Section 1. That sections 122.075, 122.71, 122.72, 122.74, | 22 |
122.75, 122.87, 122.88, 122.89, 122.90, 125.831, 169.05, 4141.01, | 23 |
4141.09, 4141.241, 4141.29, 4141.291, 4141.293, 4301.20, 5733.01, | 24 |
5733.98, 5739.01, 5739.02, 5739.025, 5747.01, 5747.98, 5751.01, | 25 |
5751.98, and 6301.06 be amended and sections 122.084, 122.721, | 26 |
122.731, 122.891, 4141.294, 4141.302, 4141.50, 4141.51, 4141.52, | 27 |
4141.53, 4141.54, 4141.55, 4141.56, 4141.57, 5709.29, 5747.61, | 28 |
5751.55, 6301.021, 6303.01, and 6303.02 of the Revised Code be | 29 |
enacted to read as follows: | 30 |
(4) "Ethanol" has the same meaning as in section 5733.46 of | 41 |
the Revised Codemeans fermentation ethyl alcohol derived from | 42 |
agricultural products, including potatoes, cereal, grains, cheese | 43 |
whey, and sugar beets; forest products; or other renewable | 44 |
resources, including residue and waste generated from the | 45 |
production, processing, and marketing of agricultural products, | 46 |
forest products, and other renewable resources that meet all of | 47 |
the specifications in the American society for testing and | 48 |
materials (ASTM) specification D 4806-88 and is denatured as | 49 |
specified in Parts 20 and 21 of Title 27 of the Code of Federal | 50 |
Regulations. | 51 |
(B) For the purpose of improving the air quality in this | 63 |
state, the director of development services shall establish an | 64 |
alternative fuel transportation program under which the director | 65 |
may make grants and loans to businesses, nonprofit organizations, | 66 |
public school systems, or local governments for the purchase and | 67 |
installation of alternative fuel refueling or distribution | 68 |
facilities and terminals, for the purchase and use of alternative | 69 |
fuel, and to pay the costs of educational and promotional | 70 |
materials and activities intended for prospective alternative fuel | 71 |
consumers, fuel marketers, and others in order to increase the | 72 |
availability and use of alternative fuel. | 73 |
(E) There is hereby created in the state treasury the | 121 |
alternative fuel transportation fund. The fund shall consist of | 122 |
money transferred to the fund under division (C) of section | 123 |
125.836 and under division (B)(2) of section 3706.27 of the | 124 |
Revised Code, money that is appropriated to it by the general | 125 |
assembly, and money as may be specified by the general assembly | 126 |
from the advanced energy fund created by section 4928.61 of the | 127 |
Revised Code. Money in the fund shall be used to make grants and | 128 |
loans under the alternative fuel transportation program and by the | 129 |
director in the administration of that program. | 130 |
The director of development services, under Chapter 119. of | 134 |
the Revised Code, shall adopt, and may amend and rescind, as | 135 |
necessary and proper, to improve, rules that establish and provide | 136 |
for the administration of a small business microloan revolving | 137 |
loan program to assist small businesses. The director shall | 138 |
include the following in the rules: | 139 |
There is hereby created the small business microloan | 186 |
revolving loan fund in the state treasury. The fund consists of | 187 |
money appropriated to the fund, money received in repayment of | 188 |
microloans made from the fund, and investment earnings on money in | 189 |
the fund. The director shall use money in the fund to make | 190 |
microloans to qualified small businesses through the small | 191 |
business microloan revolving loan program, and to pay reasonable | 192 |
costs of administering the program. All investment earnings on | 193 |
money in the fund shall be credited to the fund. | 194 |
(A) "Financial institution" means any banking corporation, | 197 |
trust company, insurance company, savings and loan association, | 198 |
building and loan association, or corporation, partnership, | 199 |
federal lending agency, foundation, or other institution engaged | 200 |
in lending or investing funds for industrial or business purposes. | 201 |
(B) "Project" means any real or personal property connected | 202 |
with or being a part of an industrial, distribution, commercial, | 203 |
or research facility to be acquired, constructed, reconstructed, | 204 |
enlarged, improved, furnished, or equipped, or any combination | 205 |
thereof, with the aid provided under sections 122.71 to 122.83 of | 206 |
the Revised Code, for industrial, commercial, distribution, and | 207 |
research development of the state. | 208 |
(E)(1) "Minority business enterprise" means an individual who | 217 |
is a United States citizen and owns and controls a business, or a | 218 |
partnership, corporation, or joint venture of any kind that is | 219 |
owned and controlled by United States citizens, which citizen or | 220 |
citizens are residents of this state and are members of one of the | 221 |
following economically disadvantaged groups: Blacks or African | 222 |
Americans, American Indians, Hispanics or Latinos, and Asians. | 223 |
(2) "Owned and controlled" means that at least fifty-one per | 224 |
cent of the business, including corporate stock if a corporation, | 225 |
is owned by persons who belong to one or more of the groups set | 226 |
forth in division (E)(1) of this section, and that those owners | 227 |
have control over the management and day-to-day operations of the | 228 |
business and an interest in the capital, assets, and profits and | 229 |
losses of the business proportionate to their percentage of | 230 |
ownership. In order to qualify as a minority business enterprise, | 231 |
a business shall have been owned and controlled by those persons | 232 |
at least one year prior to being awarded a contract pursuant to | 233 |
this section. | 234 |
(K) "Community development corporation" means a corporation | 250 |
organized under Chapter 1702. of the Revised Code that consists of | 251 |
residents of the community and business and civic leaders and that | 252 |
has as a principal purpose one or more of the following: the | 253 |
revitalization and development of a low- to moderate-income | 254 |
neighborhood or community; the creation of jobs for low- to | 255 |
moderate-income residents; the development of commercial | 256 |
facilities and services; providing training, technical assistance, | 257 |
and financial assistance to small businesses; and planning, | 258 |
developing, or managing low-income housing or other community | 259 |
development activities. | 260 |
(B) The board shall consist of ten members. The director of | 268 |
development services or the director's designee shall be a voting | 269 |
member on the board. Seven members shall be appointed by the | 270 |
governor with the advice and consent of the senate and selected | 271 |
because of their knowledge of and experience in industrial, | 272 |
business, and commercial financing, suretyship, construction, and | 273 |
their understanding of the problems of minority business | 274 |
enterprises; one member also shall be a member of the senate and | 275 |
appointed by the president of the senate, and one member also | 276 |
shall be a member of the house of representatives and appointed by | 277 |
the speaker of the house of representatives. With respect to the | 278 |
board, all of the following apply: | 279 |
The board consists of ten members. The director of | 331 |
development services or the director's designee is a voting member | 332 |
of the board. Seven members shall be appointed by the governor | 333 |
with the advice and consent of the senate, and shall have | 334 |
knowledge of and experience in industrial, business, and | 335 |
commercial financing, suretyship, and construction, and an | 336 |
understanding of the problems of small businesses. One member | 337 |
shall be a member of the senate appointed by the president of the | 338 |
senate, and one member shall be a member of the house of | 339 |
representatives appointed by the speaker of the house of | 340 |
representatives. | 341 |
In the event a member appointed by the president of the | 375 |
senate or by the speaker of the house of representatives is | 376 |
absent, either of the following persons may serve in the member's | 377 |
absence: the president of the senate or the speaker of the house | 378 |
of representatives, whoever appointed the absent member, or a | 379 |
member of the senate or of the house of representatives of the | 380 |
same political party as the absent member, as designated by the | 381 |
president of the senate or the speaker of the house of | 382 |
representatives, whoever appointed the absent member. | 383 |
Sec. 122.731. (A) The powers and duties provided in section | 387 |
122.891 of the Revised Code are established in order to promote | 388 |
the welfare of the people of the state by encouraging the | 389 |
establishment and expansion of small businesses; to stabilize the | 390 |
economy; to provide employment; to assist in the development | 391 |
within the state of industrial, commercial, distribution, and | 392 |
research activities required for the people of the state, and for | 393 |
their gainful employment; and otherwise to create or preserve jobs | 394 |
and employment opportunities and to improve the economic welfare | 395 |
of the people of the state. It is determined that the | 396 |
accomplishment of those purposes is essential so that the people | 397 |
of the state may maintain their present high standards of living | 398 |
in comparison with the people of other states and so that | 399 |
opportunities for employment and for favorable markets for the | 400 |
products of the state's natural resources, agriculture, and | 401 |
manufacturing will be improved. It further is determined that it | 402 |
therefore is necessary to establish the program authorized under | 403 |
section 122.891 of the Revised Code, to establish the small | 404 |
business development financing advisory board, and to vest it and | 405 |
the director of development services with the powers and duties | 406 |
provided in that section. | 407 |
(a) Receive applications for assistance under sections 122.71 | 421 |
to 122.89122.891 of the Revised Code and applications from surety | 422 |
companies for bond guarantees under section 122.90 of the Revised | 423 |
Code, and, after processing but subject to division (A)(2) of this | 424 |
section, forward them to the minority development financing | 425 |
advisory board or small business development financing advisory | 426 |
board, as applicable, together with necessary supporting | 427 |
information; | 428 |
(2) The director is not required to submit any determination, | 443 |
data, terms, or any other application materials or information to | 444 |
the minority development financing advisory board when provision | 445 |
of the assistance has been recommended to the director by a | 446 |
regional economic development entity or when an application for a | 447 |
surety company for bond guarantees under section 122.90 of the | 448 |
Revised Code has been previously approved by the controlling | 449 |
board. | 450 |
(6)(a) When the cost of any contract for the maintenance, | 477 |
protection, repair, or improvement of any property held by the | 478 |
director, other than compensation for personal services, involves | 479 |
an expenditure of more than fifty thousand dollars, the director | 480 |
shall make a written contract with the lowest responsive and | 481 |
responsible bidder in accordance with section 9.312 of the Revised | 482 |
Code after advertisement for not less than two consecutive weeks | 483 |
in a newspaper of general circulation in the county where such | 484 |
contract, or some substantial part of it, is to be performed, and | 485 |
in such other publications as the director determines, which | 486 |
notice shall state the general character of the work and the | 487 |
general character of the materials to be furnished, the place | 488 |
where plans and specifications therefor may be examined, and the | 489 |
time and place of receiving bids. | 490 |
(8) Receive and accept grants, gifts, and contributions of | 512 |
money, property, labor, and other things of value to be held, | 513 |
used, and applied only for the purpose for which the grants, | 514 |
gifts, and contributions are made, from individuals, private and | 515 |
public corporations, from the United States or any agency thereof, | 516 |
from the state or any agency thereof, and from any political | 517 |
subdivision of the state, and may agree to repay any contribution | 518 |
of money or to return any property contributed or the value | 519 |
thereof at such times, in amounts, and on terms and conditions, | 520 |
excluding the payment of interest, as the director determines at | 521 |
the time the contribution is made, and may evidence the | 522 |
obligations by notes, bonds, or other written instruments; | 523 |
(C)(1) All expenses and obligations incurred by the director | 533 |
in carrying out the director's powers and in exercising the | 534 |
director's duties under sections 122.71 to 122.90 of the Revised | 535 |
Code shall be payable solely from revenues or other receipts or | 536 |
income of the director, from grants, gifts, and contributions, or | 537 |
funds established in accordance with such sections. Such sections | 538 |
do not authorize the director to incur indebtedness or to impose | 539 |
liability on the state or any political subdivision of the state. | 540 |
(C) Receive and accept grants, gifts, and contributions of | 556 |
money, property, labor, and other things of value, to be held, | 557 |
used, and applied only for the purpose for which the grants, | 558 |
gifts, and contributions are made, from individuals, private and | 559 |
public corporations, the United States or any agency of the United | 560 |
States, the state or any agency of the state, and any political | 561 |
subdivision of the state. The director may agree to repay any | 562 |
contribution of money or to return any property contributed or its | 563 |
value at such times, in amounts, and on terms and conditions, | 564 |
excluding the payment of interest, as the director determines at | 565 |
the time the contribution is made. The director may evidence the | 566 |
obligations by written contracts, subject to section 122.76 of the | 567 |
Revised Code; provided, that the director shall not thereby incur | 568 |
indebtedness of or impose liability upon the state or any | 569 |
political subdivision. | 570 |
(E) Invest money in the funds the director establishes | 574 |
pursuant to division (D) of this section that is in excess of | 575 |
current needs, in notes, bonds, or other obligations that are | 576 |
direct obligations of or are guaranteed by the United States, or | 577 |
in certificates of deposit or withdrawable accounts of banks, | 578 |
trust companies, or savings and loan associations organized under | 579 |
the laws of this state or the United States, and may credit the | 580 |
income or sell the investments at the director's discretion; | 581 |
(G)(1) Maintain, protect, repair, improve, and insure any | 586 |
property the director has acquired and dispose of it by sale, | 587 |
exchange, or lease for the consideration and on terms and in a | 588 |
manner the director considers proper. The director may not operate | 589 |
any property as a business except as a lessor of the property. | 590 |
When the cost of any contract for the maintenance, protection, | 591 |
repair, or improvement of any property of the advisory board | 592 |
connected with the minority business development loan program, | 593 |
other than compensation for personal services, involves an | 594 |
expenditure of more than one thousand dollars, the director shall | 595 |
enter into a written contract with the lowest and best bidder | 596 |
after advertisement for not less than four consecutive weeks in a | 597 |
newspaper of general circulation in the county where the contract, | 598 |
or some substantial part of it, is to be performed, and in other | 599 |
publications as the director determines. The notice shall state | 600 |
the general character of the work and the general character of the | 601 |
materials to be furnished, the place where plans and | 602 |
specifications for the work and materials may be examined, and the | 603 |
time and place of receiving bids. | 604 |
(3) Each bid for a contract, except as provided in division | 609 |
(G)(2) of this section, shall contain the full name of every | 610 |
person interested in it and shall be accompanied by a bond or | 611 |
certified check on a solvent bank, in the amount of ten per cent | 612 |
of the bid, that if the bid is accepted a contract will be entered | 613 |
into and the performance of its proposal secured. The director may | 614 |
reject any or all bids. A bond with good and sufficient surety, | 615 |
approved by the director, shall be required of all contractors in | 616 |
an amount equal to at least one hundred per cent of the contract | 617 |
price, conditioned upon faithful performance of the contract. | 618 |
Sec. 122.88. (A) There is hereby created in the state | 659 |
treasury the minority and small business bonding fund, consisting | 660 |
of moneys deposited or credited to it pursuant to section 169.05 | 661 |
of the Revised Code; all grants, gifts, and contributions received | 662 |
pursuant to division (B)(9) of section 122.74 of the Revised Code; | 663 |
all moneys recovered following defaults; and any other moneys | 664 |
obtained by the director of development services for the purposes | 665 |
of sections 122.87 to 122.90 of the Revised Code. The fund shall | 666 |
be administered by the director. Moneys in the fund shall be held | 667 |
in trust for the purposes of sections 122.87 to 122.90 of the | 668 |
Revised Code. | 669 |
(B) Any claims against the state arising from defaults shall | 670 |
be payable from the minority and small business bonding program | 671 |
administrative and loss reserve fund as provided in division (C) | 672 |
of this section or from the minority and small business bonding | 673 |
fund. Nothing in sections 122.87 to 122.90 of the Revised Code | 674 |
grants or pledges to any obligee or other person any state moneys | 675 |
other than the moneys in the minority and small business bonding | 676 |
program administrative and loss reserve fund or the minority and | 677 |
small business bonding fund, or moneys available to the minority | 678 |
and small business bonding fund upon request of the director in | 679 |
accordance with division (B) of section 169.05 of the Revised | 680 |
Code. | 681 |
(C) There is hereby created in the state treasury the | 682 |
minority and small business bonding program administrative and | 683 |
loss reserve fund, consisting of all premiums charged and | 684 |
collected in accordance with sectionsections 122.89 and 122.891 | 685 |
of the Revised Code and any interest income earned from the moneys | 686 |
in the minority
and small business bonding fund. All expenses of | 687 |
the director and, the minority development financing advisory | 688 |
board, and the small business development financing advisory board | 689 |
in carrying out the purposes of sections 122.87 to 122.90 of the | 690 |
Revised Code shall be paid from the minority and small business | 691 |
bonding program administrative and loss reserve fund. | 692 |
Any moneys to the credit of the minority and small business | 693 |
bonding program administrative and loss reserve fund in excess of | 694 |
the amount necessary to fund the appropriation authority for the | 695 |
minority and small business bonding program administrative and | 696 |
loss reserve fund shall be held as a loss reserve to pay claims | 697 |
arising from defaults on surety bonds underwritten in accordance | 698 |
with section 122.89 or 122.891 of the Revised Code or guaranteed | 699 |
in accordance with section 122.90 of the Revised Code. If the | 700 |
balance of funds in the minority and small business bonding | 701 |
program administrative and loss reserve fund is insufficient to | 702 |
pay a claim against the state arising from default, then such | 703 |
claim shall be payable from the minority and small business | 704 |
bonding fund. | 705 |
Sec. 122.89. (A) The director of development services may | 706 |
execute bonds as surety for minority businesses as principals, on | 707 |
contracts with the state, any political subdivision or | 708 |
instrumentality thereof, or any person as the obligee. The | 709 |
director as surety may exercise all the rights and powers of a | 710 |
company authorized by the department of insurance to execute bonds | 711 |
as surety but shall not be subject to any requirements of a surety | 712 |
company under Title XXXIX of the Revised Code nor to any rules of | 713 |
the department of insurance. | 714 |
(B) The director, with the advice of the minority development | 715 |
financing advisory board, shall adopt rules under Chapter 119. of | 716 |
the Revised Code establishing procedures for application for | 717 |
surety bonds by minority businesses and for review and approval of | 718 |
applications. The board shall review each application in | 719 |
accordance with the rules and, based on the bond worthiness of | 720 |
each applicant, shall refer all qualified applicants to the | 721 |
director. Based on the recommendation of the board, the director | 722 |
shall determine whether or not the applicant shall receive | 723 |
bonding.
The rules shall establish the maximum amount of any bond | 724 |
issued at two million dollars. | 725 |
(1) For the first contract that a minority business or EDGE | 753 |
business enterprise enters into with the state or with any | 754 |
particular instrumentality of the state, the minority business or | 755 |
EDGE business enterprise may bid or enter into a contract valued | 756 |
at twenty-five thousand dollars or less without being required to | 757 |
provide a bond, but only if the minority business or EDGE business | 758 |
enterprise is participating in a qualified contractor assistance | 759 |
program or has successfully completed a qualified contractor | 760 |
assistance program after the effective date of this amendment | 761 |
October 16, 2009; | 762 |
(2) After the state or any particular instrumentality of the | 763 |
state has accepted the first contract as completed and all | 764 |
subcontractors and suppliers on the contract have been paid, the | 765 |
minority business or EDGE business enterprise may bid or enter | 766 |
into a second contract with the state or with that particular | 767 |
instrumentality of the state valued at fifty thousand dollars or | 768 |
less without being required to provide a bond, but only if the | 769 |
minority business or EDGE business enterprise is participating in | 770 |
a qualified contractor assistance program or has successfully | 771 |
completed a qualified contractor assistance program after the | 772 |
effective date of this amendmentOctober 16, 2009; | 773 |
(3) After the state or any particular instrumentality of the | 774 |
state has accepted the second contract as completed and all | 775 |
subcontractors and suppliers on the contract have been paid, the | 776 |
minority business or EDGE business enterprise may bid or enter | 777 |
into a third contract with the state or with that particular | 778 |
instrumentality of the state valued at one hundred thousand | 779 |
dollars or less without being required to provide a bond, but only | 780 |
if the minority business or EDGE business enterprise has | 781 |
successfully completed a qualified contractor assistance program | 782 |
after the effective date of this amendmentOctober 16, 2009; | 783 |
(4) After the state or any particular instrumentality of the | 784 |
state has accepted the third contract as completed and all | 785 |
subcontractors and suppliers on the contract have been paid, the | 786 |
minority business or EDGE business enterprise may bid or enter | 787 |
into a fourth contract with the state or with that particular | 788 |
instrumentality of the state valued at three hundred thousand | 789 |
dollars or less without being required to provide a bond, but only | 790 |
if the minority business or EDGE business enterprise has | 791 |
successfully completed a qualified contractor assistance program | 792 |
after the effective date of this amendmentOctober 16, 2009; | 793 |
(5) After the state or any instrumentality of the state has | 794 |
accepted the fourth contract as completed and all subcontractors | 795 |
and suppliers on the contract have been paid, upon a showing that | 796 |
with respect to a contract valued at four hundred thousand dollars | 797 |
or less with the state or with any particular instrumentality of | 798 |
the state, that the minority business or EDGE business enterprise | 799 |
either has been denied a bond by two surety companies or that the | 800 |
minority business or EDGE business enterprise has applied to two | 801 |
surety companies for a bond and, at the expiration of sixty days | 802 |
after making the application, has neither received nor been denied | 803 |
a bond, the minority business or EDGE business enterprise may | 804 |
repeat its participation in the unbonded state contractor program. | 805 |
Under no circumstances shall a minority business or EDGE business | 806 |
enterprise be permitted to participate in the unbonded state | 807 |
contractor program more than twice. | 808 |
(1) For the first contract that the minority business or EDGE | 814 |
business enterprise enters into with any particular political | 815 |
subdivision of the state or with any particular instrumentality of | 816 |
a political subdivision, the minority business or EDGE business | 817 |
enterprise may bid or enter into a contract valued at twenty-five | 818 |
thousand dollars or less without being required to provide a bond, | 819 |
but only if the minority business or EDGE business enterprise is | 820 |
participating in a qualified contractor assistance program or has | 821 |
successfully completed a qualified contractor assistance program | 822 |
after the effective date of this amendmentOctober 16, 2009; | 823 |
(2) After any political subdivision of the state or any | 824 |
instrumentality of a political subdivision has accepted the first | 825 |
contract as completed and all subcontractors and suppliers on the | 826 |
contract have been paid, the minority business or EDGE business | 827 |
enterprise may bid or enter into a second contract with that | 828 |
particular political subdivision of the state or with that | 829 |
particular instrumentality of a political subdivision valued at | 830 |
fifty thousand dollars or less without being required to provide a | 831 |
bond, but only if the minority business or EDGE business | 832 |
enterprise is participating in a qualified contractor assistance | 833 |
program or has successfully completed a qualified contractor | 834 |
assistance program after the effective date of this amendment | 835 |
October 16, 2009; | 836 |
(3) After any political subdivision of the state or any | 837 |
instrumentality of a political subdivision has accepted the second | 838 |
contract as completed and all subcontractors and suppliers on the | 839 |
contract have been paid, the minority business or EDGE business | 840 |
enterprise may bid or enter into a third contract with that | 841 |
particular political subdivision of the state or with that | 842 |
particular instrumentality of a political subdivision valued at | 843 |
one hundred thousand dollars or less without being required to | 844 |
provide a bond, but only if the minority business or EDGE business | 845 |
enterprise has successfully completed a qualified contractor | 846 |
assistance program after the effective date of this amendment | 847 |
October 16, 2009; | 848 |
(4) After any political subdivision of the state or any | 849 |
instrumentality of a political subdivision has accepted the third | 850 |
contract as completed and all subcontractors and suppliers on the | 851 |
contract have been paid, the minority business or EDGE business | 852 |
enterprise may bid or enter into a fourth contract with that | 853 |
particular political subdivision of the state or with that | 854 |
particular instrumentality of a political subdivision valued at | 855 |
two hundred thousand dollars or less without being required to | 856 |
provide a bond, but only if the minority business or EDGE business | 857 |
enterprise has successfully completed a qualified contractor | 858 |
assistance program after the effective date of this amendment | 859 |
October 16, 2009; | 860 |
(5) After any political subdivision of the state or any | 861 |
instrumentality of a political subdivision has accepted the fourth | 862 |
contract as completed and all subcontractors and suppliers on the | 863 |
contract have been paid, upon a showing that with respect to a | 864 |
contract valued at three hundred thousand dollars or less with any | 865 |
political subdivision of the state or any instrumentality of a | 866 |
political subdivision, that the minority business or EDGE business | 867 |
enterprise either has been denied a bond by two surety companies | 868 |
or that the minority business or EDGE business enterprise has | 869 |
applied to two surety companies for a bond and, at the expiration | 870 |
of sixty days after making the application, has neither received | 871 |
nor been denied a bond, the minority business or EDGE business | 872 |
enterprise may repeat its participation in the unbonded political | 873 |
subdivision contractor program. Under no circumstances shall a | 874 |
minority business or EDGE business enterprise be permitted to | 875 |
participate in the unbonded political subdivision contractor | 876 |
program more than twice. | 877 |
(I) Notwithstanding any provision of the Revised Code to the | 878 |
contrary, if a minority business or EDGE business enterprise has | 879 |
entered into two or more contracts with the state or with any | 880 |
instrumentality of the state, the minority business or EDGE | 881 |
business enterprise may bid or enter into a contract with a | 882 |
political subdivision of the state or with any instrumentality of | 883 |
a political subdivision valued at the level at which the minority | 884 |
business or EDGE business enterprise would qualify if entering | 885 |
into an additional contract with the state. | 886 |
(J) The director of development services shall coordinate and | 887 |
oversee the unbonded state contractor program described in | 888 |
division (G) of this section, the unbonded political subdivision | 889 |
contractor program described in division (H) of this section, and | 890 |
the approval of a qualified contractor assistance program. The | 891 |
director shall prepare an annual report and submit it to the | 892 |
governor and the general assembly on or before the first day of | 893 |
February that includes the following: information on the | 894 |
director's activities for the preceding calendar year regarding | 895 |
the unbonded state contractor program, the unbonded political | 896 |
subdivision contractor program, and the qualified contractor | 897 |
assistance program; a summary and description of the operations | 898 |
and activities of these programs; an assessment of the | 899 |
achievements of these programs; and a recommendation as to whether | 900 |
these programs need to continue. | 901 |
(B) The director may execute bonds as surety for small | 933 |
businesses as principals on contracts with the state or | 934 |
instrumentality thereof, a political subdivision or | 935 |
instrumentality thereof, or any person as the obligee. The | 936 |
director as surety may exercise all the rights and powers of a | 937 |
company authorized by the department of insurance to execute bonds | 938 |
as surety, but shall not be subject to any requirements of a | 939 |
surety company under Title XXXIX of the Revised Code or to any | 940 |
rules of the department or superintendent of insurance. | 941 |
(C) The director, with the advice of the small business | 942 |
development financing advisory board, shall adopt rules under | 943 |
Chapter 119. of the Revised Code establishing procedures whereby | 944 |
small businesses shall apply for surety bonds, and for the review | 945 |
and approval of applications. The board shall review each | 946 |
application in accordance with the rules and, based upon the bond | 947 |
worthiness of each applicant, shall refer all qualified applicants | 948 |
to the director. Based on the recommendation of the board, the | 949 |
director shall determine whether or not the applicant is entitled | 950 |
to receive bonding. The rules shall establish the maximum amount | 951 |
of any bond issued at two million dollars. | 952 |
(1) For the first contract that a small business enters into | 978 |
with the state or with any particular instrumentality of the | 979 |
state, the small business may bid or enter into a contract valued | 980 |
