that claimed, the commissioner shall proceed in accordance	1744
with section 5703.70 of the Revised Code.	1745

If the application for refund is for taxes paid on an illegal	1746
or erroneous assessment, theThe commissioner shall include in the	1747
certified amount interest calculated at the rate per annum	1748
prescribed by section 5703.47 of the Revised Code from the date of	1749
overpayment to the date of the commissioner's certification.	1750

(B) If a natural gas distribution company or an electric	1751
distribution company entitled to a refund of taxes under this	1752
section, or section 5703.70 of the Revised Code, is indebted to	1753
the state for any tax or fee administered by the tax commissioner	1754
that is paid to the state, or any charge, penalty, or interest	1755
arising from such a tax or fee, the amount refundable may be	1756
applied in satisfaction of the debt. If the amount refundable is	1757
less than the amount of the debt, it may be applied in partial	1758
satisfaction of the debt. If the amount refundable is greater than	1759
the amount of the debt, the amount remaining after satisfaction of	1760
the debt shall be refunded. If the natural gas distribution	1761
company or electric distribution company has more than one such	1762
debt, any debt subject to section 5739.33 or division (G) of	1763
section 5747.07 of the Revised Code shall be satisfied first. This	1764
section applies only to debts that have become final.	1765

(C)(1) Any electric distribution company that can	1766
substantiate to the tax commissioner that the tax imposed by	1767
section 5727.81 of the Revised Code was paid on electricity	1768
distributed via wires and consumed at a location outside of this	1769
state may claim a refund in the manner and within the time period	1770
prescribed in division (A) of this section.	1771

(2) Any natural gas distribution company that can	1772
substantiate to the tax commissioner that the tax imposed by	1773
section 5727.811 of the Revised Code was paid on natural gas	1774
distributed via its facilities and consumed at a location outside	1775
of this state may claim a refund in the manner and within the time	1776
period prescribed in division (A) of this section.	1777

(3) If the commissioner certifies a refund based on an	1778
application filed under division (C)(1) or (2) of this section,	1779
the commissioner shall include in the certified amount interest	1780
calculated at the rate per annum prescribed by section 5703.47 of	1781
the Revised Code from the date of overpayment to the date of the	1782
commissioner's certification.	1783

(D) Before a refund is issued under this section or section	1784
5703.70 of the Revised Code, a natural gas company or an electric	1785
distribution company shall certify, as prescribed by the tax	1786
commissioner, that it either did not include the tax imposed by	1787
section 5727.81 of the Revised Code in the case of an electric	1788
distribution company, or the tax imposed by section 5727.811 of	1789
the Revised Code in the case of a natural gas distribution	1790
company, in its distribution charge to its customer upon which a	1791
refund of the tax is claimed, or it has refunded or credited to	1792
the customer the excess distribution charge related to the tax	1793
that was erroneously included in the customer's distribution	1794
charge.	1795

Sec. 5735.01.  As used in this chapter:

1796

(A) "Motor vehicles" includes all vehicles, vessels,	1797
watercraft, engines, machines, or mechanical contrivances which	1798
are powered by internal combustion engines or motors.	1799

(B) "Motor fuel" means gasoline, diesel fuel, K-1 kerosene,	1800
or any other liquid motor fuel, including, but not limited to,	1801
liquid petroleum gas or liquid natural gas, but excluding	1802
substances prepackaged and sold in containers of five gallons or	1803
less.	1804

(C) "K-1 Kerosenekerosene" means fuel that conforms to the	1805
chemical and physical standards for kerosene no. 1-K as set forth	1806
in the americanAmerican society for testing and materials (ASTM)	1807
designated D-3699 "standard for specification for kerosene," as	1808
that standard may be modified from time to time. For purposes of	1809
inspection and testing, laboratory analysis shall be conducted	1810
using methods recognized by the ASTM designation D-3699.	1811

(D) "Diesel fuel" means any liquid fuel capable of use in	1812
discrete form or as a blend component in the operation of engines	1813
of the diesel type, including transmix when mixed with diesel	1814
fuel.	1815

(E) "Gasoline" means any of the following:

1816

(1) All products, commonly or commercially known or sold as	1817
gasoline;	1818

(2) Any blend stocks or additives, including alcohol, that	1819
are sold for blending with gasoline, other than products typically	1820
sold in containers of five gallons or less;	1821

(3) Transmix when mixed with gasoline, unless certified, as	1822
required by the tax commissioner, for withdrawal from terminals	1823
for reprocessing at refineries;	1824

(4) Alcohol that is offered for sale or sold for use as, or	1825
commonly and commercially used as, a fuel for internal combustion	1826
engines.	1827

Gasoline does not include diesel fuel, commercial or	1828
industrial napthas or solvents manufactured, imported, received,	1829
stored, distributed, sold, or used exclusively for purposes other	1830
than as a motor fuel for a motor vehicle or vessel. The blending	1831
of any of the products listed in the preceding sentence,	1832
regardless of name or characteristics, is conclusively presumed to	1833
have been done to produce gasoline, unless the product obtained by	1834
the blending is entirely incapable for use as fuel to operate a	1835
motor vehicle. An additive, blend stock, or alcohol is presumed to	1836
be sold for blending unless a certification is obtained as	1837
required by the tax commissioner.	1838

(F) "Public highways" means lands and lots over which the	1839
public, either as user or owner, generally has a right to pass,	1840
even though the same are closed temporarily by the authorities for	1841
the purpose of construction, reconstruction, maintenance, or	1842
repair.	1843

(G) "Waters within the boundaries of this state" means all	1844
streams, lakes, ponds, marshes, water courses, and all other	1845
bodies of surface water, natural or artificial, which are situated	1846
wholly or partially within this state or within its jurisdiction,	1847
except private impounded bodies of water.	1848

(H) "Person" includes individuals, partnerships, firms,	1849
associations, corporations, receivers, trustees in bankruptcy,	1850
estates, joint-stock companies, joint ventures, the state and its	1851
political subdivisions, and any combination of persons of any	1852
form.	1853

(I)(1) "Motor fuel dealer" means any person who satisfies any	1854
of the following:	1855

(a) The person imports from another state or foreign country	1856
or acquires motor fuel by any means into a terminal in this state;	1857

(b) The person imports motor fuel from another state or	1858
foreign country in bulk lot vehicles for subsequent sale and	1859
distribution in this state from bulk lot vehicles;	1860

(c) The person refines motor fuel in this state;

1861

(d) The person acquires motor fuel from a motor fuel dealer	1862
for subsequent sale and distribution by that person in this state	1863
from bulk lot vehicles;	1864

(e) The person possesses an unrevoked permissive motor fuel	1865
dealer's license.	1866

(2) Any person who obtains dyed diesel fuel for use other	1867
than the operation of motor vehicles upon the public highways or	1868
upon waters within the boundaries of this state, but later uses	1869
that motor fuel for the operation of motor vehicles upon the	1870
public highways or upon waters within the boundaries of this	1871
state, is deemed a motor fuel dealer as regards any unpaid motor	1872
fuel taxes levied on the motor fuel so used.	1873

(J) As used in sections 5735.05, 5735.25, 5735.29, and	1874
5735.30 of the Revised Code only:	1875

(1) With respect to gasoline, "received" or "receipt" shall	1876
be construed as follows:	1877

(a) Gasoline produced at a refinery in this state or	1878
delivered to a terminal in this state is deemed received when it	1879
is disbursed through a loading rack at that refinery or terminal;	1880

(b) Except as provided in division (J)(1)(a) of this section,	1881
gasoline imported into this state or purchased or otherwise	1882
acquired in this state by any person is deemed received within	1883
this state by that person when the gasoline is withdrawn from the	1884
container in which it was transported;	1885

(c) Gasoline delivered or disbursed by any means from a	1886
terminal directly to another terminal is not deemed received.	1887

(2) With respect to motor fuel other than gasoline,	1888
"received" or "receipt" means distributed or sold for use or used	1889
to generate power for the operation of motor vehicles upon the	1890
public highways or upon waters within the boundaries of this	1891
state. All diesel fuel that is not dyed diesel fuel, regardless of	1892
its use, shall be considered as used to generate power for the	1893
operation of motor vehicles upon the public highways or upon	1894
waters within the boundaries of this state when the fuel is sold	1895
or distributed to a person other than a licensed motor fuel dealer	1896
or to a person licensed under section 5735.026 of the Revised	1897
Code.	1898

(K) Motor fuel used for the operation of licensed motor	1899
vehicles employed in the maintenance, construction, or repair of	1900
public highways is deemed to be used for the operation of motor	1901
vehicles upon the public highways.	1902

(L) "Licensed motor fuel dealer" means any dealer possessing	1903
an unrevoked motor fuel dealer's license issued by the tax	1904
commissioner as provided in section 5735.02 of the Revised Code.	1905

(M) "Licensed retail dealer" means any retail dealer	1906
possessing an unrevoked retail dealer's license issued by the tax	1907
commissioner as provided in section 5735.022 of the Revised Code.	1908

(N) "Cents per gallon rate" means the amount computed by the	1909
tax commissioner under section 5735.011 of the Revised Code that	1910
is used to determine that portion of the tax levied by section	1911
5735.05 of the Revised Code that is computed in the manner	1912
prescribed by division (B)(2) of section 5735.06 of the Revised	1913
Code and that is applicable for the period that begins on the	1914
first day of July following the date on which the commissioner	1915
makes the computation.	1916

(O) "Retail dealer" means any person that sells or	1917
distributes motor fuel at a retail service station located in this	1918
state.	1919

(P) "Retail service station" means a location from which	1920
motor fuel is sold to the general public and is dispensed or	1921
pumped directly into motor vehicle fuel tanks for consumption.	1922

(Q) "Transit bus" means a motor vehicle that is operated for	1923
public transit or paratransit service on a regular and continuing	1924
basis within the state by or for a county, a municipal	1925
corporation, a county transit board pursuant to sections 306.01 to	1926
306.13 of the Revised Code, a regional transit authority pursuant	1927
to sections 306.30 to 306.54 of the Revised Code, or a regional	1928
transit commission pursuant to sections 306.80 to 306.90 of the	1929
Revised Code. Public transit or paratransit service may include	1930
fixed route, demand-responsive, or subscription bus service	1931
transportation, but does not include shared-ride taxi service,	1932
carpools, vanpools, jitney service, school bus transportation, or	1933
charter or sightseeing services.	1934

(R) "Export" means motor fuel delivered outside this state.	1935
Motor fuel delivered outside this state by or for the seller	1936
constitutes an export by the seller. Motor fuel delivered outside	1937
this state by or for the purchaser constitutes an export by the	1938
purchaser.	1939

(S) "Import" means motor fuel delivered into this state from	1940
outside this state. Motor fuel delivered into this state from	1941
outside this state by or for the seller constitutes an import by	1942
the seller. Motor fuel delivered into this state from outside this	1943
state by or for the purchaser constitutes an import by the	1944
purchaser.	1945

(T) "Terminal" means a motor fuel storage or distribution	1946
facility that is supplied by pipeline or marine vessel.	1947

(U) "Consumer" means a buyer of motor fuel for purposes other	1948
than resale in any form.	1949

(V) "Bulk lot vehicle" means railroad tank cars, transport	1950
tank trucks and tank wagons with a capacity of at least 1,400	1951
gallons.	1952

(W) "Licensed permissive motor fuel dealer" means any person	1953
possessing an unrevoked permissive motor fuel dealer's license	1954
issued by the tax commissioner under section 5735.021 of the	1955
Revised Code.	1956

(X) "Licensed terminal operator" means any person possessing	1957
an unrevoked terminal operator's license issued by the tax	1958
commissioner under section 5735.026 of the Revised Code.	1959

(Y) "Licensed exporter" means any person possessing an	1960
unrevoked exporter's license issued by the tax commissioner under	1961
section 5735.026 of the Revised Code.	1962

(Z) "Dyed diesel fuel" means any diesel fuel dyed pursuant to	1963
regulations issued by the internal revenue service or a rule	1964
promulgated by the tax commissioner.	1965

(AA) "Gross gallons" means U.S. gallons without temperature	1966
or barometric adjustments.	1967

(BB) "Net gallons" means U.S. gallons with a temperature	1968
adjustment to sixty degrees fahrenheit.	1969

(CC) "Transporter" means either of the following:

1970

(1) A railroad company, street, suburban, or interurban	1971
railroad company, a pipeline company, or water transportation	1972
company that transports motor fuel, either in interstate or	1973
intrastate commerce, to points in this state;	1974

(2) A person that transports motor fuel by any manner to a	1975
point in this state.	1976

(DD) "Exporter" means either of the following:

1977

(1) A person that is licensed to collect and remit motor fuel	1978
taxes in a specified state of destination;	1979

(2) A person that is statutorily prohibited from obtaining a	1980
license to collect and remit motor fuel taxes in a specified state	1981
of destination, and is licensed to sell or distribute tax-paid	1982
motor fuel in the specified state of destination.	1983

(EE) "Report" means a report or return required to be filed	1984
under this chapter and may be used interchangeably with, and for	1985
all purposes has the same meaning as, "return."	1986

Sec. 5735.026.  (A) The tax commissioner, for the purposes of	1987
administering this chapter, shall issue two classes of export	1988
licenses: "exporter type A" licenses and "exporter type B"	1989
licenses. To qualify for an exporter type A license, a person must	1990
demonstrate to the tax commissioner's satisfaction that the person	1991
is licensed to collect and remit motor fuel taxes in the specified	1992
state of destination. To qualify for an exporter type B license,	1993
to a person must demonstratethat receives motor fuel in this	1994
state and exports that fuel out of this state and that	1995
demonstrates to the tax commissioner's satisfaction that the	1996
person is statutorily prohibited from obtaining a license to	1997
collect and remit motor fuel taxes in the specified state of	1998
destination, and that the person is licensed to sell or distribute	1999
tax-paid motor fuel in the specified state of destinationan	2000
exporter.	2001

(B) To obtain an exporter'sexporter license of either class,	2002
a person shall file, under oath, an application with the	2003
commissioner in such form as the commissioner prescribes. The	2004
application shall set forth the following information:	2005

(1) The name under which the exporter will transact business	2006
within the state;	2007

(2) The location, including street number address, of the	2008
exporter's principal office or place of business;	2009

(3) The name and address of the owner, or the names and	2010
addresses of the partners if such exporter is a partnership, or	2011
the names and addresses of the principal officers if the exporter	2012
is a corporation or an association;	2013

(4) A certified copy of the certificate or license issued by	2014
the Secretary of State showing that the corporation is authorized	2015
to transact business in this state if the exporter is a	2016
corporation organized under the laws of another state, territory,	2017
or country;	2018

(5) For an exporter type A licensedescribed in division	2019
(DD)(1) of section 5735.01 of the Revised Code, a copy of the	2020
applicant's license or certificate to collect and remit motor fuel	2021
taxes or sell or distribute motor fuel in the specified	2022
destination state or states for which the license or certificate	2023
is to be issued;	2024

(6) Any other information the commissioner may require.

2025

(C)(1) After a hearing as provided in division (C)(2) of this	2026
section, the tax commissioner may refuse to issue a license to	2027
transact business as an exporter of motor fuel in the following	2028
circumstances:	2029

(a) The applicant has previously had a license issued under	2030
this chapter canceled for cause by the tax commissioner;	2031

(b) The tax commissioner believes that an application is not	2032
filed in good faith;	2033

(c) The applicant has previously violated any provision of	2034
this chapter;	2035

(d) The application is filed as a subterfuge by the applicant	2036
for the real person in interest who has previously had a license	2037
issued under this chapter canceled for cause by the tax	2038
commissioner or who has violated any provision of this chapter.	2039

(2) The tax commissioner shall conduct a hearing before	2040
refusing to issue a license to transact business as an exporter in	2041
any of the circumstances described in division (C)(1) of this	2042
section. The applicant shall be given five days' notice, in	2043
writing, of the hearing. The applicant may appear in person or be	2044
represented by counsel, and may present testimony at the hearing.	2045

(D) When an application in proper form has been accepted for	2046
filing, the commissioner shall issue to such exporter a license to	2047
transact business as an exporter of motor fuel in this state,	2048
subject to cancellation of such license as provided by law.	2049

(E) No person shall make a false or fraudulent statement on	2050
the application required by this section.	2051

Sec. 5735.05.  (A) To provide revenue for maintaining the	2052
state highway system; to widen existing surfaces on such highways;	2053
to resurface such highways; to pay that portion of the	2054
construction cost of a highway project which a county, township,	2055
or municipal corporation normally would be required to pay, but	2056
which the director of transportation, pursuant to division (B) of	2057
section 5531.08 of the Revised Code, determines instead will be	2058
paid from moneys in the highway operating fund; to enable the	2059
counties of the state properly to plan, maintain, and repair their	2060
roads and to pay principal, interest, and charges on bonds and	2061
other obligations issued pursuant to Chapter 133. of the Revised	2062
Code or incurred pursuant to section 5531.09 of the Revised Code	2063
for highway improvements; to enable the municipal corporations to	2064
plan, construct, reconstruct, repave, widen, maintain, repair,	2065
clear, and clean public highways, roads, and streets, and to pay	2066
the principal, interest, and charges on bonds and other	2067
obligations issued pursuant to Chapter 133. of the Revised Code or	2068
incurred pursuant to section 5531.09 of the Revised Code for	2069
highway improvements; to enable the Ohio turnpike and	2070
infrastructure commission to construct, reconstruct, maintain, and	2071
repair turnpike projects; to maintain and repair bridges and	2072
viaducts; to purchase, erect, and maintain street and traffic	2073
signs and markers; to purchase, erect, and maintain traffic lights	2074
and signals; to pay the costs apportioned to the public under	2075
sections 4907.47 and 4907.471 of the Revised Code and to	2076
supplement revenue already available for such purposes; to pay the	2077
costs incurred by the public utilities commission in administering	2078
sections 4907.47 to 4907.476 of the Revised Code; to distribute	2079
equitably among those persons using the privilege of driving motor	2080
vehicles upon such highways and streets the cost of maintaining	2081
and repairing them; to pay the interest, principal, and charges on	2082
highway capital improvements bonds and other obligations issued	2083
pursuant to Section 2m of Article VIII, Ohio Constitution, and	2084
section 151.06 of the Revised Code; to pay the interest,	2085
principal, and charges on highway obligations issued pursuant to	2086
Section 2i of Article VIII, Ohio Constitution, and sections	2087
5528.30 and 5528.31 of the Revised Code; to pay the interest,	2088
principal, and charges on major new state infrastructure bonds and	2089
other obligations of the state issued pursuant to Section 13 of	2090
Article VIII, Ohio Constitution, and section 5531.10 of the	2091
Revised Code; to provide revenue for the purposes of sections	2092
1547.71 to 1547.78 of the Revised Code; and to pay the expenses of	2093
the department of taxation incident to the administration of the	2094
motor fuel laws, a motor fuel excise tax is hereby imposed on all	2095
motor fuel dealers upon receipt of motor fuel within this state at	2096
the rate of two cents plus the cents per gallon rate on each	2097
gallon so received, to be computed in the manner set forth in	2098
section 5735.06 of the Revised Code; provided that no tax is	2099
hereby imposed upon the following transactions:	2100

(1) The sale of dyed diesel fuel by a licensed motor fuel	2101
dealer from a location other than a retail service station	2102
provided the licensed motor fuel dealer places on the face of the	2103
delivery document or invoice, or both if both are used, a	2104
conspicuous notice stating that the fuel is dyed and is not for	2105
taxable use, and that taxable use of that fuel is subject to a	2106
penalty. The tax commissioner, by rule, may provide that any	2107
notice conforming to rules or regulations issued by the United	2108
States department of the treasury or the Internal Revenue Service	2109
is sufficient notice for the purposes of division (A)(1) of this	2110
section.	2111

(2) The sale of K-1 kerosene to a retail service station,	2112
except when placed directly in the fuel supply tank of a motor	2113
vehicle. Such sale shall be rebuttably presumed to not be	2114
distributed or sold for use or used to generate power for the	2115
operation of motor vehicles upon the public highways or upon the	2116
waters within the boundaries of this state.	2117

(3) The sale of motor fuel by a licensed motor fuel dealer to	2118
another licensed motor fuel dealer;	2119

(4) The exportation of motor fuel by a licensed motor fuel	2120
dealer from this state to any other state or foreign country;	2121

(5) The sale of motor fuel to the United States government or	2122
any of its agencies, except such tax as is permitted by it, where	2123
such sale is evidenced by an exemption certificate, in a form	2124
approved by the tax commissioner, executed by the United States	2125
government or an agency thereof certifying that the motor fuel	2126
therein identified has been purchased for the exclusive use of the	2127
United States government or its agency;	2128

(6) The sale of motor fuel that is in the process of	2129
transportation in foreign or interstate commerce, except insofar	2130
as it may be taxable under the Constitution and statutes of the	2131
United States, and except as may be agreed upon in writing by the	2132
dealer and the commissioner;	2133

(7) The sale of motor fuel when sold exclusively for use in	2134
the operation of aircraft, where such sale is evidenced by an	2135
exemption certificate prescribed by the commissioner and executed	2136
by the purchaser certifying that the motor fuel purchased has been	2137
purchased for exclusive use in the operation of aircraft;	2138

(8) The sale for exportation of motor fuel by a licensed	2139
motor fuel dealer to a licensed exporter type Adescribed in	2140
division (DD)(1) of section 5735.01 of the Revised Code;	2141

(9) The sale for exportation of motor fuel by a licensed	2142
motor fuel dealer to a licensed exporter type Bdescribed in	2143
division (DD)(2) of section 5735.01 of the Revised Code, provided	2144
that the destination state motor fuel tax has been paid or will be	2145
accrued and paid by the licensed motor fuel dealer.	2146

(10) The sale to a consumer of diesel fuel, by a motor fuel	2147
dealer for delivery from a bulk lot vehicle, for consumption in	2148
operating a vessel when the use of such fuel in a vessel would	2149
otherwise qualify for a refund under section 5735.14 of the	2150
Revised Code.	2151

Division (A)(1) of this section does not apply to the sale or	2152
distribution of dyed diesel fuel used to operate a motor vehicle	2153
on the public highways or upon water within the boundaries of this	2154
state by persons permitted under regulations of the United States	2155
department of the treasury or of the Internal Revenue Service to	2156
so use dyed diesel fuel.	2157

(B) The two cent motor fuel tax levied by this section is	2158
also for the purpose of paying the expenses of administering and	2159
enforcing the state law relating to the registration and operation	2160
of motor vehicles.	2161

(C) After the tax provided for by this section on the receipt	2162
of any motor fuel has been paid by the motor fuel dealer, the	2163
motor fuel may thereafter be used, sold, or resold by any person	2164
having lawful title to it, without incurring liability for such	2165
tax.	2166

If a licensed motor fuel dealer sells motor fuel received by	2167
the licensed motor fuel dealer to another licensed motor fuel	2168
dealer, the seller may deduct on the report required by section	2169
5735.06 of the Revised Code the number of gallons so sold for the	2170
month within which the motor fuel was sold or delivered. In this	2171
event the number of gallons is deemed to have been received by the	2172
purchaser, who shall report and pay the tax imposed thereon.	2173

Sec. 5735.062.  (A) If the total amount of tax required to be	2174
paid under section 5735.06 of the Revised Code for any calendar	2175
year indicated in the following schedule exceeds the amounts	2176
prescribed for that year in the schedulecommissioner so requires,	2177
the dealer shall remit each monthly tax payment in the second	2178
ensuing and each succeeding year by electronic funds transfer	2179
electronically as prescribed by division (B) of this section.	2180

Year 1992         1993 and thereafter Total tax payment $1,200,000         $600,000	2181

If a dealer's total tax payment for each of two consecutive	2182
years beginning with 1993 is six hundred thousand dollars or less,	2183
the dealer is relieved of the requirement to remit taxes by	2184
electronic funds transfer for the year that next follows the	2185
second of the consecutive years in which the total tax payment is	2186
six hundred thousand dollars or less, and is relieved of that	2187
requirement for each succeeding year unless the total tax payment	2188
in a subsequent year exceeds six hundred thousand dollars.	2189

The tax commissioner shall notify each dealer required to	2190
remit taxes by electronic funds transferelectronically of the	2191
dealer's obligation to do so, shall maintain an updated list of	2192
those dealers, and shall timely certify the list and any additions	2193
thereto or deletions therefrom to the treasurer of state. Failure	2194
by the tax commissioner to notify a dealer subject to this section	2195
to remit taxes by electronic funds transferelectronically does	2196
not relieve the dealer of its obligation to remit taxes by	2197
electronic funds transferelectronically.	2198

(B) Dealers required by division (A) of this section to remit	2199
payments by electronic funds transferelectronically shall remit	2200
such payments to the treasurer of state in the manner prescribed	2201
by rules adopted by the treasurer under section 113.061 of the	2202
Revised Code andor through the department of taxation's web site.	2203
Required payments shall be remitted on or before the dates	2204
specified under section 5735.06 of the Revised Code. The payment	2205
of taxes by electronic funds transferelectronically does not	2206
affect a dealer's obligation to file the monthly reportreturn as	2207
required under section 5735.06 of the Revised Code.	2208

A dealer required by this section to remit taxes by	2209
electronic funds transferelectronically may apply to the	2210
treasurer of state in the manner prescribed by the treasurer	2211
commissioner to be excused from that requirement. The treasurer of	2212
statecommissioner may excuse the dealer from the electronic	2213
remittance by electronic funds transferrequirement for good cause	2214
shown for the period of time requested by the dealer or for a	2215
portion of that period. The treasurer shall notify the tax	2216
commissioner and the dealer of the treasurer's decision as soon as	2217
is practicable.	2218

