As Reported by the Senate Finance Committee

130th General Assembly Regular Session 2013-2014

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 

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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

5703.05, 5703.056, 5703.059, 5703.21, 5727.47,

3

5727.91, 5735.01, 5735.026, 5735.05, 5735.062,

4

5735.07, 5735.09, 5735.12, 5735.141, 5735.23,

5

5736.01, 5736.02, 5736.03, 5736.04, 5736.06,

6

5736.09, 5736.13, 5743.01, 5743.021, 5743.024,

7

5743.025, 5743.03, 5743.04, 5743.05, 5743.051,

8

5743.112, 5743.52, 5743.65, 5747.08, 5747.98,

9

5751.01, and 5751.20, to enact sections 5703.77,

10

5736.041, and 5736.50, and to repeal sections

11

183.35, 5726.08, 5733.30, 5735.16, 5743.06, and

12

5745.10 of the Revised Code to provide

13

authorization and conditions for the levy and

14

administration of taxes in this state and to make

15

an appropriation.

16

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

Section 1. That sections 122.17, 122.171, 122.86, 166.21,	17
718.15, 718.151, 3734.905, 4921.13, 4921.19, 5703.05, 5703.056,	18
5703.059, 5703.21, 5727.47, 5727.91, 5735.01, 5735.026, 5735.05,	19
5735.062, 5735.07, 5735.09, 5735.12, 5735.141, 5735.23, 5736.01,	20
5736.02, 5736.03, 5736.04, 5736.06, 5736.09, 5736.13, 5743.01,	21
5743.021, 5743.024, 5743.025, 5743.03, 5743.04, 5743.05, 5743.051,	22
5743.112, 5743.52, 5743.65, 5747.08, 5747.98, 5751.01, and 5751.20	23
be amended and sections 5703.77, 5736.041, and 5736.50 of the	24
Revised Code be enacted to read as follows:	25

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

26

(1) "Income tax revenue" means the total amount withheld	27
under section 5747.06 of the Revised Code by the taxpayer during	28
the taxable year, or during the calendar year that includes the	29
tax period, from the compensation of each employee or each	30
home-based employee employed in the project to the extent the	31
employee's withholdings are not used to determine the credit under	32
section 122.171 of the Revised Code. "Income tax revenue" excludes	33
amounts withheld before the day the taxpayer becomes eligible for	34
the credit.	35

(2) "Baseline income tax revenue" means income tax revenue	36
except that the applicable withholding period is the twelve months	37
immediately preceding the date the tax credit authority approves	38
the taxpayer's application or the date the tax credit authority	39
receives the recommendation described in division (C)(2)(a) of	40
this section, whichever occurs first, multiplied by the sum of one	41
plus an annual pay increase factor to be determined by the tax	42
credit authority. If the taxpayer becomes eligible for the credit	43
after the first day of the taxpayer's taxable year or after the	44
first day of the calendar year that includes the tax period, the	45
taxpayer's baseline income tax revenue for the first such taxable	46
or calendar year of credit eligibility shall be reduced in	47
proportion to the number of days during the taxable or calendar	48
year for which the taxpayer was not eligible for the credit. For	49
subsequent taxable or calendar years, "baseline income tax	50
revenue" equals the unreduced baseline income tax revenue for the	51
preceding taxable or calendar year multiplied by the sum of one	52
plus the pay increase factor.	53

(3) "Excess income tax revenue" means income tax revenue	54
minus baseline income tax revenue.	55

(4) "Home-based employee" means an employee whose services	56
are performed primarily from the employee's residence in this	57
state exclusively for the benefit of the project and whose rate of	58
pay is at least one hundred thirty-one per cent of the federal	59
minimum wage under 29 U.S.C. 206.	60

(B) The tax credit authority may make grants under this	61
section to foster job creation in this state. Such a grant shall	62
take the form of a refundable credit allowed against the tax	63
imposed by section 5725.18, 5726.02, 5729.03, 5733.06, 5736.02, or	64
5747.02 or levied under Chapter 5751. of the Revised Code. The	65
credit shall be claimed for the taxable years or tax periods	66
specified in the taxpayer's agreement with the tax credit	67
authority under division (D) of this section. With respect to	68
taxes imposed under section 5726.02, 5733.06, or 5747.02 or	69
Chapter 5751. of the Revised Code, the credit shall be claimed in	70
the order required under section 5726.98, 5733.98, 5747.98, or	71
5751.98 of the Revised Code. The amount of the credit available	72
for a taxable year or for a calendar year that includes a tax	73
period equals the excess income tax revenue for that year	74
multiplied by the percentage specified in the agreement with the	75
tax credit authority. Any credit granted under this section	76
against the tax imposed by section 5733.06 or 5747.02 of the	77
Revised Code, to the extent not fully utilized against such tax	78
for taxable years ending prior to 2008, shall automatically be	79
converted without any action taken by the tax credit authority to	80
a credit against the tax levied under Chapter 5751. of the Revised	81
Code for tax periods beginning on or after July 1, 2008, provided	82
that the person to whom the credit was granted is subject to such	83
tax. The converted credit shall apply to those calendar years in	84
which the remaining taxable years specified in the agreement end.	85

(C)(1) A taxpayer or potential taxpayer who proposes a	86
project to create new jobs in this state may apply to the tax	87
credit authority to enter into an agreement for a tax credit under	88
this section.	89

An application shall not propose to include both home-based	90
employees and employees who are not home-based employees in the	91
computation of income tax revenue for the purposes of the same tax	92
credit agreement. If a taxpayer or potential taxpayer employs both	93
home-based employees and employees who are not home-based	94
employees in a project, the taxpayer shall submit separate	95
applications for separate tax credit agreements for the project,	96
one of which shall include home-based employees in the computation	97
of income tax revenue and one of which shall include all other	98
employees in the computation of income tax revenue.	99

The director of development services shall prescribe the form	100
of the application. After receipt of an application, the authority	101
may enter into an agreement with the taxpayer for a credit under	102
this section if it determines all of the following:	103

(a) The taxpayer's project will increase payroll and income	104
tax revenue;	105

(b) The taxpayer's project is economically sound and will	106
benefit the people of this state by increasing opportunities for	107
employment and strengthening the economy of this state;	108

(c) Receiving the tax credit is a major factor in the	109
taxpayer's decision to go forward with the project.	110

(2)(a) A taxpayer that chooses to begin the project prior to	111
receiving the determination of the authority may, upon submitting	112
the taxpayer's application to the authority, request that the	113
chief investment officer of the nonprofit corporation formed under	114
section 187.01 of the Revised Code and the director review the	115
taxpayer's application and recommend to the authority that the	116
taxpayer's application be considered. As soon as possible after	117
receiving such a request, the chief investment officer and the	118
director shall review the taxpayer's application and, if they	119
determine that the application warrants consideration by the	120
authority, make that recommendation to the authority not later	121
than six months after the application is received by the	122
authority.	123

(b) The authority shall consider any taxpayer's application	124
for which it receives a recommendation under division (C)(2)(a) of	125
this section. If the authority determines that the taxpayer does	126
not meet all of the criteria set forth in division (C)(1) of this	127
section, the authority and the development services agency shall	128
proceed in accordance with rules adopted by the director pursuant	129
to division (I) of this section.	130

(D) An agreement under this section shall include all of the	131
following:	132

(1) A detailed description of the project that is the subject	133
of the agreement;	134

(2)(a) The term of the tax credit, which, except as provided	135
in division (D)(2)(b) of this section, shall not exceed fifteen	136
years, and the first taxable year, or first calendar year that	137
includes a tax period, for which the credit may be claimed;	138

(b) If the tax credit is computed on the basis of home-based	139
employees, the term of the credit shall expire on or before the	140
last day of the taxable or calendar year ending before the	141
beginning of the seventh year after September 6, 2012, the	142
effective date of H.B. 327 of the 129th general assembly.	143

(3) A requirement that the taxpayer shall maintain operations	144
at the project location for at least the greater of seven years or	145
the term of the credit plus three years;	146

(4) The percentage, as determined by the tax credit	147
authority, of excess income tax revenue that will be allowed as	148
the amount of the credit for each taxable year or for each	149
calendar year that includes a tax period;	150

(5) The pay increase factor to be applied to the taxpayer's	151
baseline income tax revenue;	152

(6) A requirement that the taxpayer annually shall report to	153
the director of development services employment, tax withholding,	154
investment, the provision of health care benefits and tuition	155
reimbursement if required in the agreement, and other information	156
the director needs to perform the director's duties under this	157
section;	158

(7) A requirement that the director of development services	159
annually review the information reported under division (D)(6) of	160
this section and verify compliance with the agreement; if the	161
taxpayer is in compliance, a requirement that the director issue a	162
certificate to the taxpayer stating that the information has been	163
verified and identifying the amount of the credit that may be	164
claimed for the taxable or calendar year;	165

(8) A provision providing that the taxpayer may not relocate	166
a substantial number of employment positions from elsewhere in	167
this state to the project location unless the director of	168
development services determines that the legislative authority of	169
the county, township, or municipal corporation from which the	170
employment positions would be relocated has been notified by the	171
taxpayer of the relocation.	172

For purposes of this section, the movement of an employment	173
position from one political subdivision to another political	174
subdivision shall be considered a relocation of an employment	175
position unless the employment position in the first political	176
subdivision is replaced.	177

(9) If the tax credit is computed on the basis of home-based	178
employees, that the tax credit may not be claimed by the taxpayer	179
until the taxable year or tax period in which the taxpayer employs	180
at least two hundred employees more than the number of employees	181
the taxpayer employed on June 30, 2011.	182

(E) If a taxpayer fails to meet or comply with any condition	183
or requirement set forth in a tax credit agreement, the tax credit	184
authority may amend the agreement to reduce the percentage or term	185
of the tax credit. The reduction of the percentage or term may	186
take effect in the current taxable or calendar year.	187

(F) Projects that consist solely of point-of-final-purchase	188
retail facilities are not eligible for a tax credit under this	189
section. If a project consists of both point-of-final-purchase	190
retail facilities and nonretail facilities, only the portion of	191
the project consisting of the nonretail facilities is eligible for	192
a tax credit and only the excess income tax revenue from the	193
nonretail facilities shall be considered when computing the amount	194
of the tax credit. If a warehouse facility is part of a	195
point-of-final-purchase retail facility and supplies only that	196
facility, the warehouse facility is not eligible for a tax credit.	197
Catalog distribution centers are not considered	198
point-of-final-purchase retail facilities for the purposes of this	199
division, and are eligible for tax credits under this section.	200

(G) Financial statements and other information submitted to	201
the development services agency or the tax credit authority by an	202
applicant or recipient of a tax credit under this section, and any	203
information taken for any purpose from such statements or	204
information, are not public records subject to section 149.43 of	205
the Revised Code. However, the chairperson of the authority may	206
make use of the statements and other information for purposes of	207
issuing public reports or in connection with court proceedings	208
concerning tax credit agreements under this section. Upon the	209
request of the tax commissioner or, if the applicant or recipient	210
is an insurance company, upon the request of the superintendent of	211
insurance, the chairperson of the authority shall provide to the	212
commissioner or superintendent any statement or information	213
submitted by an applicant or recipient of a tax credit in	214
connection with the credit. The commissioner or superintendent	215
shall preserve the confidentiality of the statement or	216
information.	217

(H) A taxpayer claiming a credit under this section shall	218
submit to the tax commissioner or, if the taxpayer is an insurance	219
company, to the superintendent of insurance, a copy of the	220
director of development services' certificate of verification	221
under division (D)(7) of this section with the taxpayer's tax	222
report or return for the taxable year or for the calendar year	223
that includes the tax period. Failure to submit a copy of the	224
certificate with the report or return does not invalidate a claim	225
for a credit if the taxpayer submits a copy of the certificate to	226
the commissioner or superintendent within sixty days after the	227
commissioner or superintendent requests it.	228

(I) The director of development services, after consultation	229
with the tax commissioner and the superintendent of insurance and	230
in accordance with Chapter 119. of the Revised Code, shall adopt	231
rules necessary to implement this section, including rules that	232
establish a procedure to be followed by the tax credit authority	233
and the development services agency in the event the authority	234
considers a taxpayer's application for which it receives a	235
recommendation under division (C)(2)(a) of this section but does	236
not approve it. The rules may provide for recipients of tax	237
credits under this section to be charged fees to cover	238
administrative costs of the tax credit program. The fees collected	239
shall be credited to the business assistance fund created in	240
section 122.174 of the Revised Code. At the time the director	241
gives public notice under division (A) of section 119.03 of the	242
Revised Code of the adoption of the rules, the director shall	243
submit copies of the proposed rules to the chairpersons of the	244
standing committees on economic development in the senate and the	245
house of representatives.	246

(J) For the purposes of this section, a taxpayer may include	247
a partnership, a corporation that has made an election under	248
subchapter S of chapter one of subtitle A of the Internal Revenue	249
Code, or any other business entity through which income flows as a	250
distributive share to its owners. A partnership, S-corporation, or	251
other such business entity may elect to pass the credit received	252
under this section through to the persons to whom the income or	253
profit of the partnership, S-corporation, or other entity is	254
distributed. The election shall be made on the annual report	255
required under division (D)(6) of this section. The election	256
applies to and is irrevocable for the credit for which the report	257
is submitted. If the election is made, the credit shall be	258
apportioned among those persons in the same proportions as those	259
in which the income or profit is distributed.	260

(K) If the director of development services determines that a	261
taxpayer who has received a credit under this section is not	262
complying with the requirement under division (D)(3) of this	263
section, the director shall notify the tax credit authority of the	264
noncompliance. After receiving such a notice, and after giving the	265
taxpayer an opportunity to explain the noncompliance, the tax	266
credit authority may require the taxpayer to refund to this state	267
a portion of the credit in accordance with the following:	268

(1) If the taxpayer maintained operations at the project	269
location for a period less than or equal to the term of the	270
credit, an amount not exceeding one hundred per cent of the sum of	271
any credits allowed and received under this section;	272

(2) If the taxpayer maintained operations at the project	273
location for a period longer than the term of the credit, but less	274
than the greater of seven years or the term of the credit plus	275
three years, an amount not exceeding seventy-five per cent of the	276
sum of any credits allowed and received under this section.	277

In determining the portion of the tax credit to be refunded	278
to this state, the tax credit authority shall consider the effect	279
of market conditions on the taxpayer's project and whether the	280
taxpayer continues to maintain other operations in this state.	281
After making the determination, the authority shall certify the	282
amount to be refunded to the tax commissioner or superintendent of	283
insurance, as appropriate. If the amount is certified to the	284
commissioner, the commissioner shall make an assessment for that	285
amount against the taxpayer under Chapter 5726., 5733., 5736.,	286
5747., or 5751. of the Revised Code. If the amount is certified to	287
the superintendent, the superintendent shall make an assessment	288
for that amount against the taxpayer under Chapter 5725. or 5729.	289
of the Revised Code. The time limitations on assessments under	290
those chapters do not apply to an assessment under this division,	291
but the commissioner or superintendent, as appropriate, shall make	292
the assessment within one year after the date the authority	293
certifies to the commissioner or superintendent the amount to be	294
refunded.	295

(L) On or before the first day of August each year, the	296
director of development services shall submit a report to the	297
governor, the president of the senate, and the speaker of the	298
house of representatives on the tax credit program under this	299
section. The report shall include information on the number of	300
agreements that were entered into under this section during the	301
preceding calendar year, a description of the project that is the	302
subject of each such agreement, and an update on the status of	303
projects under agreements entered into before the preceding	304
calendar year.	305

(M) There is hereby created the tax credit authority, which	306
consists of the director of development services and four other	307
members appointed as follows: the governor, the president of the	308
senate, and the speaker of the house of representatives each shall	309
appoint one member who shall be a specialist in economic	310
development; the governor also shall appoint a member who is a	311
specialist in taxation. Of the initial appointees, the members	312
appointed by the governor shall serve a term of two years; the	313
members appointed by the president of the senate and the speaker	314
of the house of representatives shall serve a term of four years.	315
Thereafter, terms of office shall be for four years. Initial	316
appointments to the authority shall be made within thirty days	317
after January 13, 1993. Each member shall serve on the authority	318
until the end of the term for which the member was appointed.	319
Vacancies shall be filled in the same manner provided for original	320
appointments. Any member appointed to fill a vacancy occurring	321
prior to the expiration of the term for which the member's	322
predecessor was appointed shall hold office for the remainder of	323
that term. Members may be reappointed to the authority. Members of	324
the authority shall receive their necessary and actual expenses	325
while engaged in the business of the authority. The director of	326
development services shall serve as chairperson of the authority,	327
and the members annually shall elect a vice-chairperson from among	328
themselves. Three members of the authority constitute a quorum to	329
transact and vote on the business of the authority. The majority	330
vote of the membership of the authority is necessary to approve	331
any such business, including the election of the vice-chairperson.	332

The director of development services may appoint a	333
professional employee of the development services agency to serve	334
as the director's substitute at a meeting of the authority. The	335
director shall make the appointment in writing. In the absence of	336
the director from a meeting of the authority, the appointed	337
substitute shall serve as chairperson. In the absence of both the	338
director and the director's substitute from a meeting, the	339
vice-chairperson shall serve as chairperson.	340

(N) For purposes of the credits granted by this section	341
against the taxes imposed under sections 5725.18 and 5729.03 of	342
the Revised Code, "taxable year" means the period covered by the	343
taxpayer's annual statement to the superintendent of insurance.	344

(O) On or before the first day of March of each of the five	345
calendar years beginning with 2014, each taxpayer subject to an	346
agreement with the tax credit authority under this section on the	347
basis of home-based employees shall report the number of	348
home-based employees and other employees employed by the taxpayer	349
in this state to the development services agency.	350

(P) On or before the first day of January of 2019, the	351
director of development services shall submit a report to the	352
governor, the president of the senate, and the speaker of the	353
house of representatives on the effect of agreements entered into	354
under this section in which the taxpayer included home-based	355
employees in the computation of income tax revenue. The report	356
shall include information on the number of such agreements that	357
were entered into in the preceding six years, a description of the	358
projects that were the subjects of such agreements, and an	359
analysis of nationwide home-based employment trends, including the	360
number of home-based jobs created from July 1, 2011, through June	361
30, 2017, and a description of any home-based employment tax	362
incentives provided by other states during that time.	363

(Q) The director of development services may require any	364
agreement entered into under this section for a tax credit	365
computed on the basis of home-based employees to contain a	366
provision that the taxpayer makes available health care benefits	367
and tuition reimbursement to all employees.	368

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

369

(1) "Capital investment project" means a plan of investment	370
at a project site for the acquisition, construction, renovation,	371
or repair of buildings, machinery, or equipment, or for	372
capitalized costs of basic research and new product development	373
determined in accordance with generally accepted accounting	374
principles, but does not include any of the following:	375

(a) Payments made for the acquisition of personal property	376
through operating leases;	377

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

378

(c) Payments made to a related member as defined in section	379
5733.042 of the Revised Code or to a consolidated elected taxpayer	380
or a combined taxpayer as defined in section 5751.01 of the	381
Revised Code.	382

(2) "Eligible business" means a taxpayer and its related	383
members with Ohio operations satisfying all of the following:	384

(a) The taxpayer employs at least five hundred full-time	385
equivalent employees or has an annual payroll of at least	386
thirty-five million dollars at the time the tax credit authority	387
grants the tax credit under this section;	388

(b) The taxpayer makes or causes to be made payments for the	389
capital investment project of one of the following:	390

(i) If the taxpayer is engaged at the project site primarily	391
as a manufacturer, at least fifty million dollars in the aggregate	392
at the project site during a period of three consecutive calendar	393
years, including the calendar year that includes a day of the	394
taxpayer's taxable year or tax period with respect to which the	395
credit is granted;	396

(ii) If the taxpayer is engaged at the project site primarily	397
in significant corporate administrative functions, as defined by	398
the director of development services by rule, at least twenty	399
million dollars in the aggregate at the project site during a	400
period of three consecutive calendar years including the calendar	401
year that includes a day of the taxpayer's taxable year or tax	402
period with respect to which the credit is granted;	403

(iii) If the taxpayer is applying to enter into an agreement	404
for a tax credit authorized under division (B)(3) of this section,	405
at least five million dollars in the aggregate at the project site	406
during a period of three consecutive calendar years, including the	407
calendar year that includes a day of the taxpayer's taxable year	408
or tax period with respect to which the credit is granted.	409

(c) The taxpayer had a capital investment project reviewed	410
and approved by the tax credit authority as provided in divisions	411
(C), (D), and (E) of this section.	412

(3) "Full-time equivalent employees" means the quotient	413
obtained by dividing the total number of hours for which employees	414
were compensated for employment in the project by two thousand	415
eighty. "Full-time equivalent employees" shall exclude hours that	416
are counted for a credit under section 122.17 of the Revised Code.	417

(4) "Income tax revenue" means the total amount withheld	418
under section 5747.06 of the Revised Code by the taxpayer during	419
the taxable year, or during the calendar year that includes the	420
tax period, from the compensation of all employees employed in the	421
project whose hours of compensation are included in calculating	422
the number of full-time equivalent employees.	423

(5) "Manufacturer" has the same meaning as in section	424
5739.011 of the Revised Code.	425

(6) "Project site" means an integrated complex of facilities	426
in this state, as specified by the tax credit authority under this	427
section, within a fifteen-mile radius where a taxpayer is	428
primarily operating as an eligible business.	429

(7) "Related member" has the same meaning as in section	430
5733.042 of the Revised Code as that section existed on the	431
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd	432
general assembly, September 29, 1997.	433

(8) "Taxable year" includes, in the case of a domestic or	434
foreign insurance company, the calendar year ending on the	435
thirty-first day of December preceding the day the superintendent	436
of insurance is required to certify to the treasurer of state	437
under section 5725.20 or 5729.05 of the Revised Code the amount of	438
taxes due from insurance companies.	439

(B) The tax credit authority created under section 122.17 of	440
the Revised Code may grant tax credits under this section for the	441
purpose of fostering job retention in this state. Upon application	442
by an eligible business and upon consideration of the	443
recommendation of the director of budget and management, tax	444
commissioner, the superintendent of insurance in the case of an	445
insurance company, and director of development services under	446
division (C) of this section, the tax credit authority may grant	447
the following credits against the tax imposed by section 5725.18,	448
5726.02, 5729.03, 5733.06, 5736.02, 5747.02, or 5751.02 of the	449
Revised Code:	450

(1) A nonrefundable credit to an eligible business;

451

(2) A refundable credit to an eligible business meeting the	452
following conditions, provided that the director of budget and	453
management, tax commissioner, superintendent of insurance in the	454
case of an insurance company, and director of development services	455
have recommended the granting of the credit to the tax credit	456
authority before July 1, 2011:	457

(a) The business retains at least one thousand full-time	458
equivalent employees at the project site.	459

(b) The business makes or causes to be made payments for a	460
capital investment project of at least twenty-five million dollars	461
in the aggregate at the project site during a period of three	462
consecutive calendar years, including the calendar year that	463
includes a day of the business' taxable year or tax period with	464
respect to which the credit is granted.	465

(c) In 2010, the business received a written offer of	466
financial incentives from another state of the United States that	467
the director determines to be sufficient inducement for the	468
business to relocate the business' operations from this state to	469
that state.	470

(3) A refundable credit to an eligible business with a total	471
annual payroll of at least twenty million dollars, provided that	472
the tax credit authority grants the tax credit on or after July 1,	473
2011, and before January 1, 2014.	474

The credits authorized in divisions (B)(1), (2), and (3) of	475
this section may be granted for a period up to fifteen taxable	476
years or, in the case of the tax levied by section 5736.02 or	477
5751.02 of the Revised Code, for a period of up to fifteen	478
calendar years. The credit amount for a taxable year or a calendar	479
year that includes the tax period for which a credit may be	480
claimed equals the income tax revenue for that year multiplied by	481
the percentage specified in the agreement with the tax credit	482
authority. The percentage may not exceed seventy-five per cent.	483
The credit shall be claimed in the order required under section	484
5725.98, 5726.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the	485
Revised Code. In determining the percentage and term of the	486
credit, the tax credit authority shall consider both the number of	487
full-time equivalent employees and the value of the capital	488
investment project. The credit amount may not be based on the	489
income tax revenue for a calendar year before the calendar year in	490
which the tax credit authority specifies the tax credit is to	491
begin, and the credit shall be claimed only for the taxable years	492
or tax periods specified in the eligible business' agreement with	493
the tax credit authority. In no event shall the credit be claimed	494
for a taxable year or tax period terminating before the date	495
specified in the agreement. Any credit granted under this section	496
against the tax imposed by section 5733.06 or 5747.02 of the	497
Revised Code, to the extent not fully utilized against such tax	498
for taxable years ending prior to 2008, shall automatically be	499
converted without any action taken by the tax credit authority to	500
a credit against the tax levied under Chapter 5751. of the Revised	501
Code for tax periods beginning on or after July 1, 2008, provided	502
that the person to whom the credit was granted is subject to such	503
tax. The converted credit shall apply to those calendar years in	504
which the remaining taxable years specified in the agreement end.	505

If a nonrefundable credit allowed under division (B)(1) of	506
this section for a taxable year or tax period exceeds the	507
taxpayer's tax liability for that year or period, the excess may	508
be carried forward for the three succeeding taxable or calendar	509
years, but the amount of any excess credit allowed in any taxable	510
year or tax period shall be deducted from the balance carried	511
forward to the succeeding year or period.	512

(C) A taxpayer that proposes a capital investment project to	513
retain jobs in this state may apply to the tax credit authority to	514
enter into an agreement for a tax credit under this section. The	515
director of development services shall prescribe the form of the	516
application. After receipt of an application, the authority shall	517
forward copies of the application to the director of budget and	518
management, the tax commissioner, the superintendent of insurance	519
in the case of an insurance company, and the director of	520
development services, each of whom shall review the application to	521
determine the economic impact the proposed project would have on	522
the state and the affected political subdivisions and shall submit	523
a summary of their determinations and recommendations to the	524
authority.	525

(D) Upon review and consideration of the determinations and	526
recommendations described in division (C) of this section, the tax	527
credit authority may enter into an agreement with the taxpayer for	528
a credit under this section if the authority determines all of the	529
following:	530

(1) The taxpayer's capital investment project will result in	531
the retention of employment in this state.	532

(2) The taxpayer is economically sound and has the ability to	533
complete the proposed capital investment project.	534

(3) The taxpayer intends to and has the ability to maintain	535
operations at the project site for at least the greater of (a) the	536
term of the credit plus three years, or (b) seven years.	537

(4) Receiving the credit is a major factor in the taxpayer's	538
decision to begin, continue with, or complete the project.	539

(5) If the taxpayer is applying to enter into an agreement	540
for a tax credit authorized under division (B)(3) of this section,	541
the taxpayer's capital investment project will be located in the	542
political subdivision in which the taxpayer maintains its	543
principal place of business or maintains a unit or division with	544
at least four thousand two hundred employees at the project site.	545

(E) An agreement under this section shall include all of the	546
following:	547

(1) A detailed description of the project that is the subject	548
of the agreement, including the amount of the investment, the	549
period over which the investment has been or is being made, the	550
number of full-time equivalent employees at the project site, and	551
the anticipated income tax revenue to be generated.	552

(2) The term of the credit, the percentage of the tax credit,	553
the maximum annual value of tax credits that may be allowed each	554
year, and the first year for which the credit may be claimed.	555

(3) A requirement that the taxpayer maintain operations at	556
the project site for at least the greater of (a) the term of the	557
credit plus three years, or (b) seven years.	558

(4)(a) In the case of a credit granted under division (B)(1)	559
of this section, a requirement that the taxpayer retain at least	560
five hundred full-time equivalent employees at the project site	561
and within this state for the entire term of the credit, or a	562
requirement that the taxpayer maintain an annual payroll of at	563
least thirty-five million dollars for the entire term of the	564
credit;	565

(b) In the case of a credit granted under division (B)(2) of	566
this section, a requirement that the taxpayer retain at least one	567
thousand full-time equivalent employees at the project site and	568
within this state for the entire term of the credit;	569

(c) In the case of a credit granted under division (B)(3) of	570
this section, either of the following:	571

(i) A requirement that the taxpayer retain at least five	572
hundred full-time equivalent employees at the project site and	573
within this state for the entire term of the credit and a	574
requirement that the taxpayer maintain an annual payroll of at	575
least twenty million dollars for the entire term of the credit;	576

(ii) A requirement that the taxpayer maintain an annual	577
payroll of at least thirty-five million dollars for the entire	578
term of the credit.	579

(5) A requirement that the taxpayer annually report to the	580
director of development services employment, tax withholding,	581
capital investment, and other information the director needs to	582
perform the director's duties under this section.	583

(6) A requirement that the director of development services	584
annually review the annual reports of the taxpayer to verify the	585
information reported under division (E)(5) of this section and	586
compliance with the agreement. Upon verification, the director	587
shall issue a certificate to the taxpayer stating that the	588
information has been verified and identifying the amount of the	589
credit for the taxable year or calendar year that includes the tax	590
period. In determining the number of full-time equivalent	591
employees, no position shall be counted that is filled by an	592
employee who is included in the calculation of a tax credit under	593
section 122.17 of the Revised Code.	594

(7) A provision providing that the taxpayer may not relocate	595
a substantial number of employment positions from elsewhere in	596
this state to the project site unless the director of development	597
services determines that the taxpayer notified the legislative	598
authority of the county, township, or municipal corporation from	599
which the employment positions would be relocated.	600

For purposes of this section, the movement of an employment	601
position from one political subdivision to another political	602
subdivision shall be considered a relocation of an employment	603
position unless the movement is confined to the project site. The	604
transfer of an employment position from one political subdivision	605
to another political subdivision shall not be considered a	606
relocation of an employment position if the employment position in	607
the first political subdivision is replaced by another employment	608
position.	609

(8) A waiver by the taxpayer of any limitations periods	610
relating to assessments or adjustments resulting from the	611
taxpayer's failure to comply with the agreement.	612

(F) If a taxpayer fails to meet or comply with any condition	613
or requirement set forth in a tax credit agreement, the tax credit	614
authority may amend the agreement to reduce the percentage or term	615
of the credit. The reduction of the percentage or term may take	616
effect in the current taxable or calendar year.	617

(G) Financial statements and other information submitted to	618
the department of development services or the tax credit authority	619
by an applicant for or recipient of a tax credit under this	620
section, and any information taken for any purpose from such	621
statements or information, are not public records subject to	622
section 149.43 of the Revised Code. However, the chairperson of	623
the authority may make use of the statements and other information	624
for purposes of issuing public reports or in connection with court	625
proceedings concerning tax credit agreements under this section.	626
Upon the request of the tax commissioner, or the superintendent of	627
insurance in the case of an insurance company, the chairperson of	628
the authority shall provide to the commissioner or superintendent	629
any statement or other information submitted by an applicant for	630
or recipient of a tax credit in connection with the credit. The	631
commissioner or superintendent shall preserve the confidentiality	632
of the statement or other information.	633

(H) A taxpayer claiming a tax credit under this section shall	634
submit to the tax commissioner or, in the case of an insurance	635
company, to the superintendent of insurance, a copy of the	636
director of development services' certificate of verification	637
under division (E)(6) of this section with the taxpayer's tax	638
report or return for the taxable year or for the calendar year	639
that includes the tax period. Failure to submit a copy of the	640
certificate with the report or return does not invalidate a claim	641
for a credit if the taxpayer submits a copy of the certificate to	642
the commissioner or superintendent within sixty days after the	643
commissioner or superintendent requests it.	644

(I) For the purposes of this section, a taxpayer may include	645
a partnership, a corporation that has made an election under	646
subchapter S of chapter one of subtitle A of the Internal Revenue	647
Code, or any other business entity through which income flows as a	648
distributive share to its owners. A partnership, S-corporation, or	649
other such business entity may elect to pass the credit received	650
under this section through to the persons to whom the income or	651
profit of the partnership, S-corporation, or other entity is	652
distributed. The election shall be made on the annual report	653
required under division (E)(5) of this section. The election	654
applies to and is irrevocable for the credit for which the report	655
is submitted. If the election is made, the credit shall be	656
apportioned among those persons in the same proportions as those	657
in which the income or profit is distributed.	658

(J) If the director of development services determines that a	659
taxpayer that received a certificate under division (E)(6) of this	660
section is not complying with the requirement under division	661
(E)(3) of this section, the director shall notify the tax credit	662
authority of the noncompliance. After receiving such a notice, and	663
after giving the taxpayer an opportunity to explain the	664
noncompliance, the authority may terminate the agreement and	665
require the taxpayer, or any related member or members that	666
claimed the tax credit under division (N) of this section, to	667
refund to the state all or a portion of the credit claimed in	668
previous years, as follows:	669

(1) If the taxpayer maintained operations at the project site	670
for less than or equal to the term of the credit, an amount not to	671
exceed one hundred per cent of the sum of any tax credits allowed	672
and received under this section.	673

(2) If the taxpayer maintained operations at the project site	674
longer than the term of the credit, but less than the greater of	675
(a) the term of the credit plus three years, or (b) seven years,	676
the amount required to be refunded shall not exceed seventy-five	677
per cent of the sum of any tax credits allowed and received under	678
this section.	679

In determining the portion of the credit to be refunded to	680
this state, the authority shall consider the effect of market	681
conditions on the taxpayer's project and whether the taxpayer	682
continues to maintain other operations in this state. After making	683
the determination, the authority shall certify the amount to be	684
refunded to the tax commissioner or the superintendent of	685
insurance. If the taxpayer, or any related member or members who	686
claimed the tax credit under division (N) of this section, is not	687
an insurance company, the commissioner shall make an assessment	688
for that amount against the taxpayer under Chapter 5726., 5733.,	689
5736., 5747., or 5751. of the Revised Code. If the taxpayer, or	690
any related member or members that claimed the tax credit under	691
division (N) of this section, is an insurance company, the	692
superintendent of insurance shall make an assessment under section	693
5725.222 or 5729.102 of the Revised Code. The time limitations on	694
assessments under those chapters and sections do not apply to an	695
assessment under this division, but the commissioner or	696
superintendent shall make the assessment within one year after the	697
date the authority certifies to the commissioner or superintendent	698
the amount to be refunded.	699

(K) The director of development services, after consultation	700
with the tax commissioner and the superintendent of insurance and	701
in accordance with Chapter 119. of the Revised Code, shall adopt	702
rules necessary to implement this section. The rules may provide	703
for recipients of tax credits under this section to be charged	704
fees to cover administrative costs of the tax credit program. The	705
fees collected shall be credited to the business assistance fund	706
created in section 122.174 of the Revised Code. At the time the	707
director gives public notice under division (A) of section 119.03	708
of the Revised Code of the adoption of the rules, the director	709
shall submit copies of the proposed rules to the chairpersons of	710
the standing committees on economic development in the senate and	711
the house of representatives.	712

(L) On or before the first day of August of each year, the	713
director of development services shall submit a report to the	714
governor, the president of the senate, and the speaker of the	715
house of representatives on the tax credit program under this	716
section. The report shall include information on the number of	717
agreements that were entered into under this section during the	718
preceding calendar year, a description of the project that is the	719
subject of each such agreement, and an update on the status of	720
projects under agreements entered into before the preceding	721
calendar year.	722

(M)(1) The aggregate amount of tax credits issued under	723
division (B)(1) of this section during any calendar year for	724
capital investment projects reviewed and approved by the tax	725
credit authority may not exceed the following amounts:	726

(a) For 2010, thirteen million dollars;

727

(b) For 2011 through 2023, the amount of the limit for the	728
preceding calendar year plus thirteen million dollars;	729

(c) For 2024 and each year thereafter, one hundred	730
ninety-five million dollars.	731

(2) The aggregate amount of tax credits authorized under	732
divisions (B)(2) and (3) of this section and allowed to be claimed	733
by taxpayers in any calendar year for capital improvement projects	734
reviewed and approved by the tax credit authority in 2011, 2012,	735
and 2013 combined shall not exceed twenty-five million dollars. An	736
amount equal to the aggregate amount of credits first authorized	737
in calendar year 2011, 2012, and 2013 may be claimed over the	738
ensuing period up to fifteen years, subject to the terms of	739
individual tax credit agreements.	740

The limitations in division (M) of this section do not apply	741
to credits for capital investment projects approved by the tax	742
credit authority before July 1, 2009.	743

(N) This division applies only to an eligible business that	744
is part of an affiliated group that includes a diversified savings	745
and loan holding company or a grandfathered unitary savings and	746
loan holding company, as those terms are defined in section	747
5726.01 of the Revised Code. Notwithstanding any contrary	748
provision of the agreement between such an eligible business and	749
the tax credit authority, any credit granted under this section	750
against the tax imposed by section 5725.18, 5729.03, 5733.06,	751
5747.02, or 5751.02 of the Revised Code to the eligible business,	752
at the election of the eligible business and without any action by	753
the tax credit authority, may be shared with any member or members	754
of the affiliated group that includes the eligible business, which	755
member or members may claim the credit against the taxes imposed	756
by section 5725.18, 5726.02, 5729.03, 5733.06, 5747.02, or 5751.02	757
of the Revised Code. Credits shall be claimed by the eligible	758
business in sequential order, as applicable, first claiming the	759
credits to the fullest extent possible against the tax that the	760
certificate holder is subject to, then against the tax imposed by,	761
sequentially, section 5729.03, 5725.18, 5747.02, 5751.02, and	762
lastly 5726.02 of the Revised Code. The credits may be allocated	763
among the members of the affiliated group in such manner as the	764
eligible business elects, but subject to the sequential order	765
required under this division. This division applies to credits	766
granted before, on, or after March 27, 2013, the effective date of	767
H.B. 510 of the 129th general assembly. Credits granted before	768
that effective date that are shared and allocated under this	769
division may be claimed in those calendar years in which the	770
remaining taxable years specified in the agreement end.	771

As used in this division, "affiliated group" means a group of	772
two or more persons with fifty per cent or greater of the value of	773
each person's ownership interests owned or controlled directly,	774
indirectly, or constructively through related interests by common	775
owners during all or any portion of the taxable year, and the	776
common owners. "Affiliated group" includes, but is not limited to,	777
any person eligible to be included in a consolidated elected	778
taxpayer group under section 5751.011 of the Revised Code or a	779
combined taxpayer group under section 5751.012 of the Revised	780
Code.	781

Sec. 122.86.  (A) As used in this section and section 5747.81	782
of the Revised Code:	783

(1) "Small business enterprise" means a corporation,	784
pass-through entity, or other person satisfying all of the	785
following:	786

(a) At the time of a qualifying investment, the enterprise	787
meets all of the following requirements:	788

(i) Has no outstanding tax or other liabilities owed to the	789
state;	790

(ii) Is in good standing with the secretary of state, if the	791
enterprise is required to be registered with the secretary;	792

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

793

(iv) Is not engaged in any illegal activity.

