Section 1. That sections 5501.44, 5501.70, 5501.71, 5501.73, | 16 |
5501.78, 5531.11, 5531.12, 5531.13, 5531.14, 5531.15, 5531.16, and | 17 |
5739.02 be amended and sections 5531.141, 5531.142, 5531.143, | 18 |
5531.144, 5531.145, 5531.146, 5531.147, 5531.148, and 5531.149 of | 19 |
the Revised Code be enacted to read as follows: | 20 |
Sec. 5501.44. (A)(1) Notwithstanding section 5735.27 of the | 21 |
Revised Code, the director of transportation, when the director | 22 |
determines it in the interest of the welfare and safety of the | 23 |
citizens of Ohio, may enter into agreements with other states or | 24 |
subdivisions thereof or the United States relative to the | 25 |
cooperation in the repair, maintenance, or construction of a | 26 |
bridge crossing a stream that forms a boundary line of this state, | 27 |
and may expend state highway funds for said purpose. | 28 |
(2) Notwithstanding division (A)(1) of this section, the | 36 |
director may expend funds for the design, construction, | 37 |
inspection, maintenance, repair, and replacement of bridge and | 38 |
bridge approaches for the bridge that were transferred from the | 39 |
Ohio bridge commission to the control of the state of Ohio, | 40 |
department of transportation, as provided in Section 4 of Amended | 41 |
Substitute House Bill No. 98 of the 114th general assembly. | 42 |
Following the replacement of that bridge, the director may expend | 43 |
funds for the design, construction, inspection, maintenance, | 44 |
repair, and replacement of bridge and bridge approaches. | 45 |
(3) Notwithstanding division (A)(1) of this section, the | 46 |
director may enter into an agreement with another state for the | 47 |
replacement, improvement, rehabilitation, operation, and | 48 |
maintenance of a bridge or system of bridges at one location that | 49 |
carries two interstate highways over the Ohio river to another | 50 |
state, and the replacement, improvement, rehabilitation, | 51 |
operation, and maintenance of roadways providing for ingress to | 52 |
and egress from that bridge or system of bridges. However, no such | 53 |
agreement shall obligate this state to expend more than fifty per | 54 |
cent of the total project costs. | 55 |
(4)(5) Each agreement entered into shall designate | 59 |
responsibility for inspection, provide for annual inspection, and | 60 |
require that a report of each inspection be filed with the | 61 |
department of transportation. The director, with regard to all | 62 |
existing bridges or other bridges on a stream that forms a | 63 |
boundary line of this state, shall take all reasonable measures to | 64 |
obtain and to secure the filing of a copy of each inspection | 65 |
report for each bridge with the department of transportation. | 66 |
(B)(1) The director, when the director considers it in the | 73 |
interest of the welfare and safety of the citizens of Ohio, may | 74 |
enter into agreements with other states, subdivisions thereof, | 75 |
metropolitan planning organizations, or the United States, | 76 |
relative to the design, construction, operation, maintenance, and | 77 |
repair of a regional traffic management system, and may expend | 78 |
state and federal highway funds for such purposes, notwithstanding | 79 |
any other provision of the Revised Code. | 80 |
(J) "Transportation facility" has the same meaning as in | 135 |
section 5501.01 of the Revised Code and also includes a tunnel, | 136 |
ferry, port facility on navigable waters that are used for | 137 |
commerce, intermodal facility, or similar facility open to the | 138 |
public and used for the transportation of persons or goods, and | 139 |
any building, structure, parking area, or other appurtenances or | 140 |
property needed to operate a transportation facility that is | 141 |
subject to a public-private agreement. | 142 |
(L) "Utility" means a privately, publicly, or cooperatively | 147 |
owned line, facility, or system for producing, transmitting, or | 148 |
distributing communications, cable television, power, electricity, | 149 |
light, heat, gas, oil, crude products, water, steam, waste, storm | 150 |
water not connected with highway drainage, alternative or | 151 |
renewable energy sources such as wind or solar, or any other | 152 |
similar commodity, including a fire or police signal system or | 153 |
street lighting system that directly or indirectly serves the | 154 |
public. | 155 |
(2) The extent that the private entity's proposal addresses | 171 |
the needs identified in the appropriate state, regional, or local | 172 |
transportation plan by improving safety, reducing congestion, | 173 |
increasing capacity, or enhancing economic efficiency and the | 174 |
private entity's proposal is on the transportation improvement | 175 |
program for the affected metropolitan planning organization or the | 176 |
state transportation improvement program; | 177 |
(F) Any materials or data submitted to, made available to, or | 202 |
received by the director of transportation, to the extent that the | 203 |
material or data consist of trade secrets, as defined in section | 204 |
1333.61 of the Revised Code, are confidential and are not public | 205 |
records for the purposes of section 149.43 of the Revised Code. | 206 |
Financial information received by the director that is related to | 207 |
a proposal is confidential and not a public record for purposes of | 208 |
section 149.43 of the Revised Code until such time as a proposal | 209 |
is selected. Prior to submission of a solicited proposal, a | 210 |
private entity may request a review by the department of | 211 |
information that the private entity has identified as | 212 |
confidential, to determine whether such information would be | 213 |
subject to disclosure under section 149.43 of the Revised Code. | 214 |
(G)(1) The department may reimburse one or more private | 215 |
entities for a portion of the actual costs each entity incurred in | 216 |
submitting a proposal for a public-private initiative that was | 217 |
solicited by the department under this section. When considering | 218 |
the reimbursement of such costs, the director shall describe in | 219 |
the request for proposals for a specific public-private initiative | 220 |
the specific terms and conditions for reimbursing one or more | 221 |
private entities. The director may include in the terms and | 222 |
conditions a requirement that each private entity execute an | 223 |
agreement to transfer to the department the rights to the use of | 224 |
the work product contained in the proposal in exchange for | 225 |
receiving the reimbursement. | 226 |
(2) The director shall make all decisions related to the | 227 |
reimbursement of a specific private entity and related to the | 228 |
maximum amount of the reimbursement. However, the department shall | 229 |
not reimburse a private entity if that entity enters into the | 230 |
public-private agreement that is the subject of the solicited | 231 |
proposal, except as set forth in the request for proposals or in | 232 |
the public-private agreement. The reimbursement of costs under | 233 |
division (G) of this section is exempt from the requirements of | 234 |
Chapter 125. of the Revised Code and sections 127.16 and 127.162 | 235 |
of the Revised Code. | 236 |
(3) If the department, pursuant to division (G)(1) of this | 237 |
section, includes a reimbursement provision in a request for | 238 |
proposals and the department subsequently terminates the | 239 |
solicitation prior to the solicitation expiration date, the | 240 |
department shall prorate the amount of the reimbursement that is | 241 |
to be paid to each private entity participating in the | 242 |
solicitation on the date the department terminates the | 243 |
solicitation. The department shall calculate the proration | 244 |
percentage by determining the number of days from the date the | 245 |
solicitation first was offered until the date the department | 246 |
terminated the solicitation and dividing that number by the number | 247 |
of days of the original solicitation period. | 248 |
(4) Except as otherwise provided in writing by the | 249 |
department, if, pursuant to division (G)(1) of this section, the | 250 |
department includes a reimbursement provision in a request for | 251 |
proposals and subsequently enters into negotiations based on the | 252 |
selection of a desired proposal and the department elects to | 253 |
terminate those negotiations for the convenience of the department | 254 |
and through no fault of the proposer, the proposer is entitled to | 255 |
the full reimbursement amount. | 256 |
(D)(1) The director of transportation may include in any | 331 |
public-private agreement under sections 5501.70 to 5501.83 of the | 332 |
Revised Code a provision authorizing a binding dispute resolution | 333 |
method for any controversy subsequently arising out of the | 334 |
contract. The binding dispute resolution method may proceed only | 335 |
upon agreement of all parties to the controversy. If all parties | 336 |
do not agree to proceed to a binding dispute resolution, a party | 337 |
having a claim against the department shall exhaust its | 338 |
administrative remedies specified in the public-private agreement | 339 |
prior to filing any action against the department in the court of | 340 |
claims. | 341 |
Sec. 5501.78. A transportation facility and any tangible | 376 |
personal property used exclusively with a transportation facility | 377 |
that is owned by the department of transportation and leased, | 378 |
licensed, financed, or otherwise conveyed to an operator, or that | 379 |
is acquired, constructed, or otherwise provided by an operator on | 380 |
behalf of the department, is exempt from all ad valorem property | 381 |
taxes and special assessments levied against property by the state | 382 |
or any political subdivision of the state.