(C) If a dealer required by this section to remit taxes by	2219
electronic funds transfer remits those taxes by some means other	2220
than by electronic funds transfer as prescribed by this section	2221
and the rules adopted by the treasurer of state, and the treasurer	2222
determines that such failure was not due to reasonable cause or	2223
was due to willful neglect, the treasurer shall notify the tax	2224
commissioner of the failure to remit by electronic funds transfer	2225
and shall provide the commissioner with any information used in	2226
making that determination. The taxelectronically fails to do so,	2227
the commissioner may collect an additional charge by assessment in	2228
the manner prescribed by section 5735.12 of the Revised Code. The	2229
additional charge shall equal five per cent of the amount of the	2230
taxes required to be paid by electronic funds transfer, but shall	2231
not exceed five thousand dollars. Any additional charge assessed	2232
under this section is in addition to any other penalty or charge	2233
imposed under this chapter, and shall be considered as revenue	2234
arising from taxes imposed under this chapter. The tax	2235
commissioner may remit all or a portion of such a charge and may	2236
adopt rules governing such remission.	2237

No additional charge shall be assessed under this division	2238
against a dealer that has been notified of its obligation to remit	2239
taxes under this section and that remits its first two tax	2240
payments after such notification by some means other than	2241
electronic funds transfer. The additional charge may be assessed	2242
upon the remittance of any subsequent tax payment that the dealer	2243
remits by some means other than electronic funds transferimpose a	2244
penalty on the dealer not to exceed one of the following:	2245

(1) For the first return period the dealer fails to remit	2246
taxes electronically, the greater of twenty-five dollars or five	2247
per cent of the amount of the payment required to be remitted;	2248

(2) For the second or any subsequent return period the dealer	2249
fails to remit taxes electronically, the greater of fifty dollars	2250
or ten per cent of the amount of the payment required to be	2251
remitted.	2252

The penalty imposed under division (C) of this section is in	2253
addition to any other penalty imposed under this chapter and shall	2254
be considered as revenue arising from the taxes imposed under this	2255
chapter. A penalty may be collected by assessment in the manner	2256
prescribed by section 5735.12 of the Revised Code. The	2257
commissioner may abate all or a portion of a penalty.	2258

(D) The commissioner may adopt rules necessary to administer	2259
this section.	2260

Sec. 5735.07.  Each month the tax commissioner shall make a	2261
list of all motor fuel dealers that have filed a report pursuant	2262
to section 5735.06 of the Revised Code. The list shall contain the	2263
names and addresses of all dealers and, the number of gallons of	2264
motor fuel upon which those dealers were required to pay the tax	2265
as reported on the return or as determined by investigation of the	2266
commissioner, and each dealer's federal identification number or	2267
other motor fuel tax account number. The list shall be open to	2268
public inspection in the office of the commissioner or posted on	2269
the department of taxation's web site.	2270

Sec. 5735.09.  (A) Every railroad company, every street,	2271
suburban, or interurban railroad company, every pipe line company,	2272
and every water transportation company, which transports motor	2273
fuel, either in interstate or in intrastate commerce, to points	2274
within this state, and every person who transports motor fuel by	2275
any manner to a point in this state,transporter shall report all	2276
deliveries of motor fuel made to points within this state to	2277
register with the tax commissioner on formsa form prescribed by	2278
the tax commissioner.	2279

Each transporter shall report all deliveries of motor fuel	2280
made to points in this state to the commissioner on forms	2281
prescribed by the commissioner. Such reports shall cover monthly	2282
periods, shall be submitted within thirty days after the close of	2283
the month covered by the report, shall show the name and address	2284
of the person to whom the deliveries of motor fuel were actually	2285
made, the name and address of the person that assumes ownership of	2286
the motor fuel, the point of origin, the point of delivery, the	2287
date of delivery, and the number and initials of each car if	2288
shipped by rail, the quantity of each shipment and delivery in	2289
gallons, the date delivered, the name of the person to whom	2290
delivered, the point of shipment, the point of delivery, the name	2291
of the boat or barge if delivered by water, and if delivered by	2292
other means, the manner in which such delivery is made.	2293

(B) No person required by this section to file a report shall	2294
file a false or fraudulent report or supporting schedule.	2295

Sec. 5735.12.  (A) Any motor fuel dealerperson required by	2296
this chapter to file reports andor pay the tax levied by this	2297
chapter who fails to file the reportdo so within the time	2298
prescribed, may be liable for an additional charge not exceeding	2299
the greater of ten per cent of the motor fuel dealer'sperson's	2300
tax liability for that month or fifty dollars. The tax	2301
commissioner may remit all or a portion of the additional charge	2302
and may adopt rules relating to the remission of all or a portion	2303
of the charge.	2304

If any person required by this chapter to file reports andor	2305
pay the taxes, interest, or additional charge levied by this	2306
chapter fails to file the report, files an incomplete or incorrect	2307
report, or fails to remit the full amount of the tax, interest, or	2308
additional charge due for the period covered by the report, the	2309
commissioner may make an assessment against the person based upon	2310
any information in the commissioner's possession.	2311

No assessment shall be made against any motor fuel dealer for	2312
taxes imposed by this chapter more than four years after the date	2313
on which the report on which the assessment was based was due or	2314
was filed, whichever is later. This section does not bar an	2315
assessment against any motor fuel dealer who fails to file a	2316
report required by section 5735.06 of the Revised Code, or who	2317
files a fraudulent motor fuel tax report.	2318

A penalty of up to fifteen per cent may be added to the	2319
amount of every assessment made under this section. The	2320
commissioner may adopt rules providing for the imposition and	2321
remission of penalties added to assessments made under this	2322
section.	2323

The commissioner shall give the party assessed written notice	2324
of the assessment in the manner provided in section 5703.37 of the	2325
Revised Code. With the notice, the commissioner shall provide	2326
instructions on how to petition for reassessment and request a	2327
hearing on the petition.	2328

(B) Unless the party assessed files with the tax commissioner	2329
within sixty days after service of the notice of assessment,	2330
either personally or by certified mail, a written petition for	2331
reassessment in writing, signed by the party assessed or that	2332
party's authorized agent having knowledge of the facts, the	2333
assessment becomes final and the amount of the assessment is due	2334
and payable from the party assessed to the treasurer of state. The	2335
petition shall indicate the objections of the party assessed, but	2336
additional objections may be raised in writing if received by the	2337
commissioner prior to the date shown on the final determination.	2338
If the petition has been properly filed, the commissioner shall	2339
proceed under section 5703.60 of the Revised Code.	2340

(C) After an assessment becomes final, if any portion of the	2341
assessment remains unpaid, including accrued interest, a certified	2342
copy of the tax commissioner's entry making the assessment final	2343
may be filed in the office of the clerk of the court of common	2344
pleas in the county in which the party assessed resides or in	2345
which the business of the party assessed is conducted. If the	2346
party assessed maintains no place of business in this state and is	2347
not a resident of this state, the certified copy of the entry may	2348
be filed in the office of the clerk of the court of common pleas	2349
of Franklin county.	2350

Immediately upon the filing of the entry, the clerk shall	2351
enter a judgment for the state against the party assessed in the	2352
amount shown on the entry. The judgment may be filed by the clerk	2353
in a loose-leaf book entitled "special judgments for state motor	2354
fuel tax," and shall have the same effect as other judgments.	2355
Execution shall issue upon the judgment upon the request of the	2356
tax commissioner, and all laws applicable to sales on execution	2357
shall apply to sales made under the judgment.	2358

If the assessment is not paid in its entirety within sixty	2359
days after the day the assessment was issued, the portion of the	2360
assessment consisting of tax due shall bear interest at the rate	2361
per annum prescribed by section 5703.47 of the Revised Code from	2362
the day the commissioner issues the assessment until it is paid or	2363
until it is certified to the attorney general for collection under	2364
section 131.02 of the Revised Code, whichever comes first. If the	2365
unpaid portion of the assessment is certified to the attorney	2366
general for collection, the entire unpaid portion of the	2367
assessment shall bear interest at the rate per annum prescribed by	2368
section 5703.47 of the Revised Code from the date of certification	2369
until the date it is paid in its entirety. Interest shall be paid	2370
in the same manner as the tax and may be collected by the issuance	2371
of an assessment under this section.	2372

(D) All money collected by the tax commissioner under this	2373
section shall be paid to the treasurer of state, and when paid	2374
shall be considered as revenue arising from the tax imposed by	2375
this chapter.	2376

(E) If the tax commissioner determines that the commissioner	2377
has erroneously refunded motor fuel tax to any person, the	2378
commissioner may make an assessment against the person for	2379
recovery of the erroneously refunded tax.	2380

Sec. 5735.141.  Any retail dealer of motor fuel shall receive	2381
a refund for Ohio motor fuel taxes paid on fuel lost by a retail	2382
dealer through shrinkage and evaporation. This refund shall be one	2383
per cent of the Ohio motor fuel taxes paid on fuel purchased	2384
during any semiannual period ending the thirtieth day of June or	2385
the thirty-first day of December.	2386

In order to receive a refund, the retail dealer shall file	2387
with the tax commissioner, within one hundred twenty days after	2388
the thirtieth day of June and the thirty-first day of December of	2389
each year, an application for a refund stating the quantity of	2390
motor fuel that was purchased for resale by the applicant during	2391
the preceding semiannual period ending the thirtieth day of June	2392
or the thirty-first day of December and upon which the motor fuel	2393
tax has been paid. No person shall file a claim for the tax on	2394
fewer than one hundred gallons of motor fuel. The form and	2395
contents of the application shall be prescribed by the	2396
commissioner, and the application shall be signed in accordance	2397
with section 5703.25 of the Revised Code. On the filing of the	2398
application, the commissioner shall determine the amount of refund	2399
to which the applicant is entitled. If the amount is not less than	2400
that claimed, the commissioner shall certify the amount to the	2401
director of budget and management and treasurer of state for	2402
payment from the tax refund fund created by section 5703.052 of	2403
the Revised Code. If the amount is less than that claimed, the	2404
commissioner shall proceed in accordance with section 5703.70 of	2405
the Revised Code.	2406

No refund shall be authorized or ordered under this section	2407
for any single claim for the tax on fewer than one hundred gallons	2408
of motor fuel.	2409

The refund authorized by this section or section 5703.70 of	2410
the Revised Code shall be reduced by the cents per gallon amount	2411
of any qualified fuel credit received under section 5735.145 of	2412
the Revised Code, as determined by the commissioner, for each	2413
gallon of qualified fuel included in the total gallonage of motor	2414
fuel upon which the refund is computed.	2415

The right to receive any refund under this section or section	2416
5703.70 of the Revised Code is not assignable. The payment of the	2417
refund shall not be made to any person other than the retail	2418
dealer originally entitled thereto, except that the refund may be	2419
paid to the executor, administrator, receiver, trustee in	2420
bankruptcy, or assignee in insolvency proceedings of such	2421
retailer.	2422

A motor fuel dealer shall be deemed to be a retail dealer	2423
when acting in a retail capacity.	2424

For the purpose of administering this section, the	2425
commissioner may provide a retail dealer with information related	2426
to a wholesale dealer, including the wholesale dealer's federal	2427
identification number or other motor fuel tax account number.	2428

Sec. 5735.23.  (A) Out of receipts from the tax levied by	2429
section 5735.05 of the Revised Code, the treasurer of state shall	2430
place to the credit of the tax refund fund established by section	2431
5703.052 of the Revised Code amounts equal to the refunds	2432
certified by the tax commissioner pursuant to sections 5735.13,	2433
5735.14, 5735.141, and 5735.142, and 5735.16 of the Revised Code.	2434
The treasurer of state shall then transfer the amount required by	2435
section 5735.051 of the Revised Code to the waterways safety fund,	2436
the amount required by section 4907.472 of the Revised Code to the	2437
grade crossing protection fund, and the amount required by section	2438
5735.053 of the Revised Code to the motor fuel tax administration	2439
fund.	2440

(B) Except as provided in division (D) of this section, each	2441
month the balance of the receipts from the tax levied by section	2442
5735.05 of the Revised Code shall be credited, after receipt by	2443
the treasurer of state of certification from the commissioners of	2444
the sinking fund, as required by section 5528.35 of the Revised	2445
Code, that there are sufficient moneys to the credit of the	2446
highway obligations bond retirement fund to meet in full all	2447
payments of interest, principal, and charges for the retirement of	2448
highway obligations issued pursuant to Section 2i of Article VIII,	2449
Ohio Constitution, and sections 5528.30 and 5528.31 of the Revised	2450
Code due and payable during the current calendar year, as follows:	2451

(1) To the state and local government highway distribution	2452
fund, which is hereby created in the state treasury, an amount	2453
that is the same percentage of the balance to be credited as that	2454
portion of the tax per gallon determined under division (B)(2)(a)	2455
of section 5735.06 of the Revised Code is of the total tax per	2456
gallon determined under divisions (B)(2)(a) and (b) of that	2457
section.	2458

(2) After making the distribution to the state and local	2459
government highway distribution fund, the remainder shall be	2460
credited as follows:	2461

(a) Thirty per cent to the gasoline excise tax fund for	2462
distribution pursuant to division (A)(1) of section 5735.27 of the	2463
Revised Code;	2464

(b) Twenty-five per cent to the gasoline excise tax fund for	2465
distribution pursuant to division (A)(3) of section 5735.27 of the	2466
Revised Code;	2467

(c) Except as provided in division (D) of this section,	2468
forty-five per cent to the highway operating fund for distribution	2469
pursuant to division (B)(1) of section 5735.27 of the Revised	2470
Code.	2471

(C) From the balance in the state and local government	2472
highway distribution fund on the last day of each month there	2473
shall be paid the following amounts:	2474

(1) To the local transportation improvement program fund	2475
created by section 164.14 of the Revised Code, an amount equal to	2476
a fraction of the balance in the state and local government	2477
highway distribution fund, the numerator of which fraction is one	2478
and the denominator of which fraction is that portion of the tax	2479
per gallon determined under division (B)(2)(a) of section 5735.06	2480
of the Revised Code;	2481

(2) An amount equal to five cents multiplied by the number of	2482
gallons of motor fuel sold at stations operated by the Ohio	2483
turnpike and infrastructure commission, such gallonage to be	2484
certified by the commission to the treasurer of state not later	2485
than the last day of the month following. The funds paid to the	2486
commission pursuant to this section shall be expended for the	2487
construction, reconstruction, maintenance, and repair of turnpike	2488
projects, except that the funds may not be expended for the	2489
construction of new interchanges. The funds also may be expended	2490
for the construction, reconstruction, maintenance, and repair of	2491
those portions of connecting public roads that serve existing	2492
interchanges and are determined by the commission and the director	2493
of transportation to be necessary for the safe merging of traffic	2494
between the turnpike and those public roads.	2495

The remainder of the balance shall be distributed as follows	2496
on the fifteenth day of the following month:	2497

(a) Ten and seven-tenths per cent shall be paid to municipal	2498
corporations for distribution pursuant to division (A)(1) of	2499
section 5735.27 of the Revised Code and may be used for any	2500
purpose for which payments received under that division may be	2501
used. Through July 15, 2005, the sum of two hundred forty-eight	2502
thousand six hundred twenty-five dollars shall be monthly	2503
subtracted from the amount so computed and credited to the highway	2504
operating fund. Beginning August 15, 2005, the sum of seven	2505
hundred forty-five thousand eight hundred seventy-five dollars	2506
shall be monthly subtracted from the amount so computed and	2507
credited to the highway operating fund.	2508

(b) Five per cent shall be paid to townships for distribution	2509
pursuant to division (A)(5) of section 5735.27 of the Revised Code	2510
and may be used for any purpose for which payments received under	2511
that division may be used. Through July 15, 2005, the sum of	2512
eighty-seven thousand seven hundred fifty dollars shall be monthly	2513
subtracted from the amount so computed and credited to the highway	2514
operating fund. Beginning August 15, 2005, the sum of two hundred	2515
sixty-three thousand two hundred fifty dollars shall be monthly	2516
subtracted from the amount so computed and credited to the highway	2517
operating fund.	2518

(c) Nine and three-tenths per cent shall be paid to counties	2519
for distribution pursuant to division (A)(3) of section 5735.27 of	2520
the Revised Code and may be used for any purpose for which	2521
payments received under that division may be used. Through July	2522
15, 2005, the sum of two hundred forty-eight thousand six hundred	2523
twenty-five dollars shall be monthly subtracted from the amount so	2524
computed and credited to the highway operating fund. Beginning	2525
August 15, 2005, the sum of seven hundred forty-five thousand	2526
eight hundred seventy-five dollars shall be monthly subtracted	2527
from the amount so computed and credited to the highway operating	2528
fund.	2529

(d) Except as provided in division (D) of this section, the	2530
balance shall be transferred to the highway operating fund and	2531
used for the purposes set forth in division (B)(1) of section	2532
5735.27 of the Revised Code.	2533

(D) Monthly from September to February of each fiscal year,	2534
an amount equal to one-sixth of the amount certified in July of	2535
that year by the treasurer of state pursuant to division (Q) of	2536
section 151.01 of the Revised Code shall, from amounts required to	2537
be credited or transferred to the highway operating fund pursuant	2538
to division (B)(2)(c) or (C)(2)(d) of this section, be credited or	2539
transferred to the highway capital improvement bond service fund	2540
created in section 151.06 of the Revised Code. If, in any of those	2541
months, the amount available to be credited or transferred to the	2542
bond service fund is less than one-sixth of the amount so	2543
certified, the shortfall shall be added to the amount due the next	2544
succeeding month. Any amount still due at the end of the six-month	2545
period shall be credited or transferred as the money becomes	2546
available, until such time as the office of budget and management	2547
receives certification from the treasurer of state or the	2548
treasurer of state's designee that sufficient money has been	2549
credited or transferred to the bond service fund to meet in full	2550
all payments of debt service and financing costs due during the	2551
fiscal year from that fund.	2552

Sec. 5736.01.  As used in this divisionchapter:

2553

(A) "Calendar quarter" and "person" have the same meanings as	2554
in section 5751.01 of the Revised Code.	2555

(B) "Distribution system" means a bulk transfer or terminal	2556
system for the distribution of motor fuel consisting of	2557
refineries, pipelines, marine vessels, and terminals. For the	2558
purposes of this section, motor fuel that is in a refinery,	2559
pipeline, terminal, or marine vessel or that is transporting motor	2560
fuelen route to a refinery, pipeline, or terminal via any method	2561
of transportation is in a "distribution system." Motor fuel is	2562
"outside of a distribution system" if the fuel is in a fuel	2563
storage facility, including, but not limited to, a bulk plant that	2564
is not part of a refinery or terminal, is in the fuel supply tank	2565
of an engine or motor vehicle, or is being transported by a marine	2566
vessel transporting motor fuel to a fuel storage facility that is	2567
not in a distribution system, or a, tank car, rail car, trailer,	2568
truck, or other suitable equipment suitable for ground	2569
transportationto a fuel storage facility that is not in a	2570
distribution system.	2571

(C) "Dyed diesel fuel," "import," "motor fuel," "public	2572
highways," "gasoline," "diesel fuel," "licensed motor fuel	2573
dealer," "licensed permissive motor fuel dealer," and "terminal"	2574
have the same meanings as in section 5735.01 of the Revised Code.	2575
"Gallons" means gross gallons as defined in section 5735.01 of the	2576
Revised Code.	2577

(D) "First sale of motor fuel within this state" means the	2578
initial sale of motor fuel to a point outside a distribution	2579
system, wherever the sale occurs, without regard to where title	2580
transfers or other conditions of sale, when sold for delivery to a	2581
location in this state as that location is shown on the bill of	2582
lading or other similar document issued by the terminal, refinery,	2583
or supplier. "First sale of motor fuel within this state" excludes	2584
the following:	2585

(1) Motor fuel exchanges;

2586

(2) The sale of motor fuel on which the petroleum activity	2587
tax imposed by this chapter was paid in a prior quarterly tax	2588
payment period and on which the supplier may claim a bad debt. As	2589
used in this division, "bad debt" has the same meaning as in	2590
section 5751.01 of the Revised Code.	2591

(E) "GrossCalculated gross receipts" means the sum of the	2592
following:	2593

(1) With respect to sales of gasoline, the product obtained	2594
by multiplying (a) the total amount received by a person, without	2595
deduction for the cost of goods sold or other expenses incurred,	2596
from the first salenumber of gallons of motor fuelgasoline	2597
first sold within this state. For the purposes of division (E) of	2598
this section, "amount received" includes amounts accrued under the	2599
accrual method of accounting. "Gross receipts" shall not include	2600
any of the following amounts:	2601

(1) Receipts derived from the sale of motor fuel when sold	2602
for export to another state;	2603

(2) An amount equal to the federal and state excise taxes	2604
paid by the supplier on the motor fuel;	2605

(3) Bad debts from receipts on the basis of which the tax	2606
imposed by this chapter was paid in a prior quarterly tax payment	2607
period. For the purpose of this division, "bad debts" has the same	2608
meaning as in section 5751.01 of the Revised Code.	2609

(4) Any amount realized from the sale of an account	2610
receivable to the extent the receipts from the underlying	2611
transaction giving rise to the account receivable were included in	2612
the gross receipts of the taxpayerby a supplier during the tax	2613
period by (b) the average wholesale price of a gallon of unleaded	2614
regular gasoline for the calendar quarter that begins six months	2615
before the upcoming calendar quarter, as published by the tax	2616
commissioner under division (C) of section 5736.02 of the Revised	2617
Code;	2618

(2) With respect to sales of motor fuel that is not gasoline,	2619
the product obtained by multiplying (a) the total number of	2620
gallons of motor fuel first sold within this state by a supplier	2621
during the tax period by (b) the average wholesale price of a	2622
gallon of diesel fuel for the calendar quarter that begins six	2623
months before the upcoming calendar quarter, as published by the	2624
tax commissioner under division (C) of section 5736.02 of the	2625
Revised Code.	2626

(F) "Motor fuel used to propel vehicles on public highways	2627
and waterways" includes motor fuel used for the operation of	2628
licensed motor vehicles employed in the maintenance, construction,	2629
or repair of public highways. "Motor fuel used to propel vehicles	2630
on public highways and waterways" does not include dyed diesel	2631
fuel.	2632

(G) "Rack" means a mechanism capable of delivering motor fuel	2633
from a refinery, terminal, or marine vessel into a railroad tank	2634
car, transport truck, tank wagon, fuel supply tank, marine vessel,	2635
or other means of transport outside of a distribution system.	2636

(H) "Refinery" means a facility used to produce motor fuel	2637
and from which motor fuel may be removed by pipeline, by vessel,	2638
or at a rack.	2639

(I) "Supplier" means eitherany of the following:

2640

(1) A person that sells, exchanges, transfers, or otherwise	2641
distributes motor fuel from a terminal or refinery rack to a point	2642
outside of a distribution system, if the person distributes such	2643
motor fuel at a location in this state;	2644

(2) A person that imports or causes the importation of motor	2645
fuel for sale, exchange, transfer, or other distribution by the	2646
person to a point outside of a distribution system in this state;	2647

(3) A person that knowingly purchases motor fuel from an	2648
unlicensed supplier.	2649

(J) "Tax period" means the calendar quarter on the basis of	2650
which a taxpayer is required to pay the tax imposed under this	2651
chapter.	2652

(K) "Taxpayer" means a person subject to the tax imposed by	2653
this chapter.	2654

(L) "Waterways" means all streams, lakes, ponds, marshes,	2655
water courses, and all other bodies of surface water, natural or	2656
artificial, which are situated wholly or partially within this	2657
state or within its jurisdiction, except private impounded bodies	2658
of water.	2659

(M) "Motor fuel exchange" means an exchange of motor fuel	2660
between two or more suppliers, licensed motor fuel dealers, or	2661
licensed permissive motor fuel dealers if delivery occurs at a	2662
refinery, terminal, pipeline, or marine vessel and if the parties	2663
agree that neither party requires monetary compensation from the	2664
other party for the exchanged fuel other than compensation for	2665
differences in product location, grade, or handling.	2666

Sec. 5736.02.  (A) Beginning with the tax period that	2667
commences July 1, 2014, and continuing for every tax period	2668
thereafter, there is hereby levied an excise tax on each supplier	2669
measured by the supplier's calculated gross receipts derived from	2670
the first sale of motor fuel within this state. The tax due shall	2671
be levied at a rate of six and five-tenths mills for each dollar	2672
of thecomputed by multiplying sixty-five one hundredths of one	2673
per cent by the supplier's calculated gross receipts.	2674

All revenue from the tax shall be distributed as follows:

2675

(1) All revenue from the tax as measured by calculated gross	2676
receipts derived from the sale of motor fuel used for propelling	2677
vehicles on public highways and waterways shall be used for the	2678
purposes of maintaining the state highway system, funding the	2679
enforcement of traffic laws, and covering the costs of	2680
hospitalization of indigent persons injured in motor vehicle	2681
accidents on the public highways.	2682

(2) All revenue not distributed as required by division	2683
(A)(1) of this section shall be used for the purpose of funding	2684
the needs of this state and its local governments.	2685

(B) The tax imposed by this section is in addition to any	2686
other taxes or fees imposed under the Revised Code.	2687