794

(b) At the time of a qualifying investment, the enterprise's	795
assets according to generally accepted accounting principles do	796
not exceed fifty million dollars, or its annual sales do not	797
exceed ten million dollars. When making this determination, the	798
assets and annual sales of all of the enterprise's related or	799
affiliated entities shall be included in the calculation.	800

(c) The enterprise employs at least fifty full-time	801
equivalent employees in this state for whom the enterprise is	802
required to withhold income tax under section 5747.06 of the	803
Revised Code, or more than one-half the enterprise's total number	804
of full-time equivalent employees employed anywhere in the United	805
States are employed in this state and are subject to that	806
withholding requirement.	807

(d) The enterprise, within six months after an eligible	808
investor's qualifying investment is made, invests in or incurs	809
cost for one or more of the following in an amount at least equal	810
to the amount of the qualifying investment:	811

(i) Tangible personal property, other than motor vehicles	812
operated on public roads and highways, used in business and	813
physically located in this state from the time of its acquisition	814
by the enterprise until the end of the investor's holding period;	815

(ii) Motor vehicles operated on public roads and highways if,	816
from the time of acquisition by the enterprise until the end of	817
the investor's holding period, the motor vehicles are purchased in	818
this state, registered in this state under Chapter 4503. of the	819
Revised Code, are used primarily for business purposes, and are	820
necessary for the operation of the enterprise's business;	821

(iii) Real property located in this state that is used in	822
business from the time of its acquisition by the enterprise until	823
the end of the holding period;	824

(iv) Intangible personal property, including patents,	825
copyrights, trademarks, service marks, or licenses used in	826
business primarily in this state from the time of its acquisition	827
by the enterprise until the end of the holding period;	828

(v) Compensation for new employees of the enterprise for whom	829
the enterprise is required to withhold income tax under section	830
5747.06 of the Revised Code, not including increased compensation	831
for owners, officers, or managers of the enterprise. For this	832
purpose compensation for new employees includes compensation for	833
newly hired or retained employees.	834

(2) "Qualifying investment" means an investment of money made	835
on or after July 1, 2011, to acquire capital stock or other equity	836
interest in a small business enterprise. "Qualifying investment"	837
does not include either of the following:	838

(a) Any investment of money an eligible investor derives,	839
directly or indirectly, from a grant or loan from the federal	840
government or the state or a political subdivision, including the	841
third frontier program under Chapter 184. of the Revised Code;	842

(b) Any investment of money which is the basis of a tax	843
credit granted under any other section of the Revised Code.	844

(3) "Eligible investor" means an individual, estate, or trust	845
subject to the tax imposed by section 5747.02 of the Revised Code,	846
or a pass-through entity in which such an individual, estate, or	847
trust holds a direct or indirect ownership or other equity	848
interest. To qualify as an eligible investor, the individual,	849
estate, trust, or pass-through entity shall not owe any	850
outstanding tax or other liability to the state at the time of a	851
qualifying investment.	852

(4) "Holding period" means:

853

(a) For qualifying investments made on or after July 1, 2011,	854
but before July 1, 2013, the two-year period beginning on the day	855
the investment was made;	856

(b) For qualifying investments made on or after July 1, 2013,	857
the five-year period beginning on the day the investment wasa	858
qualifying investment is made.	859

(5) "Pass-through entity" has the same meaning as in section	860
5733.04 of the Revised Code.	861

(B) Any eligible investor that makes a qualifying investment	862
in a small business enterprise on or after July 1, 2011, may apply	863
to the director of development services to obtain a small business	864
investment certificate from the director. Alternatively, a small	865
business enterprise may apply on behalf of eligible investors to	866
obtain the certificates for those investors. The director, in	867
consultation with the tax commissioner, shall prescribe the form	868
or manner in which an applicant shall apply for the certificate,	869
devise the form of the certificate, and prescribe any records or	870
other information an applicant shall furnish with the application	871
to evidence the qualifying investment. The applicant shall state	872
the amount of the intended investment. The applicant shall pay an	873
application fee equal to the greater of one-tenth of one per cent	874
of the amount of the intended investment or one hundred dollars.	875

A small business investment certificate entitles the	876
certificate holder to receive a tax credit under section 5747.81	877
of the Revised Code if the certificate holder qualifies for the	878
credit as otherwise provided in this section. If the certificate	879
holder is a pass-through entity, the certificate entitles the	880
entity's equity owners to receive their distributive or	881
proportionate shares of the credit. In any fiscal biennium, an	882
eligible investor may not apply for small business investment	883
certificates representing intended investment amounts in excess of	884
ten million dollars. Such certificates are not transferable.	885

The director of development services may reserve small	886
business investment certificates to qualifying applicants in the	887
order in which the director receives applications, but may issue	888
the certificates as the applications are completed. An application	889
is completed when the director has validated that an eligible	890
investor has made a qualified investment and the small business	891
enterprise has made the appropriate reinvestment of the qualified	892
investment pursuant to the requirements of division (A)(1)(d) of	893
this section. To qualify for a certificate, an eligible investor	894
must satisfy both of the following, subject to the limitation on	895
the amount of qualifying investments for which certificates may be	896
issued under division (C) of this section:	897

(1) The eligible investor makes a qualifying investment on or	898
after July 1, 2011.	899

(2) The eligible investor pledges not to sell or otherwise	900
dispose of the qualifying investment before the conclusion of the	901
applicable holding period.	902

(C)(1) The amount of any eligible investor's qualifying	903
investments for which small business investment certificates may	904
be issued for a fiscal biennium shall not exceed ten million	905
dollars.	906

(2) The director of development services shall not issue a	907
small business investment certificate to an eligible investor	908
representing an amount of qualifying investment in excess of the	909
amount of the intended investment indicated on the investor's	910
application for the certificate.	911

(3) The director of development services shall not issue	912
small business investment certificates in a total amount that	913
would cause the tax credits claimed in any fiscal biennium to	914
exceed one hundred million dollars.	915

(4) The director of development services may issue a small	916
business investment certificate only if both of the following	917
apply at the time of issuance:	918

(a) The small business enterprise meets all the requirements	919
listed in divisions (A)(1)(a)(i) to (iv) of this section;	920

(b) The eligible investor does not owe any outstanding tax or	921
other liability to the state.	922

(D) Before the end of the applicable holding period of a	923
qualifying investment, each enterprise in which a qualifying	924
investment was made for which a small business investment	925
certificate has been issued, upon the request of the director of	926
development services, shall provide to the director records or	927
other evidence satisfactory to the director that the enterprise is	928
a small business enterprise for the purposes of this section. Each	929
enterprise shall also provide annually to the director records or	930
evidence regarding the number of jobs created or retained in the	931
state. No credit may be claimed under this section and section	932
5747.81 of the Revised Code if the director finds that an	933
enterprise is not a small business enterprise for the purposes of	934
this section. The director shall compile and maintain a register	935
of small business enterprises qualifying under this section and	936
shall certify the register to the tax commissioner. The director	937
shall also compile and maintain a record of the number of jobs	938
created or retained as a result of qualifying investments made	939
pursuant to this section.	940

(E) After the conclusion of the applicable holding period for	941
a qualifying investment, a person to whom a small business	942
investment certificate has been issued under this section may	943
claim a credit as provided under section 5747.81 of the Revised	944
Code.	945

(F) The director of development services, in consultation	946
with the tax commissioner, may adopt rules for the administration	947
of this section, including rules governing the following:	948

(1) Documents, records, or other information eligible	949
investors shall provide to the director;	950

(2) Any information a small business enterprise shall provide	951
for the purposes of this section and section 5747.81 of the	952
Revised Code;	953

(3) Determination of the number of full-time equivalent	954
employees of a small business enterprise;	955

(4) Verification of a small business enterprise's investment	956
in tangible personal property and intangible personal property	957
under division (A)(1)(d) of this section, including when such	958
investments have been made and where the property is used in	959
business;	960

(5) Circumstances under which small business enterprises or	961
eligible investors may be subverting the purposes of this section	962
and section 5747.81 of the Revised Code.	963

There is hereby created in the state treasury the InvestOhio	964
support fund. The fund shall consist of the fees paid under	965
division (B) of this section and shall be used by the development	966
services agency to pay the costs of administering the small	967
business investment certificate program established under this	968
section.	969

Sec. 166.21. (A) The director of development services, with	970
the approval of the controlling board and subject to other	971
applicable provisions of this chapter, may lend moneys in the	972
research and development loan fund to persons for the purpose of	973
paying allowable costs of eligible research and development	974
projects, if the director determines that all of the following	975
conditions are met:	976

(1) The project is an eligible research and development	977
project and is economically sound;	978

(2) The amount to be lent from the research and development	979
loan fund will not exceed seventy-five per cent of the total costs	980
of the eligible research and development project;	981

(3) The repayment of the loan from the research and	982
development loan fund will be secured by a mortgage, assignment,	983
pledge, lien provided for under section 9.661 of the Revised Code,	984
or other interest in property or other assets of the borrower, at	985
such level of priority and value as the director considers	986
necessary, provided that, in making such a determination, the	987
director shall take into account the value of any rights granted	988
by the borrower to the director to control the use of any assets	989
of the borrower under the circumstances described in the loan	990
documents.	991

(B) The determinations of the director under division (A) of	992
this section shall be conclusive for purposes of the validity of a	993
loan commitment evidenced by a loan agreement signed by the	994
director.	995

(C) Fees, charges, rates of interest, times of payment of	996
interest and principal, and other terms and conditions of, and	997
security for, loans made from the research and development loan	998
fund shall be such as the director determines to be appropriate	999
and in furtherance of the purpose for which the loans are made.	1000
The moneys used in making loans shall be disbursed from the fund	1001
upon order of the director. Unless otherwise specified in any	1002
indenture or other instrument securing obligations under division	1003
(D) of section 166.08 of the Revised Code, any payments of	1004
principal and interest from loans made from the fund shall be paid	1005
to the fund and used for the purpose of making loans under this	1006
section.	1007

(D)(1) As used in this division, "qualified research and	1008
development loan payments" means payments of principal and	1009
interest on a loan made from the research and development loan	1010
fund.	1011

(2) Each year, the director may, upon request, issue a	1012
certificate to a borrower of moneys from the research and	1013
development loan fund indicating the amount of the qualified	1014
research and development loan payments made by or on behalf of the	1015
borrower during the calendar year immediately preceding the tax	1016
year, as defined in section 5733.04 of the Revised Code, or	1017
taxable year, as defined in section 5747.01 of the Revised Code,	1018
for which the certificate is issued. In addition to indicating the	1019
amount of qualified research and development loan payments, the	1020
certificate shall include a determination of the director that as	1021
of the thirty-first day of December of the calendar year for which	1022
the certificate is issued, the borrower is not in default under	1023
the loan agreement, lease, or other instrument governing repayment	1024
of the loan, including compliance with the job creation and	1025
retention commitments that are part of the qualified research and	1026
development project. If the director determines that a borrower is	1027
in default under the loan agreement, lease, or other instrument	1028
governing repayment of the loan, the director may reduce the	1029
amount, percentage, or term of the credit allowed under section	1030
5733.352, 5747.331, or 5751.52 of the Revised Code with respect to	1031
the certificate issued to the borrower. The director shall not	1032
issue a certificate in an amount that exceeds one hundred fifty	1033
thousand dollars.	1034

(E) The director may take actions necessary or appropriate to	1035
collect or otherwise deal with any loan made under this section.	1036

(F) The director may fix service charges for the making of a	1037
loan. The charges shall be payable at such times and place and in	1038
such amounts and manner as may be prescribed by the director.	1039

(G)(1) There shall be credited to the research and	1040
development loan fund moneys received by this state from the	1041
repayment of loans, including interest thereon, made from the	1042
fund, and moneys received from the sale, lease, or other	1043
disposition of property acquired or constructed with moneys in the	1044
fund derived from the proceeds of the sale of obligations under	1045
section 166.08 of the Revised Code. Moneys in the fund shall be	1046
applied as provided in this chapter pursuant to appropriations	1047
made by the general assembly.	1048

(2) In addition to the requirements in division (G)(1) of	1049
this section, moneys referred to in that division may be deposited	1050
to the credit of separate accounts established by the director of	1051
development services within the research and development loan fund	1052
or in the bond service fund and pledged to the security of	1053
obligations, applied to the payment of bond service charges	1054
without need for appropriation, released from any such pledge and	1055
transferred to the research and development loan fund, all as and	1056
to the extent provided in the bond proceedings pursuant to written	1057
directions of the director of development. Accounts may be	1058
established by the director in the research and development loan	1059
fund for particular projects or otherwise. The director may	1060
withdraw from the fund or, subject to provisions of the applicable	1061
bond proceedings, from any special funds established pursuant to	1062
the bond proceedings, or from any accounts in such funds, any	1063
amounts of investment income required to be rebated and paid to	1064
the federal government in order to maintain the exemption from	1065
federal income taxation of interest on obligations issued under	1066
this chapter, which withdrawal and payment may be made without the	1067
necessity for appropriation.	1068

Sec. 718.15.  A municipal corporation, by ordinance, may	1069
grant a refundable or nonrefundable credit against its tax on	1070
income to a taxpayer that also receives a tax credit under section	1071
122.17 of the Revised Codeto foster job creation in the municipal	1072
corporation. If a credit is granted under this section, it shall	1073
be measured as a percentage of the new income tax revenue the	1074
municipal corporation derives from new employees of the taxpayer	1075
and shall be for a term not exceeding fifteen years. Before the	1076
municipal corporation passes an ordinance granting a credit, the	1077
municipal corporation and the taxpayer shall enter into an	1078
agreement specifying all the conditions of the credit.	1079

Sec. 718.151. A municipal corporation, by ordinance, may	1080
grant a refundable or nonrefundable credit against its tax on	1081
income to a taxpayer that receives a nonrefundable tax credit	1082
under section 122.171 of the Revised Code and may grant a	1083
refundable credit against its tax on income to a taxpayer that	1084
receives a refundable tax credit under that sectionfor the	1085
purpose of fostering job retention in the municipal corporation.	1086
If a credit is granted under this section, it shall be measured as	1087
a percentage of the income tax revenue the municipal corporation	1088
derives from the retained employees of the taxpayer, and shall be	1089
for a term not exceeding fifteen years. Before a municipal	1090
corporation passes an ordinance allowing such a credit, the	1091
municipal corporation and the taxpayer shall enter into an	1092
agreement specifying all the conditions of the credit.	1093

Sec. 3734.905.  (A) The treasurer of state shall refund the	1094
fee imposed by section 3734.901 of the Revised Code paid illegally	1095
or erroneously, or paid on an illegal or erroneous assessment.	1096
Applications for refund shall be filed with the tax commissioner	1097
on a form prescribed by the commissioner, within four years of the	1098
illegal or erroneous payment of the fee.	1099

On the filing of the application, the commissioner shall	1100
determine the amount of refund to which the applicant is entitled.	1101
If the amount is not less than that claimed, the commissioner	1102
shall certify the amount to the director of budget and management	1103
and treasurer of state for payment from the tax refund fund	1104
created by section 5703.052 of the Revised Code. If the amount is	1105
less than that claimed, the commissioner shall proceed in	1106
accordance with section 5703.70 of the Revised Code.	1107

If the application for refund is for fees paid on an illegal	1108
or erroneous assessment, theThe certified amount shall include	1109
interest calculated at the rate per annum prescribed by section	1110
5703.47 of the Revised Code from the date of overpayment to the	1111
date of the commissioner's certification.	1112

(B) When the fee imposed pursuant to section 3734.901 of the	1113
Revised Code has been paid on tires that are sold by a retail	1114
dealer or wholesale distributor to a motor vehicle manufacturer,	1115
or to a wholesale distributor or retail dealer for the purpose of	1116
resale outside this state, the seller in this state is entitled to	1117
a refund of the amount of the fee actually paid on the tires. To	1118
obtain a refund under this division, the seller shall apply to the	1119
tax commissioner, shall furnish documentary evidence satisfactory	1120
to the commissioner that the price paid by the purchaser did not	1121
include the fee, and shall provide the name and address of the	1122
purchaser to the commissioner. The seller shall apply on the form	1123
prescribed by the commissioner, within four years after the date	1124
of the sale. Upon receipt of an application, the commissioner	1125
shall determine the amount of any refund due and shall certify	1126
that amount to the director of budget and management and the	1127
treasurer of state for payment from the tax refund fund created in	1128
section 5703.052 of the Revised Code. The certified amount shall	1129
include interest calculated at the rate per annum prescribed by	1130
section 5703.47 of the Revised Code from the date of overpayment	1131
to the date of the commissioner's certification.	1132

(C) If any person entitled to a refund of fees under this	1133
section, or section 5703.70 of the Revised Code, is indebted to	1134
the state for any tax administered by the tax commissioner, or any	1135
charge, penalties, or interest arising from such tax, the amount	1136
allowable on the application for refund first shall be applied in	1137
satisfaction of the debt.	1138

Sec. 4921.13. (A) The public utilities commission shall adopt	1139
rules applicable to the filing of annual update forms and the	1140
payment of taxes by for-hire motor carriers. The rules shall not	1141
be incompatible with the requirements of the United States	1142
department of transportation. The rules shall at a minimum address	1143
all of the following:	1144

(1) The information and certifications that must be provided	1145
to the commission on an annual update form, including a	1146
certification that the carrier continues to be in compliance with	1147
the applicable laws of this state.	1148

(2) Documentation and information that must be provided	1149
regarding proof of financial responsibility;	1150

(3) The form and manner in which taxes may be paid under	1151
section 4921.19 of the Revised Code.	1152

(B) The rules may address any other information that the	1153
commission determines is necessary to carry out this section.	1154

(C) A for-hire motor carrier shall not be issued aany tax	1155
receipt under division (C) of section 4921.19 of the Revised Code	1156
until all of the following have been satisfied:	1157

(1) A complete and accurate annual update form has been filed	1158
with the commission;	1159

(2) Proof of financial responsibility remains in effect;

1160

(3) All applicable registration fees in accordance with rules	1161
adopted under section 4921.11 of the Revised Code, all applicable	1162
taxes under section 4921.19 of the Revised Code, and any	1163
forfeitures imposed under section 4923.99 of the Revised Code have	1164
been paid in full.	1165

Sec. 4921.19.  (A) Every for-hire motor carrier operating in	1166
this state shall, at the time of the issuance of a certificate of	1167
public convenience and necessity under section 4921.03 of the	1168
Revised Code, pay to the public utilities commission, for and on	1169
behalf of the treasurer of state, the following taxes:	1170

(1) For each motor vehicle used for transporting persons,	1171
thirty dollars;	1172

(2) For each commercial tractor, as defined in section	1173
4501.01 of the Revised Code, used for transporting property,	1174
thirty dollars;	1175

(3) For each other motor vehicle transporting property,	1176
twenty dollars.	1177

(B) Every for-hire motor carrier operating in this state	1178
solely in intrastate commerce shall, annually between the first	1179
day of May and the thirtieth day of June, pay to the commission,	1180
for and on behalf of the treasurer of state, the following taxes:	1181

(1) For each motor vehicle used for transporting persons,	1182
thirty dollars;	1183

(2) For each commercial tractor, as defined in section	1184
4501.01 of the Revised Code, used for transporting property,	1185
thirty dollars;	1186

(3) For each other motor vehicle transporting property,	1187
twenty dollars.	1188

(C) After a for-hire motor carrier has paid the applicable	1189
taxes under division (A) or (B) of this section and met all	1190
applicable requirements under section 4921.03 or division (C) of	1191
section 4921.13 of the Revised Code have been met, the commission	1192
shall issue the carrier a tax receipt for each motor vehicle for	1193
which a tax has been paid under this section. The carrier shall	1194
carry a copy ofkeep the appropriate tax receipt in each motor	1195
vehicle operated by the carrier. The carrier shall maintain the	1196
original copy of the tax receipt at the carrier's primary place of	1197
businesstax receipt records that specify to which motor vehicle	1198
each tax receipt is assigned.	1199

(D) A trailer used by a for-hire motor carrier shall not be	1200
taxed under this section.	1201

(E) The annual tax levied by division (B) of this section	1202
does not apply in those cases where the commission finds that the	1203
movement of agricultural commodities or foodstuffs produced	1204
therefrom requires a temporary and seasonal use of vehicular	1205
equipment for a period of not more than ninety days. In such	1206
event, the tax on the vehicular equipment shall be twenty-five per	1207
cent of the annual tax levied by division (B) of this section. If	1208
any vehicular equipment is used in excess of the ninety-day	1209
period, the annual tax levied by this section shall be paid.	1210

(F) All taxes levied by division (B) of this section shall be	1211
reckoned as from the beginning of the quarter in which the tax	1212
receipt is issued or as from when the use of equipment under any	1213
existing tax receipt began.	1214

(G) The fees for unified carrier registration pursuant to	1215
section 4921.11 of the Revised Code shall be identical to those	1216
established by the unified carrier registration act board as	1217
approved by the federal motor carrier safety administration for	1218
each year.	1219

(H)(1) The fees for uniform registration and a uniform permit	1220
as a carrier of hazardous materials pursuant to section 4921.15 of	1221
the Revised Code shall consist of the following:	1222

(a) A processing fee of fifty dollars;

1223

(b) An apportioned per-truck registration fee, which shall be	1224
calculated by multiplying the percentage of a registrant's	1225
activity in this state times the percentage of the registrant's	1226
business that is hazardous-materials-related, times the number of	1227
vehicles owned or operated by the registrant, times a per-truck	1228
fee determined by order of the commission following public notice	1229
and an opportunity for comment.	1230

(i) The percentage of a registrant's activity in this state	1231
shall be calculated by dividing the number of miles that the	1232
registrant travels in this state under the international	1233
registration plan, pursuant to section 4503.61 of the Revised	1234
Code, by the number of miles that the registrant travels	1235
nationwide under the international registration plan. Registrants	1236
that operate solely within this state shall use one hundred per	1237
cent as their percentage of activity. Registrants that do not	1238
register their vehicles through the international registration	1239
plan shall calculate activity in the state in the same manner as	1240
that required by the international registration plan.	1241

(ii) The percentage of a registrant's business that is	1242
hazardous-materials-related shall be calculated, for	1243
less-than-truckload shipments, by dividing the weight of all the	1244
registrant's hazardous materials shipments by the total weight of	1245
all shipments in the previous year. The percentage of a	1246
registrant's business that is hazardous-materials-related shall be	1247
calculated, for truckload shipments, by dividing the number of	1248
shipments for which placarding, marking of the vehicle, or	1249
manifesting, as appropriate, was required by regulations adopted	1250
under sections 4 to 6 of the "Hazardous Materials Transportation	1251
Uniform Safety Act of 1990," 104 Stat. 3244, 49 U.S.C. App. 1804,	1252
by the total number of the registrant's shipments that transported	1253
any kind of goods in the previous year. A registrant that	1254
transports both less-than-truckload and truckload shipments of	1255
hazardous materials shall calculate the percentage of business	1256
that is hazardous-materials-related on a proportional basis.	1257

(iii) A registrant may utilize fiscal year, or calendar year,	1258
or other current company accounting data, or other publicly	1259
available information, in calculating the percentages required by	1260
divisions (H)(1)(b)(i) and (ii) of this section.	1261

(2) The commission, after notice and opportunity for a	1262
hearing, may assess each carrier a fee for any background	1263
investigation required for the issuance, for the purpose of	1264
section 3734.15 of the Revised Code, of a uniform permit as a	1265
carrier of hazardous wastes and fees related to investigations and	1266
proceedings for the denial, suspension, or revocation of a uniform	1267
permit as a carrier of hazardous materials. The fees shall not	1268
exceed the reasonable costs of the investigations and proceedings.	1269
The fee for a background investigation for a uniform permit as a	1270
carrier of hazardous wastes shall be six hundred dollars plus the	1271
costs of obtaining any necessary information not included in the	1272
permit application, to be calculated at the rate of thirty dollars	1273
per hour, not exceeding six hundred dollars, plus any fees payable	1274
to obtain necessary information.	1275

(I) The application fee for a certificate for the	1276
transportation of household goods issued pursuant to sections	1277
4921.30 to 4921.38 of the Revised Code shall be based on the	1278
certificate holder's gross revenue, in the prior year, for the	1279
intrastate transportation of household goods. The commission shall	1280
establish, by order, ranges of gross revenue and the fee for each	1281
range. The fees shall be set in amounts sufficient to carry out	1282
the purposes of sections 4921.30 to 4921.38 and 4923.99 of the	1283
Revised Code and, to the extent necessary, the commission shall	1284
make changes to the fee structure to ensure that neither over nor	1285
under collection of the fees occurs. The fees shall also take into	1286
consideration the revenue generated from the assessment of	1287
forfeitures under section 4923.99 of the Revised Code regarding	1288
the consumer protection provisions applicable to for-hire motor	1289
carriers engaged in the transportation of household goods.	1290

(J) The fees and taxes provided under this section shall be	1291
in addition to taxes, fees, and charges fixed and exacted by other	1292
sections of the Revised Code, except the assessments required by	1293
section 4905.10 of the Revised Code, but all fees, license fees,	1294
annual payments, license taxes, or taxes or other money exactions,	1295
except the general property tax, assessed, charged, fixed, or	1296
exacted by local authorities such as municipal corporations,	1297
townships, counties, or other local boards, or the officers of	1298
such subdivisions are illegal and, are superseded by sections	1299
4503.04 and 4905.03 and Chapter 4921. of the Revised Code. On	1300
compliance with sections 4503.04 and 4905.03 and Chapter 4921. of	1301
the Revised Code, all local ordinances, resolutions, by laws	1302
bylaws, and rules in force shall cease to be operative as to the	1303
persons in compliance, except that such local subdivisions may	1304
make reasonable local police regulations within their respective	1305
boundaries not inconsistent with sections 4503.04 and 4905.03 and	1306
Chapter 4921. of the Revised Code.	1307

Sec. 5703.05.  All powers, duties, and functions of the	1308
department of taxation are vested in and shall be performed by the	1309
tax commissioner, which powers, duties, and functions shall	1310
include, but shall not be limited to, the following:	1311

(A) Prescribing all blank forms which the department is	1312
authorized to prescribe, and to provide such forms and distribute	1313
the same as required by law and the rules of the department.	1314

(B) Exercising the authority provided by law, including	1315
orders from bankruptcy courts, relative to remitting or refunding	1316
taxes or assessments, including penalties and interest thereon,	1317
illegally or erroneously assessed or collected, or for any other	1318
reason overpaid, and in addition, the commissioner may on written	1319
application of any person, firm, or corporation claiming to have	1320
overpaid to the treasurer of state at any time within five years	1321
prior to the making of such application any tax payable under any	1322
law which the department of taxation is required to administer	1323
which does not contain any provision for refund, or on the	1324
commissioner's own motion investigate the facts and make in	1325
triplicate a written statement of the commissioner's findings,	1326
and, if the commissioner finds that there has been an overpayment,	1327
issue in triplicate a certificate of abatement payable to the	1328
taxpayer, the taxpayer's assigns, or legal representative which	1329
shows the amount of the overpayment and the kind of tax overpaid.	1330
One copy of such statement shall be entered on the journal of the	1331
commissioner, one shall be certified to the attorney general, and	1332
one certified copy shall be delivered to the taxpayer. All copies	1333
of the certificate of abatement shall be transmitted to the	1334
attorney general, and if the attorney general finds it to be	1335
correct the attorney general shall so certify on each copy, and	1336
deliver one copy to the taxpayer, one copy to the commissioner,	1337
and the third copy to the treasurer of state. Except as provided	1338
in section 5725.08 of the Revised Code, the taxpayer's copy of any	1339
certificates of abatement may be tendered by the payee or	1340
transferee thereof to the treasurer of state, or to the	1341
commissioner on behalf of the treasurer, as payment, to the extent	1342
of the amount thereof, of any tax payable to the treasurer of	1343
state.	1344

(C) Exercising the authority provided by law relative to	1345
consenting to the compromise and settlement of tax claims;	1346

(D) Exercising the authority provided by law relative to the	1347
use of alternative tax bases by taxpayers in the making of	1348
personal property tax returns;	1349

(E) Exercising the authority provided by law relative to	1350
authorizing the prepayment of taxes on retail sales of tangible	1351
personal property or on the storage, use, or consumption of	1352
personal property, and waiving the collection of such taxes from	1353
the consumers;	1354

(F) Exercising the authority provided by law to revoke	1355
licenses;	1356

(G) Maintaining a continuous study of the practical operation	1357
of all taxation and revenue laws of the state, the manner in which	1358
and extent to which such laws provide revenues for the support of	1359
the state and its political subdivisions, the probable effect upon	1360
such revenue of possible changes in existing laws, and the	1361
possible enactment of measures providing for other forms of	1362
taxation. For this purpose the commissioner may establish and	1363
maintain a division of research and statistics, and may appoint	1364
necessary employees who shall be in the unclassified civil	1365
service; the results of such study shall be available to the	1366
members of the general assembly and the public.	1367

(H) Making all tax assessments, valuations, findings,	1368
determinations, computations, and orders the department of	1369
taxation is by law authorized and required to make and, pursuant	1370
to time limitations provided by law, on the commissioner's own	1371
motion, reviewing, redetermining, or correcting any tax	1372
assessments, valuations, findings, determinations, computations,	1373
or orders the commissioner has made, but the commissioner shall	1374
not review, redetermine, or correct any tax assessment, valuation,	1375
finding, determination, computation, or order which the	1376
commissioner has made as to which an appeal or application for	1377
rehearing, review, redetermination, or correction has been filed	1378
with the board of tax appeals, unless such appeal or application	1379
is withdrawn by the appellant or applicant or dismissed;	1380

(I) Appointing not more than five deputy tax commissioners,	1381
who, under such regulations as the rules of the department of	1382
taxation prescribe, may act for the commissioner in the	1383
performance of such duties as the commissioner prescribes in the	1384
administration of the laws which the commissioner is authorized	1385
and required to administer, and who shall serve in the	1386
unclassified civil service at the pleasure of the commissioner,	1387
but if a person who holds a position in the classified service is	1388
appointed, it shall not affect the civil service status of such	1389
person. The commissioner may designate not more than two of the	1390
deputy commissioners to act as commissioner in case of the	1391
absence, disability, or recusal of the commissioner or vacancy in	1392
the office of commissioner. The commissioner may adopt rules	1393
relating to the order of precedence of such designated deputy	1394
commissioners and to their assumption and administration of the	1395
office of commissioner.	1396

(J) Appointing and prescribing the duties of all other	1397
employees of the department of taxation necessary in the	1398
performance of the work of the department which the tax	1399
commissioner is by law authorized and required to perform, and	1400
creating such divisions or sections of employees as, in the	1401
commissioner's judgment, is proper;	1402

(K) Organizing the work of the department, which the	1403
commissioner is by law authorized and required to perform, so	1404
that, in the commissioner's judgment, an efficient and economical	1405
administration of the laws will result;	1406

(L) Maintaining a journal, which is open to public	1407
inspection, in which the tax commissioner shall keep a record of	1408
all final determinations of the commissioner;	1409

(M) Adopting and promulgating, in the manner provided by	1410
section 5703.14 of the Revised Code, all rules of the department,	1411
including rules for the administration of sections 3517.16,	1412
3517.17, and 5747.081 of the Revised Code;	1413

(N) Destroying any or all returns or assessment certificates	1414
in the manner authorized by law;	1415

(O) Adopting rules, in accordance with division (B) of	1416
section 325.31 of the Revised Code, governing the expenditure of	1417
moneys from the real estate assessment fund under that division;	1418

(P) Informing taxpayers in a timely manner to resolve credit	1419
account balances as required by section 5703.77 of the Revised	1420
Code.	1421

Sec. 5703.056.  (A) As used in any section of the Revised	1422
Code that requires the tax commissioner to use certified mail or	1423
personal service or that requires or permits a payment to be made	1424
or a document to be submitted to the tax commissioner or the board	1425
of tax appeals by mail or personal service, and as used in any	1426
section of Chapter 3734., 3769., 4303., or 4305. or Title LVII of	1427
the Revised Code that requires or permits a payment to be made or	1428
a document to be submitted to the treasurer of state by mail:	1429

(1) "Certified mail," "express mail," "United States mail,"	1430
"United States postal service," and similar terms include any	1431
delivery service authorized pursuant to division (B) of this	1432
section.	1433

(2) "Postmark date," "date of postmark," and similar terms	1434
include the date recorded and marked in the manner described in	1435
division (B)(3) of this section.	1436

(B) The tax commissioner may authorize the use of a delivery	1437
service for the delivery of any payment or document described in	1438
division (A) of this section if the commissioner finds that the	1439
delivery service:	1440

(1) Is available to the general public;

1441

(2) Is at least as timely and reliable on a regular basis as	1442
the United States postal service;	1443

(3) Records electronically to a database kept in the regular	1444
course of its business, and marks on the cover in which the	1445
payment or document is enclosed, the date on which the payment or	1446
document was given to the delivery service for delivery;	1447

(4) Records electronically to a database kept in the regular	1448
course of its business the date on which the payment or document	1449
was given by the delivery service to the person who signed the	1450
receipt of delivery and the name of the person who signed the	1451
receipt; and	1452

(5) Meets any other criteria that the tax commissioner may by	1453
rule prescribe.	1454

(C) In any section of the Revised Code referring to the date	1455
any payment or document is received by the tax commissioner by	1456
mail, personal service, or electronically or by a person receiving	1457
a document or payment from the tax commissioner by mail, the	1458
payment or document shall be considered to be received on one of	1459
the following dates, as applicable, except as provided in section	1460
5703.053 or 5703.37 of the Revised Code:	1461

(1) For a document or payment sent by certified mail, express	1462
mail, United States mail, foreign mail, or a delivery service	1463
authorized for use under division (B) of this section, the date of	1464
the postmark placed by the postal or delivery service on the	1465
sender's receipt or, if the sender was not issued a postmarked	1466
sender's receipt, the date of the postmark placed by the postal or	1467
delivery service on the package containing the payment or	1468
document.	1469

(2) For personal service to the tax commissioner, the date	1470
the payment or document is received in any of the tax	1471
commissioner's offices during business hours.	1472

(3) For a document filed or sent electronically or a payment	1473
made electronically, the date on the timestamp assigned by the	1474
first electronic system receiving that payment or document.	1475

(D) As used in divisions (A) and (C) of this section	1476
"electronically" includes by facsimile, if applicable.	1477

Sec. 5703.059. (A) The tax commissioner may adopt rules	1478
requiring returns, including any accompanying schedule or	1479
statement, for any of the following taxestax or fee administered	1480
by the commissioner to be filed electronically using the Ohio	1481
business gateway as defined in section 718.051 of the Revised	1482
Code, filed telephonically using the system known as the Ohio	1483
telefile system, or filed by any other electronic means prescribed	1484
by the commissioner:	1485

(1) Employer income tax withholding under Chapter 5747. of	1486
the Revised Code;	1487

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

1488

(3) Cigarette and tobacco product tax under Chapter 5743. of	1489
the Revised Code;	1490

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

1491

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

1492

(6) Commercial activity tax under Chapter 5751. of the	1493
Revised Code;	1494

(7) Financial institutions tax under Chapter 5726. of the	1495
Revised Code;	1496

(8) Motor fuel receipts tax under Chapter 5736. of the	1497
Revised Code;	1498

(9) Horse-racing taxes under Chapter 3769. of the Revised	1499
Code.	1500

(B) The tax commissioner may adopt rules requiring any	1501
payment of tax shown on such a return to be due to be made	1502
electronically in a manner approved by the commissioner.	1503

(C) A rule adopted under this section does not apply to	1504
returns or reports filed or payments made before six months after	1505
the effective date of the rule. The commissioner shall publicize	1506
any new electronic filing requirement on the department's web	1507
site. The commissioner shall educate the public of the requirement	1508
through seminars, workshops, conferences, or other outreach	1509
activities.	1510

(D) Any person required to file returns and make payments	1511
electronically under rules adopted under this section may apply to	1512
the commissioner, on a form prescribed by the commissioner, to be	1513
excused from that requirement. For good cause shown, the	1514
commissioner may excuse the applicant from the requirement and	1515
permit the applicant to file the returns or reports or make the	1516
payments required under this section by nonelectronic means.	1517