Building and | 383 |
construction materials that will be incorporated into a | 384 |
transportation facility pursuant to a public-private agreement are | 385 |
exempt from the taxes imposed under Chapters 5739. and 5741. of | 386 |
the Revised Code. | 387 |
(J) "Revenues" means all nontax revenues coming into the | 446 |
possession of or under the control of the department by virtue of | 447 |
sections 5531.11 to 5531.18 of the Revised Code. "Revenues" does | 448 |
not include proceeds from the sale of obligations but does include | 449 |
tollsuser fees, service revenues, investment income on the Ohio | 450 |
toll fund established in section 5531.14 of the Revised Code, | 451 |
rentals, gifts, and grants. | 452 |
(K) "Service facilities" means service stations, restaurants, | 453 |
and other facilities for food service, roadside parks and rest | 454 |
areas, parking, camping, tenting, rest, and sleeping facilities, | 455 |
hotels or motels, and all similar and other facilities providing | 456 |
services to the traveling public in connection with the use of a | 457 |
toll project and owned, leased, licensed, or operated by the | 458 |
department
of transportation. | 459 |
(2) New interchanges constructed for economic development | 475 |
purposes connecting an interstate highway or a multi-lane, fully | 476 |
controlled-access highway that was not connected previously with | 477 |
other interstates, state highways and local roads, and any new | 478 |
high occupancy lane or new highways connecting an intermodal | 479 |
facility established, constructed, reconstructed, maintained, | 480 |
repaired, administered, operated, or improved, under the | 481 |
jurisdiction of the department
of transportation andpursuant; | 482 |
(3) Pursuant to sections 5531.11 to 5531.18 of the Revised | 483 |
Code, at a location or locations determined by the director of | 484 |
transportation,
including all bridges, tunnels, overpasses, | 485 |
underpasses, interchanges, entrance plazas, approaches, and those | 486 |
portions of connecting public roads that serve interchanges and | 487 |
are determined by the director to be necessary for the safe | 488 |
merging of traffic between the toll project and those nontolled | 489 |
public roads, toll booths, service facilities, and administration, | 490 |
storage, and other buildings, property, and facilities that the | 491 |
department considers necessary for the operation or policing of | 492 |
the toll project, together with all property and rights that may | 493 |
be acquired by the department for the construction, maintenance, | 494 |
repair, administration, improvement, or operation of the toll | 495 |
project, and includes any sections or extensions of a toll project | 496 |
designated by the department as such for the particular purpose. | 497 |
Nothing in this section shall be construed to permit tolls to be | 498 |
charged on existing nontoll highways; | 499 |
(4) Notwithstanding division (N)(1) of this section, the | 500 |
replacement, improvement, rehabilitation, operation, and | 501 |
maintenance of a bridge or system of bridges at one location that | 502 |
carries two interstate highways over the Ohio river to another | 503 |
state, and the replacement, improvement, rehabilitation, | 504 |
operation, and maintenance of the roadways that provide ingress to | 505 |
and egress from such a bridge or system of bridges, generally | 506 |
following the route of those interstate highways. | 507 |
(P) "TollsUser fee" means tollsa rate, special fees or | 513 |
permit feestoll, fee, or other
charges by the department to the | 514 |
owners, lessors, lessees, operators of motor vehicles, or other | 515 |
users ofcharge imposed by a toll project
for the operation or | 516 |
use of or the right to operate onoperator for use of all or part | 517 |
of a transportation facility, including a toll project.
"User fee" | 518 |
also includes any such rate, toll, fee, or other charge imposed by | 519 |
a toll project operator pursuant to a public-private agreement | 520 |
authorized by sections 5501.70 to 5501.83 of the Revised Code. | 521 |
Sec. 5531.12. (A) In order to remove present and anticipated | 522 |
handicaps and potential hazards on the highways in this state, to | 523 |
facilitate vehicular traffic throughout the state, to promote the | 524 |
agricultural, commercial, recreational, tourism, and industrial | 525 |
development of the state, and to provide for the general welfare | 526 |
of its citizens, the director of transportation may approve toll | 527 |
projects. Any revenue derived from toll projects shall be used | 528 |
only for purposes of the toll project, including a toll project or | 529 |
any aspect of a toll project pursuant to a public-private | 530 |
agreement authorized by sections 5501.70 to 5501.83 of the Revised | 531 |
Code, and shall not be expended for any purpose other than as | 532 |
provided in Section 5a of Article XII, Ohio Constitution. The toll | 533 |
projects authorized by sections 5531.11 to 5531.18 of the Revised | 534 |
Code are part of the state highway system. | 535 |
(B) Any toll project shall be developed and submitted for | 536 |
selection in accordance with the policies and procedures of the | 537 |
major new capacity selection process of the transportation review | 538 |
advisory council, created under Chapter 5512. of the Revised Code. | 539 |
Each toll project may be separately designated, by name or number, | 540 |
and may be constructed, improved, or reconstructed as the | 541 |
department of transportation may from time to time determine | 542 |
pursuant to sections 5531.11 to 5531.18 of the Revised Code. A | 543 |
toll project shall be considered a state infrastructure project as | 544 |
defined in section 5531.10 of the Revised Code for all purposes of | 545 |
that section and section 5531.09 of the Revised Code and also is a | 546 |
transportation facility as defined in section 5501.01 of the | 547 |
Revised Code. | 548 |
Sec. 5531.13. (A) The director of transportation may acquire | 554 |
or dispose of any public or private property or interests therein | 555 |
that the director determines to be necessary, convenient, or | 556 |
proper for the construction, improvement, repair, maintenance, | 557 |
administration, or operation of toll projects in the same manner | 558 |
as the director may acquire or dispose of such property for | 559 |
transportation facilities or highway purposes, under sections | 560 |
5501.311 to 5501.34 and 5501.45 and Chapter 5519. of the Revised | 561 |
Code. | 562 |
(B) The director may enter into any contracts the director | 563 |
determines to be necessary, convenient, or proper for the | 564 |
construction, improvement, repair, maintenance, administration, or | 565 |
operation of toll projects in the manner provided in Chapter 5525. | 566 |
of the Revised Code or pursuant to a public-private agreement | 567 |
under sections 5501.70 to 5501.83 of the Revised Code. | 568 |
(C) The director may enter into any professional contracts | 569 |
the director determines to be necessary, convenient, or proper for | 570 |
the construction, improvement, repair, maintenance, | 571 |
administration, or operation of toll projects in the manner | 572 |
provided in Chapter 5526. of the Revised Code or pursuant to a | 573 |
public-private agreement under sections 5501.70 to 5501.83 of the | 574 |
Revised Code. | 575 |
Sec. 5531.14. (A) To the extent permitted by federal law, | 582 |
the director of transportation may fix, revise, charge, and | 583 |
collect tollsuser fees for each toll project, and contract with | 584 |
any person or governmental agency desiring the use of any part | 585 |
thereof, including the right-of-way adjoining the paved portion, | 586 |
for placing thereon telephone, electric light, or power lines, | 587 |
service facilities, or for any other purpose, and fix the terms, | 588 |
conditions, rents, and rates of charge for such use; provided, | 589 |
that no tolluser fee, charge, or rental may be made for placing | 590 |
in, on, along, over, or under the toll project, equipment or | 591 |
public utility facilities that are necessary to serve service | 592 |
facilities or to interconnect any public utility facilities. | 593 |
A toll project operator shall display signs that identify the | 594 |
applicable user fees, including fees for motor vehicles that do | 595 |
not have an active, functioning electronic toll collection device | 596 |
registered for and in use in the vehicle. The toll project | 597 |
operator shall erect or otherwise display signs in advance of the | 598 |
toll project at locations that are of distances that are | 599 |
sufficient to notify motor vehicle operators of the opportunity to | 600 |
exit the street or highway on which they are traveling before the | 601 |
street or highway becomes, becomes part of, or otherwise leads to | 602 |
the toll project and for the use of which user fees apply. | 603 |
(B) In accordance with Chapter 119. of the Revised Code, the | 604 |
director shall establish a plan, schedule, or system of tollsuser | 605 |
fees or charges and shall declare the purpose, amount, and | 606 |
duration of the
tollsuser fees or charges. Any proposal to | 607 |
implement a tolluser fee or other charge under this section may | 608 |
include a plan, schedule, or system of tolls or charges that is | 609 |
subject to adjustment by the director within and in accordance | 610 |
with that plan, schedule, or system. As part of the plan, | 611 |
schedule, or system, the director shall develop a written process | 612 |
for setting user fee rates. In developing the process, the | 613 |