(C) The tax commissioner shall determine and publish, on the	2688
web site of the department of taxation, the statewide average	2689
wholesale prices of a gallon of unleaded regular gasoline and of a	2690
gallon of diesel fuel for each calendar quarter. The	2691
commissioner's determination is presumed to be correct unless	2692
clearly erroneous. The figure shall be published at least fifteen	2693
days before the beginning of the calendar quarter. The	2694
commissioner shall base the average price on pricing information	2695
available from the United States energy information administration	2696
or, if such information is not available from that agency, from	2697
another publicly available source selected by the commissioner.	2698
The commissioner shall first make reasonable efforts to obtain	2699
data specific to this state before using national data to	2700
determine the average wholesale price. The price shall not include	2701
any federal or state excise taxes on the gasoline or diesel fuel,	2702
or the tax imposed by this chapter. The price shall be rounded up	2703
to the nearest one-tenth of one cent.	2704

(D) Nothing in this chapter prohibits a person from	2705
separately or proportionately billing or invoicing the tax imposed	2706
by this section to a purchaser of motor fuel.	2707

(E) The tax imposed by this section applies only to suppliers	2708
having a substantial nexus with this state, as that term is	2709
defined in section 5751.01 of the Revised Code. A supplier that	2710
does not have substantial nexus with the state may voluntarily	2711
obtain a license from the commissioner under section 5736.06 of	2712
the Revised Code. A supplier that voluntarily obtains a license	2713
from the commissioner is entitled to the same benefits and is	2714
subject to the same duties and requirements as are suppliers	2715
required to be licensed with the commissioner.	2716

Sec. 5736.03.  (A) No person shall avoid the tax imposed by	2717
this chapter by receiving motor fuel outside of this state and	2718
transferring the motor fuel into this state within one year. Any	2719
such person shall be considered to have received the fuel in this	2720
state and shall include as, in the calculation of calculated gross	2721
receipts, the valuenumber of gallons of motor fuel the person	2722
transfers into this state within one year after the person	2723
receives the property outside of this state.	2724

(B) Any person that knowingly receives motor fuel from a	2725
supplier that is not licensed as required by section 5736.06 of	2726
the Revised Code shall include in the calculation of the person's	2727
calculated gross receipts the number of gallons of motor fuel the	2728
person received in this state or transported into this state from	2729
the unlicensed supplier.	2730

(C) The tax commissioner may adopt rules necessary to	2731
administer this section.	2732

Sec. 5736.04.  (A) Not later than the tenth day of the second	2733
month after the end of each calendar quarter, every taxpayer shall	2734
file with the tax commissioner a tax return in such form as the	2735
commissioner prescribes. The return shall include, but is not	2736
limited to, the amount of the taxpayer's calculated gross receipts	2737
for the calendar quarter and shall indicate the amount of tax due	2738
under section 5736.02 of the Revised Code for the calendar	2739
quarter. The taxpayer shall indicate on each return the portion of	2740
the taxpayer's gross receipts attributable to motor fuel used for	2741
propelling vehicles on public highways and waterways and the	2742
portion of such receipts attributable to motor fuel used for other	2743
purposes. For this purpose, the sale of gasoline and of diesel	2744
fuel that is not dyed diesel fuel shall be rebuttably presumed to	2745
be distributed or sold for use or used to propel vehicles on	2746
public highways or waterways. All other sales of motor fuel shall	2747
be rebuttably presumed not to be distributed or sold for use or	2748
used to propel vehicles on public highways or waterways.	2749

(B)(1) The taxpayer shall remit the tax shown to be due on	2750
the return, and, if required by the tax commissioner, file the	2751
return, electronically. The commissioner may require taxpayers to	2752
use the Ohio business gateway as defined in section 718.051 of the	2753
Revised Code to file return returns and remit the tax, or may	2754
provide another means for taxpayers to file and remit the tax	2755
electronically.	2756

(2) A person required by this section to remit taxes or file	2757
returns electronically may apply to the commissioner, on the form	2758
prescribed by the commissioner, to be excused from that	2759
requirement. The commissioner may excuse a person from such	2760
requirement for good cause.	2761

(C) The tax rate with respect to calculated gross receipts	2762
for a calendar quarter is not fixed until the end of the	2763
measurement period for each calendar quarter. The total amount of	2764
calculated gross receipts reported for a given calendar quarter	2765
shall be subject to the tax rate in effect in that quarter.	2766

Sec. 5736.041. The tax commissioner shall prepare and	2767
maintain a list of suppliers holding a license issued under	2768
section 5736.06 of the Revised Code that has not been revoked or	2769
canceled under section 5736.07 of the Revised Code. The list shall	2770
contain the names and addresses of all such suppliers and each	2771
supplier's account number for the tax imposed under section	2772
5736.02 of the Revised Code. The list shall be open to public	2773
inspection in the office of the commissioner. The commissioner may	2774
post the list on the department of taxation's web site.	2775

Sec. 5736.06.  (A) No person subject to the tax imposed by	2776
section 5736.02 of the Revised Code shall distribute, import, or	2777
cause the importation of motor fuel for consumption in this state	2778
without holding a supplier's license issued by the tax	2779
commissioner to engage in such activities.	2780

(B)(1) A person subject to the tax imposed by section 5736.02	2781
of the Revised Code shall, on or before March 1, 2014, or within	2782
thirty days of first becoming subject to the tax imposed by this	2783
chapter, whichever is earlier, apply to the tax commissioner for a	2784
supplier's license on the form prescribed by the commissioner.	2785

(2) Each person issued a supplier's license under division	2786
(B)(1) of this section shall apply to renew the license on or	2787
before the first day of March of each year.	2788

(3) With each license application submitted under division	2789
(B)(1) or (2) of this section, the applicant shall pay an	2790
application fee equal to one of the following amounts:	2791

(a) If the applicant solely imports or causes the importation	2792
of motor fuel for sale, exchange, or transfer by the person in	2793
this state, three hundred dollars;	2794

(b) If the applicant engages in activities in addition to	2795
those described in division (B)(3)(a) of this section, one	2796
thousand dollars.	2797

If an applicant timely submits an application under division	2798
(B)(1) of this section on or after the first day of September of	2799
any year, the fee that would apply to the applicant under division	2800
(B)(3)(a) or (b) of this section shall be reduced by one-half.	2801

(4) The failure to apply to the commissioner for a supplier's	2802
license does not relieve a person from the requirement to file	2803
returns and pay the tax imposed by this chapter.	2804

(C) The tax commissioner may refuse to issue a license to any	2805
applicant under this section in the following circumstances:	2806

(1) The applicant has previously had any license canceled for	2807
cause by the commissioner.	2808

(2) The commissioner believes that the application is not	2809
filed in good faith or is filed as a subterfuge in an attempt to	2810
procure a license for another person.	2811

(3) The applicant has violated any provision of this chapter.

2812

(D) If the tax commissioner refuses to issue a license to an	2813
applicant under this section, the applicant is entitled to a	2814
refund of the application fee in accordance with section 5736.08	2815
of the Revised Code. All application fees collected under this	2816
section shall be deposited into the motor fuel receiptspetroleum	2817
activity tax administration fund created in section 5736.13 of the	2818
Revised Code.	2819

(E) No person shall make a false or fraudulent statement on	2820
an application required by this section.	2821

Sec. 5736.09.  (A) The tax commissioner may make an	2822
assessment, based on any information in the commissioner's	2823
possession, against any person that fails to file a return or pay	2824
any tax as required by this chapter. The commissioner shall give	2825
the person assessed written notice of the assessment as provided	2826
in section 5703.37 of the Revised Code. With the notice, the	2827
commissioner shall provide instructions on the manner in which to	2828
petition for reassessment and request a hearing with respect to	2829
the petition.	2830

(B) Unless the person assessed, within sixty days after	2831
service of the notice of assessment, files with the commissioner,	2832
either personally or by certified mail, a written petition signed	2833
by the person or the person's authorized agent having knowledge of	2834
the facts, the assessment becomes final, and the amount of the	2835
assessment is due and payable from the person assessed to the	2836
treasurer of state. The petition shall indicate the objections of	2837
the person assessed, but additional objections may be raised in	2838
writing if received by the commissioner prior to the date shown on	2839
the final determination.	2840

If a petition for reassessment has been properly filed, the	2841
commissioner shall proceed under section 5703.60 of the Revised	2842
Code.	2843

(C)(1) After an assessment becomes final, if any portion of	2844
the assessment, including accrued interest, remains unpaid, a	2845
certified copy of the commissioner's entry making the assessment	2846
final may be filed in the office of the clerk of the court of	2847
common pleas in the county in which the person resides or has its	2848
principal place of business in this state, or in the office of the	2849
clerk of court of common pleas of Franklin county.	2850

(2) Immediately upon the filing of the entry, the clerk shall	2851
enter judgment for the state against the person assessed in the	2852
amount shown on the entry. The judgment may be filed by the clerk	2853
in a loose-leaf book entitled, "special judgments for the motor	2854
fuel receiptspetroleum activity tax" and shall have the same	2855
effect as other judgments. Execution shall issue upon the judgment	2856
at the request of the commissioner, and all laws applicable to	2857
sales on execution shall apply to sales made under the judgment.	2858

(3) If the assessment is not paid in its entirety within	2859
sixty days after the day the assessment was issued, the portion of	2860
the assessment consisting of tax due shall bear interest at the	2861
rate per annum prescribed by section 5703.47 of the Revised Code	2862
from the day the commissioner issues the assessment until it is	2863
paid or until it is certified to the attorney general for	2864
collection under section 131.02 of the Revised Code, whichever	2865
comes first. If the unpaid portion of the assessment is certified	2866
to the attorney general for collection, the entire unpaid portion	2867
of the assessment shall bear interest at the rate per annum	2868
prescribed by section 5703.47 of the Revised Code from the date of	2869
certification until the date it is paid in its entirety. Interest	2870
shall be paid in the same manner as the tax and may be collected	2871
by the issuance of an assessment under this section.	2872

(D) If the commissioner believes that collection of the tax	2873
will be jeopardized unless proceedings to collect or secure	2874
collection of the tax are instituted without delay, the	2875
commissioner may issue a jeopardy assessment against the person	2876
liable for the tax. Immediately upon the issuance of the jeopardy	2877
assessment, the commissioner shall file an entry with the clerk of	2878
the court of common pleas in the manner prescribed by division (C)	2879
of this section. Notice of the jeopardy assessment shall be served	2880
on the person assessed or the person's authorized agent in the	2881
manner provided in section 5703.37 of the Revised Code within five	2882
days of the filing of the entry with the clerk. The total amount	2883
assessed is immediately due and payable, unless the person	2884
assessed files a petition for reassessment in accordance with	2885
division (B) of this section and provides security in a form	2886
satisfactory to the commissioner and in an amount sufficient to	2887
satisfy the unpaid balance of the assessment. Full or partial	2888
payment of the assessment does not prejudice the commissioner's	2889
consideration of the petition for reassessment.	2890

(E) The commissioner shall immediately forward to the	2891
treasurer of state all amounts the commissioner receives under	2892
this section, and such amounts shall be considered as revenue	2893
arising from the tax imposed under this chapter.	2894

(F) Except as otherwise provided in this division, no	2895
assessment shall be made or issued against a taxpayer for the tax	2896
imposed under this chapter more than four years after the due date	2897
for the filing of the return for the tax period for which the tax	2898
was reported, or more than four years after the return for the tax	2899
period was filed, whichever is later. The time limit may be	2900
extended if both the taxpayer and the commissioner consent in	2901
writing to the extension or enter into an agreement waiving or	2902
extending the time limit. Any such extension shall extend the	2903
four-year time limit in division (A) of section 5736.08 of the	2904
Revised Code for the same period of time. Nothing in this division	2905
bars an assessment against a taxpayer that fails to file a return	2906
required by this chapter or that files a fraudulent return.	2907

(G) If the commissioner possesses information that indicates	2908
that the amount of tax a taxpayer is required to pay under this	2909
chapter exceeds the amount the taxpayer paid, the commissioner may	2910
audit a sample of the taxpayer's calculated gross receipts over a	2911
representative period of time to ascertain the amount of tax due,	2912
and may issue an assessment based on the audit. The commissioner	2913
shall make a good faith effort to reach agreement with the	2914
taxpayer in selecting a representative sample. The commissioner	2915
may apply a sampling method only if the commissioner has	2916
prescribed the method by rule.	2917

(H) If the whereabouts of a person subject to this chapter is	2918
not known to the commissioner, the commissioner shall follow the	2919
procedures under section 5703.37 of the Revised Code.	2920

Sec. 5736.13.  (A) For the purpose of receiving, accounting	2921
for, and distributing revenue received from the tax imposed by	2922
section 5736.02 of the Revised Code, the following funds are	2923
hereby created in the state treasury:	2924

(1) The motor fuel receiptspetroleum activity tax fund;

2925

(2) The motor fuel receiptspetroleum activity tax	2926
administration fund. All amounts credited to the motor fuel	2927
receiptspetroleum activity tax administration fund shall be used	2928
solely for the purpose of paying the expenses of the department of	2929
taxation incident to the administration of the tax imposed by	2930
section 5736.02 of the Revised Code.	2931

(3) The motor fuel receiptspetroleum activity tax public	2932
highways fund.	2933

(B) All money collected from the tax imposed by section	2934
5736.02 of the Revised Code shall be deposited into the motor fuel	2935
receiptspetroleum activity tax fund.	2936

(C) From the motor fuel receiptspetroleum activity tax fund,	2937
the director of budget and management shall place to the credit of	2938
the tax refund fund established by section 5703.052 of the Revised	2939
Code amounts equal to the refunds certified by the tax	2940
commissioner pursuant to section 5736.08 of the Revised Code.	2941

(D) Not later than the last day of March, June, September,	2942
and December of each year, the director of budget and management	2943
shall provide for the transfer of the balance of the motor fuel	2944
receiptspetroleum activity tax fund as of the last day of the	2945
preceding month, excluding any amounts required to be transferred	2946
as provided in division (C) of this section, as follows:	2947

(1) To the motor fuel receiptspetroleum activity tax	2948
administration fund, one per cent;	2949

(2) To the motor fuel receiptspetroleum activity tax public	2950
highways fund, an amount that bears the same ratio to the balance	2951
in the motor fuel receiptspetroleum activity tax fund, after	2952
subtracting the amount transferred under division (D)(1) of this	2953
section, that (a) the calculated gross receipts attributed to	2954
motor fuel used for propelling vehicles on public highways and	2955
waterways as indicated by returns filed by the last day of the	2956
preceding month, bears to (b) all calculated gross receipts as	2957
indicated by those returns;	2958

(3) To the general revenue fund, the amount remaining after	2959
the transfers required by divisions (D)(1) and (2) of this	2960
section.	2961

Sec. 5736.50. (A) A taxpayer granted a credit by the tax	2962
credit authority under section 122.17 or division (B)(2) or (3) of	2963
section 122.171 of the Revised Code may claim a refundable credit	2964
against the tax imposed under this chapter. For the purpose of	2965
making tax payments under this chapter, taxes equal to the amount	2966
of the refundable credit shall be considered to be paid on the	2967
first day of the tax period.	2968

(B) A taxpayer granted a credit by the tax credit authority	2969
under division (B)(1) of section 122.171 of the Revised Code may	2970
claim a nonrefundable tax credit against the tax imposed under	2971
this chapter.	2972

(C) Credits authorized in division (A) or (B) of this section	2973
shall not be claimed for any tax period beginning after the date	2974
on which a relocation of employment positions occurs in violation	2975
of an agreement entered into under section 122.17 or 122.171 of	2976
the Revised Code.	2977

(D) A taxpayer may claim any unused portion of the credit	2978
authorized under division (B) of section 5751.50 of the Revised	2979
Code against the tax imposed under this chapter. No credit shall	2980
be allowed under this division if the credit was available against	2981
the tax imposed under section 5751.02 of the Revised Code except	2982
to the extent the credit was not applied against that tax.	2983

(E) The amount of a credit claimed under division (B) or (D)	2984
of this section shall not exceed the tax otherwise due for the tax	2985
period. If the credit allowed under division (B) or (D) of this	2986
section exceeds the tax otherwise due, the excess may be carried	2987
forward to the extent authorized by section 122.171 of the Revised	2988
Code.	2989

If a taxpayer is authorized to claim credits under division	2990
(A) and either or both of divisions (B) and (D) of this section	2991
for the same tax period, the taxpayer shall claim the credit	2992
allowed under division (B) or (D) before the credit allowed under	2993
division (A) of this section.	2994

Sec. 5743.01.  As used in this chapter:

2995

(A) "Person" includes individuals, firms, partnerships,	2996
associations, joint-stock companies, corporations, combinations of	2997
individuals of any form, and the state and any of its political	2998
subdivisions.	2999

(B) "Wholesale dealer" includes only those persons:

3000

(1) Who bring in or cause to be brought into this state	3001
unstamped cigarettes purchased directly from the manufacturer,	3002
producer, or importer of cigarettes for sale in this state but	3003
does not include persons who bring in or cause to be brought into	3004
this state cigarettes with respect to which no evidence of tax	3005
payment is required thereon as provided in section 5743.04 of the	3006
Revised Code; or	3007

(2) Who are engaged in the business of selling cigarettes or	3008
tobacco products to others for the purpose of resale.	3009

"Wholesale dealer" does not include any cigarette	3010
manufacturer, export warehouse proprietor, or importer with a	3011
valid permit under 26 U.S.C. 5713 if that person sells cigarettes	3012
in this state only to wholesale dealers holding valid and current	3013
licenses under section 5743.15 of the Revised Code or to an export	3014
warehouse proprietor or another manufacturer.	3015

(C) "Retail dealer" includes:

3016

(1) In reference to dealers in cigarettes, every person other	3017
than a wholesale dealer engaged in the business of selling	3018
cigarettes in this state, regardless of whether the person is	3019
located in this state or elsewhere, and regardless of quantity,	3020
amount, or number of sales;	3021

(2) In reference to dealers in tobacco products, any person	3022
in this state engaged in the business of selling tobacco products	3023
to ultimate consumers in this state, regardless of quantity,	3024
amount, or number of sales.	3025

(D) "Sale" includes exchange, barter, gift, offer for sale,	3026
and distribution, and includes transactions in interstate or	3027
foreign commerce.	3028

(E) "Cigarettes" includes any roll for smoking made wholly or	3029
in part of tobacco, irrespective of size or shape, and whether or	3030
not such tobacco is flavored, adulterated, or mixed with any other	3031
ingredient, the wrapper or cover of which is made of paper,	3032
reconstituted cigarette tobacco, homogenized cigarette tobacco,	3033
cigarette tobacco sheet, or any similar materials other than cigar	3034
tobacco.	3035

(F) "Package" means the individual package, box, or other	3036
container in or from which retail sales of cigarettes are normally	3037
made or intended to be made.	3038

(G) "Stamp" includes an impression made by a metering device	3039
as provided for in section 5743.04 of the Revised Code.	3040

(H) "Storage" includes any keeping or retention of cigarettes	3041
or tobacco products for use or consumption in this state.	3042

(I)(H) "Use" includes the exercise of any right or power	3043
incidental to the ownership of cigarettes or tobacco products.	3044

(J)(I) "Tobacco product" or "other tobacco product" means any	3045
product made from tobacco, other than cigarettes, that is made for	3046
smoking or chewing, or both, and snuff.	3047

(K)(J) "Wholesale price" means the invoice price, including	3048
all federal excise taxes, at which the manufacturer of the tobacco	3049
product sells the tobacco product to unaffiliated distributors,	3050
excluding any discounts based on the method of payment of the	3051
invoice or on time of payment of the invoice. If the taxpayer buys	3052
from other than a manufacturer, "wholesale price" means the	3053
invoice price, including all federal excise taxes and excluding	3054
any discounts based on the method of payment of the invoice or on	3055
time of payment of the invoice.	3056

(L)(K) "Distributor" means:

3057

(1) Any manufacturer who sells, barters, exchanges, or	3058
distributes tobacco products to a retail dealer in the state,	3059
except when selling to a retail dealer that has filed with the	3060
manufacturer a signed statement agreeing to pay and be liable for	3061
the tax imposed by section 5743.51 of the Revised Code;	3062

(2) Any wholesale dealer located in the state who receives	3063
tobacco products from a manufacturer, or who receives tobacco	3064
products on which the tax imposed by this chapter has not been	3065
paid;	3066

(3) Any wholesale dealer located outside the state who sells,	3067
barters, exchanges, or distributes tobacco products to a wholesale	3068
or retail dealer in the state; or	3069

(4) Any retail dealer who receives tobacco products on which	3070
the tax has not or will not be paid by another distributor,	3071
including a retail dealer that has filed a signed statement with a	3072
manufacturer in which the retail dealer agrees to pay and be	3073
liable for the tax that would otherwise be imposed on the	3074
manufacturer by section 5743.51 of the Revised Code.	3075

(M)(L) "Taxpayer" means any person liable for the tax imposed	3076
by section 5743.51, 5743.62, or 5743.63 of the Revised Code.	3077

(N)(M) "Seller" means any person located outside this state	3078
engaged in the business of selling tobacco products to consumers	3079
for storage, use, or other consumption in this state.	3080

(O)(N) "Manufacturer" means any person who manufactures and	3081
sells cigarettes or tobacco products.	3082

(P)(O) "Importer" means any person that is authorized, under	3083
a valid permit issued under Section 5713 of the Internal Revenue	3084
Code, to import finished cigarettes into the United States, either	3085
directly or indirectly.	3086

(Q)(P) "Little cigar" means any roll for smoking, other than	3087
cigarettes, made wholly or in part of tobacco that uses an	3088
integrated cellulose acetate filter or other filter and is wrapped	3089
in any substance containing tobacco, other than natural leaf	3090
tobacco.	3091

Sec. 5743.021.  (A) As used in this section, "qualifying	3092
regional arts and cultural district" means a regional arts and	3093
cultural district created under section 3381.04 of the Revised	3094
Code in a county having a population of one million two hundred	3095
thousand or more according to the 2000 federal decennial census.	3096

(B) For one or more of the purposes for which a tax may be	3097
levied under section 3381.16 of the Revised Code and for the	3098
purposes of paying the expenses of administering the tax and the	3099
expenses charged by a board of elections to hold an election on a	3100
question submitted under this section, the board of county	3101
commissioners of a county that has within its territorial	3102
boundaries a qualifying regional arts and cultural district may	3103
levy a tax on the sale of cigarettes sold for resale at retail in	3104
the county composing the district. The rate of the tax, when added	3105
to the rate of any other tax concurrently levied by the board	3106
under this section, shall not exceed fifteen mills per cigarette,	3107
and shall be computed on each cigarette sold. Only one sale of the	3108
same article shall be used in computing the amount of tax due. The	3109
tax may be levied for any number of years not exceeding ten years.	3110

The tax shall be levied pursuant to a resolution of the board	3111
of county commissioners approved by a majority of the electors in	3112
the county voting on the question of levying the tax. The	3113
resolution shall specify the rate of the tax, the number of years	3114
the tax will be levied, and the purposes for which the tax is	3115
levied. The election may be held on the date of a general,	3116
primary, or special election held not sooner than ninety days	3117
after the date the board certifies its resolution to the board of	3118
elections. If approved by the electors, the tax shall take effect	3119
on the first day of the month specified in the resolution but not	3120
sooner than the first day of the month that is at least sixty days	3121
after the certification of the election results by the board of	3122
elections. A copy of the resolution levying the tax shall be	3123
certified to the tax commissioner at least sixty days prior to the	3124
date on which the tax is to become effective.	3125

(C) The form of the ballot in an election held under this	3126
section shall be as follows, or in any other form acceptable to	3127
the secretary of state:	3128

"For the purpose of .......... (insert the purpose or	3129
purposes of the tax), shall an excise tax be levied throughout	3130
.......... County for the benefit of the ........... (name of the	3131
qualifying regional arts and cultural district) on the sale of	3132
cigarettes at wholesale at the rate of .... mills per cigarette	3133
for ..... years?	3134

3135

		For the tax			3136
		Against the tax	"		3137

(D) The treasurer of state shall credit all moneysAll money	3138
arising from taxes levied on behalf of each district under this	3139
section and section 5743.321 of the Revised Code shall be credited	3140
as follows:	3141

(1) To the tax refund fund created by section 5703.052 of the	3142
Revised Code, amounts equal to the refunds from each tax levied	3143
under this section certified by the tax commissioner pursuant to	3144
section 5743.05 of the Revised Code;	3145

(2) Following the crediting of amounts pursuant to division	3146
(D)(1) of this section:	3147

(a) To the permissive tax distribution fund created under	3148
section 4301.423 of the Revised Code, an amount equal to	3149
ninety-eight per cent of the remainder collected;	3150

(b) To the local excise tax administrative fund, which is	3151
hereby created in the state treasury, an amount equal to two per	3152
cent of such remainder, for use by the tax commissioner in	3153
defraying costs incurred in administering the tax.	3154

On or before the second working day of each month, the	3155
treasurer of state shall certify to the tax commissioner the	3156
amount of taxes levied on behalf of each district under sections	3157
5743.021 and 5743.321 of the Revised Code and paid to the	3158
treasurer of state during the preceding month.	3159

On or before the tenth day of each month, the tax	3160
commissioner shall distribute the amount credited to the	3161
permissive tax distribution fund during the preceding month by	3162
providing for payment of the appropriate amount to the county	3163
treasurer of the county in which the tax is levied.	3164

Sec. 5743.024.  (A) For the purposes of section 307.696 of	3165
the Revised Code, to pay the expenses of administering the tax,	3166
and to pay any or all of the charge the board of elections makes	3167
against the county to hold the election on the question of levying	3168
the tax, or for such purposes and to provide revenues to the	3169
county for permanent improvements, the board of county	3170
commissioners may levy a tax on sales of cigarettes sold for	3171
resale at retail in the county. The tax shall not exceed two and	3172
twenty-five hundredths of a mill per cigarette, and shall be	3173
computed on each cigarette sold. The tax may be levied for any	3174
number of years not exceeding twenty. Only one sale of the same	3175
article shall be used in computing the amount of tax due.	3176