at twenty-five thousand dollars or less without being required to | 981 |
provide a bond, but only if the small business is participating in | 982 |
a qualified contractor assistance program or has successfully | 983 |
completed a qualified contractor assistance program after the | 984 |
effective date of this section. | 985 |
(2) After the state or the particular instrumentality of the | 986 |
state has accepted the first contract as completed and all | 987 |
subcontractors and suppliers on the contract have been paid, the | 988 |
small business may bid or enter into a second contract with the | 989 |
state or with that particular instrumentality of the state valued | 990 |
at fifty thousand dollars or less without being required to | 991 |
provide a bond, but only if the small business is participating in | 992 |
a qualified contractor assistance program or has successfully | 993 |
completed a qualified contractor assistance program after the | 994 |
effective date of this section. | 995 |
(3) After the state or the particular instrumentality of the | 996 |
state has accepted the second contract as completed and all | 997 |
subcontractors and suppliers on the contract have been paid, the | 998 |
small business may bid or enter into a third contract with the | 999 |
state or with that particular instrumentality of the state valued | 1000 |
at one hundred thousand dollars or less without being required to | 1001 |
provide a bond, but only if the small business has successfully | 1002 |
completed a qualified contractor assistance program after the | 1003 |
effective date of this section. | 1004 |
(4) After the state or the particular instrumentality of the | 1005 |
state has accepted the third contract as completed and all | 1006 |
subcontractors and suppliers on the contract have been paid, the | 1007 |
small business may bid or enter into a fourth contract with the | 1008 |
state or with that particular instrumentality of the state valued | 1009 |
at three hundred thousand dollars or less without being required | 1010 |
to provide a bond, but only if the small business has successfully | 1011 |
completed a qualified contractor assistance program after the | 1012 |
effective date of this section. | 1013 |
(5) After the state or the instrumentality of the state has | 1014 |
accepted the fourth contract as completed and all subcontractors | 1015 |
and suppliers on the contract have been paid, upon a showing that | 1016 |
with respect to a contract valued at four hundred thousand dollars | 1017 |
or less with the state or with any particular instrumentality of | 1018 |
the state, that the small business either has been denied a bond | 1019 |
by two surety companies or that the small business has applied to | 1020 |
two surety companies for a bond and, at the expiration of sixty | 1021 |
days after making the application, has neither received nor been | 1022 |
denied a bond, the small business may repeat its participation in | 1023 |
the unbonded state contractor program. Under no circumstances | 1024 |
shall a small business be permitted to participate in the unbonded | 1025 |
state contractor program more than twice. | 1026 |
(1) For the first contract that the small business enters | 1032 |
into with any particular political subdivision of the state or | 1033 |
with any particular instrumentality of a political subdivision, | 1034 |
the small business may bid or enter into a contract valued at | 1035 |
twenty-five thousand dollars or less without being required to | 1036 |
provide a bond, but only if the small business is participating in | 1037 |
a qualified contractor assistance program or has successfully | 1038 |
completed a qualified contractor assistance program after the | 1039 |
effective date of this section. | 1040 |
(2) After the political subdivision or the instrumentality of | 1041 |
a political subdivision has accepted the first contract as | 1042 |
completed and all subcontractors and suppliers on the contract | 1043 |
have been paid, the small business may bid or enter into a second | 1044 |
contract with that particular political subdivision or with that | 1045 |
particular instrumentality of a political subdivision valued at | 1046 |
fifty thousand dollars or less without being required to provide a | 1047 |
bond, but only if the small business is participating in a | 1048 |
qualified contractor assistance program or has successfully | 1049 |
completed a qualified contractor assistance program after the | 1050 |
effective date of this section. | 1051 |
(3) After the political subdivision or the instrumentality of | 1052 |
a political subdivision has accepted the second contract as | 1053 |
completed and all subcontractors and suppliers on the contract | 1054 |
have been paid, the small business may bid or enter into a third | 1055 |
contract with that particular political subdivision or with that | 1056 |
particular instrumentality of a political subdivision valued at | 1057 |
one hundred thousand dollars or less without being required to | 1058 |
provide a bond, but only if the small business has successfully | 1059 |
completed a qualified contractor assistance program after the | 1060 |
effective date of this section. | 1061 |
(4) After the political subdivision or the instrumentality of | 1062 |
a political subdivision has accepted the third contract as | 1063 |
completed and all subcontractors and suppliers on the contract | 1064 |
have been paid, the small business may bid or enter into a fourth | 1065 |
contract with that particular political subdivision of the state | 1066 |
or with that particular instrumentality of a political subdivision | 1067 |
valued at two hundred thousand dollars or less without being | 1068 |
required to provide a bond, but only if the small business has | 1069 |
successfully completed a qualified contractor assistance program | 1070 |
after the effective date of this section. | 1071 |
(5) After the political subdivision or the instrumentality of | 1072 |
a political subdivision has accepted the fourth contract as | 1073 |
completed and all subcontractors and suppliers on the contract | 1074 |
have been paid, upon a showing that with respect to a contract | 1075 |
valued at three hundred thousand dollars or less with any | 1076 |
political subdivision or any instrumentality of a political | 1077 |
subdivision, that the small business either has been denied a bond | 1078 |
by two surety companies or that the small business has applied to | 1079 |
two surety companies for a bond and, at the expiration of sixty | 1080 |
days after making the application, has neither received nor been | 1081 |
denied a bond, the small business may repeat its participation in | 1082 |
the unbonded political subdivision contractor program. Under no | 1083 |
circumstances shall a small business be permitted to participate | 1084 |
in the unbonded political subdivision contractor program more than | 1085 |
twice. | 1086 |
(K) The director of development services shall coordinate and | 1094 |
oversee the unbonded state contractor program described in | 1095 |
division (H) of this section, the unbonded political subdivision | 1096 |
contractor program described in division (I) of this section, and | 1097 |
the approval of a qualified contractor assistance program. The | 1098 |
director shall prepare an annual report and submit it to the | 1099 |
governor and the general assembly on or before the first day of | 1100 |
February that includes the following: information on the | 1101 |
director's activities for the preceding calendar year regarding | 1102 |
the unbonded state contractor program, the unbonded political | 1103 |
subdivision contractor program, and the qualified contractor | 1104 |
assistance program; a summary and description of the operations | 1105 |
and activities of these programs; an assessment of the | 1106 |
achievements of these programs; and a recommendation as to whether | 1107 |
these programs need to continue. | 1108 |
Sec. 122.90. (A) The director of development services may | 1109 |
guarantee bonds executed by sureties for minority businesses and | 1110 |
EDGE business enterprises certified under section 123.152 of the | 1111 |
Revised Code as principals on contracts with the state, any | 1112 |
political subdivision or instrumentality, or any person as the | 1113 |
obligee. The director, as guarantor, may exercise all the rights | 1114 |
and powers of a company authorized by the department of insurance | 1115 |
to guarantee bonds under Chapter 3929. of the Revised Code but | 1116 |
otherwise is not subject to any laws related to a guaranty company | 1117 |
under Title XXXIX of the Revised Code nor to any rules of the | 1118 |
department of insurance. | 1119 |
(E) The director of development, with controlling board | 1136 |
approval, may approve one application per fiscal year from each | 1137 |
surety bond company for bond guarantees in an amount requested to | 1138 |
support one fiscal year of that company's activity under this | 1139 |
section. A surety bond company that applies for a bond guarantee | 1140 |
under this division, whether or not the guarantee is approved, is | 1141 |
not restricted from also applying for individual bond guarantees | 1142 |
under division (A) of this section. | 1143 |
(E) "E85 blend fuel" means fuel containing eighty-five per | 1174 |
cent or more ethanol as defined in section 5733.46122.075 of the | 1175 |
Revised Code or containing any other percentage of not less than | 1176 |
seventy per cent ethanol if the United States department of energy | 1177 |
determines, by rule, that the lower percentage is necessary to | 1178 |
provide for the requirements of cold start, safety, or vehicle | 1179 |
functions, and that meets the American society for testing and | 1180 |
materials specification for E85 blend fuel and any other standards | 1181 |
that the director of administrative services adopts by rule. | 1182 |
(F) "Law enforcement officer" means an officer, agent, or | 1183 |
employee of a state agency upon whom, by statute, a duty to | 1184 |
conserve the peace or to enforce all or certain laws is imposed | 1185 |
and the authority to arrest violators is conferred, within the | 1186 |
limits of that statutory duty and authority, but does not include | 1187 |
such an officer, agent, or employee if that duty and authority is | 1188 |
location specific. | 1189 |
(I) "State agency" means every organized body, office, board, | 1204 |
authority, commission, or agency established by the laws of the | 1205 |
state for the exercise of any governmental or quasi-governmental | 1206 |
function of state government regardless of the funding source for | 1207 |
that entity, other than any state institution of higher education, | 1208 |
the office of the governor, lieutenant governor, auditor of state, | 1209 |
treasurer of state, secretary of state, or attorney general, the | 1210 |
general assembly or any legislative agency, the courts or any | 1211 |
judicial agency, or any state retirement system or retirement | 1212 |
program established by or referenced in the Revised Code. | 1213 |
Sec. 169.05. (A) Every holder required to file a report | 1216 |
under section 169.03 of the Revised Code shall, at the time of | 1217 |
filing, pay to the director of commerce ten per cent of the | 1218 |
aggregate amount of unclaimed funds as shown on the report, except | 1219 |
for aggregate amounts of fifty dollars or less in which case one | 1220 |
hundred per cent shall be paid. The funds may be deposited by the | 1221 |
director in the state treasury to the credit of the unclaimed | 1222 |
funds trust fund, which is hereby created, or placed with a | 1223 |
financial organization. Any interest earned on money in the trust | 1224 |
fund shall be credited to the trust fund. The remainder of the | 1225 |
aggregate amount of unclaimed funds as shown on the report, plus | 1226 |
earnings accrued to date of payment to the director, shall, at the | 1227 |
option of the director, be retained by the holder or paid to the | 1228 |
director for deposit as agent for the mortgage funds with a | 1229 |
financial organization as defined in section 169.01 of the Revised | 1230 |
Code, with the funds to be in income-bearing accounts to the | 1231 |
credit of the mortgage funds, or the holder may enter into an | 1232 |
agreement with the director specifying the obligations of the | 1233 |
United States in which funds are to be invested, and agree to pay | 1234 |
the interest on the obligations to the state. Holders retaining | 1235 |
any funds not in obligations of the United States shall enter into | 1236 |
an agreement with the director specifying the classification of | 1237 |
income-bearing account in which the funds will be held and pay the | 1238 |
state interest on the funds at a rate equal to the prevailing | 1239 |
market rate for similar funds. Moneys that the holder is required | 1240 |
to pay to the director rather than to retain may be deposited with | 1241 |
the treasurer of state, or placed with a financial organization. | 1242 |
One-half of the funds evidenced by agreements, in | 1246 |
income-bearing accounts, or on deposit with the treasurer of state | 1247 |
shall be allocated on the records of the director to the mortgage | 1248 |
insurance fund created by section 122.561 of the Revised Code. Out | 1249 |
of the remaining half, after allocation of sufficient moneys to | 1250 |
the minority and small business bonding fund to meet the | 1251 |
provisions of division (B) of this section, the remainder shall be | 1252 |
allocated on the records of the director to the housing | 1253 |
development fund created by division (A) of section 175.11 of the | 1254 |
Revised Code. | 1255 |
(B) The director shall serve as agent for the director of | 1256 |
development services and as agent for the Ohio housing finance | 1257 |
agency in making deposits and withdrawals and maintaining records | 1258 |
pertaining to the minority and small business bonding fund created | 1259 |
by section 122.88 of the Revised Code, the mortgage insurance | 1260 |
fund, and the housing development fund created by section 175.11 | 1261 |
of the Revised Code. Funds from the mortgage insurance fund are | 1262 |
available to the director of development services when those funds | 1263 |
are to be disbursed to prevent or cure, or upon the occurrence of, | 1264 |
a default of a mortgage insured pursuant to section 122.451 of the | 1265 |
Revised Code. Funds from the housing development fund are | 1266 |
available upon request to the Ohio housing finance agency, in an | 1267 |
amount not to exceed the funds allocated on the records of the | 1268 |
director, for the purposes of section 175.05 of the Revised Code. | 1269 |
Funds from the minority
and small business bonding fund are | 1270 |
available to the director of development services upon request to | 1271 |
pay obligations on bonds the director writes pursuant to section | 1272 |
122.88 of the Revised Code; except that, unless the general | 1273 |
assembly authorizes additional amounts, the total maximum amount | 1274 |
of moneys that may be allocated to the minority and small business | 1275 |
bonding fund under this division is ten million dollars. | 1276 |
When funds are to be disbursed, the appropriate agency shall | 1277 |
call upon the director to transfer the necessary funds to it. The | 1278 |
director shall first withdraw the funds paid by the holders and | 1279 |
deposited with the treasurer of state or in a financial | 1280 |
institution as agent for the funds. Whenever these funds are | 1281 |
inadequate to meet the request, the director shall provide for a | 1282 |
withdrawal of funds, within a reasonable time and in the amount | 1283 |
necessary to meet the request, from financial institutions in | 1284 |
which the funds were retained or placed by a holder and from other | 1285 |
holders who have retained funds, in an equitable manner as the | 1286 |
director prescribes. In the event that the amount to be withdrawn | 1287 |
from any one holder is less than five hundred dollars, the amount | 1288 |
to be withdrawn is at the director's discretion. The director | 1289 |
shall then transfer to the agency the amount of funds requested. | 1290 |
(C) Earnings on the accounts in financial organizations to | 1304 |
the credit of the mortgage funds shall, at the option of the | 1305 |
financial organization, be credited to the accounts at times and | 1306 |
at rates as earnings are paid on other accounts of the same | 1307 |
classification held in the financial organization or paid to the | 1308 |
director. The director shall be notified annually, and at other | 1309 |
times as the director may request, of the amount of the earnings | 1310 |
credited to the accounts. Interest on unclaimed funds a holder | 1311 |
retains shall be paid to the director or credited as specified in | 1312 |
the agreement under which the organization retains the funds. | 1313 |
Interest payable to the director under an agreement to invest | 1314 |
unclaimed funds and obligations of the United States shall be paid | 1315 |
annually by the holder to the director. Any earnings or interest | 1316 |
the director receives under this division shall be deposited in | 1317 |
and credited to the mortgage funds. | 1318 |
(A)(1) "Employer" means the state, its instrumentalities, its | 1321 |
political subdivisions and their instrumentalities, Indian tribes, | 1322 |
and any individual or type of organization including any | 1323 |
partnership, limited liability company, association, trust, | 1324 |
estate, joint-stock company, insurance company, or corporation, | 1325 |
whether domestic or foreign, or the receiver, trustee in | 1326 |
bankruptcy, trustee, or the successor thereof, or the legal | 1327 |
representative of a deceased person who subsequent to December 31, | 1328 |
1971, or in the case of political subdivisions or their | 1329 |
instrumentalities, subsequent to December 31, 1973: | 1330 |
(c) Had paid, subsequent to December 31, 1977, for employment | 1341 |
in domestic service in a local college club, or local chapter of a | 1342 |
college fraternity or sorority, cash remuneration of one thousand | 1343 |
dollars or more in any calendar quarter in the current calendar | 1344 |
year or the preceding calendar year, or had paid subsequent to | 1345 |
December 31, 1977, for employment in domestic service in a private | 1346 |
home cash remuneration of one thousand dollars in any calendar | 1347 |
quarter in the current calendar year or the preceding calendar | 1348 |
year: | 1349 |
(ii) Had at least ten individuals in employment in | 1364 |
agricultural labor, not including agricultural workers who are | 1365 |
aliens admitted to the United States to perform agricultural labor | 1366 |
pursuant to sections 1184(c) and 1101(a)(15)(H) of the | 1367 |
"Immigration and Nationality Act," 66 Stat. 163, 189, 8 U.S.C.A. | 1368 |
1101(a)(15)(H)(ii)(a), 1184(c), for some portion of a day in each | 1369 |
of the twenty different calendar weeks, in either the current or | 1370 |
preceding calendar year whether or not the same individual was in | 1371 |
employment in each day; or | 1372 |
(2) Each individual employed to perform or to assist in | 1398 |
performing the work of any agent or employee of an employer is | 1399 |
employed by such employer for all the purposes of this chapter, | 1400 |
whether such individual was hired or paid directly by such | 1401 |
employer or by such agent or employee, provided the employer had | 1402 |
actual or constructive knowledge of the work. All individuals | 1403 |
performing services for an employer of any person in this state | 1404 |
who maintains two or more establishments within this state are | 1405 |
employed by a single employer for the purposes of this chapter. | 1406 |
(4) An employer not otherwise subject to this chapter who | 1410 |
files with the director of job and family services a written | 1411 |
election to become an employer subject to this chapter for not | 1412 |
less than two calendar years shall, with the written approval of | 1413 |
such election by the director, become an employer subject to this | 1414 |
chapter to the same extent as all other employers as of the date | 1415 |
stated in such approval, and shall cease to be subject to this | 1416 |
chapter as of the first day of January of any calendar year | 1417 |
subsequent to such two calendar years only if at least thirty days | 1418 |
prior to such first day of January the employer has filed with the | 1419 |
director a written notice to that effect. | 1420 |
(5) Any employer for whom services that do not constitute | 1421 |
employment are performed may file with the director a written | 1422 |
election that all such services performed by individuals in the | 1423 |
employer's employ in one or more distinct establishments or places | 1424 |
of business shall be deemed to constitute employment for all the | 1425 |
purposes of this chapter, for not less than two calendar years. | 1426 |
Upon written approval of the election by the director, such | 1427 |
services shall be deemed to constitute employment subject to this | 1428 |
chapter from and after the date stated in such approval. Such | 1429 |
services shall cease to be employment subject to this chapter as | 1430 |
of the first day of January of any calendar year subsequent to | 1431 |
such two calendar years only if at least thirty days prior to such | 1432 |
first day of January such employer has filed with the director a | 1433 |
written notice to that effect. | 1434 |
(B)(1) "Employment" means service performed by an individual | 1435 |
for remuneration under any contract of hire, written or oral, | 1436 |
express or implied, including service performed in interstate | 1437 |
commerce and service performed by an officer of a corporation, | 1438 |
without regard to whether such service is executive, managerial, | 1439 |
or manual in nature, and without regard to whether such officer is | 1440 |
a stockholder or a member of the board of directors of the | 1441 |
corporation, unless it is shown to the satisfaction of the | 1442 |
director that such individual has been and will continue to be | 1443 |
free from direction or control over the performance of such | 1444 |
service, both under a contract of service and in fact. The | 1445 |
director shall adopt rules to define "direction or control." | 1446 |
(a) Service performed after December 31, 1977, by an | 1448 |
individual in the employ of the state or any of its | 1449 |
instrumentalities, or any political subdivision thereof or any of | 1450 |
its instrumentalities or any instrumentality of more than one of | 1451 |
the foregoing or any instrumentality of any of the foregoing and | 1452 |
one or more other states or political subdivisions and without | 1453 |
regard to divisions (A)(1)(a) and (b) of this section, provided | 1454 |
that such service is excluded from employment as defined in the | 1455 |
"Federal Unemployment Tax Act," 53 Stat. 183, 26 U.S.C.A. 3301, | 1456 |
3306(c)(7) and is not excluded under division (B)(3) of this | 1457 |
section; or the services of employees covered by voluntary | 1458 |
election, as provided under divisions (A)(4) and (5) of this | 1459 |
section; | 1460 |
(b) Service performed after December 31, 1971, by an | 1461 |
individual in the employ of a religious, charitable, educational, | 1462 |
or other organization which is excluded from the term "employment" | 1463 |
as defined in the "Federal Unemployment Tax Act," 84 Stat. 713, 26 | 1464 |
U.S.C.A. 3301 to 3311, solely by reason of section 26 U.S.C.A. | 1465 |
3306(c)(8) of that act and is not excluded under division (B)(3) | 1466 |
of this section; | 1467 |
(ii) As a traveling or city salesperson, other than as an | 1479 |
agent-driver or commission-driver, engaged on a full-time basis in | 1480 |
the solicitation on behalf of and in the transmission to the | 1481 |
salesperson's employer or principal except for sideline sales | 1482 |
activities on behalf of some other person of orders from | 1483 |
wholesalers, retailers, contractors, or operators of hotels, | 1484 |
restaurants, or other similar establishments for merchandise for | 1485 |
resale, or supplies for use in their business operations, provided | 1486 |
that for the purposes of division (B)(2)(e)(ii) of this section, | 1487 |
the services shall be deemed employment if the contract of service | 1488 |
contemplates that substantially all of the services are to be | 1489 |
performed personally by the individual and that the individual | 1490 |
does not have a substantial investment in facilities used in | 1491 |
connection with the performance of the services other than in | 1492 |
facilities for transportation, and the services are not in the | 1493 |
nature of a single transaction that is not a part of a continuing | 1494 |
relationship with the person for whom the services are performed. | 1495 |
(ii) The service is not localized in any state, but some of | 1499 |
the service is performed in this state and either the base of | 1500 |
operations, or if there is no base of operations then the place | 1501 |
from which such service is directed or controlled, is in this | 1502 |
state or the base of operations or place from which such service | 1503 |
is directed or controlled is not in any state in which some part | 1504 |
of the service is performed but the individual's residence is in | 1505 |
this state. | 1506 |
(g) Service not covered under division (B)(2)(f)(ii) of this | 1507 |
section and performed entirely without this state, with respect to | 1508 |
no part of which contributions are required and paid under an | 1509 |
unemployment compensation law of any other state, the Virgin | 1510 |
Islands, Canada, or of the United States, if the individual | 1511 |
performing such service is a resident of this state and the | 1512 |
director approves the election of the employer for whom such | 1513 |
services are performed; or, if the individual is not a resident of | 1514 |
this state but the place from which the service is directed or | 1515 |
controlled is in this state, the entire services of such | 1516 |
individual shall be deemed to be employment subject to this | 1517 |
chapter, provided service is deemed to be localized within this | 1518 |
state if the service is performed entirely within this state or if | 1519 |
the service is performed both within and without this state but | 1520 |
the service performed without this state is incidental to the | 1521 |
individual's service within the state, for example, is temporary | 1522 |
or transitory in nature or consists of isolated transactions; | 1523 |
(h) Service of an individual who is a citizen of the United | 1524 |
States, performed outside the United States except in Canada after | 1525 |
December 31, 1971, or the Virgin Islands, after December 31, 1971, | 1526 |
and before the first day of January of the year following that in | 1527 |
which the United States secretary of labor approves the Virgin | 1528 |
Islands law for the first time, in the employ of an American | 1529 |
employer, other than service which is "employment" under divisions | 1530 |
(B)(2)(f) and (g) of this section or similar provisions of another | 1531 |
state's law, if: | 1532 |
(i) For the purposes of division (B)(2)(h) of this section, | 1547 |
the term "American employer" means an employer who is an | 1548 |
individual who is a resident of the United States; or a | 1549 |
partnership, if two-thirds or more of the partners are residents | 1550 |
of the United States; or a trust, if all of the trustees are | 1551 |
residents of the United States; or a corporation organized under | 1552 |
the laws of the United States or of any state, provided the term | 1553 |
"United States" includes the states, the District of Columbia, the | 1554 |
Commonwealth of Puerto Rico, and the Virgin Islands. | 1555 |
(j) Notwithstanding any other provisions of divisions (B)(1) | 1556 |
and (2) of this section, service, except for domestic service in a | 1557 |
private home not covered under division (A)(1)(c) of this section, | 1558 |
with respect to which a tax is required to be paid under any | 1559 |
federal law imposing a tax against which credit may be taken for | 1560 |
contributions required to be paid into a state unemployment fund, | 1561 |
or service, except for domestic service in a private home not | 1562 |
covered under division (A)(1)(c) of this section, which, as a | 1563 |
condition for full tax credit against the tax imposed by the | 1564 |
"Federal Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to | 1565 |
3311, is required to be covered under this chapter. | 1566 |
(k) Construction services performed by any individual under a | 1567 |
construction contract, as defined in section 4141.39 of the | 1568 |
Revised Code, if the director determines that the employer for | 1569 |
whom services are performed has the right to direct or control the | 1570 |
performance of the services and that the individuals who perform | 1571 |
the services receive remuneration for the services performed. The | 1572 |
director shall presume that the employer for whom services are | 1573 |
performed has the right to direct or control the performance of | 1574 |
the services if ten or more of the following criteria apply: | 1575 |
(l) Service performed by an individual in the employ of an | 1621 |
Indian tribe as defined by section 4(e) of the "Indian | 1622 |
Self-Determination and Education Assistance Act," 88 Stat. 2204 | 1623 |
(1975), 25 U.S.C.A. 450b(e), including any subdivision, | 1624 |
subsidiary, or business enterprise wholly owned by an Indian tribe | 1625 |
provided that the service is excluded from employment as defined | 1626 |
in the "Federal Unemployment Tax Act," 53 Stat. 183 (1939), 26 | 1627 |
U.S.C.A. 3301 and 3306(c)(7) and is not excluded under division | 1628 |
(B)(3) of this section. | 1629 |
(ii) By an individual who is enrolled at a nonprofit or | 1666 |
public educational institution which normally maintains a regular | 1667 |
faculty and curriculum and normally has a regularly organized body | 1668 |
of students in attendance at the place where its educational | 1669 |
activities are carried on as a student in a full-time program, | 1670 |
taken for credit at the institution, which combines academic | 1671 |
instruction with work experience, if the service is an integral | 1672 |
part of the program, and the institution has so certified to the | 1673 |
employer, provided that this subdivision shall not apply to | 1674 |
service performed in a program established for or on behalf of an | 1675 |
employer or group of employers. | 1676 |
(g) Service performed for one or more principals by an | 1681 |
individual who is compensated on a commission basis, who in the | 1682 |
performance of the work is master of the individual's own time and | 1683 |
efforts, and whose remuneration is wholly dependent on the amount | 1684 |
of effort the individual chooses to expend, and which service is | 1685 |
not subject to the "Federal Unemployment Tax Act," 53 Stat. 183 | 1686 |
(1939), 26 U.S.C.A. 3301 to 3311. Service performed after December | 1687 |
31, 1971: | 1688 |
(j) Service performed by an individual in the employ of any | 1717 |
organization exempt from income tax under section 501 of the | 1718 |
"Internal Revenue Code of 1954," if the remuneration for such | 1719 |
service does not exceed fifty dollars in any calendar quarter, or | 1720 |
if such service is in connection with the collection of dues or | 1721 |
premiums for a fraternal beneficial society, order, or association | 1722 |
and is performed away from the home office or is ritualistic | 1723 |
service in connection with any such society, order, or | 1724 |
association; | 1725 |
(k) Casual labor not in the course of an employer's trade or | 1726 |
business; incidental service performed by an officer, appraiser, | 1727 |
or member of a finance committee of a bank, building and loan | 1728 |
association, savings and loan association, or savings association | 1729 |
when the remuneration for such incidental service exclusive of the | 1730 |
amount paid or allotted for directors' fees does not exceed sixty | 1731 |
dollars per calendar quarter is casual labor; | 1732 |
(l) Service performed in the employ of a voluntary employees' | 1733 |
beneficial association providing for the payment of life, | 1734 |
sickness, accident, or other benefits to the members of such | 1735 |
association or their dependents or their designated beneficiaries, | 1736 |
if admission to a membership in such association is limited to | 1737 |
individuals who are officers or employees of a municipal or public | 1738 |
corporation, of a political subdivision of the state, or of the | 1739 |
United States and no part of the net earnings of such association | 1740 |
inures, other than through such payments, to the benefit of any | 1741 |
private shareholder or individual; | 1742 |
(n) Service performed in the employ of an instrumentality | 1746 |