director shall seek and consider public comment. In doing so, the | 614 |
director shall hold at least one public hearing within fifty miles | 615 |
of the location of the toll project for which the written process | 616 |
is developed. | 617 |
(C) One or more user fees, or a portion of any user fees, may | 633 |
be pledged to the repayment of obligations issued for the purpose | 634 |
of financing the toll project and shall be a pledged receipt for | 635 |
those obligations to the extent pledged in the proceedings | 636 |
authorizing such obligations. One or more user fees, or a portion | 637 |
of any user fees, also may be pledged to the repayment of | 638 |
obligations under any public-private agreement or related | 639 |
financing as provided in sections 5501.70 to 5501.83 of the | 640 |
Revised Code. | 641 |
(E) Except as provided in division (F) of this section, money | 657 |
received from
tolls imposed under this sectionuser fees, other | 658 |
than those received pursuant to a public-private agreement, which | 659 |
shall be deposited in accordance with such agreement and shall be | 660 |
used for the exclusive benefit of such toll project, shall be | 661 |
deposited to the credit of the Ohio toll fund, which is hereby | 662 |
created in the state treasury. The treasurer of state may | 663 |
establish separate subaccounts within the Ohio toll fund as | 664 |
determined to be necessary or convenient to pay costs of | 665 |
constructing, improving, repairing, maintaining, administering, | 666 |
and operating toll projects within the state highway system. Any | 667 |
remaining money deposited into the Ohio toll fund shall be used at | 668 |
the discretion of the director to support construction, | 669 |
improvement, repair, maintenance, administration, and operation | 670 |
costs for approved toll projects and highway projects within one | 671 |
mile of a toll project. All investment earnings of the fund shall | 672 |
be credited to the fund. | 673 |
(F) The issuing authority shallof obligations issued for the | 674 |
purpose of financing the toll project, by the fifteenth day of | 675 |
July of each fiscal year, shall certify or cause to be certified | 676 |
to the department of transportation and the office of budget and | 677 |
management the total amount of money required during the current | 678 |
fiscal year to meet in full all bonddebt service charges and | 679 |
otherwise comply with the requirements of any applicable bond | 680 |
proceedings and all obligations under any public-private agreement | 681 |
relating to a toll project as provided in sections 5501.70 to | 682 |
5501.83 of the Revised Code. The issuing authority shall make or | 683 |
cause to be made supplemental certifications to the department of | 684 |
transportation and the office of budget and management for each | 685 |
bond service payment date and at such other times during each | 686 |
fiscal year as may be provided in the applicable bond proceedings | 687 |
proceeding or public-private agreement or required by that | 688 |
department or office. Bond service charges, costs of credit | 689 |
enhancement facilities, other financing costs, and any other | 690 |
amounts required under the applicable bond proceedings and all | 691 |
amounts required under any applicable public-private agreement | 692 |
shall be set forth separately in each certification. Money | 693 |
received from tollsuser fees and other pledged receipts shall be | 694 |
deposited to the credit of the bond service fund at such times and | 695 |
in such amounts as are necessary to satisfy all those payment | 696 |
requirements of the applicable bond proceedings. When allor to | 697 |
the credit of any fund established for such purpose under any | 698 |
public-private agreement. At such time that bond service charges | 699 |
on all outstanding bonds issued in connection with any toll | 700 |
project and the interest on the bonds have been paid, or a | 701 |
sufficient amount for the payment of all such bonds and the | 702 |
interest on the bonds to the maturity of the bonds has been set | 703 |
aside in trust for the benefit of the bondholders, as provided in | 704 |
the applicable bond proceedings, and at such time as all amounts | 705 |
due and to become due pursuant to a public-private agreement, | 706 |
which are payable from user fees, have been paid, the project | 707 |
shall be operated, improved, and maintained by the department of | 708 |
transportation as a part of the state highway system and shall be | 709 |
free of tollsuser fees. | 710 |
(B)(1) If a motor vehicle uses a toll project and the user | 719 |
fee is not paid through an electronic toll collection device or | 720 |
otherwise, the toll project operator first shall use the | 721 |
electronic-monitoring system for the toll project to determine if | 722 |
the registered owner of the motor vehicle has established an | 723 |
account for the payment of the user fee. If such an account has | 724 |
been established, the toll project operator shall charge the | 725 |
account holder the appropriate user fee. If the toll project | 726 |
operator cannot locate an established account, or if the toll | 727 |
project operator locates an established account but the account | 728 |
cannot be charged the appropriate user fee, the toll project | 729 |
operator may send by regular first class mail an invoice for the | 730 |
unpaid user fee. The toll project operator shall include with the | 731 |
invoice the information described in section 5531.143 of the | 732 |
Revised Code. The toll project operator shall send the invoice to | 733 |
the registered owner of the motor vehicle as shown in the records | 734 |
of either of the following: | 735 |
(3) If the registered owner is a motor vehicle leasing dealer | 758 |
or a motor vehicle renting dealer, notify the toll project | 759 |
operator within thirty-five days after the date of mailing of the | 760 |
invoice or late notice of the name and address of the person who | 761 |
was the lessee or renter of the motor vehicle at the time the user | 762 |
fee was incurred. A motor vehicle leasing dealer or a motor | 763 |
vehicle renting dealer that receives an invoice or late notice | 764 |
shall not pay a user fee or any administrative fee and | 765 |
subsequently attempt to collect a fee or assess the lessee or | 766 |
renter a charge in excess of the amount actually paid on behalf of | 767 |
the lessee or renter. | 768 |
(B) Upon receipt of the name and address of the lessee or | 769 |
renter of a motor vehicle provided by a motor vehicle leasing | 770 |
dealer or motor vehicle renting dealer under division (A)(3) of | 771 |
this section, the toll project operator shall send an invoice to | 772 |
the lessee or renter of the motor vehicle as described in section | 773 |
5531.141 of the Revised Code. The toll project operator shall send | 774 |
all subsequent late notices for the unpaid user fees to the lessee | 775 |
or renter, and the motor vehicle renting or leasing dealer has no | 776 |
further liability for unpaid user fees or administrative fees | 777 |
under this chapter. | 778 |
(C) If a registered owner fails to pay or contest an invoice | 779 |
within thirty-five days after the date of mailing of the invoice, | 780 |
the toll project operator may send to the registered owner by | 781 |
regular first class mail a late notice containing the information | 782 |
described in section 5531.143 of the Revised Code. The toll | 783 |
project operator may charge an administrative fee for each late | 784 |
notice, the purpose of which is to enable the toll project | 785 |
operator to recover the expenses of collecting the unpaid user | 786 |
fee. The director of transportation shall establish the amount of | 787 |
the administrative fee by rule. | 788 |
(B)(1) If the registered owner, in response to an invoice | 810 |
mailed to the registered owner under section 5531.141 of the | 811 |
Revised Code or a late notice mailed under section 5531.142 of the | 812 |
Revised Code, submits a notice to contest liability for the user | 813 |
fee or any administrative fee, the toll project operator shall | 814 |
schedule a hearing at which the registered owner may contest | 815 |
liability for the user fee or administrative fee. The toll project | 816 |
operator shall send written notice by regular first class mail to | 817 |
the registered owner listing the time and date of the hearing. A | 818 |
hearing officer of the toll project operator shall preside over | 819 |
the hearing and shall hold the hearing not later than thirty-five | 820 |
days after the date of mailing of the hearing notice. The hearing | 821 |
officer shall conduct the hearing at a location within the county | 822 |
in which the toll project is located. The registered owner may | 823 |
present evidence at the hearing as to the reasons why the | 824 |
registered owner is not liable for payment of the user fee or | 825 |
administrative fee. | 826 |
(3) If the hearing officer finds that the registered owner is | 834 |
liable for payment of the user fee or any administrative fee, the | 835 |
hearing officer shall enter that finding into the records of the | 836 |
toll project operator. If payment in full is not made upon | 837 |
completion of the hearing, the hearing officer shall notify the | 838 |
registrar of motor vehicles of the hearing officer's decision that | 839 |
the registered owner is liable for payment of the user fee or any | 840 |
administrative fee. The hearing officer also shall include with | 841 |
the notification to the registrar a motor vehicle certificate of | 842 |