The tax shall be levied pursuant to a resolution of the	3177
county commissioners approved by a majority of the electors in the	3178
county voting on the question of levying the tax. The resolution	3179
shall specify the rate of the tax, the number of years the tax	3180
will be levied, and the purposes for which the tax is levied. Such	3181
election may be held on the date of a general or special election	3182
held not sooner than ninety days after the date the board	3183
certifies its resolution to the board of elections. If approved by	3184
the electors, the tax shall take effect on the first day of the	3185
month specified in the resolution but not sooner than the first	3186
day of the month that is at least sixty days after the	3187
certification of the election results by the board of elections. A	3188
copy of the resolution levying the tax shall be certified to the	3189
tax commissioner at least sixty days prior to the date on which	3190
the tax is to become effective.	3191

A resolution under this section may be joined on the ballot	3192
as a single question with a resolution adopted under section	3193
307.697 or 4301.421 of the Revised Code to levy a tax for the same	3194
purposes and for the purpose of paying the expenses of	3195
administering the tax. The form of the ballot in an election held	3196
pursuant to this section shall be as prescribed in section 307.697	3197
of the Revised Code.	3198

(B) The treasurer of state shall credit all moneysAll money	3199
arising from each county's taxes levied under this section and	3200
section 5743.323 of the Revised Code shall be credited as follows:	3201

(1) To the tax refund fund created by section 5703.052 of the	3202
Revised Code, amounts equal to the refunds from each tax levied	3203
under this section certified by the tax commissioner pursuant to	3204
section 5743.05 of the Revised Code;	3205

(2) Following the crediting of amounts pursuant to division	3206
(B)(1) of this section:	3207

(a) To the permissive tax distribution fund created by	3208
division (B)(1) of section 4301.423 of the Revised Code, an amount	3209
equal to ninety-eight per cent of the remainder collected;	3210

(b) To the local excise tax administrative fund, which is	3211
hereby created in the state treasury, an amount equal to two per	3212
cent of such remainder, for use by the tax commissioner in	3213
defraying costs incurred in administering the tax.	3214

On or before the second working day of each month, the	3215
treasurer of state shall certify to the tax commissioner the	3216
amount of each county's taxes levied under sections 5743.024 and	3217
5743.323 of the Revised Code and paid to the treasurer of state	3218
during the preceding month.	3219

On or before the tenth day of each month, the tax	3220
commissioner shall distribute the amount credited to the	3221
permissive tax distribution fund during the preceding month by	3222
providing for payment of the appropriate amount to the county	3223
treasurer of each county levying the tax.	3224

(C) The board of county commissioners of a county in which a	3225
tax is imposed under this section on the effective date of the	3226
amendment of this section by H.B. 59 of the 130th general	3227
assembly, September 29, 2013, may levy a tax for the purpose of	3228
section 307.673 of the Revised Code regardless of whether or not	3229
the cooperative agreement authorized under that section has been	3230
entered into prior to the day the resolution adopted under	3231
division (C)(1) or (2) of this section is adopted, for the purpose	3232
of reimbursing a county for costs incurred in the construction of	3233
a sports facility pursuant to an agreement entered into by the	3234
county under section 307.696 of the Revised Code, or for the	3235
purpose of paying the costs of capital repairs of and improvements	3236
to a sports facility. The tax shall be levied and approved in one	3237
of the manners prescribed by division (C)(1) or (2) of this	3238
section.	3239

(1) The tax may be levied pursuant to a resolution adopted by	3240
a majority of the members of the board of county commissioners not	3241
later than forty-five days after July 19, 1995. A board of county	3242
commissioners approving a tax under division (C)(1) of this	3243
section may approve a tax under division (D)(1) of section 307.697	3244
or division (B)(1) of section 4301.421 of the Revised Code at the	3245
same time. Subject to the resolution being submitted to a	3246
referendum under sections 305.31 to 305.41 of the Revised Code,	3247
the resolution shall take effect immediately, but the tax levied	3248
pursuant to the resolution shall not be levied prior to the day	3249
following the last day that any tax previously levied pursuant to	3250
this division may be levied.	3251

(2) The tax may be levied pursuant to a resolution adopted by	3252
a majority of the members of the board of county commissioners not	3253
later than September 1, 2015, and approved by a majority of the	3254
electors of the county voting on the question of levying the tax.	3255
The board of county commissioners shall certify a copy of the	3256
resolution to the board of elections immediately upon adopting a	3257
resolution under division (C)(2) of this section. The election may	3258
be held on the date of a general or special election held not	3259
sooner than ninety days after the date the board certifies its	3260
resolution to the board of elections. The form of the ballot shall	3261
be as prescribed by division (C) of section 307.697 of the Revised	3262
Code, except that the phrase "paying not more than one-half of the	3263
costs of providing a sports facility together with related	3264
redevelopment and economic development projects" shall be replaced	3265
by the phrase "paying the costs of constructing, renovating,	3266
improving, or repairing a sports facility and reimbursing a county	3267
for costs incurred by the county in the construction of a sports	3268
facility," and the phrase ", beginning .......... (here insert the	3269
earliest date the tax would take effect)" shall be appended after	3270
"years." A board of county commissioners submitting the question	3271
of a tax under division (C)(2) of this section may submit the	3272
question of a tax under division (D)(2) of section 307.697 or	3273
division (B)(2) of section 4301.421 of the Revised Code as a	3274
single question, and the form of the ballot shall include each of	3275
the proposed taxes.	3276

If approved by a majority of electors voting on the question,	3277
the tax shall take effect on the day specified on the ballot,	3278
which shall not be earlier than the day following the last day	3279
that any tax previously levied pursuant to this division may be	3280
levied.	3281

The rate of a tax levied pursuant to division (C)(1) or (2)	3282
of this section shall not exceed the rate specified in division	3283
(A) of this section. A tax levied pursuant to division (C)(1) or	3284
(2) of this section may be levied for any number of years not	3285
exceeding twenty.	3286

A board of county commissioners adopting a resolution under	3287
this division shall certify a copy of the resolution to the tax	3288
commissioner immediately upon adoption of the resolution.	3289

(D) No tax shall be levied under division (A) of this section	3290
on or after September 23, 2008. This division does not apply to a	3291
tax levied under division (C) of this section, and does not	3292
prevent the collection of any tax levied under this section before	3293
September 23, 2008, so long as that tax remains effective.	3294

Sec. 5743.025.  In addition to the return required by section	3295
5743.03 of the Revised Code, each retail dealer in a county in	3296
which a tax is levied under section 5743.021, 5743.024, or	3297
5743.026 of the Revised Code shall, within thirty days after the	3298
date on which the tax takes effect, make and file a return, on	3299
forms prescribed by the tax commissioner, showing the total number	3300
of cigarettes which such retail dealer had on hand as of the	3301
beginning of business on the date on which the tax takes effect,	3302
and such other information as the commissioner deems necessary for	3303
the administration of section 5743.021, 5743.024, or 5743.026 of	3304
the Revised Code. Each retail dealer shall deliver the return	3305
together with a remittance of the additional amount of tax due on	3306
the cigarettes shown on such return to the treasurer of state. The	3307
treasurer of state shall stamp or otherwise mark on the return the	3308
date it was received and shall also show thereon by stamp or	3309
otherwise the tax payment remitted with the return. Thereafter,	3310
the treasurer of state shall immediately transmit all returns	3311
filed under this section to the tax commissioner. Any retail	3312
dealer who fails to file a return under this section shall, for	3313
each day the retail dealer so fails, forfeit and pay into the	3314
state treasury the sum of one dollar as revenue arising from the	3315
tax imposed by section 5743.021, 5743.024, or 5743.026 of the	3316
Revised Code, and such sum may be collected by assessment in the	3317
manner provided in section 5743.081 of the Revised Code. For	3318
thirty days after the effective date of a tax imposed by section	3319
5743.021, 5743.024, or 5743.026 of the Revised Code, a retail	3320
dealer may possess for sale or sell in the county in which the tax	3321
is levied cigarettes not bearing the stamp or impression required	3322
by section 5743.03 of the Revised Code to evidence payment of the	3323
county tax but on which the tax has or will be paid.	3324

Sec. 5743.03. (A) Except as provided in section 5743.04 of	3325
the Revised Code, the taxes imposed under sections 5743.02,	3326
5743.021, 5743.024, and 5743.026 of the Revised Code shall be paid	3327
by the purchase of tax stamps. A tax stamp shall be affixed to	3328
each package of an aggregate denomination not less than the amount	3329
of the tax upon the contents thereof. The tax stamp, so affixed,	3330
shall be prima-facie evidence of payment of the tax.	3331

Except as is provided in the rules prescribed by the tax	3332
commissioner under authority of sections 5743.01 to 5743.20 of the	3333
Revised Code, and unless tax stamps have been previously affixed,	3334
they shall be so affixed by each wholesale dealer, and canceled by	3335
writing or stamping across the face thereof the number assigned to	3336
such wholesale dealer by the tax commissioner for that purpose,	3337
prior to the delivery of any cigarettes to any person in this	3338
state, or in the case of a tax levied pursuant to section	3339
5743.021, 5743.024, or 5743.026 of the Revised Code, prior to the	3340
delivery of cigarettes to any person in the county in which the	3341
tax is levied.	3342

(B) Except as provided in the rules prescribed by the	3343
commissioner under authority of sections 5743.01 to 5743.20 of the	3344
Revised Code, each retail dealer, within twenty-four hours after	3345
the receipt of any cigarettes at the retail dealer's place of	3346
business, shall inspect the cigarettes to ensure that tax stamps	3347
are affixed. The inspection shall be completed before the	3348
cigarettes are delivered to any person in this state, or, in the	3349
case of a tax levied pursuant to section 5743.021, 5743.024, or	3350
5743.026 of the Revised Code, before the cigarettes are delivered	3351
to any person in the county in which the tax is levied.	3352

(C) Whenever any cigarettes are found in the place of	3353
business of any retail dealer without proper tax stamps affixed	3354
thereto and canceled, it is presumed that such cigarettes are kept	3355
therein in violation of sections 5743.01 to 5743.20 of the Revised	3356
Code.	3357

(D) Each wholesale dealer who purchases cigarettes without	3358
proper tax stamps affixed thereto shall, on or before the	3359
thirty-first day of the month following the close of each	3360
semiannual period, which period shall end on the thirtieth day of	3361
June and the thirty-first day of December of each year, make and	3362
file a return of the preceding semiannual period, on such form as	3363
is prescribed by the tax commissioner, showing the dealer's entire	3364
purchases and sales of cigarettes and stamps or impressions for	3365
such semiannual period and accurate inventories as of the	3366
beginning and end of each semiannual period of cigarettes, stamped	3367
or unstamped; cigarette tax stamps affixed or unaffixed and unused	3368
meter impressions; and such other information as the commissioner	3369
finds necessary to the proper administration of sections 5743.01	3370
to 5743.20 of the Revised Code. The commissioner may extend the	3371
time for making and filing returns and may remit all or any part	3372
of amounts of penalties that may become due under sections 5743.01	3373
to 5743.20 of the Revised Code. The wholesale dealer shall deliver	3374
the return together with a remittance of the tax deficiency	3375
reported thereon to the treasurer of state. The treasurer of state	3376
shall stamp or otherwise mark on the return the date it was	3377
received and shall also show thereon by stamp or otherwise a	3378
payment or nonpayment of the deficiency shown by the return.	3379
Thereafter, the treasurer of state shall immediately transmit all	3380
returns filed under this section to the commissioner.	3381

(E) Any wholesale dealer who fails to file a return under	3382
this section and the rules of the commissioner, other than a	3383
report required pursuant to division (F) of this section, may be	3384
required, for each day the dealer so fails, to forfeit and pay	3385
into the state treasury the sum of one dollar as revenue arising	3386
from the tax imposed by sections 5743.01 to 5743.20 of the Revised	3387
Code and such sum may be collected by assessment in the manner	3388
provided in section 5743.081 of the Revised Code. If the	3389
commissioner finds it necessary in order to insure the payment of	3390
the tax imposed by sections 5743.01 to 5743.20 of the Revised	3391
Code, the commissioner may require returns and payments to be made	3392
other than semiannually. The returns shall be signed by the	3393
wholesale dealer or an authorized agent thereof.	3394

(F) Each person required to file a tax return under section	3395
5743.03, 5743.52, or 5743.62 of the Revised Code shall report to	3396
the commissioner the quantity of all cigarettes and roll-your-own	3397
cigarette tobacco sold in Ohio for each brand not covered by the	3398
tobacco master settlement agreement for which the person is liable	3399
for the taxes levied under section 5743.02, 5743.51, or 5743.62 of	3400
the Revised Code.	3401

As used in this division, "tobacco master settlement	3402
agreement" has the same meaning as in section 183.01 of the	3403
Revised Code.	3404

(G) The report required by division (F) of this section shall	3405
be made on a form prescribed by the commissioner and shall be	3406
filed not later than the last day of each month for the previous	3407
month, except that if the commissioner determines that the	3408
quantity reported by a person does not warrant monthly reporting,	3409
the commissioner may authorize reporting at less frequent	3410
intervals. The commissioner may assess a penalty of not more than	3411
two hundred fifty dollars for each month or portion thereof that a	3412
person fails to timely file a required report, and such sum may be	3413
collected by assessment in the manner provided in section 5743.081	3414
of the Revised Code. All money collected under this division shall	3415
be considered as revenue arising from the taxes imposed by	3416
sections 5743.01 to 5743.20 of the Revised Code.	3417

(H) The treasurer of stateor an agent of thetreasurer	3418
commissioner may sell tax stamps only to a licensed wholesale	3419
dealer, except as otherwise authorized by the commissioner. The	3420
treasureror an agent of thetreasurercommissioner may charge	3421
the costs associated with the shipment of tax stamps to the	3422
licensed wholesale dealer. Amounts collected from such charges	3423
shall be credited to the treasurer of state's administrative	3424
cigarette tax enforcement fund created under section 113.20	3425
5743.15 of the Revised Code.	3426

Sec. 5743.04.  The tax commissioner shall design and procure	3427
the stamps provided for in section 5743.03 of the Revised Code and	3428
shall enforce and administer sections 5743.01 to 5743.44 of the	3429
Revised Code. With respect to packages containing any number of	3430
cigarettes other than twenty, if the commissioner finds that it is	3431
practicable to collect the taxes levied under sections 5743.02,	3432
5743.021, 5743.024, and 5743.026 of the Revised Code by any method	3433
other than that provided in this section and section 5743.03 of	3434
the Revised Code, the commissioner may by rule prescribe such	3435
other method for payment of the taxes upon such packages of	3436
cigarettes as will adequately protect the revenue; provided, that	3437
in any case where the commissioner prescribes that the taxes upon	3438
such packages of cigarettes shall be paid on the basis of returns	3439
filed by a wholesale or retail dealer, said returns, together with	3440
a remittance of all taxes due as shown thereon, shall be filed	3441
with the treasurer of statecommissioner not later than the tenth	3442
day of the month following the month in which such cigarettes are	3443
sold in this state. The commissioner may promulgate rules in	3444
accordance with sections 119.01 to 119.13 of the Revised Code as	3445
the commissioner deems necessary to carry out sections 5743.01 to	3446
5743.44 of the Revised Code and may adopt different detailed rules	3447
applicable to diverse methods and conditions of sale of	3448
cigarettes, prescribing, in each class of cases, upon whom, as	3449
between the wholesale dealer and the retail dealer, the primary	3450
duty of affixing stamps shall rest, and the manner in which stamps	3451
shall be affixed. A copy of such rules shall be furnished to every	3452
licensed dealer as provided in sections 119.01 to 119.13 of the	3453
Revised Code. Any such rule so furnished which excuses a wholesale	3454
dealer from affixing stamps under the circumstances of the	3455
particular case shall be a defense in the prosecution of such	3456
dealer for violation of section 5743.03 of the Revised Code.	3457

The commissioner, after determining that it is practicable to	3458
evidence payment of the taxes levied under sections 5743.02,	3459
5743.021, 5743.024, and 5743.026 of the Revised Code by impression	3460
made by a metering device, shall by resolution provide that such	3461
metering device may be used in lieu of the stamps otherwise	3462
provided for in section 5743.03 of the Revised Code. The	3463
commissioner may authorize any wholesale or retail dealer to use	3464
the metering device approved by the commissioner. Such device	3465
before being used shall be sealed by the treasurer of state, and	3466
shall be used only in accordance with the rules prescribed by the	3467
commissioner.	3468

Wholesale and retail dealers authorized to use said device	3469
shall prepay the tax represented by meter impressions and shall	3470
deliver the metering device to the treasurer of state or county	3471
treasurer in the county in which the place of business of any	3472
wholesaler or retailer is located if such treasurer is designated	3473
by the treasurer of state, who shall seal the meter in accordance	3474
with the prepayments so made.	3475

Sec. 5743.05. AllThe tax commissioner shall sell all stamps	3476
provided for by section 5743.03 of the Revised Code, when procured	3477
by the tax commissioner, shall be immediately delivered to the	3478
treasurer of state, who shall execute a receipt therefor showing	3479
the number and aggregate face value of each denomination received	3480
by the treasurer of state and any other information that the	3481
commissioner requires to enforce the collection and distribution	3482
of all taxes imposed under section 5743.021, 5743.024, or 5743.026	3483
of the Revised Code, and deliver the receipt to the commissioner.	3484
The treasurer of state shall sell the stamps and, on the fifth day	3485
of each month, make a report showing all sales made during the	3486
preceding month, with the names of purchasers, the number of each	3487
denomination, the aggregate face value purchased by each, and any	3488
other information as the commissioner requires to enforce the	3489
collection and distribution of all taxes imposed under section	3490
5743.021, 5743.024, or 5743.026 of the Revised Code, and deliver	3491
it to the commissioner. The treasurer of state shall be	3492
accountable for all stamps received and unsold. The stamps shall	3493
be sold and accounted for at their face value, except the	3494
commissioner shall, by rule certified to the treasurer of state,	3495
authorize the sale of stamps and meter impressions to wholesale or	3496
retail dealers in this state, or to wholesale dealers outside this	3497
state, at a discount of not less than one and eight-tenths per	3498
cent or more than ten per cent of their face value, as a	3499
commission for affixing and canceling the stamps or meter	3500
impressions.	3501

The commissioner, by rule certified to the treasurer of	3502
state, shall authorize the delivery of stamps and meter	3503
impressions to wholesale dealers in this state and to wholesale	3504
dealers outside this state on credit. If such a dealer has not	3505
been in good credit standing with this state for five consecutive	3506
years preceding the purchase, the tax commissioner shall require	3507
the dealer to file with the commissioner a bond to the state in	3508
the amount and in the form prescribed by the commissioner, with	3509
surety to the satisfaction of the commissioner, conditioned on	3510
payment to the treasurer of state or the commissioner within	3511
thirty days for stamps or meter impressions delivered within that	3512
time. If such a dealer has been in good credit standing with this	3513
state for five consecutive years preceding the purchase, the tax	3514
commissioner shall not require that the dealer file such a bond	3515
but shall require payment for the stamps and meter impressions	3516
within thirty days after purchase of the stamps and meter	3517
impressions. Stamps and meter impressions sold to a dealer not	3518
required to file a bond shall be sold at face value. The maximum	3519
amount that may be sold on credit to a dealer not required to file	3520
a bond shall equal one hundred ten per cent of the dealer's	3521
average monthly purchases over the preceding calendar year. The	3522
maximum amount shall be adjusted to reflect any changes in the tax	3523
rate and may be adjusted, upon application to the tax commissioner	3524
by the dealer, to reflect changes in the business operations of	3525
the dealer. The maximum amount shall be applicable to the period	3526
of July through April. Payment by a dealer not required to file a	3527
bond shall be remitted by electronic funds transfer as prescribed	3528
by section 5743.051 of the Revised Code. If a dealer not required	3529
to file a bond fails to make the payment in full within the	3530
thirty-day period, the treasurer of statecommissioner shall not	3531
thereafter sell stamps or meter impressions to that dealer until	3532
the dealer pays the outstanding amount, including penalty and	3533
interest on that amount as prescribed in this chapter, and the	3534
commissioner thereafter may require the dealer to file a bond	3535
until the dealer is restored to good standing. The commissioner	3536
shall limit delivery of stamps and meter impressions on credit to	3537
the period running from the first day of July of the fiscal year	3538
until the first day of the following May. Any discount allowed as	3539
a commission for affixing and canceling stamps or meter	3540
impressions shall be allowed with respect to sales of stamps and	3541
meter impressions on credit.	3542

The treasurer of statecommissioner shall redeem and pay for	3543
any destroyed, unused, or spoiled tax stamps and any unused meter	3544
impressions at their net value, and shall refund to wholesale	3545
dealers the net amount of state and county taxes paid erroneously	3546
or paid on cigarettes that have been sold in interstate or foreign	3547
commerce or that have become unsalable, and the net amount of	3548
county taxes that were paid on cigarettes that have been sold at	3549
retail or for retail sale outside a taxing county.	3550

An application for a refund of tax shall be filed with the	3551
tax commissioner, on the form prescribed by the commissioner for	3552
that purpose, within three years from the date the tax stamps are	3553
destroyed or spoiled, from the date of the erroneous payment, or	3554
from the date that cigarettes on which taxes have been paid have	3555
been sold in interstate or foreign commerce or have become	3556
unsalable.	3557

On the filing of the application, the commissioner shall	3558
determine the amount of refund to which the applicant is entitled,	3559
payable from receipts of the state tax, and, if applicable,	3560
payable from receipts of a county tax. If the amount is less than	3561
that claimed, the commissioner shall certify the amount to the	3562
director of budget and management and treasurer of state for	3563
payment from the tax refund fund created by section 5703.052 of	3564
the Revised Code. If the amount is less than that claimed, the	3565
commissioner shall proceed in accordance with section 5703.70 of	3566
the Revised Code.	3567

If a refund is granted for payment of an illegal or erroneous	3568
assessment issued by the department, the refund shall include	3569
interest on the amount of the refund from the date of the	3570
overpayment. The interest shall be computed at the rate per annum	3571
prescribed by section 5703.47 of the Revised Code.	3572

Sec. 5743.051. This section applies to any wholesale or	3573
retail cigarette dealer required by section 5743.05 of the Revised	3574
Code to remit payment for tax stamps and meter impressions by	3575
electronic funds transfer. The tax commissioner shall notify each	3576
dealer of the dealer's obligation to do so and shall maintain an	3577
updated list of those dealers. Failure by the tax commissioner to	3578
notify a dealer subject to this section to remit taxes by	3579
electronic funds transfer does not relieve the dealer of its	3580
obligation to remit taxes by electronic funds transfer.	3581

A dealer required to remit payments by electronic funds	3582
transfer shall remit such payments to the treasurer of state in	3583
the manner prescribed by rules adopted by the treasurer of state	3584
under section 113.061 of the Revised Code and within the time	3585
prescribed for such a dealer by section 5743.05 of the Revised	3586
Code.	3587

A dealer required to remit taxes by electronic funds transfer	3588
may apply to the tax commissioner in the manner prescribed by the	3589
tax commissioner to be excused from that requirement. The tax	3590
commissioner may excuse the dealer from remittance by electronic	3591
funds transfer for good cause shown for the period of time	3592
requested by the dealer or for a portion of that period.	3593

If a dealer required to remit taxes by electronic funds	3594
transfer remits those taxes by some other means, the treasurer of	3595
state shall notify the tax commissioner of the failure to remit by	3596
electronic funds transfer. If the tax commissioner determines that	3597
such failure was not due to reasonable cause or was due to willful	3598
neglect, the tax commissioner may collect an additional charge by	3599
assessment in the manner prescribed by section 5743.081 of the	3600
Revised Code. The additional charge shall equal five per cent of	3601
the amount of the taxes required to be paid by electronic funds	3602
transfer but shall not exceed five thousand dollars. Any	3603
additional charge assessed under this section is in addition to	3604
any other penalty or charge imposed under this chapter and shall	3605
be considered as revenue arising from taxes imposed under this	3606
chapter. The tax commissioner may abate all or a portion of such a	3607
charge and may adopt rules governing such remissions.	3608

No additional charge shall be assessed under this section	3609
against a dealer that has been notified of its obligation to remit	3610
taxes under this section and that remits its first two tax	3611
payments after such notification by some means other than	3612
electronic funds transfer. The additional charge may be assessed	3613
upon the remittance of any subsequent tax payment that the dealer	3614
remits by some means other than electronic funds transfer.	3615

Sec. 5743.112.  (A) No person shall prepare for shipment,	3616
ship, transport, deliver, prepare for distribution, or distribute	3617
cigarettes, or otherwise engage or participate in the wholesale or	3618
retail business of trafficking in cigarettes, with the intent to	3619
avoid payment of the tax imposed by this chapter, when the total	3620
number of cigarettes in the aggregate exceeds one thousand two	3621
hundred during any twelve-month period.	3622

(B) Any vending machine containing cigarettes which do not	3623
have affixed the stamps or impressions provided for by sections	3624
5743.03 and 5743.04 of the Revised Code shall be seized and	3625
forfeited to the state in accordance with Chapter 2981. of the	3626
Revised Code. Forfeiture shall not affect the rights of a holder	3627
of a valid lien.	3628

(C) A vehicle that is seized as contraband under Chapter	3629
2981. of the Revised Code because of its use in violation of this	3630
chapter is subject to the procedures set forth in that chapter.	3631