Sec. 5703.21.  (A) Except as provided in divisions (B) and	1518
(C) of this section, no agent of the department of taxation,	1519
except in the agent's report to the department or when called on	1520
to testify in any court or proceeding, shall divulge any	1521
information acquired by the agent as to the transactions,	1522
property, or business of any person while acting or claiming to	1523
act under orders of the department. Whoever violates this	1524
provision shall thereafter be disqualified from acting as an	1525
officer or employee or in any other capacity under appointment or	1526
employment of the department.	1527

(B)(1) For purposes of an audit pursuant to section 117.15 of	1528
the Revised Code, or an audit of the department pursuant to	1529
Chapter 117. of the Revised Code, or an audit, pursuant to that	1530
chapter, the objective of which is to express an opinion on a	1531
financial report or statement prepared or issued pursuant to	1532
division (A)(7) or (9) of section 126.21 of the Revised Code, the	1533
officers and employees of the auditor of state charged with	1534
conducting the audit shall have access to and the right to examine	1535
any state tax returns and state tax return information in the	1536
possession of the department to the extent that the access and	1537
examination are necessary for purposes of the audit. Any	1538
information acquired as the result of that access and examination	1539
shall not be divulged for any purpose other than as required for	1540
the audit or unless the officers and employees are required to	1541
testify in a court or proceeding under compulsion of legal	1542
process. Whoever violates this provision shall thereafter be	1543
disqualified from acting as an officer or employee or in any other	1544
capacity under appointment or employment of the auditor of state.	1545

(2) For purposes of an internal audit pursuant to section	1546
126.45 of the Revised Code, the officers and employees of the	1547
office of internal audit in the office of budget and management	1548
charged with directing the internal audit shall have access to and	1549
the right to examine any state tax returns and state tax return	1550
information in the possession of the department to the extent that	1551
the access and examination are necessary for purposes of the	1552
internal audit. Any information acquired as the result of that	1553
access and examination shall not be divulged for any purpose other	1554
than as required for the internal audit or unless the officers and	1555
employees are required to testify in a court or proceeding under	1556
compulsion of legal process. Whoever violates this provision shall	1557
thereafter be disqualified from acting as an officer or employee	1558
or in any other capacity under appointment or employment of the	1559
office of internal audit.	1560

(3) As provided by section 6103(d)(2) of the Internal Revenue	1561
Code, any federal tax returns or federal tax information that the	1562
department has acquired from the internal revenue service, through	1563
federal and state statutory authority, may be disclosed to the	1564
auditor of state or the office of internal audit solely for	1565
purposes of an audit of the department.	1566

(4) For purposes of Chapter 3739. of the Revised Code, an	1567
agent of the department of taxation may share information with the	1568
division of state fire marshal that the agent finds during the	1569
course of an investigation.	1570

(C) Division (A) of this section does not prohibit any of the	1571
following:	1572

(1) Divulging information contained in applications,	1573
complaints, and related documents filed with the department under	1574
section 5715.27 of the Revised Code or in applications filed with	1575
the department under section 5715.39 of the Revised Code;	1576

(2) Providing information to the office of child support	1577
within the department of job and family services pursuant to	1578
section 3125.43 of the Revised Code;	1579

(3) Disclosing to the motor vehicle repair board any	1580
information in the possession of the department that is necessary	1581
for the board to verify the existence of an applicant's valid	1582
vendor's license and current state tax identification number under	1583
section 4775.07 of the Revised Code;	1584

(4) Providing information to the administrator of workers'	1585
compensation pursuant to sections 4123.271 and 4123.591 of the	1586
Revised Code;	1587

(5) Providing to the attorney general information the	1588
department obtains under division (J) of section 1346.01 of the	1589
Revised Code;	1590

(6) Permitting properly authorized officers, employees, or	1591
agents of a municipal corporation from inspecting reports or	1592
information pursuant to rules adopted under section 5745.16 of the	1593
Revised Code;	1594

(7) Providing information regarding the name, account number,	1595
or business address of a holder of a vendor's license issued	1596
pursuant to section 5739.17 of the Revised Code, a holder of a	1597
direct payment permit issued pursuant to section 5739.031 of the	1598
Revised Code, or a seller having a use tax account maintained	1599
pursuant to section 5741.17 of the Revised Code, or information	1600
regarding the active or inactive status of a vendor's license,	1601
direct payment permit, or seller's use tax account;	1602

(8) Releasing invoices or invoice information furnished under	1603
section 4301.433 of the Revised Code pursuant to that section;	1604

(9) Providing to a county auditor notices or documents	1605
concerning or affecting the taxable value of property in the	1606
county auditor's county. Unless authorized by law to disclose	1607
documents so provided, the county auditor shall not disclose such	1608
documents;	1609

(10) Providing to a county auditor sales or use tax return or	1610
audit information under section 333.06 of the Revised Code;	1611

(11) Subject to section 4301.441 of the Revised Code,	1612
disclosing to the appropriate state agency information in the	1613
possession of the department of taxation that is necessary to	1614
verify a permit holder's gallonage or noncompliance with taxes	1615
levied under Chapter 4301. or 4305. of the Revised Code;	1616

(12) Disclosing to the department of natural resources	1617
information in the possession of the department of taxation that	1618
is necessary for the department of taxation to verify the	1619
taxpayer's compliance with section 5749.02 of the Revised Code or	1620
to allow the department of natural resources to enforce Chapter	1621
1509. of the Revised Code;	1622

(13) Disclosing to the department of job and family services,	1623
industrial commission, and bureau of workers' compensation	1624
information in the possession of the department of taxation solely	1625
for the purpose of identifying employers that misclassify	1626
employees as independent contractors or that fail to properly	1627
report and pay employer tax liabilities. The department of	1628
taxation shall disclose only such information that is necessary to	1629
verify employer compliance with law administered by those	1630
agencies.	1631

(14) Disclosing to the Ohio casino control commission	1632
information in the possession of the department of taxation that	1633
is necessary to verify a casino operator's compliance with section	1634
5747.063 or 5753.02 of the Revised Code and sections related	1635
thereto;	1636

(15) Disclosing to the state lottery commission information	1637
in the possession of the department of taxation that is necessary	1638
to verify a lottery sales agent's compliance with section 5747.064	1639
of the Revised Code.	1640

(16) Disclosing to the development services agency	1641
information in the possession of the department of taxation that	1642
is necessary to ensure compliance with the laws of this state	1643
governing taxation and to verify information reported to the	1644
development services agency for the purpose of evaluating	1645
potential tax credits, grants, or loans. Such information shall	1646
not include information received from the internal revenue service	1647
the disclosure of which is prohibited by section 6103 of the	1648
Internal Revenue Code. No officer, employee, or agent of the	1649
development services agency shall disclose any information	1650
provided to the development services agency by the department of	1651
taxation under division (C)(16) of this section except when	1652
disclosure of the information is necessary for, and made solely	1653
for the purpose of facilitating, the evaluation of potential tax	1654
credits, grants, or loans.	1655

Sec. 5703.77.  (A) As used in this section:

1656

(1) "Taxpayer" means a person subject to or previously	1657
subject to a tax or fee, a person that remits a tax or fee, or a	1658
person required to or previously required to withhold or collect	1659
and remit a tax or fee on behalf of another person.	1660

(2) "Tax or fee" means a tax or fee administered by the tax	1661
commissioner.	1662

(3) "Credit account balance" means the amount of a tax or fee	1663
that a taxpayer remits to the state in excess of the amount	1664
required to be remitted, after accounting for factors applicable	1665
to the taxpayer such as accelerated payments, estimated payments,	1666
tax credits, and tax credit balances that may be carried forward.	1667

(4) "Tax debt" means an unpaid tax or fee or any unpaid	1668
penalty, interest, or additional charge on such a tax or fee due	1669
the state.	1670

(B) As soon as practicable, but not later than sixty days	1671
before the expiration of the period of time during which a	1672
taxpayer may file a refund application for a tax or fee, the tax	1673
commissioner shall review the taxpayer's accounts for the tax or	1674
fee and notify the taxpayer of any credit account balance for	1675
which the commissioner is required to issue a refund if the	1676
taxpayer were to file a refund application for that balance,	1677
regardless of whether the taxpayer files a refund application or	1678
amended return with respect to that tax or fee. The notice shall	1679
be made using contact information for the taxpayer on file with	1680
the commissioner.	1681

(C) Notwithstanding sections 128.47, 3734.905, 4307.05,	1682
5726.30, 5727.28, 5727.42, 5727.91, 5728.061, 5735.122, 5736.08,	1683
5739.07, 5739.104, 5741.10, 5743.05, 5743.53, 5747.11, 5749.08,	1684
5751.08, 5753.06, and any other section of the Revised Code	1685
governing refunds of taxes or fees, the commissioner may apply the	1686
amount of any credit account balance for which the commissioner is	1687
required to issue a refund if the taxpayer were to file a refund	1688
application for that balance as a credit against the taxpayer's	1689
liability for the tax or fee in the taxpayer's next reporting	1690
period for that tax or fee or issue a refund of that credit	1691
account balance to the taxpayer, subject to division (D) of this	1692
section.	1693

(D) Before issuing a refund to a taxpayer under division (C)	1694
of this section, the tax commissioner shall withhold from that	1695
refund the amount of any of the taxpayer's tax debt certified to	1696
the attorney general under section 131.02 of the Revised Code and	1697
the amount of the taxpayer's liability, if any, for a tax or fee.	1698
The commissioner shall apply any amount withheld first in	1699
satisfaction of the amount of the taxpayer's certified tax debt	1700
and then in satisfaction of the taxpayer's liability.	1701

(E) The tax commissioner may adopt rules to administer this	1702
section.	1703

Sec. 5727.47.  (A) Notice of each assessment certified	1704
pursuant to section 5727.23 or 5727.38 of the Revised Code shall	1705
be mailed to the public utility, and its mailing shall be	1706
prima-facie evidence of its receipt by the public utility to which	1707
it is addressed. With the notice, the tax commissioner shall	1708
provide instructions on how to petition for reassessment and	1709
request a hearing on the petition. If a public utility objects to	1710
any assessment certified to it pursuant to such sections, it may	1711
file with the commissioner, either personally or by certified	1712
mail, within sixty days after the mailing of the notice of	1713
assessment a written petition for reassessment signed by the	1714
utility's authorized agent having knowledge of the facts. IfThe	1715
date the commissioner receives the petition is filed by certified	1716
mail, the date of the United States postmark placed on the	1717
sender's receipt by the postal employee to whom the petition is	1718
presented shall be treated asshall be considered the date of	1719
filing. The petition shall indicate the utility's objections, but	1720
additional objections may be raised in writing if received by the	1721
commissioner prior to the date shown on the final determination.	1722

In the case of a petition seeking a reduction in taxable	1723
value filed with respect to an assessment issued under section	1724
5727.23 of the Revised Code, the petitioner shall state in the	1725
petition the total amount of reduction in taxable value sought by	1726
the petitioner. If the petitioner objects to the percentage of	1727
true value at which taxable property is assessed by the	1728
commissioner, the petitioner shall state in the petition the total	1729
amount of reduction in taxable value sought both with and without	1730
regard to the objection pertaining to the percentage of true value	1731
at which its taxable property is assessed. If a petitioner objects	1732
to the commissioner's apportionment of the taxable value of the	1733
petitioner's taxable property, the petitioner shall distinctly	1734
state in the petition that the petitioner objects to the	1735
commissioner's apportionment, and, within forty-five days after	1736
filing the petition for reassessment, shall submit the	1737
petitioner's proposed apportionment of the taxable value of its	1738
taxable property among taxing districts. If a petitioner that	1739
objects to the commissioner's apportionment fails to state its	1740
objections to that apportionment in its petition for reassessment	1741
or fails to submit its proposed apportionment within forty-five	1742
days after filing the petition for reassessment, the commissioner	1743
shall dismiss the petitioner's objection to the commissioner's	1744
apportionment, and the taxable value of the petitioner's taxable	1745
property, subject to any adjustment to taxable value pursuant to	1746
the petition or appeal, shall be apportioned in the manner used by	1747
the commissioner in the preliminary or amended preliminary	1748
assessment issued under section 5727.23 of the Revised Code.	1749

If an additional objection seeking a reduction in taxable	1750
value in excess of the reduction stated in the original petition	1751
is properly and timely raised with respect to an assessment issued	1752
under section 5727.23 of the Revised Code, the petitioner shall	1753
state the total amount of the reduction in taxable value sought in	1754
the additional objection both with and without regard to any	1755
reduction in taxable value pertaining to the percentage of true	1756
value at which taxable property is assessed. If a petitioner fails	1757
to state the reduction in taxable value sought in the original	1758
petition or in additional objections properly raised after the	1759
petition is filed, the commissioner shall notify the petitioner of	1760
the failure by certified mail. If the petitioner fails to notify	1761
the commissioner in writing of the reduction in taxable value	1762
sought in the petition or in an additional objection within thirty	1763
days after receiving the commissioner's notice, the commissioner	1764
shall dismiss the petition or the additional objection in which	1765
that reduction is sought.	1766

(B)(1) Subject to divisions (B)(2) and (3) of this section, a	1767
public utility filing a petition for reassessment regarding an	1768
assessment issued under section 5727.23 or 5727.38 of the Revised	1769
Code shall pay the tax with respect to the assessment objected to	1770
as required by law. The acceptance of any tax payment by the	1771
treasurer of state or any county treasurer shall not prejudice any	1772
claim for taxes on final determination by the commissioner or	1773
final decision by the board of tax appeals or any court.	1774

(2) If a public utility properly and timely files a petition	1775
for reassessment regarding an assessment issued under section	1776
5727.23 of the Revised Code, the petitioner shall pay the tax as	1777
prescribed by divisions (B)(2)(a), (b), and (c) of this section:	1778

(a) If the petitioner does not object to the commissioner's	1779
apportionment of the taxable value of the petitioner's taxable	1780
property, the petitioner is not required to pay the part of the	1781
tax otherwise due on the taxable value that the petitioner seeks	1782
to have reduced, subject to division (B)(2)(c) of this section.	1783

(b) If the petitioner objects to the commissioner's	1784
apportionment of the taxable value of the petitioner's taxable	1785
property, the petitioner is not required to pay the tax otherwise	1786
due on the part of the taxable value apportioned to any taxing	1787
district that the petitioner objects to, subject to division	1788
(B)(2)(c) of this section. If, pursuant to division (A) of this	1789
section, the petitioner has, in a proper and timely manner,	1790
apportioned taxable value to a taxing district to which the	1791
commissioner did not apportion the petitioner's taxable value, the	1792
petitioner shall pay the tax due on the taxable value that the	1793
petitioner has apportioned to the taxing district, subject to	1794
division (B)(2)(c) of this section.	1795

(c) If a petitioner objects to the percentage of true value	1796
at which taxable property is assessed by the commissioner, the	1797
petitioner shall pay the tax due on the basis of the percentage of	1798
true value at which the public utility's taxable property is	1799
assessed by the commissioner. In any case, the petitioner's	1800
payment of tax shall not be less than the amount of tax due based	1801
on the taxable value reflected on the last appeal notice issued by	1802
the commissioner under division (C) of this section. Until the	1803
county auditor receives notification under division (E) of this	1804
section and proceeds under section 5727.471 of the Revised Code to	1805
issue any refund that is found to be due, the county auditor shall	1806
not issue a refund for any increase in the reduction in taxable	1807
value that is sought by a petitioner later than forty-five days	1808
after the petitioner files the original petition as required under	1809
division (A) of this section.	1810

(3) Any part of the tax that, under division (B)(2)(a) or (b)	1811
of this section, is not paid shall be collected upon receipt of	1812
the notification as provided in section 5727.471 of the Revised	1813
Code with interest thereon computed in the same manner as interest	1814
is computed under division (E) of section 5715.19 of the Revised	1815
Code, subject to any correction of the assessment by the	1816
commissioner under division (E) of this section or the final	1817
judgment of the board of tax appeals or a court to which the	1818
board's final judgment is appealed. The penalty imposed under	1819
section 323.121 of the Revised Code shall apply only to the unpaid	1820
portion of the tax if the petitioner's tax payment is less than	1821
the amount of tax due based on the taxable value reflected on the	1822
last appeal notice issued by the commissioner under division (C)	1823
of this section.	1824

(C) Upon receipt of a properly filed petition for	1825
reassessment, the tax commissioner shall notify the treasurer of	1826
state or the auditor of each county to which the assessment	1827
objected to has been certified. In the case of a petition with	1828
respect to an assessment issued under section 5727.23 of the	1829
Revised Code, the commissioner shall issue an appeal notice within	1830
thirty days after receiving the amount of the taxable value	1831
reduction and apportionment changes sought by the petitioner in	1832
the original petition or in any additional objections properly and	1833
timely raised by the petitioner. The appeal notice shall indicate	1834
the amount of the reduction in taxable value sought in the	1835
petition or in the additional objections and the extent to which	1836
the reduction in taxable value and any change in apportionment	1837
requested by the petitioner would affect the commissioner's	1838
apportionment of the taxable value among taxing districts in the	1839
county as shown in the assessment. If a petitioner is seeking a	1840
reduction in taxable value on the basis of a lower percentage of	1841
true value than the percentage at which the commissioner assessed	1842
the petitioner's taxable property, the appeal notice shall	1843
indicate the reduction in taxable value sought by the petitioner	1844
without regard to the reduction sought on the basis of the lower	1845
percentage and shall indicate that the petitioner is required to	1846
pay tax on the reduced taxable value determined without regard to	1847
the reduction sought on the basis of a lower percentage of true	1848
value, as provided under division (B)(2)(c) of this section. The	1849
appeal notice shall include a statement that the reduced taxable	1850
value and the apportionment indicated in the notice are not final	1851
and are subject to adjustment by the commissioner or by the board	1852
of tax appeals or a court on appeal. If the commissioner finds an	1853
error in the appeal notice, the commissioner may amend the notice,	1854
but the notice is only for informational and tax payment purposes;	1855
the notice is not subject to appeal by any person. The	1856
commissioner also shall mail a copy of the appeal notice to the	1857
petitioner. Upon the request of a taxing authority, the county	1858
auditor may disclose to the taxing authority the extent to which a	1859
reduction in taxable value sought by a petitioner would affect the	1860
apportionment of taxable value to the taxing district or districts	1861
under the taxing authority's jurisdiction, but such a disclosure	1862
does not constitute a notice required by law to be given for the	1863
purpose of section 5717.02 of the Revised Code.	1864

(D) If the petitioner requests a hearing on the petition, the	1865
tax commissioner shall assign a time and place for the hearing on	1866
the petition and notify the petitioner of such time and place, but	1867
the commissioner may continue the hearing from time to time as	1868
necessary.	1869

(E) The tax commissioner may make corrections to the	1870
assessment as the commissioner finds proper. The commissioner	1871
shall serve a copy of the commissioner's final determination on	1872
the petitioner in the manner provided in section 5703.37 of the	1873
Revised Code. The commissioner's decision in the matter shall be	1874
final, subject to appeal under section 5717.02 of the Revised	1875
Code. The commissioner also shall transmit a copy of the final	1876
determination to the treasurer of state or applicable county	1877
auditor. In the absence of any further appeal, or when a decision	1878
of the board of tax appeals or of any court to which the decision	1879
has been appealed becomes final, the commissioner shall notify the	1880
public utility and, as appropriate, the treasurer of state who	1881
shall proceed under section 5727.42 of the Revised Code, or the	1882
applicable county auditor who shall proceed under section 5727.471	1883
of the Revised Code.	1884

The notification made under this division is not subject to	1885
further appeal.	1886

(F) On appeal, no adjustment shall be made in the tax	1887
commissioner's assessment issued under section 5727.23 of the	1888
Revised Code that reduces the taxable value of a petitioner's	1889
taxable property by an amount that exceeds the reduction sought by	1890
the petitioner in its petition for reassessment or in any	1891
additional objections properly and timely raised after the	1892
petition is filed with the commissioner.	1893

Sec. 5727.91.  (A) The treasurer of state shall refund the	1894
amount of tax paid under section 5727.81 or 5727.811 of the	1895
Revised Code that was paid illegally or erroneously, or paid on an	1896
illegal or erroneous assessment. A natural gas distribution	1897
company, an electric distribution company, or a self-assessing	1898
purchaser shall file an application for a refund with the tax	1899
commissioner on a form prescribed by the commissioner, within four	1900
years of the illegal or erroneous payment of the tax.	1901

On the filing of the application, the commissioner shall	1902
determine the amount of refund to which the applicant is entitled.	1903
If the amount is not less than that claimed, the commissioner	1904
shall certify that amount to the director of budget and management	1905
and the treasurer of state for payment from the tax refund fund	1906
under section 5703.052 of the Revised Code. If the amount is less	1907
than that claimed, the commissioner shall proceed in accordance	1908
with section 5703.70 of the Revised Code.	1909

If the application for refund is for taxes paid on an illegal	1910
or erroneous assessment, theThe commissioner shall include in the	1911
certified amount interest calculated at the rate per annum	1912
prescribed by section 5703.47 of the Revised Code from the date of	1913
overpayment to the date of the commissioner's certification.	1914

(B) If a natural gas distribution company or an electric	1915
distribution company entitled to a refund of taxes under this	1916
section, or section 5703.70 of the Revised Code, is indebted to	1917
the state for any tax or fee administered by the tax commissioner	1918
that is paid to the state, or any charge, penalty, or interest	1919
arising from such a tax or fee, the amount refundable may be	1920
applied in satisfaction of the debt. If the amount refundable is	1921
less than the amount of the debt, it may be applied in partial	1922
satisfaction of the debt. If the amount refundable is greater than	1923
the amount of the debt, the amount remaining after satisfaction of	1924
the debt shall be refunded. If the natural gas distribution	1925
company or electric distribution company has more than one such	1926
debt, any debt subject to section 5739.33 or division (G) of	1927
section 5747.07 of the Revised Code shall be satisfied first. This	1928
section applies only to debts that have become final.	1929

(C)(1) Any electric distribution company that can	1930
substantiate to the tax commissioner that the tax imposed by	1931
section 5727.81 of the Revised Code was paid on electricity	1932
distributed via wires and consumed at a location outside of this	1933
state may claim a refund in the manner and within the time period	1934
prescribed in division (A) of this section.	1935

(2) Any natural gas distribution company that can	1936
substantiate to the tax commissioner that the tax imposed by	1937
section 5727.811 of the Revised Code was paid on natural gas	1938
distributed via its facilities and consumed at a location outside	1939
of this state may claim a refund in the manner and within the time	1940
period prescribed in division (A) of this section.	1941

(3) If the commissioner certifies a refund based on an	1942
application filed under division (C)(1) or (2) of this section,	1943
the commissioner shall include in the certified amount interest	1944
calculated at the rate per annum prescribed by section 5703.47 of	1945
the Revised Code from the date of overpayment to the date of the	1946
commissioner's certification.	1947

(D) Before a refund is issued under this section or section	1948
5703.70 of the Revised Code, a natural gas company or an electric	1949
distribution company shall certify, as prescribed by the tax	1950
commissioner, that it either did not include the tax imposed by	1951
section 5727.81 of the Revised Code in the case of an electric	1952
distribution company, or the tax imposed by section 5727.811 of	1953
the Revised Code in the case of a natural gas distribution	1954
company, in its distribution charge to its customer upon which a	1955
refund of the tax is claimed, or it has refunded or credited to	1956
the customer the excess distribution charge related to the tax	1957
that was erroneously included in the customer's distribution	1958
charge.	1959

Sec. 5735.01.  As used in this chapter:

1960

(A) "Motor vehicles" includes all vehicles, vessels,	1961
watercraft, engines, machines, or mechanical contrivances which	1962
are powered by internal combustion engines or motors.	1963

(B) "Motor fuel" means gasoline, diesel fuel, K-1 kerosene,	1964
or any other liquid motor fuel, including, but not limited to,	1965
liquid petroleum gas or liquid natural gas, but excluding	1966
substances prepackaged and sold in containers of five gallons or	1967
less.	1968

(C) "K-1 Kerosenekerosene" means fuel that conforms to the	1969
chemical and physical standards for kerosene no. 1-K as set forth	1970
in the americanAmerican society for testing and materials (ASTM)	1971
designated D-3699 "standard for specification for kerosene," as	1972
that standard may be modified from time to time. For purposes of	1973
inspection and testing, laboratory analysis shall be conducted	1974
using methods recognized by the ASTM designation D-3699.	1975

(D) "Diesel fuel" means any liquid fuel capable of use in	1976
discrete form or as a blend component in the operation of engines	1977
of the diesel type, including transmix when mixed with diesel	1978
fuel.	1979

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

1980

(1) All products, commonly or commercially known or sold as	1981
gasoline;	1982

(2) Any blend stocks or additives, including alcohol, that	1983
are sold for blending with gasoline, other than products typically	1984
sold in containers of five gallons or less;	1985

(3) Transmix when mixed with gasoline, unless certified, as	1986
required by the tax commissioner, for withdrawal from terminals	1987
for reprocessing at refineries;	1988

(4) Alcohol that is offered for sale or sold for use as, or	1989
commonly and commercially used as, a fuel for internal combustion	1990
engines.	1991

Gasoline does not include diesel fuel, commercial or	1992
industrial napthas or solvents manufactured, imported, received,	1993
stored, distributed, sold, or used exclusively for purposes other	1994
than as a motor fuel for a motor vehicle or vessel. The blending	1995
of any of the products listed in the preceding sentence,	1996
regardless of name or characteristics, is conclusively presumed to	1997
have been done to produce gasoline, unless the product obtained by	1998
the blending is entirely incapable for use as fuel to operate a	1999
motor vehicle. An additive, blend stock, or alcohol is presumed to	2000
be sold for blending unless a certification is obtained as	2001
required by the tax commissioner.	2002

(F) "Public highways" means lands and lots over which the	2003
public, either as user or owner, generally has a right to pass,	2004
even though the same are closed temporarily by the authorities for	2005
the purpose of construction, reconstruction, maintenance, or	2006
repair.	2007

(G) "Waters within the boundaries of this state" means all	2008
streams, lakes, ponds, marshes, water courses, and all other	2009
bodies of surface water, natural or artificial, which are situated	2010
wholly or partially within this state or within its jurisdiction,	2011
except private impounded bodies of water.	2012

(H) "Person" includes individuals, partnerships, firms,	2013
associations, corporations, receivers, trustees in bankruptcy,	2014
estates, joint-stock companies, joint ventures, the state and its	2015
political subdivisions, and any combination of persons of any	2016
form.	2017

(I)(1) "Motor fuel dealer" means any person who satisfies any	2018
of the following:	2019

(a) The person imports from another state or foreign country	2020
or acquires motor fuel by any means into a terminal in this state;	2021

(b) The person imports motor fuel from another state or	2022
foreign country in bulk lot vehicles for subsequent sale and	2023
distribution in this state from bulk lot vehicles;	2024

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

2025

(d) The person acquires motor fuel from a motor fuel dealer	2026
for subsequent sale and distribution by that person in this state	2027
from bulk lot vehicles;	2028

(e) The person possesses an unrevoked permissive motor fuel	2029
dealer's license.	2030

(2) Any person who obtains dyed diesel fuel for use other	2031
than the operation of motor vehicles upon the public highways or	2032
upon waters within the boundaries of this state, but later uses	2033
that motor fuel for the operation of motor vehicles upon the	2034
public highways or upon waters within the boundaries of this	2035
state, is deemed a motor fuel dealer as regards any unpaid motor	2036
fuel taxes levied on the motor fuel so used.	2037

(J) As used in sections 5735.05, 5735.25, 5735.29, and	2038
5735.30 of the Revised Code only:	2039

(1) With respect to gasoline, "received" or "receipt" shall	2040
be construed as follows:	2041

(a) Gasoline produced at a refinery in this state or	2042
delivered to a terminal in this state is deemed received when it	2043
is disbursed through a loading rack at that refinery or terminal;	2044

(b) Except as provided in division (J)(1)(a) of this section,	2045
gasoline imported into this state or purchased or otherwise	2046
acquired in this state by any person is deemed received within	2047
this state by that person when the gasoline is withdrawn from the	2048
container in which it was transported;	2049

(c) Gasoline delivered or disbursed by any means from a	2050
terminal directly to another terminal is not deemed received.	2051

(2) With respect to motor fuel other than gasoline,	2052
"received" or "receipt" means distributed or sold for use or used	2053
to generate power for the operation of motor vehicles upon the	2054
public highways or upon waters within the boundaries of this	2055
state. All diesel fuel that is not dyed diesel fuel, regardless of	2056
its use, shall be considered as used to generate power for the	2057
operation of motor vehicles upon the public highways or upon	2058
waters within the boundaries of this state when the fuel is sold	2059
or distributed to a person other than a licensed motor fuel dealer	2060
or to a person licensed under section 5735.026 of the Revised	2061
Code.	2062

(K) Motor fuel used for the operation of licensed motor	2063
vehicles employed in the maintenance, construction, or repair of	2064
public highways is deemed to be used for the operation of motor	2065
vehicles upon the public highways.	2066

(L) "Licensed motor fuel dealer" means any dealer possessing	2067
an unrevoked motor fuel dealer's license issued by the tax	2068
commissioner as provided in section 5735.02 of the Revised Code.	2069

(M) "Licensed retail dealer" means any retail dealer	2070
possessing an unrevoked retail dealer's license issued by the tax	2071
commissioner as provided in section 5735.022 of the Revised Code.	2072

(N) "Cents per gallon rate" means the amount computed by the	2073
tax commissioner under section 5735.011 of the Revised Code that	2074
is used to determine that portion of the tax levied by section	2075
5735.05 of the Revised Code that is computed in the manner	2076
prescribed by division (B)(2) of section 5735.06 of the Revised	2077
Code and that is applicable for the period that begins on the	2078
first day of July following the date on which the commissioner	2079
makes the computation.	2080

(O) "Retail dealer" means any person that sells or	2081
distributes motor fuel at a retail service station located in this	2082
state.	2083

(P) "Retail service station" means a location from which	2084
motor fuel is sold to the general public and is dispensed or	2085
pumped directly into motor vehicle fuel tanks for consumption.	2086

(Q) "Transit bus" means a motor vehicle that is operated for	2087
public transit or paratransit service on a regular and continuing	2088
basis within the state by or for a county, a municipal	2089
corporation, a county transit board pursuant to sections 306.01 to	2090
306.13 of the Revised Code, a regional transit authority pursuant	2091
to sections 306.30 to 306.54 of the Revised Code, or a regional	2092
transit commission pursuant to sections 306.80 to 306.90 of the	2093
Revised Code. Public transit or paratransit service may include	2094
fixed route, demand-responsive, or subscription bus service	2095
transportation, but does not include shared-ride taxi service,	2096
carpools, vanpools, jitney service, school bus transportation, or	2097
charter or sightseeing services.	2098

(R) "Export" means motor fuel delivered outside this state.	2099
Motor fuel delivered outside this state by or for the seller	2100
constitutes an export by the seller. Motor fuel delivered outside	2101
this state by or for the purchaser constitutes an export by the	2102
purchaser.	2103

(S) "Import" means motor fuel delivered into this state from	2104
outside this state. Motor fuel delivered into this state from	2105
outside this state by or for the seller constitutes an import by	2106
the seller. Motor fuel delivered into this state from outside this	2107
state by or for the purchaser constitutes an import by the	2108
purchaser.	2109

(T) "Terminal" means a motor fuel storage or distribution	2110
facility that is supplied by pipeline or marine vessel.	2111

(U) "Consumer" means a buyer of motor fuel for purposes other	2112
than resale in any form.	2113

(V) "Bulk lot vehicle" means railroad tank cars, transport	2114
tank trucks and tank wagons with a capacity of at least 1,400	2115
gallons.	2116

(W) "Licensed permissive motor fuel dealer" means any person	2117
possessing an unrevoked permissive motor fuel dealer's license	2118
issued by the tax commissioner under section 5735.021 of the	2119
Revised Code.	2120

(X) "Licensed terminal operator" means any person possessing	2121
an unrevoked terminal operator's license issued by the tax	2122
commissioner under section 5735.026 of the Revised Code.	2123

(Y) "Licensed exporter" means any person possessing an	2124
unrevoked exporter's license issued by the tax commissioner under	2125
section 5735.026 of the Revised Code.	2126

(Z) "Dyed diesel fuel" means any diesel fuel dyed pursuant to	2127
regulations issued by the internal revenue service or a rule	2128
promulgated by the tax commissioner.	2129

(AA) "Gross gallons" means U.S. gallons without temperature	2130
or barometric adjustments.	2131

(BB) "Net gallons" means U.S. gallons with a temperature	2132
adjustment to sixty degrees fahrenheit.	2133

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

2134

(1) A railroad company, street, suburban, or interurban	2135
railroad company, a pipeline company, or water transportation	2136
company that transports motor fuel, either in interstate or	2137
intrastate commerce, to points in this state;	2138

(2) A person that transports motor fuel by any manner to a	2139
point in this state.	2140

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

2141

(1) A person that is licensed to collect and remit motor fuel	2142
taxes in a specified state of destination;	2143

(2) A person that is statutorily prohibited from obtaining a	2144
license to collect and remit motor fuel taxes in a specified state	2145
of destination, and is licensed to sell or distribute tax-paid	2146
motor fuel in the specified state of destination.	2147

(EE) "Report" means a report or return required to be filed	2148
under this chapter and may be used interchangeably with, and for	2149
all purposes has the same meaning as, "return."	2150

Sec. 5735.026.  (A) The tax commissioner, for the purposes of	2151
administering this chapter, shall issue two classes of export	2152
licenses: "exporter type A" licenses and "exporter type B"	2153
licenses. To qualify for an exporter type A license, a person must	2154
demonstrate to the tax commissioner's satisfaction that the person	2155
is licensed to collect and remit motor fuel taxes in the specified	2156
state of destination. To qualify for an exporter type B license,	2157
to a person must demonstratethat receives motor fuel in this	2158
state and exports that fuel out of this state and that	2159
demonstrates to the tax commissioner's satisfaction that the	2160
person is statutorily prohibited from obtaining a license to	2161
collect and remit motor fuel taxes in the specified state of	2162
destination, and that the person is licensed to sell or distribute	2163
tax-paid motor fuel in the specified state of destinationan	2164
exporter.	2165

(B) To obtain an exporter'sexporter license of either class,	2166
a person shall file, under oath, an application with the	2167
commissioner in such form as the commissioner prescribes. The	2168
application shall set forth the following information:	2169

(1) The name under which the exporter will transact business	2170
within the state;	2171

(2) The location, including street number address, of the	2172
exporter's principal office or place of business;	2173

(3) The name and address of the owner, or the names and	2174
addresses of the partners if such exporter is a partnership, or	2175
the names and addresses of the principal officers if the exporter	2176
is a corporation or an association;	2177

(4) A certified copy of the certificate or license issued by	2178
the Secretary of State showing that the corporation is authorized	2179
to transact business in this state if the exporter is a	2180
corporation organized under the laws of another state, territory,	2181
or country;	2182

(5) For an exporter type A licensedescribed in division	2183
(DD)(1) of section 5735.01 of the Revised Code, a copy of the	2184
applicant's license or certificate to collect and remit motor fuel	2185
taxes or sell or distribute motor fuel in the specified	2186
destination state or states for which the license or certificate	2187
is to be issued;	2188

(6) Any other information the commissioner may require.