wholly owned by a foreign government if the service is of a | 1747 |
character similar to that performed in foreign countries by | 1748 |
employees of the United States or of an instrumentality thereof | 1749 |
and if the director finds that the secretary of state of the | 1750 |
United States has certified to the secretary of the treasury of | 1751 |
the United States that the foreign government, with respect to | 1752 |
whose instrumentality exemption is claimed, grants an equivalent | 1753 |
exemption with respect to similar service performed in the foreign | 1754 |
country by employees of the United States and of instrumentalities | 1755 |
thereof; | 1756 |
(r) Service performed in the employ of the United States or | 1771 |
an instrumentality of the United States immune under the | 1772 |
Constitution of the United States from the contributions imposed | 1773 |
by this chapter, except that to the extent that congress permits | 1774 |
states to require any instrumentalities of the United States to | 1775 |
make payments into an unemployment fund under a state unemployment | 1776 |
compensation act, this chapter shall be applicable to such | 1777 |
instrumentalities and to services performed for such | 1778 |
instrumentalities in the same manner, to the same extent, and on | 1779 |
the same terms as to all other employers, individuals, and | 1780 |
services, provided that if this state is not certified for any | 1781 |
year by the proper agency of the United States under section 3304 | 1782 |
of the "Internal Revenue Code of 1954," the payments required of | 1783 |
such instrumentalities with respect to such year shall be refunded | 1784 |
by the director from the fund in the same manner and within the | 1785 |
same period as is provided in division (E) of section 4141.09 of | 1786 |
the Revised Code with respect to contributions erroneously | 1787 |
collected; | 1788 |
(u) Service that is performed by a nonresident alien | 1808 |
individual for the period the individual temporarily is present in | 1809 |
the United States as a nonimmigrant under division (F), (J), (M), | 1810 |
or (Q) of section 101(a)(15) of the "Immigration and Nationality | 1811 |
Act," 66 Stat. 163, 8 U.S.C.A. 1101, as amended, that is excluded | 1812 |
under section 3306(c)(19) of the "Federal Unemployment Tax Act," | 1813 |
53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311. | 1814 |
(v) Notwithstanding any other provisions of division (B)(3) | 1815 |
of this section, services that are excluded under divisions | 1816 |
(B)(3)(g), (j), (k), and (l) of this section shall not be excluded | 1817 |
from employment when performed for a nonprofit organization, as | 1818 |
defined in division (X) of this section, or for this state or its | 1819 |
instrumentalities, or for a political subdivision or its | 1820 |
instrumentalities or for Indian tribes; | 1821 |
(aa) Service performed after December 31, 1971, for a | 1847 |
nonprofit organization, this state or its instrumentalities, a | 1848 |
political subdivision or its instrumentalities, or an Indian tribe | 1849 |
as part of an unemployment work-relief or work-training program | 1850 |
assisted or financed in whole or in part by any federal agency or | 1851 |
an agency of a state or political subdivision, thereof, by an | 1852 |
individual receiving the work-relief or work-training. | 1853 |
(4) If the services performed during one half or more of any | 1856 |
pay period by an employee for the person employing that employee | 1857 |
constitute employment, all the services of such employee for such | 1858 |
period shall be deemed to be employment; but if the services | 1859 |
performed during more than one half of any such pay period by an | 1860 |
employee for the person employing that employee do not constitute | 1861 |
employment, then none of the services of such employee for such | 1862 |
period shall be deemed to be employment. As used in division | 1863 |
(B)(4) of this section, "pay period" means a period, of not more | 1864 |
than thirty-one consecutive days, for which payment of | 1865 |
remuneration is ordinarily made to the employee by the person | 1866 |
employing that employee. Division (B)(4) of this section does not | 1867 |
apply to services performed in a pay period by an employee for the | 1868 |
person employing that employee, if any of such service is excepted | 1869 |
by division (B)(3)(o) of this section. | 1870 |
(G)(1) "Wages" means remuneration paid to an employee by each | 1884 |
of the employee's employers with respect to employment; except | 1885 |
that wages shall not include that part of remuneration paid during | 1886 |
any calendar year to an individual by an employer or such | 1887 |
employer's predecessor in interest in the same business or | 1888 |
enterprise, which in any calendar year is in excess of eight | 1889 |
thousand two hundred fifty dollars on and after January 1, 1992; | 1890 |
eight thousand five hundred dollars on and after January 1, 1993; | 1891 |
eight thousand seven hundred fifty dollars on and after January 1, | 1892 |
1994; and nine thousand dollars on and after January 1, 1995. | 1893 |
Remuneration in excess of such amounts shall be deemed wages | 1894 |
subject to contribution to the same extent that such remuneration | 1895 |
is defined as wages under the "Federal Unemployment Tax Act," 84 | 1896 |
Stat. 714 (1970), 26 U.S.C.A. 3301 to 3311, as amended. The | 1897 |
remuneration paid an employee by an employer with respect to | 1898 |
employment in another state, upon which contributions were | 1899 |
required and paid by such employer under the unemployment | 1900 |
compensation act of such other state, shall be included as a part | 1901 |
of remuneration in computing the amount specified in this | 1902 |
division. | 1903 |
(2) Notwithstanding division (G)(1) of this section, if, as | 1904 |
of the computation date for any calendar year, the director | 1905 |
determines that the level of the unemployment compensation fund is | 1906 |
sixty per cent or more below the minimum safe level as defined in | 1907 |
section 4141.25 of the Revised Code, then, effective the first day | 1908 |
of January of the following calendar year, wages subject to this | 1909 |
chapter shall not include that part of remuneration paid during | 1910 |
any calendar year to an individual by an employer or such | 1911 |
employer's predecessor in interest in the same business or | 1912 |
enterprise which is in excess of nine thousand dollars. The | 1913 |
increase in the dollar amount of wages subject to this chapter | 1914 |
under this division shall remain in effect from the date of the | 1915 |
director's determination pursuant to division (G)(2) of this | 1916 |
section and thereafter notwithstanding the fact that the level in | 1917 |
the fund may subsequently become less than sixty per cent below | 1918 |
the minimum safe level. | 1919 |
(H)(1) "Remuneration" means all compensation for personal | 1920 |
services, including commissions and bonuses and the cash value of | 1921 |
all compensation in any medium other than cash, except that in the | 1922 |
case of agricultural or domestic service, "remuneration" includes | 1923 |
only cash remuneration. Gratuities customarily received by an | 1924 |
individual in the course of the individual's employment from | 1925 |
persons other than the individual's employer and which are | 1926 |
accounted for by such individual to the individual's employer are | 1927 |
taxable wages. | 1928 |
(1) "Qualifying week" means any calendar week in an | 1976 |
individual's base period with respect to which the individual | 1977 |
earns or is paid remuneration in employment subject to this | 1978 |
chapter. A calendar week with respect to which an individual earns | 1979 |
remuneration but for which payment was not made within the base | 1980 |
period, when necessary to qualify for benefit rights, may be | 1981 |
considered to be a qualifying week. The number of qualifying weeks | 1982 |
which may be established in a calendar quarter shall not exceed | 1983 |
the number of calendar weeks in the quarter. | 1984 |
(2) If an individual does not have sufficient qualifying | 1998 |
weeks and wages in the base period to qualify for benefit rights, | 1999 |
the individual's base period shall be the four most recently | 2000 |
completed calendar quarters preceding the first day of the | 2001 |
individual's benefit year. Such base period shall be known as the | 2002 |
"alternate base period." If information as to weeks and wages for | 2003 |
the most recent quarter of the alternate base period is not | 2004 |
available to the director from the regular quarterly reports of | 2005 |
wage information, which are systematically accessible, the | 2006 |
director may, consistent with the provisions of section 4141.28 of | 2007 |
the Revised Code, base the determination of eligibility for | 2008 |
benefits on the affidavit of the claimant with respect to weeks | 2009 |
and wages for that calendar quarter. The claimant shall furnish | 2010 |
payroll documentation, where available, in support of the | 2011 |
affidavit. The determination based upon the alternate base period | 2012 |
as it relates to the claimant's benefit rights, shall be amended | 2013 |
when the quarterly report of wage information from the employer is | 2014 |
timely received and that information causes a change in the | 2015 |
determination. As provided in division (B) of section 4141.28 of | 2016 |
the Revised Code, any benefits paid and charged to an employer's | 2017 |
account, based upon a claimant's affidavit, shall be adjusted | 2018 |
effective as of the beginning of the claimant's benefit year. No | 2019 |
calendar quarter in a base period or alternate base period shall | 2020 |
be used to establish a subsequent benefit year. | 2021 |
(R)(1) "Benefit year" with respect to an individual means the | 2030 |
fifty-two week period beginning with the first day of that week | 2031 |
with respect to which the individual first files a valid | 2032 |
application for determination of benefit rights, and thereafter | 2033 |
the fifty-two week period beginning with the first day of that | 2034 |
week with respect to which the individual next files a valid | 2035 |
application for determination of benefit rights after the | 2036 |
termination of the individual's last preceding benefit year, | 2037 |
except that the application shall not be considered valid unless | 2038 |
the individual has had employment in six weeks that is subject to | 2039 |
this chapter or the unemployment compensation act of another | 2040 |
state, or the United States, and has, since the beginning of the | 2041 |
individual's previous benefit year, in the employment earned three | 2042 |
times the average weekly wage determined for the previous benefit | 2043 |
year. The "benefit year" of a combined wage claim, as described in | 2044 |
division (H) of section 4141.43 of the Revised Code, shall be the | 2045 |
benefit year prescribed by the law of the state in which the claim | 2046 |
is allowed. Any application for determination of benefit rights | 2047 |
made in accordance with section 4141.28 of the Revised Code is | 2048 |
valid if the individual filing such application is unemployed, has | 2049 |
been employed by an employer or employers subject to this chapter | 2050 |
in at least twenty qualifying weeks within the individual's base | 2051 |
period, and has earned or been paid remuneration at an average | 2052 |
weekly wage of not less than twenty-seven and one-half per cent of | 2053 |
the statewide average weekly wage for such weeks. For purposes of | 2054 |
determining whether an individual has had sufficient employment | 2055 |
since the beginning of the individual's previous benefit year to | 2056 |
file a valid application, "employment" means the performance of | 2057 |
services for which remuneration is payable. | 2058 |
(2) Effective for benefit years beginning on and after | 2059 |
December 26, 2004, any application for determination of benefit | 2060 |
rights made in accordance with section 4141.28 of the Revised Code | 2061 |
is valid if the individual satisfies the criteria described in | 2062 |
division (R)(1) of this section, and if the reason for the | 2063 |
individual's separation from employment is not disqualifying | 2064 |
pursuant to division (D)(2) of section 4141.29 or section 4141.291 | 2065 |
of the Revised Code. A disqualification imposed pursuant to | 2066 |
division (D)(2) of section 4141.29 or section 4141.291 of the | 2067 |
Revised Code must be removed as provided in those sections as a | 2068 |
requirement of establishing a valid application for benefit years | 2069 |
beginning on and after December 26, 2004. | 2070 |
(3) The statewide average weekly wage shall be calculated by | 2071 |
the director once a year based on the twelve-month period ending | 2072 |
the thirtieth day of June, as set forth in division (B)(3) of | 2073 |
section 4141.30 of the Revised Code, rounded down to the nearest | 2074 |
dollar. Increases or decreases in the amount of remuneration | 2075 |
required to have been earned or paid in order for individuals to | 2076 |
have filed valid applications shall become effective on Sunday of | 2077 |
the calendar week in which the first day of January occurs that | 2078 |
follows the twelve-month period ending the thirtieth day of June | 2079 |
upon which the calculation of the statewide average weekly wage | 2080 |
was based. | 2081 |
(4) As used in this division, an individual is "unemployed" | 2082 |
if, with respect to the calendar week in which such application is | 2083 |
filed, the individual is "partially unemployed" or "totally | 2084 |
unemployed" as defined in this section or if, prior to filing the | 2085 |
application, the individual was separated from the individual's | 2086 |
most recent work for any reason which terminated the individual's | 2087 |
employee-employer relationship, or was laid off indefinitely or | 2088 |
for a definite period of seven or more days. | 2089 |
(1) On a farm, in the employ of any person, in connection | 2103 |
with cultivating the soil, or in connection with raising or | 2104 |
harvesting any agricultural or horticultural commodity, including | 2105 |
the raising, shearing, feeding, caring for, training, and | 2106 |
management of livestock, bees, poultry, and fur-bearing animals | 2107 |
and wildlife; | 2108 |
(3) In connection with the production or harvesting of any | 2115 |
commodity defined as an agricultural commodity in section 15 (g) | 2116 |
of the "Agricultural Marketing Act," 46 Stat. 1550 (1931), 12 | 2117 |
U.S.C. 1141j, as amended, or in connection with the ginning of | 2118 |
cotton, or in connection with the operation or maintenance of | 2119 |
ditches, canals, reservoirs, or waterways, not owned or operated | 2120 |
for profit, used exclusively for supplying and storing water for | 2121 |
farming purposes; | 2122 |
(4) In the employ of the operator of a farm in handling, | 2123 |
planting, drying, packing, packaging, processing, freezing, | 2124 |
grading, storing, or delivering to storage or to market or to a | 2125 |
carrier for transportation to market, in its unmanufactured state, | 2126 |
any agricultural or horticultural commodity, but only if the | 2127 |
operator produced more than one half of the commodity with respect | 2128 |
to which such service is performed; | 2129 |
As used in division (V) of this section, "farm" includes | 2143 |
stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, | 2144 |
plantations, ranches, nurseries, ranges, greenhouses, or other | 2145 |
similar structures used primarily for the raising of agricultural | 2146 |
or horticultural commodities and orchards. | 2147 |
(3) For the purposes of this division, any individual who is | 2203 |
furnished by a crew leader to perform service in agricultural | 2204 |
labor for any other employer or farm operator and who is not | 2205 |
treated as in the employment of the crew leader under division | 2206 |
(BB)(2) of this section shall be treated as the employee of the | 2207 |
other employer or farm operator and not of the crew leader. The | 2208 |
other employer or farm operator shall be treated as having paid | 2209 |
cash remuneration to the individual in an amount equal to the | 2210 |
amount of cash remuneration paid to the individual by the crew | 2211 |
leader, either on the crew leader's own behalf or on behalf of the | 2212 |
other employer or farm operator, for the service in agricultural | 2213 |
labor performed for the other employer or farm operator. | 2214 |
Sec. 4141.09. (A) There is hereby created an unemployment | 2261 |
compensation fund to be administered by the state without | 2262 |
liability on the part of the state beyond the amounts paid into | 2263 |
the fund and earned by the fund. The unemployment compensation | 2264 |
fund shall consist of all contributions, payments in lieu of | 2265 |
contributions described in sections 4141.241 and 4141.242 of the | 2266 |
Revised Code, reimbursements of the federal share of extended | 2267 |
benefits described in section 4141.301 of the Revised Code, | 2268 |
collected under sections 4141.01 to 4141.464141.57 of the Revised | 2269 |
Code, together with all interest earned upon any moneys deposited | 2270 |
with the secretary of the treasury of the United States to the | 2271 |
credit of the account of this state in the unemployment trust fund | 2272 |
established and maintained pursuant to section 904 of the "Social | 2273 |
Security Act," any property or securities acquired through the use | 2274 |
of moneys belonging to the fund, and all earnings of such property | 2275 |
or securities. The unemployment compensation fund shall be used to | 2276 |
pay benefits, short-time compensation benefits, and refunds as | 2277 |
provided by such sections and for no other purpose. | 2278 |
(B) The treasurer of state shall be the custodian of the | 2279 |
unemployment compensation fund and shall administer such fund in | 2280 |
accordance with the directions of the director of job and family | 2281 |
services. All disbursements therefrom shall be paid by the | 2282 |
treasurer of state on warrants drawn by the director. Such | 2283 |
warrants may bear the facsimile signature of the director printed | 2284 |
thereon and that of a deputy or other employee of the director | 2285 |
charged with the duty of keeping the account of the unemployment | 2286 |
compensation fund and with the preparation of warrants for the | 2287 |
payment of benefits to the persons entitled thereto. Moneys in the | 2288 |
clearing and benefit accounts shall not be commingled with other | 2289 |
state funds, except as provided in division (C) of this section, | 2290 |
but shall be maintained in separate accounts on the books of the | 2291 |
depositary bank. Such money shall be secured by the depositary | 2292 |
bank to the same extent and in the same manner as required by | 2293 |
sections 135.01 to 135.21 of the Revised Code; and collateral | 2294 |
pledged for this purpose shall be kept separate and distinct from | 2295 |
any collateral pledged to secure other funds of this state. All | 2296 |
sums recovered for losses sustained by the unemployment | 2297 |
compensation fund shall be deposited therein. The treasurer of | 2298 |
state shall be liable on the treasurer's official bond for the | 2299 |
faithful performance of the treasurer's duties in connection with | 2300 |
the unemployment compensation fund, such liability to exist in | 2301 |
addition to any liability upon any separate bond. | 2302 |
(C) The treasurer of state shall maintain within the | 2303 |
unemployment compensation fund three separate accounts which shall | 2304 |
be a clearing account, a trust fund account, and a benefit | 2305 |
account. All moneys payable to the unemployment compensation fund, | 2306 |
upon receipt by the director, shall be forwarded to the treasurer | 2307 |
of state, who shall immediately deposit them in the clearing | 2308 |
account. Refunds of contributions, or payments in lieu of | 2309 |
contributions, payable pursuant to division (E) of this section | 2310 |
may be paid from the clearing account upon warrants signed by a | 2311 |
deputy or other employee of the director charged with the duty of | 2312 |
keeping the record of the clearing account and with the | 2313 |
preparation of warrants for the payment of refunds to persons | 2314 |
entitled thereto. After clearance thereof, all moneys in the | 2315 |
clearing account shall be deposited with the secretary of the | 2316 |
treasury of the United States to the credit of the account of this | 2317 |
state in the unemployment trust fund established and maintained | 2318 |
pursuant to section 904 of the "Social Security Act," in | 2319 |
accordance with requirements of the "Federal Unemployment Tax | 2320 |
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301, 3304(a)(3), any law | 2321 |
in this state relating to the deposit, administration, release, or | 2322 |
disbursement of moneys in the possession or custody of this state | 2323 |
to the contrary notwithstanding. The benefit account shall consist | 2324 |
of all moneys requisitioned from this state's account in the | 2325 |
unemployment trust fund. Federal funds may be deposited, at the | 2326 |
director's discretion, into the benefit account. Any funds | 2327 |
deposited into the benefit account shall be disbursed solely for | 2328 |
payment of benefits under a federal program administered by this | 2329 |
state and for no other purpose. Moneys in the clearing and benefit | 2330 |
accounts may be deposited by the treasurer of state, under the | 2331 |
direction of the director, in any bank or public depositary in | 2332 |
which general funds of the state may be deposited, but no public | 2333 |
deposit insurance charge or premium shall be paid out of the fund. | 2334 |
(D) Moneys shall be requisitioned from this state's account | 2335 |
in the unemployment trust fund solely for the payment of benefits | 2336 |
and in accordance with regulations prescribed by the director. The | 2337 |
director shall requisition from the unemployment trust fund such | 2338 |
amounts, not exceeding the amount standing to this state's account | 2339 |
therein, as are deemed necessary for the payment of benefits for a | 2340 |
reasonable future period. Upon receipt thereof, the treasurer of | 2341 |
state shall deposit such moneys in the benefit account. | 2342 |
Expenditures of such money in the benefit account and refunds from | 2343 |
the clearing account shall not require specific appropriations or | 2344 |
other formal release by state officers of money in their custody. | 2345 |
Any balance of moneys requisitioned from the unemployment trust | 2346 |
fund which remains unclaimed or unpaid in the benefit account | 2347 |
after the expiration of the period for which such sums were | 2348 |
requisitioned shall either be deducted from estimates for and may | 2349 |
be utilized for the payment of benefits during succeeding periods, | 2350 |
or, in the discretion of the director, shall be redeposited with | 2351 |
the secretary of the treasury of the United States to the credit | 2352 |
of this state's account in the unemployment trust fund, as | 2353 |
provided in division (C) of this section. Unclaimed or unpaid | 2354 |
federal funds redeposited with the secretary of the treasury of | 2355 |
the United States shall be credited to the appropriate federal | 2356 |
account. | 2357 |
(E) No claim for an adjustment or a refund on contribution, | 2358 |
payment in lieu of contributions, interest, or forfeiture alleged | 2359 |
to have been erroneously or illegally assessed or collected, or | 2360 |
alleged to have been collected without authority, and no claim for | 2361 |
an adjustment or a refund of any sum alleged to have been | 2362 |
excessive or in any manner wrongfully collected shall be allowed | 2363 |
unless an application, in writing, therefor is made within four | 2364 |
years from the date on which such payment was made. If the | 2365 |
director determines that such contribution, payment in lieu of | 2366 |
contributions, interest, or forfeiture, or any portion thereof, | 2367 |
was erroneously collected, the director shall allow such employer | 2368 |
to make an adjustment thereof without interest in connection with | 2369 |
subsequent contribution payments, or payments in lieu of | 2370 |
contributions, by the employer, or the director may refund said | 2371 |
amount, without interest, from the clearing account of the | 2372 |
unemployment compensation fund, except as provided in division (B) | 2373 |
of section 4141.11 of the Revised Code. For like cause and within | 2374 |
the same period, adjustment or refund may be so made on the | 2375 |
director's own initiative. An overpayment of contribution, payment | 2376 |
in lieu of contributions, interest, or forfeiture for which an | 2377 |
employer has not made application for refund prior to the date of | 2378 |
sale of the employer's business shall accrue to the employer's | 2379 |
successor in interest. | 2380 |
An application for an adjustment or a refund, or any portion | 2381 |
thereof, that is rejected is binding upon the employer unless, | 2382 |
within thirty days after the mailing of a written notice of | 2383 |
rejection to the employer's last known address, or, in the absence | 2384 |
of mailing of such notice, within thirty days after the delivery | 2385 |
of such notice, the employer files an application for a review and | 2386 |
redetermination setting forth the reasons therefor. The director | 2387 |
shall promptly examine the application for review and | 2388 |
redetermination, and if a review is granted, the employer shall be | 2389 |
promptly notified thereof, and shall be granted an opportunity for | 2390 |
a prompt hearing. | 2391 |
(F) If the director finds that contributions have been paid | 2392 |
to the director in error, and that such contributions should have | 2393 |
been paid to a department of another state or of the United States | 2394 |
charged with the administration of an unemployment compensation | 2395 |
law, the director may upon request by such department or upon the | 2396 |
director's own initiative transfer to such department the amount | 2397 |
of such contributions, less any benefits paid to claimants whose | 2398 |
wages were the basis for such contributions. The director may | 2399 |
request and receive from such department any contributions or | 2400 |
adjusted contributions paid in error to such department which | 2401 |
should have been paid to the director. | 2402 |
(G) In accordance with section 303(c)(3) of the Social | 2403 |
Security Act, and section 3304(a)(17) of the Internal Revenue Code | 2404 |
of 1954 for continuing certification of Ohio unemployment | 2405 |
compensation laws for administrative grants and for tax credits, | 2406 |
any interest required to be paid on advances under Title XII of | 2407 |
the Social Security Act shall be paid in a timely manner and shall | 2408 |
not be paid, directly or indirectly, by an equivalent reduction in | 2409 |
the Ohio unemployment taxes or otherwise, by the state from | 2410 |
amounts in the unemployment compensation fund. | 2411 |
(H) The treasurer of state, under the direction of the | 2412 |
director and in accordance with the "Cash Management Improvement | 2413 |
Act of 1990," 104 Stat. 1061, 31 U.S.C.A. 335, 6503, shall deposit | 2414 |
amounts of interest earned by the state on funds in the benefit | 2415 |
account established pursuant to division (C) of this section into | 2416 |
the department of job and family services banking fees fund, which | 2417 |
is hereby created in the state treasury for the purpose of paying | 2418 |
related banking costs incurred by the state for the period for | 2419 |
which the interest is calculated, except that if the deposited | 2420 |
interest exceeds the banking costs incurred by the state for the | 2421 |
period for which the interest is calculated, the treasurer of | 2422 |
state shall deposit the excess interest into the unemployment | 2423 |
trust fund. | 2424 |
(I) The treasurer of state, under the direction of the | 2425 |
director, shall deposit federal funds received by the director for | 2426 |
training and administration and for payment of benefits, job | 2427 |
search, relocation, transportation, and subsistence allowances | 2428 |
pursuant to the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. | 2429 |
2101, as amended; the "North American Free Trade Agreement | 2430 |
Implementation Act," 107 Stat. 2057 (1993), 19 U.S.C.A. 3301, as | 2431 |
amended; and the "Trade Act of 2002," 116 Stat. 993, 19 U.S.C.A. | 2432 |
3801, as amended, into the Trade Act training and administration | 2433 |
account, which is hereby created for the purpose of making | 2434 |
payments specified under those acts. The treasurer of state, under | 2435 |
the direction of the director, may transfer funds from the Trade | 2436 |
Act training and administration account to the benefit account for | 2437 |
the purpose of making any payments directly to claimants for | 2438 |
benefits, job search, relocation, transportation, and subsistence | 2439 |
allowances, as specified by those acts. | 2440 |
Sec. 4141.241. (A)(1) Any nonprofit organization described | 2441 |
in division (X) of section 4141.01 of the Revised Code, which | 2442 |
becomes subject to this chapter on or after January 1, 1972, shall | 2443 |
pay contributions under section 4141.25 of the Revised Code, | 2444 |
unless it elects, in accordance with this division, to pay to the | 2445 |
director of job and family services for deposit in the | 2446 |
unemployment compensation fund an amount in lieu of contributions | 2447 |
equal to the amount of regular benefits plus one half of extended | 2448 |
benefits paid from that fund that is attributable to service in | 2449 |
the employ of the nonprofit organization to individuals whose | 2450 |
service, during the base period of the claims, was within the | 2451 |
effective period of such election. | 2452 |
(2) Any nonprofit organization which becomes subject to this | 2453 |
chapter after January 1, 1972, may elect to become liable for | 2454 |
payments in lieu of contributions for a period of not less than | 2455 |
the remainder of that calendar year and the next calendar year, | 2456 |
beginning with the date on which such subjectivity begins, by | 2457 |
filing a written notice of its election with the director not | 2458 |
later than thirty days immediately following the date of the | 2459 |
determination of such subjectivity. | 2460 |
(4) Any nonprofit organization which has been paying | 2468 |
contributions for a period subsequent to January 1, 1972, may | 2469 |
change to a reimbursable basis by filing with the director, not | 2470 |
later than thirty days prior to the beginning of any calendar | 2471 |
year, a written notice of election to become liable for payments | 2472 |
in lieu of contributions. The election shall not be terminable by | 2473 |
the organization during that calendar year and the next calendar | 2474 |
year. | 2475 |
(5) The director, in accordance with any rules the director | 2476 |
prescribes, shall notify each nonprofit organization of any | 2477 |
determination which the director may make of its status as an | 2478 |
employer and of the effective date of any election which it makes | 2479 |
and of any termination of the election. Any determinations shall | 2480 |
be subject to reconsideration, appeal, and review in accordance | 2481 |
with section 4141.26 of the Revised Code. | 2482 |
(B) Except as provided in division (I)(J) of section 4141.29 | 2483 |
of the Revised Code, benefits based on service with a nonprofit | 2484 |
organization granted a reimbursing status under this section shall | 2485 |
be payable in the same amount, on the same terms, and subject to | 2486 |
the same conditions, as benefits payable on the basis of other | 2487 |
service subject to this chapter. Payments in lieu of contributions | 2488 |
shall be made in accordance with this division and division (D) of | 2489 |
section 4141.24 of the Revised Code. | 2490 |
(1)(a) At the end of each calendar quarter, or at the end of | 2491 |
any other period as determined by the director under division | 2492 |
(D)(4) of section 4141.24 of the Revised Code, the director shall | 2493 |
bill each nonprofit organization or group of such organizations | 2494 |
which has elected to make payments in lieu of contributions for an | 2495 |
amount equal to the full amount of regular benefits plus one half | 2496 |
of the amount of extended benefits paid during such quarter or | 2497 |
other prescribed period which is attributable to service in the | 2498 |
employ of such organization. | 2499 |
(b) In the computation of the amount of benefits to be | 2500 |
charged to employers liable for payments in lieu of contributions, | 2501 |
all benefits attributable to service described in division | 2502 |