Sec. 5743.52.  (A) Each distributor of tobacco products	3632
subject to the tax levied by section 5743.51 of the Revised Code,	3633
on or before the lasttwenty-third day of each month, shall file	3634
with the treasurer of statetax commissioner a return for the	3635
preceding month showing any information the tax commissioner finds	3636
necessary for the proper administration of sections 5743.51 to	3637
5743.66 of the Revised Code, together with remittance of the tax	3638
due. The treasurer of state shall stamp or otherwise mark on the	3639
return the date it was received and shall also show thereon by	3640
stamp or otherwise the amount of payment received with the return.	3641
Thereafter, the treasurer of state shall immediately transmit all	3642
returns filed under this section to the tax commissioner. The	3643
return and payment of the tax required by this section shall be	3644
filed in such a manner that it is received by the treasurer of	3645
statecommissioner on or before the lasttwenty-third day of the	3646
month following the reporting period. If the return is filed and	3647
the amount of tax shown on the return to be due is paid on or	3648
before the date the return is required to be filed, the	3649
distributor is entitled to a discount equal to two and five-tenths	3650
per cent of the amount shown on the return to be due.	3651

(B) Any person who fails to timely file the return and make	3652
payment of taxes as required under this section, section 5743.62,	3653
or section 5743.63 of the Revised Code may be required to pay an	3654
additional charge not exceeding the greater of fifty dollars or	3655
ten per cent of the tax due. Any additional charge imposed under	3656
this section may be collected by assessment as provided in section	3657
5743.56 of the Revised Code.	3658

(C) If any tax due is not paid timely in accordance with	3659
sections 5743.52, 5743.62, or 5743.63 of the Revised Code, the	3660
person liable for the tax shall pay interest, calculated at the	3661
rate per annum as prescribed by section 5703.47 of the Revised	3662
Code, from the date the tax payment was due to the date of payment	3663
or to the date an assessment is issued under section 5743.56 of	3664
the Revised Code, whichever occurs first. The commissioner may	3665
collect such interest by assessment pursuant to section 5743.56 of	3666
the Revised Code.	3667

(D) The commissioner may authorize the filing of returns and	3668
the payment of the tax required by this section, section 5743.62,	3669
or section 5743.63 of the Revised Code for periods longer than a	3670
calendar month.	3671

(E) The commissioner may order any taxpayer to file with the	3672
commissioner security to the satisfaction of the commissioner	3673
conditioned upon filing the return and paying the taxes required	3674
under this section, section 5743.62, or section 5743.63 of the	3675
Revised Code if the commissioner believes that the collection of	3676
the tax may be in jeopardy.	3677

Sec. 5743.65.  No person required by division (B) of section	3678
5743.62 or division (B) of section 5743.63 of the Revised Code to	3679
file a return with the treasurer of statetax commissioner shall	3680
fail to make the return or fail to pay the applicable taxes levied	3681
under section 5743.62 or 5743.63 of the Revised Code or fail to	3682
pay any lawful assessment issued by the tax commissioner.	3683

Sec. 5747.08.  An annual return with respect to the tax	3684
imposed by section 5747.02 of the Revised Code and each tax	3685
imposed under Chapter 5748. of the Revised Code shall be made by	3686
every taxpayer for any taxable year for which the taxpayer is	3687
liable for the tax imposed by that section or under that chapter,	3688
unless the total credits allowed under divisions (E), (F), and (G)	3689
of section 5747.05 of the Revised Code for the year are equal to	3690
or exceed the tax imposed by section 5747.02 of the Revised Code,	3691
in which case no return shall be required unless the taxpayer is	3692
liable for a tax imposed pursuant to Chapter 5748. of the Revised	3693
Code.	3694

(A) If an individual is deceased, any return or notice	3695
required of that individual under this chapter shall be made and	3696
filed by that decedent's executor, administrator, or other person	3697
charged with the property of that decedent.	3698

(B) If an individual is unable to make a return or notice	3699
required by this chapter, the return or notice required of that	3700
individual shall be made and filed by the individual's duly	3701
authorized agent, guardian, conservator, fiduciary, or other	3702
person charged with the care of the person or property of that	3703
individual.	3704

(C) Returns or notices required of an estate or a trust shall	3705
be made and filed by the fiduciary of the estate or trust.	3706

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	3707
of this section, any pass-through entity may file a single return	3708
on behalf of one or more of the entity's investors other than an	3709
investor that is a person subject to the tax imposed under section	3710
5733.06 of the Revised Code. The single return shall set forth the	3711
name, address, and social security number or other identifying	3712
number of each of those pass-through entity investors and shall	3713
indicate the distributive share of each of those pass-through	3714
entity investor's income taxable in this state in accordance with	3715
sections 5747.20 to 5747.231 of the Revised Code. Such	3716
pass-through entity investors for whom the pass-through entity	3717
elects to file a single return are not entitled to the exemption	3718
or credit provided for by sections 5747.02 and 5747.022 of the	3719
Revised Code; shall calculate the tax before business credits at	3720
the highest rate of tax set forth in section 5747.02 of the	3721
Revised Code for the taxable year for which the return is filed;	3722
and are entitled to only their distributive share of the business	3723
credits as defined in division (D)(2) of this section. A single	3724
check drawn by the pass-through entity shall accompany the return	3725
in full payment of the tax due, as shown on the single return, for	3726
such investors, other than investors who are persons subject to	3727
the tax imposed under section 5733.06 of the Revised Code.	3728

(b)(i) A pass-through entity shall not include in such a	3729
single return any investor that is a trust to the extent that any	3730
direct or indirect current, future, or contingent beneficiary of	3731
the trust is a person subject to the tax imposed under section	3732
5733.06 of the Revised Code.	3733

(ii) A pass-through entity shall not include in such a single	3734
return any investor that is itself a pass-through entity to the	3735
extent that any direct or indirect investor in the second	3736
pass-through entity is a person subject to the tax imposed under	3737
section 5733.06 of the Revised Code.	3738

(c) Nothing in division (D) of this section precludes the tax	3739
commissioner from requiring such investors to file the return and	3740
make the payment of taxes and related interest, penalty, and	3741
interest penalty required by this section or section 5747.02,	3742
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	3743
of this section precludes such an investor from filing the annual	3744
return under this section, utilizing the refundable credit equal	3745
to the investor's proportionate share of the tax paid by the	3746
pass-through entity on behalf of the investor under division	3747
(J)(I) of this section, and making the payment of taxes imposed	3748
under section 5747.02 of the Revised Code. Nothing in division (D)	3749
of this section shall be construed to provide to such an investor	3750
or pass-through entity any additional deduction or credit, other	3751
than the credit provided by division (J)(I) of this section,	3752
solely on account of the entity's filing a return in accordance	3753
with this section. Such a pass-through entity also shall make the	3754
filing and payment of estimated taxes on behalf of the	3755
pass-through entity investors other than an investor that is a	3756
person subject to the tax imposed under section 5733.06 of the	3757
Revised Code.	3758

(2) For the purposes of this section, "business credits"	3759
means the credits listed in section 5747.98 of the Revised Code	3760
excluding the following credits:	3761

(a) The retirement credit under division (B) of section	3762
5747.055 of the Revised Code;	3763

(b) The senior citizen credit under division (C) of section	3764
5747.05 of the Revised Code;	3765

(c) The lump sum distribution credit under division (D) of	3766
section 5747.05 of the Revised Code;	3767

(d) The dependent care credit under section 5747.054 of the	3768
Revised Code;	3769

(e) The lump sum retirement income credit under division (C)	3770
of section 5747.055 of the Revised Code;	3771

(f) The lump sum retirement income credit under division (D)	3772
of section 5747.055 of the Revised Code;	3773

(g) The lump sum retirement income credit under division (E)	3774
of section 5747.055 of the Revised Code;	3775

(h) The credit for displaced workers who pay for job training	3776
under section 5747.27 of the Revised Code;	3777

(i) The twenty-dollar personal exemption credit under section	3778
5747.022 of the Revised Code;	3779

(j) The joint filing credit under division (G) of section	3780
5747.05 of the Revised Code;	3781

(k) The nonresident credit under division (A) of section	3782
5747.05 of the Revised Code;	3783

(l) The credit for a resident's out-of-state income under	3784
division (B) of section 5747.05 of the Revised Code;	3785

(m) The low-income credit under section 5747.056 of the	3786
Revised Code;	3787

(n) The earned income tax credit under section 5747.71 of the	3788
Revised Code.	3789

(3) The election provided for under division (D) of this	3790
section applies only to the taxable year for which the election is	3791
made by the pass-through entity. Unless the tax commissioner	3792
provides otherwise, this election, once made, is binding and	3793
irrevocable for the taxable year for which the election is made.	3794
Nothing in this division shall be construed to provide for any	3795
deduction or credit that would not be allowable if a nonresident	3796
pass-through entity investor were to file an annual return.	3797

(4) If a pass-through entity makes the election provided for	3798
under division (D) of this section, the pass-through entity shall	3799
be liable for any additional taxes, interest, interest penalty, or	3800
penalties imposed by this chapter if the tax commissioner finds	3801
that the single return does not reflect the correct tax due by the	3802
pass-through entity investors covered by that return. Nothing in	3803
this division shall be construed to limit or alter the liability,	3804
if any, imposed on pass-through entity investors for unpaid or	3805
underpaid taxes, interest, interest penalty, or penalties as a	3806
result of the pass-through entity's making the election provided	3807
for under division (D) of this section. For the purposes of	3808
division (D) of this section, "correct tax due" means the tax that	3809
would have been paid by the pass-through entity had the single	3810
return been filed in a manner reflecting the commissioner's	3811
findings. Nothing in division (D) of this section shall be	3812
construed to make or hold a pass-through entity liable for tax	3813
attributable to a pass-through entity investor's income from a	3814
source other than the pass-through entity electing to file the	3815
single return.	3816

(E) If a husband and wife file a joint federal income tax	3817
return for a taxable year, they shall file a joint return under	3818
this section for that taxable year, and their liabilities are	3819
joint and several, but, if the federal income tax liability of	3820
either spouse is determined on a separate federal income tax	3821
return, they shall file separate returns under this section.	3822

If either spouse is not required to file a federal income tax	3823
return and either or both are required to file a return pursuant	3824
to this chapter, they may elect to file separate or joint returns,	3825
and, pursuant to that election, their liabilities are separate or	3826
joint and several. If a husband and wife file separate returns	3827
pursuant to this chapter, each must claim the taxpayer's own	3828
exemption, but not both, as authorized under section 5747.02 of	3829
the Revised Code on the taxpayer's own return.	3830

(F) Each return or notice required to be filed under this	3831
section shall contain the signature of the taxpayer or the	3832
taxpayer's duly authorized agent and of the person who prepared	3833
the return for the taxpayer, and shall include the taxpayer's	3834
social security number. Each return shall be verified by a	3835
declaration under the penalties of perjury. The tax commissioner	3836
shall prescribe the form that the signature and declaration shall	3837
take.	3838

(G) Each return or notice required to be filed under this	3839
section shall be made and filed as required by section 5747.04 of	3840
the Revised Code, on or before the fifteenth day of April of each	3841
year, on forms that the tax commissioner shall prescribe, together	3842
with remittance made payable to the treasurer of state in the	3843
combined amount of the state and all school district income taxes	3844
shown to be due on the form.	3845

Upon good cause shown, the commissioner may extend the period	3846
for filing any notice or return required to be filed under this	3847
section and may adopt rules relating to extensions. If the	3848
extension results in an extension of time for the payment of any	3849
state or school district income tax liability with respect to	3850
which the return is filed, the taxpayer shall pay at the time the	3851
tax liability is paid an amount of interest computed at the rate	3852
per annum prescribed by section 5703.47 of the Revised Code on	3853
that liability from the time that payment is due without extension	3854
to the time of actual payment. Except as provided in section	3855
5747.132 of the Revised Code, in addition to all other interest	3856
charges and penalties, all taxes imposed under this chapter or	3857
Chapter 5748. of the Revised Code and remaining unpaid after they	3858
become due, except combined amounts due of one dollar or less,	3859
bear interest at the rate per annum prescribed by section 5703.47	3860
of the Revised Code until paid or until the day an assessment is	3861
issued under section 5747.13 of the Revised Code, whichever occurs	3862
first.	3863

If the commissioner considers it necessary in order to ensure	3864
the payment of the tax imposed by section 5747.02 of the Revised	3865
Code or any tax imposed under Chapter 5748. of the Revised Code,	3866
the commissioner may require returns and payments to be made	3867
otherwise than as provided in this section.	3868

To the extent that any provision in this division conflicts	3869
with any provision in section 5747.026 of the Revised Code, the	3870
provision in that section prevails.	3871

(H) If any report, claim, statement, or other document	3872
required to be filed, or any payment required to be made, within a	3873
prescribed period or on or before a prescribed date under this	3874
chapter is delivered after that period or that date by United	3875
States mail to the agency, officer, or office with which the	3876
report, claim, statement, or other document is required to be	3877
filed, or to which the payment is required to be made, the date of	3878
the postmark stamped on the cover in which the report, claim,	3879
statement, or other document, or payment is mailed shall be deemed	3880
to be the date of delivery or the date of payment.	3881

If a payment is required to be made by electronic funds	3882
transfer pursuant to section 5747.072 of the Revised Code, the	3883
payment is considered to be made when the payment is received by	3884
the treasurer of state or credited to an account designated by the	3885
treasurer of state for the receipt of tax payments.	3886

"The date of the postmark" means, in the event there is more	3887
than one date on the cover, the earliest date imprinted on the	3888
cover by the United States postal service.	3889

(I) The amounts withheld by an employer pursuant to section	3890
5747.06 of the Revised Code, a casino operator pursuant to section	3891
5747.063 of the Revised Code, or a lottery sales agent pursuant to	3892
section 5747.064 of the Revised Code shall be allowed to the	3893
recipient of the compensation casino winnings, or lottery prize	3894
award as credits against payment of the appropriate taxes imposed	3895
on the recipient by section 5747.02 and under Chapter 5748. of the	3896
Revised Code.	3897

(J)(I) If a pass-through entity elects to file a single	3898
return under division (D) of this section and if any investor is	3899
required to file the annual return and make the payment of taxes	3900
required by this chapter on account of the investor's other income	3901
that is not included in a single return filed by a pass-through	3902
entity or any other investor elects to file the annual return, the	3903
investor is entitled to a refundable credit equal to the	3904
investor's proportionate share of the tax paid by the pass-through	3905
entity on behalf of the investor. The investor shall claim the	3906
credit for the investor's taxable year in which or with which ends	3907
the taxable year of the pass-through entity. Nothing in this	3908
chapter shall be construed to allow any credit provided in this	3909
chapter to be claimed more than once. For the purpose of computing	3910
any interest, penalty, or interest penalty, the investor shall be	3911
deemed to have paid the refundable credit provided by this	3912
division on the day that the pass-through entity paid the	3913
estimated tax or the tax giving rise to the credit.	3914

(K)(J) The tax commissioner shall ensure that each return	3915
required to be filed under this section includes a box that the	3916
taxpayer may check to authorize a paid tax preparer who prepared	3917
the return to communicate with the department of taxation about	3918
matters pertaining to the return. The return or instructions	3919
accompanying the return shall indicate that by checking the box	3920
the taxpayer authorizes the department of taxation to contact the	3921
preparer concerning questions that arise during the processing of	3922
the return and authorizes the preparer only to provide the	3923
department with information that is missing from the return, to	3924
contact the department for information about the processing of the	3925
return or the status of the taxpayer's refund or payments, and to	3926
respond to notices about mathematical errors, offsets, or return	3927
preparation that the taxpayer has received from the department and	3928
has shown to the preparer.	3929

(L)(K) The tax commissioner shall permit individual taxpayers	3930
to instruct the department of taxation to cause any refund of	3931
overpaid taxes to be deposited directly into a checking account,	3932
savings account, or an individual retirement account or individual	3933
retirement annuity, or preexisting college savings plan or program	3934
account offered by the Ohio tuition trust authority under Chapter	3935
3334. of the Revised Code, as designated by the taxpayer, when the	3936
taxpayer files the annual return required by this section	3937
electronically.	3938

(M)(L) The tax commissioner may adopt rules to administer	3939
this section.	3940

Sec. 5747.98.  (A) To provide a uniform procedure for	3941
calculating the amount of tax due under section 5747.02 of the	3942
Revised Code, a taxpayer shall claim any credits to which the	3943
taxpayer is entitled in the following order:	3944

(1) The retirement income credit under division (B) of	3945
section 5747.055 of the Revised Code;	3946

(2) The senior citizen credit under division (C) of section	3947
5747.05 of the Revised Code;	3948

(3) The lump sum distribution credit under division (D) of	3949
section 5747.05 of the Revised Code;	3950

(4) The dependent care credit under section 5747.054 of the	3951
Revised Code;	3952

(5) The lump sum retirement income credit under division (C)	3953
of section 5747.055 of the Revised Code;	3954

(6) The lump sum retirement income credit under division (D)	3955
of section 5747.055 of the Revised Code;	3956

(7) The lump sum retirement income credit under division (E)	3957
of section 5747.055 of the Revised Code;	3958

(8) The low-income credit under section 5747.056 of the	3959
Revised Code;	3960

(9) The credit for displaced workers who pay for job training	3961
under section 5747.27 of the Revised Code;	3962

(10) The campaign contribution credit under section 5747.29	3963
of the Revised Code;	3964

(11) The twenty-dollar personal exemption credit under	3965
section 5747.022 of the Revised Code;	3966

(12) The joint filing credit under division (G) of section	3967
5747.05 of the Revised Code;	3968

(13) The nonresident credit under division (A) of section	3969
5747.05 of the Revised Code;	3970

(14) The credit for a resident's out-of-state income under	3971
division (B) of section 5747.05 of the Revised Code;	3972

(15) The earned income credit under section 5747.71 of the	3973
Revised Code;	3974

(16) The credit for employers that reimburse employee child	3975
care expenses under section 5747.36 of the Revised Code;	3976

(17) The credit for adoption of a minor child under section	3977
5747.37 of the Revised Code;	3978

(18) The credit for purchases of lights and reflectors under	3979
section 5747.38 of the Revised Code;	3980

(19) The nonrefundable job retention credit under division	3981
(B) of section 5747.058 of the Revised Code;	3982

(20) The credit for selling alternative fuel under section	3983
5747.77 of the Revised Code;	3984

(21) The second credit for purchases of new manufacturing	3985
machinery and equipment and the credit for using Ohio coal under	3986
section 5747.31 of the Revised Code;	3987

(22) The job training credit under section 5747.39 of the	3988
Revised Code;	3989

(23) The enterprise zone credit under section 5709.66 of the	3990
Revised Code;	3991

(24) The credit for the eligible costs associated with a	3992
voluntary action under section 5747.32 of the Revised Code;	3993

(25) The credit for employers that establish on-site child	3994
day-care centers under section 5747.35 of the Revised Code;	3995

(26) The ethanol plant investment credit under section	3996
5747.75 of the Revised Code;	3997

(27) The credit for purchases of qualifying grape production	3998
property under section 5747.28 of the Revised Code;	3999

(28) The small business investment credit under section	4000
5747.81 of the Revised Code;	4001

(29) The enterprise zone credits under section 5709.65 of the	4002
Revised Code;	4003

(30) The research and development credit under section	4004
5747.331 of the Revised Code;	4005

(31) The credit for rehabilitating a historic building under	4006
section 5747.76 of the Revised Code;	4007

(32) The refundable credit for rehabilitating a historic	4008
building under section 5747.76 of the Revised Code;	4009

(33) The refundable jobs creation credit or job retention	4010
credit under division (A) of section 5747.058 of the Revised Code;	4011

(34) The refundable credit for taxes paid by a qualifying	4012
entity granted under section 5747.059 of the Revised Code;	4013

(35) The refundable credits for taxes paid by a qualifying	4014
pass-through entity granted under division (J)(I) of section	4015
5747.08 of the Revised Code;	4016

(36) The refundable credit under section 5747.80 of the	4017
Revised Code for losses on loans made to the Ohio venture capital	4018
program under sections 150.01 to 150.10 of the Revised Code;	4019

(37) The refundable motion picture production credit under	4020
section 5747.66 of the Revised Code.;	4021

(38) The refundable credit for financial institution taxes	4022
paid by a pass-through entity granted under section 5747.65 of the	4023
Revised Code.	4024

(B) For any credit, except the refundable credits enumerated	4025
in this section and the credit granted under division (I)(H) of	4026
section 5747.08 of the Revised Code, the amount of the credit for	4027
a taxable year shall not exceed the tax due after allowing for any	4028
other credit that precedes it in the order required under this	4029
section. Any excess amount of a particular credit may be carried	4030
forward if authorized under the section creating that credit.	4031
Nothing in this chapter shall be construed to allow a taxpayer to	4032
claim, directly or indirectly, a credit more than once for a	4033
taxable year.	4034

Sec. 5751.01.  As used in this chapter:

4035

(A) "Person" means, but is not limited to, individuals,	4036
combinations of individuals of any form, receivers, assignees,	4037
trustees in bankruptcy, firms, companies, joint-stock companies,	4038
business trusts, estates, partnerships, limited liability	4039
partnerships, limited liability companies, associations, joint	4040
ventures, clubs, societies, for-profit corporations, S	4041
corporations, qualified subchapter S subsidiaries, qualified	4042
subchapter S trusts, trusts, entities that are disregarded for	4043
federal income tax purposes, and any other entities.	4044

(B) "Consolidated elected taxpayer" means a group of two or	4045
more persons treated as a single taxpayer for purposes of this	4046
chapter as the result of an election made under section 5751.011	4047
of the Revised Code.	4048

(C) "Combined taxpayer" means a group of two or more persons	4049
treated as a single taxpayer for purposes of this chapter under	4050
section 5751.012 of the Revised Code.	4051

(D) "Taxpayer" means any person, or any group of persons in	4052
the case of a consolidated elected taxpayer or combined taxpayer	4053
treated as one taxpayer, required to register or pay tax under	4054
this chapter. "Taxpayer" does not include excluded persons.	4055

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

4056

(1) Any person with not more than one hundred fifty thousand	4057
dollars of taxable gross receipts during the calendar year.	4058
Division (E)(1) of this section does not apply to a person that is	4059
a member of a consolidated elected taxpayer;	4060

(2) A public utility that paid the excise tax imposed by	4061
section 5727.24 or 5727.30 of the Revised Code based on one or	4062
more measurement periods that include the entire tax period under	4063
this chapter, except that a public utility that is a combined	4064
company is a taxpayer with regard to the following gross receipts:	4065

(a) Taxable gross receipts directly attributed to a public	4066
utility activity, but not directly attributed to an activity that	4067
is subject to the excise tax imposed by section 5727.24 or 5727.30	4068
of the Revised Code;	4069

(b) Taxable gross receipts that cannot be directly attributed	4070
to any activity, multiplied by a fraction whose numerator is the	4071
taxable gross receipts described in division (E)(2)(a) of this	4072
section and whose denominator is the total taxable gross receipts	4073
that can be directly attributed to any activity;	4074

(c) Except for any differences resulting from the use of an	4075
accrual basis method of accounting for purposes of determining	4076
gross receipts under this chapter and the use of the cash basis	4077
method of accounting for purposes of determining gross receipts	4078
under section 5727.24 of the Revised Code, the gross receipts	4079
directly attributed to the activity of a natural gas company shall	4080
be determined in a manner consistent with division (D) of section	4081
5727.03 of the Revised Code.	4082

As used in division (E)(2) of this section, "combined	4083
company" and "public utility" have the same meanings as in section	4084
5727.01 of the Revised Code.	4085

(3) A financial institution, as defined in section 5726.01 of	4086
the Revised Code, that paid the tax imposed by section 5726.02 of	4087
the Revised Code based on one or more taxable years that include	4088
the entire tax period under this chapter;	4089

(4) A person directly or indirectly owned by one or more	4090
financial institutions, as defined in section 5726.01 of the	4091
Revised Code, that paid the tax imposed by section 5726.02 of the	4092
Revised Code based on one or more taxable years that include the	4093
entire tax period under this chapter.	4094

For the purposes of division (E)(4) of this section, a person	4095
owns another person under the following circumstances:	4096

(a) In the case of corporations issuing capital stock, one	4097
corporation owns another corporation if it owns fifty per cent or	4098
more of the other corporation's capital stock with current voting	4099
rights;	4100

(b) In the case of a limited liability company, one person	4101
owns the company if that person's membership interest, as defined	4102
in section 1705.01 of the Revised Code, is fifty per cent or more	4103
of the combined membership interests of all persons owning such	4104
interests in the company;	4105

(c) In the case of a partnership, trust, or other	4106
unincorporated business organization other than a limited	4107
liability company, one person owns the organization if, under the	4108
articles of organization or other instrument governing the affairs	4109
of the organization, that person has a beneficial interest in the	4110
organization's profits, surpluses, losses, or distributions of	4111
fifty per cent or more of the combined beneficial interests of all	4112
persons having such an interest in the organization.	4113

(5) A domestic insurance company or foreign insurance	4114
company, as defined in section 5725.01 of the Revised Code, that	4115
paid the insurance company premiums tax imposed by section 5725.18	4116
or Chapter 5729. of the Revised Code, or an unauthorized insurance	4117
company whose gross premiums are subject to tax under section	4118
3905.36 of the Revised Code based on one or more measurement	4119
periods that include the entire tax period under this chapter;	4120

(6) A person that solely facilitates or services one or more	4121
securitizations of phase-in-recovery property pursuant to a final	4122
financing order as those terms are defined in section 4928.23 of	4123
the Revised Code. For purposes of this division, "securitization"	4124
means transferring one or more assets to one or more persons and	4125
then issuing securities backed by the right to receive payment	4126
from the asset or assets so transferred.	4127

(7) Except as otherwise provided in this division, a	4128
pre-income tax trust as defined in division (FF)(4) of section	4129
5747.01 of the Revised Code and any pass-through entity of which	4130
such pre-income tax trust owns or controls, directly, indirectly,	4131
or constructively through related interests, more than five per	4132
cent of the ownership or equity interests. If the pre-income tax	4133
trust has made a qualifying pre-income tax trust election under	4134
division (FF)(3) of section 5747.01 of the Revised Code, then the	4135
trust and the pass-through entities of which it owns or controls,	4136
directly, indirectly, or constructively through related interests,	4137
more than five per cent of the ownership or equity interests,	4138
shall not be excluded persons for purposes of the tax imposed	4139
under section 5751.02 of the Revised Code.	4140

(8) Nonprofit organizations or the state and its agencies,	4141
instrumentalities, or political subdivisions.	4142

(F) Except as otherwise provided in divisions (F)(2), (3),	4143
and (4) of this section, "gross receipts" means the total amount	4144
realized by a person, without deduction for the cost of goods sold	4145
or other expenses incurred, that contributes to the production of	4146
gross income of the person, including the fair market value of any	4147
property and any services received, and any debt transferred or	4148
forgiven as consideration.	4149

(1) The following are examples of gross receipts:

4150

(a) Amounts realized from the sale, exchange, or other	4151
disposition of the taxpayer's property to or with another;	4152

(b) Amounts realized from the taxpayer's performance of	4153
services for another;	4154

(c) Amounts realized from another's use or possession of the	4155
taxpayer's property or capital;	4156

(d) Any combination of the foregoing amounts.