2189

(C)(1) After a hearing as provided in division (C)(2) of this	2190
section, the tax commissioner may refuse to issue a license to	2191
transact business as an exporter of motor fuel in the following	2192
circumstances:	2193

(a) The applicant has previously had a license issued under	2194
this chapter canceled for cause by the tax commissioner;	2195

(b) The tax commissioner believes that an application is not	2196
filed in good faith;	2197

(c) The applicant has previously violated any provision of	2198
this chapter;	2199

(d) The application is filed as a subterfuge by the applicant	2200
for the real person in interest who has previously had a license	2201
issued under this chapter canceled for cause by the tax	2202
commissioner or who has violated any provision of this chapter.	2203

(2) The tax commissioner shall conduct a hearing before	2204
refusing to issue a license to transact business as an exporter in	2205
any of the circumstances described in division (C)(1) of this	2206
section. The applicant shall be given five days' notice, in	2207
writing, of the hearing. The applicant may appear in person or be	2208
represented by counsel, and may present testimony at the hearing.	2209

(D) When an application in proper form has been accepted for	2210
filing, the commissioner shall issue to such exporter a license to	2211
transact business as an exporter of motor fuel in this state,	2212
subject to cancellation of such license as provided by law.	2213

(E) No person shall make a false or fraudulent statement on	2214
the application required by this section.	2215

Sec. 5735.05.  (A) To provide revenue for maintaining the	2216
state highway system; to widen existing surfaces on such highways;	2217
to resurface such highways; to pay that portion of the	2218
construction cost of a highway project which a county, township,	2219
or municipal corporation normally would be required to pay, but	2220
which the director of transportation, pursuant to division (B) of	2221
section 5531.08 of the Revised Code, determines instead will be	2222
paid from moneys in the highway operating fund; to enable the	2223
counties of the state properly to plan, maintain, and repair their	2224
roads and to pay principal, interest, and charges on bonds and	2225
other obligations issued pursuant to Chapter 133. of the Revised	2226
Code or incurred pursuant to section 5531.09 of the Revised Code	2227
for highway improvements; to enable the municipal corporations to	2228
plan, construct, reconstruct, repave, widen, maintain, repair,	2229
clear, and clean public highways, roads, and streets, and to pay	2230
the principal, interest, and charges on bonds and other	2231
obligations issued pursuant to Chapter 133. of the Revised Code or	2232
incurred pursuant to section 5531.09 of the Revised Code for	2233
highway improvements; to enable the Ohio turnpike and	2234
infrastructure commission to construct, reconstruct, maintain, and	2235
repair turnpike projects; to maintain and repair bridges and	2236
viaducts; to purchase, erect, and maintain street and traffic	2237
signs and markers; to purchase, erect, and maintain traffic lights	2238
and signals; to pay the costs apportioned to the public under	2239
sections 4907.47 and 4907.471 of the Revised Code and to	2240
supplement revenue already available for such purposes; to pay the	2241
costs incurred by the public utilities commission in administering	2242
sections 4907.47 to 4907.476 of the Revised Code; to distribute	2243
equitably among those persons using the privilege of driving motor	2244
vehicles upon such highways and streets the cost of maintaining	2245
and repairing them; to pay the interest, principal, and charges on	2246
highway capital improvements bonds and other obligations issued	2247
pursuant to Section 2m of Article VIII, Ohio Constitution, and	2248
section 151.06 of the Revised Code; to pay the interest,	2249
principal, and charges on highway obligations issued pursuant to	2250
Section 2i of Article VIII, Ohio Constitution, and sections	2251
5528.30 and 5528.31 of the Revised Code; to pay the interest,	2252
principal, and charges on major new state infrastructure bonds and	2253
other obligations of the state issued pursuant to Section 13 of	2254
Article VIII, Ohio Constitution, and section 5531.10 of the	2255
Revised Code; to provide revenue for the purposes of sections	2256
1547.71 to 1547.78 of the Revised Code; and to pay the expenses of	2257
the department of taxation incident to the administration of the	2258
motor fuel laws, a motor fuel excise tax is hereby imposed on all	2259
motor fuel dealers upon receipt of motor fuel within this state at	2260
the rate of two cents plus the cents per gallon rate on each	2261
gallon so received, to be computed in the manner set forth in	2262
section 5735.06 of the Revised Code; provided that no tax is	2263
hereby imposed upon the following transactions:	2264

(1) The sale of dyed diesel fuel by a licensed motor fuel	2265
dealer from a location other than a retail service station	2266
provided the licensed motor fuel dealer places on the face of the	2267
delivery document or invoice, or both if both are used, a	2268
conspicuous notice stating that the fuel is dyed and is not for	2269
taxable use, and that taxable use of that fuel is subject to a	2270
penalty. The tax commissioner, by rule, may provide that any	2271
notice conforming to rules or regulations issued by the United	2272
States department of the treasury or the Internal Revenue Service	2273
is sufficient notice for the purposes of division (A)(1) of this	2274
section.	2275

(2) The sale of K-1 kerosene to a retail service station,	2276
except when placed directly in the fuel supply tank of a motor	2277
vehicle. Such sale shall be rebuttably presumed to not be	2278
distributed or sold for use or used to generate power for the	2279
operation of motor vehicles upon the public highways or upon the	2280
waters within the boundaries of this state.	2281

(3) The sale of motor fuel by a licensed motor fuel dealer to	2282
another licensed motor fuel dealer;	2283

(4) The exportation of motor fuel by a licensed motor fuel	2284
dealer from this state to any other state or foreign country;	2285

(5) The sale of motor fuel to the United States government or	2286
any of its agencies, except such tax as is permitted by it, where	2287
such sale is evidenced by an exemption certificate, in a form	2288
approved by the tax commissioner, executed by the United States	2289
government or an agency thereof certifying that the motor fuel	2290
therein identified has been purchased for the exclusive use of the	2291
United States government or its agency;	2292

(6) The sale of motor fuel that is in the process of	2293
transportation in foreign or interstate commerce, except insofar	2294
as it may be taxable under the Constitution and statutes of the	2295
United States, and except as may be agreed upon in writing by the	2296
dealer and the commissioner;	2297

(7) The sale of motor fuel when sold exclusively for use in	2298
the operation of aircraft, where such sale is evidenced by an	2299
exemption certificate prescribed by the commissioner and executed	2300
by the purchaser certifying that the motor fuel purchased has been	2301
purchased for exclusive use in the operation of aircraft;	2302

(8) The sale for exportation of motor fuel by a licensed	2303
motor fuel dealer to a licensed exporter type Adescribed in	2304
division (DD)(1) of section 5735.01 of the Revised Code;	2305

(9) The sale for exportation of motor fuel by a licensed	2306
motor fuel dealer to a licensed exporter type Bdescribed in	2307
division (DD)(2) of section 5735.01 of the Revised Code, provided	2308
that the destination state motor fuel tax has been paid or will be	2309
accrued and paid by the licensed motor fuel dealer.	2310

(10) The sale to a consumer of diesel fuel, by a motor fuel	2311
dealer for delivery from a bulk lot vehicle, for consumption in	2312
operating a vessel when the use of such fuel in a vessel would	2313
otherwise qualify for a refund under section 5735.14 of the	2314
Revised Code.	2315

Division (A)(1) of this section does not apply to the sale or	2316
distribution of dyed diesel fuel used to operate a motor vehicle	2317
on the public highways or upon water within the boundaries of this	2318
state by persons permitted under regulations of the United States	2319
department of the treasury or of the Internal Revenue Service to	2320
so use dyed diesel fuel.	2321

(B) The two cent motor fuel tax levied by this section is	2322
also for the purpose of paying the expenses of administering and	2323
enforcing the state law relating to the registration and operation	2324
of motor vehicles.	2325

(C) After the tax provided for by this section on the receipt	2326
of any motor fuel has been paid by the motor fuel dealer, the	2327
motor fuel may thereafter be used, sold, or resold by any person	2328
having lawful title to it, without incurring liability for such	2329
tax.	2330

If a licensed motor fuel dealer sells motor fuel received by	2331
the licensed motor fuel dealer to another licensed motor fuel	2332
dealer, the seller may deduct on the report required by section	2333
5735.06 of the Revised Code the number of gallons so sold for the	2334
month within which the motor fuel was sold or delivered. In this	2335
event the number of gallons is deemed to have been received by the	2336
purchaser, who shall report and pay the tax imposed thereon.	2337

Sec. 5735.062.  (A) If the total amount of tax required to be	2338
paid under section 5735.06 of the Revised Code for any calendar	2339
year indicated in the following schedule exceeds the amounts	2340
prescribed for that year in the schedulecommissioner so requires,	2341
the dealer shall remit each monthly tax payment in the second	2342
ensuing and each succeeding year by electronic funds transfer	2343
electronically as prescribed by division (B) of this section.	2344

Year 1992         1993 and thereafter Total tax payment $1,200,000         $600,000	2345

If a dealer's total tax payment for each of two consecutive	2346
years beginning with 1993 is six hundred thousand dollars or less,	2347
the dealer is relieved of the requirement to remit taxes by	2348
electronic funds transfer for the year that next follows the	2349
second of the consecutive years in which the total tax payment is	2350
six hundred thousand dollars or less, and is relieved of that	2351
requirement for each succeeding year unless the total tax payment	2352
in a subsequent year exceeds six hundred thousand dollars.	2353

The tax commissioner shall notify each dealer required to	2354
remit taxes by electronic funds transferelectronically of the	2355
dealer's obligation to do so, shall maintain an updated list of	2356
those dealers, and shall timely certify the list and any additions	2357
thereto or deletions therefrom to the treasurer of state. Failure	2358
by the tax commissioner to notify a dealer subject to this section	2359
to remit taxes by electronic funds transferelectronically does	2360
not relieve the dealer of its obligation to remit taxes by	2361
electronic funds transferelectronically.	2362

(B) Dealers required by division (A) of this section to remit	2363
payments by electronic funds transferelectronically shall remit	2364
such payments to the treasurer of state in the manner prescribed	2365
by rules adopted by the treasurer under section 113.061 of the	2366
Revised Code andor through the department of taxation's web site.	2367
Required payments shall be remitted on or before the dates	2368
specified under section 5735.06 of the Revised Code. The payment	2369
of taxes by electronic funds transferelectronically does not	2370
affect a dealer's obligation to file the monthly reportreturn as	2371
required under section 5735.06 of the Revised Code.	2372

A dealer required by this section to remit taxes by	2373
electronic funds transferelectronically may apply to the	2374
treasurer of state in the manner prescribed by the treasurer	2375
commissioner to be excused from that requirement. The treasurer of	2376
statecommissioner may excuse the dealer from the electronic	2377
remittance by electronic funds transferrequirement for good cause	2378
shown for the period of time requested by the dealer or for a	2379
portion of that period. The treasurer shall notify the tax	2380
commissioner and the dealer of the treasurer's decision as soon as	2381
is practicable.	2382

(C) If a dealer required by this section to remit taxes by	2383
electronic funds transfer remits those taxes by some means other	2384
than by electronic funds transfer as prescribed by this section	2385
and the rules adopted by the treasurer of state, and the treasurer	2386
determines that such failure was not due to reasonable cause or	2387
was due to willful neglect, the treasurer shall notify the tax	2388
commissioner of the failure to remit by electronic funds transfer	2389
and shall provide the commissioner with any information used in	2390
making that determination. The taxelectronically fails to do so,	2391
the commissioner may collect an additional charge by assessment in	2392
the manner prescribed by section 5735.12 of the Revised Code. The	2393
additional charge shall equal five per cent of the amount of the	2394
taxes required to be paid by electronic funds transfer, but shall	2395
not exceed five thousand dollars. Any additional charge assessed	2396
under this section is in addition to any other penalty or charge	2397
imposed under this chapter, and shall be considered as revenue	2398
arising from taxes imposed under this chapter. The tax	2399
commissioner may remit all or a portion of such a charge and may	2400
adopt rules governing such remission.	2401

No additional charge shall be assessed under this division	2402
against a dealer that has been notified of its obligation to remit	2403
taxes under this section and that remits its first two tax	2404
payments after such notification by some means other than	2405
electronic funds transfer. The additional charge may be assessed	2406
upon the remittance of any subsequent tax payment that the dealer	2407
remits by some means other than electronic funds transferimpose a	2408
penalty on the dealer not to exceed one of the following:	2409

(1) For the first return period the dealer fails to remit	2410
taxes electronically, the greater of twenty-five dollars or five	2411
per cent of the amount of the payment required to be remitted;	2412

(2) For the second or any subsequent return period the dealer	2413
fails to remit taxes electronically, the greater of fifty dollars	2414
or ten per cent of the amount of the payment required to be	2415
remitted.	2416

The penalty imposed under division (C) of this section is in	2417
addition to any other penalty imposed under this chapter and shall	2418
be considered as revenue arising from the taxes imposed under this	2419
chapter. A penalty may be collected by assessment in the manner	2420
prescribed by section 5735.12 of the Revised Code. The	2421
commissioner may abate all or a portion of a penalty.	2422

(D) The commissioner may adopt rules necessary to administer	2423
this section.	2424

Sec. 5735.07.  Each month the tax commissioner shall make a	2425
list of all motor fuel dealers that have filed a report pursuant	2426
to section 5735.06 of the Revised Code. The list shall contain the	2427
names and addresses of all dealers and, the number of gallons of	2428
motor fuel upon which those dealers were required to pay the tax	2429
as reported on the return or as determined by investigation of the	2430
commissioner, and each dealer's federal identification number or	2431
other motor fuel tax account number. The list shall be open to	2432
public inspection in the office of the commissioner or posted on	2433
the department of taxation's web site.	2434

Sec. 5735.09.  (A) Every railroad company, every street,	2435
suburban, or interurban railroad company, every pipe line company,	2436
and every water transportation company, which transports motor	2437
fuel, either in interstate or in intrastate commerce, to points	2438
within this state, and every person who transports motor fuel by	2439
any manner to a point in this state,transporter shall report all	2440
deliveries of motor fuel made to points within this state to	2441
register with the tax commissioner on formsa form prescribed by	2442
the tax commissioner.	2443

Each transporter shall report all deliveries of motor fuel	2444
made to points in this state to the commissioner on forms	2445
prescribed by the commissioner. Such reports shall cover monthly	2446
periods, shall be submitted within thirty days after the close of	2447
the month covered by the report, shall show the name and address	2448
of the person to whom the deliveries of motor fuel were actually	2449
made, the name and address of the person that assumes ownership of	2450
the motor fuel, the point of origin, the point of delivery, the	2451
date of delivery, and the number and initials of each car if	2452
shipped by rail, the quantity of each shipment and delivery in	2453
gallons, the date delivered, the name of the person to whom	2454
delivered, the point of shipment, the point of delivery, the name	2455
of the boat or barge if delivered by water, and if delivered by	2456
other means, the manner in which such delivery is made.	2457

(B) No person required by this section to file a report shall	2458
file a false or fraudulent report or supporting schedule.	2459

Sec. 5735.12.  (A) Any motor fuel dealerperson required by	2460
this chapter to file reports andor pay the tax levied by this	2461
chapter who fails to file the reportdo so within the time	2462
prescribed, may be liable for an additional charge not exceeding	2463
the greater of ten per cent of the motor fuel dealer'sperson's	2464
tax liability for that month or fifty dollars. The tax	2465
commissioner may remit all or a portion of the additional charge	2466
and may adopt rules relating to the remission of all or a portion	2467
of the charge.	2468

If any person required by this chapter to file reports andor	2469
pay the taxes, interest, or additional charge levied by this	2470
chapter fails to file the report, files an incomplete or incorrect	2471
report, or fails to remit the full amount of the tax, interest, or	2472
additional charge due for the period covered by the report, the	2473
commissioner may make an assessment against the person based upon	2474
any information in the commissioner's possession.	2475

No assessment shall be made against any motor fuel dealer for	2476
taxes imposed by this chapter more than four years after the date	2477
on which the report on which the assessment was based was due or	2478
was filed, whichever is later. This section does not bar an	2479
assessment against any motor fuel dealer who fails to file a	2480
report required by section 5735.06 of the Revised Code, or who	2481
files a fraudulent motor fuel tax report.	2482

A penalty of up to fifteen per cent may be added to the	2483
amount of every assessment made under this section. The	2484
commissioner may adopt rules providing for the imposition and	2485
remission of penalties added to assessments made under this	2486
section.	2487

The commissioner shall give the party assessed written notice	2488
of the assessment in the manner provided in section 5703.37 of the	2489
Revised Code. With the notice, the commissioner shall provide	2490
instructions on how to petition for reassessment and request a	2491
hearing on the petition.	2492

(B) Unless the party assessed files with the tax commissioner	2493
within sixty days after service of the notice of assessment,	2494
either personally or by certified mail, a written petition for	2495
reassessment in writing, signed by the party assessed or that	2496
party's authorized agent having knowledge of the facts, the	2497
assessment becomes final and the amount of the assessment is due	2498
and payable from the party assessed to the treasurer of state. The	2499
petition shall indicate the objections of the party assessed, but	2500
additional objections may be raised in writing if received by the	2501
commissioner prior to the date shown on the final determination.	2502
If the petition has been properly filed, the commissioner shall	2503
proceed under section 5703.60 of the Revised Code.	2504

(C) After an assessment becomes final, if any portion of the	2505
assessment remains unpaid, including accrued interest, a certified	2506
copy of the tax commissioner's entry making the assessment final	2507
may be filed in the office of the clerk of the court of common	2508
pleas in the county in which the party assessed resides or in	2509
which the business of the party assessed is conducted. If the	2510
party assessed maintains no place of business in this state and is	2511
not a resident of this state, the certified copy of the entry may	2512
be filed in the office of the clerk of the court of common pleas	2513
of Franklin county.	2514

Immediately upon the filing of the entry, the clerk shall	2515
enter a judgment for the state against the party assessed in the	2516
amount shown on the entry. The judgment may be filed by the clerk	2517
in a loose-leaf book entitled "special judgments for state motor	2518
fuel tax," and shall have the same effect as other judgments.	2519
Execution shall issue upon the judgment upon the request of the	2520
tax commissioner, and all laws applicable to sales on execution	2521
shall apply to sales made under the judgment.	2522

If the assessment is not paid in its entirety within sixty	2523
days after the day the assessment was issued, the portion of the	2524
assessment consisting of tax due shall bear interest at the rate	2525
per annum prescribed by section 5703.47 of the Revised Code from	2526
the day the commissioner issues the assessment until it is paid or	2527
until it is certified to the attorney general for collection under	2528
section 131.02 of the Revised Code, whichever comes first. If the	2529
unpaid portion of the assessment is certified to the attorney	2530
general for collection, the entire unpaid portion of the	2531
assessment shall bear interest at the rate per annum prescribed by	2532
section 5703.47 of the Revised Code from the date of certification	2533
until the date it is paid in its entirety. Interest shall be paid	2534
in the same manner as the tax and may be collected by the issuance	2535
of an assessment under this section.	2536

(D) All money collected by the tax commissioner under this	2537
section shall be paid to the treasurer of state, and when paid	2538
shall be considered as revenue arising from the tax imposed by	2539
this chapter.	2540

(E) If the tax commissioner determines that the commissioner	2541
has erroneously refunded motor fuel tax to any person, the	2542
commissioner may make an assessment against the person for	2543
recovery of the erroneously refunded tax.	2544

Sec. 5735.141.  Any retail dealer of motor fuel shall receive	2545
a refund for Ohio motor fuel taxes paid on fuel lost by a retail	2546
dealer through shrinkage and evaporation. This refund shall be one	2547
per cent of the Ohio motor fuel taxes paid on fuel purchased	2548
during any semiannual period ending the thirtieth day of June or	2549
the thirty-first day of December.	2550

In order to receive a refund, the retail dealer shall file	2551
with the tax commissioner, within one hundred twenty days after	2552
the thirtieth day of June and the thirty-first day of December of	2553
each year, an application for a refund stating the quantity of	2554
motor fuel that was purchased for resale by the applicant during	2555
the preceding semiannual period ending the thirtieth day of June	2556
or the thirty-first day of December and upon which the motor fuel	2557
tax has been paid. No person shall file a claim for the tax on	2558
fewer than one hundred gallons of motor fuel. The form and	2559
contents of the application shall be prescribed by the	2560
commissioner, and the application shall be signed in accordance	2561
with section 5703.25 of the Revised Code. On the filing of the	2562
application, the commissioner shall determine the amount of refund	2563
to which the applicant is entitled. If the amount is not less than	2564
that claimed, the commissioner shall certify the amount to the	2565
director of budget and management and treasurer of state for	2566
payment from the tax refund fund created by section 5703.052 of	2567
the Revised Code. If the amount is less than that claimed, the	2568
commissioner shall proceed in accordance with section 5703.70 of	2569
the Revised Code.	2570

No refund shall be authorized or ordered under this section	2571
for any single claim for the tax on fewer than one hundred gallons	2572
of motor fuel.	2573

The refund authorized by this section or section 5703.70 of	2574
the Revised Code shall be reduced by the cents per gallon amount	2575
of any qualified fuel credit received under section 5735.145 of	2576
the Revised Code, as determined by the commissioner, for each	2577
gallon of qualified fuel included in the total gallonage of motor	2578
fuel upon which the refund is computed.	2579

The right to receive any refund under this section or section	2580
5703.70 of the Revised Code is not assignable. The payment of the	2581
refund shall not be made to any person other than the retail	2582
dealer originally entitled thereto, except that the refund may be	2583
paid to the executor, administrator, receiver, trustee in	2584
bankruptcy, or assignee in insolvency proceedings of such	2585
retailer.	2586

A motor fuel dealer shall be deemed to be a retail dealer	2587
when acting in a retail capacity.	2588

For the purpose of administering this section, the	2589
commissioner may provide a retail dealer with information related	2590
to a wholesale dealer, including the wholesale dealer's federal	2591
identification number or other motor fuel tax account number.	2592

Sec. 5735.23.  (A) Out of receipts from the tax levied by	2593
section 5735.05 of the Revised Code, the treasurer of state shall	2594
place to the credit of the tax refund fund established by section	2595
5703.052 of the Revised Code amounts equal to the refunds	2596
certified by the tax commissioner pursuant to sections 5735.13,	2597
5735.14, 5735.141, and 5735.142, and 5735.16 of the Revised Code.	2598
The treasurer of state shall then transfer the amount required by	2599
section 5735.051 of the Revised Code to the waterways safety fund,	2600
the amount required by section 4907.472 of the Revised Code to the	2601
grade crossing protection fund, and the amount required by section	2602
5735.053 of the Revised Code to the motor fuel tax administration	2603
fund.	2604

(B) Except as provided in division (D) of this section, each	2605
month the balance of the receipts from the tax levied by section	2606
5735.05 of the Revised Code shall be credited, after receipt by	2607
the treasurer of state of certification from the commissioners of	2608
the sinking fund, as required by section 5528.35 of the Revised	2609
Code, that there are sufficient moneys to the credit of the	2610
highway obligations bond retirement fund to meet in full all	2611
payments of interest, principal, and charges for the retirement of	2612
highway obligations issued pursuant to Section 2i of Article VIII,	2613
Ohio Constitution, and sections 5528.30 and 5528.31 of the Revised	2614
Code due and payable during the current calendar year, as follows:	2615

(1) To the state and local government highway distribution	2616
fund, which is hereby created in the state treasury, an amount	2617
that is the same percentage of the balance to be credited as that	2618
portion of the tax per gallon determined under division (B)(2)(a)	2619
of section 5735.06 of the Revised Code is of the total tax per	2620
gallon determined under divisions (B)(2)(a) and (b) of that	2621
section.	2622

(2) After making the distribution to the state and local	2623
government highway distribution fund, the remainder shall be	2624
credited as follows:	2625

(a) Thirty per cent to the gasoline excise tax fund for	2626
distribution pursuant to division (A)(1) of section 5735.27 of the	2627
Revised Code;	2628

(b) Twenty-five per cent to the gasoline excise tax fund for	2629
distribution pursuant to division (A)(3) of section 5735.27 of the	2630
Revised Code;	2631

(c) Except as provided in division (D) of this section,	2632
forty-five per cent to the highway operating fund for distribution	2633
pursuant to division (B)(1) of section 5735.27 of the Revised	2634
Code.	2635

(C) From the balance in the state and local government	2636
highway distribution fund on the last day of each month there	2637
shall be paid the following amounts:	2638

(1) To the local transportation improvement program fund	2639
created by section 164.14 of the Revised Code, an amount equal to	2640
a fraction of the balance in the state and local government	2641
highway distribution fund, the numerator of which fraction is one	2642
and the denominator of which fraction is that portion of the tax	2643
per gallon determined under division (B)(2)(a) of section 5735.06	2644
of the Revised Code;	2645

(2) An amount equal to five cents multiplied by the number of	2646
gallons of motor fuel sold at stations operated by the Ohio	2647
turnpike and infrastructure commission, such gallonage to be	2648
certified by the commission to the treasurer of state not later	2649
than the last day of the month following. The funds paid to the	2650
commission pursuant to this section shall be expended for the	2651
construction, reconstruction, maintenance, and repair of turnpike	2652
projects, except that the funds may not be expended for the	2653
construction of new interchanges. The funds also may be expended	2654
for the construction, reconstruction, maintenance, and repair of	2655
those portions of connecting public roads that serve existing	2656
interchanges and are determined by the commission and the director	2657
of transportation to be necessary for the safe merging of traffic	2658
between the turnpike and those public roads.	2659

The remainder of the balance shall be distributed as follows	2660
on the fifteenth day of the following month:	2661

(a) Ten and seven-tenths per cent shall be paid to municipal	2662
corporations for distribution pursuant to division (A)(1) of	2663
section 5735.27 of the Revised Code and may be used for any	2664
purpose for which payments received under that division may be	2665
used. Through July 15, 2005, the sum of two hundred forty-eight	2666
thousand six hundred twenty-five dollars shall be monthly	2667
subtracted from the amount so computed and credited to the highway	2668
operating fund. Beginning August 15, 2005, the sum of seven	2669
hundred forty-five thousand eight hundred seventy-five dollars	2670
shall be monthly subtracted from the amount so computed and	2671
credited to the highway operating fund.	2672

(b) Five per cent shall be paid to townships for distribution	2673
pursuant to division (A)(5) of section 5735.27 of the Revised Code	2674
and may be used for any purpose for which payments received under	2675
that division may be used. Through July 15, 2005, the sum of	2676
eighty-seven thousand seven hundred fifty dollars shall be monthly	2677
subtracted from the amount so computed and credited to the highway	2678
operating fund. Beginning August 15, 2005, the sum of two hundred	2679
sixty-three thousand two hundred fifty dollars shall be monthly	2680
subtracted from the amount so computed and credited to the highway	2681
operating fund.	2682

(c) Nine and three-tenths per cent shall be paid to counties	2683
for distribution pursuant to division (A)(3) of section 5735.27 of	2684
the Revised Code and may be used for any purpose for which	2685
payments received under that division may be used. Through July	2686
15, 2005, the sum of two hundred forty-eight thousand six hundred	2687
twenty-five dollars shall be monthly subtracted from the amount so	2688
computed and credited to the highway operating fund. Beginning	2689
August 15, 2005, the sum of seven hundred forty-five thousand	2690
eight hundred seventy-five dollars shall be monthly subtracted	2691
from the amount so computed and credited to the highway operating	2692
fund.	2693

(d) Except as provided in division (D) of this section, the	2694
balance shall be transferred to the highway operating fund and	2695
used for the purposes set forth in division (B)(1) of section	2696
5735.27 of the Revised Code.	2697

(D) Monthly from September to February of each fiscal year,	2698
an amount equal to one-sixth of the amount certified in July of	2699
that year by the treasurer of state pursuant to division (Q) of	2700
section 151.01 of the Revised Code shall, from amounts required to	2701
be credited or transferred to the highway operating fund pursuant	2702
to division (B)(2)(c) or (C)(2)(d) of this section, be credited or	2703
transferred to the highway capital improvement bond service fund	2704
created in section 151.06 of the Revised Code. If, in any of those	2705
months, the amount available to be credited or transferred to the	2706
bond service fund is less than one-sixth of the amount so	2707
certified, the shortfall shall be added to the amount due the next	2708
succeeding month. Any amount still due at the end of the six-month	2709
period shall be credited or transferred as the money becomes	2710
available, until such time as the office of budget and management	2711
receives certification from the treasurer of state or the	2712
treasurer of state's designee that sufficient money has been	2713
credited or transferred to the bond service fund to meet in full	2714
all payments of debt service and financing costs due during the	2715
fiscal year from that fund.	2716

Sec. 5736.01.  As used in this divisionchapter:

2717

(A) "Calendar quarter" and "person" have the same meanings as	2718
in section 5751.01 of the Revised Code.	2719

(B) "Distribution system" means a bulk transfer or terminal	2720
system for the distribution of motor fuel consisting of	2721
refineries, pipelines, marine vessels, and terminals. For the	2722
purposes of this section, motor fuel that is in a refinery,	2723
pipeline, terminal, or marine vessel or that is transporting motor	2724
fuelen route to a refinery, pipeline, or terminal via any method	2725
of transportation is in a "distribution system." Motor fuel is	2726
"outside of a distribution system" if the fuel is in a fuel	2727
storage facility, including, but not limited to, a bulk plant that	2728
is not part of a refinery or terminal, is in the fuel supply tank	2729
of an engine or motor vehicle, or is being transported by a marine	2730
vessel transporting motor fuel to a fuel storage facility that is	2731
not in a distribution system, or a, tank car, rail car, trailer,	2732
truck, or other suitable equipment suitable for ground	2733
transportationto a fuel storage facility that is not in a	2734
distribution system.	2735

(C) "Dyed diesel fuel," "import," "motor fuel," "public	2736
highways," "gasoline," "diesel fuel," "licensed motor fuel	2737
dealer," "licensed permissive motor fuel dealer," and "terminal"	2738
have the same meanings as in section 5735.01 of the Revised Code.	2739
"Gallons" means gross gallons as defined in section 5735.01 of the	2740
Revised Code.	2741

(D) "First sale of motor fuel within this state" means the	2742
initial sale of motor fuel to a point outside a distribution	2743
system, wherever the sale occurs, without regard to where title	2744
transfers or other conditions of sale, when sold for delivery to a	2745
location in this state as that location is shown on the bill of	2746
lading or other similar document issued by the terminal, refinery,	2747
or supplier. "First sale of motor fuel within this state" excludes	2748
the following:	2749

(1) Motor fuel exchanges;

2750

(2) The sale of motor fuel on which the petroleum activity	2751
tax imposed by this chapter was paid in a prior quarterly tax	2752
payment period and on which the supplier may claim a bad debt. As	2753
used in this division, "bad debt" has the same meaning as in	2754
section 5751.01 of the Revised Code.	2755

(E) "GrossCalculated gross receipts" means the sum of the	2756
following:	2757

(1) With respect to sales of gasoline, the product obtained	2758
by multiplying (a) the total amount received by a person, without	2759
deduction for the cost of goods sold or other expenses incurred,	2760
from the first salenumber of gallons of motor fuelgasoline	2761
first sold within this state. For the purposes of division (E) of	2762
this section, "amount received" includes amounts accrued under the	2763
accrual method of accounting. "Gross receipts" shall not include	2764
any of the following amounts:	2765

(1) Receipts derived from the sale of motor fuel when sold	2766
for export to another state;	2767

(2) An amount equal to the federal and state excise taxes	2768
paid by the supplier on the motor fuel;	2769

(3) Bad debts from receipts on the basis of which the tax	2770
imposed by this chapter was paid in a prior quarterly tax payment	2771
period. For the purpose of this division, "bad debts" has the same	2772
meaning as in section 5751.01 of the Revised Code.	2773

(4) Any amount realized from the sale of an account	2774
receivable to the extent the receipts from the underlying	2775
transaction giving rise to the account receivable were included in	2776
the gross receipts of the taxpayerby a supplier during the tax	2777
period by (b) the average wholesale price of a gallon of unleaded	2778
regular gasoline for the calendar quarter that begins six months	2779
before the upcoming calendar quarter, as published by the tax	2780
commissioner under division (C) of section 5736.02 of the Revised	2781
Code;	2782

(2) With respect to sales of motor fuel that is not gasoline,	2783
the product obtained by multiplying (a) the total number of	2784
gallons of motor fuel first sold within this state by a supplier	2785
during the tax period by (b) the average wholesale price of a	2786
gallon of diesel fuel for the calendar quarter that begins six	2787
months before the upcoming calendar quarter, as published by the	2788
tax commissioner under division (C) of section 5736.02 of the	2789
Revised Code.	2790

(F) "Motor fuel used to propel vehicles on public highways	2791
and waterways" includes motor fuel used for the operation of	2792
licensed motor vehicles employed in the maintenance, construction,	2793
or repair of public highways. "Motor fuel used to propel vehicles	2794
on public highways and waterways" does not include dyed diesel	2795
fuel.	2796

(G) "Rack" means a mechanism capable of delivering motor fuel	2797
from a refinery, terminal, or marine vessel into a railroad tank	2798
car, transport truck, tank wagon, fuel supply tank, marine vessel,	2799
or other means of transport outside of a distribution system.	2800

(H) "Refinery" means a facility used to produce motor fuel	2801
and from which motor fuel may be removed by pipeline, by vessel,	2802
or at a rack.	2803

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

2804

(1) A person that sells, exchanges, transfers, or otherwise	2805
distributes motor fuel from a terminal or refinery rack to a point	2806
outside of a distribution system, if the person distributes such	2807
motor fuel at a location in this state;	2808

(2) A person that imports or causes the importation of motor	2809
fuel for sale, exchange, transfer, or other distribution by the	2810
person to a point outside of a distribution system in this state;	2811

(3) A person that knowingly purchases motor fuel from an	2812
unlicensed supplier.	2813

(J) "Tax period" means the calendar quarter on the basis of	2814
which a taxpayer is required to pay the tax imposed under this	2815
chapter.	2816

(K) "Taxpayer" means a person subject to the tax imposed by	2817
this chapter.	2818

(L) "Waterways" means all streams, lakes, ponds, marshes,	2819
water courses, and all other bodies of surface water, natural or	2820
artificial, which are situated wholly or partially within this	2821
state or within its jurisdiction, except private impounded bodies	2822
of water.	2823

(M) "Motor fuel exchange" means an exchange of motor fuel	2824
between two or more suppliers, licensed motor fuel dealers, or	2825
licensed permissive motor fuel dealers if delivery occurs at a	2826
refinery, terminal, pipeline, or marine vessel and if the parties	2827
agree that neither party requires monetary compensation from the	2828
other party for the exchanged fuel other than compensation for	2829
differences in product location, grade, or handling.	2830

Sec. 5736.02.  (A) Beginning with the tax period that	2831
commences July 1, 2014, and continuing for every tax period	2832
thereafter, there is hereby levied an excise tax on each supplier	2833
measured by the supplier's calculated gross receipts derived from	2834
the first sale of motor fuel within this state. The tax due shall	2835
be levied at a rate of six and five-tenths mills for each dollar	2836
of thecomputed by multiplying sixty-five one hundredths of one	2837
per cent by the supplier's calculated gross receipts.	2838

All revenue from the tax shall be distributed as follows:

2839

(1) All revenue from the tax as measured by calculated gross	2840
receipts derived from the sale of motor fuel used for propelling	2841
vehicles on public highways and waterways shall be used for the	2842
purposes of maintaining the state highway system, funding the	2843
enforcement of traffic laws, and covering the costs of	2844
hospitalization of indigent persons injured in motor vehicle	2845
accidents on the public highways.	2846

(2) All revenue not distributed as required by division	2847
(A)(1) of this section shall be used for the purpose of funding	2848
the needs of this state and its local governments.	2849

(B) The tax imposed by this section is in addition to any	2850
other taxes or fees imposed under the Revised Code.	2851

(C) The tax commissioner shall determine and publish, on the	2852
web site of the department of taxation, the statewide average	2853
wholesale prices of a gallon of unleaded regular gasoline and of a	2854
gallon of diesel fuel for each calendar quarter. The	2855
commissioner's determination is presumed to be correct unless	2856
clearly erroneous. The figure shall be published at least fifteen	2857
days before the beginning of the calendar quarter. The	2858
commissioner shall base the average price on pricing information	2859
available from the United States energy information administration	2860
or, if such information is not available from that agency, from	2861
another publicly available source selected by the commissioner.	2862
The commissioner shall first make reasonable efforts to obtain	2863
data specific to this state before using national data to	2864
determine the average wholesale price. The price shall not include	2865
any federal or state excise taxes on the gasoline or diesel fuel,	2866
or the tax imposed by this chapter. The price shall be rounded up	2867
to the nearest one-tenth of one cent.	2868

(D) Nothing in this chapter prohibits a person from	2869
separately or proportionately billing or invoicing the tax imposed	2870
by this section to a purchaser of motor fuel.	2871

(E) The tax imposed by this section applies only to suppliers	2872
having a substantial nexus with this state, as that term is	2873
defined in section 5751.01 of the Revised Code. A supplier that	2874
does not have substantial nexus with the state may voluntarily	2875
obtain a license from the commissioner under section 5736.06 of	2876
the Revised Code. A supplier that voluntarily obtains a license	2877
from the commissioner is entitled to the same benefits and is	2878
subject to the same duties and requirements as are suppliers	2879
required to be licensed with the commissioner.	2880

Sec. 5736.03.  (A) No person shall avoid the tax imposed by	2881
this chapter by receiving motor fuel outside of this state and	2882
transferring the motor fuel into this state within one year. Any	2883
such person shall be considered to have received the fuel in this	2884
state and shall include as, in the calculation of calculated gross	2885
receipts, the valuenumber of gallons of motor fuel the person	2886
transfers into this state within one year after the person	2887
receives the property outside of this state.	2888

(B) Any person that knowingly receives motor fuel from a	2889
supplier that is not licensed as required by section 5736.06 of	2890
the Revised Code shall include in the calculation of the person's	2891
calculated gross receipts the number of gallons of motor fuel the	2892
person received in this state or transported into this state from	2893
the unlicensed supplier.	2894

(C) The tax commissioner may adopt rules necessary to	2895
administer this section.	2896

Sec. 5736.04.  (A) Not later than the tenth day of the second	2897
month after the end of each calendar quarter, every taxpayer shall	2898
file with the tax commissioner a tax return in such form as the	2899
commissioner prescribes. The return shall include, but is not	2900
limited to, the amount of the taxpayer's calculated gross receipts	2901
for the calendar quarter and shall indicate the amount of tax due	2902
under section 5736.02 of the Revised Code for the calendar	2903
quarter. The taxpayer shall indicate on each return the portion of	2904
the taxpayer's gross receipts attributable to motor fuel used for	2905
propelling vehicles on public highways and waterways and the	2906
portion of such receipts attributable to motor fuel used for other	2907
purposes. For this purpose, the sale of gasoline and of diesel	2908
fuel that is not dyed diesel fuel shall be rebuttably presumed to	2909
be distributed or sold for use or used to propel vehicles on	2910
public highways or waterways. All other sales of motor fuel shall	2911
be rebuttably presumed not to be distributed or sold for use or	2912
used to propel vehicles on public highways or waterways.	2913

(B)(1) The taxpayer shall remit the tax shown to be due on	2914
the return, and, if required by the tax commissioner, file the	2915
return, electronically. The commissioner may require taxpayers to	2916
use the Ohio business gateway as defined in section 718.051 of the	2917
Revised Code to file return returns and remit the tax, or may	2918
provide another means for taxpayers to file and remit the tax	2919
electronically.	2920

(2) A person required by this section to remit taxes or file	2921
returns electronically may apply to the commissioner, on the form	2922
prescribed by the commissioner, to be excused from that	2923
requirement. The commissioner may excuse a person from such	2924
requirement for good cause.	2925