(B)(1)(a) of this section shall be computed and charged to such | 2503 |
organization as described in division (D) of section 4141.24 of | 2504 |
the Revised Code, and, except as provided in division (D)(2) of | 2505 |
section 4141.24 of the Revised Code, no portion of the amount may | 2506 |
be charged to the mutualized account established by division (B) | 2507 |
of section 4141.25 of the Revised Code. | 2508 |
(c) The director may prescribe regulations under which | 2509 |
organizations, which have elected to make payments in lieu of | 2510 |
contributions may request permission to make such payments in | 2511 |
equal installments throughout the year with an adjustment at the | 2512 |
end of the year for any excess or shortage of the amount of such | 2513 |
installment payments compared with the total amount of benefits | 2514 |
actually charged the organization's account during the year. In | 2515 |
making any adjustment, where the total installment payments are | 2516 |
less than the actual benefits charged, the organization shall be | 2517 |
liable for payment of the unpaid balance in accordance with | 2518 |
division (B)(2) of this section. If the total installment payments | 2519 |
exceed the actual benefits charged, all or part of the excess may, | 2520 |
at the discretion of the director, be refunded or retained in the | 2521 |
fund as part of the payments which may be required in the next | 2522 |
year. | 2523 |
(5) Past-due payments of amounts in lieu of contributions | 2538 |
shall be subject to the same interest rates and collection | 2539 |
procedures that apply to past-due contributions under sections | 2540 |
4141.23 and 414.27 of the Revised Code. In case of failure to file | 2541 |
a required quarterly report within the time prescribed by the | 2542 |
director, the nonprofit organization shall be subject to a | 2543 |
forfeiture pursuant to section 4141.20 of the Revised Code for | 2544 |
each quarterly report that is not timely filed. | 2545 |
(C)(1) Any nonprofit organization, or group of such | 2555 |
organizations approved under division (D) of this section, that | 2556 |
elects to become liable for payments in lieu of contributions | 2557 |
shall be required within thirty days after the effective date of | 2558 |
its election, to execute and file with the director a surety bond | 2559 |
approved by the director or it may elect instead to deposit with | 2560 |
the director approved municipal or other bonds, or approved | 2561 |
securities, or a combination thereof, or other forms of collateral | 2562 |
security approved by the director. | 2563 |
(2)(a) The amount of the bond or deposit required shall be | 2564 |
equal to three per cent of the organization's wages paid for | 2565 |
employment as defined in section 4141.01 of the Revised Code that | 2566 |
would have been taxable had the organization been a subject | 2567 |
employer during the four calendar quarters immediately preceding | 2568 |
the effective date of the election, or the amount established by | 2569 |
the director within the limitation provided in division (C)(2)(d) | 2570 |
of this section, whichever is the less. The effective date of the | 2571 |
amount of the bond or other collateral security required after the | 2572 |
employer initially is determined by the director to be liable for | 2573 |
payments in lieu of contributions shall be the renewal date in the | 2574 |
case of a bond or the biennial anniversary of the effective date | 2575 |
of election in the case of deposit of securities or other forms of | 2576 |
collateral security approved by the director, whichever date shall | 2577 |
be most recent and applicable. If the nonprofit organization did | 2578 |
not pay wages in each of such four calendar quarters, the amount | 2579 |
of the bond or deposit shall be as determined by the director | 2580 |
under regulations prescribed for this purpose. | 2581 |
(b) Any bond or other form of collateral security approved by | 2582 |
the director deposited under this division shall be in force for a | 2583 |
period of not less than two calendar years and shall be renewed | 2584 |
with the approval of the director, at such times as the director | 2585 |
may prescribe, but not less frequently than at two-year intervals | 2586 |
as long as the organization continues to be liable for payments in | 2587 |
lieu of contributions. The director shall require adjustments to | 2588 |
be made in a previously filed bond or other form of collateral | 2589 |
security as the director considers appropriate. If the bond or | 2590 |
other form of collateral security is to be increased, the adjusted | 2591 |
bond or collateral security shall be filed by the organization | 2592 |
within thirty days of the date that notice of the required | 2593 |
adjustment was mailed or otherwise delivered to it. Failure by any | 2594 |
organization covered by such bond or collateral security to pay | 2595 |
the full amount of payments in lieu of contributions when due, | 2596 |
together with any applicable interest provided for in division | 2597 |
(B)(5) of this section, shall render the surety liable on the bond | 2598 |
or collateral security to the extent of the bond or collateral | 2599 |
security, as though the surety was the organization. | 2600 |
(c) Any securities accepted in lieu of surety bond by the | 2601 |
director shall be deposited with the treasurer of state who shall | 2602 |
have custody thereof and retain the same in the treasurer of | 2603 |
state's possession, or release them, according to conditions | 2604 |
prescribed by regulations of the director. Income from the | 2605 |
securities, held in custody by the treasurer of state, shall | 2606 |
accrue to the benefit of the depositor and shall be distributed to | 2607 |
the depositor in the absence of any notification from the director | 2608 |
that the depositor is in default on any payment owed to the | 2609 |
director. The director may require the sale of any such bonds to | 2610 |
the extent necessary to satisfy any unpaid payments in lieu of | 2611 |
contributions, together with any applicable interest or | 2612 |
forfeitures provided for in division (B)(5) of this section. The | 2613 |
director shall require the employer within thirty days following | 2614 |
any sale of deposited securities, under this subdivision, to | 2615 |
deposit additional securities, surety bond, or combination of | 2616 |
both, to make whole the employer's security deposit at the | 2617 |
approved level. Any cash remaining from the sale of such | 2618 |
securities may, at the discretion of the director, be refunded in | 2619 |
whole or in part, or be paid into the unemployment compensation | 2620 |
fund to cover future payments required of the organization. | 2621 |
(d) The required bond or deposit for any nonprofit | 2622 |
organization, or group of such organizations approved by the | 2623 |
director under division (D) of this section, that is determined by | 2624 |
the director to be liable for payments in lieu of contributions | 2625 |
effective beginning on and after January 1, 1996, but prior to | 2626 |
January 1, 1998, and the required bond or deposit for any renewed | 2627 |
elections under division (C)(2)(b) of this section effective | 2628 |
during that period shall not exceed one million two hundred fifty | 2629 |
thousand dollars. The required bond or deposit for any nonprofit | 2630 |
organization, or group of such organizations approved by the | 2631 |
director under division (D) of this section, that is determined to | 2632 |
be liable for payments in lieu of contributions effective on and | 2633 |
after January 1, 1998, and the required bond or deposit for any | 2634 |
renewed elections effective on and after January 1, 1998, shall | 2635 |
not exceed two million dollars. | 2636 |
(3) If any nonprofit organization fails to file a bond or | 2637 |
make a deposit, or to file a bond in an increased amount or to | 2638 |
make whole the amount of a previously made deposit, as provided | 2639 |
under this division, the director may terminate the organization's | 2640 |
election to make payments in lieu of contributions effective for | 2641 |
the quarter following such failure and the termination shall | 2642 |
continue for not less than the remainder of that calendar year and | 2643 |
the next calendar year, beginning with the quarter in which the | 2644 |
termination becomes effective; except that the director may extend | 2645 |
for good cause the applicable filing, deposit, or adjustment | 2646 |
period by not more than thirty days. | 2647 |
(D)(1) Two or more nonprofit organizations that have become | 2648 |
liable for payments in lieu of contributions, in accordance with | 2649 |
division (A) of this section, may file a joint application to the | 2650 |
director for the establishment of the group account for the | 2651 |
purpose of sharing the cost of benefits paid that are attributable | 2652 |
to service in the employ of those employers. Notwithstanding | 2653 |
division (E) of section 4141.242 of the Revised Code, hospitals | 2654 |
operated by this state or a political subdivision may participate | 2655 |
in a group account with nonprofit organizations under the | 2656 |
procedures set forth in this section. Each application shall | 2657 |
identify and authorize a group representative to act as the | 2658 |
group's agent for the purposes of this division. | 2659 |
(3) Upon establishment of the account, each member of the | 2667 |
group shall be liable, in the event that the group representative | 2668 |
fails to pay any bill issued to it pursuant to division (B) of | 2669 |
this section, for payments in lieu of contributions with respect | 2670 |
to each calendar quarter in the amount that bears the same ratio | 2671 |
to the total benefits paid in the quarter that are attributable to | 2672 |
service performed in the employ of all members of the group as the | 2673 |
total wages paid for service in employment by the member in the | 2674 |
quarter bear to the total wages paid during the quarter for | 2675 |
service performed in the employ of all members of the group. | 2676 |
(4) The director shall adopt regulations as considered | 2677 |
necessary with respect to the following: applications for | 2678 |
establishment, bonding, maintenance, and termination of group | 2679 |
accounts that are authorized by this section; addition of new | 2680 |
members to and withdrawal of active members from such accounts; | 2681 |
and the determination of the amounts that are payable under this | 2682 |
division by the group representative and in the event of default | 2683 |
in payment by the group representative, members of the group, and | 2684 |
the time and manner of payments. | 2685 |
(ii) The director may waive the requirement that a claimant | 2708 |
be actively seeking work when the director finds that the | 2709 |
individual has been laid off and the employer who laid the | 2710 |
individual off has notified the director within ten days after the | 2711 |
layoff, that work is expected to be available for the individual | 2712 |
within a specified number of days not to exceed forty-five | 2713 |
calendar days following the last day the individual worked. In the | 2714 |
event the individual is not recalled within the specified period, | 2715 |
this waiver shall cease to be operative with respect to that | 2716 |
layoff. | 2717 |
(b) The individual shall be instructed as to the efforts that | 2718 |
the individual must make in the search for suitable work, except | 2719 |
where the active search for work requirement has been waived under | 2720 |
division (A)(4)(a) of this section, and shall keep a record of | 2721 |
where and when the individual has sought work in complying with | 2722 |
those instructions and, upon request, shall produce that record | 2723 |
for examination by the director. | 2724 |
(c) An individual who is attending a training course approved | 2725 |
by the director meets the requirement of this division, if | 2726 |
attendance was recommended by the director and the individual is | 2727 |
regularly attending the course and is making satisfactory | 2728 |
progress. An individual also meets the requirements of this | 2729 |
division if the individual is participating and advancing in a | 2730 |
training program, as defined in division (P) of section 5709.61 of | 2731 |
the Revised Code, and if an enterprise, defined in division (B) of | 2732 |
section 5709.61 of the Revised Code, is paying all or part of the | 2733 |
cost of the individual's participation in the training program | 2734 |
with the intention of hiring the individual for employment as a | 2735 |
new employee, as defined in division (L) of section 5709.61 of the | 2736 |
Revised Code, for at least ninety days after the individual's | 2737 |
completion of the training program. | 2738 |
(d) An individual who becomes unemployed while attending a | 2739 |
regularly established school and whose base period qualifying | 2740 |
weeks were earned in whole or in part while attending that school, | 2741 |
meets the availability and active search for work requirements of | 2742 |
division (A)(4)(a) of this section if the individual regularly | 2743 |
attends the school during weeks with respect to which the | 2744 |
individual claims unemployment benefits and makes self available | 2745 |
on any shift of hours for suitable employment with the | 2746 |
individual's most recent employer or any other employer in the | 2747 |
individual's base period, or for any other suitable employment to | 2748 |
which the individual is directed, under this chapter. | 2749 |
(f) Notwithstanding any other provisions of this section, no | 2753 |
otherwise eligible individual shall be denied benefits for any | 2754 |
week because the individual is in training approved under section | 2755 |
236(a)(1) of the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. | 2756 |
2296, nor shall that individual be denied benefits by reason of | 2757 |
leaving work to enter such training, provided the work left is not | 2758 |
suitable employment, or because of the application to any week in | 2759 |
training of provisions in this chapter, or any applicable federal | 2760 |
unemployment compensation law, relating to availability for work, | 2761 |
active search for work, or refusal to accept work. | 2762 |
For the purposes of division (A)(4)(f) of this section, | 2763 |
"suitable employment" means with respect to an individual, work of | 2764 |
a substantially equal or higher skill level than the individual's | 2765 |
past adversely affected employment, as defined for the purposes of | 2766 |
the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. 2101, and | 2767 |
wages for such work at not less than eighty per cent of the | 2768 |
individual's average weekly wage as determined for the purposes of | 2769 |
that federal act. | 2770 |
(5) Is unable to obtain suitable work. An individual who is | 2771 |
provided temporary work assignments by the individual's employer | 2772 |
under agreed terms and conditions of employment, and who is | 2773 |
required pursuant to those terms and conditions to inquire with | 2774 |
the individual's employer for available work assignments upon the | 2775 |
conclusion of each work assignment, is not considered unable to | 2776 |
obtain suitable employment if suitable work assignments are | 2777 |
available with the employer but the individual fails to contact | 2778 |
the employer to inquire about work assignments. | 2779 |
(6) Participates in reemployment services, such as job search | 2780 |
assistance services, if the individual has been determined to be | 2781 |
likely to exhaust benefits under this chapter, including | 2782 |
compensation payable pursuant to 5 U.S.C.A. Chapter 85, other than | 2783 |
extended compensation, and needs reemployment services pursuant to | 2784 |
the profiling system established by the director under division | 2785 |
(K)(L) of this section, unless the director determines that: | 2786 |
(C) The waiting period for total or partial unemployment | 2797 |
shall commence on the first day of the first week with respect to | 2798 |
which the individual first files a claim for benefits at an | 2799 |
employment office or other place of registration maintained or | 2800 |
designated by the director or on the first day of the first week | 2801 |
with respect to which the individual has otherwise filed a claim | 2802 |
for benefits in accordance with the rules of the department of job | 2803 |
and family services, provided such claim is allowed by the | 2804 |
director. | 2805 |
(i) The individual's employment was with such employer at any | 2818 |
factory, establishment, or premises located in this state, owned | 2819 |
or operated by such employer, other than the factory, | 2820 |
establishment, or premises at which the labor dispute exists, if | 2821 |
it is shown that the individual is not financing, participating | 2822 |
in, or directly interested in such labor dispute; | 2823 |
(ii) The individual's employment was with an employer not | 2824 |
involved in the labor dispute but whose place of business was | 2825 |
located within the same premises as the employer engaged in the | 2826 |
dispute, unless the individual's employer is a wholly owned | 2827 |
subsidiary of the employer engaged in the dispute, or unless the | 2828 |
individual actively participates in or voluntarily stops work | 2829 |
because of such dispute. If it is established that the claimant | 2830 |
was laid off for an indefinite period and not recalled to work | 2831 |
prior to the dispute, or was separated by the employer prior to | 2832 |
the dispute for reasons other than the labor dispute, or that the | 2833 |
individual obtained a bona fide job with another employer while | 2834 |
the dispute was still in progress, such labor dispute shall not | 2835 |
render the employee ineligible for benefits. | 2836 |
(iii) The individual has left employment to accept a recall | 2859 |
from a prior employer or, except as provided in division | 2860 |
(D)(2)(a)(iv) of this section, to accept other employment as | 2861 |
provided under section 4141.291 of the Revised Code, or left or | 2862 |
was separated from employment that was concurrent employment at | 2863 |
the time of the most recent separation or within six weeks prior | 2864 |
to the most recent separation where the remuneration, hours, or | 2865 |
other conditions of such concurrent employment were substantially | 2866 |
less favorable than the individual's most recent employment and | 2867 |
where such employment, if offered as new work, would be considered | 2868 |
not suitable under the provisions of divisions (E) and (F) of this | 2869 |
section. Any benefits that would otherwise be chargeable to the | 2870 |
account of the employer from whom an individual has left | 2871 |
employment or was separated from employment that was concurrent | 2872 |
employment under conditions described in division (D)(2)(a)(iii) | 2873 |
of this section, shall instead be charged to the mutualized | 2874 |
account created by division (B) of section 4141.25 of the Revised | 2875 |
Code, except that any benefits chargeable to the account of a | 2876 |
reimbursing employer under division (D)(2)(a)(iii) of this section | 2877 |
shall be charged to the account of the reimbursing employer and | 2878 |
not to the mutualized account, except as provided in division | 2879 |
(D)(2) of section 4141.24 of the Revised Code. | 2880 |
(iv) When an individual has been issued a definite layoff | 2881 |
date by the individual's employer and before the layoff date, the | 2882 |
individual quits to accept other employment, the provisions of | 2883 |
division (D)(2)(a)(iii) of this section apply and no | 2884 |
disqualification shall be imposed under division (D) of this | 2885 |
section. However, if the individual fails to meet the employment | 2886 |
and earnings requirements of division (A)(2) of section 4141.291 | 2887 |
of the Revised Code, then the individual, pursuant to division | 2888 |
(A)(5) of this section, shall be ineligible for benefits for any | 2889 |
week of unemployment that occurs prior to the layoff date. | 2890 |
(ii) When the individual is attending a training course | 2902 |
pursuant to division (A)(4) of this section except, in the event | 2903 |
of a refusal to accept an offer of suitable work or a refusal or | 2904 |
failure to investigate a referral, benefits thereafter paid to | 2905 |
such individual shall not be charged to the account of any | 2906 |
employer and, except as provided in division (B)(1)(b) of section | 2907 |
4141.241 of the Revised Code, shall be charged to the mutualized | 2908 |
account as provided in division (B) of section 4141.25 of the | 2909 |
Revised Code. | 2910 |
(e) The individual became unemployed because of dishonesty in | 2916 |
connection with the individual's most recent or any base period | 2917 |
work. Remuneration earned in such work shall be excluded from the | 2918 |
individual's total base period remuneration and qualifying weeks | 2919 |
that otherwise would be credited to the individual for such work | 2920 |
in the individual's base period shall not be credited for the | 2921 |
purpose of determining the total benefits to which the individual | 2922 |
is eligible and the weekly benefit amount to be paid under section | 2923 |
4141.30 of the Revised Code. Such excluded remuneration and | 2924 |
noncredited qualifying weeks shall be excluded from the | 2925 |
calculation of the maximum amount to be charged, under division | 2926 |
(D) of section 4141.24 and section 4141.33 of the Revised Code, | 2927 |
against the accounts of the individual's base period employers. In | 2928 |
addition, no benefits shall thereafter be paid to the individual | 2929 |
based upon such excluded remuneration or noncredited qualifying | 2930 |
weeks. | 2931 |
(F) Subject to the special exceptions contained in division | 2954 |
(A)(4)(f) of this section and section 4141.301 of the Revised | 2955 |
Code, in determining whether any work is suitable for a claimant | 2956 |
in the administration of this chapter, the director, in addition | 2957 |
to the determination required under division (E) of this section, | 2958 |
shall consider the degree of risk to the claimant's health, | 2959 |
safety, and morals, the individual's physical fitness for the | 2960 |
work, the individual's prior training and experience, the length | 2961 |
of the individual's unemployment, the distance of the available | 2962 |
work from the individual's residence, and the individual's | 2963 |
prospects for obtaining local work. | 2964 |
(H) The "duration of unemployment" as used in this section | 2971 |
means the full period of unemployment next ensuing after a | 2972 |
separation from any base period or subsequent work and until an | 2973 |
individual has become reemployed in employment subject to this | 2974 |
chapter, or the unemployment compensation act of another state, or | 2975 |
of the United States, and until such individual has worked six | 2976 |
weeks and for those weeks has earned or been paid remuneration | 2977 |
equal to six times an average weekly wage of not less than: | 2978 |
eighty-five dollars and ten cents per week beginning on June 26, | 2979 |
1990; and beginning on and after January 1, 1992, twenty-seven and | 2980 |
one-half per cent of the statewide average weekly wage as computed | 2981 |
each first day of January under division (B)(3) of section 4141.30 | 2982 |
of the Revised Code, rounded down to the nearest dollar, except | 2983 |
for purposes of division (D)(2)(c) of this section, such term | 2984 |
means the full period of unemployment next ensuing after a | 2985 |
separation from such work and until such individual has become | 2986 |
reemployed subject to the terms set forth above, and has earned | 2987 |
wages equal to one-half of the individual's average weekly wage or | 2988 |
sixty dollars, whichever is less. | 2989 |
(H)(I) If a claimant is disqualified under division | 2990 |
(D)(2)(a), (c), or (d) of this section or found to be qualified | 2991 |
under the exceptions provided in division (D)(2)(a)(i), (iii), or | 2992 |
(iv) of this section or, division (A)(2) of section 4141.291 of | 2993 |
the Revised Code, or section 4141.294 of the Revised Code, then | 2994 |
benefits that may become payable to such claimant, which are | 2995 |
chargeable to the account of the employer from whom the individual | 2996 |
was separated under such conditions, shall be charged to the | 2997 |
mutualized account provided in section 4141.25 of the Revised | 2998 |
Code, provided that no charge shall be made to the mutualized | 2999 |
account for benefits chargeable to a reimbursing employer, except | 3000 |
as provided in division (D)(2) of section 4141.24 of the Revised | 3001 |
Code. In the case of a reimbursing employer, the director shall | 3002 |
refund or credit to the account of the reimbursing employer any | 3003 |
over-paid benefits that are recovered under division (B) of | 3004 |
section 4141.35 of the Revised Code. Amounts chargeable to other | 3005 |
states, the United States, or Canada that are subject to | 3006 |
agreements and arrangements that are established pursuant to | 3007 |
section 4141.43 of the Revised Code shall be credited or | 3008 |
reimbursed according to the agreements and arrangements to which | 3009 |
the chargeable amounts are subject. | 3010 |
(a) Benefits based on service in an instructional, research, | 3017 |
or principal administrative capacity in an institution of higher | 3018 |
education, as defined in division (Y) of section 4141.01 of the | 3019 |
Revised Code; or for an educational institution as defined in | 3020 |
division (CC) of section 4141.01 of the Revised Code, shall not be | 3021 |
paid to any individual for any week of unemployment that begins | 3022 |
during the period between two successive academic years or terms, | 3023 |
or during a similar period between two regular but not successive | 3024 |
terms or during a period of paid sabbatical leave provided for in | 3025 |
the individual's contract, if the individual performs such | 3026 |
services in the first of those academic years or terms and has a | 3027 |
contract or a reasonable assurance that the individual will | 3028 |
perform services in any such capacity for any such institution in | 3029 |
the second of those academic years or terms. | 3030 |
(b) Benefits based on service for an educational institution | 3031 |
or an institution of higher education in other than an | 3032 |
instructional, research, or principal administrative capacity, | 3033 |
shall not be paid to any individual for any week of unemployment | 3034 |
which begins during the period between two successive academic | 3035 |
years or terms of the employing educational institution or | 3036 |
institution of higher education, provided the individual performed | 3037 |
those services for the educational institution or institution of | 3038 |
higher education during the first such academic year or term and, | 3039 |
there is a reasonable assurance that such individual will perform | 3040 |
those services for any educational institution or institution of | 3041 |
higher education in the second of such academic years or terms. | 3042 |
If compensation is denied to any individual for any week | 3043 |
under division (I)(J)(1)(b) of this section and the individual was | 3044 |
not offered an opportunity to perform those services for an | 3045 |
institution of higher education or for an educational institution | 3046 |
for the second of such academic years or terms, the individual is | 3047 |
entitled to a retroactive payment of compensation for each week | 3048 |
for which the individual timely filed a claim for compensation and | 3049 |
for which compensation was denied solely by reason of division | 3050 |
(I)(J)(1)(b) of this section. An application for retroactive | 3051 |
benefits shall be timely filed if received by the director or the | 3052 |
director's deputy within or prior to the end of the fourth full | 3053 |
calendar week after the end of the period for which benefits were | 3054 |
denied because of reasonable assurance of employment. The | 3055 |
provision for the payment of retroactive benefits under division | 3056 |
(I)(J)(1)(b) of this section is applicable to weeks of | 3057 |
unemployment beginning on and after November 18, 1983. The | 3058 |
provisions under division (I)(J)(1)(b) of this section shall be | 3059 |
retroactive to September 5, 1982, only if, as a condition for full | 3060 |
tax credit against the tax imposed by the "Federal Unemployment | 3061 |
Tax Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311, the | 3062 |
United States secretary of labor determines that retroactivity is | 3063 |
required by federal law. | 3064 |
(c) With respect to weeks of unemployment beginning after | 3065 |
December 31, 1977, benefits shall be denied to any individual for | 3066 |
any week which commences during an established and customary | 3067 |
vacation period or holiday recess, if the individual performs any | 3068 |
services described in divisions (I)(J)(1)(a) and (b) of this | 3069 |
section in the period immediately before the vacation period or | 3070 |
holiday recess, and there is a reasonable assurance that the | 3071 |
individual will perform any such services in the period | 3072 |
immediately following the vacation period or holiday recess. | 3073 |
(d) With respect to any services described in division | 3074 |
(I)(J)(1)(a), (b), or (c) of this section, benefits payable on the | 3075 |
basis of services in any such capacity shall be denied as | 3076 |
specified in division (I)(J)(1)(a), (b), or (c) of this section to | 3077 |
any individual who performs such services in an educational | 3078 |
institution or institution of higher education while in the employ | 3079 |
of an educational service agency. For this purpose, the term | 3080 |
"educational service agency" means a governmental agency or | 3081 |
governmental entity that is established and operated exclusively | 3082 |
for the purpose of providing services to one or more educational | 3083 |
institutions or one or more institutions of higher education. | 3084 |
(2) No disqualification will be imposed, between academic | 3094 |
years or terms or during a vacation period or holiday recess under | 3095 |
this division, unless the director or the director's deputy has | 3096 |
received a statement in writing from the educational institution | 3097 |
or institution of higher education that the claimant has a | 3098 |
contract for, or a reasonable assurance of, reemployment for the | 3099 |
ensuing academic year or term. | 3100 |
(3) If an individual has employment with an educational | 3101 |
institution or an institution of higher education and employment | 3102 |
with a noneducational employer, during the base period of the | 3103 |
individual's benefit year, then the individual may become eligible | 3104 |
for benefits during the between-term, or vacation or holiday | 3105 |
recess, disqualification period, based on employment performed for | 3106 |
the noneducational employer, provided that the employment is | 3107 |
sufficient to qualify the individual for benefit rights separately | 3108 |
from the benefit rights based on school employment. The weekly | 3109 |
benefit amount and maximum benefits payable during a | 3110 |
disqualification period shall be computed based solely on the | 3111 |
nonschool employment. | 3112 |
(J)(K) Benefits shall not be paid on the basis of employment | 3113 |
performed by an alien, unless the alien had been lawfully admitted | 3114 |
to the United States for permanent residence at the time the | 3115 |
services were performed, was lawfully present for purposes of | 3116 |
performing the services, or was otherwise permanently residing in | 3117 |
the United States under color of law at the time the services were | 3118 |
performed, under section 212(d)(5) of the "Immigration and | 3119 |
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101: | 3120 |
(2) To accept a recall to employment from a prior employer | 3156 |
and cannot establish that a substantial loss of employment rights, | 3157 |
benefits, or pension was involved in the recall, or to accept | 3158 |
other employment subject to this chapter, or the unemployment | 3159 |
compensation act of another state, or of the United States, where | 3160 |
the individual obtains such employment while still employed or | 3161 |
commences such employment within seven calendar days after the | 3162 |
last day of employment with the prior employer, and subsequent to | 3163 |
the last day of the employment with the prior employer, works | 3164 |
three weeks in the new employment and earns wages equal to one and | 3165 |
one-half times the individual's average weekly wage or one hundred | 3166 |
eighty dollars, whichever is less; | 3167 |
(C) Any benefits which would be chargeable to the account of | 3178 |