registration issuance prevention order. The hearing officer shall | 843 |
give the registered owner a copy of the order. The order remains | 844 |
in effect until the toll project operator notifies the registrar | 845 |
that all unpaid user fees and administrative fees have been paid | 846 |
in full. | 847 |
If the hearing officer finds that the registered owner is | 848 |
liable for payment of the user fee or any administrative fee and | 849 |
the registered owner resides in another state, the hearing officer | 850 |
shall send notice of the hearing officer's decision to the | 851 |
department, division, bureau, office, or other unit of government | 852 |
that is functionally equivalent to the bureau of motor vehicles. | 853 |
The hearing officer shall include with the notice the registration | 854 |
prevention order, which shall have the same effect in another | 855 |
state or jurisdiction as in this state. | 856 |
(4) If the registered owner does not pay all unpaid user fees | 857 |
and administrative fees within thirty-five days after the date of | 858 |
the hearing officer's decision that the registered owner is liable | 859 |
for payment of such fees, and the registered owner does not file | 860 |
an appeal described in division (C) of this section within that | 861 |
same thirty-five-day time period, the toll project operator may | 862 |
file a civil suit against the registered owner in the municipal | 863 |
court or county court having jurisdiction over the location of the | 864 |
toll project as provided in section 5531.146 of the Revised Code. | 865 |
(C)(1) The registered owner may appeal an adverse finding by | 866 |
the hearing officer to the municipal court or county court having | 867 |
jurisdiction over the location of the toll project within | 868 |
thirty-five days after the date of the hearing officer's decision | 869 |
that the registered owner is liable for payment of such fees. If | 870 |
the registered owner fails to file an appeal with the municipal | 871 |
court or county court within that time period, the registered | 872 |
owner is considered to have waived the registered owner's right to | 873 |
appeal the decision of the hearing officer. After that time period | 874 |
has expired, the toll project operator may file a civil suit | 875 |
against the registered owner in the municipal court or county | 876 |
court having jurisdiction over the location of the toll project as | 877 |
provided in section 5531.146 of the Revised Code. | 878 |
(2) At the appeal hearing, the municipal court or county | 885 |
court shall determine whether the registered owner is liable for | 886 |
the payment of any user fee or administrative fee. If the court | 887 |
finds that the registered owner is not liable for payment of the | 888 |
user fee or administrative fee, the court shall issue a ruling to | 889 |
that effect and cancel the invoice. The toll project operator | 890 |
immediately shall inform the registrar of the ruling and shall | 891 |
direct the registrar to cancel the motor vehicle certificate of | 892 |
registration issuance prevention order issued under division | 893 |
(B)(3) of this section. | 894 |
If the court finds that the registered owner is liable for | 895 |
payment of the user fee or any administrative fee, the court shall | 896 |
issue a ruling to that effect. If the court issues such a ruling | 897 |
and payment in full is not made to the toll project operator upon | 898 |
completion of the appeal hearing, the toll project operator shall | 899 |
inform the registrar of motor vehicles of the ruling and the | 900 |
failure by the registered owner to make payment in full. In that | 901 |
circumstance, the stay of the motor vehicle certificate of | 902 |
registration issuance prevention order described in division | 903 |
(C)(1) of this section terminates and the order becomes effective. | 904 |
In addition, if the registered owner fails to pay in full the user | 905 |
fee and any administrative fee within thirty-five days after the | 906 |
date the court issues the ruling, the toll project operator may | 907 |
file a civil suit against the registered owner in the municipal | 908 |
court or county court having jurisdiction over the location of the | 909 |
toll project as provided in section 5531.146 of the Revised Code. | 910 |
(D) If the registered owner fails to pay an invoice and any | 919 |
administrative fee and fails to submit a notice to contest | 920 |
liability for any of those fees within thirty-five days after the | 921 |
date of mailing of the invoice, the toll project operator may send | 922 |
a late notice to the registered owner as provided in division (C) | 923 |
of section 5531.142 of the Revised Code. If, in response to the | 924 |
late notice, the registered owner submits a notice to contest | 925 |
liability for the user fee and any administrative fee within | 926 |
thirty-five days after the date of mailing of the late notice, the | 927 |
toll project operator shall schedule and hold a hearing as | 928 |
described in division (B)(1) of this section. Divisions (B)(2), | 929 |
(3), and (4) and (C)(1) and (2) of this section apply to such a | 930 |
hearing. | 931 |
(1) Issue a motor vehicle certificate of registration | 939 |
issuance prevention order to the registrar of motor vehicles and | 940 |
send a copy of the order to the registered owner. If the | 941 |
registered owner resides in another state or jurisdiction, the | 942 |
toll project operator shall send the order to the department, | 943 |
division, bureau, office, or other unit of government that is | 944 |
functionally equivalent to the bureau of motor vehicles. The order | 945 |
shall have the same effect in another state or jurisdiction as in | 946 |
this state. | 947 |
(B) If the toll project operator sends a motor vehicle | 952 |
certificate of registration issuance prevention order to the | 953 |
registrar under division (A)(1) of this section, the registered | 954 |
owner may file a request for a hearing in the municipal court or | 955 |
county having jurisdiction over the location of the toll project | 956 |
within thirty-five days after the date the toll project operator | 957 |
sends the order to the registrar. The order shall remain in effect | 958 |
pending the results of the hearing in the municipal court or | 959 |
county court. If the registered owner fails to file an appeal with | 960 |
the municipal court or county court within that thirty-five-day | 961 |
period, the registered owner is considered to have waived the | 962 |
registered owner's right to appeal the issuance of the motor | 963 |
vehicle certificate of registration issuance prevention order. The | 964 |
toll project operator may file a civil suit against the registered | 965 |
owner in the municipal court or county court having jurisdiction | 966 |
over the location of the toll project as provided in section | 967 |
5531.146 of the Revised Code. | 968 |
(C)(1) If an appeal hearing is requested under division (B) | 969 |
of this section, the municipal court or county court shall | 970 |
determine whether the registered owner is liable for the payment | 971 |
of any user fee or administrative fee and whether the issuance by | 972 |
the toll project operator of the motor vehicle certificate of | 973 |
registration issuance prevention order was valid. If the court | 974 |
finds that the registered owner is not liable for payment of the | 975 |
user fee or administrative fee, the court shall issue a ruling to | 976 |
that effect and dismiss the late notice. The toll project operator | 977 |
immediately shall inform the registrar of the ruling and shall | 978 |
direct the registrar to cancel the motor vehicle certificate of | 979 |
registration issuance prevention order issued under division | 980 |
(A)(1) of this section. | 981 |
(2) If the court finds that the registered owner is liable | 982 |
for payment of the user fee or any administrative fee and that the | 983 |
issuance by the toll project operator of the motor vehicle | 984 |
certificate of registration issuance prevention order was valid, | 985 |
the court shall issue a ruling to that effect. If the court issues | 986 |
such a ruling and payment in full is not made to the toll project | 987 |
operator upon completion of the appeal hearing, the toll project | 988 |
operator shall inform the registrar of motor vehicles of the | 989 |
ruling and the failure by the registered owner to make payment in | 990 |
full, and the motor vehicle certificate of registration issuance | 991 |
prevention order issued under division (A)(1) of this section | 992 |
remains in effect. | 993 |
(3) If the court finds that the registered owner is liable | 994 |
for payment of the user fee or any administrative fee but the | 995 |
issuance by the toll project operator of the motor vehicle | 996 |
certificate of registration issuance prevention order was not | 997 |
valid, the court shall issue a ruling to that effect. If the court | 998 |
issues such a ruling, the toll project operator shall inform the | 999 |
registrar of the ruling and direct the registrar to cancel the | 1000 |
motor vehicle certificate of registration issuance prevention | 1001 |
order. The registered owner remains liable for payment of the user | 1002 |
fee or any administrative fee. The toll project operator may | 1003 |
reissue the motor vehicle certificate of registration issuance | 1004 |
prevention order. If the toll project operator reissues the order, | 1005 |
the registered owner may appeal the order as provided in division | 1006 |
(B) of this section. | 1007 |