(C) The tax rate with respect to calculated gross receipts	2926
for a calendar quarter is not fixed until the end of the	2927
measurement period for each calendar quarter. The total amount of	2928
calculated gross receipts reported for a given calendar quarter	2929
shall be subject to the tax rate in effect in that quarter.	2930

Sec. 5736.041. The tax commissioner shall prepare and	2931
maintain a list of suppliers holding a license issued under	2932
section 5736.06 of the Revised Code that has not been revoked or	2933
canceled under section 5736.07 of the Revised Code. The list shall	2934
contain the names and addresses of all such suppliers and each	2935
supplier's account number for the tax imposed under section	2936
5736.02 of the Revised Code. The list shall be open to public	2937
inspection in the office of the commissioner. The commissioner may	2938
post the list on the department of taxation's web site.	2939

Sec. 5736.06.  (A) No person subject to the tax imposed by	2940
section 5736.02 of the Revised Code shall distribute, import, or	2941
cause the importation of motor fuel for consumption in this state	2942
without holding a supplier's license issued by the tax	2943
commissioner to engage in such activities.	2944

(B)(1) A person subject to the tax imposed by section 5736.02	2945
of the Revised Code shall, on or before March 1, 2014, or within	2946
thirty days of first becoming subject to the tax imposed by this	2947
chapter, whichever is earlier, apply to the tax commissioner for a	2948
supplier's license on the form prescribed by the commissioner.	2949

(2) Each person issued a supplier's license under division	2950
(B)(1) of this section shall apply to renew the license on or	2951
before the first day of March of each year.	2952

(3) With each license application submitted under division	2953
(B)(1) or (2) of this section, the applicant shall pay an	2954
application fee equal to one of the following amounts:	2955

(a) If the applicant solely imports or causes the importation	2956
of motor fuel for sale, exchange, or transfer by the person in	2957
this state, three hundred dollars;	2958

(b) If the applicant engages in activities in addition to	2959
those described in division (B)(3)(a) of this section, one	2960
thousand dollars.	2961

If an applicant timely submits an application under division	2962
(B)(1) of this section on or after the first day of September of	2963
any year, the fee that would apply to the applicant under division	2964
(B)(3)(a) or (b) of this section shall be reduced by one-half.	2965

(4) The failure to apply to the commissioner for a supplier's	2966
license does not relieve a person from the requirement to file	2967
returns and pay the tax imposed by this chapter.	2968

(C) The tax commissioner may refuse to issue a license to any	2969
applicant under this section in the following circumstances:	2970

(1) The applicant has previously had any license canceled for	2971
cause by the commissioner.	2972

(2) The commissioner believes that the application is not	2973
filed in good faith or is filed as a subterfuge in an attempt to	2974
procure a license for another person.	2975

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

2976

(D) If the tax commissioner refuses to issue a license to an	2977
applicant under this section, the applicant is entitled to a	2978
refund of the application fee in accordance with section 5736.08	2979
of the Revised Code. All application fees collected under this	2980
section shall be deposited into the motor fuel receiptspetroleum	2981
activity tax administration fund created in section 5736.13 of the	2982
Revised Code.	2983

(E) No person shall make a false or fraudulent statement on	2984
an application required by this section.	2985

Sec. 5736.09.  (A) The tax commissioner may make an	2986
assessment, based on any information in the commissioner's	2987
possession, against any person that fails to file a return or pay	2988
any tax as required by this chapter. The commissioner shall give	2989
the person assessed written notice of the assessment as provided	2990
in section 5703.37 of the Revised Code. With the notice, the	2991
commissioner shall provide instructions on the manner in which to	2992
petition for reassessment and request a hearing with respect to	2993
the petition.	2994

(B) Unless the person assessed, within sixty days after	2995
service of the notice of assessment, files with the commissioner,	2996
either personally or by certified mail, a written petition signed	2997
by the person or the person's authorized agent having knowledge of	2998
the facts, the assessment becomes final, and the amount of the	2999
assessment is due and payable from the person assessed to the	3000
treasurer of state. The petition shall indicate the objections of	3001
the person assessed, but additional objections may be raised in	3002
writing if received by the commissioner prior to the date shown on	3003
the final determination.	3004

If a petition for reassessment has been properly filed, the	3005
commissioner shall proceed under section 5703.60 of the Revised	3006
Code.	3007

(C)(1) After an assessment becomes final, if any portion of	3008
the assessment, including accrued interest, remains unpaid, a	3009
certified copy of the commissioner's entry making the assessment	3010
final may be filed in the office of the clerk of the court of	3011
common pleas in the county in which the person resides or has its	3012
principal place of business in this state, or in the office of the	3013
clerk of court of common pleas of Franklin county.	3014

(2) Immediately upon the filing of the entry, the clerk shall	3015
enter judgment for the state against the person assessed in the	3016
amount shown on the entry. The judgment may be filed by the clerk	3017
in a loose-leaf book entitled, "special judgments for the motor	3018
fuel receiptspetroleum activity tax" and shall have the same	3019
effect as other judgments. Execution shall issue upon the judgment	3020
at the request of the commissioner, and all laws applicable to	3021
sales on execution shall apply to sales made under the judgment.	3022

(3) If the assessment is not paid in its entirety within	3023
sixty days after the day the assessment was issued, the portion of	3024
the assessment consisting of tax due shall bear interest at the	3025
rate per annum prescribed by section 5703.47 of the Revised Code	3026
from the day the commissioner issues the assessment until it is	3027
paid or until it is certified to the attorney general for	3028
collection under section 131.02 of the Revised Code, whichever	3029
comes first. If the unpaid portion of the assessment is certified	3030
to the attorney general for collection, the entire unpaid portion	3031
of the assessment shall bear interest at the rate per annum	3032
prescribed by section 5703.47 of the Revised Code from the date of	3033
certification until the date it is paid in its entirety. Interest	3034
shall be paid in the same manner as the tax and may be collected	3035
by the issuance of an assessment under this section.	3036

(D) If the commissioner believes that collection of the tax	3037
will be jeopardized unless proceedings to collect or secure	3038
collection of the tax are instituted without delay, the	3039
commissioner may issue a jeopardy assessment against the person	3040
liable for the tax. Immediately upon the issuance of the jeopardy	3041
assessment, the commissioner shall file an entry with the clerk of	3042
the court of common pleas in the manner prescribed by division (C)	3043
of this section. Notice of the jeopardy assessment shall be served	3044
on the person assessed or the person's authorized agent in the	3045
manner provided in section 5703.37 of the Revised Code within five	3046
days of the filing of the entry with the clerk. The total amount	3047
assessed is immediately due and payable, unless the person	3048
assessed files a petition for reassessment in accordance with	3049
division (B) of this section and provides security in a form	3050
satisfactory to the commissioner and in an amount sufficient to	3051
satisfy the unpaid balance of the assessment. Full or partial	3052
payment of the assessment does not prejudice the commissioner's	3053
consideration of the petition for reassessment.	3054

(E) The commissioner shall immediately forward to the	3055
treasurer of state all amounts the commissioner receives under	3056
this section, and such amounts shall be considered as revenue	3057
arising from the tax imposed under this chapter.	3058

(F) Except as otherwise provided in this division, no	3059
assessment shall be made or issued against a taxpayer for the tax	3060
imposed under this chapter more than four years after the due date	3061
for the filing of the return for the tax period for which the tax	3062
was reported, or more than four years after the return for the tax	3063
period was filed, whichever is later. The time limit may be	3064
extended if both the taxpayer and the commissioner consent in	3065
writing to the extension or enter into an agreement waiving or	3066
extending the time limit. Any such extension shall extend the	3067
four-year time limit in division (A) of section 5736.08 of the	3068
Revised Code for the same period of time. Nothing in this division	3069
bars an assessment against a taxpayer that fails to file a return	3070
required by this chapter or that files a fraudulent return.	3071

(G) If the commissioner possesses information that indicates	3072
that the amount of tax a taxpayer is required to pay under this	3073
chapter exceeds the amount the taxpayer paid, the commissioner may	3074
audit a sample of the taxpayer's calculated gross receipts over a	3075
representative period of time to ascertain the amount of tax due,	3076
and may issue an assessment based on the audit. The commissioner	3077
shall make a good faith effort to reach agreement with the	3078
taxpayer in selecting a representative sample. The commissioner	3079
may apply a sampling method only if the commissioner has	3080
prescribed the method by rule.	3081

(H) If the whereabouts of a person subject to this chapter is	3082
not known to the commissioner, the commissioner shall follow the	3083
procedures under section 5703.37 of the Revised Code.	3084

Sec. 5736.13.  (A) For the purpose of receiving, accounting	3085
for, and distributing revenue received from the tax imposed by	3086
section 5736.02 of the Revised Code, the following funds are	3087
hereby created in the state treasury:	3088

(1) The motor fuel receiptspetroleum activity tax fund;

3089

(2) The motor fuel receiptspetroleum activity tax	3090
administration fund. All amounts credited to the motor fuel	3091
receiptspetroleum activity tax administration fund shall be used	3092
solely for the purpose of paying the expenses of the department of	3093
taxation incident to the administration of the tax imposed by	3094
section 5736.02 of the Revised Code.	3095

(3) The motor fuel receiptspetroleum activity tax public	3096
highways fund.	3097

(B) All money collected from the tax imposed by section	3098
5736.02 of the Revised Code shall be deposited into the motor fuel	3099
receiptspetroleum activity tax fund.	3100

(C) From the motor fuel receiptspetroleum activity tax fund,	3101
the director of budget and management shall place to the credit of	3102
the tax refund fund established by section 5703.052 of the Revised	3103
Code amounts equal to the refunds certified by the tax	3104
commissioner pursuant to section 5736.08 of the Revised Code.	3105

(D) Not later than the last day of March, June, September,	3106
and December of each year, the director of budget and management	3107
shall provide for the transfer of the balance of the motor fuel	3108
receiptspetroleum activity tax fund as of the last day of the	3109
preceding month, excluding any amounts required to be transferred	3110
as provided in division (C) of this section, as follows:	3111

(1) To the motor fuel receiptspetroleum activity tax	3112
administration fund, one per cent;	3113

(2) To the motor fuel receiptspetroleum activity tax public	3114
highways fund, an amount that bears the same ratio to the balance	3115
in the motor fuel receiptspetroleum activity tax fund, after	3116
subtracting the amount transferred under division (D)(1) of this	3117
section, that (a) the calculated gross receipts attributed to	3118
motor fuel used for propelling vehicles on public highways and	3119
waterways as indicated by returns filed by the last day of the	3120
preceding month, bears to (b) all calculated gross receipts as	3121
indicated by those returns;	3122

(3) To the general revenue fund, the amount remaining after	3123
the transfers required by divisions (D)(1) and (2) of this	3124
section.	3125

Sec. 5736.50. (A) A taxpayer granted a credit by the tax	3126
credit authority under section 122.17 or division (B)(2) or (3) of	3127
section 122.171 of the Revised Code may claim a refundable credit	3128
against the tax imposed under this chapter. For the purpose of	3129
making tax payments under this chapter, taxes equal to the amount	3130
of the refundable credit shall be considered to be paid on the	3131
first day of the tax period.	3132

(B) A taxpayer granted a credit by the tax credit authority	3133
under division (B)(1) of section 122.171 of the Revised Code may	3134
claim a nonrefundable tax credit against the tax imposed under	3135
this chapter.	3136

(C) Credits authorized in division (A) or (B) of this section	3137
shall not be claimed for any tax period beginning after the date	3138
on which a relocation of employment positions occurs in violation	3139
of an agreement entered into under section 122.17 or 122.171 of	3140
the Revised Code.	3141

(D) A taxpayer may claim any unused portion of the credit	3142
authorized under division (B) of section 5751.50 of the Revised	3143
Code against the tax imposed under this chapter. No credit shall	3144
be allowed under this division if the credit was available against	3145
the tax imposed under section 5751.02 of the Revised Code except	3146
to the extent the credit was not applied against that tax.	3147

(E) The amount of a credit claimed under division (B) or (D)	3148
of this section shall not exceed the tax otherwise due for the tax	3149
period. If the credit allowed under division (B) or (D) of this	3150
section exceeds the tax otherwise due, the excess may be carried	3151
forward to the extent authorized by section 122.171 of the Revised	3152
Code.	3153

If a taxpayer is authorized to claim credits under division	3154
(A) and either or both of divisions (B) and (D) of this section	3155
for the same tax period, the taxpayer shall claim the credit	3156
allowed under division (B) or (D) before the credit allowed under	3157
division (A) of this section.	3158

Sec. 5743.01.  As used in this chapter:

3159

(A) "Person" includes individuals, firms, partnerships,	3160
associations, joint-stock companies, corporations, combinations of	3161
individuals of any form, and the state and any of its political	3162
subdivisions.	3163

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

3164

(1) Who bring in or cause to be brought into this state	3165
unstamped cigarettes purchased directly from the manufacturer,	3166
producer, or importer of cigarettes for sale in this state but	3167
does not include persons who bring in or cause to be brought into	3168
this state cigarettes with respect to which no evidence of tax	3169
payment is required thereon as provided in section 5743.04 of the	3170
Revised Code; or	3171

(2) Who are engaged in the business of selling cigarettes or	3172
tobacco products to others for the purpose of resale.	3173

"Wholesale dealer" does not include any cigarette	3174
manufacturer, export warehouse proprietor, or importer with a	3175
valid permit under 26 U.S.C. 5713 if that person sells cigarettes	3176
in this state only to wholesale dealers holding valid and current	3177
licenses under section 5743.15 of the Revised Code or to an export	3178
warehouse proprietor or another manufacturer.	3179

(C) "Retail dealer" includes:

3180

(1) In reference to dealers in cigarettes, every person other	3181
than a wholesale dealer engaged in the business of selling	3182
cigarettes in this state, regardless of whether the person is	3183
located in this state or elsewhere, and regardless of quantity,	3184
amount, or number of sales;	3185

(2) In reference to dealers in tobacco products, any person	3186
in this state engaged in the business of selling tobacco products	3187
to ultimate consumers in this state, regardless of quantity,	3188
amount, or number of sales.	3189

(D) "Sale" includes exchange, barter, gift, offer for sale,	3190
and distribution, and includes transactions in interstate or	3191
foreign commerce.	3192

(E) "Cigarettes" includes any roll for smoking made wholly or	3193
in part of tobacco, irrespective of size or shape, and whether or	3194
not such tobacco is flavored, adulterated, or mixed with any other	3195
ingredient, the wrapper or cover of which is made of paper,	3196
reconstituted cigarette tobacco, homogenized cigarette tobacco,	3197
cigarette tobacco sheet, or any similar materials other than cigar	3198
tobacco.	3199

(F) "Package" means the individual package, box, or other	3200
container in or from which retail sales of cigarettes are normally	3201
made or intended to be made.	3202

(G) "Stamp" includes an impression made by a metering device	3203
as provided for in section 5743.04 of the Revised Code.	3204

(H) "Storage" includes any keeping or retention of cigarettes	3205
or tobacco products for use or consumption in this state.	3206

(I)(H) "Use" includes the exercise of any right or power	3207
incidental to the ownership of cigarettes or tobacco products.	3208

(J)(I) "Tobacco product" or "other tobacco product" means any	3209
product made from tobacco, other than cigarettes, that is made for	3210
smoking or chewing, or both, and snuff.	3211

(K)(J) "Wholesale price" means the invoice price, including	3212
all federal excise taxes, at which the manufacturer of the tobacco	3213
product sells the tobacco product to unaffiliated distributors,	3214
excluding any discounts based on the method of payment of the	3215
invoice or on time of payment of the invoice. If the taxpayer buys	3216
from other than a manufacturer, "wholesale price" means the	3217
invoice price, including all federal excise taxes and excluding	3218
any discounts based on the method of payment of the invoice or on	3219
time of payment of the invoice.	3220

(L)(K) "Distributor" means:

3221

(1) Any manufacturer who sells, barters, exchanges, or	3222
distributes tobacco products to a retail dealer in the state,	3223
except when selling to a retail dealer that has filed with the	3224
manufacturer a signed statement agreeing to pay and be liable for	3225
the tax imposed by section 5743.51 of the Revised Code;	3226

(2) Any wholesale dealer located in the state who receives	3227
tobacco products from a manufacturer, or who receives tobacco	3228
products on which the tax imposed by this chapter has not been	3229
paid;	3230

(3) Any wholesale dealer located outside the state who sells,	3231
barters, exchanges, or distributes tobacco products to a wholesale	3232
or retail dealer in the state; or	3233

(4) Any retail dealer who receives tobacco products on which	3234
the tax has not or will not be paid by another distributor,	3235
including a retail dealer that has filed a signed statement with a	3236
manufacturer in which the retail dealer agrees to pay and be	3237
liable for the tax that would otherwise be imposed on the	3238
manufacturer by section 5743.51 of the Revised Code.	3239

(M)(L) "Taxpayer" means any person liable for the tax imposed	3240
by section 5743.51, 5743.62, or 5743.63 of the Revised Code.	3241

(N)(M) "Seller" means any person located outside this state	3242
engaged in the business of selling tobacco products to consumers	3243
for storage, use, or other consumption in this state.	3244

(O)(N) "Manufacturer" means any person who manufactures and	3245
sells cigarettes or tobacco products.	3246

(P)(O) "Importer" means any person that is authorized, under	3247
a valid permit issued under Section 5713 of the Internal Revenue	3248
Code, to import finished cigarettes into the United States, either	3249
directly or indirectly.	3250

(Q)(P) "Little cigar" means any roll for smoking, other than	3251
cigarettes, made wholly or in part of tobacco that uses an	3252
integrated cellulose acetate filter or other filter and is wrapped	3253
in any substance containing tobacco, other than natural leaf	3254
tobacco.	3255

Sec. 5743.021.  (A) As used in this section, "qualifying	3256
regional arts and cultural district" means a regional arts and	3257
cultural district created under section 3381.04 of the Revised	3258
Code in a county having a population of one million two hundred	3259
thousand or more according to the 2000 federal decennial census.	3260

(B) For one or more of the purposes for which a tax may be	3261
levied under section 3381.16 of the Revised Code and for the	3262
purposes of paying the expenses of administering the tax and the	3263
expenses charged by a board of elections to hold an election on a	3264
question submitted under this section, the board of county	3265
commissioners of a county that has within its territorial	3266
boundaries a qualifying regional arts and cultural district may	3267
levy a tax on the sale of cigarettes sold for resale at retail in	3268
the county composing the district. The rate of the tax, when added	3269
to the rate of any other tax concurrently levied by the board	3270
under this section, shall not exceed fifteen mills per cigarette,	3271
and shall be computed on each cigarette sold. Only one sale of the	3272
same article shall be used in computing the amount of tax due. The	3273
tax may be levied for any number of years not exceeding ten years.	3274

The tax shall be levied pursuant to a resolution of the board	3275
of county commissioners approved by a majority of the electors in	3276
the county voting on the question of levying the tax. The	3277
resolution shall specify the rate of the tax, the number of years	3278
the tax will be levied, and the purposes for which the tax is	3279
levied. The election may be held on the date of a general,	3280
primary, or special election held not sooner than ninety days	3281
after the date the board certifies its resolution to the board of	3282
elections. If approved by the electors, the tax shall take effect	3283
on the first day of the month specified in the resolution but not	3284
sooner than the first day of the month that is at least sixty days	3285
after the certification of the election results by the board of	3286
elections. A copy of the resolution levying the tax shall be	3287
certified to the tax commissioner at least sixty days prior to the	3288
date on which the tax is to become effective.	3289

(C) The form of the ballot in an election held under this	3290
section shall be as follows, or in any other form acceptable to	3291
the secretary of state:	3292

"For the purpose of .......... (insert the purpose or	3293
purposes of the tax), shall an excise tax be levied throughout	3294
.......... County for the benefit of the ........... (name of the	3295
qualifying regional arts and cultural district) on the sale of	3296
cigarettes at wholesale at the rate of .... mills per cigarette	3297
for ..... years?	3298

3299

		For the tax			3300
		Against the tax	"		3301

(D) The treasurer of state shall credit all moneysAll money	3302
arising from taxes levied on behalf of each district under this	3303
section and section 5743.321 of the Revised Code shall be credited	3304
as follows:	3305

(1) To the tax refund fund created by section 5703.052 of the	3306
Revised Code, amounts equal to the refunds from each tax levied	3307
under this section certified by the tax commissioner pursuant to	3308
section 5743.05 of the Revised Code;	3309

(2) Following the crediting of amounts pursuant to division	3310
(D)(1) of this section:	3311

(a) To the permissive tax distribution fund created under	3312
section 4301.423 of the Revised Code, an amount equal to	3313
ninety-eight per cent of the remainder collected;	3314

(b) To the local excise tax administrative fund, which is	3315
hereby created in the state treasury, an amount equal to two per	3316
cent of such remainder, for use by the tax commissioner in	3317
defraying costs incurred in administering the tax.	3318

On or before the second working day of each month, the	3319
treasurer of state shall certify to the tax commissioner the	3320
amount of taxes levied on behalf of each district under sections	3321
5743.021 and 5743.321 of the Revised Code and paid to the	3322
treasurer of state during the preceding month.	3323

On or before the tenth day of each month, the tax	3324
commissioner shall distribute the amount credited to the	3325
permissive tax distribution fund during the preceding month by	3326
providing for payment of the appropriate amount to the county	3327
treasurer of the county in which the tax is levied.	3328

Sec. 5743.024.  (A) For the purposes of section 307.696 of	3329
the Revised Code, to pay the expenses of administering the tax,	3330
and to pay any or all of the charge the board of elections makes	3331
against the county to hold the election on the question of levying	3332
the tax, or for such purposes and to provide revenues to the	3333
county for permanent improvements, the board of county	3334
commissioners may levy a tax on sales of cigarettes sold for	3335
resale at retail in the county. The tax shall not exceed two and	3336
twenty-five hundredths of a mill per cigarette, and shall be	3337
computed on each cigarette sold. The tax may be levied for any	3338
number of years not exceeding twenty. Only one sale of the same	3339
article shall be used in computing the amount of tax due.	3340

The tax shall be levied pursuant to a resolution of the	3341
county commissioners approved by a majority of the electors in the	3342
county voting on the question of levying the tax. The resolution	3343
shall specify the rate of the tax, the number of years the tax	3344
will be levied, and the purposes for which the tax is levied. Such	3345
election may be held on the date of a general or special election	3346
held not sooner than ninety days after the date the board	3347
certifies its resolution to the board of elections. If approved by	3348
the electors, the tax shall take effect on the first day of the	3349
month specified in the resolution but not sooner than the first	3350
day of the month that is at least sixty days after the	3351
certification of the election results by the board of elections. A	3352
copy of the resolution levying the tax shall be certified to the	3353
tax commissioner at least sixty days prior to the date on which	3354
the tax is to become effective.	3355

A resolution under this section may be joined on the ballot	3356
as a single question with a resolution adopted under section	3357
307.697 or 4301.421 of the Revised Code to levy a tax for the same	3358
purposes and for the purpose of paying the expenses of	3359
administering the tax. The form of the ballot in an election held	3360
pursuant to this section shall be as prescribed in section 307.697	3361
of the Revised Code.	3362

(B) The treasurer of state shall credit all moneysAll money	3363
arising from each county's taxes levied under this section and	3364
section 5743.323 of the Revised Code shall be credited as follows:	3365

(1) To the tax refund fund created by section 5703.052 of the	3366
Revised Code, amounts equal to the refunds from each tax levied	3367
under this section certified by the tax commissioner pursuant to	3368
section 5743.05 of the Revised Code;	3369

(2) Following the crediting of amounts pursuant to division	3370
(B)(1) of this section:	3371

(a) To the permissive tax distribution fund created by	3372
division (B)(1) of section 4301.423 of the Revised Code, an amount	3373
equal to ninety-eight per cent of the remainder collected;	3374

(b) To the local excise tax administrative fund, which is	3375
hereby created in the state treasury, an amount equal to two per	3376
cent of such remainder, for use by the tax commissioner in	3377
defraying costs incurred in administering the tax.	3378

On or before the second working day of each month, the	3379
treasurer of state shall certify to the tax commissioner the	3380
amount of each county's taxes levied under sections 5743.024 and	3381
5743.323 of the Revised Code and paid to the treasurer of state	3382
during the preceding month.	3383

On or before the tenth day of each month, the tax	3384
commissioner shall distribute the amount credited to the	3385
permissive tax distribution fund during the preceding month by	3386
providing for payment of the appropriate amount to the county	3387
treasurer of each county levying the tax.	3388

(C) The board of county commissioners of a county in which a	3389
tax is imposed under this section on the effective date of the	3390
amendment of this section by H.B. 59 of the 130th general	3391
assembly, September 29, 2013, may levy a tax for the purpose of	3392
section 307.673 of the Revised Code regardless of whether or not	3393
the cooperative agreement authorized under that section has been	3394
entered into prior to the day the resolution adopted under	3395
division (C)(1) or (2) of this section is adopted, for the purpose	3396
of reimbursing a county for costs incurred in the construction of	3397
a sports facility pursuant to an agreement entered into by the	3398
county under section 307.696 of the Revised Code, or for the	3399
purpose of paying the costs of capital repairs of and improvements	3400
to a sports facility. The tax shall be levied and approved in one	3401
of the manners prescribed by division (C)(1) or (2) of this	3402
section.	3403

(1) The tax may be levied pursuant to a resolution adopted by	3404
a majority of the members of the board of county commissioners not	3405
later than forty-five days after July 19, 1995. A board of county	3406
commissioners approving a tax under division (C)(1) of this	3407
section may approve a tax under division (D)(1) of section 307.697	3408
or division (B)(1) of section 4301.421 of the Revised Code at the	3409
same time. Subject to the resolution being submitted to a	3410
referendum under sections 305.31 to 305.41 of the Revised Code,	3411
the resolution shall take effect immediately, but the tax levied	3412
pursuant to the resolution shall not be levied prior to the day	3413
following the last day that any tax previously levied pursuant to	3414
this division may be levied.	3415

(2) The tax may be levied pursuant to a resolution adopted by	3416
a majority of the members of the board of county commissioners not	3417
later than September 1, 2015, and approved by a majority of the	3418
electors of the county voting on the question of levying the tax.	3419
The board of county commissioners shall certify a copy of the	3420
resolution to the board of elections immediately upon adopting a	3421
resolution under division (C)(2) of this section. The election may	3422
be held on the date of a general or special election held not	3423
sooner than ninety days after the date the board certifies its	3424
resolution to the board of elections. The form of the ballot shall	3425
be as prescribed by division (C) of section 307.697 of the Revised	3426
Code, except that the phrase "paying not more than one-half of the	3427
costs of providing a sports facility together with related	3428
redevelopment and economic development projects" shall be replaced	3429
by the phrase "paying the costs of constructing, renovating,	3430
improving, or repairing a sports facility and reimbursing a county	3431
for costs incurred by the county in the construction of a sports	3432
facility," and the phrase ", beginning .......... (here insert the	3433
earliest date the tax would take effect)" shall be appended after	3434
"years." A board of county commissioners submitting the question	3435
of a tax under division (C)(2) of this section may submit the	3436
question of a tax under division (D)(2) of section 307.697 or	3437
division (B)(2) of section 4301.421 of the Revised Code as a	3438
single question, and the form of the ballot shall include each of	3439
the proposed taxes.	3440

If approved by a majority of electors voting on the question,	3441
the tax shall take effect on the day specified on the ballot,	3442
which shall not be earlier than the day following the last day	3443
that any tax previously levied pursuant to this division may be	3444
levied.	3445

The rate of a tax levied pursuant to division (C)(1) or (2)	3446
of this section shall not exceed the rate specified in division	3447
(A) of this section. A tax levied pursuant to division (C)(1) or	3448
(2) of this section may be levied for any number of years not	3449
exceeding twenty.	3450

A board of county commissioners adopting a resolution under	3451
this division shall certify a copy of the resolution to the tax	3452
commissioner immediately upon adoption of the resolution.	3453

(D) No tax shall be levied under division (A) of this section	3454
on or after September 23, 2008. This division does not apply to a	3455
tax levied under division (C) of this section, and does not	3456
prevent the collection of any tax levied under this section before	3457
September 23, 2008, so long as that tax remains effective.	3458

Sec. 5743.025.  In addition to the return required by section	3459
5743.03 of the Revised Code, each retail dealer in a county in	3460
which a tax is levied under section 5743.021, 5743.024, or	3461
5743.026 of the Revised Code shall, within thirty days after the	3462
date on which the tax takes effect, make and file a return, on	3463
forms prescribed by the tax commissioner, showing the total number	3464
of cigarettes which such retail dealer had on hand as of the	3465
beginning of business on the date on which the tax takes effect,	3466
and such other information as the commissioner deems necessary for	3467
the administration of section 5743.021, 5743.024, or 5743.026 of	3468
the Revised Code. Each retail dealer shall deliver the return	3469
together with a remittance of the additional amount of tax due on	3470
the cigarettes shown on such return to the treasurer of state. The	3471
treasurer of state shall stamp or otherwise mark on the return the	3472
date it was received and shall also show thereon by stamp or	3473
otherwise the tax payment remitted with the return. Thereafter,	3474
the treasurer of state shall immediately transmit all returns	3475
filed under this section to the tax commissioner. Any retail	3476
dealer who fails to file a return under this section shall, for	3477
each day the retail dealer so fails, forfeit and pay into the	3478
state treasury the sum of one dollar as revenue arising from the	3479
tax imposed by section 5743.021, 5743.024, or 5743.026 of the	3480
Revised Code, and such sum may be collected by assessment in the	3481
manner provided in section 5743.081 of the Revised Code. For	3482
thirty days after the effective date of a tax imposed by section	3483
5743.021, 5743.024, or 5743.026 of the Revised Code, a retail	3484
dealer may possess for sale or sell in the county in which the tax	3485
is levied cigarettes not bearing the stamp or impression required	3486
by section 5743.03 of the Revised Code to evidence payment of the	3487
county tax but on which the tax has or will be paid.	3488

Sec. 5743.03. (A) Except as provided in section 5743.04 of	3489
the Revised Code, the taxes imposed under sections 5743.02,	3490
5743.021, 5743.024, and 5743.026 of the Revised Code shall be paid	3491
by the purchase of tax stamps. A tax stamp shall be affixed to	3492
each package of an aggregate denomination not less than the amount	3493
of the tax upon the contents thereof. The tax stamp, so affixed,	3494
shall be prima-facie evidence of payment of the tax.	3495

Except as is provided in the rules prescribed by the tax	3496
commissioner under authority of sections 5743.01 to 5743.20 of the	3497
Revised Code, and unless tax stamps have been previously affixed,	3498
they shall be so affixed by each wholesale dealer, and canceled by	3499
writing or stamping across the face thereof the number assigned to	3500
such wholesale dealer by the tax commissioner for that purpose,	3501
prior to the delivery of any cigarettes to any person in this	3502
state, or in the case of a tax levied pursuant to section	3503
5743.021, 5743.024, or 5743.026 of the Revised Code, prior to the	3504
delivery of cigarettes to any person in the county in which the	3505
tax is levied.	3506

(B) Except as provided in the rules prescribed by the	3507
commissioner under authority of sections 5743.01 to 5743.20 of the	3508
Revised Code, each retail dealer, within twenty-four hours after	3509
the receipt of any cigarettes at the retail dealer's place of	3510
business, shall inspect the cigarettes to ensure that tax stamps	3511
are affixed. The inspection shall be completed before the	3512
cigarettes are delivered to any person in this state, or, in the	3513
case of a tax levied pursuant to section 5743.021, 5743.024, or	3514
5743.026 of the Revised Code, before the cigarettes are delivered	3515
to any person in the county in which the tax is levied.	3516

(C) Whenever any cigarettes are found in the place of	3517
business of any retail dealer without proper tax stamps affixed	3518
thereto and canceled, it is presumed that such cigarettes are kept	3519
therein in violation of sections 5743.01 to 5743.20 of the Revised	3520
Code.	3521

(D) Each wholesale dealer who purchases cigarettes without	3522
proper tax stamps affixed thereto shall, on or before the	3523
thirty-first day of the month following the close of each	3524
semiannual period, which period shall end on the thirtieth day of	3525
June and the thirty-first day of December of each year, make and	3526
file a return of the preceding semiannual period, on such form as	3527
is prescribed by the tax commissioner, showing the dealer's entire	3528
purchases and sales of cigarettes and stamps or impressions for	3529
such semiannual period and accurate inventories as of the	3530
beginning and end of each semiannual period of cigarettes, stamped	3531
or unstamped; cigarette tax stamps affixed or unaffixed and unused	3532
meter impressions; and such other information as the commissioner	3533
finds necessary to the proper administration of sections 5743.01	3534
to 5743.20 of the Revised Code. The commissioner may extend the	3535
time for making and filing returns and may remit all or any part	3536
of amounts of penalties that may become due under sections 5743.01	3537
to 5743.20 of the Revised Code. The wholesale dealer shall deliver	3538
the return together with a remittance of the tax deficiency	3539
reported thereon to the treasurer of state. The treasurer of state	3540
shall stamp or otherwise mark on the return the date it was	3541
received and shall also show thereon by stamp or otherwise a	3542
payment or nonpayment of the deficiency shown by the return.	3543
Thereafter, the treasurer of state shall immediately transmit all	3544
returns filed under this section to the commissioner.	3545

(E) Any wholesale dealer who fails to file a return under	3546
this section and the rules of the commissioner, other than a	3547
report required pursuant to division (F) of this section, may be	3548
required, for each day the dealer so fails, to forfeit and pay	3549
into the state treasury the sum of one dollar as revenue arising	3550
from the tax imposed by sections 5743.01 to 5743.20 of the Revised	3551
Code and such sum may be collected by assessment in the manner	3552
provided in section 5743.081 of the Revised Code. If the	3553
commissioner finds it necessary in order to insure the payment of	3554
the tax imposed by sections 5743.01 to 5743.20 of the Revised	3555
Code, the commissioner may require returns and payments to be made	3556
other than semiannually. The returns shall be signed by the	3557
wholesale dealer or an authorized agent thereof.	3558

(F) Each person required to file a tax return under section	3559
5743.03, 5743.52, or 5743.62 of the Revised Code shall report to	3560
the commissioner the quantity of all cigarettes and roll-your-own	3561
cigarette tobacco sold in Ohio for each brand not covered by the	3562
tobacco master settlement agreement for which the person is liable	3563
for the taxes levied under section 5743.02, 5743.51, or 5743.62 of	3564
the Revised Code.	3565

As used in this division, "tobacco master settlement	3566
agreement" has the same meaning as in section 183.01 of the	3567
Revised Code.	3568

(G) The report required by division (F) of this section shall	3569
be made on a form prescribed by the commissioner and shall be	3570
filed not later than the last day of each month for the previous	3571
month, except that if the commissioner determines that the	3572
quantity reported by a person does not warrant monthly reporting,	3573
the commissioner may authorize reporting at less frequent	3574
intervals. The commissioner may assess a penalty of not more than	3575
two hundred fifty dollars for each month or portion thereof that a	3576
person fails to timely file a required report, and such sum may be	3577
collected by assessment in the manner provided in section 5743.081	3578
of the Revised Code. All money collected under this division shall	3579
be considered as revenue arising from the taxes imposed by	3580
sections 5743.01 to 5743.20 of the Revised Code.	3581

(H) The treasurer of stateor an agent of thetreasurer	3582
commissioner may sell tax stamps only to a licensed wholesale	3583
dealer, except as otherwise authorized by the commissioner. The	3584
treasureror an agent of thetreasurercommissioner may charge	3585
the costs associated with the shipment of tax stamps to the	3586
licensed wholesale dealer. Amounts collected from such charges	3587
shall be credited to the treasurer of state's administrative	3588
cigarette tax enforcement fund created under section 113.20	3589
5743.15 of the Revised Code.	3590

Sec. 5743.04.  The tax commissioner shall design and procure	3591
the stamps provided for in section 5743.03 of the Revised Code and	3592
shall enforce and administer sections 5743.01 to 5743.44 of the	3593
Revised Code. With respect to packages containing any number of	3594
cigarettes other than twenty, if the commissioner finds that it is	3595
practicable to collect the taxes levied under sections 5743.02,	3596
5743.021, 5743.024, and 5743.026 of the Revised Code by any method	3597
other than that provided in this section and section 5743.03 of	3598
the Revised Code, the commissioner may by rule prescribe such	3599
other method for payment of the taxes upon such packages of	3600
cigarettes as will adequately protect the revenue; provided, that	3601
in any case where the commissioner prescribes that the taxes upon	3602
such packages of cigarettes shall be paid on the basis of returns	3603
filed by a wholesale or retail dealer, said returns, together with	3604
a remittance of all taxes due as shown thereon, shall be filed	3605
with the treasurer of statecommissioner not later than the tenth	3606
day of the month following the month in which such cigarettes are	3607
sold in this state. The commissioner may promulgate rules in	3608
accordance with sections 119.01 to 119.13 of the Revised Code as	3609
the commissioner deems necessary to carry out sections 5743.01 to	3610
5743.44 of the Revised Code and may adopt different detailed rules	3611
applicable to diverse methods and conditions of sale of	3612
cigarettes, prescribing, in each class of cases, upon whom, as	3613
between the wholesale dealer and the retail dealer, the primary	3614
duty of affixing stamps shall rest, and the manner in which stamps	3615
shall be affixed. A copy of such rules shall be furnished to every	3616
licensed dealer as provided in sections 119.01 to 119.13 of the	3617
Revised Code. Any such rule so furnished which excuses a wholesale	3618
dealer from affixing stamps under the circumstances of the	3619
particular case shall be a defense in the prosecution of such	3620
dealer for violation of section 5743.03 of the Revised Code.	3621