4157

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

4158

(a) Interest income except interest on credit sales;

4159

(b) Dividends and distributions from corporations, and	4160
distributive or proportionate shares of receipts and income from a	4161
pass-through entity as defined under section 5733.04 of the	4162
Revised Code;	4163

(c) Receipts from the sale, exchange, or other disposition of	4164
an asset described in section 1221 or 1231 of the Internal Revenue	4165
Code, without regard to the length of time the person held the	4166
asset. Notwithstanding section 1221 of the Internal Revenue Code,	4167
receipts from hedging transactions also are excluded to the extent	4168
the transactions are entered into primarily to protect a financial	4169
position, such as managing the risk of exposure to (i) foreign	4170
currency fluctuations that affect assets, liabilities, profits,	4171
losses, equity, or investments in foreign operations; (ii)	4172
interest rate fluctuations; or (iii) commodity price fluctuations.	4173
As used in division (F)(2)(c) of this section, "hedging	4174
transaction" has the same meaning as used in section 1221 of the	4175
Internal Revenue Code and also includes transactions accorded	4176
hedge accounting treatment under statement of financial accounting	4177
standards number 133 of the financial accounting standards board.	4178
For the purposes of division (F)(2)(c) of this section, the actual	4179
transfer of title of real or tangible personal property to another	4180
entity is not a hedging transaction.	4181

(d) Proceeds received attributable to the repayment,	4182
maturity, or redemption of the principal of a loan, bond, mutual	4183
fund, certificate of deposit, or marketable instrument;	4184

(e) The principal amount received under a repurchase	4185
agreement or on account of any transaction properly characterized	4186
as a loan to the person;	4187

(f) Contributions received by a trust, plan, or other	4188
arrangement, any of which is described in section 501(a) of the	4189
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	4190
1, Subchapter (D) of the Internal Revenue Code applies;	4191

(g) Compensation, whether current or deferred, and whether in	4192
cash or in kind, received or to be received by an employee, former	4193
employee, or the employee's legal successor for services rendered	4194
to or for an employer, including reimbursements received by or for	4195
an individual for medical or education expenses, health insurance	4196
premiums, or employee expenses, or on account of a dependent care	4197
spending account, legal services plan, any cafeteria plan	4198
described in section 125 of the Internal Revenue Code, or any	4199
similar employee reimbursement;	4200

(h) Proceeds received from the issuance of the taxpayer's own	4201
stock, options, warrants, puts, or calls, or from the sale of the	4202
taxpayer's treasury stock;	4203

(i) Proceeds received on the account of payments from	4204
insurance policies, except those proceeds received for the loss of	4205
business revenue;	4206

(j) Gifts or charitable contributions received; membership	4207
dues received by trade, professional, homeowners', or condominium	4208
associations; and payments received for educational courses,	4209
meetings, meals, or similar payments to a trade, professional, or	4210
other similar association; and fundraising receipts received by	4211
any person when any excess receipts are donated or used	4212
exclusively for charitable purposes;	4213

(k) Damages received as the result of litigation in excess of	4214
amounts that, if received without litigation, would be gross	4215
receipts;	4216

(l) Property, money, and other amounts received or acquired	4217
by an agent on behalf of another in excess of the agent's	4218
commission, fee, or other remuneration;	4219

(m) Tax refunds, other tax benefit recoveries, and	4220
reimbursements for the tax imposed under this chapter made by	4221
entities that are part of the same combined taxpayer or	4222
consolidated elected taxpayer group, and reimbursements made by	4223
entities that are not members of a combined taxpayer or	4224
consolidated elected taxpayer group that are required to be made	4225
for economic parity among multiple owners of an entity whose tax	4226
obligation under this chapter is required to be reported and paid	4227
entirely by one owner, pursuant to the requirements of sections	4228
5751.011 and 5751.012 of the Revised Code;	4229

(n) Pension reversions;

4230

(o) Contributions to capital;

4231

(p) Sales or use taxes collected as a vendor or an	4232
out-of-state seller on behalf of the taxing jurisdiction from a	4233
consumer or other taxes the taxpayer is required by law to collect	4234
directly from a purchaser and remit to a local, state, or federal	4235
tax authority;	4236

(q) In the case of receipts from the sale of cigarettes or	4237
tobacco products by a wholesale dealer, retail dealer,	4238
distributor, manufacturer, or seller, all as defined in section	4239
5743.01 of the Revised Code, an amount equal to the federal and	4240
state excise taxes paid by any person on or for such cigarettes or	4241
tobacco products under subtitle E of the Internal Revenue Code or	4242
Chapter 5743. of the Revised Code;	4243

(r) ReceiptsIn the case of receipts from the sale, transfer,	4244
exchange, or other disposition of motor fuel as "motor fuel" is	4245
defined in section 5736.01 of the Revised Code, an amount equal to	4246
the value of the motor fuel, including federal and state motor	4247
fuel excise taxes and receipts from billing or invoicing the tax	4248
imposed under section 5736.02 of the Revised Code to another	4249
person;	4250

(s) In the case of receipts from the sale of beer or	4251
intoxicating liquor, as defined in section 4301.01 of the Revised	4252
Code, by a person holding a permit issued under Chapter 4301. or	4253
4303. of the Revised Code, an amount equal to federal and state	4254
excise taxes paid by any person on or for such beer or	4255
intoxicating liquor under subtitle E of the Internal Revenue Code	4256
or Chapter 4301. or 4305. of the Revised Code;	4257

(t) Receipts realized by a new motor vehicle dealer or used	4258
motor vehicle dealer, as defined in section 4517.01 of the Revised	4259
Code, from the sale or other transfer of a motor vehicle, as	4260
defined in that section, to another motor vehicle dealer for the	4261
purpose of resale by the transferee motor vehicle dealer, but only	4262
if the sale or other transfer was based upon the transferee's need	4263
to meet a specific customer's preference for a motor vehicle;	4264

(u) Receipts from a financial institution described in	4265
division (E)(3) of this section for services provided to the	4266
financial institution in connection with the issuance, processing,	4267
servicing, and management of loans or credit accounts, if such	4268
financial institution and the recipient of such receipts have at	4269
least fifty per cent of their ownership interests owned or	4270
controlled, directly or constructively through related interests,	4271
by common owners;	4272

(v) Receipts realized from administering anti-neoplastic	4273
drugs and other cancer chemotherapy, biologicals, therapeutic	4274
agents, and supportive drugs in a physician's office to patients	4275
with cancer;	4276

(w) Funds received or used by a mortgage broker that is not a	4277
dealer in intangibles, other than fees or other consideration,	4278
pursuant to a table-funding mortgage loan or warehouse-lending	4279
mortgage loan. Terms used in division (F)(2)(w) of this section	4280
have the same meanings as in section 1322.01 of the Revised Code,	4281
except "mortgage broker" means a person assisting a buyer in	4282
obtaining a mortgage loan for a fee or other consideration paid by	4283
the buyer or a lender, or a person engaged in table-funding or	4284
warehouse-lending mortgage loans that are first lien mortgage	4285
loans.	4286

(x) Property, money, and other amounts received by a	4287
professional employer organization, as defined in section 4125.01	4288
of the Revised Code, from a client employer, as defined in that	4289
section, in excess of the administrative fee charged by the	4290
professional employer organization to the client employer;	4291

(y) In the case of amounts retained as commissions by a	4292
permit holder under Chapter 3769. of the Revised Code, an amount	4293
equal to the amounts specified under that chapter that must be	4294
paid to or collected by the tax commissioner as a tax and the	4295
amounts specified under that chapter to be used as purse money;	4296

(z) Qualifying distribution center receipts.

4297

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

4298

(I) "Qualifying distribution center receipts" means receipts	4299
of a supplier from qualified property that is delivered to a	4300
qualified distribution center, multiplied by a quantity that	4301
equals one minus the Ohio delivery percentage. If the qualified	4302
distribution center is a refining facility, "supplier" includes	4303
all dealers, brokers, processors, sellers, vendors, cosigners, and	4304
distributors of qualified property.	4305

(II) "Qualified property" means tangible personal property	4306
delivered to a qualified distribution center that is shipped to	4307
that qualified distribution center solely for further shipping by	4308
the qualified distribution center to another location in this	4309
state or elsewhere or, in the case of gold, silver, platinum, or	4310
palladium delivered to a refining facility solely for refining to	4311
a grade and fineness acceptable for delivery to a registered	4312
commodities exchange. "Further shipping" includes storing and	4313
repackaging property into smaller or larger bundles, so long as	4314
the property is not subject to further manufacturing or	4315
processing. "Refining" is limited to extracting impurities from	4316
gold, silver, platinum, or palladium through smelting or some	4317
other process at a refining facility.	4318

(III) "Qualified distribution center" means a warehouse, a	4319
facility similar to a warehouse, or a refining facility in this	4320
state that, for the qualifying year, is operated by a person that	4321
is not part of a combined taxpayer group and that has a qualifying	4322
certificate. All warehouses or facilities similar to warehouses	4323
that are operated by persons in the same taxpayer group and that	4324
are located within one mile of each other shall be treated as one	4325
qualified distribution center. All refining facilities that are	4326
operated by persons in the same taxpayer group and that are	4327
located in the same or adjacent counties may be treated as one	4328
qualified distribution center.	4329

(IV) "Qualifying year" means the calendar year to which the	4330
qualifying certificate applies.	4331

(V) "Qualifying period" means the period of the first day of	4332
July of the second year preceding the qualifying year through the	4333
thirtieth day of June of the year preceding the qualifying year.	4334

(VI) "Qualifying certificate" means the certificate issued by	4335
the tax commissioner after the operator of a distribution center	4336
files an annual application with the commissioner. The application	4337
and annual fee shall be filed and paid for each qualified	4338
distribution center on or before the first day of September before	4339
the qualifying year or within forty-five days after the	4340
distribution center opens, whichever is later.	4341

The applicant must substantiate to the commissioner's	4342
satisfaction that, for the qualifying period, all persons	4343
operating the distribution center have more than fifty per cent of	4344
the cost of the qualified property shipped to a location such that	4345
it would be sitused outside this state under the provisions of	4346
division (E) of section 5751.033 of the Revised Code. The	4347
applicant must also substantiate that the distribution center	4348
cumulatively had costs from its suppliers equal to or exceeding	4349
five hundred million dollars during the qualifying period. (For	4350
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	4351
excludes any person that is part of the consolidated elected	4352
taxpayer group, if applicable, of the operator of the qualified	4353
distribution center.) The commissioner may require the applicant	4354
to have an independent certified public accountant certify that	4355
the calculation of the minimum thresholds required for a qualified	4356
distribution center by the operator of a distribution center has	4357
been made in accordance with generally accepted accounting	4358
principles. The commissioner shall issue or deny the issuance of a	4359
certificate within sixty days after the receipt of the	4360
application. A denial is subject to appeal under section 5717.02	4361
of the Revised Code. If the operator files a timely appeal under	4362
section 5717.02 of the Revised Code, the operator shall be granted	4363
a qualifying certificate effective for the remainder of the	4364
qualifying year or until the appeal is finalized, whichever is	4365
earlier. If the operator does not prevail in the appeal, the	4366
operator shall pay the ineligible operator's supplier tax	4367
liability.	4368

(VII) "Ohio delivery percentage" means the proportion of the	4369
total property delivered to a destination inside Ohio from the	4370
qualified distribution center during the qualifying period	4371
compared with total deliveries from such distribution center	4372
everywhere during the qualifying period.	4373

(VIII) "Refining facility" means one or more buildings	4374
located in a county in the Appalachian region of this state as	4375
defined by section 107.21 of the Revised Code and utilized for	4376
refining or smelting gold, silver, platinum, or palladium to a	4377
grade and fineness acceptable for delivery to a registered	4378
commodities exchange.	4379

(IX) "Registered commodities exchange" means a board of	4380
trade, such as New York mercantile exchange, inc. or commodity	4381
exchange, inc., designated as a contract market by the commodity	4382
futures trading commission under the "Commodity Exchange Act," 7	4383
U.S.C. 1 et seq., as amended.	4384

(X) "Ineligible operator's supplier tax liability" means an	4385
amount equal to the tax liability of all suppliers of a	4386
distribution center had the distribution center not been issued a	4387
qualifying certificate for the qualifying year. Ineligible	4388
operator's supplier tax liability shall not include interest or	4389
penalties. The tax commissioner shall determine an ineligible	4390
operator's supplier tax liability based on information that the	4391
commissioner may request from the operator of the distribution	4392
center. An operator shall provide a list of all suppliers of the	4393
distribution center and the corresponding costs of qualified	4394
property for the qualifying year at issue within sixty days of a	4395
request by the commissioner under this division.	4396

(ii)(I) If the distribution center is new and was not open	4397
for the entire qualifying period, the operator of the distribution	4398
center may request that the commissioner grant a qualifying	4399
certificate. If the certificate is granted and it is later	4400
determined that more than fifty per cent of the qualified property	4401
during that year was not shipped to a location such that it would	4402
be sitused outside of this state under the provisions of division	4403
(E) of section 5751.033 of the Revised Code or if it is later	4404
determined that the person that operates the distribution center	4405
had average monthly costs from its suppliers of less than forty	4406
million dollars during that year, then the operator of the	4407
distribution center shall pay the ineligible operator's supplier	4408
tax liability. (For purposes of division (F)(2)(z)(ii) of this	4409
section, "supplier" excludes any person that is part of the	4410
consolidated elected taxpayer group, if applicable, of the	4411
operator of the qualified distribution center.)	4412

(II) The commissioner may grant a qualifying certificate to a	4413
distribution center that does not qualify as a qualified	4414
distribution center for an entire qualifying period if the	4415
operator of the distribution center demonstrates that the business	4416
operations of the distribution center have changed or will change	4417
such that the distribution center will qualify as a qualified	4418
distribution center within thirty-six months after the date the	4419
operator first applies for a certificate. If, at the end of that	4420
thirty-six-month period, the business operations of the	4421
distribution center have not changed such that the distribution	4422
center qualifies as a qualified distribution center, the operator	4423
of the distribution center shall pay the ineligible operator's	4424
supplier tax liability for each year that the distribution center	4425
received a certificate but did not qualify as a qualified	4426
distribution center. For each year the distribution center	4427
receives a certificate under division (F)(2)(z)(ii)(II) of this	4428
section, the distribution center shall pay all applicable fees	4429
required under division (F)(2)(z) of this section and shall submit	4430
an updated business plan showing the progress the distribution	4431
center made toward qualifying as a qualified distribution center	4432
during the preceding year.	4433

(III) An operator may appeal a determination under division	4434
(F)(2)(z)(ii)(I) or (II) of this section that the ineligible	4435
operator is liable for the operator's supplier tax liability as a	4436
result of not qualifying as a qualified distribution center, as	4437
provided in section 5717.02 of the Revised Code.	4438

(iii) When filing an application for a qualifying certificate	4439
under division (F)(2)(z)(i)(VI) of this section, the operator of a	4440
qualified distribution center also shall provide documentation, as	4441
the commissioner requires, for the commissioner to ascertain the	4442
Ohio delivery percentage. The commissioner, upon issuing the	4443
qualifying certificate, also shall certify the Ohio delivery	4444
percentage. The operator of the qualified distribution center may	4445
appeal the commissioner's certification of the Ohio delivery	4446
percentage in the same manner as an appeal is taken from the	4447
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	4448
of this section.	4449

(iv)(I) In the case where the distribution center is new and	4450
not open for the entire qualifying period, the operator shall make	4451
a good faith estimate of an Ohio delivery percentage for use by	4452
suppliers in their reports of taxable gross receipts for the	4453
remainder of the qualifying period. The operator of the facility	4454
shall disclose to the suppliers that such Ohio delivery percentage	4455
is an estimate and is subject to recalculation. By the due date of	4456
the next application for a qualifying certificate, the operator	4457
shall determine the actual Ohio delivery percentage for the	4458
estimated qualifying period and proceed as provided in division	4459
(F)(2)(z)(iii) of this section with respect to the calculation and	4460
recalculation of the Ohio delivery percentage. The supplier is	4461
required to file, within sixty days after receiving notice from	4462
the operator of the qualified distribution center, amended reports	4463
for the impacted calendar quarter or quarters or calendar year,	4464
whichever the case may be. Any additional tax liability or tax	4465
overpayment shall be subject to interest but shall not be subject	4466
to the imposition of any penalty so long as the amended returns	4467
are timely filed.	4468

(II) The operator of a distribution center that receives a	4469
qualifying certificate under division (F)(2)(z)(ii)(II) of this	4470
section shall make a good faith estimate of the Ohio delivery	4471
percentage that the operator estimates will apply to the	4472
distribution center at the end of the thirty-six-month period	4473
after the operator first applied for a qualifying certificate	4474
under that division. The result of the estimate shall be	4475
multiplied by a factor of one and seventy-five one-hundredths. The	4476
product of that calculation shall be the Ohio delivery percentage	4477
used by suppliers in their reports of taxable gross receipts for	4478
each qualifying year that the distribution center receives a	4479
qualifying certificate under division (F)(2)(z)(ii)(II) of this	4480
section, except that, if the product is less than five per cent,	4481
the Ohio delivery percentage used shall be five per cent and that,	4482
if the product exceeds forty-nine per cent, the Ohio delivery	4483
percentage used shall be forty-nine per cent.	4484

(v) Qualifying certificates and Ohio delivery percentages	4485
issued by the commissioner shall be open to public inspection and	4486
shall be timely published by the commissioner. A supplier relying	4487
in good faith on a certificate issued under this division shall	4488
not be subject to tax on the qualifying distribution center	4489
receipts under division (F)(2)(z) of this section. An operator	4490
receiving a qualifying certificate is liable for the ineligible	4491
operator's supplier tax liability for each year the operator	4492
received a certificate but did not qualify as a qualified	4493
distribution center.	4494

(vi) The annual fee for a qualifying certificate shall be one	4495
hundred thousand dollars for each qualified distribution center.	4496
If a qualifying certificate is not issued, the annual fee is	4497
subject to refund after the exhaustion of all appeals provided for	4498
in division (F)(2)(z)(i)(VI) of this section. The first one	4499
hundred thousand dollars of the annual application fees collected	4500
each calendar year shall be credited to the revenue enhancement	4501
fund. The remainder of the annual application fees collected shall	4502
be distributed in the same manner required under section 5751.20	4503
of the Revised Code.	4504

(vii) The tax commissioner may require that adequate security	4505
be posted by the operator of the distribution center on appeal	4506
when the commissioner disagrees that the applicant has met the	4507
minimum thresholds for a qualified distribution center as set	4508
forth in division (F)(2)(z) of this section.	4509

(aa) Receipts of an employer from payroll deductions relating	4510
to the reimbursement of the employer for advancing moneys to an	4511
unrelated third party on an employee's behalf;	4512

(bb) Cash discounts allowed and taken;

4513

(cc) Returns and allowances;

4514

(dd) Bad debts from receipts on the basis of which the tax	4515
imposed by this chapter was paid in a prior quarterly tax payment	4516
period. For the purpose of this division, "bad debts" means any	4517
debts that have become worthless or uncollectible between the	4518
preceding and current quarterly tax payment periods, have been	4519
uncollected for at least six months, and that may be claimed as a	4520
deduction under section 166 of the Internal Revenue Code and the	4521
regulations adopted under that section, or that could be claimed	4522
as such if the taxpayer kept its accounts on the accrual basis.	4523
"Bad debts" does not include repossessed property, uncollectible	4524
amounts on property that remains in the possession of the taxpayer	4525
until the full purchase price is paid, or expenses in attempting	4526
to collect any account receivable or for any portion of the debt	4527
recovered;	4528

(ee) Any amount realized from the sale of an account	4529
receivable to the extent the receipts from the underlying	4530
transaction giving rise to the account receivable were included in	4531
the gross receipts of the taxpayer;	4532

(ff) Any receipts directly attributed to a transfer agreement	4533
or to the enterprise transferred under that agreement under	4534
section 4313.02 of the Revised Code.	4535

(gg)(i) As used in this division:

4536

(I) "Qualified uranium receipts" means receipts from the	4537
sale, exchange, lease, loan, production, processing, or other	4538
disposition of uranium within a uranium enrichment zone certified	4539
by the tax commissioner under division (F)(2)(gg)(ii) of this	4540
section. "Qualified uranium receipts" does not include any	4541
receipts with a situs in this state outside a uranium enrichment	4542
zone certified by the tax commissioner under division	4543
(F)(2)(gg)(ii) of this section.	4544

(II) "Uranium enrichment zone" means all real property that	4545
is part of a uranium enrichment facility licensed by the United	4546
States nuclear regulatory commission and that was or is owned or	4547
controlled by the United States department of energy or its	4548
successor.	4549

(ii) Any person that owns, leases, or operates real or	4550
tangible personal property constituting or located within a	4551
uranium enrichment zone may apply to the tax commissioner to have	4552
the uranium enrichment zone certified for the purpose of excluding	4553
qualified uranium receipts under division (F)(2)(gg) of this	4554
section. The application shall include such information that the	4555
tax commissioner prescribes. Within sixty days after receiving the	4556
application, the tax commissioner shall certify the zone for that	4557
purpose if the commissioner determines that the property qualifies	4558
as a uranium enrichment zone as defined in division (F)(2)(gg) of	4559
this section, or, if the tax commissioner determines that the	4560
property does not qualify, the commissioner shall deny the	4561
application or request additional information from the applicant.	4562
If the tax commissioner denies an application, the commissioner	4563
shall state the reasons for the denial. The applicant may appeal	4564
the denial of an application to the board of tax appeals pursuant	4565
to section 5717.02 of the Revised Code. If the applicant files a	4566
timely appeal, the tax commissioner shall conditionally certify	4567
the applicant's property. The conditional certification shall	4568
expire when all of the applicant's appeals are exhausted. Until	4569
final resolution of the appeal, the applicant shall retain the	4570
applicant's records in accordance with section 5751.12 of the	4571
Revised Code, notwithstanding any time limit on the preservation	4572
of records under that section.	4573

(hh) In the case of amounts collected by a licensed casino	4574
operator from casino gaming, amounts in excess of the casino	4575
operator's gross casino revenue. In this division, "casino	4576
operator" and "casino gaming" have the meanings defined in section	4577
3772.01 of the Revised Code, and "gross casino revenue" has the	4578
meaning defined in section 5753.01 of the Revised Code.	4579

(ii) Receipts realized from the sale of agricultural	4580
commodities by an agricultural commodity handler, both as defined	4581
in section 926.01 of the Revised Code, that is licensed by the	4582
director of agriculture to handle agricultural commodities in this	4583
state.	4584

(jj) Any receipts for which the tax imposed by this chapter	4585
is prohibited by the constitution or laws of the United States or	4586
the constitution of this state.	4587

(3) In the case of a taxpayer when acting as a real estate	4588
broker, "gross receipts" includes only the portion of any fee for	4589
the service of a real estate broker, or service of a real estate	4590
salesperson associated with that broker, that is retained by the	4591
broker and not paid to an associated real estate salesperson or	4592
another real estate broker. For the purposes of this division,	4593
"real estate broker" and "real estate salesperson" have the same	4594
meanings as in section 4735.01 of the Revised Code.	4595

(4) A taxpayer's method of accounting for gross receipts for	4596
a tax period shall be the same as the taxpayer's method of	4597
accounting for federal income tax purposes for the taxpayer's	4598
federal taxable year that includes the tax period. If a taxpayer's	4599
method of accounting for federal income tax purposes changes, its	4600
method of accounting for gross receipts under this chapter shall	4601
be changed accordingly.	4602

(G) "Taxable gross receipts" means gross receipts sitused to	4603
this state under section 5751.033 of the Revised Code.	4604

(H) A person has "substantial nexus with this state" if any	4605
of the following applies. The person:	4606

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

4607

(2) Holds a certificate of compliance with the laws of this	4608
state authorizing the person to do business in this state;	4609

(3) Has bright-line presence in this state;

4610

(4) Otherwise has nexus with this state to an extent that the	4611
person can be required to remit the tax imposed under this chapter	4612
under the Constitution of the United States.	4613