the employer from whom such individual voluntarily quit to accept | 3179 |
such recall or other employment which are not chargeable to the | 3180 |
recalling employer as provided in this section shall be charged to | 3181 |
the mutualized account provided in section 4141.25 of the Revised | 3182 |
Code; except that any benefits chargeable to the account of a | 3183 |
reimbursing employer under this division shall be charged to the | 3184 |
account of the reimbursing employer and not the mutualized | 3185 |
account, except as provided in division (D)(2) of section 4141.24 | 3186 |
of the Revised Code. | 3187 |
(G) A designated worksite training provider participating in | 3230 |
a learn to earn program shall not, by means of assigning work | 3231 |
activities under the program, impair an existing contract for | 3232 |
services or a collective bargaining agreement. Such a provider | 3233 |
shall not undertake any activity that would be inconsistent with | 3234 |
the terms of a collective bargaining agreement without the written | 3235 |
concurrence of the labor organization that is signatory to the | 3236 |
collective bargaining agreement. | 3237 |
(2) When determining if a claimant has experienced domestic | 3277 |
abuse for the purpose of receiving unemployment compensation | 3278 |
benefits, the director shall require the claimant to provide | 3279 |
documentation of domestic abuse that may include police or court | 3280 |
records or other documentation of abuse from a shelter worker, | 3281 |
attorney, member of the clergy, or medical or other professional | 3282 |
from whom the claimant has sought assistance. | 3283 |
(2) The claimant has exhausted all rights to regular | 3320 |
benefits, all rights to extended benefits, and all rights to | 3321 |
benefits under section 2002 of division B, title n, known as "The | 3322 |
Assistance for Unemployed Workers and Struggling Families Act" of | 3323 |
the "American Recovery and Reinvestment Act of 2009," Pub. L. No. | 3324 |
111-5, 123 Stat. 115, as amended. | 3325 |
(3) The claimant is enrolled in a training program approved | 3326 |
by the director or in a job training program authorized under the | 3327 |
"Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801 | 3328 |
et seq., as amended; except that the training program must prepare | 3329 |
the claimant for entry into a high-demand occupation if the | 3330 |
director determines that the claimant separated from a declining | 3331 |
occupation or has been involuntarily and indefinitely separated | 3332 |
from employment as a result of a permanent reduction of operations | 3333 |
at the claimant's place of employment. | 3334 |
(C) The amount of a claimant's weekly training extension | 3337 |
benefit shall equal the claimant's weekly benefit amount as | 3338 |
determined for the most recent benefit year, less any deductible | 3339 |
income as determined under section 4141.31 of the Revised Code and | 3340 |
any reduction required by division (D) of this section. The total | 3341 |
amount of training extension benefits payable to a claimant shall | 3342 |
be equal to twenty-six times the claimant's average weekly benefit | 3343 |
amount for the most recent benefit year. A claimant who is | 3344 |
receiving training extension benefits shall not be denied training | 3345 |
extension benefits because the claimant may not satisfy the | 3346 |
requirements of division (A)(4) or (5) of section 4141.29 of the | 3347 |
Revised Code. The director shall charge any training extension | 3348 |
benefits paid pursuant to this section to the mutualized account | 3349 |
created in section 4141.25 of the Revised Code and shall not | 3350 |
charge an employer's account for any training extension benefits | 3351 |
paid to a claimant. | 3352 |
Sec. 4141.50. (A) There is hereby created the short-time | 3358 |
compensation program. An employer who wishes to participate in the | 3359 |
program shall submit, on an application form provided by the | 3360 |
director of job and family services, a plan to the director that | 3361 |
satisfies the requirements listed in section 4141.51 of the | 3362 |
Revised Code. If an employee the employer covers under the plan is | 3363 |
subject to a collective bargaining agreement, the employer shall | 3364 |
have the employee's collective bargaining agent approve the plan | 3365 |
in writing. The written approval shall include a statement as to | 3366 |
whether the agent believes the implementation of the plan is | 3367 |
consistent with federal law. The employer shall submit that | 3368 |
approval to the director with the employer's proposed plan. | 3369 |
(7) Agrees in writing to furnish the director reports | 3405 |
relating to the operation of the plan as the director requests in | 3406 |
accordance with section 4141.54 of the Revised Code, to allow the | 3407 |
director access to all records necessary to approve, disapprove, | 3408 |
or evaluate the plan, and to follow any other directive that the | 3409 |
director determines to be necessary to implement the plan and that | 3410 |
is consistent with the requirements for plan approval provided in | 3411 |
division (A) of this section; | 3412 |
(C) The director shall approve or deny a short-time | 3445 |
compensation plan and shall send a written notice to the employer | 3446 |
stating whether the director approved or denied the plan not later | 3447 |
than thirty days after the director receives the plan. If the | 3448 |
director denies approval of a short-time compensation plan, the | 3449 |
director shall state the reasons for denying approval in the | 3450 |
written notice sent to the employer. A decision denying a plan | 3451 |
shall be final, but an employer subject to a denial shall be | 3452 |
allowed to submit another short-time compensation plan for | 3453 |
approval not earlier than fifteen days after the date of the | 3454 |
denial. | 3455 |
Sec. 4141.53. A participating employer may modify a | 3489 |
short-time compensation plan approved under section 4141.51 of the | 3490 |
Revised Code to meet changed conditions regarding the | 3491 |
participating employer's business if the modification conforms to | 3492 |
the basic provisions of the plan as approved by the director of | 3493 |
job and family services. Before implementing the proposed change, | 3494 |
the participating employer shall report the proposed change in | 3495 |
writing to the director. If the director determines that the | 3496 |
proposed change will result in a substantial modification of the | 3497 |
plan approved under section 4141.51 of the Revised Code, the | 3498 |
director shall reevaluate the proposed modified plan to determine | 3499 |
whether the plan continues to satisfy the requirements listed in | 3500 |
divisions (A)(1) to (12) of that section. The director shall | 3501 |
approve or deny the modification in accordance with that section. | 3502 |
(2) The individual is able to work and is available for the | 3540 |
individual's normal weekly hours of work with the short-time | 3541 |
compensation employer, which may include, for purposes of this | 3542 |
section, participating in training that is approved by the | 3543 |
director to enhance job skills, such as employer-sponsored | 3544 |
training, or training funded by the "Workforce Investment Act of | 3545 |
1998," 112 Stat. 936, 29 U.S.C. 2832, as amended. | 3546 |
(C) Notwithstanding section 4141.29 of the Revised Code, the | 3565 |
director of job and family services shall not deny short-time | 3566 |
compensation benefits for a week to an otherwise eligible employee | 3567 |
because the employee is unavailable for work other than as | 3568 |
required under division (B)(2) of this section, is not actively | 3569 |
searching for work, or refuses to apply for or to accept work with | 3570 |
an employer other than with the employer who is implementing the | 3571 |
plan. | 3572 |
(D) The director shall pay an employee who is eligible for a | 3573 |
weekly short-time compensation benefit in an amount equal to the | 3574 |
employee's regular weekly benefit amount for a period of total | 3575 |
unemployment as described in division (B) of section 4141.30 of | 3576 |
the Revised Code multiplied by the nearest full percentage of | 3577 |
reduction of the employee's normal weekly hours of work under the | 3578 |
employer's short-time compensation plan. The director shall round | 3579 |
the amount of a short-time compensation benefit that is not a | 3580 |
multiple of one dollar to the next highest dollar amount. | 3581 |
(E) An employee is not entitled to receive short-time | 3582 |
compensation benefits and regular unemployment compensation | 3583 |
benefits that, when combined, exceed the maximum total benefits | 3584 |
payable to the employee in a benefit year under section 4141.30 of | 3585 |
the Revised Code. An employee shall receive short-time | 3586 |
compensation benefits for a maximum of fifty-two weeks regardless | 3587 |
of whether the employee has received the total maximum benefits | 3588 |
payable for the employee's benefit year. An individual who | 3589 |
receives short-time compensation benefits is not entitled to | 3590 |
receive benefits for partial unemployment under division (C) of | 3591 |
section 4141.30 of the Revised Code for any week during which the | 3592 |
individual participates in a short-time compensation plan. The | 3593 |
director shall not pay an individual short-time compensation | 3594 |
benefits for a week during which the individual performs paid work | 3595 |
for the employer implementing the short-time compensation plan | 3596 |
that exceeds the reduced hours established under the plan. Any | 3597 |
short-time compensation benefits paid to an individual shall be | 3598 |
deducted from the total benefits available to the individual for | 3599 |
the individual's benefit year, as described in division (D) of | 3600 |
section 4141.30 of the Revised Code. | 3601 |
(2) An individual who is otherwise eligible to receive | 3625 |
short-time compensation benefits pursuant to section 4141.55 of | 3626 |
the Revised Code is eligible to receive a reduced benefit for any | 3627 |
week in which the employee performs work for a short-time | 3628 |
compensation employer and another employer, and the individual's | 3629 |
combined hours of work in the week do not exceed ninety per cent | 3630 |
of the individual's normal weekly hours of work with the | 3631 |
short-time compensation employer. The reduced benefit amount shall | 3632 |
be calculated by multiplying the employee's regular weekly benefit | 3633 |
amount for a period of total unemployment, as described in | 3634 |
division (B) of section 4141.30 of the Revised Code, by the | 3635 |
nearest full percentage by which the employee's combined hours of | 3636 |
work are less than the individual's normal weekly hours of work | 3637 |
with the short-time compensation employer. | 3638 |
(F) The sale, gift, or keeping for sale by druggists and | 3677 |
others of any of the medicinal preparations manufactured in | 3678 |
accordance with the formulas prescribed by the United States | 3679 |
Pharmacopoeia and National Formulary, patent or proprietary | 3680 |
preparations, and other bona fide medicinal and technical | 3681 |
preparations, which contain no more alcohol than is necessary to | 3682 |
hold the medicinal agents in solution and to preserve the same, | 3683 |
which are manufactured and sold as medicine and not as beverages, | 3684 |
are unfit for use for beverage purposes, and the sale of which | 3685 |
does not require the payment of a United States liquor dealer's | 3686 |
tax; | 3687 |
(G) The manufacture and sale of tinctures or of toilet, | 3688 |
medicinal, and antiseptic preparations and solutions not intended | 3689 |
for internal human use nor to be sold as beverages, and which are | 3690 |
unfit for beverage purposes, if upon the outside of each bottle, | 3691 |
box, or package of which there is printed in the English language, | 3692 |
conspicuously and legibly, the quantity by volume of alcohol in | 3693 |
the preparation or solution; | 3694 |
(K) The purchase and importation into this state or the | 3706 |
purchase at wholesale from A or B permit holders in this state of | 3707 |
beer and intoxicating liquor for use in manufacturing processes of | 3708 |
nonbeverage food products under terms prescribed by the division, | 3709 |
provided that the terms prescribed by the division shall not | 3710 |
increase the cost of the beer or intoxicating liquor to any | 3711 |
person, firm, or corporation purchasing and importing it into this | 3712 |
state or purchasing it from an A or B permit holder for that use; | 3713 |
(L) Any resident of this state or any member of the armed | 3714 |
forces of the United States, who has attained the age of | 3715 |
twenty-one years, from bringing into this state, for personal use | 3716 |
and not for resale, not more than one liter of spirituous liquor, | 3717 |
four and one-half liters of wine, or two hundred eighty-eight | 3718 |
ounces of beer in any thirty-day period, and the same is free of | 3719 |
any tax consent fee when the resident or member of the armed | 3720 |
forces physically possesses and accompanies the spirituous liquor, | 3721 |
wine, or beer on returning from a foreign country, another state, | 3722 |
or an insular possession of the United States; | 3723 |
(M) Persons, at least twenty-one years of age, who collect | 3724 |
ceramic commemorative bottles containing spirituous liquor that | 3725 |
have unbroken federal tax stamps on them from selling or trading | 3726 |
the bottles to other collectors. The bottles shall originally have | 3727 |
been purchased at retail from the division, legally imported under | 3728 |
division (L) of this section, or legally imported pursuant to a | 3729 |
supplier registration issued by the division. The sales shall be | 3730 |
for the purpose of exchanging a ceramic commemorative bottle | 3731 |
between private collectors and shall not be for the purpose of | 3732 |
selling the spirituous liquor for personal consumption. The sale | 3733 |
or exchange authorized by this division shall not occur on the | 3734 |
premises of any permit holder, shall not be made in connection | 3735 |
with the business of any permit holder, and shall not be made in | 3736 |
connection with any mercantile business. | 3737 |
Sec. 5733.01. (A) The tax provided by this chapter for | 3787 |
domestic corporations shall be the amount charged against each | 3788 |
corporation organized for profit under the laws of this state and | 3789 |
each nonprofit corporation organized pursuant to Chapter 1729. of | 3790 |
the Revised Code, except as provided in sections 5733.09 and | 3791 |
5733.10 of the Revised Code, for the privilege of exercising its | 3792 |
franchise during the calendar year in which that amount is | 3793 |
payable, and the tax provided by this chapter for foreign | 3794 |
corporations shall be the amount charged against each corporation | 3795 |
organized for profit and each nonprofit corporation organized or | 3796 |
operating in the same or similar manner as nonprofit corporations | 3797 |
organized under Chapter 1729. of the Revised Code, under the laws | 3798 |
of any state or country other than this state, except as provided | 3799 |
in sections 5733.09 and 5733.10 of the Revised Code, for the | 3800 |
privilege of doing business in this state, owning or using a part | 3801 |
or all of its capital or property in this state, holding a | 3802 |
certificate of compliance with the laws of this state authorizing | 3803 |
it to do business in this state, or otherwise having nexus in or | 3804 |
with this state under the Constitution of the United States, | 3805 |
during the calendar year in which that amount is payable. | 3806 |
(B) A corporation is subject to the tax imposed by section | 3807 |
5733.06 of the Revised Code for each calendar year prior to 2014 | 3808 |
that it is so organized, doing business, owning or using a part or | 3809 |
all of its capital or property, holding a certificate of | 3810 |
compliance, or otherwise having nexus in or with this state under | 3811 |
the Constitution of the United States, on the first day of January | 3812 |
of that calendar year. No credit authorized by this chapter may be | 3813 |
claimed for tax year 2014 or any tax year thereafter. | 3814 |
(2) Any sale, exchange, or other disposition of the person's | 3837 |
interest in the disregarded entity, whether held directly or | 3838 |
indirectly, shall be treated as a sale, exchange, or other | 3839 |
disposition of the person's share of the disregarded entity's | 3840 |
underlying assets or liabilities, and the gain or loss from such | 3841 |
sale, exchange, or disposition shall be included in the person's | 3842 |
net income under this chapter. | 3843 |
(b) A corporation satisfying the description in division | 3854 |
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised | 3855 |
Code, as that section existed before its amendment by H.B. 510 of | 3856 |
the 129th general assembly, that is not a financial institution, | 3857 |
insurance company, or dealer in intangibles is subject to the | 3858 |
taxes imposed under this chapter as a corporation and not subject | 3859 |
to tax as a financial institution, and shall pay the greater of | 3860 |
the minimum payment required under division (E) of section 5733.06 | 3861 |
of the Revised Code or the difference between all the taxes | 3862 |
charged under this chapter, without regard to division (G)(2) of | 3863 |
this section, less any credits allowable against such tax. | 3864 |
(v) For tax year 2009, the greater of the minimum payment | 3898 |
required under division (E) of section 5733.06 of the Revised Code | 3899 |
or one-fifth of the difference between all taxes charged the | 3900 |
corporation under this chapter and any credits allowable against | 3901 |
such tax, except the qualifying pass-through entity tax credit | 3902 |
described in division (A)(30) and the refundable credits described | 3903 |
in divisions (A)(31), (32), (33), and (34) of section 5733.98 of | 3904 |
the Revised Code; | 3905 |
(b) A corporation shall subtract from the amount calculated | 3907 |
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section | 3908 |
any qualifying pass-through entity tax credit described in | 3909 |
division (A)(30)(28) and any refundable credits described in | 3910 |
divisions (A)(31)(29) to (35)(33) of section 5733.98 of the | 3911 |
Revised Code to which the corporation is entitled. Any unused | 3912 |
qualifying pass-through entity tax credit is not refundable. | 3913 |
(A) "Person" includes individuals, receivers, assignees, | 4015 |
trustees in bankruptcy, estates, firms, partnerships, | 4016 |
associations, joint-stock companies, joint ventures, clubs, | 4017 |
societies, corporations, the state and its political subdivisions, | 4018 |
and combinations of individuals of any form. | 4019 |
(e) Automatic data processing, computer services, or | 4045 |
electronic information services are or are to be provided for use | 4046 |
in business when the true object of the transaction is the receipt | 4047 |
by the consumer of automatic data processing, computer services, | 4048 |
or electronic information services rather than the receipt of | 4049 |
personal or professional services to which automatic data | 4050 |
processing, computer services, or electronic information services | 4051 |
are incidental or supplemental. Notwithstanding any other | 4052 |
provision of this chapter, such transactions that occur between | 4053 |
members of an affiliated group are not sales. An "affiliated | 4054 |
group" means two or more persons related in such a way that one | 4055 |
person owns or controls the business operation of another member | 4056 |
of the group. In the case of corporations with stock, one | 4057 |
corporation owns or controls another if it owns more than fifty | 4058 |
per cent of the other corporation's common stock with voting | 4059 |
rights. | 4060 |
(q) On and after August 1, 2003, personal care service is or | 4082 |
is to be provided to an individual. As used in this division, | 4083 |
"personal care service" includes skin care, the application of | 4084 |
cosmetics, manicuring, pedicuring, hair removal, tattooing, body | 4085 |
piercing, tanning, massage, and other similar services. "Personal | 4086 |
care service" does not include a service provided by or on the | 4087 |
order of a licensed physician or licensed chiropractor, or the | 4088 |
cutting, coloring, or styling of an individual's hair. | 4089 |
(r) On and after August 1, 2003, the transportation of | 4090 |
persons by motor vehicle or aircraft is or is to be provided, when | 4091 |
the transportation is entirely within this state, except for | 4092 |
transportation provided by an ambulance service, by a transit bus, | 4093 |
as defined in section 5735.01 of the Revised Code, and | 4094 |
transportation provided by a citizen of the United States holding | 4095 |
a certificate of public convenience and necessity issued under 49 | 4096 |
U.S.C. 41102; | 4097 |
(5) The production or fabrication of tangible personal | 4116 |
property for a consideration for consumers who furnish either | 4117 |
directly or indirectly the materials used in the production of | 4118 |
fabrication work; and include the furnishing, preparing, or | 4119 |
serving for a consideration of any tangible personal property | 4120 |
consumed on the premises of the person furnishing, preparing, or | 4121 |
serving such tangible personal property. Except as provided in | 4122 |
section 5739.03 of the Revised Code, a construction contract | 4123 |
pursuant to which tangible personal property is or is to be | 4124 |
incorporated into a structure or improvement on and becoming a | 4125 |
part of real property is not a sale of such tangible personal | 4126 |
property. The construction contractor is the consumer of such | 4127 |
tangible personal property, provided that the sale and | 4128 |
installation of carpeting, the sale and installation of | 4129 |
agricultural land tile, the sale and erection or installation of | 4130 |
portable grain bins, or the provision of landscaping and lawn care | 4131 |
service and the transfer of property as part of such service is | 4132 |
never a construction contract. | 4133 |
(a) "Agricultural land tile" means fired clay or concrete | 4135 |
tile, or flexible or rigid perforated plastic pipe or tubing, | 4136 |
incorporated or to be incorporated into a subsurface drainage | 4137 |
system appurtenant to land used or to be used primarily in | 4138 |
production by farming, agriculture, horticulture, or floriculture. | 4139 |
The term does not include such materials when they are or are to | 4140 |
be incorporated into a drainage system appurtenant to a building | 4141 |
or structure even if the building or structure is used or to be | 4142 |
used in such production. | 4143 |
(6) All transactions in which all of the shares of stock of a | 4148 |
closely held corporation are transferred, or an ownership interest | 4149 |
in a pass-through entity, as defined in section 5733.04 of the | 4150 |
Revised Code, is transferred, if the corporation or pass-through | 4151 |
entity is not engaging in business and its entire assets consist | 4152 |
of boats, planes, motor vehicles, or other tangible personal | 4153 |
property operated primarily for the use and enjoyment of the | 4154 |
shareholders or owners; | 4155 |
(10) All transactions in which "guaranteed auto protection" | 4168 |
is provided whereby a person promises to pay to the consumer the | 4169 |
difference between the amount the consumer receives from motor | 4170 |
vehicle insurance and the amount the consumer owes to a person | 4171 |
holding title to or a lien on the consumer's motor vehicle in the | 4172 |
event the consumer's motor vehicle suffers a total loss under the | 4173 |
terms of the motor vehicle insurance policy or is stolen and not | 4174 |
recovered, if the protection and its price are included in the | 4175 |
purchase or lease agreement; | 4176 |
(11)(a) Except as provided in division (B)(11)(b) of this | 4177 |
section, on and after October 1, 2009, all transactions by which | 4178 |
health care services are paid for, reimbursed, provided, | 4179 |
delivered, arranged for, or otherwise made available by a medicaid | 4180 |
health insuring corporation pursuant to the corporation's contract | 4181 |
with the state. | 4182 |
(b) If the centers for medicare and medicaid services of the | 4183 |
United States department of health and human services determines | 4184 |
that the taxation of transactions described in division (B)(11)(a) | 4185 |
of this section constitutes an impermissible health care-related | 4186 |
tax under section 1903(w) of the "Social Security Act," 49 Stat. | 4187 |
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations | 4188 |
adopted thereunder, the director of job and family services shall | 4189 |
notify the tax commissioner of that determination. Beginning with | 4190 |
the first day of the month following that notification, the | 4191 |
transactions described in division (B)(11)(a) of this section are | 4192 |
not sales for the purposes of this chapter or Chapter 5741. of the | 4193 |
Revised Code. The tax commissioner shall order that the collection | 4194 |
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026, | 4195 |
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code | 4196 |
shall cease for transactions occurring on or after that date. | 4197 |
(C) "Vendor" means the person providing the service or by | 4205 |
whom the transfer effected or license given by a sale is or is to | 4206 |
be made or given and, for sales described in division (B)(3)(i) of | 4207 |
this section, the telecommunications service vendor that provides | 4208 |
the nine hundred telephone service; if two or more persons are | 4209 |
engaged in business at the same place of business under a single | 4210 |
trade name in which all collections on account of sales by each | 4211 |
are made, such persons shall constitute a single vendor. | 4212 |
Physicians, dentists, hospitals, and veterinarians who are | 4213 |
engaged in selling tangible personal property as received from | 4214 |
others, such as eyeglasses, mouthwashes, dentifrices, or similar | 4215 |
articles, are vendors. Veterinarians who are engaged in | 4216 |
transferring to others for a consideration drugs, the dispensing | 4217 |
of which does not require an order of a licensed veterinarian or | 4218 |
physician under federal law, are vendors. | 4219 |
(2) Physicians, dentists, hospitals, and blood banks operated | 4225 |
by nonprofit institutions and persons licensed to practice | 4226 |
veterinary medicine, surgery, and dentistry are consumers of all | 4227 |
tangible personal property and services purchased by them in | 4228 |
connection with the practice of medicine, dentistry, the rendition | 4229 |
of hospital or blood bank service, or the practice of veterinary | 4230 |
medicine, surgery, and dentistry. In addition to being consumers | 4231 |
of drugs administered by them or by their assistants according to | 4232 |
their direction, veterinarians also are consumers of drugs that | 4233 |
under federal law may be dispensed only by or upon the order of a | 4234 |
licensed veterinarian or physician, when transferred by them to | 4235 |
others for a consideration to provide treatment to animals as | 4236 |
directed by the veterinarian. | 4237 |
(b) In the case of a person who produces, rather than | 4250 |
purchases, printed matter for the purpose of distributing it or | 4251 |
having it distributed to the public or to a designated segment of | 4252 |
the public, free of charge, that person is the consumer of all | 4253 |
tangible personal property and services purchased for use or | 4254 |
consumption in the production of that printed matter. That person | 4255 |
is not entitled to claim exemption under division (B)(42)(f) of | 4256 |
section 5739.02 of the Revised Code for any material incorporated | 4257 |
into the printed matter or any equipment, supplies, or services | 4258 |
primarily used to produce the printed matter. | 4259 |
(7) In the case of a transaction for health care services | 4275 |
under division (B)(11) of this section, a medicaid health insuring | 4276 |
corporation is the consumer of such services. The purchase of such | 4277 |
services by a medicaid health insuring corporation is not subject | 4278 |
to the exception for resale under division (E)(1) of this section | 4279 |
or to the exemptions provided under divisions (B)(12), (18), (19), | 4280 |
and (22) of section 5739.02 of the Revised Code. | 4281 |
(H)(1)(a) "Price," except as provided in divisions (H)(2), | 4295 |
(3), and (4) of this section, means the total amount of | 4296 |
consideration, including cash, credit, property, and services, for | 4297 |
which tangible personal property or services are sold, leased, or | 4298 |
rented, valued in money, whether received in money or otherwise, | 4299 |
without any deduction for any of the following: | 4300 |
(iv) On and after August 1, 2003, delivery charges. As used | 4309 |
in this division, "delivery charges" means charges by the vendor | 4310 |
for preparation and delivery to a location designated by the | 4311 |
consumer of tangible personal property or a service, including | 4312 |
transportation, shipping, postage, handling, crating, and packing. | 4313 |
(b) "Price" includes consideration received by the vendor | 4316 |
from a third party, if the vendor actually receives the | 4317 |
consideration from a party other than the consumer, and the | 4318 |
consideration is directly related to a price reduction or discount | 4319 |
on the sale; the vendor has an obligation to pass the price | 4320 |
reduction or discount through to the consumer; the amount of the | 4321 |
consideration attributable to the sale is fixed and determinable | 4322 |
by the vendor at the time of the sale of the item to the consumer; | 4323 |
and one of the following criteria is met: | 4324 |
(i) The consumer presents a coupon, certificate, or other | 4325 |
document to the vendor to claim a price reduction or discount | 4326 |
where the coupon, certificate, or document is authorized, | 4327 |
distributed, or granted by a third party with the understanding | 4328 |
that the third party will reimburse any vendor to whom the coupon, | 4329 |
certificate, or document is presented; | 4330 |
(v) The dollar value of a gift card that is not sold by a | 4358 |
vendor or purchased by a consumer and that is redeemed by the | 4359 |
consumer in purchasing tangible personal property or services if | 4360 |
the vendor is not reimbursed and does not receive compensation | 4361 |
from a third party to cover all or part of the gift card value. | 4362 |
For the purposes of this division, a gift card is not sold by a | 4363 |
vendor or purchased by a consumer if it is distributed pursuant to | 4364 |
an awards, loyalty, or promotional program. Past and present | 4365 |
purchases of tangible personal property or services by the | 4366 |
consumer shall not be treated as consideration exchanged for a | 4367 |
gift card. | 4368 |
(3) In the case of a sale of any watercraft or outboard motor | 4376 |
by a watercraft dealer licensed in accordance with section | 4377 |
1547.543 of the Revised Code, in which another watercraft, | 4378 |
watercraft and trailer, or outboard motor is accepted by the | 4379 |
dealer as part of the consideration received, "price" has the same | 4380 |
meaning as in division (H)(1) of this section, reduced by the | 4381 |
credit afforded the consumer by the dealer for the watercraft, | 4382 |
watercraft and trailer, or outboard motor received in trade. As | 4383 |
used in this division, "watercraft" includes an outdrive unit | 4384 |
attached to the watercraft. | 4385 |
(I) "Receipts" means the total amount of the prices of the | 4390 |
sales of vendors, provided that the dollar value of gift cards | 4391 |
distributed pursuant to an awards, loyalty, or promotional | 4392 |
program, and cash discounts allowed and taken on sales at the time | 4393 |
they are consummated are not included, minus any amount deducted | 4394 |
as a bad debt pursuant to section 5739.121 of the Revised Code. | 4395 |
"Receipts" does not include the sale price of property returned or | 4396 |
services rejected by consumers when the full sale price and tax | 4397 |
are refunded either in cash or by credit. | 4398 |
(L) "Casual sale" means a sale of an item of tangible | 4406 |
personal property that was obtained by the person making the sale, | 4407 |
through purchase or otherwise, for the person's own use and was | 4408 |
previously subject to any state's taxing jurisdiction on its sale | 4409 |
or use, and includes such items acquired for the seller's use that | 4410 |
are sold by an auctioneer employed directly by the person for such | 4411 |
purpose, provided the location of such sales is not the | 4412 |