The commissioner, after determining that it is practicable to	3622
evidence payment of the taxes levied under sections 5743.02,	3623
5743.021, 5743.024, and 5743.026 of the Revised Code by impression	3624
made by a metering device, shall by resolution provide that such	3625
metering device may be used in lieu of the stamps otherwise	3626
provided for in section 5743.03 of the Revised Code. The	3627
commissioner may authorize any wholesale or retail dealer to use	3628
the metering device approved by the commissioner. Such device	3629
before being used shall be sealed by the treasurer of state, and	3630
shall be used only in accordance with the rules prescribed by the	3631
commissioner.	3632

Wholesale and retail dealers authorized to use said device	3633
shall prepay the tax represented by meter impressions and shall	3634
deliver the metering device to the treasurer of state or county	3635
treasurer in the county in which the place of business of any	3636
wholesaler or retailer is located if such treasurer is designated	3637
by the treasurer of state, who shall seal the meter in accordance	3638
with the prepayments so made.	3639

Sec. 5743.05. AllThe tax commissioner shall sell all stamps	3640
provided for by section 5743.03 of the Revised Code, when procured	3641
by the tax commissioner, shall be immediately delivered to the	3642
treasurer of state, who shall execute a receipt therefor showing	3643
the number and aggregate face value of each denomination received	3644
by the treasurer of state and any other information that the	3645
commissioner requires to enforce the collection and distribution	3646
of all taxes imposed under section 5743.021, 5743.024, or 5743.026	3647
of the Revised Code, and deliver the receipt to the commissioner.	3648
The treasurer of state shall sell the stamps and, on the fifth day	3649
of each month, make a report showing all sales made during the	3650
preceding month, with the names of purchasers, the number of each	3651
denomination, the aggregate face value purchased by each, and any	3652
other information as the commissioner requires to enforce the	3653
collection and distribution of all taxes imposed under section	3654
5743.021, 5743.024, or 5743.026 of the Revised Code, and deliver	3655
it to the commissioner. The treasurer of state shall be	3656
accountable for all stamps received and unsold. The stamps shall	3657
be sold and accounted for at their face value, except the	3658
commissioner shall, by rule certified to the treasurer of state,	3659
authorize the sale of stamps and meter impressions to wholesale or	3660
retail dealers in this state, or to wholesale dealers outside this	3661
state, at a discount of not less than one and eight-tenths per	3662
cent or more than ten per cent of their face value, as a	3663
commission for affixing and canceling the stamps or meter	3664
impressions.	3665

The commissioner, by rule certified to the treasurer of	3666
state, shall authorize the delivery of stamps and meter	3667
impressions to wholesale dealers in this state and to wholesale	3668
dealers outside this state on credit. If such a dealer has not	3669
been in good credit standing with this state for five consecutive	3670
years preceding the purchase, the tax commissioner shall require	3671
the dealer to file with the commissioner a bond to the state in	3672
the amount and in the form prescribed by the commissioner, with	3673
surety to the satisfaction of the commissioner, conditioned on	3674
payment to the treasurer of state or the commissioner within	3675
thirty days for stamps or meter impressions delivered within that	3676
time. If such a dealer has been in good credit standing with this	3677
state for five consecutive years preceding the purchase, the tax	3678
commissioner shall not require that the dealer file such a bond	3679
but shall require payment for the stamps and meter impressions	3680
within thirty days after purchase of the stamps and meter	3681
impressions. Stamps and meter impressions sold to a dealer not	3682
required to file a bond shall be sold at face value. The maximum	3683
amount that may be sold on credit to a dealer not required to file	3684
a bond shall equal one hundred ten per cent of the dealer's	3685
average monthly purchases over the preceding calendar year. The	3686
maximum amount shall be adjusted to reflect any changes in the tax	3687
rate and may be adjusted, upon application to the tax commissioner	3688
by the dealer, to reflect changes in the business operations of	3689
the dealer. The maximum amount shall be applicable to the period	3690
of July through April. Payment by a dealer not required to file a	3691
bond shall be remitted by electronic funds transfer as prescribed	3692
by section 5743.051 of the Revised Code. If a dealer not required	3693
to file a bond fails to make the payment in full within the	3694
thirty-day period, the treasurer of statecommissioner shall not	3695
thereafter sell stamps or meter impressions to that dealer until	3696
the dealer pays the outstanding amount, including penalty and	3697
interest on that amount as prescribed in this chapter, and the	3698
commissioner thereafter may require the dealer to file a bond	3699
until the dealer is restored to good standing. The commissioner	3700
shall limit delivery of stamps and meter impressions on credit to	3701
the period running from the first day of July of the fiscal year	3702
until the first day of the following May. Any discount allowed as	3703
a commission for affixing and canceling stamps or meter	3704
impressions shall be allowed with respect to sales of stamps and	3705
meter impressions on credit.	3706

The treasurer of statecommissioner shall redeem and pay for	3707
any destroyed, unused, or spoiled tax stamps and any unused meter	3708
impressions at their net value, and shall refund to wholesale	3709
dealers the net amount of state and county taxes paid erroneously	3710
or paid on cigarettes that have been sold in interstate or foreign	3711
commerce or that have become unsalable, and the net amount of	3712
county taxes that were paid on cigarettes that have been sold at	3713
retail or for retail sale outside a taxing county.	3714

An application for a refund of tax shall be filed with the	3715
tax commissioner, on the form prescribed by the commissioner for	3716
that purpose, within three years from the date the tax stamps are	3717
destroyed or spoiled, from the date of the erroneous payment, or	3718
from the date that cigarettes on which taxes have been paid have	3719
been sold in interstate or foreign commerce or have become	3720
unsalable.	3721

On the filing of the application, the commissioner shall	3722
determine the amount of refund to which the applicant is entitled,	3723
payable from receipts of the state tax, and, if applicable,	3724
payable from receipts of a county tax. If the amount is less than	3725
that claimed, the commissioner shall certify the amount to the	3726
director of budget and management and treasurer of state for	3727
payment from the tax refund fund created by section 5703.052 of	3728
the Revised Code. If the amount is less than that claimed, the	3729
commissioner shall proceed in accordance with section 5703.70 of	3730
the Revised Code.	3731

If a refund is granted for payment of an illegal or erroneous	3732
assessment issued by the department, the refund shall include	3733
interest on the amount of the refund from the date of the	3734
overpayment. The interest shall be computed at the rate per annum	3735
prescribed by section 5703.47 of the Revised Code.	3736

Sec. 5743.051. This section applies to any wholesale or	3737
retail cigarette dealer required by section 5743.05 of the Revised	3738
Code to remit payment for tax stamps and meter impressions by	3739
electronic funds transfer. The tax commissioner shall notify each	3740
dealer of the dealer's obligation to do so and shall maintain an	3741
updated list of those dealers. Failure by the tax commissioner to	3742
notify a dealer subject to this section to remit taxes by	3743
electronic funds transfer does not relieve the dealer of its	3744
obligation to remit taxes by electronic funds transfer.	3745

A dealer required to remit payments by electronic funds	3746
transfer shall remit such payments to the treasurer of state in	3747
the manner prescribed by rules adopted by the treasurer of state	3748
under section 113.061 of the Revised Code and within the time	3749
prescribed for such a dealer by section 5743.05 of the Revised	3750
Code.	3751

A dealer required to remit taxes by electronic funds transfer	3752
may apply to the tax commissioner in the manner prescribed by the	3753
tax commissioner to be excused from that requirement. The tax	3754
commissioner may excuse the dealer from remittance by electronic	3755
funds transfer for good cause shown for the period of time	3756
requested by the dealer or for a portion of that period.	3757

If a dealer required to remit taxes by electronic funds	3758
transfer remits those taxes by some other means, the treasurer of	3759
state shall notify the tax commissioner of the failure to remit by	3760
electronic funds transfer. If the tax commissioner determines that	3761
such failure was not due to reasonable cause or was due to willful	3762
neglect, the tax commissioner may collect an additional charge by	3763
assessment in the manner prescribed by section 5743.081 of the	3764
Revised Code. The additional charge shall equal five per cent of	3765
the amount of the taxes required to be paid by electronic funds	3766
transfer but shall not exceed five thousand dollars. Any	3767
additional charge assessed under this section is in addition to	3768
any other penalty or charge imposed under this chapter and shall	3769
be considered as revenue arising from taxes imposed under this	3770
chapter. The tax commissioner may abate all or a portion of such a	3771
charge and may adopt rules governing such remissions.	3772

No additional charge shall be assessed under this section	3773
against a dealer that has been notified of its obligation to remit	3774
taxes under this section and that remits its first two tax	3775
payments after such notification by some means other than	3776
electronic funds transfer. The additional charge may be assessed	3777
upon the remittance of any subsequent tax payment that the dealer	3778
remits by some means other than electronic funds transfer.	3779

Sec. 5743.112.  (A) No person shall prepare for shipment,	3780
ship, transport, deliver, prepare for distribution, or distribute	3781
cigarettes, or otherwise engage or participate in the wholesale or	3782
retail business of trafficking in cigarettes, with the intent to	3783
avoid payment of the tax imposed by this chapter, when the total	3784
number of cigarettes in the aggregate exceeds one thousand two	3785
hundred during any twelve-month period.	3786

(B) Any vending machine containing cigarettes which do not	3787
have affixed the stamps or impressions provided for by sections	3788
5743.03 and 5743.04 of the Revised Code shall be seized and	3789
forfeited to the state in accordance with Chapter 2981. of the	3790
Revised Code. Forfeiture shall not affect the rights of a holder	3791
of a valid lien.	3792

(C) A vehicle that is seized as contraband under Chapter	3793
2981. of the Revised Code because of its use in violation of this	3794
chapter is subject to the procedures set forth in that chapter.	3795

Sec. 5743.52.  (A) Each distributor of tobacco products	3796
subject to the tax levied by section 5743.51 of the Revised Code,	3797
on or before the lasttwenty-third day of each month, shall file	3798
with the treasurer of statetax commissioner a return for the	3799
preceding month showing any information the tax commissioner finds	3800
necessary for the proper administration of sections 5743.51 to	3801
5743.66 of the Revised Code, together with remittance of the tax	3802
due. The treasurer of state shall stamp or otherwise mark on the	3803
return the date it was received and shall also show thereon by	3804
stamp or otherwise the amount of payment received with the return.	3805
Thereafter, the treasurer of state shall immediately transmit all	3806
returns filed under this section to the tax commissioner. The	3807
return and payment of the tax required by this section shall be	3808
filed in such a manner that it is received by the treasurer of	3809
statecommissioner on or before the lasttwenty-third day of the	3810
month following the reporting period. If the return is filed and	3811
the amount of tax shown on the return to be due is paid on or	3812
before the date the return is required to be filed, the	3813
distributor is entitled to a discount equal to two and five-tenths	3814
per cent of the amount shown on the return to be due.	3815

(B) Any person who fails to timely file the return and make	3816
payment of taxes as required under this section, section 5743.62,	3817
or section 5743.63 of the Revised Code may be required to pay an	3818
additional charge not exceeding the greater of fifty dollars or	3819
ten per cent of the tax due. Any additional charge imposed under	3820
this section may be collected by assessment as provided in section	3821
5743.56 of the Revised Code.	3822

(C) If any tax due is not paid timely in accordance with	3823
sections 5743.52, 5743.62, or 5743.63 of the Revised Code, the	3824
person liable for the tax shall pay interest, calculated at the	3825
rate per annum as prescribed by section 5703.47 of the Revised	3826
Code, from the date the tax payment was due to the date of payment	3827
or to the date an assessment is issued under section 5743.56 of	3828
the Revised Code, whichever occurs first. The commissioner may	3829
collect such interest by assessment pursuant to section 5743.56 of	3830
the Revised Code.	3831

(D) The commissioner may authorize the filing of returns and	3832
the payment of the tax required by this section, section 5743.62,	3833
or section 5743.63 of the Revised Code for periods longer than a	3834
calendar month.	3835

(E) The commissioner may order any taxpayer to file with the	3836
commissioner security to the satisfaction of the commissioner	3837
conditioned upon filing the return and paying the taxes required	3838
under this section, section 5743.62, or section 5743.63 of the	3839
Revised Code if the commissioner believes that the collection of	3840
the tax may be in jeopardy.	3841

Sec. 5743.65.  No person required by division (B) of section	3842
5743.62 or division (B) of section 5743.63 of the Revised Code to	3843
file a return with the treasurer of statetax commissioner shall	3844
fail to make the return or fail to pay the applicable taxes levied	3845
under section 5743.62 or 5743.63 of the Revised Code or fail to	3846
pay any lawful assessment issued by the tax commissioner.	3847

Sec. 5747.08.  An annual return with respect to the tax	3848
imposed by section 5747.02 of the Revised Code and each tax	3849
imposed under Chapter 5748. of the Revised Code shall be made by	3850
every taxpayer for any taxable year for which the taxpayer is	3851
liable for the tax imposed by that section or under that chapter,	3852
unless the total credits allowed under divisions (E), (F), and (G)	3853
of section 5747.05 of the Revised Code for the year are equal to	3854
or exceed the tax imposed by section 5747.02 of the Revised Code,	3855
in which case no return shall be required unless the taxpayer is	3856
liable for a tax imposed pursuant to Chapter 5748. of the Revised	3857
Code.	3858

(A) If an individual is deceased, any return or notice	3859
required of that individual under this chapter shall be made and	3860
filed by that decedent's executor, administrator, or other person	3861
charged with the property of that decedent.	3862

(B) If an individual is unable to make a return or notice	3863
required by this chapter, the return or notice required of that	3864
individual shall be made and filed by the individual's duly	3865
authorized agent, guardian, conservator, fiduciary, or other	3866
person charged with the care of the person or property of that	3867
individual.	3868

(C) Returns or notices required of an estate or a trust shall	3869
be made and filed by the fiduciary of the estate or trust.	3870

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	3871
of this section, any pass-through entity may file a single return	3872
on behalf of one or more of the entity's investors other than an	3873
investor that is a person subject to the tax imposed under section	3874
5733.06 of the Revised Code. The single return shall set forth the	3875
name, address, and social security number or other identifying	3876
number of each of those pass-through entity investors and shall	3877
indicate the distributive share of each of those pass-through	3878
entity investor's income taxable in this state in accordance with	3879
sections 5747.20 to 5747.231 of the Revised Code. Such	3880
pass-through entity investors for whom the pass-through entity	3881
elects to file a single return are not entitled to the exemption	3882
or credit provided for by sections 5747.02 and 5747.022 of the	3883
Revised Code; shall calculate the tax before business credits at	3884
the highest rate of tax set forth in section 5747.02 of the	3885
Revised Code for the taxable year for which the return is filed;	3886
and are entitled to only their distributive share of the business	3887
credits as defined in division (D)(2) of this section. A single	3888
check drawn by the pass-through entity shall accompany the return	3889
in full payment of the tax due, as shown on the single return, for	3890
such investors, other than investors who are persons subject to	3891
the tax imposed under section 5733.06 of the Revised Code.	3892

(b)(i) A pass-through entity shall not include in such a	3893
single return any investor that is a trust to the extent that any	3894
direct or indirect current, future, or contingent beneficiary of	3895
the trust is a person subject to the tax imposed under section	3896
5733.06 of the Revised Code.	3897

(ii) A pass-through entity shall not include in such a single	3898
return any investor that is itself a pass-through entity to the	3899
extent that any direct or indirect investor in the second	3900
pass-through entity is a person subject to the tax imposed under	3901
section 5733.06 of the Revised Code.	3902

(c) Nothing in division (D) of this section precludes the tax	3903
commissioner from requiring such investors to file the return and	3904
make the payment of taxes and related interest, penalty, and	3905
interest penalty required by this section or section 5747.02,	3906
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	3907
of this section precludes such an investor from filing the annual	3908
return under this section, utilizing the refundable credit equal	3909
to the investor's proportionate share of the tax paid by the	3910
pass-through entity on behalf of the investor under division	3911
(J)(I) of this section, and making the payment of taxes imposed	3912
under section 5747.02 of the Revised Code. Nothing in division (D)	3913
of this section shall be construed to provide to such an investor	3914
or pass-through entity any additional deduction or credit, other	3915
than the credit provided by division (J)(I) of this section,	3916
solely on account of the entity's filing a return in accordance	3917
with this section. Such a pass-through entity also shall make the	3918
filing and payment of estimated taxes on behalf of the	3919
pass-through entity investors other than an investor that is a	3920
person subject to the tax imposed under section 5733.06 of the	3921
Revised Code.	3922

(2) For the purposes of this section, "business credits"	3923
means the credits listed in section 5747.98 of the Revised Code	3924
excluding the following credits:	3925

(a) The retirement credit under division (B) of section	3926
5747.055 of the Revised Code;	3927

(b) The senior citizen credit under division (C) of section	3928
5747.05 of the Revised Code;	3929

(c) The lump sum distribution credit under division (D) of	3930
section 5747.05 of the Revised Code;	3931

(d) The dependent care credit under section 5747.054 of the	3932
Revised Code;	3933

(e) The lump sum retirement income credit under division (C)	3934
of section 5747.055 of the Revised Code;	3935

(f) The lump sum retirement income credit under division (D)	3936
of section 5747.055 of the Revised Code;	3937

(g) The lump sum retirement income credit under division (E)	3938
of section 5747.055 of the Revised Code;	3939

(h) The credit for displaced workers who pay for job training	3940
under section 5747.27 of the Revised Code;	3941

(i) The twenty-dollar personal exemption credit under section	3942
5747.022 of the Revised Code;	3943

(j) The joint filing credit under division (G) of section	3944
5747.05 of the Revised Code;	3945

(k) The nonresident credit under division (A) of section	3946
5747.05 of the Revised Code;	3947

(l) The credit for a resident's out-of-state income under	3948
division (B) of section 5747.05 of the Revised Code;	3949

(m) The low-income credit under section 5747.056 of the	3950
Revised Code;	3951

(n) The earned income tax credit under section 5747.71 of the	3952
Revised Code.	3953

(3) The election provided for under division (D) of this	3954
section applies only to the taxable year for which the election is	3955
made by the pass-through entity. Unless the tax commissioner	3956
provides otherwise, this election, once made, is binding and	3957
irrevocable for the taxable year for which the election is made.	3958
Nothing in this division shall be construed to provide for any	3959
deduction or credit that would not be allowable if a nonresident	3960
pass-through entity investor were to file an annual return.	3961

(4) If a pass-through entity makes the election provided for	3962
under division (D) of this section, the pass-through entity shall	3963
be liable for any additional taxes, interest, interest penalty, or	3964
penalties imposed by this chapter if the tax commissioner finds	3965
that the single return does not reflect the correct tax due by the	3966
pass-through entity investors covered by that return. Nothing in	3967
this division shall be construed to limit or alter the liability,	3968
if any, imposed on pass-through entity investors for unpaid or	3969
underpaid taxes, interest, interest penalty, or penalties as a	3970
result of the pass-through entity's making the election provided	3971
for under division (D) of this section. For the purposes of	3972
division (D) of this section, "correct tax due" means the tax that	3973
would have been paid by the pass-through entity had the single	3974
return been filed in a manner reflecting the commissioner's	3975
findings. Nothing in division (D) of this section shall be	3976
construed to make or hold a pass-through entity liable for tax	3977
attributable to a pass-through entity investor's income from a	3978
source other than the pass-through entity electing to file the	3979
single return.	3980

(E) If a husband and wife file a joint federal income tax	3981
return for a taxable year, they shall file a joint return under	3982
this section for that taxable year, and their liabilities are	3983
joint and several, but, if the federal income tax liability of	3984
either spouse is determined on a separate federal income tax	3985
return, they shall file separate returns under this section.	3986

If either spouse is not required to file a federal income tax	3987
return and either or both are required to file a return pursuant	3988
to this chapter, they may elect to file separate or joint returns,	3989
and, pursuant to that election, their liabilities are separate or	3990
joint and several. If a husband and wife file separate returns	3991
pursuant to this chapter, each must claim the taxpayer's own	3992
exemption, but not both, as authorized under section 5747.02 of	3993
the Revised Code on the taxpayer's own return.	3994

(F) Each return or notice required to be filed under this	3995
section shall contain the signature of the taxpayer or the	3996
taxpayer's duly authorized agent and of the person who prepared	3997
the return for the taxpayer, and shall include the taxpayer's	3998
social security number. Each return shall be verified by a	3999
declaration under the penalties of perjury. The tax commissioner	4000
shall prescribe the form that the signature and declaration shall	4001
take.	4002

(G) Each return or notice required to be filed under this	4003
section shall be made and filed as required by section 5747.04 of	4004
the Revised Code, on or before the fifteenth day of April of each	4005
year, on forms that the tax commissioner shall prescribe, together	4006
with remittance made payable to the treasurer of state in the	4007
combined amount of the state and all school district income taxes	4008
shown to be due on the form.	4009

Upon good cause shown, the commissioner may extend the period	4010
for filing any notice or return required to be filed under this	4011
section and may adopt rules relating to extensions. If the	4012
extension results in an extension of time for the payment of any	4013
state or school district income tax liability with respect to	4014
which the return is filed, the taxpayer shall pay at the time the	4015
tax liability is paid an amount of interest computed at the rate	4016
per annum prescribed by section 5703.47 of the Revised Code on	4017
that liability from the time that payment is due without extension	4018
to the time of actual payment. Except as provided in section	4019
5747.132 of the Revised Code, in addition to all other interest	4020
charges and penalties, all taxes imposed under this chapter or	4021
Chapter 5748. of the Revised Code and remaining unpaid after they	4022
become due, except combined amounts due of one dollar or less,	4023
bear interest at the rate per annum prescribed by section 5703.47	4024
of the Revised Code until paid or until the day an assessment is	4025
issued under section 5747.13 of the Revised Code, whichever occurs	4026
first.	4027

If the commissioner considers it necessary in order to ensure	4028
the payment of the tax imposed by section 5747.02 of the Revised	4029
Code or any tax imposed under Chapter 5748. of the Revised Code,	4030
the commissioner may require returns and payments to be made	4031
otherwise than as provided in this section.	4032

To the extent that any provision in this division conflicts	4033
with any provision in section 5747.026 of the Revised Code, the	4034
provision in that section prevails.	4035

(H) If any report, claim, statement, or other document	4036
required to be filed, or any payment required to be made, within a	4037
prescribed period or on or before a prescribed date under this	4038
chapter is delivered after that period or that date by United	4039
States mail to the agency, officer, or office with which the	4040
report, claim, statement, or other document is required to be	4041
filed, or to which the payment is required to be made, the date of	4042
the postmark stamped on the cover in which the report, claim,	4043
statement, or other document, or payment is mailed shall be deemed	4044
to be the date of delivery or the date of payment.	4045

If a payment is required to be made by electronic funds	4046
transfer pursuant to section 5747.072 of the Revised Code, the	4047
payment is considered to be made when the payment is received by	4048
the treasurer of state or credited to an account designated by the	4049
treasurer of state for the receipt of tax payments.	4050

"The date of the postmark" means, in the event there is more	4051
than one date on the cover, the earliest date imprinted on the	4052
cover by the United States postal service.	4053

(I) The amounts withheld by an employer pursuant to section	4054
5747.06 of the Revised Code, a casino operator pursuant to section	4055
5747.063 of the Revised Code, or a lottery sales agent pursuant to	4056
section 5747.064 of the Revised Code shall be allowed to the	4057
recipient of the compensation casino winnings, or lottery prize	4058
award as credits against payment of the appropriate taxes imposed	4059
on the recipient by section 5747.02 and under Chapter 5748. of the	4060
Revised Code.	4061

(J)(I) If a pass-through entity elects to file a single	4062
return under division (D) of this section and if any investor is	4063
required to file the annual return and make the payment of taxes	4064
required by this chapter on account of the investor's other income	4065
that is not included in a single return filed by a pass-through	4066
entity or any other investor elects to file the annual return, the	4067
investor is entitled to a refundable credit equal to the	4068
investor's proportionate share of the tax paid by the pass-through	4069
entity on behalf of the investor. The investor shall claim the	4070
credit for the investor's taxable year in which or with which ends	4071
the taxable year of the pass-through entity. Nothing in this	4072
chapter shall be construed to allow any credit provided in this	4073
chapter to be claimed more than once. For the purpose of computing	4074
any interest, penalty, or interest penalty, the investor shall be	4075
deemed to have paid the refundable credit provided by this	4076
division on the day that the pass-through entity paid the	4077
estimated tax or the tax giving rise to the credit.	4078

(K)(J) The tax commissioner shall ensure that each return	4079
required to be filed under this section includes a box that the	4080
taxpayer may check to authorize a paid tax preparer who prepared	4081
the return to communicate with the department of taxation about	4082
matters pertaining to the return. The return or instructions	4083
accompanying the return shall indicate that by checking the box	4084
the taxpayer authorizes the department of taxation to contact the	4085
preparer concerning questions that arise during the processing of	4086
the return and authorizes the preparer only to provide the	4087
department with information that is missing from the return, to	4088
contact the department for information about the processing of the	4089
return or the status of the taxpayer's refund or payments, and to	4090
respond to notices about mathematical errors, offsets, or return	4091
preparation that the taxpayer has received from the department and	4092
has shown to the preparer.	4093

(L)(K) The tax commissioner shall permit individual taxpayers	4094
to instruct the department of taxation to cause any refund of	4095
overpaid taxes to be deposited directly into a checking account,	4096
savings account, or an individual retirement account or individual	4097
retirement annuity, or preexisting college savings plan or program	4098
account offered by the Ohio tuition trust authority under Chapter	4099
3334. of the Revised Code, as designated by the taxpayer, when the	4100
taxpayer files the annual return required by this section	4101
electronically.	4102

(M)(L) The tax commissioner may adopt rules to administer	4103
this section.	4104

Sec. 5747.98.  (A) To provide a uniform procedure for	4105
calculating the amount of tax due under section 5747.02 of the	4106
Revised Code, a taxpayer shall claim any credits to which the	4107
taxpayer is entitled in the following order:	4108

(1) The retirement income credit under division (B) of	4109
section 5747.055 of the Revised Code;	4110

(2) The senior citizen credit under division (C) of section	4111
5747.05 of the Revised Code;	4112

(3) The lump sum distribution credit under division (D) of	4113
section 5747.05 of the Revised Code;	4114

(4) The dependent care credit under section 5747.054 of the	4115
Revised Code;	4116

(5) The lump sum retirement income credit under division (C)	4117
of section 5747.055 of the Revised Code;	4118

(6) The lump sum retirement income credit under division (D)	4119
of section 5747.055 of the Revised Code;	4120

(7) The lump sum retirement income credit under division (E)	4121
of section 5747.055 of the Revised Code;	4122

(8) The low-income credit under section 5747.056 of the	4123
Revised Code;	4124

(9) The credit for displaced workers who pay for job training	4125
under section 5747.27 of the Revised Code;	4126

(10) The campaign contribution credit under section 5747.29	4127
of the Revised Code;	4128

(11) The twenty-dollar personal exemption credit under	4129
section 5747.022 of the Revised Code;	4130

(12) The joint filing credit under division (G) of section	4131
5747.05 of the Revised Code;	4132

(13) The nonresident credit under division (A) of section	4133
5747.05 of the Revised Code;	4134

(14) The credit for a resident's out-of-state income under	4135
division (B) of section 5747.05 of the Revised Code;	4136

(15) The earned income credit under section 5747.71 of the	4137
Revised Code;	4138

(16) The credit for employers that reimburse employee child	4139
care expenses under section 5747.36 of the Revised Code;	4140

(17) The credit for adoption of a minor child under section	4141
5747.37 of the Revised Code;	4142

(18) The credit for purchases of lights and reflectors under	4143
section 5747.38 of the Revised Code;	4144

(19) The nonrefundable job retention credit under division	4145
(B) of section 5747.058 of the Revised Code;	4146

(20) The credit for selling alternative fuel under section	4147
5747.77 of the Revised Code;	4148

(21) The second credit for purchases of new manufacturing	4149
machinery and equipment and the credit for using Ohio coal under	4150
section 5747.31 of the Revised Code;	4151

(22) The job training credit under section 5747.39 of the	4152
Revised Code;	4153

(23) The enterprise zone credit under section 5709.66 of the	4154
Revised Code;	4155

(24) The credit for the eligible costs associated with a	4156
voluntary action under section 5747.32 of the Revised Code;	4157

(25) The credit for employers that establish on-site child	4158
day-care centers under section 5747.35 of the Revised Code;	4159

(26) The ethanol plant investment credit under section	4160
5747.75 of the Revised Code;	4161

(27) The credit for purchases of qualifying grape production	4162
property under section 5747.28 of the Revised Code;	4163

(28) The small business investment credit under section	4164
5747.81 of the Revised Code;	4165

(29) The enterprise zone credits under section 5709.65 of the	4166
Revised Code;	4167

(30) The research and development credit under section	4168
5747.331 of the Revised Code;	4169

(31) The credit for rehabilitating a historic building under	4170
section 5747.76 of the Revised Code;	4171

(32) The refundable credit for rehabilitating a historic	4172
building under section 5747.76 of the Revised Code;	4173

(33) The refundable jobs creation credit or job retention	4174
credit under division (A) of section 5747.058 of the Revised Code;	4175

(34) The refundable credit for taxes paid by a qualifying	4176
entity granted under section 5747.059 of the Revised Code;	4177

(35) The refundable credits for taxes paid by a qualifying	4178
pass-through entity granted under division (J)(I) of section	4179
5747.08 of the Revised Code;	4180

(36) The refundable credit under section 5747.80 of the	4181
Revised Code for losses on loans made to the Ohio venture capital	4182
program under sections 150.01 to 150.10 of the Revised Code;	4183

(37) The refundable motion picture production credit under	4184
section 5747.66 of the Revised Code.;	4185

(38) The refundable credit for financial institution taxes	4186
paid by a pass-through entity granted under section 5747.65 of the	4187
Revised Code.	4188

(B) For any credit, except the refundable credits enumerated	4189
in this section and the credit granted under division (I)(H) of	4190
section 5747.08 of the Revised Code, the amount of the credit for	4191
a taxable year shall not exceed the tax due after allowing for any	4192
other credit that precedes it in the order required under this	4193
section. Any excess amount of a particular credit may be carried	4194
forward if authorized under the section creating that credit.	4195
Nothing in this chapter shall be construed to allow a taxpayer to	4196
claim, directly or indirectly, a credit more than once for a	4197
taxable year.	4198

Sec. 5751.01.  As used in this chapter:

4199

(A) "Person" means, but is not limited to, individuals,	4200
combinations of individuals of any form, receivers, assignees,	4201
trustees in bankruptcy, firms, companies, joint-stock companies,	4202
business trusts, estates, partnerships, limited liability	4203
partnerships, limited liability companies, associations, joint	4204
ventures, clubs, societies, for-profit corporations, S	4205
corporations, qualified subchapter S subsidiaries, qualified	4206
subchapter S trusts, trusts, entities that are disregarded for	4207
federal income tax purposes, and any other entities.	4208

(B) "Consolidated elected taxpayer" means a group of two or	4209
more persons treated as a single taxpayer for purposes of this	4210
chapter as the result of an election made under section 5751.011	4211
of the Revised Code.	4212

(C) "Combined taxpayer" means a group of two or more persons	4213
treated as a single taxpayer for purposes of this chapter under	4214
section 5751.012 of the Revised Code.	4215

(D) "Taxpayer" means any person, or any group of persons in	4216
the case of a consolidated elected taxpayer or combined taxpayer	4217
treated as one taxpayer, required to register or pay tax under	4218
this chapter. "Taxpayer" does not include excluded persons.	4219

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

4220

(1) Any person with not more than one hundred fifty thousand	4221
dollars of taxable gross receipts during the calendar year.	4222
Division (E)(1) of this section does not apply to a person that is	4223
a member of a consolidated elected taxpayer;	4224

(2) A public utility that paid the excise tax imposed by	4225
section 5727.24 or 5727.30 of the Revised Code based on one or	4226
more measurement periods that include the entire tax period under	4227
this chapter, except that a public utility that is a combined	4228
company is a taxpayer with regard to the following gross receipts:	4229

(a) Taxable gross receipts directly attributed to a public	4230
utility activity, but not directly attributed to an activity that	4231
is subject to the excise tax imposed by section 5727.24 or 5727.30	4232
of the Revised Code;	4233

(b) Taxable gross receipts that cannot be directly attributed	4234
to any activity, multiplied by a fraction whose numerator is the	4235
taxable gross receipts described in division (E)(2)(a) of this	4236
section and whose denominator is the total taxable gross receipts	4237
that can be directly attributed to any activity;	4238

(c) Except for any differences resulting from the use of an	4239
accrual basis method of accounting for purposes of determining	4240
gross receipts under this chapter and the use of the cash basis	4241
method of accounting for purposes of determining gross receipts	4242
under section 5727.24 of the Revised Code, the gross receipts	4243
directly attributed to the activity of a natural gas company shall	4244
be determined in a manner consistent with division (D) of section	4245
5727.03 of the Revised Code.	4246

As used in division (E)(2) of this section, "combined	4247
company" and "public utility" have the same meanings as in section	4248
5727.01 of the Revised Code.	4249

(3) A financial institution, as defined in section 5726.01 of	4250
the Revised Code, that paid the tax imposed by section 5726.02 of	4251
the Revised Code based on one or more taxable years that include	4252
the entire tax period under this chapter;	4253

(4) A person directly or indirectly owned by one or more	4254
financial institutions, as defined in section 5726.01 of the	4255
Revised Code, that paid the tax imposed by section 5726.02 of the	4256
Revised Code based on one or more taxable years that include the	4257
entire tax period under this chapter.	4258

For the purposes of division (E)(4) of this section, a person	4259
owns another person under the following circumstances:	4260

(a) In the case of corporations issuing capital stock, one	4261
corporation owns another corporation if it owns fifty per cent or	4262
more of the other corporation's capital stock with current voting	4263
rights;	4264

(b) In the case of a limited liability company, one person	4265
owns the company if that person's membership interest, as defined	4266
in section 1705.01 of the Revised Code, is fifty per cent or more	4267
of the combined membership interests of all persons owning such	4268
interests in the company;	4269

(c) In the case of a partnership, trust, or other	4270
unincorporated business organization other than a limited	4271
liability company, one person owns the organization if, under the	4272
articles of organization or other instrument governing the affairs	4273
of the organization, that person has a beneficial interest in the	4274
organization's profits, surpluses, losses, or distributions of	4275
fifty per cent or more of the combined beneficial interests of all	4276
persons having such an interest in the organization.	4277

(5) A domestic insurance company or foreign insurance	4278
company, as defined in section 5725.01 of the Revised Code, that	4279
paid the insurance company premiums tax imposed by section 5725.18	4280
or Chapter 5729. of the Revised Code, or an unauthorized insurance	4281
company whose gross premiums are subject to tax under section	4282
3905.36 of the Revised Code based on one or more measurement	4283
periods that include the entire tax period under this chapter;	4284

(6) A person that solely facilitates or services one or more	4285
securitizations of phase-in-recovery property pursuant to a final	4286
financing order as those terms are defined in section 4928.23 of	4287
the Revised Code. For purposes of this division, "securitization"	4288
means transferring one or more assets to one or more persons and	4289
then issuing securities backed by the right to receive payment	4290
from the asset or assets so transferred.	4291

(7) Except as otherwise provided in this division, a	4292
pre-income tax trust as defined in division (FF)(4) of section	4293
5747.01 of the Revised Code and any pass-through entity of which	4294
such pre-income tax trust owns or controls, directly, indirectly,	4295
or constructively through related interests, more than five per	4296
cent of the ownership or equity interests. If the pre-income tax	4297
trust has made a qualifying pre-income tax trust election under	4298
division (FF)(3) of section 5747.01 of the Revised Code, then the	4299
trust and the pass-through entities of which it owns or controls,	4300
directly, indirectly, or constructively through related interests,	4301
more than five per cent of the ownership or equity interests,	4302
shall not be excluded persons for purposes of the tax imposed	4303
under section 5751.02 of the Revised Code.	4304

(8) Nonprofit organizations or the state and its agencies,	4305
instrumentalities, or political subdivisions.	4306

(F) Except as otherwise provided in divisions (F)(2), (3),	4307
and (4) of this section, "gross receipts" means the total amount	4308
realized by a person, without deduction for the cost of goods sold	4309
or other expenses incurred, that contributes to the production of	4310
gross income of the person, including the fair market value of any	4311
property and any services received, and any debt transferred or	4312
forgiven as consideration.	4313

(1) The following are examples of gross receipts:

4314

(a) Amounts realized from the sale, exchange, or other	4315
disposition of the taxpayer's property to or with another;	4316

(b) Amounts realized from the taxpayer's performance of	4317
services for another;	4318

(c) Amounts realized from another's use or possession of the	4319
taxpayer's property or capital;	4320

(d) Any combination of the foregoing amounts.