(I) A person has "bright-line presence" in this state for a	4614
reporting period and for the remaining portion of the calendar	4615
year if any of the following applies. The person:	4616

(1) Has at any time during the calendar year property in this	4617
state with an aggregate value of at least fifty thousand dollars.	4618
For the purpose of division (I)(1) of this section, owned property	4619
is valued at original cost and rented property is valued at eight	4620
times the net annual rental charge.	4621

(2) Has during the calendar year payroll in this state of at	4622
least fifty thousand dollars. Payroll in this state includes all	4623
of the following:	4624

(a) Any amount subject to withholding by the person under	4625
section 5747.06 of the Revised Code;	4626

(b) Any other amount the person pays as compensation to an	4627
individual under the supervision or control of the person for work	4628
done in this state; and	4629

(c) Any amount the person pays for services performed in this	4630
state on its behalf by another.	4631

(3) Has during the calendar year taxable gross receipts of at	4632
least five hundred thousand dollars.	4633

(4) Has at any time during the calendar year within this	4634
state at least twenty-five per cent of the person's total	4635
property, total payroll, or total gross receipts.	4636

(5) Is domiciled in this state as an individual or for	4637
corporate, commercial, or other business purposes.	4638

(J) "Tangible personal property" has the same meaning as in	4639
section 5739.01 of the Revised Code.	4640

(K) "Internal Revenue Code" means the Internal Revenue Code	4641
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	4642
this chapter that is not otherwise defined has the same meaning as	4643
when used in a comparable context in the laws of the United States	4644
relating to federal income taxes unless a different meaning is	4645
clearly required. Any reference in this chapter to the Internal	4646
Revenue Code includes other laws of the United States relating to	4647
federal income taxes.	4648

(L) "Calendar quarter" means a three-month period ending on	4649
the thirty-first day of March, the thirtieth day of June, the	4650
thirtieth day of September, or the thirty-first day of December.	4651

(M) "Tax period" means the calendar quarter or calendar year	4652
on the basis of which a taxpayer is required to pay the tax	4653
imposed under this chapter.	4654

(N) "Calendar year taxpayer" means a taxpayer for which the	4655
tax period is a calendar year.	4656

(O) "Calendar quarter taxpayer" means a taxpayer for which	4657
the tax period is a calendar quarter.	4658

(P) "Agent" means a person authorized by another person to	4659
act on its behalf to undertake a transaction for the other,	4660
including any of the following:	4661

(1) A person receiving a fee to sell financial instruments;

4662

(2) A person retaining only a commission from a transaction	4663
with the other proceeds from the transaction being remitted to	4664
another person;	4665

(3) A person issuing licenses and permits under section	4666
1533.13 of the Revised Code;	4667

(4) A lottery sales agent holding a valid license issued	4668
under section 3770.05 of the Revised Code;	4669

(5) A person acting as an agent of the division of liquor	4670
control under section 4301.17 of the Revised Code.	4671

(Q) "Received" includes amounts accrued under the accrual	4672
method of accounting.	4673

(R) "Reporting person" means a person in a consolidated	4674
elected taxpayer or combined taxpayer group that is designated by	4675
that group to legally bind the group for all filings and tax	4676
liabilities and to receive all legal notices with respect to	4677
matters under this chapter, or, for the purposes of section	4678
5751.04 of the Revised Code, a separate taxpayer that is not a	4679
member of such a group.	4680

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	4681
the Revised Code:	4682

(1) "School district," "joint vocational school district,"	4683
"local taxing unit," "recognized valuation," "fixed-rate levy,"	4684
and "fixed-sum levy" have the same meanings as used in section	4685
5727.84 of the Revised Code.	4686

(2) "State education aid" for a school district means the	4687
following:	4688

(a) For fiscal years prior to fiscal year 2010, the sum of	4689
state aid amounts computed for the district under the following	4690
provisions, as they existed for the applicable fiscal year:	4691
division (A) of section 3317.022 of the Revised Code, including	4692
the amounts calculated under former section 3317.029 and section	4693
3317.0217 of the Revised Code; divisions (C)(1), (C)(4), (D), (E),	4694
and (F) of section 3317.022; divisions (B), (C), and (D) of	4695
section 3317.023; divisions (L) and (N) of section 3317.024;	4696
section 3317.0216; and any unit payments for gifted student	4697
services paid under section 3317.05 and former sections 3317.052	4698
and 3317.053 of the Revised Code; except that, for fiscal years	4699
2008 and 2009, the amount computed for the district under Section	4700
269.20.80 of H.B. 119 of the 127th general assembly and as that	4701
section subsequently may be amended shall be substituted for the	4702
amount computed under division (D) of section 3317.022 of the	4703
Revised Code, and the amount computed under Section 269.30.80 of	4704
H.B. 119 of the 127th general assembly and as that section	4705
subsequently may be amended shall be included.	4706

(b) For fiscal years 2010 and 2011, the sum of the amounts	4707
computed under former sections 3306.052, 3306.12, 3306.13,	4708
3306.19, 3306.191, and 3306.192 of the Revised Code;	4709

(c) For fiscal years 2012 and 2013, the sum of the amounts	4710
paid under Sections 267.30.50, 267.30.53, and 267.30.56 of H.B.	4711
153 of the 129th general assembly;	4712

(d) For fiscal year 2014 and each fiscal year thereafter, the	4713
sum of state amounts computed for the district under section	4714
3317.022 of the Revised Code; except that, for fiscal years 2014	4715
and 2015, the amount computed for the district under the section	4716
of this act entitled "TRANSITIONAL AID FOR CITY, LOCAL, AND	4717
EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.	4718

(3) "State education aid" for a joint vocational school	4719
district means the following:	4720

(a) For fiscal years prior to fiscal year 2010, the sum of	4721
the state aid computed for the district under division (N) of	4722
section 3317.024 and former section 3317.16 of the Revised Code,	4723
except that, for fiscal years 2008 and 2009, the amount computed	4724
under Section 269.30.80 of H.B. 119 of the 127th general assembly	4725
and as that section subsequently may be amended shall be included.	4726

(b) For fiscal years 2010 and 2011, the amount paid in	4727
accordance with Section 265.30.50 of H.B. 1 of the 128th general	4728
assembly.	4729

(c) For fiscal years 2012 and 2013, the amount paid in	4730
accordance with Section 267.30.60 of H.B. 153 of the 129th general	4731
assembly.	4732

(d) For fiscal year 2014 and each fiscal year thereafter, the	4733
amount computed for the district under section 3317.16 of the	4734
Revised Code; except that, for fiscal years 2014 and 2015, the	4735
amount computed for the district under the section of this act	4736
entitled "TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS"	4737
shall be included.	4738

(4) "State education aid offset" means the amount determined	4739
for each school district or joint vocational school district under	4740
division (A)(1) of section 5751.21 of the Revised Code.	4741

(5) "Machinery and equipment property tax value loss" means	4742
the amount determined under division (C)(1) of this section.	4743

(6) "Inventory property tax value loss" means the amount	4744
determined under division (C)(2) of this section.	4745

(7) "Furniture and fixtures property tax value loss" means	4746
the amount determined under division (C)(3) of this section.	4747

(8) "Machinery and equipment fixed-rate levy loss" means the	4748
amount determined under division (D)(1) of this section.	4749

(9) "Inventory fixed-rate levy loss" means the amount	4750
determined under division (D)(2) of this section.	4751

(10) "Furniture and fixtures fixed-rate levy loss" means the	4752
amount determined under division (D)(3) of this section.	4753

(11) "Total fixed-rate levy loss" means the sum of the	4754
machinery and equipment fixed-rate levy loss, the inventory	4755
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	4756
loss, and the telephone company fixed-rate levy loss.	4757

(12) "Fixed-sum levy loss" means the amount determined under	4758
division (E) of this section.	4759

(13) "Machinery and equipment" means personal property	4760
subject to the assessment rate specified in division (F) of	4761
section 5711.22 of the Revised Code.	4762

(14) "Inventory" means personal property subject to the	4763
assessment rate specified in division (E) of section 5711.22 of	4764
the Revised Code.	4765

(15) "Furniture and fixtures" means personal property subject	4766
to the assessment rate specified in division (G) of section	4767
5711.22 of the Revised Code.	4768

(16) "Qualifying levies" are levies in effect for tax year	4769
2004 or applicable to tax year 2005 or approved at an election	4770
conducted before September 1, 2005. For the purpose of determining	4771
the rate of a qualifying levy authorized by section 5705.212 or	4772
5705.213 of the Revised Code, the rate shall be the rate that	4773
would be in effect for tax year 2010.	4774

(17) "Telephone property" means tangible personal property of	4775
a telephone, telegraph, or interexchange telecommunications	4776
company subject to an assessment rate specified in section	4777
5727.111 of the Revised Code in tax year 2004.	4778

(18) "Telephone property tax value loss" means the amount	4779
determined under division (C)(4) of this section.	4780

(19) "Telephone property fixed-rate levy loss" means the	4781
amount determined under division (D)(4) of this section.	4782

(20) "Taxes charged and payable" means taxes charged and	4783
payable after the reduction required by section 319.301 of the	4784
Revised Code but before the reductions required by sections	4785
319.302 and 323.152 of the Revised Code.	4786

(21) "Median estate tax collections" means, in the case of a	4787
municipal corporation to which revenue from the taxes levied in	4788
Chapter 5731. of the Revised Code was distributed in each of	4789
calendar years 2006, 2007, 2008, and 2009, the median of those	4790
distributions. In the case of a municipal corporation to which no	4791
distributions were made in one or more of those years, "median	4792
estate tax collections" means zero.	4793

(22) "Total resources," in the case of a school district,	4794
means the sum of the amounts in divisions (A)(22)(a) to (h) of	4795
this section less any reduction required under division (A)(32) or	4796
(33) of this section.	4797

(a) The state education aid for fiscal year 2010;

4798

(b) The sum of the payments received by the school district	4799
in fiscal year 2010 for current expense levy losses pursuant to	4800
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of	4801
section 5751.21 of the Revised Code, excluding the portion of such	4802
payments attributable to levies for joint vocational school	4803
district purposes;	4804

(c) The sum of fixed-sum levy loss payments received by the	4805
school district in fiscal year 2010 pursuant to division (E)(1) of	4806
section 5727.85 and division (E)(1) of section 5751.21 of the	4807
Revised Code for fixed-sum levies charged and payable for a	4808
purpose other than paying debt charges;	4809

(d) Fifty per cent of the school district's taxes charged and	4810
payable against all property on the tax list of real and public	4811
utility property for current expense purposes for tax year 2008,	4812
including taxes charged and payable from emergency levies charged	4813
and payable under section 5709.194 of the Revised Code and	4814
excluding taxes levied for joint vocational school district	4815
purposes;	4816

(e) Fifty per cent of the school district's taxes charged and	4817
payable against all property on the tax list of real and public	4818
utility property for current expenses for tax year 2009, including	4819
taxes charged and payable from emergency levies and excluding	4820
taxes levied for joint vocational school district purposes;	4821

(f) The school district's taxes charged and payable against	4822
all property on the general tax list of personal property for	4823
current expenses for tax year 2009, including taxes charged and	4824
payable from emergency levies;	4825

(g) The amount certified for fiscal year 2010 under division	4826
(A)(2) of section 3317.08 of the Revised Code;	4827

(h) Distributions received during calendar year 2009 from	4828
taxes levied under section 718.09 of the Revised Code.	4829

(23) "Total resources," in the case of a joint vocational	4830
school district, means the sum of amounts in divisions (A)(23)(a)	4831
to (g) of this section less any reduction required under division	4832
(A)(32) of this section.	4833

(a) The state education aid for fiscal year 2010;

4834

(b) The sum of the payments received by the joint vocational	4835
school district in fiscal year 2010 for current expense levy	4836
losses pursuant to division (C)(2) of section 5727.85 and	4837
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;	4838

(c) Fifty per cent of the joint vocational school district's	4839
taxes charged and payable against all property on the tax list of	4840
real and public utility property for current expense purposes for	4841
tax year 2008;	4842

(d) Fifty per cent of the joint vocational school district's	4843
taxes charged and payable against all property on the tax list of	4844
real and public utility property for current expenses for tax year	4845
2009;	4846

(e) Fifty per cent of a city, local, or exempted village	4847
school district's taxes charged and payable against all property	4848
on the tax list of real and public utility property for current	4849
expenses of the joint vocational school district for tax year	4850
2008;	4851

(f) Fifty per cent of a city, local, or exempted village	4852
school district's taxes charged and payable against all property	4853
on the tax list of real and public utility property for current	4854
expenses of the joint vocational school district for tax year	4855
2009;	4856

(g) The joint vocational school district's taxes charged and	4857
payable against all property on the general tax list of personal	4858
property for current expenses for tax year 2009.	4859

(24) "Total resources," in the case of county mental health	4860
and disability related functions, means the sum of the amounts in	4861
divisions (A)(24)(a) and (b) of this section less any reduction	4862
required under division (A)(32) of this section.	4863

(a) The sum of the payments received by the county for mental	4864
health and developmental disability related functions in calendar	4865
year 2010 under division (A)(1) of section 5727.86 and divisions	4866
(A)(1) and (2) of section 5751.22 of the Revised Code as they	4867
existed at that time;	4868

(b) With respect to taxes levied by the county for mental	4869
health and developmental disability related purposes, the taxes	4870
charged and payable for such purposes against all property on the	4871
tax list of real and public utility property for tax year 2009.	4872

(25) "Total resources," in the case of county senior services	4873
related functions, means the sum of the amounts in divisions	4874
(A)(25)(a) and (b) of this section less any reduction required	4875
under division (A)(32) of this section.	4876

(a) The sum of the payments received by the county for senior	4877
services related functions in calendar year 2010 under division	4878
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	4879
5751.22 of the Revised Code as they existed at that time;	4880

(b) With respect to taxes levied by the county for senior	4881
services related purposes, the taxes charged and payable for such	4882
purposes against all property on the tax list of real and public	4883
utility property for tax year 2009.	4884

(26) "Total resources," in the case of county children's	4885
services related functions, means the sum of the amounts in	4886
divisions (A)(26)(a) and (b) of this section less any reduction	4887
required under division (A)(32) of this section.	4888

(a) The sum of the payments received by the county for	4889
children's services related functions in calendar year 2010 under	4890
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of	4891
section 5751.22 of the Revised Code as they existed at that time;	4892

(b) With respect to taxes levied by the county for children's	4893
services related purposes, the taxes charged and payable for such	4894
purposes against all property on the tax list of real and public	4895
utility property for tax year 2009.	4896

(27) "Total resources," in the case of county public health	4897
related functions, means the sum of the amounts in divisions	4898
(A)(27)(a) and (b) of this section less any reduction required	4899
under division (A)(32) of this section.	4900

(a) The sum of the payments received by the county for public	4901
health related functions in calendar year 2010 under division	4902
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	4903
5751.22 of the Revised Code as they existed at that time;	4904

(b) With respect to taxes levied by the county for public	4905
health related purposes, the taxes charged and payable for such	4906
purposes against all property on the tax list of real and public	4907
utility property for tax year 2009.	4908

(28) "Total resources," in the case of all county functions	4909
not included in divisions (A)(24) to (27) of this section, means	4910
the sum of the amounts in divisions (A)(28)(a) to (d) of this	4911
section less any reduction required under division (A)(32) or (33)	4912
of this section.	4913

(a) The sum of the payments received by the county for all	4914
other purposes in calendar year 2010 under division (A)(1) of	4915
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of	4916
the Revised Code as they existed at that time;	4917

(b) The county's percentage share of county undivided local	4918
government fund allocations as certified to the tax commissioner	4919
for calendar year 2010 by the county auditor under division (J) of	4920
section 5747.51 of the Revised Code or division (F) of section	4921
5747.53 of the Revised Code multiplied by the total amount	4922
actually distributed in calendar year 2010 from the county	4923
undivided local government fund;	4924

(c) With respect to taxes levied by the county for all other	4925
purposes, the taxes charged and payable for such purposes against	4926
all property on the tax list of real and public utility property	4927
for tax year 2009, excluding taxes charged and payable for the	4928
purpose of paying debt charges;	4929

(d) The sum of the amounts distributed to the county in	4930
calendar year 2010 for the taxes levied pursuant to sections	4931
5739.021 and 5741.021 of the Revised Code.	4932

(29) "Total resources," in the case of a municipal	4933
corporation, means the sum of the amounts in divisions (A)(29)(a)	4934
to (g) of this section less any reduction required under division	4935
(A)(32) or (33) of this section.	4936

(a) The sum of the payments received by the municipal	4937
corporation in calendar year 2010 for current expense levy losses	4938
under division (A)(1) of section 5727.86 and divisions (A)(1) and	4939
(2) of section 5751.22 of the Revised Code as they existed at that	4940
time;	4941

(b) The municipal corporation's percentage share of county	4942
undivided local government fund allocations as certified to the	4943
tax commissioner for calendar year 2010 by the county auditor	4944
under division (J) of section 5747.51 of the Revised Code or	4945
division (F) of section 5747.53 of the Revised Code multiplied by	4946
the total amount actually distributed in calendar year 2010 from	4947
the county undivided local government fund;	4948

(c) The sum of the amounts distributed to the municipal	4949
corporation in calendar year 2010 pursuant to section 5747.50 of	4950
the Revised Code;	4951

(d) With respect to taxes levied by the municipal	4952
corporation, the taxes charged and payable against all property on	4953
the tax list of real and public utility property for current	4954
expenses, defined in division (A)(35) of this section, for tax	4955
year 2009;	4956

(e) The amount of admissions tax collected by the municipal	4957
corporation in calendar year 2008, or if such information has not	4958
yet been reported to the tax commissioner, in the most recent year	4959
before 2008 for which the municipal corporation has reported data	4960
to the commissioner;	4961

(f) The amount of income taxes collected by the municipal	4962
corporation in calendar year 2008, or if such information has not	4963
yet been reported to the tax commissioner, in the most recent year	4964
before 2008 for which the municipal corporation has reported data	4965
to the commissioner;	4966

(g) The municipal corporation's median estate tax	4967
collections.	4968

(30) "Total resources," in the case of a township, means the	4969
sum of the amounts in divisions (A)(30)(a) to (c) of this section	4970
less any reduction required under division (A)(32) or (33) of this	4971
section.	4972

(a) The sum of the payments received by the township in	4973
calendar year 2010 pursuant to division (A)(1) of section 5727.86	4974
of the Revised Code and divisions (A)(1) and (2) of section	4975
5751.22 of the Revised Code as they existed at that time,	4976
excluding payments received for debt purposes;	4977

(b) The township's percentage share of county undivided local	4978
government fund allocations as certified to the tax commissioner	4979
for calendar year 2010 by the county auditor under division (J) of	4980
section 5747.51 of the Revised Code or division (F) of section	4981
5747.53 of the Revised Code multiplied by the total amount	4982
actually distributed in calendar year 2010 from the county	4983
undivided local government fund;	4984

(c) With respect to taxes levied by the township, the taxes	4985
charged and payable against all property on the tax list of real	4986
and public utility property for tax year 2009 excluding taxes	4987
charged and payable for the purpose of paying debt charges.	4988

(31) "Total resources," in the case of a local taxing unit	4989
that is not a county, municipal corporation, or township, means	4990
the sum of the amounts in divisions (A)(31)(a) to (e) of this	4991
section less any reduction required under division (A)(32) of this	4992
section.	4993

(a) The sum of the payments received by the local taxing unit	4994
in calendar year 2010 pursuant to division (A)(1) of section	4995
5727.86 of the Revised Code and divisions (A)(1) and (2) of	4996
section 5751.22 of the Revised Code as they existed at that time;	4997

(b) The local taxing unit's percentage share of county	4998
undivided local government fund allocations as certified to the	4999
tax commissioner for calendar year 2010 by the county auditor	5000
under division (J) of section 5747.51 of the Revised Code or	5001
division (F) of section 5747.53 of the Revised Code multiplied by	5002
the total amount actually distributed in calendar year 2010 from	5003
the county undivided local government fund;	5004

(c) With respect to taxes levied by the local taxing unit,	5005
the taxes charged and payable against all property on the tax list	5006
of real and public utility property for tax year 2009 excluding	5007
taxes charged and payable for the purpose of paying debt charges;	5008

(d) The amount received from the tax commissioner during	5009
calendar year 2010 for sales or use taxes authorized under	5010
sections 5739.023 and 5741.022 of the Revised Code;	5011

(e) For institutions of higher education receiving tax	5012
revenue from a local levy, as identified in section 3358.02 of the	5013
Revised Code, the final state share of instruction allocation for	5014
fiscal year 2010 as calculated by the board of regents and	5015
reported to the state controlling board.	5016

(32) If a fixed-rate levy that is a qualifying levy is not	5017
charged and payable in any year after tax year 2010, "total	5018
resources" used to compute payments to be made under division	5019
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section	5020
5751.22 of the Revised Code in the tax years following the last	5021
year the levy is charged and payable shall be reduced to the	5022
extent that the payments are attributable to the fixed-rate levy	5023
loss of that levy as would be computed under division (C)(2) of	5024
section 5727.85, division (A)(1) of section 5727.85, divisions	5025
(C)(8) and (9) of section 5751.21, or division (A)(1) of section	5026
5751.22 of the Revised Code.	5027

(33) In the case of a county, municipal corporation, school	5028
district, or township with fixed-rate levy losses attributable to	5029
a tax levied under section 5705.23 of the Revised Code, "total	5030
resources" used to compute payments to be made under division	5031
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,	5032
division (C)(12) of section 5751.21, or division (A)(1)(c) of	5033
section 5751.22 of the Revised Code shall be reduced by the	5034
amounts described in divisions (A)(34)(a) to (c) of this section	5035
to the extent that those amounts were included in calculating the	5036
"total resources" of the school district or local taxing unit	5037
under division (A)(22), (28), (29), or (30) of this section.	5038

(34) "Total library resources," in the case of a county,	5039
municipal corporation, school district, or township public library	5040
that receives the proceeds of a tax levied under section 5705.23	5041
of the Revised Code, means the sum of the amounts in divisions	5042
(A)(34)(a) to (c) of this section less any reduction required	5043
under division (A)(32) of this section.	5044

(a) The sum of the payments received by the county, municipal	5045
corporation, school district, or township public library in	5046
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the	5047
Revised Code, as they existed at that time, for fixed-rate levy	5048
losses attributable to a tax levied under section 5705.23 of the	5049
Revised Code for the benefit of the public library;	5050

(b) The public library's percentage share of county undivided	5051
local government fund allocations as certified to the tax	5052
commissioner for calendar year 2010 by the county auditor under	5053
division (J) of section 5747.51 of the Revised Code or division	5054
(F) of section 5747.53 of the Revised Code multiplied by the total	5055
amount actually distributed in calendar year 2010 from the county	5056
undivided local government fund;	5057

(c) With respect to a tax levied pursuant to section 5705.23	5058
of the Revised Code for the benefit of the public library, the	5059
amount of such tax that is charged and payable against all	5060
property on the tax list of real and public utility property for	5061
tax year 2009 excluding any tax that is charged and payable for	5062
the purpose of paying debt charges.	5063

(35) "Municipal current expense property tax levies" means	5064
all property tax levies of a municipality, except those with the	5065
following levy names: airport resurfacing; bond or any levy name	5066
including the word "bond"; capital improvement or any levy name	5067
including the word "capital"; debt or any levy name including the	5068
word "debt"; equipment or any levy name including the word	5069
"equipment," unless the levy is for combined operating and	5070
equipment; employee termination fund; fire pension or any levy	5071
containing the word "pension," including police pensions;	5072
fireman's fund or any practically similar name; sinking fund; road	5073
improvements or any levy containing the word "road"; fire truck or	5074
apparatus; flood or any levy containing the word "flood";	5075
conservancy district; county health; note retirement; sewage, or	5076
any levy containing the words "sewage" or "sewer"; park	5077
improvement; parkland acquisition; storm drain; street or any levy	5078
name containing the word "street"; lighting, or any levy name	5079
containing the word "lighting"; and water.	5080

(36) "Current expense TPP allocation" means, in the case of a	5081
school district or joint vocational school district, the sum of	5082
the payments received by the school district in fiscal year 2011	5083
pursuant to divisions (C)(10) and (11) of section 5751.21 of the	5084
Revised Code to the extent paid for current expense levies. In the	5085
case of a municipal corporation, "current expense TPP allocation"	5086
means the sum of the payments received by the municipal	5087
corporation in calendar year 2010 pursuant to divisions (A)(1) and	5088
(2) of section 5751.22 of the Revised Code to the extent paid for	5089
municipal current expense property tax levies as defined in	5090
division (A)(35) of this section, excluding any such payments	5091
received for current expense levy losses attributable to a tax	5092
levied under section 5705.23 of the Revised Code. If a fixed-rate	5093
levy that is a qualifying levy is not charged and payable in any	5094
year after tax year 2010, "current expense TPP allocation" used to	5095
compute payments to be made under division (C)(12) of section	5096
5751.21 or division (A)(1)(b) or (c) of section 5751.22 of the	5097
Revised Code in the tax years following the last year the levy is	5098
charged and payable shall be reduced to the extent that the	5099
payments are attributable to the fixed-rate levy loss of that levy	5100
as would be computed under divisions (C)(10) and (11) of section	5101
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.	5102