(5) If the court rules under division (C)(2) or (3) of this | 1016 |
section that the registered owner is liable for payment of the | 1017 |
user fee or any administrative fee, and the registered owner does | 1018 |
not pay all such fees within thirty-five days after the court | 1019 |
issues the ruling, the toll project operator may file a civil suit | 1020 |
against the registered owner in the municipal court or county | 1021 |
court having jurisdiction over the location of the toll project as | 1022 |
provided in section 5531.146 of the Revised Code. | 1023 |
(3) The clerk of the municipal court or county court shall | 1050 |
execute a summons regarding a suit filed under division (A)(1) of | 1051 |
this section by sending a copy of the summons in accordance with | 1052 |
the rules of civil procedure to the address of the registered | 1053 |
owner of the vehicle as shown in the records of the bureau of | 1054 |
motor vehicles, as identified and provided by a motor vehicle | 1055 |
leasing dealer or motor vehicle renting dealer, or as shown in the | 1056 |
records of the department, division, bureau, office, or other unit | 1057 |
of government of any other state or jurisdiction that is | 1058 |
functionally equivalent to the bureau of motor vehicles. The | 1059 |
issuance of such a summons constitutes sufficient notice to the | 1060 |
registered owner. | 1061 |
The summons shall compel the appearance of the registered | 1062 |
owner to appear in the municipal court or county court, and shall | 1063 |
include notice of the time and place of the trial as well as the | 1064 |
potential civil penalty and any associated costs. The summons also | 1065 |
shall include a statement that the registered owner's motor | 1066 |
vehicle utilized a toll project and therefore the registered owner | 1067 |
incurred liability for payment of the applicable user fee as | 1068 |
provided in division (A) of section 5531.144 of the Revised Code | 1069 |
and also shall list the Revised Code citation for that section. | 1070 |
The summons constitutes sufficient notice to the registered owner | 1071 |
that the vehicle was used on a toll project and, as a result, the | 1072 |
registered owner is liable for payment of the user fee. | 1073 |
(D) The toll project operator may offer to the registered | 1106 |
owner the option to pay the unpaid user fee and any administrative | 1107 |
fee, as specified in the summons, plus a reduced civil penalty, | 1108 |
provided that the registered owner actually pays to the toll | 1109 |
project operator the entire amount so calculated not less than | 1110 |
fourteen days prior to the scheduled trial date. The toll project | 1111 |
operator shall establish a schedule for reduced civil penalties | 1112 |
that are offered to registered owners pursuant to this division, | 1113 |
and the toll project operator shall adhere to the schedule when | 1114 |
making such offers. The toll project operator may revise the | 1115 |
schedule from time to time as the toll project operator determines | 1116 |
necessary. | 1117 |
(F)(1) Upon a finding by a court that the registered owner is | 1154 |
liable for payment of a user fee as provided in division (A) of | 1155 |
section 5531.144 of the Revised Code, the court shall issue a | 1156 |
motor vehicle certificate of registration issuance prevention | 1157 |
order. The order shall remain in effect until the court has | 1158 |
notified the registrar that all unpaid user fees, administrative | 1159 |
fees, and civil penalties have been paid in full and the court has | 1160 |
issued a new order rescinding its previous order. The registrar | 1161 |
and all deputy registrars shall comply with the order. | 1162 |
(2) If the registered owner resides in another state or | 1163 |
jurisdiction, the court shall issue a motor vehicle certificate of | 1164 |
registration issuance prevention order and send a copy of the | 1165 |
order to the department, division, bureau, office, or other unit | 1166 |
of government of another state or jurisdiction that is | 1167 |
functionally equivalent to the bureau of motor vehicles for | 1168 |
enforcement in that other state or jurisdiction. The order shall | 1169 |
have the same effect in another state or jurisdiction as in this | 1170 |
state. | 1171 |
(B) The registered owner has timely submitted a notice to | 1186 |
contest liability for a user fee or any administrative fee to the | 1187 |
toll project operator. The toll project operator may initiate | 1188 |
collection procedures that are regulated by federal law against | 1189 |
such a registered owner if, at the hearing conducted by the | 1190 |
hearing officer described in section 5533.144 of the Revised Code, | 1191 |
the hearing officer finds that the registered owner is liable for | 1192 |
payment of the user fee or administrative fee at issue and the | 1193 |
registered owner does not pay the fee at issue in full within | 1194 |
thirty-five days after the hearing officer makes the finding. | 1195 |
(C) The registered owner has filed a request for an appeal | 1196 |
hearing with the municipal court or county court having | 1197 |
jurisdiction over the location of the toll project. The toll | 1198 |
project operator may initiate collection procedures that are | 1199 |
regulated by federal law against such a registered owner if, at | 1200 |
the appeal hearing conducted by the municipal court or county | 1201 |
court described in section 5533.144 of the Revised Code, the court | 1202 |
finds that the registered owner is liable for payment of the user | 1203 |
fee or administrative fee at issue and the registered owner does | 1204 |
not pay the fee at issue in full within thirty-five days after the | 1205 |
court issues a ruling to that effect. | 1206 |
(B)(1) A toll project operator shall ensure that information | 1217 |
collected by an electronic toll collection device, an | 1218 |
electronic-monitoring system in conjunction with an electronic | 1219 |
toll collection system, or under division (A) of this section is | 1220 |
limited solely to that information that is necessary for the | 1221 |
collection of unpaid user fees and administrative fees; necessary | 1222 |
to establish liability of the registered owner of a motor vehicle | 1223 |
for payment of a user fee as provided in division (A) of section | 1224 |
5531.144 of the Revised Code; or necessary in any proceeding to | 1225 |
establish or confirm such liability. | 1226 |
(4)(a) Except as otherwise provided in this section, a toll | 1258 |
project operator shall not retain any images or other data | 1259 |
collected by an electronic toll collection device, an | 1260 |
electronic-monitoring system, or under division (A) of this | 1261 |
section and shall purge, write over, or otherwise eliminate, from | 1262 |
existence the images or other data not later than one hundred | 1263 |
eighty days after the collection of any unpaid user fees or | 1264 |
administrative fees. Upon request from the director of | 1265 |
transportation, any entity operating an electronic toll collection | 1266 |
system or electronic-monitoring system in conjunction with an | 1267 |
electronic toll collection system shall certify compliance with | 1268 |
this section and, upon request, shall make all records pertaining | 1269 |
to such system available for inspection and audit by the director | 1270 |
or the director's designee. | 1271 |
Sec. 5531.149. (A) A toll project operator shall compensate | 1281 |
the bureau of motor vehicles for its actions in enforcing sections | 1282 |
5531.11 to 5531.18 of the Revised Code with respect to the | 1283 |
registered owner of a motor vehicle that is titled or registered | 1284 |
in this state. The toll project operator shall provide such | 1285 |
compensation by collecting and paying to the bureau, on a monthly | 1286 |
basis, an administrative fee of five dollars for each certificate | 1287 |
of registration issuance prevention order sent to and processed by | 1288 |
the bureau under sections 5531.11 to 5531.18 of the Revised Code. | 1289 |
The bureau shall deposit all money it collects under this division | 1290 |
in the state treasury to the credit of the state bureau of motor | 1291 |
vehicles fund created in section 4501.25 of the Revised Code. | 1292 |
(B) The director of transportation may enter into an | 1293 |
agreement with the department, division, bureau, office, or other | 1294 |
unit of government of any other state or jurisdiction that is | 1295 |
functionally equivalent to the department of transportation or the | 1296 |
bureau of motor vehicles for the purpose of enforcing sections | 1297 |
5531.11 to 5531.18 of the Revised Code with respect to the | 1298 |
registered owner of a motor vehicle that is titled or registered | 1299 |
in such other state or jurisdiction and utilizes a toll project. | 1300 |
The agreement may provide for the denial in such other state or | 1301 |
jurisdiction of the issuance of a new or renewal motor vehicle | 1302 |
certificate of registration in the name of that person and the | 1303 |
denial of any motor vehicle certificate of registration for the | 1304 |
motor vehicle that utilized a toll project for which the required | 1305 |
user fee or associated administrative fee was not paid by the | 1306 |
registered owner. | 1307 |
Sec. 5531.15. (A) The director of transportation, in | 1308 |
accordance with Chapter 119. of the Revised Code, may adopt such | 1309 |
rules as the director considers advisable for the control and | 1310 |
regulation of traffic on any toll project, for the protection and | 1311 |
preservation of property under the jurisdiction and control of the | 1312 |