4321

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

4322

(a) Interest income except interest on credit sales;

4323

(b) Dividends and distributions from corporations, and	4324
distributive or proportionate shares of receipts and income from a	4325
pass-through entity as defined under section 5733.04 of the	4326
Revised Code;	4327

(c) Receipts from the sale, exchange, or other disposition of	4328
an asset described in section 1221 or 1231 of the Internal Revenue	4329
Code, without regard to the length of time the person held the	4330
asset. Notwithstanding section 1221 of the Internal Revenue Code,	4331
receipts from hedging transactions also are excluded to the extent	4332
the transactions are entered into primarily to protect a financial	4333
position, such as managing the risk of exposure to (i) foreign	4334
currency fluctuations that affect assets, liabilities, profits,	4335
losses, equity, or investments in foreign operations; (ii)	4336
interest rate fluctuations; or (iii) commodity price fluctuations.	4337
As used in division (F)(2)(c) of this section, "hedging	4338
transaction" has the same meaning as used in section 1221 of the	4339
Internal Revenue Code and also includes transactions accorded	4340
hedge accounting treatment under statement of financial accounting	4341
standards number 133 of the financial accounting standards board.	4342
For the purposes of division (F)(2)(c) of this section, the actual	4343
transfer of title of real or tangible personal property to another	4344
entity is not a hedging transaction.	4345

(d) Proceeds received attributable to the repayment,	4346
maturity, or redemption of the principal of a loan, bond, mutual	4347
fund, certificate of deposit, or marketable instrument;	4348

(e) The principal amount received under a repurchase	4349
agreement or on account of any transaction properly characterized	4350
as a loan to the person;	4351

(f) Contributions received by a trust, plan, or other	4352
arrangement, any of which is described in section 501(a) of the	4353
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	4354
1, Subchapter (D) of the Internal Revenue Code applies;	4355

(g) Compensation, whether current or deferred, and whether in	4356
cash or in kind, received or to be received by an employee, former	4357
employee, or the employee's legal successor for services rendered	4358
to or for an employer, including reimbursements received by or for	4359
an individual for medical or education expenses, health insurance	4360
premiums, or employee expenses, or on account of a dependent care	4361
spending account, legal services plan, any cafeteria plan	4362
described in section 125 of the Internal Revenue Code, or any	4363
similar employee reimbursement;	4364

(h) Proceeds received from the issuance of the taxpayer's own	4365
stock, options, warrants, puts, or calls, or from the sale of the	4366
taxpayer's treasury stock;	4367

(i) Proceeds received on the account of payments from	4368
insurance policies, except those proceeds received for the loss of	4369
business revenue;	4370

(j) Gifts or charitable contributions received; membership	4371
dues received by trade, professional, homeowners', or condominium	4372
associations; and payments received for educational courses,	4373
meetings, meals, or similar payments to a trade, professional, or	4374
other similar association; and fundraising receipts received by	4375
any person when any excess receipts are donated or used	4376
exclusively for charitable purposes;	4377

(k) Damages received as the result of litigation in excess of	4378
amounts that, if received without litigation, would be gross	4379
receipts;	4380

(l) Property, money, and other amounts received or acquired	4381
by an agent on behalf of another in excess of the agent's	4382
commission, fee, or other remuneration;	4383

(m) Tax refunds, other tax benefit recoveries, and	4384
reimbursements for the tax imposed under this chapter made by	4385
entities that are part of the same combined taxpayer or	4386
consolidated elected taxpayer group, and reimbursements made by	4387
entities that are not members of a combined taxpayer or	4388
consolidated elected taxpayer group that are required to be made	4389
for economic parity among multiple owners of an entity whose tax	4390
obligation under this chapter is required to be reported and paid	4391
entirely by one owner, pursuant to the requirements of sections	4392
5751.011 and 5751.012 of the Revised Code;	4393

(n) Pension reversions;

4394

(o) Contributions to capital;

4395

(p) Sales or use taxes collected as a vendor or an	4396
out-of-state seller on behalf of the taxing jurisdiction from a	4397
consumer or other taxes the taxpayer is required by law to collect	4398
directly from a purchaser and remit to a local, state, or federal	4399
tax authority;	4400

(q) In the case of receipts from the sale of cigarettes or	4401
tobacco products by a wholesale dealer, retail dealer,	4402
distributor, manufacturer, or seller, all as defined in section	4403
5743.01 of the Revised Code, an amount equal to the federal and	4404
state excise taxes paid by any person on or for such cigarettes or	4405
tobacco products under subtitle E of the Internal Revenue Code or	4406
Chapter 5743. of the Revised Code;	4407

(r) ReceiptsIn the case of receipts from the sale, transfer,	4408
exchange, or other disposition of motor fuel as "motor fuel" is	4409
defined in section 5736.01 of the Revised Code, an amount equal to	4410
the value of the motor fuel, including federal and state motor	4411
fuel excise taxes and receipts from billing or invoicing the tax	4412
imposed under section 5736.02 of the Revised Code to another	4413
person;	4414

(s) In the case of receipts from the sale of beer or	4415
intoxicating liquor, as defined in section 4301.01 of the Revised	4416
Code, by a person holding a permit issued under Chapter 4301. or	4417
4303. of the Revised Code, an amount equal to federal and state	4418
excise taxes paid by any person on or for such beer or	4419
intoxicating liquor under subtitle E of the Internal Revenue Code	4420
or Chapter 4301. or 4305. of the Revised Code;	4421

(t) Receipts realized by a new motor vehicle dealer or used	4422
motor vehicle dealer, as defined in section 4517.01 of the Revised	4423
Code, from the sale or other transfer of a motor vehicle, as	4424
defined in that section, to another motor vehicle dealer for the	4425
purpose of resale by the transferee motor vehicle dealer, but only	4426
if the sale or other transfer was based upon the transferee's need	4427
to meet a specific customer's preference for a motor vehicle;	4428

(u) Receipts from a financial institution described in	4429
division (E)(3) of this section for services provided to the	4430
financial institution in connection with the issuance, processing,	4431
servicing, and management of loans or credit accounts, if such	4432
financial institution and the recipient of such receipts have at	4433
least fifty per cent of their ownership interests owned or	4434
controlled, directly or constructively through related interests,	4435
by common owners;	4436

(v) Receipts realized from administering anti-neoplastic	4437
drugs and other cancer chemotherapy, biologicals, therapeutic	4438
agents, and supportive drugs in a physician's office to patients	4439
with cancer;	4440

(w) Funds received or used by a mortgage broker that is not a	4441
dealer in intangibles, other than fees or other consideration,	4442
pursuant to a table-funding mortgage loan or warehouse-lending	4443
mortgage loan. Terms used in division (F)(2)(w) of this section	4444
have the same meanings as in section 1322.01 of the Revised Code,	4445
except "mortgage broker" means a person assisting a buyer in	4446
obtaining a mortgage loan for a fee or other consideration paid by	4447
the buyer or a lender, or a person engaged in table-funding or	4448
warehouse-lending mortgage loans that are first lien mortgage	4449
loans.	4450

(x) Property, money, and other amounts received by a	4451
professional employer organization, as defined in section 4125.01	4452
of the Revised Code, from a client employer, as defined in that	4453
section, in excess of the administrative fee charged by the	4454
professional employer organization to the client employer;	4455

(y) In the case of amounts retained as commissions by a	4456
permit holder under Chapter 3769. of the Revised Code, an amount	4457
equal to the amounts specified under that chapter that must be	4458
paid to or collected by the tax commissioner as a tax and the	4459
amounts specified under that chapter to be used as purse money;	4460

(z) Qualifying distribution center receipts.

4461

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

4462

(I) "Qualifying distribution center receipts" means receipts	4463
of a supplier from qualified property that is delivered to a	4464
qualified distribution center, multiplied by a quantity that	4465
equals one minus the Ohio delivery percentage. If the qualified	4466
distribution center is a refining facility, "supplier" includes	4467
all dealers, brokers, processors, sellers, vendors, cosigners, and	4468
distributors of qualified property.	4469

(II) "Qualified property" means tangible personal property	4470
delivered to a qualified distribution center that is shipped to	4471
that qualified distribution center solely for further shipping by	4472
the qualified distribution center to another location in this	4473
state or elsewhere or, in the case of gold, silver, platinum, or	4474
palladium delivered to a refining facility solely for refining to	4475
a grade and fineness acceptable for delivery to a registered	4476
commodities exchange. "Further shipping" includes storing and	4477
repackaging property into smaller or larger bundles, so long as	4478
the property is not subject to further manufacturing or	4479
processing. "Refining" is limited to extracting impurities from	4480
gold, silver, platinum, or palladium through smelting or some	4481
other process at a refining facility.	4482

(III) "Qualified distribution center" means a warehouse, a	4483
facility similar to a warehouse, or a refining facility in this	4484
state that, for the qualifying year, is operated by a person that	4485
is not part of a combined taxpayer group and that has a qualifying	4486
certificate. All warehouses or facilities similar to warehouses	4487
that are operated by persons in the same taxpayer group and that	4488
are located within one mile of each other shall be treated as one	4489
qualified distribution center. All refining facilities that are	4490
operated by persons in the same taxpayer group and that are	4491
located in the same or adjacent counties may be treated as one	4492
qualified distribution center.	4493

(IV) "Qualifying year" means the calendar year to which the	4494
qualifying certificate applies.	4495

(V) "Qualifying period" means the period of the first day of	4496
July of the second year preceding the qualifying year through the	4497
thirtieth day of June of the year preceding the qualifying year.	4498

(VI) "Qualifying certificate" means the certificate issued by	4499
the tax commissioner after the operator of a distribution center	4500
files an annual application with the commissioner. The application	4501
and annual fee shall be filed and paid for each qualified	4502
distribution center on or before the first day of September before	4503
the qualifying year or within forty-five days after the	4504
distribution center opens, whichever is later.	4505

The applicant must substantiate to the commissioner's	4506
satisfaction that, for the qualifying period, all persons	4507
operating the distribution center have more than fifty per cent of	4508
the cost of the qualified property shipped to a location such that	4509
it would be sitused outside this state under the provisions of	4510
division (E) of section 5751.033 of the Revised Code. The	4511
applicant must also substantiate that the distribution center	4512
cumulatively had costs from its suppliers equal to or exceeding	4513
five hundred million dollars during the qualifying period. (For	4514
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	4515
excludes any person that is part of the consolidated elected	4516
taxpayer group, if applicable, of the operator of the qualified	4517
distribution center.) The commissioner may require the applicant	4518
to have an independent certified public accountant certify that	4519
the calculation of the minimum thresholds required for a qualified	4520
distribution center by the operator of a distribution center has	4521
been made in accordance with generally accepted accounting	4522
principles. The commissioner shall issue or deny the issuance of a	4523
certificate within sixty days after the receipt of the	4524
application. A denial is subject to appeal under section 5717.02	4525
of the Revised Code. If the operator files a timely appeal under	4526
section 5717.02 of the Revised Code, the operator shall be granted	4527
a qualifying certificate effective for the remainder of the	4528
qualifying year or until the appeal is finalized, whichever is	4529
earlier. If the operator does not prevail in the appeal, the	4530
operator shall pay the ineligible operator's supplier tax	4531
liability.	4532

(VII) "Ohio delivery percentage" means the proportion of the	4533
total property delivered to a destination inside Ohio from the	4534
qualified distribution center during the qualifying period	4535
compared with total deliveries from such distribution center	4536
everywhere during the qualifying period.	4537

(VIII) "Refining facility" means one or more buildings	4538
located in a county in the Appalachian region of this state as	4539
defined by section 107.21 of the Revised Code and utilized for	4540
refining or smelting gold, silver, platinum, or palladium to a	4541
grade and fineness acceptable for delivery to a registered	4542
commodities exchange.	4543

(IX) "Registered commodities exchange" means a board of	4544
trade, such as New York mercantile exchange, inc. or commodity	4545
exchange, inc., designated as a contract market by the commodity	4546
futures trading commission under the "Commodity Exchange Act," 7	4547
U.S.C. 1 et seq., as amended.	4548

(X) "Ineligible operator's supplier tax liability" means an	4549
amount equal to the tax liability of all suppliers of a	4550
distribution center had the distribution center not been issued a	4551
qualifying certificate for the qualifying year. Ineligible	4552
operator's supplier tax liability shall not include interest or	4553
penalties. The tax commissioner shall determine an ineligible	4554
operator's supplier tax liability based on information that the	4555
commissioner may request from the operator of the distribution	4556
center. An operator shall provide a list of all suppliers of the	4557
distribution center and the corresponding costs of qualified	4558
property for the qualifying year at issue within sixty days of a	4559
request by the commissioner under this division.	4560

(ii)(I) If the distribution center is new and was not open	4561
for the entire qualifying period, the operator of the distribution	4562
center may request that the commissioner grant a qualifying	4563
certificate. If the certificate is granted and it is later	4564
determined that more than fifty per cent of the qualified property	4565
during that year was not shipped to a location such that it would	4566
be sitused outside of this state under the provisions of division	4567
(E) of section 5751.033 of the Revised Code or if it is later	4568
determined that the person that operates the distribution center	4569
had average monthly costs from its suppliers of less than forty	4570
million dollars during that year, then the operator of the	4571
distribution center shall pay the ineligible operator's supplier	4572
tax liability. (For purposes of division (F)(2)(z)(ii) of this	4573
section, "supplier" excludes any person that is part of the	4574
consolidated elected taxpayer group, if applicable, of the	4575
operator of the qualified distribution center.)	4576

(II) The commissioner may grant a qualifying certificate to a	4577
distribution center that does not qualify as a qualified	4578
distribution center for an entire qualifying period if the	4579
operator of the distribution center demonstrates that the business	4580
operations of the distribution center have changed or will change	4581
such that the distribution center will qualify as a qualified	4582
distribution center within thirty-six months after the date the	4583
operator first applies for a certificate. If, at the end of that	4584
thirty-six-month period, the business operations of the	4585
distribution center have not changed such that the distribution	4586
center qualifies as a qualified distribution center, the operator	4587
of the distribution center shall pay the ineligible operator's	4588
supplier tax liability for each year that the distribution center	4589
received a certificate but did not qualify as a qualified	4590
distribution center. For each year the distribution center	4591
receives a certificate under division (F)(2)(z)(ii)(II) of this	4592
section, the distribution center shall pay all applicable fees	4593
required under division (F)(2)(z) of this section and shall submit	4594
an updated business plan showing the progress the distribution	4595
center made toward qualifying as a qualified distribution center	4596
during the preceding year.	4597

(III) An operator may appeal a determination under division	4598
(F)(2)(z)(ii)(I) or (II) of this section that the ineligible	4599
operator is liable for the operator's supplier tax liability as a	4600
result of not qualifying as a qualified distribution center, as	4601
provided in section 5717.02 of the Revised Code.	4602

(iii) When filing an application for a qualifying certificate	4603
under division (F)(2)(z)(i)(VI) of this section, the operator of a	4604
qualified distribution center also shall provide documentation, as	4605
the commissioner requires, for the commissioner to ascertain the	4606
Ohio delivery percentage. The commissioner, upon issuing the	4607
qualifying certificate, also shall certify the Ohio delivery	4608
percentage. The operator of the qualified distribution center may	4609
appeal the commissioner's certification of the Ohio delivery	4610
percentage in the same manner as an appeal is taken from the	4611
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	4612
of this section.	4613

(iv)(I) In the case where the distribution center is new and	4614
not open for the entire qualifying period, the operator shall make	4615
a good faith estimate of an Ohio delivery percentage for use by	4616
suppliers in their reports of taxable gross receipts for the	4617
remainder of the qualifying period. The operator of the facility	4618
shall disclose to the suppliers that such Ohio delivery percentage	4619
is an estimate and is subject to recalculation. By the due date of	4620
the next application for a qualifying certificate, the operator	4621
shall determine the actual Ohio delivery percentage for the	4622
estimated qualifying period and proceed as provided in division	4623
(F)(2)(z)(iii) of this section with respect to the calculation and	4624
recalculation of the Ohio delivery percentage. The supplier is	4625
required to file, within sixty days after receiving notice from	4626
the operator of the qualified distribution center, amended reports	4627
for the impacted calendar quarter or quarters or calendar year,	4628
whichever the case may be. Any additional tax liability or tax	4629
overpayment shall be subject to interest but shall not be subject	4630
to the imposition of any penalty so long as the amended returns	4631
are timely filed.	4632

(II) The operator of a distribution center that receives a	4633
qualifying certificate under division (F)(2)(z)(ii)(II) of this	4634
section shall make a good faith estimate of the Ohio delivery	4635
percentage that the operator estimates will apply to the	4636
distribution center at the end of the thirty-six-month period	4637
after the operator first applied for a qualifying certificate	4638
under that division. The result of the estimate shall be	4639
multiplied by a factor of one and seventy-five one-hundredths. The	4640
product of that calculation shall be the Ohio delivery percentage	4641
used by suppliers in their reports of taxable gross receipts for	4642
each qualifying year that the distribution center receives a	4643
qualifying certificate under division (F)(2)(z)(ii)(II) of this	4644
section, except that, if the product is less than five per cent,	4645
the Ohio delivery percentage used shall be five per cent and that,	4646
if the product exceeds forty-nine per cent, the Ohio delivery	4647
percentage used shall be forty-nine per cent.	4648

(v) Qualifying certificates and Ohio delivery percentages	4649
issued by the commissioner shall be open to public inspection and	4650
shall be timely published by the commissioner. A supplier relying	4651
in good faith on a certificate issued under this division shall	4652
not be subject to tax on the qualifying distribution center	4653
receipts under division (F)(2)(z) of this section. An operator	4654
receiving a qualifying certificate is liable for the ineligible	4655
operator's supplier tax liability for each year the operator	4656
received a certificate but did not qualify as a qualified	4657
distribution center.	4658

(vi) The annual fee for a qualifying certificate shall be one	4659
hundred thousand dollars for each qualified distribution center.	4660
If a qualifying certificate is not issued, the annual fee is	4661
subject to refund after the exhaustion of all appeals provided for	4662
in division (F)(2)(z)(i)(VI) of this section. The first one	4663
hundred thousand dollars of the annual application fees collected	4664
each calendar year shall be credited to the revenue enhancement	4665
fund. The remainder of the annual application fees collected shall	4666
be distributed in the same manner required under section 5751.20	4667
of the Revised Code.	4668

(vii) The tax commissioner may require that adequate security	4669
be posted by the operator of the distribution center on appeal	4670
when the commissioner disagrees that the applicant has met the	4671
minimum thresholds for a qualified distribution center as set	4672
forth in division (F)(2)(z) of this section.	4673

(aa) Receipts of an employer from payroll deductions relating	4674
to the reimbursement of the employer for advancing moneys to an	4675
unrelated third party on an employee's behalf;	4676

(bb) Cash discounts allowed and taken;

4677

(cc) Returns and allowances;

4678

(dd) Bad debts from receipts on the basis of which the tax	4679
imposed by this chapter was paid in a prior quarterly tax payment	4680
period. For the purpose of this division, "bad debts" means any	4681
debts that have become worthless or uncollectible between the	4682
preceding and current quarterly tax payment periods, have been	4683
uncollected for at least six months, and that may be claimed as a	4684
deduction under section 166 of the Internal Revenue Code and the	4685
regulations adopted under that section, or that could be claimed	4686
as such if the taxpayer kept its accounts on the accrual basis.	4687
"Bad debts" does not include repossessed property, uncollectible	4688
amounts on property that remains in the possession of the taxpayer	4689
until the full purchase price is paid, or expenses in attempting	4690
to collect any account receivable or for any portion of the debt	4691
recovered;	4692

(ee) Any amount realized from the sale of an account	4693
receivable to the extent the receipts from the underlying	4694
transaction giving rise to the account receivable were included in	4695
the gross receipts of the taxpayer;	4696

(ff) Any receipts directly attributed to a transfer agreement	4697
or to the enterprise transferred under that agreement under	4698
section 4313.02 of the Revised Code.	4699

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

4700

(I) "Qualified uranium receipts" means receipts from the	4701
sale, exchange, lease, loan, production, processing, or other	4702
disposition of uranium within a uranium enrichment zone certified	4703
by the tax commissioner under division (F)(2)(gg)(ii) of this	4704
section. "Qualified uranium receipts" does not include any	4705
receipts with a situs in this state outside a uranium enrichment	4706
zone certified by the tax commissioner under division	4707
(F)(2)(gg)(ii) of this section.	4708

(II) "Uranium enrichment zone" means all real property that	4709
is part of a uranium enrichment facility licensed by the United	4710
States nuclear regulatory commission and that was or is owned or	4711
controlled by the United States department of energy or its	4712
successor.	4713

(ii) Any person that owns, leases, or operates real or	4714
tangible personal property constituting or located within a	4715
uranium enrichment zone may apply to the tax commissioner to have	4716
the uranium enrichment zone certified for the purpose of excluding	4717
qualified uranium receipts under division (F)(2)(gg) of this	4718
section. The application shall include such information that the	4719
tax commissioner prescribes. Within sixty days after receiving the	4720
application, the tax commissioner shall certify the zone for that	4721
purpose if the commissioner determines that the property qualifies	4722
as a uranium enrichment zone as defined in division (F)(2)(gg) of	4723
this section, or, if the tax commissioner determines that the	4724
property does not qualify, the commissioner shall deny the	4725
application or request additional information from the applicant.	4726
If the tax commissioner denies an application, the commissioner	4727
shall state the reasons for the denial. The applicant may appeal	4728
the denial of an application to the board of tax appeals pursuant	4729
to section 5717.02 of the Revised Code. If the applicant files a	4730
timely appeal, the tax commissioner shall conditionally certify	4731
the applicant's property. The conditional certification shall	4732
expire when all of the applicant's appeals are exhausted. Until	4733
final resolution of the appeal, the applicant shall retain the	4734
applicant's records in accordance with section 5751.12 of the	4735
Revised Code, notwithstanding any time limit on the preservation	4736
of records under that section.	4737

(hh) In the case of amounts collected by a licensed casino	4738
operator from casino gaming, amounts in excess of the casino	4739
operator's gross casino revenue. In this division, "casino	4740
operator" and "casino gaming" have the meanings defined in section	4741
3772.01 of the Revised Code, and "gross casino revenue" has the	4742
meaning defined in section 5753.01 of the Revised Code.	4743

(ii) Receipts realized from the sale of agricultural	4744
commodities by an agricultural commodity handler, both as defined	4745
in section 926.01 of the Revised Code, that is licensed by the	4746
director of agriculture to handle agricultural commodities in this	4747
state.	4748

(jj) Any receipts for which the tax imposed by this chapter	4749
is prohibited by the constitution or laws of the United States or	4750
the constitution of this state.	4751

(3) In the case of a taxpayer when acting as a real estate	4752
broker, "gross receipts" includes only the portion of any fee for	4753
the service of a real estate broker, or service of a real estate	4754
salesperson associated with that broker, that is retained by the	4755
broker and not paid to an associated real estate salesperson or	4756
another real estate broker. For the purposes of this division,	4757
"real estate broker" and "real estate salesperson" have the same	4758
meanings as in section 4735.01 of the Revised Code.	4759

(4) A taxpayer's method of accounting for gross receipts for	4760
a tax period shall be the same as the taxpayer's method of	4761
accounting for federal income tax purposes for the taxpayer's	4762
federal taxable year that includes the tax period. If a taxpayer's	4763
method of accounting for federal income tax purposes changes, its	4764
method of accounting for gross receipts under this chapter shall	4765
be changed accordingly.	4766

(G) "Taxable gross receipts" means gross receipts sitused to	4767
this state under section 5751.033 of the Revised Code.	4768

(H) A person has "substantial nexus with this state" if any	4769
of the following applies. The person:	4770

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

4771

(2) Holds a certificate of compliance with the laws of this	4772
state authorizing the person to do business in this state;	4773

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

4774

(4) Otherwise has nexus with this state to an extent that the	4775
person can be required to remit the tax imposed under this chapter	4776
under the Constitution of the United States.	4777

(I) A person has "bright-line presence" in this state for a	4778
reporting period and for the remaining portion of the calendar	4779
year if any of the following applies. The person:	4780

(1) Has at any time during the calendar year property in this	4781
state with an aggregate value of at least fifty thousand dollars.	4782
For the purpose of division (I)(1) of this section, owned property	4783
is valued at original cost and rented property is valued at eight	4784
times the net annual rental charge.	4785

(2) Has during the calendar year payroll in this state of at	4786
least fifty thousand dollars. Payroll in this state includes all	4787
of the following:	4788

(a) Any amount subject to withholding by the person under	4789
section 5747.06 of the Revised Code;	4790

(b) Any other amount the person pays as compensation to an	4791
individual under the supervision or control of the person for work	4792
done in this state; and	4793

(c) Any amount the person pays for services performed in this	4794
state on its behalf by another.	4795

(3) Has during the calendar year taxable gross receipts of at	4796
least five hundred thousand dollars.	4797

(4) Has at any time during the calendar year within this	4798
state at least twenty-five per cent of the person's total	4799
property, total payroll, or total gross receipts.	4800

(5) Is domiciled in this state as an individual or for	4801
corporate, commercial, or other business purposes.	4802

(J) "Tangible personal property" has the same meaning as in	4803
section 5739.01 of the Revised Code.	4804

(K) "Internal Revenue Code" means the Internal Revenue Code	4805
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	4806
this chapter that is not otherwise defined has the same meaning as	4807
when used in a comparable context in the laws of the United States	4808
relating to federal income taxes unless a different meaning is	4809
clearly required. Any reference in this chapter to the Internal	4810
Revenue Code includes other laws of the United States relating to	4811
federal income taxes.	4812

(L) "Calendar quarter" means a three-month period ending on	4813
the thirty-first day of March, the thirtieth day of June, the	4814
thirtieth day of September, or the thirty-first day of December.	4815

(M) "Tax period" means the calendar quarter or calendar year	4816
on the basis of which a taxpayer is required to pay the tax	4817
imposed under this chapter.	4818

(N) "Calendar year taxpayer" means a taxpayer for which the	4819
tax period is a calendar year.	4820

(O) "Calendar quarter taxpayer" means a taxpayer for which	4821
the tax period is a calendar quarter.	4822

(P) "Agent" means a person authorized by another person to	4823
act on its behalf to undertake a transaction for the other,	4824
including any of the following:	4825

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

4826

(2) A person retaining only a commission from a transaction	4827
with the other proceeds from the transaction being remitted to	4828
another person;	4829

(3) A person issuing licenses and permits under section	4830
1533.13 of the Revised Code;	4831

(4) A lottery sales agent holding a valid license issued	4832
under section 3770.05 of the Revised Code;	4833

(5) A person acting as an agent of the division of liquor	4834
control under section 4301.17 of the Revised Code.	4835

(Q) "Received" includes amounts accrued under the accrual	4836
method of accounting.	4837

(R) "Reporting person" means a person in a consolidated	4838
elected taxpayer or combined taxpayer group that is designated by	4839
that group to legally bind the group for all filings and tax	4840
liabilities and to receive all legal notices with respect to	4841
matters under this chapter, or, for the purposes of section	4842
5751.04 of the Revised Code, a separate taxpayer that is not a	4843
member of such a group.	4844

Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of	4845
the Revised Code:	4846

(1) "School district," "joint vocational school district,"	4847
"local taxing unit," "recognized valuation," "fixed-rate levy,"	4848
and "fixed-sum levy" have the same meanings as used in section	4849
5727.84 of the Revised Code.	4850

(2) "State education aid" for a school district means the	4851
following:	4852

(a) For fiscal years prior to fiscal year 2010, the sum of	4853
state aid amounts computed for the district under the following	4854
provisions, as they existed for the applicable fiscal year:	4855
division (A) of section 3317.022 of the Revised Code, including	4856
the amounts calculated under former section 3317.029 and section	4857
3317.0217 of the Revised Code; divisions (C)(1), (C)(4), (D), (E),	4858
and (F) of section 3317.022; divisions (B), (C), and (D) of	4859
section 3317.023; divisions (L) and (N) of section 3317.024;	4860
section 3317.0216; and any unit payments for gifted student	4861
services paid under section 3317.05 and former sections 3317.052	4862
and 3317.053 of the Revised Code; except that, for fiscal years	4863
2008 and 2009, the amount computed for the district under Section	4864
269.20.80 of H.B. 119 of the 127th general assembly and as that	4865
section subsequently may be amended shall be substituted for the	4866
amount computed under division (D) of section 3317.022 of the	4867
Revised Code, and the amount computed under Section 269.30.80 of	4868
H.B. 119 of the 127th general assembly and as that section	4869
subsequently may be amended shall be included.	4870

(b) For fiscal years 2010 and 2011, the sum of the amounts	4871
computed under former sections 3306.052, 3306.12, 3306.13,	4872
3306.19, 3306.191, and 3306.192 of the Revised Code;	4873

(c) For fiscal years 2012 and 2013, the sum of the amounts	4874
paid under Sections 267.30.50, 267.30.53, and 267.30.56 of H.B.	4875
153 of the 129th general assembly;	4876

(d) For fiscal year 2014 and each fiscal year thereafter, the	4877
sum of state amounts computed for the district under section	4878
3317.022 of the Revised Code; except that, for fiscal years 2014	4879
and 2015, the amount computed for the district under the section	4880
of this act entitled "TRANSITIONAL AID FOR CITY, LOCAL, AND	4881
EXEMPTED VILLAGE SCHOOL DISTRICTS" shall be included.	4882

(3) "State education aid" for a joint vocational school	4883
district means the following:	4884

(a) For fiscal years prior to fiscal year 2010, the sum of	4885
the state aid computed for the district under division (N) of	4886
section 3317.024 and former section 3317.16 of the Revised Code,	4887
except that, for fiscal years 2008 and 2009, the amount computed	4888
under Section 269.30.80 of H.B. 119 of the 127th general assembly	4889
and as that section subsequently may be amended shall be included.	4890

(b) For fiscal years 2010 and 2011, the amount paid in	4891
accordance with Section 265.30.50 of H.B. 1 of the 128th general	4892
assembly.	4893

(c) For fiscal years 2012 and 2013, the amount paid in	4894
accordance with Section 267.30.60 of H.B. 153 of the 129th general	4895
assembly.	4896

(d) For fiscal year 2014 and each fiscal year thereafter, the	4897
amount computed for the district under section 3317.16 of the	4898
Revised Code; except that, for fiscal years 2014 and 2015, the	4899
amount computed for the district under the section of this act	4900
entitled "TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL DISTRICTS"	4901
shall be included.	4902

(4) "State education aid offset" means the amount determined	4903
for each school district or joint vocational school district under	4904
division (A)(1) of section 5751.21 of the Revised Code.	4905

(5) "Machinery and equipment property tax value loss" means	4906
the amount determined under division (C)(1) of this section.	4907

(6) "Inventory property tax value loss" means the amount	4908
determined under division (C)(2) of this section.	4909

(7) "Furniture and fixtures property tax value loss" means	4910
the amount determined under division (C)(3) of this section.	4911

(8) "Machinery and equipment fixed-rate levy loss" means the	4912
amount determined under division (D)(1) of this section.	4913

(9) "Inventory fixed-rate levy loss" means the amount	4914
determined under division (D)(2) of this section.	4915

(10) "Furniture and fixtures fixed-rate levy loss" means the	4916
amount determined under division (D)(3) of this section.	4917

(11) "Total fixed-rate levy loss" means the sum of the	4918
machinery and equipment fixed-rate levy loss, the inventory	4919
fixed-rate levy loss, the furniture and fixtures fixed-rate levy	4920
loss, and the telephone company fixed-rate levy loss.	4921

(12) "Fixed-sum levy loss" means the amount determined under	4922
division (E) of this section.	4923

(13) "Machinery and equipment" means personal property	4924
subject to the assessment rate specified in division (F) of	4925
section 5711.22 of the Revised Code.	4926

(14) "Inventory" means personal property subject to the	4927
assessment rate specified in division (E) of section 5711.22 of	4928
the Revised Code.	4929

(15) "Furniture and fixtures" means personal property subject	4930
to the assessment rate specified in division (G) of section	4931
5711.22 of the Revised Code.	4932

(16) "Qualifying levies" are levies in effect for tax year	4933
2004 or applicable to tax year 2005 or approved at an election	4934
conducted before September 1, 2005. For the purpose of determining	4935
the rate of a qualifying levy authorized by section 5705.212 or	4936
5705.213 of the Revised Code, the rate shall be the rate that	4937
would be in effect for tax year 2010.	4938

(17) "Telephone property" means tangible personal property of	4939
a telephone, telegraph, or interexchange telecommunications	4940
company subject to an assessment rate specified in section	4941
5727.111 of the Revised Code in tax year 2004.	4942

(18) "Telephone property tax value loss" means the amount	4943
determined under division (C)(4) of this section.	4944

(19) "Telephone property fixed-rate levy loss" means the	4945
amount determined under division (D)(4) of this section.	4946

(20) "Taxes charged and payable" means taxes charged and	4947
payable after the reduction required by section 319.301 of the	4948
Revised Code but before the reductions required by sections	4949
319.302 and 323.152 of the Revised Code.	4950

(21) "Median estate tax collections" means, in the case of a	4951
municipal corporation to which revenue from the taxes levied in	4952
Chapter 5731. of the Revised Code was distributed in each of	4953
calendar years 2006, 2007, 2008, and 2009, the median of those	4954
distributions. In the case of a municipal corporation to which no	4955
distributions were made in one or more of those years, "median	4956
estate tax collections" means zero.	4957

(22) "Total resources," in the case of a school district,	4958
means the sum of the amounts in divisions (A)(22)(a) to (h) of	4959
this section less any reduction required under division (A)(32) or	4960
(33) of this section.	4961

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

4962

(b) The sum of the payments received by the school district	4963
in fiscal year 2010 for current expense levy losses pursuant to	4964
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of	4965
section 5751.21 of the Revised Code, excluding the portion of such	4966
payments attributable to levies for joint vocational school	4967
district purposes;	4968

(c) The sum of fixed-sum levy loss payments received by the	4969
school district in fiscal year 2010 pursuant to division (E)(1) of	4970
section 5727.85 and division (E)(1) of section 5751.21 of the	4971
Revised Code for fixed-sum levies charged and payable for a	4972
purpose other than paying debt charges;	4973

(d) Fifty per cent of the school district's taxes charged and	4974
payable against all property on the tax list of real and public	4975
utility property for current expense purposes for tax year 2008,	4976
including taxes charged and payable from emergency levies charged	4977
and payable under section 5709.194 of the Revised Code and	4978
excluding taxes levied for joint vocational school district	4979
purposes;	4980

(e) Fifty per cent of the school district's taxes charged and	4981
payable against all property on the tax list of real and public	4982
utility property for current expenses for tax year 2009, including	4983
taxes charged and payable from emergency levies and excluding	4984
taxes levied for joint vocational school district purposes;	4985

(f) The school district's taxes charged and payable against	4986
all property on the general tax list of personal property for	4987
current expenses for tax year 2009, including taxes charged and	4988
payable from emergency levies;	4989

(g) The amount certified for fiscal year 2010 under division	4990
(A)(2) of section 3317.08 of the Revised Code;	4991

(h) Distributions received during calendar year 2009 from	4992
taxes levied under section 718.09 of the Revised Code.	4993

(23) "Total resources," in the case of a joint vocational	4994
school district, means the sum of amounts in divisions (A)(23)(a)	4995
to (g) of this section less any reduction required under division	4996
(A)(32) of this section.	4997

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

4998

(b) The sum of the payments received by the joint vocational	4999
school district in fiscal year 2010 for current expense levy	5000
losses pursuant to division (C)(2) of section 5727.85 and	5001
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;	5002

(c) Fifty per cent of the joint vocational school district's	5003
taxes charged and payable against all property on the tax list of	5004
real and public utility property for current expense purposes for	5005
tax year 2008;	5006

(d) Fifty per cent of the joint vocational school district's	5007
taxes charged and payable against all property on the tax list of	5008
real and public utility property for current expenses for tax year	5009
2009;	5010

(e) Fifty per cent of a city, local, or exempted village	5011
school district's taxes charged and payable against all property	5012
on the tax list of real and public utility property for current	5013
expenses of the joint vocational school district for tax year	5014
2008;	5015

(f) Fifty per cent of a city, local, or exempted village	5016
school district's taxes charged and payable against all property	5017
on the tax list of real and public utility property for current	5018
expenses of the joint vocational school district for tax year	5019
2009;	5020

(g) The joint vocational school district's taxes charged and	5021
payable against all property on the general tax list of personal	5022
property for current expenses for tax year 2009.	5023

(24) "Total resources," in the case of county mental health	5024
and disability related functions, means the sum of the amounts in	5025
divisions (A)(24)(a) and (b) of this section less any reduction	5026
required under division (A)(32) of this section.	5027

(a) The sum of the payments received by the county for mental	5028
health and developmental disability related functions in calendar	5029
year 2010 under division (A)(1) of section 5727.86 and divisions	5030
(A)(1) and (2) of section 5751.22 of the Revised Code as they	5031
existed at that time;	5032

(b) With respect to taxes levied by the county for mental	5033
health and developmental disability related purposes, the taxes	5034
charged and payable for such purposes against all property on the	5035
tax list of real and public utility property for tax year 2009.	5036

(25) "Total resources," in the case of county senior services	5037
related functions, means the sum of the amounts in divisions	5038
(A)(25)(a) and (b) of this section less any reduction required	5039
under division (A)(32) of this section.	5040

(a) The sum of the payments received by the county for senior	5041
services related functions in calendar year 2010 under division	5042
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	5043
5751.22 of the Revised Code as they existed at that time;	5044

(b) With respect to taxes levied by the county for senior	5045
services related purposes, the taxes charged and payable for such	5046
purposes against all property on the tax list of real and public	5047
utility property for tax year 2009.	5048

(26) "Total resources," in the case of county children's	5049
services related functions, means the sum of the amounts in	5050
divisions (A)(26)(a) and (b) of this section less any reduction	5051
required under division (A)(32) of this section.	5052

(a) The sum of the payments received by the county for	5053
children's services related functions in calendar year 2010 under	5054
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of	5055
section 5751.22 of the Revised Code as they existed at that time;	5056

(b) With respect to taxes levied by the county for children's	5057
services related purposes, the taxes charged and payable for such	5058
purposes against all property on the tax list of real and public	5059
utility property for tax year 2009.	5060