(37) "TPP allocation" means the sum of payments received by a	5103
local taxing unit in calendar year 2010 pursuant to divisions	5104
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding	5105
any such payments received for fixed-rate levy losses attributable	5106
to a tax levied under section 5705.23 of the Revised Code. If a	5107
fixed-rate levy that is a qualifying levy is not charged and	5108
payable in any year after tax year 2010, "TPP allocation" used to	5109
compute payments to be made under division (A)(1)(b) or (c) of	5110
section 5751.22 of the Revised Code in the tax years following the	5111
last year the levy is charged and payable shall be reduced to the	5112
extent that the payments are attributable to the fixed-rate levy	5113
loss of that levy as would be computed under division (A)(1) of	5114
that section.	5115

(38) "Total TPP allocation" means, in the case of a school	5116
district or joint vocational school district, the sum of the	5117
amounts received in fiscal year 2011 pursuant to divisions (C)(10)	5118
and (11) and (D) of section 5751.21 of the Revised Code. In the	5119
case of a local taxing unit, "total TPP allocation" means the sum	5120
of payments received by the unit in calendar year 2010 pursuant to	5121
divisions (A)(1), (2), and (3) of section 5751.22 of the Revised	5122
Code. If a fixed-rate levy that is a qualifying levy is not	5123
charged and payable in any year after tax year 2010, "total TPP	5124
allocation" used to compute payments to be made under division	5125
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section	5126
5751.22 of the Revised Code in the tax years following the last	5127
year the levy is charged and payable shall be reduced to the	5128
extent that the payments are attributable to the fixed-rate levy	5129
loss of that levy as would be computed under divisions (C)(10) and	5130
(11) of section 5751.21 or division (A)(1) of section 5751.22 of	5131
the Revised Code.	5132

(39) "Non-current expense TPP allocation" means the	5133
difference of total TPP allocation minus the sum of current	5134
expense TPP allocation and the portion of total TPP allocation	5135
constituting reimbursement for debt levies, pursuant to division	5136
(D) of section 5751.21 of the Revised Code in the case of a school	5137
district or joint vocational school district and pursuant to	5138
division (A)(3) of section 5751.22 of the Revised Code in the case	5139
of a municipal corporation.	5140

(40) "TPP allocation for library purposes" means the sum of	5141
payments received by a county, municipal corporation, school	5142
district, or township public library in calendar year 2010	5143
pursuant to section 5751.22 of the Revised Code for fixed-rate	5144
levy losses attributable to a tax levied under section 5705.23 of	5145
the Revised Code. If a fixed-rate levy authorized under section	5146
5705.23 of the Revised Code that is a qualifying levy is not	5147
charged and payable in any year after tax year 2010, "TPP	5148
allocation for library purposes" used to compute payments to be	5149
made under division (A)(1)(d) of section 5751.22 of the Revised	5150
Code in the tax years following the last year the levy is charged	5151
and payable shall be reduced to the extent that the payments are	5152
attributable to the fixed-rate levy loss of that levy as would be	5153
computed under division (A)(1) of section 5751.22 of the Revised	5154
Code.	5155

(41) "Threshold per cent" means, in the case of a school	5156
district or joint vocational school district, two per cent for	5157
fiscal year 2012 and four per cent for fiscal years 2013 and	5158
thereafter. In the case of a local taxing unit or public library	5159
that receives the proceeds of a tax levied under section 5705.23	5160
of the Revised Code, "threshold per cent" means two per cent for	5161
tax year 2011, four per cent for tax year 2012, and six per cent	5162
for tax years 2013 and thereafter.	5163

(B)(1) The commercial activities tax receipts fund is hereby	5164
created in the state treasury and shall consist of money arising	5165
from the tax imposed under this chapter. Eighty-five	5166
one-hundredths of one per cent of the money credited to that fund	5167
shall be credited to the revenue enhancement fund and shall be	5168
used to defray the costs incurred by the department of taxation in	5169
administering the tax imposed by this chapter and in implementing	5170
tax reform measures. The remainder of the money in the commercial	5171
activities tax receipts fund shall first be credited to the	5172
commercial activity tax motor fuel receipts fund, pursuant to	5173
division (B)(2) of this section, and the remainder shall be	5174
credited in the following percentages each fiscal year to the	5175
general revenue fund, to the school district tangible property tax	5176
replacement fund, which is hereby created in the state treasury	5177
for the purpose of making the payments described in section	5178
5751.21 of the Revised Code, and to the local government tangible	5179
property tax replacement fund, which is hereby created in the	5180
state treasury for the purpose of making the payments described in	5181
section 5751.22 of the Revised Code, in the following percentages:	5182

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		5183
2006	67.7%	22.6%	9.7%		5184
2007	0%	70.0%	30.0%		5185
2008	0%	70.0%	30.0%		5186
2009	0%	70.0%	30.0%		5187
2010	0%	70.0%	30.0%		5188
2011	0%	70.0%	30.0%		5189
2012	25.0%	52.5%	22.5%		5190
2013 and thereafter	50.0%	35.0%	15.0%		5191

(2) Not later than the twentieth day of February, May,	5192
August, and November of each year, the commissioner shall provide	5193
for payment from the commercial activities tax receipts fund to	5194
the commercial activity tax motor fuel receipts fund an amount	5195
that bears the same ratio to the balance in the commercial	5196
activities tax receipts fund that (a) the taxable gross receipts	5197
attributed to motor fuel used for propelling vehicles on public	5198
highways as indicated by returns filed by the tenth day of that	5199
month for a liability that is due and payable on or after July 1,	5200
2013, for a tax period ending before July 1, 2014, bears to (b)	5201
all taxable gross receipts as indicated by those returns for such	5202
liabilities.	5203

(C) Not later than September 15, 2005, the tax commissioner	5204
shall determine for each school district, joint vocational school	5205
district, and local taxing unit its machinery and equipment,	5206
inventory property, furniture and fixtures property, and telephone	5207
property tax value losses, which are the applicable amounts	5208
described in divisions (C)(1), (2), (3), and (4) of this section,	5209
except as provided in division (C)(5) of this section:	5210

(1) Machinery and equipment property tax value loss is the	5211
taxable value of machinery and equipment property as reported by	5212
taxpayers for tax year 2004 multiplied by:	5213

(a) For tax year 2006, thirty-three and eight-tenths per	5214
cent;	5215

(b) For tax year 2007, sixty-one and three-tenths per cent;

5216

(c) For tax year 2008, eighty-three per cent;

5217

(d) For tax year 2009 and thereafter, one hundred per cent.

5218

(2) Inventory property tax value loss is the taxable value of	5219
inventory property as reported by taxpayers for tax year 2004	5220
multiplied by:	5221

(a) For tax year 2006, a fraction, the numerator of which is	5222
five and three-fourths and the denominator of which is	5223
twenty-three;	5224

(b) For tax year 2007, a fraction, the numerator of which is	5225
nine and one-half and the denominator of which is twenty-three;	5226

(c) For tax year 2008, a fraction, the numerator of which is	5227
thirteen and one-fourth and the denominator of which is	5228
twenty-three;	5229

(d) For tax year 2009 and thereafter a fraction, the	5230
numerator of which is seventeen and the denominator of which is	5231
twenty-three.	5232

(3) Furniture and fixtures property tax value loss is the	5233
taxable value of furniture and fixture property as reported by	5234
taxpayers for tax year 2004 multiplied by:	5235

(a) For tax year 2006, twenty-five per cent;

5236

(b) For tax year 2007, fifty per cent;

5237

(c) For tax year 2008, seventy-five per cent;

5238

(d) For tax year 2009 and thereafter, one hundred per cent.

5239

The taxable value of property reported by taxpayers used in	5240
divisions (C)(1), (2), and (3) of this section shall be such	5241
values as determined to be final by the tax commissioner as of	5242
August 31, 2005. Such determinations shall be final except for any	5243
correction of a clerical error that was made prior to August 31,	5244
2005, by the tax commissioner.	5245

(4) Telephone property tax value loss is the taxable value of	5246
telephone property as taxpayers would have reported that property	5247
for tax year 2004 if the assessment rate for all telephone	5248
property for that year were twenty-five per cent, multiplied by:	5249

(a) For tax year 2006, zero per cent;

5250

(b) For tax year 2007, zero per cent;

5251

(c) For tax year 2008, zero per cent;

5252

(d) For tax year 2009, sixty per cent;

5253

(e) For tax year 2010, eighty per cent;

5254

(f) For tax year 2011 and thereafter, one hundred per cent.

5255

(5) Division (C)(5) of this section applies to any school	5256
district, joint vocational school district, or local taxing unit	5257
in a county in which is located a facility currently or formerly	5258
devoted to the enrichment or commercialization of uranium or	5259
uranium products, and for which the total taxable value of	5260
property listed on the general tax list of personal property for	5261
any tax year from tax year 2001 to tax year 2004 was fifty per	5262
cent or less of the taxable value of such property listed on the	5263
general tax list of personal property for the next preceding tax	5264
year.	5265

In computing the fixed-rate levy losses under divisions	5266
(D)(1), (2), and (3) of this section for any school district,	5267
joint vocational school district, or local taxing unit to which	5268
division (C)(5) of this section applies, the taxable value of such	5269
property as listed on the general tax list of personal property	5270
for tax year 2000 shall be substituted for the taxable value of	5271
such property as reported by taxpayers for tax year 2004, in the	5272
taxing district containing the uranium facility, if the taxable	5273
value listed for tax year 2000 is greater than the taxable value	5274
reported by taxpayers for tax year 2004. For the purpose of making	5275
the computations under divisions (D)(1), (2), and (3) of this	5276
section, the tax year 2000 valuation is to be allocated to	5277
machinery and equipment, inventory, and furniture and fixtures	5278
property in the same proportions as the tax year 2004 values. For	5279
the purpose of the calculations in division (A) of section 5751.21	5280
of the Revised Code, the tax year 2004 taxable values shall be	5281
used.	5282

To facilitate the calculations required under division (C) of	5283
this section, the county auditor, upon request from the tax	5284
commissioner, shall provide by August 1, 2005, the values of	5285
machinery and equipment, inventory, and furniture and fixtures for	5286
all single-county personal property taxpayers for tax year 2004.	5287

(D) Not later than September 15, 2005, the tax commissioner	5288
shall determine for each tax year from 2006 through 2009 for each	5289
school district, joint vocational school district, and local	5290
taxing unit its machinery and equipment, inventory, and furniture	5291
and fixtures fixed-rate levy losses, and for each tax year from	5292
2006 through 2011 its telephone property fixed-rate levy loss.	5293
Except as provided in division (F) of this section, such losses	5294
are the applicable amounts described in divisions (D)(1), (2),	5295
(3), and (4) of this section:	5296

(1) The machinery and equipment fixed-rate levy loss is the	5297
machinery and equipment property tax value loss multiplied by the	5298
sum of the tax rates of fixed-rate qualifying levies.	5299

(2) The inventory fixed-rate loss is the inventory property	5300
tax value loss multiplied by the sum of the tax rates of	5301
fixed-rate qualifying levies.	5302

(3) The furniture and fixtures fixed-rate levy loss is the	5303
furniture and fixture property tax value loss multiplied by the	5304
sum of the tax rates of fixed-rate qualifying levies.	5305

(4) The telephone property fixed-rate levy loss is the	5306
telephone property tax value loss multiplied by the sum of the tax	5307
rates of fixed-rate qualifying levies.	5308

(E) Not later than September 15, 2005, the tax commissioner	5309
shall determine for each school district, joint vocational school	5310
district, and local taxing unit its fixed-sum levy loss. The	5311
fixed-sum levy loss is the amount obtained by subtracting the	5312
amount described in division (E)(2) of this section from the	5313
amount described in division (E)(1) of this section:	5314

(1) The sum of the machinery and equipment property tax value	5315
loss, the inventory property tax value loss, and the furniture and	5316
fixtures property tax value loss, and, for 2008 through 2010, the	5317
telephone property tax value loss of the district or unit	5318
multiplied by the sum of the fixed-sum tax rates of qualifying	5319
levies. For 2006 through 2010, this computation shall include all	5320
qualifying levies remaining in effect for the current tax year and	5321
any school district levies charged and payable under section	5322
5705.194 or 5705.213 of the Revised Code that are qualifying	5323
levies not remaining in effect for the current year. For 2011	5324
through 2017 in the case of school district levies charged and	5325
payable under section 5705.194 or 5705.213 of the Revised Code and	5326
for all years after 2010 in the case of other fixed-sum levies,	5327
this computation shall include only qualifying levies remaining in	5328
effect for the current year. For purposes of this computation, a	5329
qualifying school district levy charged and payable under section	5330
5705.194 or 5705.213 of the Revised Code remains in effect in a	5331
year after 2010 only if, for that year, the board of education	5332
levies a school district levy charged and payable under section	5333
5705.194, 5705.199, 5705.213, or 5705.219 of the Revised Code for	5334
an annual sum at least equal to the annual sum levied by the board	5335
in tax year 2004 less the amount of the payment certified under	5336
this division for 2006.	5337

(2) The total taxable value in tax year 2004 less the sum of	5338
the machinery and equipment, inventory, furniture and fixtures,	5339
and telephone property tax value losses in each school district,	5340
joint vocational school district, and local taxing unit multiplied	5341
by one-half of one mill per dollar.	5342

(3) For the calculations in divisions (E)(1) and (2) of this	5343
section, the tax value losses are those that would be calculated	5344
for tax year 2009 under divisions (C)(1), (2), and (3) of this	5345
section and for tax year 2011 under division (C)(4) of this	5346
section.	5347

(4) To facilitate the calculation under divisions (D) and (E)	5348
of this section, not later than September 1, 2005, any school	5349
district, joint vocational school district, or local taxing unit	5350
that has a qualifying levy that was approved at an election	5351
conducted during 2005 before September 1, 2005, shall certify to	5352
the tax commissioner a copy of the county auditor's certificate of	5353
estimated property tax millage for such levy as required under	5354
division (B) of section 5705.03 of the Revised Code, which is the	5355
rate that shall be used in the calculations under such divisions.	5356

If the amount determined under division (E) of this section	5357
for any school district, joint vocational school district, or	5358
local taxing unit is greater than zero, that amount shall equal	5359
the reimbursement to be paid pursuant to division (E) of section	5360
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	5361
and the one-half of one mill that is subtracted under division	5362
(E)(2) of this section shall be apportioned among all contributing	5363
fixed-sum levies in the proportion that each levy bears to the sum	5364
of all fixed-sum levies within each school district, joint	5365
vocational school district, or local taxing unit.	5366

(F) If a school district levies a tax under section 5705.219	5367
of the Revised Code, the fixed-rate levy loss for qualifying	5368
levies, to the extent repealed under that section, shall equal the	5369
sum of the following amounts in lieu of the amounts computed for	5370
such levies under division (D) of this section:	5371

(1) The sum of the rates of qualifying levies to the extent	5372
so repealed multiplied by the sum of the machinery and equipment,	5373
inventory, and furniture and fixtures tax value losses for 2009 as	5374
determined under that division;	5375

(2) The sum of the rates of qualifying levies to the extent	5376
so repealed multiplied by the telephone property tax value loss	5377
for 2011 as determined under that division.	5378

The fixed-rate levy losses for qualifying levies to the	5379
extent not repealed under section 5705.219 of the Revised Code	5380
shall be as determined under division (D) of this section. The	5381
revised fixed-rate levy losses determined under this division and	5382
division (D) of this section first apply in the year following the	5383
first year the district levies the tax under section 5705.219 of	5384
the Revised Code.	5385

(G) Not later than October 1, 2005, the tax commissioner	5386
shall certify to the department of education for every school	5387
district and joint vocational school district the machinery and	5388
equipment, inventory, furniture and fixtures, and telephone	5389
property tax value losses determined under division (C) of this	5390
section, the machinery and equipment, inventory, furniture and	5391
fixtures, and telephone fixed-rate levy losses determined under	5392
division (D) of this section, and the fixed-sum levy losses	5393
calculated under division (E) of this section. The calculations	5394
under divisions (D) and (E) of this section shall separately	5395
display the levy loss for each levy eligible for reimbursement.	5396

(H) Not later than October 1, 2005, the tax commissioner	5397
shall certify the amount of the fixed-sum levy losses to the	5398
county auditor of each county in which a school district, joint	5399
vocational school district, or local taxing unit with a fixed-sum	5400
levy loss reimbursement has territory.	5401

(I) Not later than the twenty-eighth day of February each	5402
year beginning in 2011 and ending in 2014, the tax commissioner	5403
shall certify to the department of education for each school	5404
district first levying a tax under section 5705.219 of the Revised	5405
Code in the preceding year the revised fixed-rate levy losses	5406
determined under divisions (D) and (F) of this section.	5407

(J)(1) There is hereby created in the state treasury the	5408
commercial activity tax motor fuel receipts fund.	5409

(2)(a) On or before June 15, 2014, the director of the Ohio	5410
public works commission shall certify to the director of budget	5411
and management the amount of debt service paid from the general	5412
revenue fund in fiscal years 2013 and 2014 on bonds issued to	5413
finance or assist in the financing of the cost of local	5414
subdivision public infrastructure capital improvement projects, as	5415
provided for in Sections 2k, 2m, and 2p of Article VIII, Ohio	5416
Constitution, that are attributable to costs for construction,	5417
reconstruction, maintenance, or repair of public highways and	5418
bridges and other statutory highway purposes. That certification	5419
shall allocate the total amount of debt service paid from the	5420
general revenue fund and attributable to those costs in each of	5421
fiscal years 2013 and 2014 according to the applicable section of	5422
the Ohio Constitution under which the bonds were originally	5423
issued.	5424

(b) On or before June 30, 2014, the director of budget and	5425
management shall determine an amount up to but not exceeding the	5426
amount certified under division (J)(2)(a) of this section and	5427
shall reserve that amount from the cash balance in the commercial	5428
activity tax motor fuel receipts fund for transfer to the general	5429
revenue fund at times and in amounts to be determined by the	5430
director. The director shall transfer the cash balance in the	5431
commercial activity tax motor fuel receipts fund in excess of the	5432
amount so reserved to the highway operating fund on or before June	5433
30, 2014.	5434

(3)(a) On or before the fifteenth day of June of each fiscal	5435
year beginning with fiscal year 2015, the director of the Ohio	5436
public works commission shall certify to the director of budget	5437
and management the amount of debt service paid from the general	5438
revenue fund in the current fiscal year on bonds issued to finance	5439
or assist in the financing of the cost of local subdivision public	5440
infrastructure capital improvement projects, as provided for in	5441
Sections 2k, 2m, and 2p of Article VIII, Ohio Constitution, that	5442
are attributable to costs for construction, reconstruction,	5443
maintenance, or repair of public highways and bridges and other	5444
statutory highway purposes. That certification shall allocate the	5445
total amount of debt service paid from the general revenue fund	5446
and attributable to those costs in the current fiscal year	5447
according to the applicable section of the Ohio Constitution under	5448
which the bonds were originally issued.	5449

(b) On or before the thirtieth day of June of each fiscal	5450
year beginning with fiscal year 2015, the director of budget and	5451
management shall determine an amount up to but not exceeding the	5452
amount certified under division (J)(3)(a) of this section and	5453
shall reserve that amount from the cash balance in the motor fuel	5454
receiptspetroleum activity tax public highways fund or the	5455
commercial activity tax motor fuel receipts fund for transfer to	5456
the general revenue fund at times and in amounts to be determined	5457
by the director. The director shall transfer the cash balance in	5458
the motor fuel receiptspetroleum activity tax public highways	5459
fund or the commercial activity tax motor fuel receipts fund in	5460
excess of the amount so reserved to the highway operating fund on	5461
or before the thirtieth day of June of the current fiscal year.	5462

Section 2. That existing sections 122.17, 122.171, 122.86,	5463
166.21, 718.15, 718.151, 3734.905, 4921.13, 4921.19, 5703.056,	5464
5703.059, 5703.21, 5727.47, 5727.91, 5735.01, 5735.026, 5735.05,	5465
5735.062, 5735.07, 5735.09, 5735.12, 5735.141, 5735.23, 5736.01,	5466
5736.02, 5736.03, 5736.04, 5736.06, 5736.09, 5736.13, 5743.01,	5467
5743.021, 5743.024, 5743.025, 5743.03, 5743.04, 5743.05, 5743.051,	5468
5743.112, 5743.52, 5743.65, 5747.08, 5747.98, 5751.01, and	5469
5751.20, and sections 183.35, 5726.08, 5733.30, 5735.16,	5470
5743.06, and 5745.10 of the Revised Code are hereby repealed.	5471

Section 3.  The amendment by this act of section 122.86 of	5472
the Revised Code applies to any qualifying investment made on or	5473
after July 1, 2011, including any qualifying investment made on or	5474
after July 1, 2013.	5475

Section 4. The amendment or enactment by this act of sections	5476
122.17, 122.171, and 5736.50 of the Revised Code, except for the	5477
amendment to division (A) of section 122.17 of the Revised Code,	5478
applies to tax periods beginning on or after July 1, 2014.	5479

The amendment by this act of division (A) of section 5736.02,	5480
division (A) of section 5736.03, division (G) of section 5736.09,	5481
divisions (D)(2)(a) and (b) of section 5736.13, section 5751.01,	5482
all divisions of section 5736.01 except division (I) of that	5483
section, and the addition of the word "calculated" in divisions	5484
(A) and (C) of section 5736.04 of the Revised Code apply to tax	5485
periods beginning on or after July 1, 2015.	5486

Section 5. (A) As used in this section:

5487

(1) "Qualified property" means real property all or a portion	5488
of the assessed value of which is or has been eligible for	5489
exemption from taxation under a qualifying enterprise zone	5490
agreement.	5491

(2) "Qualifying enterprise zone agreement" means an	5492
enterprise zone agreement entered into under section 5709.63 of	5493
the Revised Code by the record owner of qualified property and the	5494
board of county commissioners of a county having a population	5495
greater than five hundred thousand but less than six hundred	5496
thousand with the consent of a municipal corporation having a	5497
population greater than fifteen thousand but less than twenty	5498
thousand. For the purposes of this section, population is	5499
determined by reference to the 2010 decennial census.	5500

(3) "Record owner" means the person or persons in whose name	5501
a parcel of qualified real property is listed on the tax list	5502
compiled by the county auditor under section 319.28 of the Revised	5503
Code.	5504

(B) Notwithstanding section 5713.081 of the Revised Code,	5505
when qualified property has not received tax exemption to which	5506
the property would otherwise be entitled if not for the record	5507
owner's failure to comply with section 5715.27 of the Revised	5508
Code, the record owner, at any time on or before three months	5509
after the effective date of this section, may file with the Tax	5510
Commissioner an application requesting the following:	5511

(1) That the qualified property be added to the list of	5512
exempted parcels compiled by the county auditor under section	5513
5713.08 of the Revised Code;	5514

(2) That unpaid taxes, to the extent the assessed value of	5515
the qualified property would have been exempted under the	5516
qualifying enterprise zone agreement, and any penalties and	5517
interest arising from such taxes be abated;	5518

(3) That any amounts paid by the record owner in satisfaction	5519
of taxes from which the qualified property would have been	5520
exempted under the qualifying enterprise zone agreement and in	5521
satisfaction of penalties and interest arising from such taxes be	5522
refunded.	5523

(C) The application shall be made on the current form	5524
prescribed by the Commissioner under section 5715.27 of the	5525
Revised Code and shall also list the name of the county in which	5526
the qualified property is located; the property's legal	5527
description; its assessed value; the amount in dollars of the	5528
unpaid taxes, penalties, and interest for which the record owner	5529
is seeking abatement; the amount paid in satisfaction of taxes,	5530
penalties, and interest for which the record owner is seeking a	5531
refund; the date of acquisition of title to the property; a copy	5532
of the qualifying enterprise zone agreement; and any other	5533
information required by the Commissioner. The county auditor shall	5534
supply any such information in the auditor's possession upon	5535
request of the applicant.	5536

(D) Upon receipt of the application and after consideration	5537
of it, the Commissioner shall determine if the qualified property	5538
meets the qualifications set forth in this section, and if so	5539
shall issue an order directing that the property be placed on the	5540
tax-exempt list of the county for the period and years described	5541
in the qualifying enterprise zone agreement and that the	5542
tax-exempt lists and tax duplicates for those years be corrected	5543
accordingly; that all unpaid taxes from which the qualified	5544
property would have been exempt under the qualifying enterprise	5545
zone agreement, and all penalties and interest arising from such	5546
taxes, be abated; and that all amounts paid by the record owner in	5547
satisfaction of taxes from which the qualified property would have	5548
been exempt under the qualifying enterprise zone agreement, and	5549
penalties and interest arising from such taxes, be refunded. If	5550
the Commissioner finds that the qualified property does not meet	5551
the qualifications set forth in this section, the Commissioner	5552
shall issue an order denying the application.	5553

(E) If the Commissioner finds that the property is not	5554
entitled to tax exemption, to the abatement of unpaid taxes,	5555
penalties, and interest, or to the refund of amounts paid in	5556
satisfaction of taxes, penalties, and interest for any of the	5557
years for which the record owner claims an exemption, abatement,	5558
or refund, the Commissioner shall order the county treasurer of	5559
the county in which the property is located to collect all unpaid	5560
taxes, penalties, and interest due on the property for those years	5561
in accordance with law.	5562

(F) The Commissioner may apply this section to any qualified	5563
property that is the subject of an application for exemption	5564
pending before the Commissioner, or on appeal before the Board of	5565
Tax Appeals, a court of appeals, or the Ohio Supreme Court on the	5566
effective date of this section.	5567

Section 6.  Division (J) of section 5751.20 of the Revised	5568
Code is amended by this act and also by H.B. 59 of the 130th	5569
General Assembly (effective July 1, 2014). The amendments of H.B.	5570
59 are included in this act to confirm the intention to retain	5571
them, but are not intended to be effective until July 1, 2014.	5572