department of transportation, for the maintenance and preservation | 1313 |
of good order within the property under its control, and for the | 1314 |
purpose of establishing owner or operator liability for failure to | 1315 |
comply with toll collection rules. | 1316 |
Sec. 5531.16. (A) Each toll project shall be maintained and | 1339 |
kept in good condition and repair by the department of | 1340 |
transportation or in accordance with the terms of a public-private | 1341 |
agreement pursuant to sections 5501.70 to 5501.83 of the Revised | 1342 |
Code. Toll projects shall be operated by toll collectors and other | 1343 |
employees and agents that the department employs or contracts for. | 1344 |
Toll projects shall be policed by the state highway patrol in | 1345 |
accordance with section 5503.02 of the Revised Code; provided, | 1346 |
that the state highway patrol also shall enforce all rules of the | 1347 |
department adopted under division (A) of section 5531.15 of the | 1348 |
Revised Code that relate to the operation and use of vehicles on a | 1349 |
toll project and that are punishable under division (A) of section | 1350 |
5531.99 of the Revised Code. | 1351 |
(C) All governmental agencies may lease, lend, grant, or | 1357 |
convey to the department of transportation at its request, upon | 1358 |
terms that the proper authorities of the governmental agencies | 1359 |
consider reasonable and fair and without the necessity for an | 1360 |
advertisement, order of court, or other action or formality, other | 1361 |
than the regular and formal action of the authorities concerned, | 1362 |
any property that is necessary or convenient to the effectuation | 1363 |
of the purposes of sections 5531.11 to 5531.18 of the Revised | 1364 |
Code, including public roads and other property already devoted to | 1365 |
public use. | 1366 |
Sec. 5739.02. For the purpose of providing revenue with | 1374 |
which to meet the needs of the state, for the use of the general | 1375 |
revenue fund of the state, for the purpose of securing a thorough | 1376 |
and efficient system of common schools throughout the state, for | 1377 |
the purpose of affording revenues, in addition to those from | 1378 |
general property taxes, permitted under constitutional | 1379 |
limitations, and from other sources, for the support of local | 1380 |
governmental functions, and for the purpose of reimbursing the | 1381 |
state for the expense of administering this chapter, an excise tax | 1382 |
is hereby levied on each retail sale made in this state. | 1383 |
(2) In the case of the lease or rental, with a fixed term of | 1389 |
more than thirty days or an indefinite term with a minimum period | 1390 |
of more than thirty days, of any motor vehicles designed by the | 1391 |
manufacturer to carry a load of not more than one ton, watercraft, | 1392 |
outboard motor, or aircraft, or of any tangible personal property, | 1393 |
other than motor vehicles designed by the manufacturer to carry a | 1394 |
load of more than one ton, to be used by the lessee or renter | 1395 |
primarily for business purposes, the tax shall be collected by the | 1396 |
vendor at the time the lease or rental is consummated and shall be | 1397 |
calculated by the vendor on the basis of the total amount to be | 1398 |
paid by the lessee or renter under the lease agreement. If the | 1399 |
total amount of the consideration for the lease or rental includes | 1400 |
amounts that are not calculated at the time the lease or rental is | 1401 |
executed, the tax shall be calculated and collected by the vendor | 1402 |
at the time such amounts are billed to the lessee or renter. In | 1403 |
the case of an open-end lease or rental, the tax shall be | 1404 |
calculated by the vendor on the basis of the total amount to be | 1405 |
paid during the initial fixed term of the lease or rental, and for | 1406 |
each subsequent renewal period as it comes due. As used in this | 1407 |
division, "motor vehicle" has the same meaning as in section | 1408 |
4501.01 of the Revised Code, and "watercraft" includes an outdrive | 1409 |
unit attached to the watercraft. | 1410 |
A lease with a renewal clause and a termination penalty or | 1411 |
similar provision that applies if the renewal clause is not | 1412 |
exercised is presumed to be a sham transaction. In such a case, | 1413 |
the tax shall be calculated and paid on the basis of the entire | 1414 |
length of the lease period, including any renewal periods, until | 1415 |
the termination penalty or similar provision no longer applies. | 1416 |
The taxpayer shall bear the burden, by a preponderance of the | 1417 |
evidence, that the transaction or series of transactions is not a | 1418 |
sham transaction. | 1419 |
(6) Sales of motor fuel upon receipt, use, distribution, or | 1445 |
sale of which in this state a tax is imposed by the law of this | 1446 |
state, but this exemption shall not apply to the sale of motor | 1447 |
fuel on which a refund of the tax is allowable under division (A) | 1448 |
of section 5735.14 of the Revised Code; and the tax commissioner | 1449 |
may deduct the amount of tax levied by this section applicable to | 1450 |
the price of motor fuel when granting a refund of motor fuel tax | 1451 |
pursuant to division (A) of section 5735.14 of the Revised Code | 1452 |
and shall cause the amount deducted to be paid into the general | 1453 |
revenue fund of this state; | 1454 |
(9)(a) Sales of services or tangible personal property, other | 1468 |
than motor vehicles, mobile homes, and manufactured homes, by | 1469 |
churches, organizations exempt from taxation under section | 1470 |
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit | 1471 |
organizations operated exclusively for charitable purposes as | 1472 |
defined in division (B)(12) of this section, provided that the | 1473 |
number of days on which such tangible personal property or | 1474 |
services, other than items never subject to the tax, are sold does | 1475 |
not exceed six in any calendar year, except as otherwise provided | 1476 |
in division (B)(9)(b) of this section. If the number of days on | 1477 |
which such sales are made exceeds six in any calendar year, the | 1478 |
church or organization shall be considered to be engaged in | 1479 |
business and all subsequent sales by it shall be subject to the | 1480 |
tax. In counting the number of days, all sales by groups within a | 1481 |
church or within an organization shall be considered to be sales | 1482 |
of that church or organization. | 1483 |
(12) Sales of tangible personal property or services to | 1501 |
churches, to organizations exempt from taxation under section | 1502 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other | 1503 |
nonprofit organizations operated exclusively for charitable | 1504 |
purposes in this state, no part of the net income of which inures | 1505 |
to the benefit of any private shareholder or individual, and no | 1506 |
substantial part of the activities of which consists of carrying | 1507 |
on propaganda or otherwise attempting to influence legislation; | 1508 |
sales to offices administering one or more homes for the aged or | 1509 |
one or more hospital facilities exempt under section 140.08 of the | 1510 |
Revised Code; and sales to organizations described in division (D) | 1511 |
of section 5709.12 of the Revised Code. | 1512 |
"Charitable purposes" means the relief of poverty; the | 1513 |
improvement of health through the alleviation of illness, disease, | 1514 |
or injury; the operation of an organization exclusively for the | 1515 |
provision of professional, laundry, printing, and purchasing | 1516 |
services to hospitals or charitable institutions; the operation of | 1517 |
a home for the aged, as defined in section 5701.13 of the Revised | 1518 |
Code; the operation of a radio or television broadcasting station | 1519 |
that is licensed by the federal communications commission as a | 1520 |
noncommercial educational radio or television station; the | 1521 |
operation of a nonprofit animal adoption service or a county | 1522 |
humane society; the promotion of education by an institution of | 1523 |
learning that maintains a faculty of qualified instructors, | 1524 |
teaches regular continuous courses of study, and confers a | 1525 |
recognized diploma upon completion of a specific curriculum; the | 1526 |
operation of a parent-teacher association, booster group, or | 1527 |
similar organization primarily engaged in the promotion and | 1528 |
support of the curricular or extracurricular activities of a | 1529 |
primary or secondary school; the operation of a community or area | 1530 |
center in which presentations in music, dramatics, the arts, and | 1531 |
related fields are made in order to foster public interest and | 1532 |
education therein; the production of performances in music, | 1533 |
dramatics, and the arts; or the promotion of education by an | 1534 |
organization engaged in carrying on research in, or the | 1535 |
dissemination of, scientific and technological knowledge and | 1536 |
information primarily for the public. | 1537 |
(13) Building and construction materials and services sold to | 1543 |
construction contractors for incorporation into a structure or | 1544 |
improvement to real property under a construction contract with | 1545 |
this state or a political subdivision of this state, or with the | 1546 |
United States government or any of its agencies; building and | 1547 |
construction materials and services sold to construction | 1548 |
contractors for incorporation into a structure or improvement to | 1549 |