auctioneer's permanent place of business. As used in this | 4413 |
division, "permanent place of business" includes any location | 4414 |
where such auctioneer has conducted more than two auctions during | 4415 |
the year. | 4416 |
(M) "Hotel" means every establishment kept, used, maintained, | 4417 |
advertised, or held out to the public to be a place where sleeping | 4418 |
accommodations are offered to guests, in which five or more rooms | 4419 |
are used for the accommodation of such guests, whether the rooms | 4420 |
are in one or several structures, except as otherwise provided in | 4421 |
division (G) of section 5739.09 of the Revised Code. | 4422 |
(O) "Making retail sales" means the effecting of transactions | 4426 |
wherein one party is obligated to pay the price and the other | 4427 |
party is obligated to provide a service or to transfer title to or | 4428 |
possession of the item sold. "Making retail sales" does not | 4429 |
include the preliminary acts of promoting or soliciting the retail | 4430 |
sales, other than the distribution of printed matter which | 4431 |
displays or describes and prices the item offered for sale, nor | 4432 |
does it include delivery of a predetermined quantity of tangible | 4433 |
personal property or transportation of property or personnel to or | 4434 |
from a place where a service is performed. | 4435 |
(P) "Used directly in the rendition of a public utility | 4436 |
service" means that property that is to be incorporated into and | 4437 |
will become a part of the consumer's production, transmission, | 4438 |
transportation, or distribution system and that retains its | 4439 |
classification as tangible personal property after such | 4440 |
incorporation; fuel or power used in the production, transmission, | 4441 |
transportation, or distribution system; and tangible personal | 4442 |
property used in the repair and maintenance of the production, | 4443 |
transmission, transportation, or distribution system, including | 4444 |
only such motor vehicles as are specially designed and equipped | 4445 |
for such use. Tangible personal property and services used | 4446 |
primarily in providing highway transportation for hire are not | 4447 |
used directly in the rendition of a public utility service. In | 4448 |
this definition, "public utility" includes a citizen of the United | 4449 |
States holding, and required to hold, a certificate of public | 4450 |
convenience and necessity issued under 49 U.S.C. 41102. | 4451 |
(S) "Manufacturing operation" means a process in which | 4458 |
materials are changed, converted, or transformed into a different | 4459 |
state or form from which they previously existed and includes | 4460 |
refining materials, assembling parts, and preparing raw materials | 4461 |
and parts by mixing, measuring, blending, or otherwise committing | 4462 |
such materials or parts to the manufacturing process. | 4463 |
"Manufacturing operation" does not include packaging. | 4464 |
(U) "Transit authority" means a regional transit authority | 4471 |
created pursuant to section 306.31 of the Revised Code or a county | 4472 |
in which a county transit system is created pursuant to section | 4473 |
306.01 of the Revised Code. For the purposes of this chapter, a | 4474 |
transit authority must extend to at least the entire area of a | 4475 |
single county. A transit authority that includes territory in more | 4476 |
than one county must include all the area of the most populous | 4477 |
county that is a part of such transit authority. County population | 4478 |
shall be measured by the most recent census taken by the United | 4479 |
States census bureau. | 4480 |
(a) Accounting and legal services such as advice on tax | 4524 |
matters, asset management, budgetary matters, quality control, | 4525 |
information security, and auditing and any other situation where | 4526 |
the service provider receives data or information and studies, | 4527 |
alters, analyzes, interprets, or adjusts such material; | 4528 |
(i) Providing credit information to users of such information | 4543 |
by a consumer reporting agency, as defined in the "Fair Credit | 4544 |
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or | 4545 |
as hereafter amended, including but not limited to gathering, | 4546 |
organizing, analyzing, recording, and furnishing such information | 4547 |
by any oral, written, graphic, or electronic medium; | 4548 |
(AA)(1) "Telecommunications service" means the electronic | 4570 |
transmission, conveyance, or routing of voice, data, audio, video, | 4571 |
or any other information or signals to a point, or between or | 4572 |
among points. "Telecommunications service" includes such | 4573 |
transmission, conveyance, or routing in which computer processing | 4574 |
applications are used to act on the form, code, or protocol of the | 4575 |
content for purposes of transmission, conveyance, or routing | 4576 |
without regard to whether the service is referred to as voice-over | 4577 |
internet protocol service or is classified by the federal | 4578 |
communications commission as enhanced or value-added. | 4579 |
"Telecommunications service" does not include any of the | 4580 |
following: | 4581 |
(g) Radio and television audio and video programming | 4594 |
services, regardless of the medium, including the furnishing of | 4595 |
transmission, conveyance, and routing of such services by the | 4596 |
programming service provider. Radio and television audio and video | 4597 |
programming services include, but are not limited to, cable | 4598 |
service, as defined in 47 U.S.C. 522(6), and audio and video | 4599 |
programming services delivered by commercial mobile radio service | 4600 |
providers, as defined in 47 C.F.R. 20.3; | 4601 |
(3) "900 service" means an inbound toll telecommunications | 4630 |
service purchased by a subscriber that allows the subscriber's | 4631 |
customers to call in to the subscriber's prerecorded announcement | 4632 |
or live service, and which is typically marketed under the name | 4633 |
"900" service" and any subsequent numbers designated by the | 4634 |
federal communications commission. "900 service" does not include | 4635 |
the charge for collection services provided by the seller of the | 4636 |
telecommunications service to the subscriber, or services or | 4637 |
products sold by the subscriber to the subscriber's customer. | 4638 |
(5) "Prepaid wireless calling service" means a | 4645 |
telecommunications service that provides the right to utilize | 4646 |
mobile telecommunications service as well as other | 4647 |
non-telecommunications services, including the download of digital | 4648 |
products delivered electronically, and content and ancillary | 4649 |
services, that must be paid for in advance and that is sold in | 4650 |
predetermined units or dollars of which the number declines with | 4651 |
use in a known amount. | 4652 |
(BB) "Laundry and dry cleaning services" means removing soil | 4663 |
or dirt from towels, linens, articles of clothing, or other fabric | 4664 |
items that belong to others and supplying towels, linens, articles | 4665 |
of clothing, or other fabric items. "Laundry and dry cleaning | 4666 |
services" does not include the provision of self-service | 4667 |
facilities for use by consumers to remove soil or dirt from | 4668 |
towels, linens, articles of clothing, or other fabric items. | 4669 |
(CC) "Magazines distributed as controlled circulation | 4670 |
publications" means magazines containing at least twenty-four | 4671 |
pages, at least twenty-five per cent editorial content, issued at | 4672 |
regular intervals four or more times a year, and circulated | 4673 |
without charge to the recipient, provided that such magazines are | 4674 |
not owned or controlled by individuals or business concerns which | 4675 |
conduct such publications as an auxiliary to, and essentially for | 4676 |
the advancement of the main business or calling of, those who own | 4677 |
or control them. | 4678 |
(DD) "Landscaping and lawn care service" means the services | 4679 |
of planting, seeding, sodding, removing, cutting, trimming, | 4680 |
pruning, mulching, aerating, applying chemicals, watering, | 4681 |
fertilizing, and providing similar services to establish, promote, | 4682 |
or control the growth of trees, shrubs, flowers, grass, ground | 4683 |
cover, and other flora, or otherwise maintaining a lawn or | 4684 |
landscape grown or maintained by the owner for ornamentation or | 4685 |
other nonagricultural purpose. However, "landscaping and lawn care | 4686 |
service" does not include the providing of such services by a | 4687 |
person who has less than five thousand dollars in sales of such | 4688 |
services during the calendar year. | 4689 |
(EE) "Private investigation and security service" means the | 4690 |
performance of any activity for which the provider of such service | 4691 |
is required to be licensed pursuant to Chapter 4749. of the | 4692 |
Revised Code, or would be required to be so licensed in performing | 4693 |
such services in this state, and also includes the services of | 4694 |
conducting polygraph examinations and of monitoring or overseeing | 4695 |
the activities on or in, or the condition of, the consumer's home, | 4696 |
business, or other facility by means of electronic or similar | 4697 |
monitoring devices. "Private investigation and security service" | 4698 |
does not include special duty services provided by off-duty police | 4699 |
officers, deputy sheriffs, and other peace officers regularly | 4700 |
employed by the state or a political subdivision. | 4701 |
(GG) "Research and development" means designing, creating, or | 4709 |
formulating new or enhanced products, equipment, or manufacturing | 4710 |
processes, and also means conducting scientific or technological | 4711 |
inquiry and experimentation in the physical sciences with the goal | 4712 |
of increasing scientific knowledge which may reveal the bases for | 4713 |
new or enhanced products, equipment, or manufacturing processes. | 4714 |
(HH) "Qualified research and development equipment" means | 4715 |
capitalized tangible personal property, and leased personal | 4716 |
property that would be capitalized if purchased, used by a person | 4717 |
primarily to perform research and development. Tangible personal | 4718 |
property primarily used in testing, as defined in division (A)(4) | 4719 |
of section 5739.011 of the Revised Code, or used for recording or | 4720 |
storing test results, is not qualified research and development | 4721 |
equipment unless such property is primarily used by the consumer | 4722 |
in testing the product, equipment, or manufacturing process being | 4723 |
created, designed, or formulated by the consumer in the research | 4724 |
and development activity or in recording or storing such test | 4725 |
results. | 4726 |
(JJ) "Employment service" means providing or supplying | 4735 |
personnel, on a temporary or long-term basis, to perform work or | 4736 |
labor under the supervision or control of another, when the | 4737 |
personnel so provided or supplied receive their wages, salary, or | 4738 |
other compensation from the provider or supplier of the employment | 4739 |
service or from a third party that provided or supplied the | 4740 |
personnel to the provider or supplier. "Employment service" does | 4741 |
not include: | 4742 |
(MM) "Physical fitness facility service" means all | 4766 |
transactions by which a membership is granted, maintained, or | 4767 |
renewed, including initiation fees, membership dues, renewal fees, | 4768 |
monthly minimum fees, and other similar fees and dues, by a | 4769 |
physical fitness facility such as an athletic club, health spa, or | 4770 |
gymnasium, which entitles the member to use the facility for | 4771 |
physical exercise. | 4772 |
(NN) "Recreation and sports club service" means all | 4773 |
transactions by which a membership is granted, maintained, or | 4774 |
renewed, including initiation fees, membership dues, renewal fees, | 4775 |
monthly minimum fees, and other similar fees and dues, by a | 4776 |
recreation and sports club, which entitles the member to use the | 4777 |
facilities of the organization. "Recreation and sports club" means | 4778 |
an organization that has ownership of, or controls or leases on a | 4779 |
continuing, long-term basis, the facilities used by its members | 4780 |
and includes an aviation club, gun or shooting club, yacht club, | 4781 |
card club, swimming club, tennis club, golf club, country club, | 4782 |
riding club, amateur sports club, or similar organization. | 4783 |
(OO) "Livestock" means farm animals commonly raised for food, | 4784 |
food production, or other agricultural purposes, including, but | 4785 |
not limited to, cattle, sheep, goats, swine, poultry, and captive | 4786 |
deer. "Livestock" does not include invertebrates, amphibians, | 4787 |
reptiles, domestic pets, animals for use in laboratories or for | 4788 |
exhibition, or other animals not commonly raised for food or food | 4789 |
production. | 4790 |
(TT) "Professional racing team" means a person that employs | 4810 |
at least twenty full-time employees for the purpose of conducting | 4811 |
a motor vehicle racing business for profit. The person must | 4812 |
conduct the business with the purpose of racing one or more motor | 4813 |
racing vehicles in at least ten competitive professional racing | 4814 |
events each year that comprise all or part of a motor racing | 4815 |
series sanctioned by one or more motor racing sanctioning | 4816 |
organizations. A "motor racing vehicle" means a vehicle for which | 4817 |
the chassis, engine, and parts are designed exclusively for motor | 4818 |
racing, and does not include a stock or production model vehicle | 4819 |
that may be modified for use in racing. For the purposes of this | 4820 |
division: | 4821 |
(2) "Full-time employee" means an individual who is employed | 4827 |
for consideration for thirty-five or more hours a week, or who | 4828 |
renders any other standard of service generally accepted by custom | 4829 |
or specified by contract as full-time employment"Managed care | 4830 |
premium" means any premium, capitation, or other payment a | 4831 |
medicaid health insuring corporation receives for providing or | 4832 |
arranging for the provision of health care services to its members | 4833 |
or enrollees residing in this state. | 4834 |
(UU)(1) "Lease" or "rental" means any transfer of the | 4835 |
possession or control of tangible personal property for a fixed or | 4836 |
indefinite term, for consideration. "Lease" or "rental" includes | 4837 |
future options to purchase or extend, and agreements described in | 4838 |
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where | 4839 |
the amount of consideration may be increased or decreased by | 4840 |
reference to the amount realized upon the sale or disposition of | 4841 |
the property. "Lease" or "rental" does not include: | 4842 |
(VV) "Mobile telecommunications service" has the same meaning | 4865 |
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No. | 4866 |
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and, | 4867 |
on and after August 1, 2003, includes related fees and ancillary | 4868 |
services, including universal service fees, detailed billing | 4869 |
service, directory assistance, service initiation, voice mail | 4870 |
service, and vertical services, such as caller ID and three-way | 4871 |
calling. | 4872 |
(XX) "Satellite broadcasting service" means the distribution | 4875 |
or broadcasting of programming or services by satellite directly | 4876 |
to the subscriber's receiving equipment without the use of ground | 4877 |
receiving or distribution equipment, except the subscriber's | 4878 |
receiving equipment or equipment used in the uplink process to the | 4879 |
satellite, and includes all service and rental charges, premium | 4880 |
channels or other special services, installation and repair | 4881 |
service charges, and any other charges having any connection with | 4882 |
the provision of the satellite broadcasting service. | 4883 |
(YY) "Tangible personal property" means personal property | 4884 |
that can be seen, weighed, measured, felt, or touched, or that is | 4885 |
in any other manner perceptible to the senses. For purposes of | 4886 |
this chapter and Chapter 5741. of the Revised Code, "tangible | 4887 |
personal property" includes motor vehicles, electricity, water, | 4888 |
gas, steam, and prewritten computer software. | 4889 |
(ZZ) "Direct mail" means printed material delivered or | 4890 |
distributed by United States mail or other delivery service to a | 4891 |
mass audience or to addressees on a mailing list provided by the | 4892 |
consumer or at the direction of the consumer when the cost of the | 4893 |
items are not billed directly to the recipients. "Direct mail" | 4894 |
includes tangible personal property supplied directly or | 4895 |
indirectly by the consumer to the direct mail vendor for inclusion | 4896 |
in the package containing the printed material. "Direct mail" does | 4897 |
not include multiple items of printed material delivered to a | 4898 |
single address. | 4899 |
(DDD) "Prewritten computer software" means computer software, | 4909 |
including prewritten upgrades, that is not designed and developed | 4910 |
by the author or other creator to the specifications of a specific | 4911 |
purchaser. The combining of two or more prewritten computer | 4912 |
software programs or prewritten portions thereof does not cause | 4913 |
the combination to be other than prewritten computer software. | 4914 |
"Prewritten computer software" includes software designed and | 4915 |
developed by the author or other creator to the specifications of | 4916 |
a specific purchaser when it is sold to a person other than the | 4917 |
purchaser. If a person modifies or enhances computer software of | 4918 |
which the person is not the author or creator, the person shall be | 4919 |
deemed to be the author or creator only of such person's | 4920 |
modifications or enhancements. Prewritten computer software or a | 4921 |
prewritten portion thereof that is modified or enhanced to any | 4922 |
degree, where such modification or enhancement is designed and | 4923 |
developed to the specifications of a specific purchaser, remains | 4924 |
prewritten computer software; provided, however, that where there | 4925 |
is a reasonable, separately stated charge or an invoice or other | 4926 |
statement of the price given to the purchaser for the modification | 4927 |
or enhancement, the modification or enhancement shall not | 4928 |
constitute prewritten computer software. | 4929 |
(EEE)(1) "Food" means substances, whether in liquid, | 4930 |
concentrated, solid, frozen, dried, or dehydrated form, that are | 4931 |
sold for ingestion or chewing by humans and are consumed for their | 4932 |
taste or nutritional value. "Food" does not include alcoholic | 4933 |
beverages, dietary supplements, soft drinks, or tobacco. | 4934 |
(b) "Dietary supplements" means any product, other than | 4939 |
tobacco, that is intended to supplement the diet and that is | 4940 |
intended for ingestion in tablet, capsule, powder, softgel, | 4941 |
gelcap, or liquid form, or, if not intended for ingestion in such | 4942 |
a form, is not represented as conventional food for use as a sole | 4943 |
item of a meal or of the diet; that is required to be labeled as a | 4944 |
dietary supplement, identifiable by the "supplement facts" box | 4945 |
found on the label, as required by 21 C.F.R. 101.36; and that | 4946 |
contains one or more of the following dietary ingredients: | 4947 |
(FFF) "Drug" means a compound, substance, or preparation, and | 4964 |
any component of a compound, substance, or preparation, other than | 4965 |
food, dietary supplements, or alcoholic beverages that is | 4966 |
recognized in the official United States pharmacopoeia, official | 4967 |
homeopathic pharmacopoeia of the United States, or official | 4968 |
national formulary, and supplements to them; is intended for use | 4969 |
in the diagnosis, cure, mitigation, treatment, or prevention of | 4970 |
disease; or is intended to affect the structure or any function of | 4971 |
the body. | 4972 |
(III) "Mobility enhancing equipment" means equipment, | 4984 |
including repair and replacement parts for such equipment, that is | 4985 |
primarily and customarily used to provide or increase the ability | 4986 |
to move from one place to another and is appropriate for use | 4987 |
either in a home or a motor vehicle, that is not generally used by | 4988 |
persons with normal mobility, and that does not include any motor | 4989 |
vehicle or equipment on a motor vehicle normally provided by a | 4990 |
motor vehicle manufacturer. "Mobility enhancing equipment" does | 4991 |
not include durable medical equipment. | 4992 |
(JJJ) "Prosthetic device" means a replacement, corrective, or | 4993 |
supportive device, including repair and replacement parts for the | 4994 |
device, worn on or in the human body to artificially replace a | 4995 |
missing portion of the body, prevent or correct physical deformity | 4996 |
or malfunction, or support a weak or deformed portion of the body. | 4997 |
As used in this division, "prosthetic device" does not include | 4998 |
corrective eyeglasses, contact lenses, or dental prosthesis. | 4999 |
(d) "Management services" means administrative and aviation | 5032 |
support services furnished under a fractional aircraft ownership | 5033 |
program in accordance with a management services agreement under | 5034 |
division (KKK)(1)(e) of this section, and offered by the program | 5035 |
manager to the fractional owners, including, at a minimum, the | 5036 |
establishment and implementation of safety guidelines; the | 5037 |
coordination of the scheduling of the program aircraft and crews; | 5038 |
program aircraft maintenance; program aircraft insurance; crew | 5039 |
training for crews employed, furnished, or contracted by the | 5040 |
program manager or the fractional owner; the satisfaction of | 5041 |
record-keeping requirements; and the development and use of an | 5042 |
operations manual and a maintenance manual for the fractional | 5043 |
aircraft ownership program. | 5044 |
(LLL) "Electronic publishing" means providing access to one | 5051 |
or more of the following primarily for business customers, | 5052 |
including the federal government or a state government or a | 5053 |
political subdivision thereof, to conduct research: news; | 5054 |
business, financial, legal, consumer, or credit materials; | 5055 |
editorials, columns, reader commentary, or features; photos or | 5056 |
images; archival or research material; legal notices, identity | 5057 |
verification, or public records; scientific, educational, | 5058 |
instructional, technical, professional, trade, or other literary | 5059 |
materials; or other similar information which has been gathered | 5060 |
and made available by the provider to the consumer in an | 5061 |
electronic format. Providing electronic publishing includes the | 5062 |
functions necessary for the acquisition, formatting, editing, | 5063 |
storage, and dissemination of data or information that is the | 5064 |
subject of a sale. | 5065 |
Sec. 5739.02. For the purpose of providing revenue with | 5082 |
which to meet the needs of the state, for the use of the general | 5083 |
revenue fund of the state, for the purpose of securing a thorough | 5084 |
and efficient system of common schools throughout the state, for | 5085 |
the purpose of affording revenues, in addition to those from | 5086 |
general property taxes, permitted under constitutional | 5087 |
limitations, and from other sources, for the support of local | 5088 |
governmental functions, and for the purpose of reimbursing the | 5089 |
state for the expense of administering this chapter, an excise tax | 5090 |
is hereby levied on each retail sale made in this state. | 5091 |
(2) In the case of the lease or rental, with a fixed term of | 5097 |
more than thirty days or an indefinite term with a minimum period | 5098 |
of more than thirty days, of any motor vehicles designed by the | 5099 |
manufacturer to carry a load of not more than one ton, watercraft, | 5100 |
outboard motor, or aircraft, or of any tangible personal property, | 5101 |
other than motor vehicles designed by the manufacturer to carry a | 5102 |
load of more than one ton, to be used by the lessee or renter | 5103 |
primarily for business purposes, the tax shall be collected by the | 5104 |
vendor at the time the lease or rental is consummated and shall be | 5105 |
calculated by the vendor on the basis of the total amount to be | 5106 |
paid by the lessee or renter under the lease agreement. If the | 5107 |
total amount of the consideration for the lease or rental includes | 5108 |
amounts that are not calculated at the time the lease or rental is | 5109 |
executed, the tax shall be calculated and collected by the vendor | 5110 |
at the time such amounts are billed to the lessee or renter. In | 5111 |
the case of an open-end lease or rental, the tax shall be | 5112 |
calculated by the vendor on the basis of the total amount to be | 5113 |
paid during the initial fixed term of the lease or rental, and for | 5114 |
each subsequent renewal period as it comes due. As used in this | 5115 |
division, "motor vehicle" has the same meaning as in section | 5116 |
4501.01 of the Revised Code, and "watercraft" includes an outdrive | 5117 |
unit attached to the watercraft. | 5118 |
A lease with a renewal clause and a termination penalty or | 5119 |
similar provision that applies if the renewal clause is not | 5120 |
exercised is presumed to be a sham transaction. In such a case, | 5121 |
the tax shall be calculated and paid on the basis of the entire | 5122 |
length of the lease period, including any renewal periods, until | 5123 |
the termination penalty or similar provision no longer applies. | 5124 |
The taxpayer shall bear the burden, by a preponderance of the | 5125 |
evidence, that the transaction or series of transactions is not a | 5126 |
sham transaction. | 5127 |
(6) Sales of motor fuel upon receipt, use, distribution, or | 5154 |
sale of which in this state a tax is imposed by the law of this | 5155 |
state, but this exemption shall not apply to the sale of motor | 5156 |
fuel on which a refund of the tax is allowable under division (A) | 5157 |
of section 5735.14 of the Revised Code; and the tax commissioner | 5158 |
may deduct the amount of tax levied by this section applicable to | 5159 |
the price of motor fuel when granting a refund of motor fuel tax | 5160 |
pursuant to division (A) of section 5735.14 of the Revised Code | 5161 |
and shall cause the amount deducted to be paid into the general | 5162 |
revenue fund of this state; | 5163 |
(7) Sales of natural gas by a natural gas company, of water | 5164 |
by a water-works company, or of steam by a heating company, if in | 5165 |
each case the thing sold is delivered to consumers through pipes | 5166 |
or conduits, and all sales of communications services by a | 5167 |
telegraph company, all terms as defined in section 5727.01 of the | 5168 |
Revised Code, and sales of electricity delivered through wires; | 5169 |
(8) Casual sales by a person, or auctioneer employed directly | 5170 |
by the person to conduct such sales, except as to such sales of | 5171 |
motor vehicles, watercraft or outboard motors required to be | 5172 |
titled under section 1548.06 of the Revised Code, watercraft | 5173 |
documented with the United States coast guard, snowmobiles, and | 5174 |
all-purpose vehicles as defined in section 4519.01 of the Revised | 5175 |
Code; | 5176 |
(9)(a) Sales of services or tangible personal property, other | 5177 |
than motor vehicles, mobile homes, and manufactured homes, by | 5178 |
churches, organizations exempt from taxation under section | 5179 |
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit | 5180 |
organizations operated exclusively for charitable purposes as | 5181 |
defined in division (B)(12) of this section, provided that the | 5182 |
number of days on which such tangible personal property or | 5183 |
services, other than items never subject to the tax, are sold does | 5184 |
not exceed six in any calendar year, except as otherwise provided | 5185 |
in division (B)(9)(b) of this section. If the number of days on | 5186 |
which such sales are made exceeds six in any calendar year, the | 5187 |
church or organization shall be considered to be engaged in | 5188 |
business and all subsequent sales by it shall be subject to the | 5189 |
tax. In counting the number of days, all sales by groups within a | 5190 |
church or within an organization shall be considered to be sales | 5191 |
of that church or organization. | 5192 |
(b) The limitation on the number of days on which tax-exempt | 5193 |
sales may be made by a church or organization under division | 5194 |
(B)(9)(a) of this section does not apply to sales made by student | 5195 |
clubs and other groups of students of a primary or secondary | 5196 |
school, or a parent-teacher association, booster group, or similar | 5197 |
organization that raises money to support or fund curricular or | 5198 |
extracurricular activities of a primary or secondary school. | 5199 |
(12) Sales of tangible personal property or services to | 5209 |
churches, to organizations exempt from taxation under section | 5210 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other | 5211 |
nonprofit organizations operated exclusively for charitable | 5212 |
purposes in this state, no part of the net income of which inures | 5213 |
to the benefit of any private shareholder or individual, and no | 5214 |
substantial part of the activities of which consists of carrying | 5215 |
on propaganda or otherwise attempting to influence legislation; | 5216 |
sales to offices administering one or more homes for the aged or | 5217 |
one or more hospital facilities exempt under section 140.08 of the | 5218 |
Revised Code; and sales to organizations described in division (D) | 5219 |
of section 5709.12 of the Revised Code. | 5220 |
"Charitable purposes" means the relief of poverty; the | 5221 |
improvement of health through the alleviation of illness, disease, | 5222 |
or injury; the operation of an organization exclusively for the | 5223 |
provision of professional, laundry, printing, and purchasing | 5224 |
services to hospitals or charitable institutions; the operation of | 5225 |
a home for the aged, as defined in section 5701.13 of the Revised | 5226 |
Code; the operation of a radio or television broadcasting station | 5227 |
that is licensed by the federal communications commission as a | 5228 |
noncommercial educational radio or television station; the | 5229 |
operation of a nonprofit animal adoption service or a county | 5230 |
humane society; the promotion of education by an institution of | 5231 |
learning that maintains a faculty of qualified instructors, | 5232 |
teaches regular continuous courses of study, and confers a | 5233 |
recognized diploma upon completion of a specific curriculum; the | 5234 |
operation of a parent-teacher association, booster group, or | 5235 |
similar organization primarily engaged in the promotion and | 5236 |
support of the curricular or extracurricular activities of a | 5237 |
primary or secondary school; the operation of a community or area | 5238 |
center in which presentations in music, dramatics, the arts, and | 5239 |
related fields are made in order to foster public interest and | 5240 |
education therein; the production of performances in music, | 5241 |
dramatics, and the arts; or the promotion of education by an | 5242 |
organization engaged in carrying on research in, or the | 5243 |
dissemination of, scientific and technological knowledge and | 5244 |
information primarily for the public. | 5245 |
(13) Building and construction materials and services sold to | 5251 |
construction contractors for incorporation into a structure or | 5252 |
improvement to real property under a construction contract with | 5253 |
this state or a political subdivision of this state, or with the | 5254 |
United States government or any of its agencies; building and | 5255 |
construction materials and services sold to construction | 5256 |
contractors for incorporation into a structure or improvement to | 5257 |
real property that are accepted for ownership by this state or any | 5258 |
of its political subdivisions, or by the United States government | 5259 |
or any of its agencies at the time of completion of the structures | 5260 |
or improvements; building and construction materials sold to | 5261 |
construction contractors for incorporation into a horticulture | 5262 |
structure or livestock structure for a person engaged in the | 5263 |
business of horticulture or producing livestock; building | 5264 |
materials and services sold to a construction contractor for | 5265 |