(27) "Total resources," in the case of county public health	5061
related functions, means the sum of the amounts in divisions	5062
(A)(27)(a) and (b) of this section less any reduction required	5063
under division (A)(32) of this section.	5064

(a) The sum of the payments received by the county for public	5065
health related functions in calendar year 2010 under division	5066
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section	5067
5751.22 of the Revised Code as they existed at that time;	5068

(b) With respect to taxes levied by the county for public	5069
health related purposes, the taxes charged and payable for such	5070
purposes against all property on the tax list of real and public	5071
utility property for tax year 2009.	5072

(28) "Total resources," in the case of all county functions	5073
not included in divisions (A)(24) to (27) of this section, means	5074
the sum of the amounts in divisions (A)(28)(a) to (d) of this	5075
section less any reduction required under division (A)(32) or (33)	5076
of this section.	5077

(a) The sum of the payments received by the county for all	5078
other purposes in calendar year 2010 under division (A)(1) of	5079
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of	5080
the Revised Code as they existed at that time;	5081

(b) The county's percentage share of county undivided local	5082
government fund allocations as certified to the tax commissioner	5083
for calendar year 2010 by the county auditor under division (J) of	5084
section 5747.51 of the Revised Code or division (F) of section	5085
5747.53 of the Revised Code multiplied by the total amount	5086
actually distributed in calendar year 2010 from the county	5087
undivided local government fund;	5088

(c) With respect to taxes levied by the county for all other	5089
purposes, the taxes charged and payable for such purposes against	5090
all property on the tax list of real and public utility property	5091
for tax year 2009, excluding taxes charged and payable for the	5092
purpose of paying debt charges;	5093

(d) The sum of the amounts distributed to the county in	5094
calendar year 2010 for the taxes levied pursuant to sections	5095
5739.021 and 5741.021 of the Revised Code.	5096

(29) "Total resources," in the case of a municipal	5097
corporation, means the sum of the amounts in divisions (A)(29)(a)	5098
to (g) of this section less any reduction required under division	5099
(A)(32) or (33) of this section.	5100

(a) The sum of the payments received by the municipal	5101
corporation in calendar year 2010 for current expense levy losses	5102
under division (A)(1) of section 5727.86 and divisions (A)(1) and	5103
(2) of section 5751.22 of the Revised Code as they existed at that	5104
time;	5105

(b) The municipal corporation's percentage share of county	5106
undivided local government fund allocations as certified to the	5107
tax commissioner for calendar year 2010 by the county auditor	5108
under division (J) of section 5747.51 of the Revised Code or	5109
division (F) of section 5747.53 of the Revised Code multiplied by	5110
the total amount actually distributed in calendar year 2010 from	5111
the county undivided local government fund;	5112

(c) The sum of the amounts distributed to the municipal	5113
corporation in calendar year 2010 pursuant to section 5747.50 of	5114
the Revised Code;	5115

(d) With respect to taxes levied by the municipal	5116
corporation, the taxes charged and payable against all property on	5117
the tax list of real and public utility property for current	5118
expenses, defined in division (A)(35) of this section, for tax	5119
year 2009;	5120

(e) The amount of admissions tax collected by the municipal	5121
corporation in calendar year 2008, or if such information has not	5122
yet been reported to the tax commissioner, in the most recent year	5123
before 2008 for which the municipal corporation has reported data	5124
to the commissioner;	5125

(f) The amount of income taxes collected by the municipal	5126
corporation in calendar year 2008, or if such information has not	5127
yet been reported to the tax commissioner, in the most recent year	5128
before 2008 for which the municipal corporation has reported data	5129
to the commissioner;	5130

(g) The municipal corporation's median estate tax	5131
collections.	5132

(30) "Total resources," in the case of a township, means the	5133
sum of the amounts in divisions (A)(30)(a) to (c) of this section	5134
less any reduction required under division (A)(32) or (33) of this	5135
section.	5136

(a) The sum of the payments received by the township in	5137
calendar year 2010 pursuant to division (A)(1) of section 5727.86	5138
of the Revised Code and divisions (A)(1) and (2) of section	5139
5751.22 of the Revised Code as they existed at that time,	5140
excluding payments received for debt purposes;	5141

(b) The township's percentage share of county undivided local	5142
government fund allocations as certified to the tax commissioner	5143
for calendar year 2010 by the county auditor under division (J) of	5144
section 5747.51 of the Revised Code or division (F) of section	5145
5747.53 of the Revised Code multiplied by the total amount	5146
actually distributed in calendar year 2010 from the county	5147
undivided local government fund;	5148

(c) With respect to taxes levied by the township, the taxes	5149
charged and payable against all property on the tax list of real	5150
and public utility property for tax year 2009 excluding taxes	5151
charged and payable for the purpose of paying debt charges.	5152

(31) "Total resources," in the case of a local taxing unit	5153
that is not a county, municipal corporation, or township, means	5154
the sum of the amounts in divisions (A)(31)(a) to (e) of this	5155
section less any reduction required under division (A)(32) of this	5156
section.	5157

(a) The sum of the payments received by the local taxing unit	5158
in calendar year 2010 pursuant to division (A)(1) of section	5159
5727.86 of the Revised Code and divisions (A)(1) and (2) of	5160
section 5751.22 of the Revised Code as they existed at that time;	5161

(b) The local taxing unit's percentage share of county	5162
undivided local government fund allocations as certified to the	5163
tax commissioner for calendar year 2010 by the county auditor	5164
under division (J) of section 5747.51 of the Revised Code or	5165
division (F) of section 5747.53 of the Revised Code multiplied by	5166
the total amount actually distributed in calendar year 2010 from	5167
the county undivided local government fund;	5168

(c) With respect to taxes levied by the local taxing unit,	5169
the taxes charged and payable against all property on the tax list	5170
of real and public utility property for tax year 2009 excluding	5171
taxes charged and payable for the purpose of paying debt charges;	5172

(d) The amount received from the tax commissioner during	5173
calendar year 2010 for sales or use taxes authorized under	5174
sections 5739.023 and 5741.022 of the Revised Code;	5175

(e) For institutions of higher education receiving tax	5176
revenue from a local levy, as identified in section 3358.02 of the	5177
Revised Code, the final state share of instruction allocation for	5178
fiscal year 2010 as calculated by the board of regents and	5179
reported to the state controlling board.	5180

(32) If a fixed-rate levy that is a qualifying levy is not	5181
charged and payable in any year after tax year 2010, "total	5182
resources" used to compute payments to be made under division	5183
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section	5184
5751.22 of the Revised Code in the tax years following the last	5185
year the levy is charged and payable shall be reduced to the	5186
extent that the payments are attributable to the fixed-rate levy	5187
loss of that levy as would be computed under division (C)(2) of	5188
section 5727.85, division (A)(1) of section 5727.85, divisions	5189
(C)(8) and (9) of section 5751.21, or division (A)(1) of section	5190
5751.22 of the Revised Code.	5191

(33) In the case of a county, municipal corporation, school	5192
district, or township with fixed-rate levy losses attributable to	5193
a tax levied under section 5705.23 of the Revised Code, "total	5194
resources" used to compute payments to be made under division	5195
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,	5196
division (C)(12) of section 5751.21, or division (A)(1)(c) of	5197
section 5751.22 of the Revised Code shall be reduced by the	5198
amounts described in divisions (A)(34)(a) to (c) of this section	5199
to the extent that those amounts were included in calculating the	5200
"total resources" of the school district or local taxing unit	5201
under division (A)(22), (28), (29), or (30) of this section.	5202

(34) "Total library resources," in the case of a county,	5203
municipal corporation, school district, or township public library	5204
that receives the proceeds of a tax levied under section 5705.23	5205
of the Revised Code, means the sum of the amounts in divisions	5206
(A)(34)(a) to (c) of this section less any reduction required	5207
under division (A)(32) of this section.	5208

(a) The sum of the payments received by the county, municipal	5209
corporation, school district, or township public library in	5210
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the	5211
Revised Code, as they existed at that time, for fixed-rate levy	5212
losses attributable to a tax levied under section 5705.23 of the	5213
Revised Code for the benefit of the public library;	5214

(b) The public library's percentage share of county undivided	5215
local government fund allocations as certified to the tax	5216
commissioner for calendar year 2010 by the county auditor under	5217
division (J) of section 5747.51 of the Revised Code or division	5218
(F) of section 5747.53 of the Revised Code multiplied by the total	5219
amount actually distributed in calendar year 2010 from the county	5220
undivided local government fund;	5221

(c) With respect to a tax levied pursuant to section 5705.23	5222
of the Revised Code for the benefit of the public library, the	5223
amount of such tax that is charged and payable against all	5224
property on the tax list of real and public utility property for	5225
tax year 2009 excluding any tax that is charged and payable for	5226
the purpose of paying debt charges.	5227

(35) "Municipal current expense property tax levies" means	5228
all property tax levies of a municipality, except those with the	5229
following levy names: airport resurfacing; bond or any levy name	5230
including the word "bond"; capital improvement or any levy name	5231
including the word "capital"; debt or any levy name including the	5232
word "debt"; equipment or any levy name including the word	5233
"equipment," unless the levy is for combined operating and	5234
equipment; employee termination fund; fire pension or any levy	5235
containing the word "pension," including police pensions;	5236
fireman's fund or any practically similar name; sinking fund; road	5237
improvements or any levy containing the word "road"; fire truck or	5238
apparatus; flood or any levy containing the word "flood";	5239
conservancy district; county health; note retirement; sewage, or	5240
any levy containing the words "sewage" or "sewer"; park	5241
improvement; parkland acquisition; storm drain; street or any levy	5242
name containing the word "street"; lighting, or any levy name	5243
containing the word "lighting"; and water.	5244

(36) "Current expense TPP allocation" means, in the case of a	5245
school district or joint vocational school district, the sum of	5246
the payments received by the school district in fiscal year 2011	5247
pursuant to divisions (C)(10) and (11) of section 5751.21 of the	5248
Revised Code to the extent paid for current expense levies. In the	5249
case of a municipal corporation, "current expense TPP allocation"	5250
means the sum of the payments received by the municipal	5251
corporation in calendar year 2010 pursuant to divisions (A)(1) and	5252
(2) of section 5751.22 of the Revised Code to the extent paid for	5253
municipal current expense property tax levies as defined in	5254
division (A)(35) of this section, excluding any such payments	5255
received for current expense levy losses attributable to a tax	5256
levied under section 5705.23 of the Revised Code. If a fixed-rate	5257
levy that is a qualifying levy is not charged and payable in any	5258
year after tax year 2010, "current expense TPP allocation" used to	5259
compute payments to be made under division (C)(12) of section	5260
5751.21 or division (A)(1)(b) or (c) of section 5751.22 of the	5261
Revised Code in the tax years following the last year the levy is	5262
charged and payable shall be reduced to the extent that the	5263
payments are attributable to the fixed-rate levy loss of that levy	5264
as would be computed under divisions (C)(10) and (11) of section	5265
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.	5266

(37) "TPP allocation" means the sum of payments received by a	5267
local taxing unit in calendar year 2010 pursuant to divisions	5268
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding	5269
any such payments received for fixed-rate levy losses attributable	5270
to a tax levied under section 5705.23 of the Revised Code. If a	5271
fixed-rate levy that is a qualifying levy is not charged and	5272
payable in any year after tax year 2010, "TPP allocation" used to	5273
compute payments to be made under division (A)(1)(b) or (c) of	5274
section 5751.22 of the Revised Code in the tax years following the	5275
last year the levy is charged and payable shall be reduced to the	5276
extent that the payments are attributable to the fixed-rate levy	5277
loss of that levy as would be computed under division (A)(1) of	5278
that section.	5279

(38) "Total TPP allocation" means, in the case of a school	5280
district or joint vocational school district, the sum of the	5281
amounts received in fiscal year 2011 pursuant to divisions (C)(10)	5282
and (11) and (D) of section 5751.21 of the Revised Code. In the	5283
case of a local taxing unit, "total TPP allocation" means the sum	5284
of payments received by the unit in calendar year 2010 pursuant to	5285
divisions (A)(1), (2), and (3) of section 5751.22 of the Revised	5286
Code. If a fixed-rate levy that is a qualifying levy is not	5287
charged and payable in any year after tax year 2010, "total TPP	5288
allocation" used to compute payments to be made under division	5289
(C)(12) of section 5751.21 or division (A)(1)(b) or (c) of section	5290
5751.22 of the Revised Code in the tax years following the last	5291
year the levy is charged and payable shall be reduced to the	5292
extent that the payments are attributable to the fixed-rate levy	5293
loss of that levy as would be computed under divisions (C)(10) and	5294
(11) of section 5751.21 or division (A)(1) of section 5751.22 of	5295
the Revised Code.	5296

(39) "Non-current expense TPP allocation" means the	5297
difference of total TPP allocation minus the sum of current	5298
expense TPP allocation and the portion of total TPP allocation	5299
constituting reimbursement for debt levies, pursuant to division	5300
(D) of section 5751.21 of the Revised Code in the case of a school	5301
district or joint vocational school district and pursuant to	5302
division (A)(3) of section 5751.22 of the Revised Code in the case	5303
of a municipal corporation.	5304

(40) "TPP allocation for library purposes" means the sum of	5305
payments received by a county, municipal corporation, school	5306
district, or township public library in calendar year 2010	5307
pursuant to section 5751.22 of the Revised Code for fixed-rate	5308
levy losses attributable to a tax levied under section 5705.23 of	5309
the Revised Code. If a fixed-rate levy authorized under section	5310
5705.23 of the Revised Code that is a qualifying levy is not	5311
charged and payable in any year after tax year 2010, "TPP	5312
allocation for library purposes" used to compute payments to be	5313
made under division (A)(1)(d) of section 5751.22 of the Revised	5314
Code in the tax years following the last year the levy is charged	5315
and payable shall be reduced to the extent that the payments are	5316
attributable to the fixed-rate levy loss of that levy as would be	5317
computed under division (A)(1) of section 5751.22 of the Revised	5318
Code.	5319

(41) "Threshold per cent" means, in the case of a school	5320
district or joint vocational school district, two per cent for	5321
fiscal year 2012 and four per cent for fiscal years 2013 and	5322
thereafter. In the case of a local taxing unit or public library	5323
that receives the proceeds of a tax levied under section 5705.23	5324
of the Revised Code, "threshold per cent" means two per cent for	5325
tax year 2011, four per cent for tax year 2012, and six per cent	5326
for tax years 2013 and thereafter.	5327

(B)(1) The commercial activities tax receipts fund is hereby	5328
created in the state treasury and shall consist of money arising	5329
from the tax imposed under this chapter. Eighty-five	5330
one-hundredths of one per cent of the money credited to that fund	5331
shall be credited to the revenue enhancement fund and shall be	5332
used to defray the costs incurred by the department of taxation in	5333
administering the tax imposed by this chapter and in implementing	5334
tax reform measures. The remainder of the money in the commercial	5335
activities tax receipts fund shall first be credited to the	5336
commercial activity tax motor fuel receipts fund, pursuant to	5337
division (B)(2) of this section, and the remainder shall be	5338
credited in the following percentages each fiscal year to the	5339
general revenue fund, to the school district tangible property tax	5340
replacement fund, which is hereby created in the state treasury	5341
for the purpose of making the payments described in section	5342
5751.21 of the Revised Code, and to the local government tangible	5343
property tax replacement fund, which is hereby created in the	5344
state treasury for the purpose of making the payments described in	5345
section 5751.22 of the Revised Code, in the following percentages:	5346

Fiscal year	General Revenue Fund	School District Tangible Property Tax Replacement Fund	Local Government Tangible Property Tax Replacement Fund		5347
2006	67.7%	22.6%	9.7%		5348
2007	0%	70.0%	30.0%		5349
2008	0%	70.0%	30.0%		5350
2009	0%	70.0%	30.0%		5351
2010	0%	70.0%	30.0%		5352
2011	0%	70.0%	30.0%		5353
2012	25.0%	52.5%	22.5%		5354
2013 and thereafter	50.0%	35.0%	15.0%		5355

(2) Not later than the twentieth day of February, May,	5356
August, and November of each year, the commissioner shall provide	5357
for payment from the commercial activities tax receipts fund to	5358
the commercial activity tax motor fuel receipts fund an amount	5359
that bears the same ratio to the balance in the commercial	5360
activities tax receipts fund that (a) the taxable gross receipts	5361
attributed to motor fuel used for propelling vehicles on public	5362
highways as indicated by returns filed by the tenth day of that	5363
month for a liability that is due and payable on or after July 1,	5364
2013, for a tax period ending before July 1, 2014, bears to (b)	5365
all taxable gross receipts as indicated by those returns for such	5366
liabilities.	5367

(C) Not later than September 15, 2005, the tax commissioner	5368
shall determine for each school district, joint vocational school	5369
district, and local taxing unit its machinery and equipment,	5370
inventory property, furniture and fixtures property, and telephone	5371
property tax value losses, which are the applicable amounts	5372
described in divisions (C)(1), (2), (3), and (4) of this section,	5373
except as provided in division (C)(5) of this section:	5374

(1) Machinery and equipment property tax value loss is the	5375
taxable value of machinery and equipment property as reported by	5376
taxpayers for tax year 2004 multiplied by:	5377

(a) For tax year 2006, thirty-three and eight-tenths per	5378
cent;	5379

(b) For tax year 2007, sixty-one and three-tenths per cent;

5380

(c) For tax year 2008, eighty-three per cent;

5381

(d) For tax year 2009 and thereafter, one hundred per cent.

5382

(2) Inventory property tax value loss is the taxable value of	5383
inventory property as reported by taxpayers for tax year 2004	5384
multiplied by:	5385

(a) For tax year 2006, a fraction, the numerator of which is	5386
five and three-fourths and the denominator of which is	5387
twenty-three;	5388

(b) For tax year 2007, a fraction, the numerator of which is	5389
nine and one-half and the denominator of which is twenty-three;	5390

(c) For tax year 2008, a fraction, the numerator of which is	5391
thirteen and one-fourth and the denominator of which is	5392
twenty-three;	5393

(d) For tax year 2009 and thereafter a fraction, the	5394
numerator of which is seventeen and the denominator of which is	5395
twenty-three.	5396

(3) Furniture and fixtures property tax value loss is the	5397
taxable value of furniture and fixture property as reported by	5398
taxpayers for tax year 2004 multiplied by:	5399

(a) For tax year 2006, twenty-five per cent;

5400

(b) For tax year 2007, fifty per cent;

5401

(c) For tax year 2008, seventy-five per cent;

5402

(d) For tax year 2009 and thereafter, one hundred per cent.

5403

The taxable value of property reported by taxpayers used in	5404
divisions (C)(1), (2), and (3) of this section shall be such	5405
values as determined to be final by the tax commissioner as of	5406
August 31, 2005. Such determinations shall be final except for any	5407
correction of a clerical error that was made prior to August 31,	5408
2005, by the tax commissioner.	5409

(4) Telephone property tax value loss is the taxable value of	5410
telephone property as taxpayers would have reported that property	5411
for tax year 2004 if the assessment rate for all telephone	5412
property for that year were twenty-five per cent, multiplied by:	5413

(a) For tax year 2006, zero per cent;

5414

(b) For tax year 2007, zero per cent;

5415

(c) For tax year 2008, zero per cent;

5416

(d) For tax year 2009, sixty per cent;

5417

(e) For tax year 2010, eighty per cent;

5418

(f) For tax year 2011 and thereafter, one hundred per cent.

5419

(5) Division (C)(5) of this section applies to any school	5420
district, joint vocational school district, or local taxing unit	5421
in a county in which is located a facility currently or formerly	5422
devoted to the enrichment or commercialization of uranium or	5423
uranium products, and for which the total taxable value of	5424
property listed on the general tax list of personal property for	5425
any tax year from tax year 2001 to tax year 2004 was fifty per	5426
cent or less of the taxable value of such property listed on the	5427
general tax list of personal property for the next preceding tax	5428
year.	5429

In computing the fixed-rate levy losses under divisions	5430
(D)(1), (2), and (3) of this section for any school district,	5431
joint vocational school district, or local taxing unit to which	5432
division (C)(5) of this section applies, the taxable value of such	5433
property as listed on the general tax list of personal property	5434
for tax year 2000 shall be substituted for the taxable value of	5435
such property as reported by taxpayers for tax year 2004, in the	5436
taxing district containing the uranium facility, if the taxable	5437
value listed for tax year 2000 is greater than the taxable value	5438
reported by taxpayers for tax year 2004. For the purpose of making	5439
the computations under divisions (D)(1), (2), and (3) of this	5440
section, the tax year 2000 valuation is to be allocated to	5441
machinery and equipment, inventory, and furniture and fixtures	5442
property in the same proportions as the tax year 2004 values. For	5443
the purpose of the calculations in division (A) of section 5751.21	5444
of the Revised Code, the tax year 2004 taxable values shall be	5445
used.	5446

To facilitate the calculations required under division (C) of	5447
this section, the county auditor, upon request from the tax	5448
commissioner, shall provide by August 1, 2005, the values of	5449
machinery and equipment, inventory, and furniture and fixtures for	5450
all single-county personal property taxpayers for tax year 2004.	5451

(D) Not later than September 15, 2005, the tax commissioner	5452
shall determine for each tax year from 2006 through 2009 for each	5453
school district, joint vocational school district, and local	5454
taxing unit its machinery and equipment, inventory, and furniture	5455
and fixtures fixed-rate levy losses, and for each tax year from	5456
2006 through 2011 its telephone property fixed-rate levy loss.	5457
Except as provided in division (F) of this section, such losses	5458
are the applicable amounts described in divisions (D)(1), (2),	5459
(3), and (4) of this section:	5460

(1) The machinery and equipment fixed-rate levy loss is the	5461
machinery and equipment property tax value loss multiplied by the	5462
sum of the tax rates of fixed-rate qualifying levies.	5463

(2) The inventory fixed-rate loss is the inventory property	5464
tax value loss multiplied by the sum of the tax rates of	5465
fixed-rate qualifying levies.	5466

(3) The furniture and fixtures fixed-rate levy loss is the	5467
furniture and fixture property tax value loss multiplied by the	5468
sum of the tax rates of fixed-rate qualifying levies.	5469

(4) The telephone property fixed-rate levy loss is the	5470
telephone property tax value loss multiplied by the sum of the tax	5471
rates of fixed-rate qualifying levies.	5472

(E) Not later than September 15, 2005, the tax commissioner	5473
shall determine for each school district, joint vocational school	5474
district, and local taxing unit its fixed-sum levy loss. The	5475
fixed-sum levy loss is the amount obtained by subtracting the	5476
amount described in division (E)(2) of this section from the	5477
amount described in division (E)(1) of this section:	5478

(1) The sum of the machinery and equipment property tax value	5479
loss, the inventory property tax value loss, and the furniture and	5480
fixtures property tax value loss, and, for 2008 through 2010, the	5481
telephone property tax value loss of the district or unit	5482
multiplied by the sum of the fixed-sum tax rates of qualifying	5483
levies. For 2006 through 2010, this computation shall include all	5484
qualifying levies remaining in effect for the current tax year and	5485
any school district levies charged and payable under section	5486
5705.194 or 5705.213 of the Revised Code that are qualifying	5487
levies not remaining in effect for the current year. For 2011	5488
through 2017 in the case of school district levies charged and	5489
payable under section 5705.194 or 5705.213 of the Revised Code and	5490
for all years after 2010 in the case of other fixed-sum levies,	5491
this computation shall include only qualifying levies remaining in	5492
effect for the current year. For purposes of this computation, a	5493
qualifying school district levy charged and payable under section	5494
5705.194 or 5705.213 of the Revised Code remains in effect in a	5495
year after 2010 only if, for that year, the board of education	5496
levies a school district levy charged and payable under section	5497
5705.194, 5705.199, 5705.213, or 5705.219 of the Revised Code for	5498
an annual sum at least equal to the annual sum levied by the board	5499
in tax year 2004 less the amount of the payment certified under	5500
this division for 2006.	5501

(2) The total taxable value in tax year 2004 less the sum of	5502
the machinery and equipment, inventory, furniture and fixtures,	5503
and telephone property tax value losses in each school district,	5504
joint vocational school district, and local taxing unit multiplied	5505
by one-half of one mill per dollar.	5506

(3) For the calculations in divisions (E)(1) and (2) of this	5507
section, the tax value losses are those that would be calculated	5508
for tax year 2009 under divisions (C)(1), (2), and (3) of this	5509
section and for tax year 2011 under division (C)(4) of this	5510
section.	5511

(4) To facilitate the calculation under divisions (D) and (E)	5512
of this section, not later than September 1, 2005, any school	5513
district, joint vocational school district, or local taxing unit	5514
that has a qualifying levy that was approved at an election	5515
conducted during 2005 before September 1, 2005, shall certify to	5516
the tax commissioner a copy of the county auditor's certificate of	5517
estimated property tax millage for such levy as required under	5518
division (B) of section 5705.03 of the Revised Code, which is the	5519
rate that shall be used in the calculations under such divisions.	5520

If the amount determined under division (E) of this section	5521
for any school district, joint vocational school district, or	5522
local taxing unit is greater than zero, that amount shall equal	5523
the reimbursement to be paid pursuant to division (E) of section	5524
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,	5525
and the one-half of one mill that is subtracted under division	5526
(E)(2) of this section shall be apportioned among all contributing	5527
fixed-sum levies in the proportion that each levy bears to the sum	5528
of all fixed-sum levies within each school district, joint	5529
vocational school district, or local taxing unit.	5530

(F) If a school district levies a tax under section 5705.219	5531
of the Revised Code, the fixed-rate levy loss for qualifying	5532
levies, to the extent repealed under that section, shall equal the	5533
sum of the following amounts in lieu of the amounts computed for	5534
such levies under division (D) of this section:	5535

(1) The sum of the rates of qualifying levies to the extent	5536
so repealed multiplied by the sum of the machinery and equipment,	5537
inventory, and furniture and fixtures tax value losses for 2009 as	5538
determined under that division;	5539

(2) The sum of the rates of qualifying levies to the extent	5540
so repealed multiplied by the telephone property tax value loss	5541
for 2011 as determined under that division.	5542

The fixed-rate levy losses for qualifying levies to the	5543
extent not repealed under section 5705.219 of the Revised Code	5544
shall be as determined under division (D) of this section. The	5545
revised fixed-rate levy losses determined under this division and	5546
division (D) of this section first apply in the year following the	5547
first year the district levies the tax under section 5705.219 of	5548
the Revised Code.	5549

(G) Not later than October 1, 2005, the tax commissioner	5550
shall certify to the department of education for every school	5551
district and joint vocational school district the machinery and	5552
equipment, inventory, furniture and fixtures, and telephone	5553
property tax value losses determined under division (C) of this	5554
section, the machinery and equipment, inventory, furniture and	5555
fixtures, and telephone fixed-rate levy losses determined under	5556
division (D) of this section, and the fixed-sum levy losses	5557
calculated under division (E) of this section. The calculations	5558
under divisions (D) and (E) of this section shall separately	5559
display the levy loss for each levy eligible for reimbursement.	5560

(H) Not later than October 1, 2005, the tax commissioner	5561
shall certify the amount of the fixed-sum levy losses to the	5562
county auditor of each county in which a school district, joint	5563
vocational school district, or local taxing unit with a fixed-sum	5564
levy loss reimbursement has territory.	5565

(I) Not later than the twenty-eighth day of February each	5566
year beginning in 2011 and ending in 2014, the tax commissioner	5567
shall certify to the department of education for each school	5568
district first levying a tax under section 5705.219 of the Revised	5569
Code in the preceding year the revised fixed-rate levy losses	5570
determined under divisions (D) and (F) of this section.	5571

(J)(1) There is hereby created in the state treasury the	5572
commercial activity tax motor fuel receipts fund.	5573

(2)(a) On or before June 15, 2014, the director of the Ohio	5574
public works commission shall certify to the director of budget	5575
and management the amount of debt service paid from the general	5576
revenue fund in fiscal years 2013 and 2014 on bonds issued to	5577
finance or assist in the financing of the cost of local	5578
subdivision public infrastructure capital improvement projects, as	5579
provided for in Sections 2k, 2m, and 2p of Article VIII, Ohio	5580
Constitution, that are attributable to costs for construction,	5581
reconstruction, maintenance, or repair of public highways and	5582
bridges and other statutory highway purposes. That certification	5583
shall allocate the total amount of debt service paid from the	5584
general revenue fund and attributable to those costs in each of	5585
fiscal years 2013 and 2014 according to the applicable section of	5586
the Ohio Constitution under which the bonds were originally	5587
issued.	5588

(b) On or before June 30, 2014, the director of budget and	5589
management shall determine an amount up to but not exceeding the	5590
amount certified under division (J)(2)(a) of this section and	5591
shall reserve that amount from the cash balance in the commercial	5592
activity tax motor fuel receipts fund for transfer to the general	5593
revenue fund at times and in amounts to be determined by the	5594
director. The director shall transfer the cash balance in the	5595
commercial activity tax motor fuel receipts fund in excess of the	5596
amount so reserved to the highway operating fund on or before June	5597
30, 2014.	5598

(3)(a) On or before the fifteenth day of June of each fiscal	5599
year beginning with fiscal year 2015, the director of the Ohio	5600
public works commission shall certify to the director of budget	5601
and management the amount of debt service paid from the general	5602
revenue fund in the current fiscal year on bonds issued to finance	5603
or assist in the financing of the cost of local subdivision public	5604
infrastructure capital improvement projects, as provided for in	5605
Sections 2k, 2m, and 2p of Article VIII, Ohio Constitution, that	5606
are attributable to costs for construction, reconstruction,	5607
maintenance, or repair of public highways and bridges and other	5608
statutory highway purposes. That certification shall allocate the	5609
total amount of debt service paid from the general revenue fund	5610
and attributable to those costs in the current fiscal year	5611
according to the applicable section of the Ohio Constitution under	5612
which the bonds were originally issued.	5613

(b) On or before the thirtieth day of June of each fiscal	5614
year beginning with fiscal year 2015, the director of budget and	5615
management shall determine an amount up to but not exceeding the	5616
amount certified under division (J)(3)(a) of this section and	5617
shall reserve that amount from the cash balance in the motor fuel	5618
receiptspetroleum activity tax public highways fund or the	5619
commercial activity tax motor fuel receipts fund for transfer to	5620
the general revenue fund at times and in amounts to be determined	5621
by the director. The director shall transfer the cash balance in	5622
the motor fuel receiptspetroleum activity tax public highways	5623
fund or the commercial activity tax motor fuel receipts fund in	5624
excess of the amount so reserved to the highway operating fund on	5625
or before the thirtieth day of June of the current fiscal year.	5626

Section 2. That existing sections 122.17, 122.171, 122.86,	5627
166.21, 718.15, 718.151, 3734.905, 4921.13, 4921.19, 5703.05,	5628
5703.056, 5703.059, 5703.21, 5727.47, 5727.91, 5735.01, 5735.026,	5629
5735.05, 5735.062, 5735.07, 5735.09, 5735.12, 5735.141, 5735.23,	5630
5736.01, 5736.02, 5736.03, 5736.04, 5736.06, 5736.09, 5736.13,	5631
5743.01, 5743.021, 5743.024, 5743.025, 5743.03, 5743.04, 5743.05,	5632
5743.051, 5743.112, 5743.52, 5743.65, 5747.08, 5747.98, 5751.01,	5633
and 5751.20, and sections 183.35, 5726.08, 5733.30, 5735.16,	5634
5743.06, and 5745.10 of the Revised Code are hereby repealed.	5635

Section 3. All appropriation items in this act are	5636
appropriated out of any moneys in the state treasury to the credit	5637
of the designated fund that are not otherwise appropriated. For	5638
all appropriations made in this act, the amounts in the first	5639
column are for fiscal year 2014 and the amounts in the second	5640
column are for fiscal year 2015. The appropriations made in this	5641
act are in addition to any other appropriations made for the FY	5642
2014-FY 2015 biennium.	5643

TAX DEPARTMENT OF TAXATION	5644

GRF	110321		Operating Expenses		$	0		$	682,000		5645
TOTAL GRF General Revenue Fund					$	0		$	682,000		5646
TOTAL ALL BUDGET FUND GROUPS					$	0		$	682,000		5647

Section 4.  The amendment by this act of section 122.86 of	5649
the Revised Code applies to any qualifying investment made on or	5650
after July 1, 2011, including any qualifying investment made on or	5651
after July 1, 2013.	5652

Section 5. The amendment or enactment by this act of sections	5653
122.17, 122.171, and 5736.50 of the Revised Code, except for the	5654
amendment to division (A) of section 122.17 of the Revised Code,	5655
applies to tax periods beginning on or after July 1, 2014.	5656

The amendment by this act of division (A) of section 5736.02,	5657
division (A) of section 5736.03, division (G) of section 5736.09,	5658
divisions (D)(2)(a) and (b) of section 5736.13, section 5751.01,	5659
all divisions of section 5736.01 except division (I) of that	5660
section, and the addition of the word "calculated" in divisions	5661
(A) and (C) of section 5736.04 of the Revised Code apply to tax	5662
periods beginning on or after July 1, 2015.	5663

Section 6. (A) As used in this section:

5664

(1) "Qualified property" means real property all or a portion	5665
of the assessed value of which is or has been eligible for	5666
exemption from taxation under a qualifying enterprise zone	5667
agreement.	5668

(2) "Qualifying enterprise zone agreement" means an	5669
enterprise zone agreement entered into under section 5709.63 of	5670
the Revised Code by the record owner of qualified property and the	5671
board of county commissioners of a county having a population	5672
greater than five hundred thousand but less than six hundred	5673
thousand with the consent of a municipal corporation having a	5674
population greater than fifteen thousand but less than twenty	5675
thousand. For the purposes of this section, population is	5676
determined by reference to the 2010 decennial census.	5677

(3) "Record owner" means the person or persons in whose name	5678
a parcel of qualified real property is listed on the tax list	5679
compiled by the county auditor under section 319.28 of the Revised	5680
Code.	5681

(B) Notwithstanding section 5713.081 of the Revised Code,	5682
when qualified property has not received tax exemption to which	5683
the property would otherwise be entitled if not for the record	5684
owner's failure to comply with section 5715.27 of the Revised	5685
Code, the record owner, at any time on or before three months	5686
after the effective date of this section, may file with the Tax	5687
Commissioner an application requesting the following:	5688

(1) That the qualified property be added to the list of	5689
exempted parcels compiled by the county auditor under section	5690
5713.08 of the Revised Code;	5691

(2) That unpaid taxes, to the extent the assessed value of	5692
the qualified property would have been exempted under the	5693
qualifying enterprise zone agreement, and any penalties and	5694
interest arising from such taxes be abated;	5695

(3) That any amounts paid by the record owner in satisfaction	5696
of taxes from which the qualified property would have been	5697
exempted under the qualifying enterprise zone agreement and in	5698
satisfaction of penalties and interest arising from such taxes be	5699
refunded.	5700

(C) The application shall be made on the current form	5701
prescribed by the Commissioner under section 5715.27 of the	5702
Revised Code and shall also list the name of the county in which	5703
the qualified property is located; the property's legal	5704
description; its assessed value; the amount in dollars of the	5705
unpaid taxes, penalties, and interest for which the record owner	5706
is seeking abatement; the amount paid in satisfaction of taxes,	5707
penalties, and interest for which the record owner is seeking a	5708
refund; the date of acquisition of title to the property; a copy	5709
of the qualifying enterprise zone agreement; and any other	5710
information required by the Commissioner. The county auditor shall	5711
supply any such information in the auditor's possession upon	5712
request of the applicant.	5713

(D) Upon receipt of the application and after consideration	5714
of it, the Commissioner shall determine if the qualified property	5715
meets the qualifications set forth in this section, and if so	5716
shall issue an order directing that the property be placed on the	5717
tax-exempt list of the county for the period and years described	5718
in the qualifying enterprise zone agreement and that the	5719
tax-exempt lists and tax duplicates for those years be corrected	5720
accordingly; that all unpaid taxes from which the qualified	5721
property would have been exempt under the qualifying enterprise	5722
zone agreement, and all penalties and interest arising from such	5723
taxes, be abated; and that all amounts paid by the record owner in	5724
satisfaction of taxes from which the qualified property would have	5725
been exempt under the qualifying enterprise zone agreement, and	5726
penalties and interest arising from such taxes, be refunded. If	5727
the Commissioner finds that the qualified property does not meet	5728
the qualifications set forth in this section, the Commissioner	5729
shall issue an order denying the application.	5730

(E) If the Commissioner finds that the property is not	5731
entitled to tax exemption, to the abatement of unpaid taxes,	5732
penalties, and interest, or to the refund of amounts paid in	5733
satisfaction of taxes, penalties, and interest for any of the	5734
years for which the record owner claims an exemption, abatement,	5735
or refund, the Commissioner shall order the county treasurer of	5736
the county in which the property is located to collect all unpaid	5737
taxes, penalties, and interest due on the property for those years	5738
in accordance with law.	5739

(F) The Commissioner may apply this section to any qualified	5740
property that is the subject of an application for exemption	5741
pending before the Commissioner, or on appeal before the Board of	5742
Tax Appeals, a court of appeals, or the Ohio Supreme Court on the	5743
effective date of this section.	5744

Section 7.  Division (J) of section 5751.20 of the Revised	5745
Code is amended by this act and also by H.B. 59 of the 130th	5746
General Assembly (effective July 1, 2014). The amendments of H.B.	5747
59 are included in this act to confirm the intention to retain	5748
them, but are not intended to be effective until July 1, 2014.	5749