real property that are accepted for ownership by this state or any | 1550 |
of its political subdivisions, or by the United States government | 1551 |
or any of its agencies at the time of completion of the structures | 1552 |
or improvements; building and construction materials sold to | 1553 |
construction contractors for incorporation into a horticulture | 1554 |
structure or livestock structure for a person engaged in the | 1555 |
business of horticulture or producing livestock; building | 1556 |
materials and services sold to a construction contractor for | 1557 |
incorporation into a house of public worship or religious | 1558 |
education, or a building used exclusively for charitable purposes | 1559 |
under a construction contract with an organization whose purpose | 1560 |
is as described in division (B)(12) of this section; building | 1561 |
materials and services sold to a construction contractor for | 1562 |
incorporation into a building under a construction contract with | 1563 |
an organization exempt from taxation under section 501(c)(3) of | 1564 |
the Internal Revenue Code of 1986 when the building is to be used | 1565 |
exclusively for the organization's exempt purposes; building and | 1566 |
construction materials sold for incorporation into the original | 1567 |
construction of a sports facility under section 307.696 of the | 1568 |
Revised Code; building and construction materials and services | 1569 |
sold to a construction contractor for incorporation into real | 1570 |
property outside this state if such materials and services, when | 1571 |
sold to a construction contractor in the state in which the real | 1572 |
property is located for incorporation into real property in that | 1573 |
state, would be exempt from a tax on sales levied by that state; | 1574 |
building and construction materials for incorporation into a | 1575 |
transportation facility pursuant to a public-private agreement | 1576 |
entered into under sections 5501.70 to 5501.83 of the Revised | 1577 |
Code; and, until one calendar year after the construction of a | 1578 |
convention center that qualifies for property tax exemption under | 1579 |
section 5709.084 of the Revised Code is completed, building and | 1580 |
construction materials and services sold to a construction | 1581 |
contractor for incorporation into the real property comprising | 1582 |
that convention center; | 1583 |
(15) Sales to persons primarily engaged in any of the | 1588 |
activities mentioned in division (B)(42)(a), (g), or (h) of this | 1589 |
section, to persons engaged in making retail sales, or to persons | 1590 |
who purchase for sale from a manufacturer tangible personal | 1591 |
property that was produced by the manufacturer in accordance with | 1592 |
specific designs provided by the purchaser, of packages, including | 1593 |
material, labels, and parts for packages, and of machinery, | 1594 |
equipment, and material for use primarily in packaging tangible | 1595 |
personal property produced for sale, including any machinery, | 1596 |
equipment, and supplies used to make labels or packages, to | 1597 |
prepare packages or products for labeling, or to label packages or | 1598 |
products, by or on the order of the person doing the packaging, or | 1599 |
sold at retail. "Packages" includes bags, baskets, cartons, | 1600 |
crates, boxes, cans, bottles, bindings, wrappings, and other | 1601 |
similar devices and containers, but does not include motor | 1602 |
vehicles or bulk tanks, trailers, or similar devices attached to | 1603 |
motor vehicles. "Packaging" means placing in a package. Division | 1604 |
(B)(15) of this section does not apply to persons engaged in | 1605 |
highway transportation for hire. | 1606 |
(17) Sales to persons engaged in farming, agriculture, | 1612 |
horticulture, or floriculture, of tangible personal property for | 1613 |
use or consumption primarily in the production by farming, | 1614 |
agriculture, horticulture, or floriculture of other tangible | 1615 |
personal property for use or consumption primarily in the | 1616 |
production of tangible personal property for sale by farming, | 1617 |
agriculture, horticulture, or floriculture; or material and parts | 1618 |
for incorporation into any such tangible personal property for use | 1619 |
or consumption in production; and of tangible personal property | 1620 |
for such use or consumption in the conditioning or holding of | 1621 |
products produced by and for such use, consumption, or sale by | 1622 |
persons engaged in farming, agriculture, horticulture, or | 1623 |
floriculture, except where such property is incorporated into real | 1624 |
property; | 1625 |
(18) Sales of drugs for a human being that may be dispensed | 1626 |
only pursuant to a prescription; insulin as recognized in the | 1627 |
official United States pharmacopoeia; urine and blood testing | 1628 |
materials when used by diabetics or persons with hypoglycemia to | 1629 |
test for glucose or acetone; hypodermic syringes and needles when | 1630 |
used by diabetics for insulin injections; epoetin alfa when | 1631 |
purchased for use in the treatment of persons with medical | 1632 |
disease; hospital beds when purchased by hospitals, nursing homes, | 1633 |
or other medical facilities; and medical oxygen and medical | 1634 |
oxygen-dispensing equipment when purchased by hospitals, nursing | 1635 |
homes, or other medical facilities; | 1636 |
(24) Sales to persons engaged in the preparation of eggs for | 1660 |
sale of tangible personal property used or consumed directly in | 1661 |
such preparation, including such tangible personal property used | 1662 |
for cleaning, sanitizing, preserving, grading, sorting, and | 1663 |
classifying by size; packages, including material and parts for | 1664 |
packages, and machinery, equipment, and material for use in | 1665 |
packaging eggs for sale; and handling and transportation equipment | 1666 |
and parts therefor, except motor vehicles licensed to operate on | 1667 |
public highways, used in intraplant or interplant transfers or | 1668 |
shipment of eggs in the process of preparation for sale, when the | 1669 |
plant or plants within or between which such transfers or | 1670 |
shipments occur are operated by the same person. "Packages" | 1671 |
includes containers, cases, baskets, flats, fillers, filler flats, | 1672 |
cartons, closure materials, labels, and labeling materials, and | 1673 |
"packaging" means placing therein. | 1674 |
(32) The sale, lease, repair, and maintenance of, parts for, | 1705 |
or items attached to or incorporated in, motor vehicles that are | 1706 |
primarily used for transporting tangible personal property | 1707 |
belonging to others by a person engaged in highway transportation | 1708 |
for hire, except for packages and packaging used for the | 1709 |
transportation of tangible personal property; | 1710 |
(34) Sales to a telecommunications service vendor, mobile | 1716 |
telecommunications service vendor, or satellite broadcasting | 1717 |
service vendor of tangible personal property and services used | 1718 |
directly and primarily in transmitting, receiving, switching, or | 1719 |
recording any interactive, one- or two-way electromagnetic | 1720 |
communications, including voice, image, data, and information, | 1721 |
through the use of any medium, including, but not limited to, | 1722 |
poles, wires, cables, switching equipment, computers, and record | 1723 |
storage devices and media, and component parts for the tangible | 1724 |
personal property. The exemption provided in this division shall | 1725 |
be in lieu of all other exemptions under division (B)(42)(a) or | 1726 |
(n) of this section to which the vendor may otherwise be entitled, | 1727 |
based upon the use of the thing purchased in providing the | 1728 |
telecommunications, mobile telecommunications, or satellite | 1729 |
broadcasting service. | 1730 |
For purposes of division (B)(35) of this section, "direct | 1748 |
marketing" means the method of selling where consumers order | 1749 |
tangible personal property by United States mail, delivery | 1750 |
service, or telecommunication and the vendor delivers or ships the | 1751 |
tangible personal property sold to the consumer from a warehouse, | 1752 |
catalogue distribution center, or similar fulfillment facility by | 1753 |
means of the United States mail, delivery service, or common | 1754 |
carrier. | 1755 |
(c) Items of property that are attached to or incorporated in | 1768 |
motor racing vehicles, including engines, chassis, and all other | 1769 |
components of the vehicles, and all spare, replacement, and | 1770 |
rebuilt parts or components of the vehicles; except not including | 1771 |
tires, consumable fluids, paint, and accessories consisting of | 1772 |
instrumentation sensors and related items added to the vehicle to | 1773 |
collect and transmit data by means of telemetry and other forms of | 1774 |
communication. | 1775 |
(40) Sales of tangible personal property and services to a | 1779 |
provider of electricity used or consumed directly and primarily in | 1780 |
generating, transmitting, or distributing electricity for use by | 1781 |
others, including property that is or is to be incorporated into | 1782 |
and will become a part of the consumer's production, transmission, | 1783 |
or distribution system and that retains its classification as | 1784 |
tangible personal property after incorporation; fuel or power used | 1785 |
in the production, transmission, or distribution of electricity; | 1786 |
energy conversion equipment as defined in section 5727.01 of the | 1787 |