incorporation into a house of public worship or religious | 5266 |
education, or a building used exclusively for charitable purposes | 5267 |
under a construction contract with an organization whose purpose | 5268 |
is as described in division (B)(12) of this section; building | 5269 |
materials and services sold to a construction contractor for | 5270 |
incorporation into a building under a construction contract with | 5271 |
an organization exempt from taxation under section 501(c)(3) of | 5272 |
the Internal Revenue Code of 1986 when the building is to be used | 5273 |
exclusively for the organization's exempt purposes; building and | 5274 |
construction materials sold for incorporation into the original | 5275 |
construction of a sports facility under section 307.696 of the | 5276 |
Revised Code; building and construction materials and services | 5277 |
sold to a construction contractor for incorporation into real | 5278 |
property outside this state if such materials and services, when | 5279 |
sold to a construction contractor in the state in which the real | 5280 |
property is located for incorporation into real property in that | 5281 |
state, would be exempt from a tax on sales levied by that state; | 5282 |
and, until one calendar year after the construction of a | 5283 |
convention center that qualifies for property tax exemption under | 5284 |
section 5709.084 of the Revised Code is completed, building and | 5285 |
construction materials and services sold to a construction | 5286 |
contractor for incorporation into the real property comprising | 5287 |
that convention center; | 5288 |
(15) Sales to persons primarily engaged in any of the | 5293 |
activities mentioned in division (B)(42)(a), (g), or (h) of this | 5294 |
section, to persons engaged in making retail sales, or to persons | 5295 |
who purchase for sale from a manufacturer tangible personal | 5296 |
property that was produced by the manufacturer in accordance with | 5297 |
specific designs provided by the purchaser, of packages, including | 5298 |
material, labels, and parts for packages, and of machinery, | 5299 |
equipment, and material for use primarily in packaging tangible | 5300 |
personal property produced for sale, including any machinery, | 5301 |
equipment, and supplies used to make labels or packages, to | 5302 |
prepare packages or products for labeling, or to label packages or | 5303 |
products, by or on the order of the person doing the packaging, or | 5304 |
sold at retail. "Packages" includes bags, baskets, cartons, | 5305 |
crates, boxes, cans, bottles, bindings, wrappings, and other | 5306 |
similar devices and containers, but does not include motor | 5307 |
vehicles or bulk tanks, trailers, or similar devices attached to | 5308 |
motor vehicles. "Packaging" means placing in a package. Division | 5309 |
(B)(15) of this section does not apply to persons engaged in | 5310 |
highway transportation for hire. | 5311 |
(17) Sales to persons engaged in farming, agriculture, | 5317 |
horticulture, or floriculture, of tangible personal property for | 5318 |
use or consumption primarily in the production by farming, | 5319 |
agriculture, horticulture, or floriculture of other tangible | 5320 |
personal property for use or consumption primarily in the | 5321 |
production of tangible personal property for sale by farming, | 5322 |
agriculture, horticulture, or floriculture; or material and parts | 5323 |
for incorporation into any such tangible personal property for use | 5324 |
or consumption in production; and of tangible personal property | 5325 |
for such use or consumption in the conditioning or holding of | 5326 |
products produced by and for such use, consumption, or sale by | 5327 |
persons engaged in farming, agriculture, horticulture, or | 5328 |
floriculture, except where such property is incorporated into real | 5329 |
property; | 5330 |
(18) Sales of drugs for a human being that may be dispensed | 5331 |
only pursuant to a prescription; insulin as recognized in the | 5332 |
official United States pharmacopoeia; urine and blood testing | 5333 |
materials when used by diabetics or persons with hypoglycemia to | 5334 |
test for glucose or acetone; hypodermic syringes and needles when | 5335 |
used by diabetics for insulin injections; epoetin alfa when | 5336 |
purchased for use in the treatment of persons with medical | 5337 |
disease; hospital beds when purchased by hospitals, nursing homes, | 5338 |
or other medical facilities; and medical oxygen and medical | 5339 |
oxygen-dispensing equipment when purchased by hospitals, nursing | 5340 |
homes, or other medical facilities; | 5341 |
(22) Sales of services provided by the state or any of its | 5357 |
political subdivisions, agencies, instrumentalities, institutions, | 5358 |
or authorities, or by governmental entities of the state or any of | 5359 |
its political subdivisions, agencies, instrumentalities, | 5360 |
institutions, or authorities; | 5361 |
(24) Sales to persons engaged in the preparation of eggs for | 5365 |
sale of tangible personal property used or consumed directly in | 5366 |
such preparation, including such tangible personal property used | 5367 |
for cleaning, sanitizing, preserving, grading, sorting, and | 5368 |
classifying by size; packages, including material and parts for | 5369 |
packages, and machinery, equipment, and material for use in | 5370 |
packaging eggs for sale; and handling and transportation equipment | 5371 |
and parts therefor, except motor vehicles licensed to operate on | 5372 |
public highways, used in intraplant or interplant transfers or | 5373 |
shipment of eggs in the process of preparation for sale, when the | 5374 |
plant or plants within or between which such transfers or | 5375 |
shipments occur are operated by the same person. "Packages" | 5376 |
includes containers, cases, baskets, flats, fillers, filler flats, | 5377 |
cartons, closure materials, labels, and labeling materials, and | 5378 |
"packaging" means placing therein. | 5379 |
(c) To clean tangible personal property used to prepare or | 5396 |
serve food for human consumption for sale.Sales of | 5397 |
telecommunications service that is used directly and primarily to | 5398 |
perform the functions of a call center. As used in this division, | 5399 |
"call center" means any physical location where telephone calls | 5400 |
are placed or received in high volume for the purpose of making | 5401 |
sales, marketing, customer service, technical support, or other | 5402 |
specialized business activity, and that employs at least fifty | 5403 |
individuals that engage in call center activities on a full-time | 5404 |
basis, or sufficient individuals to fill fifty full-time | 5405 |
equivalent positions; | 5406 |
(32) The sale, lease, repair, and maintenance of, parts for, | 5424 |
or items attached to or incorporated in, motor vehicles that are | 5425 |
primarily used for transporting tangible personal property | 5426 |
belonging to others by a person engaged in highway transportation | 5427 |
for hire, except for packages and packaging used for the | 5428 |
transportation of tangible personal property; | 5429 |
(34) Sales to a telecommunications service vendor, mobile | 5435 |
telecommunications service vendor, or satellite broadcasting | 5436 |
service vendor of tangible personal property and services used | 5437 |
directly and primarily in transmitting, receiving, switching, or | 5438 |
recording any interactive, one- or two-way electromagnetic | 5439 |
communications, including voice, image, data, and information, | 5440 |
through the use of any medium, including, but not limited to, | 5441 |
poles, wires, cables, switching equipment, computers, and record | 5442 |
storage devices and media, and component parts for the tangible | 5443 |
personal property. The exemption provided in this division shall | 5444 |
be in lieu of all other exemptions under division (B)(42)(a) or | 5445 |
(n) of this section to which the vendor may otherwise be entitled, | 5446 |
based upon the use of the thing purchased in providing the | 5447 |
telecommunications, mobile telecommunications, or satellite | 5448 |
broadcasting service. | 5449 |
For purposes of division (B)(35) of this section, "direct | 5467 |
marketing" means the method of selling where consumers order | 5468 |
tangible personal property by United States mail, delivery | 5469 |
service, or telecommunication and the vendor delivers or ships the | 5470 |
tangible personal property sold to the consumer from a warehouse, | 5471 |
catalogue distribution center, or similar fulfillment facility by | 5472 |
means of the United States mail, delivery service, or common | 5473 |
carrierof machinery, equipment, and software to a qualified | 5474 |
direct selling entity for use in a warehouse or distribution | 5475 |
center primarily for storing, transporting, or otherwise handling | 5476 |
inventory that is held for sale to independent salespersons who | 5477 |
operate as direct sellers and that is held primarily for | 5478 |
distribution outside this state; | 5479 |
(ii) "Qualified direct selling entity" means an entity | 5485 |
selling to direct sellers at the time the entity enters into a tax | 5486 |
credit agreement with the tax credit authority pursuant to section | 5487 |
122.17 of the Revised Code, provided that the agreement was | 5488 |
entered into on or after January 1, 2007. Neither contingencies | 5489 |
relevant to the granting of, nor later developments with respect | 5490 |
to, the tax credit shall impair the status of the qualified direct | 5491 |
selling entity under division (B)(35) of this section after | 5492 |
execution of the tax credit agreement by the tax credit authority. | 5493 |
(c) Items of property that are attached to or incorporated in | 5510 |
motor racing vehicles, including engines, chassis, and all other | 5511 |
components of the vehicles, and all spare, replacement, and | 5512 |
rebuilt parts or components of the vehicles; except not including | 5513 |
tires, consumable fluids, paint, and accessories consisting of | 5514 |
instrumentation sensors and related items added to the vehicle to | 5515 |
collect and transmit data by means of telemetry and other forms of | 5516 |
communicationAny transfer or lease of tangible personal property | 5517 |
between the state and a successful proposer in accordance with | 5518 |
sections 126.60 to 126.605 of the Revised Code, provided the | 5519 |
property is part of a project as defined in section 126.60 of the | 5520 |
Revised Code and the state retains ownership of the project or | 5521 |
part thereof that is being transferred or leased, between the | 5522 |
state and JobsOhio in accordance with section 4313.02 of the | 5523 |
Revised Code. | 5524 |
(40) Sales of tangible personal property and services to a | 5528 |
provider of electricity used or consumed directly and primarily in | 5529 |
generating, transmitting, or distributing electricity for use by | 5530 |
others, including property that is or is to be incorporated into | 5531 |
and will become a part of the consumer's production, transmission, | 5532 |
or distribution system and that retains its classification as | 5533 |
tangible personal property after incorporation; fuel or power used | 5534 |
in the production, transmission, or distribution of electricity; | 5535 |
energy conversion equipment as defined in section 5727.01 of the | 5536 |
Revised Code; and tangible personal property and services used in | 5537 |
the repair and maintenance of the production, transmission, or | 5538 |
distribution system, including only those motor vehicles as are | 5539 |
specially designed and equipped for such use. The exemption | 5540 |
provided in this division shall be in lieu of all other exemptions | 5541 |
in division (B)(42)(a) or (n) of this section to which a provider | 5542 |
of electricity may otherwise be entitled based on the use of the | 5543 |
tangible personal property or service purchased in generating, | 5544 |
transmitting, or distributing electricity. | 5545 |
(a) To incorporate the thing transferred as a material or a | 5552 |
part into tangible personal property to be produced for sale by | 5553 |
manufacturing, assembling, processing, or refining; or to use or | 5554 |
consume the thing transferred directly in producing tangible | 5555 |
personal property for sale by mining, including, without | 5556 |
limitation, the extraction from the earth of all substances that | 5557 |
are classed geologically as minerals, production of crude oil and | 5558 |
natural gas, or directly in the rendition of a public utility | 5559 |
service, except that the sales tax levied by this section shall be | 5560 |
collected upon all meals, drinks, and food for human consumption | 5561 |
sold when transporting persons. Persons engaged in rendering | 5562 |
services in the exploration for, and production of, crude oil and | 5563 |
natural gas for others are deemed engaged directly in the | 5564 |
exploration for, and production of, crude oil and natural gas. | 5565 |
This paragraph does not exempt from "retail sale" or "sales at | 5566 |
retail" the sale of tangible personal property that is to be | 5567 |
incorporated into a structure or improvement to real property. | 5568 |
(h) To use the benefit of a warranty, maintenance or service | 5587 |
contract, or similar agreement, as described in division (B)(7) of | 5588 |
section 5739.01 of the Revised Code, to repair or maintain | 5589 |
tangible personal property, if all of the property that is the | 5590 |
subject of the warranty, contract, or agreement would not be | 5591 |
subject to the tax imposed by this section; | 5592 |
(j) To use or consume the thing transferred primarily in | 5595 |
storing, transporting, mailing, or otherwise handling purchased | 5596 |
sales inventory in a warehouse, distribution center, or similar | 5597 |
facility when the inventory is primarily distributed outside this | 5598 |
state to retail stores of the person who owns or controls the | 5599 |
warehouse, distribution center, or similar facility, to retail | 5600 |
stores of an affiliated group of which that person is a member, or | 5601 |
by means of direct marketing. This division does not apply to | 5602 |
motor vehicles registered for operation on the public highways. As | 5603 |
used in this division, "affiliated group" has the same meaning as | 5604 |
in division (B)(3)(e) of section 5739.01 of the Revised Code and | 5605 |
"direct marketing" has the same meaning as in division (B)(35) of | 5606 |
this sectionmeans the method of selling where consumers order | 5607 |
tangible personal property by United States mail, delivery | 5608 |
service, or telecommunication and the vendor delivers or ships the | 5609 |
tangible personal property sold to the consumer from a warehouse, | 5610 |
catalogue distribution center, or similar fulfillment facility by | 5611 |
means of the United States mail, delivery service, or common | 5612 |
carrier. | 5613 |
(n) To use or consume the thing transferred primarily in | 5628 |
producing tangible personal property for sale by farming, | 5629 |
agriculture, horticulture, or floriculture. Persons engaged in | 5630 |
rendering farming, agriculture, horticulture, or floriculture | 5631 |
services for others are deemed engaged primarily in farming, | 5632 |
agriculture, horticulture, or floriculture. This paragraph does | 5633 |
not exempt from "retail sale" or "sales at retail" the sale of | 5634 |
tangible personal property that is to be incorporated into a | 5635 |
structure or improvement to real property. | 5636 |
(44) Sales of replacement and modification parts for engines, | 5650 |
airframes, instruments, and interiors in, and paint for, aircraft | 5651 |
used primarily in a fractional aircraft ownership program, and | 5652 |
sales of services for the repair, modification, and maintenance of | 5653 |
such aircraft, and machinery, equipment, and supplies primarily | 5654 |
used to provide those services. | 5655 |
(45) Sales of telecommunications service that is used | 5656 |
directly and primarily to perform the functions of a call center. | 5657 |
As used in this division, "call center" means any physical | 5658 |
location where telephone calls are placed or received in high | 5659 |
volume for the purpose of making sales, marketing, customer | 5660 |
service, technical support, or other specialized business | 5661 |
activity, and that employs at least fifty individuals that engage | 5662 |
in call center activities on a full-time basis, or sufficient | 5663 |
individuals to fill fifty full-time equivalent positions. | 5664 |
(ii) "Qualified direct selling entity" means an entity | 5683 |
selling to direct sellers at the time the entity enters into a tax | 5684 |
credit agreement with the tax credit authority pursuant to section | 5685 |
122.17 of the Revised Code, provided that the agreement was | 5686 |
entered into on or after January 1, 2007. Neither contingencies | 5687 |
relevant to the granting of, nor later developments with respect | 5688 |
to, the tax credit shall impair the status of the qualified direct | 5689 |
selling entity under division (B)(48) of this section after | 5690 |
execution of the tax credit agreement by the tax credit authority. | 5691 |
(49) Sales of materials, parts, equipment, or engines used in | 5696 |
the repair or maintenance of aircraft or avionics systems of such | 5697 |
aircraft, and sales of repair, remodeling, replacement, or | 5698 |
maintenance services in this state performed on aircraft or on an | 5699 |
aircraft's avionics, engine, or component materials or parts. As | 5700 |
used in division (B)(49) of this section, "aircraft" means | 5701 |
aircraft of more than six thousand pounds maximum certified | 5702 |
takeoff weight or used exclusively in general aviation. | 5703 |
(50) Sales of full flight simulators that are used for pilot | 5704 |
or flight-crew training, sales of repair or replacement parts or | 5705 |
components, and sales of repair or maintenance services for such | 5706 |
full flight simulators. "Full flight simulator" means a replica of | 5707 |
a specific type, or make, model, and series of aircraft cockpit. | 5708 |
It includes the assemblage of equipment and computer programs | 5709 |
necessary to represent aircraft operations in ground and flight | 5710 |
conditions, a visual system providing an out-of-the-cockpit view, | 5711 |
and a system that provides cues at least equivalent to those of a | 5712 |
three-degree-of-freedom motion system, and has the full range of | 5713 |
capabilities of the systems installed in the device as described | 5714 |
in appendices A and B of part 60 of chapter 1 of title 14 of the | 5715 |
Code of Federal Regulations. | 5716 |
(E) The tax collected by the vendor from the consumer under | 5733 |
this chapter is not part of the price, but is a tax collection for | 5734 |
the benefit of the state, and of counties levying an additional | 5735 |
sales tax pursuant to section 5739.021 or 5739.026 of the Revised | 5736 |
Code and of transit authorities levying an additional sales tax | 5737 |
pursuant to section 5739.023 of the Revised Code. Except for the | 5738 |
discount authorized under section 5739.12 of the Revised Code and | 5739 |
the effects of any rounding pursuant to section 5703.055 of the | 5740 |
Revised Code, no person other than the state or such a county or | 5741 |
transit authority shall derive any benefit from the collection or | 5742 |
payment of the tax levied by this section or section 5739.021, | 5743 |
5739.023, or 5739.026 of the Revised Code. | 5744 |
If the price exceeds one dollar, the tax is six cents on each | 5761 |
one dollar. If the price exceeds one dollar or a multiple thereof | 5762 |
by not more than seventeen cents, the amount of tax is six cents | 5763 |
for each one dollar plus one cent. If the price exceeds one dollar | 5764 |
or a multiple thereof by more than seventeen cents, the amount of | 5765 |
tax is six cents for each one dollar plus the amount of tax for | 5766 |
prices eighteen cents through ninety-nine cents in accordance with | 5767 |
the schedule above. | 5768 |
If the price exceeds two dollars, the tax is eleven cents on | 5785 |
each two dollars. If the price exceeds two dollars or a multiple | 5786 |
thereof by not more than eighteen cents, the amount of tax is | 5787 |
eleven cents for each two dollars plus one cent. If the price | 5788 |
exceeds two dollars or a multiple thereof by more than eighteen | 5789 |
cents, the amount of tax is eleven cents for each two dollars plus | 5790 |
the amount of tax for prices nineteen cents through one dollar and | 5791 |
ninety-nine cents in accordance with the schedule above. | 5792 |
(B) On and after July 1, 2003, and on and before June 30, | 5793 |
2005, the combined taxes levied by sections 5739.02 and 5741.02 | 5794 |
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021, | 5795 |
5741.022, and 5741.023 of the Revised Code shall be collected in | 5796 |
accordance with the following schedules: | 5797 |
If the price exceeds four dollars, the tax is twenty-five | 5828 |
cents on each four dollars. If the price exceeds four dollars or a | 5829 |
multiple thereof by not more than sixteen cents, the amount of tax | 5830 |
is twenty-five cents for each four dollars plus one cent. If the | 5831 |
price exceeds four dollars or a multiple thereof by more than | 5832 |
sixteen cents, the amount of tax is twenty-five cents for each | 5833 |
four dollars plus the amount of tax for prices seventeen cents | 5834 |
through three dollars and ninety-nine cents in accordance with the | 5835 |
schedule above. | 5836 |
If the price exceeds two dollars, the tax is thirteen cents | 5854 |
on each two dollars. If the price exceeds two dollars or a | 5855 |
multiple thereof by not more than fifteen cents, the amount of tax | 5856 |
is thirteen cents for each two dollars plus one cent. If the price | 5857 |
exceeds two dollars or a multiple thereof by more than fifteen | 5858 |
cents, the amount of tax is thirteen cents for each two dollars | 5859 |
plus the amount of tax for prices sixteen cents through one dollar | 5860 |
and ninety-nine cents in accordance with the schedule above. | 5861 |
If the price exceeds four dollars, the tax is twenty-seven | 5893 |
cents on each four dollars. If the price exceeds four dollars or a | 5894 |
multiple thereof by not more than fourteen cents, the amount of | 5895 |
tax is twenty-seven cents for each four dollars plus one cent. If | 5896 |
the price exceeds four dollars or a multiple thereof by more than | 5897 |
fourteen but by not more than twenty-nine cents, the amount of tax | 5898 |
is twenty-seven cents for each four dollars plus two cents. If the | 5899 |
price exceeds four dollars or a multiple thereof by more than | 5900 |
twenty-nine cents the amount of tax is twenty-seven cents for each | 5901 |
four dollars plus the amount of tax for prices thirty cents | 5902 |
through three dollars and ninety-nine cents in accordance with the | 5903 |
schedule above. | 5904 |
If the price exceeds one dollar, the tax is seven cents on | 5916 |
each one dollar. If the price exceeds one dollar or a multiple | 5917 |
thereof by not more than fifteen cents, the amount of tax is seven | 5918 |
cents for each one dollar plus one cent. If the price exceeds one | 5919 |
dollar or a multiple thereof by more than fifteen cents, the | 5920 |
amount of tax is seven cents for each one dollar plus the amount | 5921 |
of tax for prices sixteen cents through ninety-nine cents in | 5922 |
accordance with the schedule above. | 5923 |
If the price exceeds four dollars, the tax is twenty-nine | 5957 |
cents on each four dollars. If the price exceeds four dollars or a | 5958 |
multiple thereof by not more than thirteen cents, the amount of | 5959 |
tax is twenty-nine cents for each four dollars plus one cent. If | 5960 |
the price exceeds four dollars or a multiple thereof by more than | 5961 |
thirteen cents but by not more than twenty-seven cents, the amount | 5962 |
of tax is twenty-nine cents for each four dollars plus two cents. | 5963 |
If the price exceeds four dollars or a multiple thereof by more | 5964 |
than twenty-seven cents, the amount of tax is twenty-nine cents | 5965 |
for each four dollars plus the amount of tax for prices | 5966 |
twenty-eight cents through three dollars and ninety-nine cents in | 5967 |
accordance with the schedule above. | 5968 |
If the price exceeds two dollars, the tax is fifteen cents on | 5988 |
each two dollars. If the price exceeds two dollars or a multiple | 5989 |
thereof by not more than fifteen cents, the amount of tax is | 5990 |
fifteen cents for each two dollars plus one cent. If the price | 5991 |
exceeds two dollars or a multiple thereof by more than fifteen | 5992 |
cents, the amount of tax is fifteen cents for each two dollars | 5993 |
plus the amount of tax for prices sixteen cents through one dollar | 5994 |
and ninety-nine cents in accordance with the schedule above. | 5995 |
If the price exceeds four dollars, the tax is thirty-one | 6031 |
cents on each four dollars. If the price exceeds four dollars or a | 6032 |
multiple thereof by not more than twelve cents, the amount of tax | 6033 |
is thirty-one cents for each four dollars plus one cent. If the | 6034 |
price exceeds four dollars or a multiple thereof by more than | 6035 |
twelve cents but by not more than twenty-five cents, the amount of | 6036 |
tax is thirty-one cents for each four dollars plus two cents. If | 6037 |
the price exceeds four dollars or a multiple thereof by more than | 6038 |
twenty-five cents, the amount of tax is thirty-one cents for each | 6039 |
four dollars plus the amount of tax for prices twenty-six cents | 6040 |
through three dollars and ninety-nine cents in accordance with the | 6041 |
schedule above. | 6042 |
If the price exceeds one dollar, the tax is eight cents on | 6055 |
each one dollar. If the price exceeds one dollar or a multiple | 6056 |
thereof by not more than twelve cents, the amount of tax is eight | 6057 |
cents for each one dollar plus one cent. If the price exceeds one | 6058 |
dollar or a multiple thereof by more than twelve cents but not | 6059 |
more than twenty-five cents, the amount of tax is eight cents for | 6060 |
each one dollar plus two cents. If the price exceeds one dollar or | 6061 |
a multiple thereof by more than twenty-five cents, the amount of | 6062 |
tax is eight cents for each one dollar plus the amount of tax for | 6063 |
prices twenty-six cents through ninety-nine cents in accordance | 6064 |
with the schedule above. | 6065 |
If the price exceeds four dollars, the tax is thirty-three | 6103 |
cents on each four dollars. If the price exceeds four dollars or a | 6104 |
multiple thereof by not more than eleven cents, the amount of tax | 6105 |
is thirty-three cents for each four dollars plus one cent. If the | 6106 |
price exceeds four dollars or a multiple thereof by more than | 6107 |
eleven cents but by not more than twenty-four cents, the amount of | 6108 |
tax is thirty-three cents for each four dollars plus two cents. If | 6109 |
the price exceeds four dollars or a multiple thereof by more than | 6110 |
twenty-four cents, the amount of tax is thirty-three cents for | 6111 |
each four dollars plus the amount of tax for prices twenty-six | 6112 |
cents through three dollars and ninety-nine cents in accordance | 6113 |
with the schedule above. | 6114 |
If the price exceeds two dollars, the tax is seventeen cents | 6136 |
on each two dollars. If the price exceeds two dollars or a | 6137 |
multiple thereof by not more than eleven cents, the amount of tax | 6138 |
is seventeen cents for each two dollars plus one cent. If the | 6139 |
price exceeds two dollars or a multiple thereof by more than | 6140 |
eleven cents but by not more than twenty-three cents, the amount | 6141 |
of tax is seventeen cents for each two dollars plus two cents. If | 6142 |
the price exceeds two dollars or a multiple thereof by more than | 6143 |
twenty-three cents, the amount of tax is seventeen cents for each | 6144 |
two dollars plus the amount of tax for prices twenty-four cents | 6145 |
through one dollar and ninety-nine cents in accordance with the | 6146 |
schedule above. | 6147 |
If the price exceeds four dollars, the tax is thirty-five | 6187 |
cents on each four dollars. If the price exceeds four dollars or a | 6188 |
multiple thereof by not more than eleven cents, the amount of tax | 6189 |
is thirty-five cents for each four dollars plus one cent. If the | 6190 |
price exceeds four dollars or a multiple thereof by more than | 6191 |
eleven cents but by not more than twenty-two cents, the amount of | 6192 |
tax is thirty-five cents for each four dollars plus two cents. If | 6193 |
the price exceeds four dollars or a multiple thereof by more than | 6194 |
twenty-two cents, the amount of tax is thirty-five cents for each | 6195 |
four dollars plus the amount of tax for prices twenty-three cents | 6196 |
through three dollars and ninety-nine cents in accordance with the | 6197 |
schedule above. | 6198 |
If the price exceeds one dollar, the tax is nine cents on | 6212 |
each one dollar. If the price exceeds one dollar or a multiple | 6213 |
thereof by not more than eleven cents, the amount of tax is nine | 6214 |
cents for each one dollar plus one cent. If the price exceeds one | 6215 |
dollar or a multiple thereof by more than eleven cents but by not | 6216 |
more than twenty-two cents, the amount of tax is nine cents for | 6217 |
each one dollar plus two cents. If the price exceeds one dollar or | 6218 |
a multiple thereof by more than twenty-two cents, the amount of | 6219 |
tax is nine cents for each one dollar plus the amount of tax for | 6220 |
prices twenty-three cents through ninety-nine cents in accordance | 6221 |
with the schedule above. | 6222 |
(C) On and after July 1, 2005, and on and before December 31, | 6223 |
2005, the combined taxes levied by sections 5739.02 and 5741.02 | 6224 |
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021, | 6225 |
5741.022, and 5741.023 of the Revised Code shall be collected in | 6226 |
accordance with the following schedules: | 6227 |
If the price exceeds four dollars, the tax is twenty-three | 6255 |
cents on each four dollars. If the price exceeds four dollars or a | 6256 |
multiple thereof by not more than seventeen cents, the amount of | 6257 |
tax is twenty-three cents for each four dollars plus one cent. If | 6258 |
the price exceeds four dollars or a multiple thereof by more than | 6259 |
seventeen cents, the amount of tax is twenty-three cents for each | 6260 |
four dollars plus the amount of tax for prices eighteen cents | 6261 |
through three dollars and ninety-nine cents in accordance with the | 6262 |
schedule above. | 6263 |
If the price exceeds one dollar, the tax is six cents on each | 6274 |
one dollar. If the price exceeds one dollar or a multiple thereof | 6275 |
by not more than seventeen cents, the amount of tax is six cents | 6276 |
for each one dollar plus one cent. If the price exceeds one dollar | 6277 |
or a multiple thereof by more than seventeen cents, the amount of | 6278 |
tax is six cents for each one dollar plus the amount of tax for | 6279 |
prices eighteen cents through ninety-nine cents in accordance with | 6280 |
the schedule above. | 6281 |
If the price exceeds four dollars, the tax is twenty-five | 6312 |
cents on each four dollars. If the price exceeds four dollars or a | 6313 |
multiple thereof by not more than sixteen cents, the amount of tax | 6314 |
is twenty-five cents for each four dollars plus one cent. If the | 6315 |
price exceeds four dollars or a multiple thereof by more than | 6316 |
sixteen cents, the amount of tax is twenty-five cents for each | 6317 |
four dollars plus the amount of tax for prices seventeen cents | 6318 |
through three dollars and ninety-nine cents in accordance with the | 6319 |
schedule above. | 6320 |
If the price exceeds two dollars, the tax is thirteen cents | 6337 |
on each two dollars. If the price exceeds two dollars or a | 6338 |
multiple thereof by not more than fifteen cents, the amount of tax | 6339 |
is thirteen cents for each two dollars plus one cent. If the price | 6340 |
exceeds two dollars or a multiple thereof by more than fifteen | 6341 |
cents, the amount of tax is thirteen cents for each two dollars | 6342 |
plus the amount of tax for prices sixteen cents through one dollar | 6343 |
and ninety-nine cents in accordance with the schedule above. | 6344 |
If the price exceeds four dollars, the tax is twenty-seven | 6376 |
cents on each four dollars. If the price exceeds four dollars or a | 6377 |
multiple thereof by not more than fourteen cents, the amount of | 6378 |
tax is twenty-seven cents for each four dollars plus one cent. If | 6379 |
the price exceeds four dollars or a multiple thereof by more than | 6380 |
fourteen but by not more than twenty-nine cents, the amount of tax | 6381 |
is twenty-seven cents for each four dollars plus two cents. If the | 6382 |