Revised Code; and tangible personal property and services used in | 1788 |
the repair and maintenance of the production, transmission, or | 1789 |
distribution system, including only those motor vehicles as are | 1790 |
specially designed and equipped for such use. The exemption | 1791 |
provided in this division shall be in lieu of all other exemptions | 1792 |
in division (B)(42)(a) or (n) of this section to which a provider | 1793 |
of electricity may otherwise be entitled based on the use of the | 1794 |
tangible personal property or service purchased in generating, | 1795 |
transmitting, or distributing electricity. | 1796 |
(a) To incorporate the thing transferred as a material or a | 1803 |
part into tangible personal property to be produced for sale by | 1804 |
manufacturing, assembling, processing, or refining; or to use or | 1805 |
consume the thing transferred directly in producing tangible | 1806 |
personal property for sale by mining, including, without | 1807 |
limitation, the extraction from the earth of all substances that | 1808 |
are classed geologically as minerals, production of crude oil and | 1809 |
natural gas, or directly in the rendition of a public utility | 1810 |
service, except that the sales tax levied by this section shall be | 1811 |
collected upon all meals, drinks, and food for human consumption | 1812 |
sold when transporting persons. Persons engaged in rendering | 1813 |
services in the exploration for, and production of, crude oil and | 1814 |
natural gas for others are deemed engaged directly in the | 1815 |
exploration for, and production of, crude oil and natural gas. | 1816 |
This paragraph does not exempt from "retail sale" or "sales at | 1817 |
retail" the sale of tangible personal property that is to be | 1818 |
incorporated into a structure or improvement to real property. | 1819 |
(h) To use the benefit of a warranty, maintenance or service | 1838 |
contract, or similar agreement, as described in division (B)(7) of | 1839 |
section 5739.01 of the Revised Code, to repair or maintain | 1840 |
tangible personal property, if all of the property that is the | 1841 |
subject of the warranty, contract, or agreement would not be | 1842 |
subject to the tax imposed by this section; | 1843 |
(j) To use or consume the thing transferred primarily in | 1846 |
storing, transporting, mailing, or otherwise handling purchased | 1847 |
sales inventory in a warehouse, distribution center, or similar | 1848 |
facility when the inventory is primarily distributed outside this | 1849 |
state to retail stores of the person who owns or controls the | 1850 |
warehouse, distribution center, or similar facility, to retail | 1851 |
stores of an affiliated group of which that person is a member, or | 1852 |
by means of direct marketing. This division does not apply to | 1853 |
motor vehicles registered for operation on the public highways. As | 1854 |
used in this division, "affiliated group" has the same meaning as | 1855 |
in division (B)(3)(e) of section 5739.01 of the Revised Code and | 1856 |
"direct marketing" has the same meaning as in division (B)(35) of | 1857 |
this section. | 1858 |
(n) To use or consume the thing transferred primarily in | 1873 |
producing tangible personal property for sale by farming, | 1874 |
agriculture, horticulture, or floriculture. Persons engaged in | 1875 |
rendering farming, agriculture, horticulture, or floriculture | 1876 |
services for others are deemed engaged primarily in farming, | 1877 |
agriculture, horticulture, or floriculture. This paragraph does | 1878 |
not exempt from "retail sale" or "sales at retail" the sale of | 1879 |
tangible personal property that is to be incorporated into a | 1880 |
structure or improvement to real property. | 1881 |
(44) Sales of replacement and modification parts for engines, | 1895 |
airframes, instruments, and interiors in, and paint for, aircraft | 1896 |
used primarily in a fractional aircraft ownership program, and | 1897 |
sales of services for the repair, modification, and maintenance of | 1898 |
such aircraft, and machinery, equipment, and supplies primarily | 1899 |
used to provide those services. | 1900 |
(45) Sales of telecommunications service that is used | 1901 |
directly and primarily to perform the functions of a call center. | 1902 |
As used in this division, "call center" means any physical | 1903 |
location where telephone calls are placed or received in high | 1904 |
volume for the purpose of making sales, marketing, customer | 1905 |
service, technical support, or other specialized business | 1906 |
activity, and that employs at least fifty individuals that engage | 1907 |
in call center activities on a full-time basis, or sufficient | 1908 |
individuals to fill fifty full-time equivalent positions. | 1909 |
(ii) "Qualified direct selling entity" means an entity | 1928 |
selling to direct sellers at the time the entity enters into a tax | 1929 |
credit agreement with the tax credit authority pursuant to section | 1930 |
122.17 of the Revised Code, provided that the agreement was | 1931 |
entered into on or after January 1, 2007. Neither contingencies | 1932 |
relevant to the granting of, nor later developments with respect | 1933 |
to, the tax credit shall impair the status of the qualified direct | 1934 |
selling entity under division (B)(48) of this section after | 1935 |
execution of the tax credit agreement by the tax credit authority. | 1936 |
(49) Sales of materials, parts, equipment, or engines used in | 1941 |
the repair or maintenance of aircraft or avionics systems of such | 1942 |
aircraft, and sales of repair, remodeling, replacement, or | 1943 |
maintenance services in this state performed on aircraft or on an | 1944 |
aircraft's avionics, engine, or component materials or parts. As | 1945 |
used in division (B)(49) of this section, "aircraft" means | 1946 |
aircraft of more than six thousand pounds maximum certified | 1947 |
takeoff weight or used exclusively in general aviation. | 1948 |
(50) Sales of full flight simulators that are used for pilot | 1949 |
or flight-crew training, sales of repair or replacement parts or | 1950 |
components, and sales of repair or maintenance services for such | 1951 |
full flight simulators. "Full flight simulator" means a replica of | 1952 |
a specific type, or make, model, and series of aircraft cockpit. | 1953 |
It includes the assemblage of equipment and computer programs | 1954 |
necessary to represent aircraft operations in ground and flight | 1955 |
conditions, a visual system providing an out-of-the-cockpit view, | 1956 |
and a system that provides cues at least equivalent to those of a | 1957 |
three-degree-of-freedom motion system, and has the full range of | 1958 |
capabilities of the systems installed in the device as described | 1959 |
in appendices A and B of part 60 of chapter 1 of title 14 of the | 1960 |
Code of Federal Regulations. | 1961 |
(i) "Qualifying corporation" means a nonprofit corporation | 1967 |
organized in this state that leases from an eligible county land, | 1968 |
buildings, structures, fixtures, and improvements to the land that | 1969 |
are part of or used in a public recreational facility used by a | 1970 |
major league professional athletic team or a class A to class AAA | 1971 |
minor league affiliate of a major league professional athletic | 1972 |
team for a significant portion of the team's home schedule, | 1973 |
provided the following apply: | 1974 |
(53) Sales to or by a cable service provider, video service | 1987 |
provider, or radio or television broadcast station regulated by | 1988 |
the federal government of cable service or programming, video | 1989 |
service or programming, audio service or programming, or | 1990 |
electronically transferred digital audiovisual or audio work. As | 1991 |
used in division (B)(53) of this section, "cable service" and | 1992 |
"cable service provider" have the same meanings as in section | 1993 |
1332.01 of the Revised Code, and "video service," "video service | 1994 |
provider," and "video programming" have the same meanings as in | 1995 |
section 1332.21 of the Revised Code. | 1996 |
(E) The tax collected by the vendor from the consumer under | 2005 |
this chapter is not part of the price, but is a tax collection for | 2006 |
the benefit of the state, and of counties levying an additional | 2007 |
sales tax pursuant to section 5739.021 or 5739.026 of the Revised | 2008 |
Code and of transit authorities levying an additional sales tax | 2009 |
pursuant to section 5739.023 of the Revised Code. Except for the | 2010 |
discount authorized under section 5739.12 of the Revised Code and | 2011 |
the effects of any rounding pursuant to section 5703.055 of the | 2012 |
Revised Code, no person other than the state or such a county or | 2013 |
transit authority shall derive any benefit from the collection or | 2014 |
payment of the tax levied by this section or section 5739.021, | 2015 |
5739.023, or 5739.026 of the Revised Code. | 2016 |
Section 3. Section 5739.02 of the Revised Code is presented | 2020 |
in this act as a composite of the section as amended by both Am. | 2021 |
Sub. H.B. 51 and Am. Sub. H.B. 59 of the 130th General Assembly. | 2022 |
The General Assembly, applying the principle stated in division | 2023 |
(B) of section 1.52 of the Revised Code that amendments are to be | 2024 |
harmonized if reasonably capable of simultaneous operation, finds | 2025 |
that the composite is the resulting version of the section in | 2026 |
effect prior to the effective date of the section as presented in | 2027 |
this act. | 2028 |