price exceeds four dollars or a multiple thereof by more than | 6383 |
twenty-nine cents the amount of tax is twenty-seven cents for each | 6384 |
four dollars plus the amount of tax for prices thirty cents | 6385 |
through three dollars and ninety-nine cents in accordance with the | 6386 |
schedule above. | 6387 |
If the price exceeds one dollar, the tax is seven cents on | 6399 |
each one dollar. If the price exceeds one dollar or a multiple | 6400 |
thereof by not more than fifteen cents, the amount of tax is seven | 6401 |
cents for each one dollar plus one cent. If the price exceeds one | 6402 |
dollar or a multiple thereof by more than fifteen cents, the | 6403 |
amount of tax is seven cents for each one dollar plus the amount | 6404 |
of tax for prices sixteen cents through ninety-nine cents in | 6405 |
accordance with the schedule above. | 6406 |
If the price exceeds four dollars, the tax is twenty-nine | 6440 |
cents on each four dollars. If the price exceeds four dollars or a | 6441 |
multiple thereof by not more than thirteen cents, the amount of | 6442 |
tax is twenty-nine cents for each four dollars plus one cent. If | 6443 |
the price exceeds four dollars or a multiple thereof by more than | 6444 |
thirteen cents but by not more than twenty-seven cents, the amount | 6445 |
of tax is twenty-nine cents for each four dollars plus two cents. | 6446 |
If the price exceeds four dollars or a multiple thereof by more | 6447 |
than twenty-seven cents, the amount of tax is twenty-nine cents | 6448 |
for each four dollars plus the amount of tax for prices | 6449 |
twenty-eight cents through three dollars and ninety-nine cents in | 6450 |
accordance with the schedule above. | 6451 |
If the price exceeds two dollars, the tax is fifteen cents on | 6470 |
each two dollars. If the price exceeds two dollars or a multiple | 6471 |
thereof by not more than fifteen cents, the amount of tax is | 6472 |
fifteen cents for each two dollars plus one cent. If the price | 6473 |
exceeds two dollars or a multiple thereof by more than fifteen | 6474 |
cents, the amount of tax is fifteen cents for each two dollars | 6475 |
plus the amount of tax for prices sixteen cents through one dollar | 6476 |
and ninety-nine cents in accordance with the schedule above. | 6477 |
If the price exceeds four dollars, the tax is thirty-one | 6513 |
cents on each four dollars. If the price exceeds four dollars or a | 6514 |
multiple thereof by not more than twelve cents, the amount of tax | 6515 |
is thirty-one cents for each four dollars plus one cent. If the | 6516 |
price exceeds four dollars or a multiple thereof by more than | 6517 |
twelve cents but not more than twenty-five cents, the amount of | 6518 |
tax is thirty-one cents for each four dollars plus two cents. If | 6519 |
the price exceeds four dollars or a multiple thereof by more than | 6520 |
twenty-five cents, the amount of tax is thirty-one cents for each | 6521 |
four dollars plus the amount of tax for prices twenty-six cents | 6522 |
through three dollars and ninety-nine cents in accordance with the | 6523 |
schedule above. | 6524 |
If the price exceeds one dollar, the tax is eight cents on | 6542 |
each one dollar. If the price exceeds one dollar or a multiple | 6543 |
thereof by not more than twelve cents, the amount of tax is eight | 6544 |
cents for each one dollar plus one cent. If the price exceeds one | 6545 |
dollar or a multiple thereof by more than twelve cents but not | 6546 |
more than twenty-five cents, the amount of tax is eight cents for | 6547 |
each one dollar plus two cents. If the price exceeds one dollar or | 6548 |
a multiple thereof by more than twenty-five cents, the amount of | 6549 |
tax is eight cents for each one dollar plus the amount of tax for | 6550 |
prices twenty-six cents through ninety-nine cents in accordance | 6551 |
with the schedule above. | 6552 |
If the price exceeds four dollars, the tax is thirty-three | 6590 |
cents on each four dollars. If the price exceeds four dollars or a | 6591 |
multiple thereof by not more than eleven cents, the amount of tax | 6592 |
is thirty-three cents for each four dollars plus one cent. If the | 6593 |
price exceeds four dollars or a multiple thereof by more than | 6594 |
eleven cents but not more than twenty-four cents, the amount of | 6595 |
tax is thirty-three cents for each four dollars plus two cents. If | 6596 |
the price exceeds four dollars or a multiple thereof by more than | 6597 |
twenty-four cents, the amount of tax is thirty-three cents for | 6598 |
each four dollars plus the amount of tax for prices twenty-six | 6599 |
cents through three dollars and ninety-nine cents in accordance | 6600 |
with the schedule above. | 6601 |
If the price exceeds two dollars, the tax is seventeen cents | 6622 |
on each two dollars. If the price exceeds two dollars or a | 6623 |
multiple thereof by not more than eleven cents, the amount of tax | 6624 |
is seventeen cents for each two dollars plus one cent. If the | 6625 |
price exceeds two dollars or a multiple thereof by more than | 6626 |
eleven cents but not more than twenty-three cents, the amount of | 6627 |
tax is seventeen cents for each two dollars plus two cents. If the | 6628 |
price exceeds two dollars or a multiple thereof by more than | 6629 |
twenty-three cents, the amount of tax is seventeen cents for each | 6630 |
two dollars plus the amount of tax for prices twenty-four cents | 6631 |
through one dollar and ninety-nine cents in accordance with the | 6632 |
schedule above. | 6633 |
(2) On sales in excess of fifteen cents, multiply the price | 6638 |
by the aggregate rate of taxes in effect under sections 5739.02 | 6639 |
and 5741.02 and sections 5739.021, 5739.023, 5739.026, 5741.021, | 6640 |
5741.022, and 5741.023 of the Revised Code. The computation shall | 6641 |
be carried out to six decimal places. If the result is a | 6642 |
fractional amount of a cent, the calculated tax shall be increased | 6643 |
to the next highest cent and that amount shall be collected by the | 6644 |
vendor. | 6645 |
(E) On and after January 1, 2006, a vendor shall compute the | 6646 |
tax on each sale by multiplying the price by the aggregate rate of | 6647 |
taxes in effect under sections 5739.02 and 5741.02, and sections | 6648 |
5739.021, 5739.023, 5739.026, 5741.021, 5741.022, and 5741.023 of | 6649 |
the Revised Code. The computation shall be carried out to three | 6650 |
decimal places. If the result is a fractional amount of a cent, | 6651 |
the calculated tax shall be rounded to a whole cent using a method | 6652 |
that rounds up to the next cent whenever the third decimal place | 6653 |
is greater than four. A vendor may elect to compute the tax due on | 6654 |
a transaction on an item or an invoice basis. | 6655 |
(F) In auditing a vendor, the tax commissioner shall consider | 6656 |
the method prescribed by this section that was used by the vendor | 6657 |
in determining and collecting the tax due under this chapter on | 6658 |
taxable transactions. If the vendor correctly collects and remits | 6659 |
the tax due under this chapter in accordance with the schedules in | 6660 |
divisions (A), (B), and (C) of this section or in accordance with | 6661 |
the computation prescribed in division (D) or (E) of this section, | 6662 |
the commissioner shall not assess any additional tax on those | 6663 |
transactions. | 6664 |
(G)(1) With respect to a sale of a fractional ownership | 6665 |
program aircraft used primarily in a fractional aircraft ownership | 6666 |
program, including all accessories attached to such aircraft, the | 6667 |
tax shall be calculated pursuant to divisions (A) to (E) of this | 6668 |
section, provided that the tax commissioner shall modify those | 6669 |
calculations so that the maximum tax on each program aircraft is | 6670 |
eight hundred dollars. In the case of a sale of a fractional | 6671 |
interest that is less than one hundred per cent of the program | 6672 |
aircraft, the tax charged on the transaction shall be eight | 6673 |
hundred dollars multiplied by a fraction, the numerator of which | 6674 |
is the percentage of ownership or possession in the aircraft being | 6675 |
purchased in the transaction, and the denominator of which is one | 6676 |
hundred per cent. | 6677 |
Sec. 5747.01. Except as otherwise expressly provided or | 6683 |
clearly appearing from the context, any term used in this chapter | 6684 |
that is not otherwise defined in this section has the same meaning | 6685 |
as when used in a comparable context in the laws of the United | 6686 |
States relating to federal income taxes or if not used in a | 6687 |
comparable context in those laws, has the same meaning as in | 6688 |
section 5733.40 of the Revised Code. Any reference in this chapter | 6689 |
to the Internal Revenue Code includes other laws of the United | 6690 |
States relating to federal income taxes. | 6691 |
(6) In the case of a taxpayer who is a beneficiary of a trust | 6716 |
that makes an accumulation distribution as defined in section 665 | 6717 |
of the Internal Revenue Code, add, for the beneficiary's taxable | 6718 |
years beginning before 2002, the portion, if any, of such | 6719 |
distribution that does not exceed the undistributed net income of | 6720 |
the trust for the three taxable years preceding the taxable year | 6721 |
in which the distribution is made to the extent that the portion | 6722 |
was not included in the trust's taxable income for any of the | 6723 |
trust's taxable years beginning in 2002 or thereafter. | 6724 |
"Undistributed net income of a trust" means the taxable income of | 6725 |
the trust increased by (a)(i) the additions to adjusted gross | 6726 |
income required under division (A) of this section and (ii) the | 6727 |
personal exemptions allowed to the trust pursuant to section | 6728 |
642(b) of the Internal Revenue Code, and decreased by (b)(i) the | 6729 |
deductions to adjusted gross income required under division (A) of | 6730 |
this section, (ii) the amount of federal income taxes attributable | 6731 |
to such income, and (iii) the amount of taxable income that has | 6732 |
been included in the adjusted gross income of a beneficiary by | 6733 |
reason of a prior accumulation distribution. Any undistributed net | 6734 |
income included in the adjusted gross income of a beneficiary | 6735 |
shall reduce the undistributed net income of the trust commencing | 6736 |
with the earliest years of the accumulation period. | 6737 |
(10) Deduct or add amounts, as provided under section 5747.70 | 6752 |
of the Revised Code, related to contributions to variable college | 6753 |
savings program accounts made or tuition units purchased pursuant | 6754 |
to Chapter 3334. of the Revised CodeFor a taxpayer that provides | 6755 |
broadband service, deduct the taxpayer's net profits from | 6756 |
providing broadband service in this state multiplied by a | 6757 |
fraction, the numerator of which is the original cost of tangible | 6758 |
personal property necessary for the provision of broadband service | 6759 |
in rural areas of this state installed on or after the effective | 6760 |
date of this amendment, and the denominator of which is the | 6761 |
original cost of tangible personal property necessary for the | 6762 |
provision of broadband service in this state and installed on or | 6763 |
after that date. A taxpayer that is an equity owner of a | 6764 |
pass-through entity that provides broadband service may deduct the | 6765 |
taxpayer's distributive or proportionate share of the entity's net | 6766 |
profits from providing such service multiplied by that fraction. A | 6767 |
deduction is not allowed under this division if the taxpayer | 6768 |
claims the exclusion under division (F)(2)(ll) of section 5751.01 | 6769 |
of the Revised Code for any tax period that is included partly or | 6770 |
wholly in the taxable year. For the purposes of this division, | 6771 |
"broadband service" and "rural area" have the same meanings as in | 6772 |
7 U.S.C. 950bb. | 6773 |
(11)(a) Deduct, to the extent not otherwise allowable as a | 6774 |
deduction or exclusion in computing federal or Ohio adjusted gross | 6775 |
income for the taxable year, the amount the taxpayer paid during | 6776 |
the taxable year for medical care insurance and qualified | 6777 |
long-term care insurance for the taxpayer, the taxpayer's spouse, | 6778 |
and dependents. No deduction for medical care insurance under | 6779 |
division (A)(11) of this section shall be allowed either to any | 6780 |
taxpayer who is eligible to participate in any subsidized health | 6781 |
plan maintained by any employer of the taxpayer or of the | 6782 |
taxpayer's spouse, or to any taxpayer who is entitled to, or on | 6783 |
application would be entitled to, benefits under part A of Title | 6784 |
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. | 6785 |
301, as amended. For the purposes of division (A)(11)(a) of this | 6786 |
section, "subsidized health plan" means a health plan for which | 6787 |
the employer pays any portion of the plan's cost. The deduction | 6788 |
allowed under division (A)(11)(a) of this section shall be the net | 6789 |
of any related premium refunds, related premium reimbursements, or | 6790 |
related insurance premium dividends received during the taxable | 6791 |
year. | 6792 |
(b) Deduct, to the extent not otherwise deducted or excluded | 6793 |
in computing federal or Ohio adjusted gross income during the | 6794 |
taxable year, the amount the taxpayer paid during the taxable | 6795 |
year, not compensated for by any insurance or otherwise, for | 6796 |
medical care of the taxpayer, the taxpayer's spouse, and | 6797 |
dependents, to the extent the expenses exceed seven and one-half | 6798 |
per cent of the taxpayer's federal adjusted gross income. | 6799 |
(c) Deduct, to the extent not otherwise deducted or excluded | 6800 |
in computing federal or Ohio adjusted gross income, any amount | 6801 |
included in federal adjusted gross income under section 105 or not | 6802 |
excluded under section 106 of the Internal Revenue Code solely | 6803 |
because it relates to an accident and health plan for a person who | 6804 |
otherwise would be a "qualifying relative" and thus a "dependent" | 6805 |
under section 152 of the Internal Revenue Code but for the fact | 6806 |
that the person fails to meet the income and support limitations | 6807 |
under section 152(d)(1)(B) and (C) of the Internal Revenue Code. | 6808 |
(d) For purposes of division (A)(11) of this section, | 6809 |
"medical care" has the meaning given in section 213 of the | 6810 |
Internal Revenue Code, subject to the special rules, limitations, | 6811 |
and exclusions set forth therein, and "qualified long-term care" | 6812 |
has the same meaning given in section 7702B(c) of the Internal | 6813 |
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c) | 6814 |
of this section, "dependent" includes a person who otherwise would | 6815 |
be a "qualifying relative" and thus a "dependent" under section | 6816 |
152 of the Internal Revenue Code but for the fact that the person | 6817 |
fails to meet the income and support limitations under section | 6818 |
152(d)(1)(B) and (C) of the Internal Revenue Code. | 6819 |
(12)(a) Deduct any amount included in federal adjusted gross | 6820 |
income solely because the amount represents a reimbursement or | 6821 |
refund of expenses that in any year the taxpayer had deducted as | 6822 |
an itemized deduction pursuant to section 63 of the Internal | 6823 |
Revenue Code and applicable United States department of the | 6824 |
treasury regulations. The deduction otherwise allowed under | 6825 |
division (A)(12)(a) of this section shall be reduced to the extent | 6826 |
the reimbursement is attributable to an amount the taxpayer | 6827 |
deducted under this section in any taxable year. | 6828 |
(14) Deduct an amount equal to the deposits made to, and net | 6844 |
investment earnings of, a medical savings account during the | 6845 |
taxable year, in accordance with section 3924.66 of the Revised | 6846 |
Code. The deduction allowed by division (A)(14) of this section | 6847 |
does not apply to medical savings account deposits and earnings | 6848 |
otherwise deducted or excluded for the current or any other | 6849 |
taxable year from the taxpayer's federal adjusted gross income. | 6850 |
(17) Deduct the amount contributed by the taxpayer to an | 6870 |
individual development account program established by a county | 6871 |
department of job and family services pursuant to sections 329.11 | 6872 |
to 329.14 of the Revised Code for the purpose of matching funds | 6873 |
deposited by program participants. On request of the tax | 6874 |
commissioner, the taxpayer shall provide any information that, in | 6875 |
the tax commissioner's opinion, is necessary to establish the | 6876 |
amount deducted under division (A)(17) of this section. | 6877 |
(18) Beginning in taxable year 2001 but not for any taxable | 6878 |
year beginning after December 31, 2005, if the taxpayer is married | 6879 |
and files a joint return and the combined federal adjusted gross | 6880 |
income of the taxpayer and the taxpayer's spouse for the taxable | 6881 |
year does not exceed one hundred thousand dollars, or if the | 6882 |
taxpayer is single and has a federal adjusted gross income for the | 6883 |
taxable year not exceeding fifty thousand dollars, deduct amounts | 6884 |
paid during the taxable year for qualified tuition and fees paid | 6885 |
to an eligible institution for the taxpayer, the taxpayer's | 6886 |
spouse, or any dependent of the taxpayer, who is a resident of | 6887 |
this state and is enrolled in or attending a program that | 6888 |
culminates in a degree or diploma at an eligible institution. The | 6889 |
deduction may be claimed only to the extent that qualified tuition | 6890 |
and fees are not otherwise deducted or excluded for any taxable | 6891 |
year from federal or Ohio adjusted gross income. The deduction may | 6892 |
not be claimed for educational expenses for which the taxpayer | 6893 |
claims a credit under section 5747.27 of the Revised Code. | 6894 |
(20)(a)(i) Subject to divisions (A)(20)(a)(iii), (iv), and | 6899 |
(v) of this section, add five-sixths of the amount of depreciation | 6900 |
expense allowed by subsection (k) of section 168 of the Internal | 6901 |
Revenue Code, including the taxpayer's proportionate or | 6902 |
distributive share of the amount of depreciation expense allowed | 6903 |
by that subsection to a pass-through entity in which the taxpayer | 6904 |
has a direct or indirect ownership interest. | 6905 |
(iii) Subject to division (A)(20)(a)(v) of this section, for | 6912 |
taxable years beginning in 2012 or thereafter, if the increase in | 6913 |
income taxes withheld by the taxpayer is equal to or greater than | 6914 |
ten per cent of income taxes withheld by the taxpayer during the | 6915 |
taxpayer's immediately preceding taxable year, "two-thirds" shall | 6916 |
be substituted for "five-sixths" for the purpose of divisions | 6917 |
(A)(20)(a)(i) and (ii) of this section. | 6918 |
(iv) Subject to division (A)(20)(a)(v) of this section, for | 6919 |
taxable years beginning in 2012 or thereafter, a taxpayer is not | 6920 |
required to add an amount under division (A)(20) of this section | 6921 |
if the increase in income taxes withheld by the taxpayer and by | 6922 |
any pass-through entity in which the taxpayer has a direct or | 6923 |
indirect ownership interest is equal to or greater than the sum of | 6924 |
(I) the amount of qualifying section 179 depreciation expense and | 6925 |
(II) the amount of depreciation expense allowed to the taxpayer by | 6926 |
subsection (k) of section 168 of the Internal Revenue Code, and | 6927 |
including the taxpayer's proportionate or distributive shares of | 6928 |
such amounts allowed to any such pass-through entities. | 6929 |
(c) To the extent the add-back required under division | 6943 |
(A)(20)(a) of this section is attributable to property generating | 6944 |
nonbusiness income or loss allocated under section 5747.20 of the | 6945 |
Revised Code, the add-back shall be sitused to the same location | 6946 |
as the nonbusiness income or loss generated by the property for | 6947 |
the purpose of determining the credit under division (A) of | 6948 |
section 5747.05 of the Revised Code. Otherwise, the add-back shall | 6949 |
be apportioned, subject to one or more of the four alternative | 6950 |
methods of apportionment enumerated in section 5747.21 of the | 6951 |
Revised Code. | 6952 |
(b) If the amount deducted under division (A)(21)(a) of this | 6991 |
section is attributable to an add-back allocated under division | 6992 |
(A)(20)(c) of this section, the amount deducted shall be sitused | 6993 |
to the same location. Otherwise, the add-back shall be apportioned | 6994 |
using the apportionment factors for the taxable year in which the | 6995 |
deduction is taken, subject to one or more of the four alternative | 6996 |
methods of apportionment enumerated in section 5747.21 of the | 6997 |
Revised Code. | 6998 |
(c) No deduction is available under division (A)(21)(a) of | 6999 |
this section with regard to any depreciation allowed by section | 7000 |
168(k) of the Internal Revenue Code and by the qualifying section | 7001 |
179 depreciation expense amount to the extent that such | 7002 |
depreciation results in or increases a federal net operating loss | 7003 |
carryback or carryforward. If no such deduction is available for a | 7004 |
taxable year, the taxpayer may carry forward the amount not | 7005 |
deducted in such taxable year to the next taxable year and add | 7006 |
that amount to any deduction otherwise available under division | 7007 |
(A)(21)(a) of this section for that next taxable year. The | 7008 |
carryforward of amounts not so deducted shall continue until the | 7009 |
entire addition required by division (A)(20)(a) of this section | 7010 |
has been deducted. | 7011 |
(24) Deduct, to the extent included in federal adjusted gross | 7024 |
income and not otherwise allowable as a deduction or exclusion in | 7025 |
computing federal or Ohio adjusted gross income for the taxable | 7026 |
year, military pay and allowances received by the taxpayer during | 7027 |
the taxable year for active duty service in the United States | 7028 |
army, air force, navy, marine corps, or coast guard or reserve | 7029 |
components thereof or the national guard. The deduction may not be | 7030 |
claimed for military pay and allowances received by the taxpayer | 7031 |
while the taxpayer is stationed in this state. | 7032 |
(25) Deduct, to the extent not otherwise allowable as a | 7033 |
deduction or exclusion in computing federal or Ohio adjusted gross | 7034 |
income for the taxable year and not otherwise compensated for by | 7035 |
any other source, the amount of qualified organ donation expenses | 7036 |
incurred by the taxpayer during the taxable year, not to exceed | 7037 |
ten thousand dollars. A taxpayer may deduct qualified organ | 7038 |
donation expenses only once for all taxable years beginning with | 7039 |
taxable years beginning in 2007. | 7040 |
(26) Deduct, to the extent not otherwise deducted or excluded | 7050 |
in computing federal or Ohio adjusted gross income for the taxable | 7051 |
year, amounts received by the taxpayer as retired military | 7052 |
personnel pay for service in the United States army, navy, air | 7053 |
force, coast guard, or marine corps or reserve components thereof, | 7054 |
or the national guard, or received by the surviving spouse or | 7055 |
former spouse of such a taxpayer under the survivor benefit plan | 7056 |
on account of such a taxpayer's death. If the taxpayer receives | 7057 |
income on account of retirement paid under the federal civil | 7058 |
service retirement system or federal employees retirement system, | 7059 |
or under any successor retirement program enacted by the congress | 7060 |
of the United States that is established and maintained for | 7061 |
retired employees of the United States government, and such | 7062 |
retirement income is based, in whole or in part, on credit for the | 7063 |
taxpayer's military service, the deduction allowed under this | 7064 |
division shall include only that portion of such retirement income | 7065 |
that is attributable to the taxpayer's military service, to the | 7066 |
extent that portion of such retirement income is otherwise | 7067 |
included in federal adjusted gross income and is not otherwise | 7068 |
deducted under this section. Any amount deducted under division | 7069 |
(A)(26) of this section is not included in a taxpayer's adjusted | 7070 |
gross income for the purposes of section 5747.055 of the Revised | 7071 |
Code. No amount may be deducted under division (A)(26) of this | 7072 |
section on the basis of which a credit was claimed under section | 7073 |
5747.055 of the Revised Code. | 7074 |
(30) Deduct, to the extent not otherwise deducted or excluded | 7091 |
in computing federal or Ohio adjusted gross income for the taxable | 7092 |
year, any income derived from providing public services under a | 7093 |
contract through a project owned by the state, as described in | 7094 |
section 126.604 of the Revised Code or derived from a transfer | 7095 |
agreement or from the enterprise transferred under that agreement | 7096 |
under section 4313.02 of the Revised Code. | 7097 |
(31) Deduct, to the extent not otherwise deducted or excluded | 7098 |
in computing federal or Ohio adjusted gross income for the taxable | 7099 |
year, Ohio college opportunity or federal Pell grant amounts | 7100 |
received by the taxpayer or the taxpayer's spouse or dependent | 7101 |
pursuant to section 3333.122 of the Revised Code or 20 U.S.C. | 7102 |
1070a, et seq., and used to pay room or board furnished by the | 7103 |
educational institution for which the grant was awarded at the | 7104 |
institution's facilities, including meal plans administered by the | 7105 |
institution. For the purposes of this division, receipt of a grant | 7106 |
includes the distribution of a grant directly to an educational | 7107 |
institution and the crediting of the grant to the enrollee's | 7108 |
account with the institution. | 7109 |
(B) "Business income" means income, including gain or loss, | 7133 |
arising from transactions, activities, and sources in the regular | 7134 |
course of a trade or business and includes income, gain, or loss | 7135 |
from real property, tangible property, and intangible property if | 7136 |
the acquisition, rental, management, and disposition of the | 7137 |
property constitute integral parts of the regular course of a | 7138 |
trade or business operation. "Business income" includes income, | 7139 |
including gain or loss, from a partial or complete liquidation of | 7140 |
a business, including, but not limited to, gain or loss from the | 7141 |
sale or other disposition of goodwill. | 7142 |
(C) "Nonbusiness income" means all income other than business | 7143 |
income and may include, but is not limited to, compensation, rents | 7144 |
and royalties from real or tangible personal property, capital | 7145 |
gains, interest, dividends and distributions, patent or copyright | 7146 |
royalties, or lottery winnings, prizes, and awards. | 7147 |
(a) A trust resides in this state for the trust's current | 7171 |
taxable year to the extent, as described in division (I)(3)(d) of | 7172 |
this section, that the trust consists directly or indirectly, in | 7173 |
whole or in part, of assets, net of any related liabilities, that | 7174 |
were transferred, or caused to be transferred, directly or | 7175 |
indirectly, to the trust by any of the following: | 7176 |
(iii) A person who was domiciled in this state for the | 7187 |
purposes of this chapter when the trust document or instrument or | 7188 |
part of the trust document or instrument became irrevocable, but | 7189 |
only if at least one of the trust's qualifying beneficiaries is a | 7190 |
resident domiciled in this state for the purposes of this chapter | 7191 |
during all or some portion of the trust's current taxable year. If | 7192 |
a trust document or instrument became irrevocable upon the death | 7193 |
of a person who at the time of death was domiciled in this state | 7194 |
for purposes of this chapter, that person is a person described in | 7195 |
division (I)(3)(a)(iii) of this section. | 7196 |
(c) With respect to a trust other than a charitable lead | 7200 |
trust, "qualifying beneficiary" has the same meaning as "potential | 7201 |
current beneficiary" as defined in section 1361(e)(2) of the | 7202 |
Internal Revenue Code, and with respect to a charitable lead trust | 7203 |
"qualifying beneficiary" is any current, future, or contingent | 7204 |
beneficiary, but with respect to any trust "qualifying | 7205 |
beneficiary" excludes a person or a governmental entity or | 7206 |
instrumentality to any of which a contribution would qualify for | 7207 |
the charitable deduction under section 170 of the Internal Revenue | 7208 |
Code. | 7209 |
(d) For the purposes of division (I)(3)(a) of this section, | 7210 |
the extent to which a trust consists directly or indirectly, in | 7211 |
whole or in part, of assets, net of any related liabilities, that | 7212 |
were transferred directly or indirectly, in whole or part, to the | 7213 |
trust by any of the sources enumerated in that division shall be | 7214 |
ascertained by multiplying the fair market value of the trust's | 7215 |
assets, net of related liabilities, by the qualifying ratio, which | 7216 |
shall be computed as follows: | 7217 |
(ii) Each subsequent time the trust receives assets, a | 7224 |
revised qualifying ratio shall be computed. The numerator of the | 7225 |
revised qualifying ratio is the sum of (1) the fair market value | 7226 |
of the trust's assets immediately prior to the subsequent | 7227 |
transfer, net of any related liabilities, multiplied by the | 7228 |
qualifying ratio last computed without regard to the subsequent | 7229 |
transfer, and (2) the fair market value of the subsequently | 7230 |
transferred assets at the time transferred, net of any related | 7231 |
liabilities, from sources enumerated in division (I)(3)(a) of this | 7232 |
section. The denominator of the revised qualifying ratio is the | 7233 |
fair market value of all the trust's assets immediately after the | 7234 |
subsequent transfer, net of any related liabilities. | 7235 |
(ii) The transfer is made to a trust to which the decedent, | 7264 |
prior to the decedent's death, had directly or indirectly | 7265 |
transferred assets, net of any related liabilities, while the | 7266 |
decedent was domiciled in this state for the purposes of this | 7267 |
chapter, and prior to the death of the decedent the trust became | 7268 |
irrevocable while the decedent was domiciled in this state for the | 7269 |
purposes of this chapter. | 7270 |
(1) Add interest or dividends, net of ordinary, necessary, | 7336 |
and reasonable expenses not deducted in computing federal taxable | 7337 |
income, on obligations or securities of any state or of any | 7338 |
political subdivision or authority of any state, other than this | 7339 |
state and its subdivisions and authorities, but only to the extent | 7340 |
that such net amount is not otherwise includible in Ohio taxable | 7341 |
income and is described in either division (S)(1)(a) or (b) of | 7342 |
this section: | 7343 |
(2) Add interest or dividends, net of ordinary, necessary, | 7349 |
and reasonable expenses not deducted in computing federal taxable | 7350 |
income, on obligations of any authority, commission, | 7351 |
instrumentality, territory, or possession of the United States to | 7352 |
the extent that the interest or dividends are exempt from federal | 7353 |
income taxes but not from state income taxes, but only to the | 7354 |
extent that such net amount is not otherwise includible in Ohio | 7355 |
taxable income and is described in either division (S)(1)(a) or | 7356 |
(b) of this section; | 7357 |
(4) Deduct interest or dividends, net of related expenses | 7360 |
deducted in computing federal taxable income, on obligations of | 7361 |
the United States and its territories and possessions or of any | 7362 |
authority, commission, or instrumentality of the United States to | 7363 |
the extent that the interest or dividends are exempt from state | 7364 |
taxes under the laws of the United States, but only to the extent | 7365 |
that such amount is included in federal taxable income and is | 7366 |
described in either division (S)(1)(a) or (b) of this section; | 7367 |
(5) Deduct the amount of wages and salaries, if any, not | 7368 |
otherwise allowable as a deduction but that would have been | 7369 |
allowable as a deduction in computing federal taxable income for | 7370 |
the taxable year, had the targeted jobs credit allowed under | 7371 |
sections 38, 51, and 52 of the Internal Revenue Code not been in | 7372 |
effect, but only to the extent such amount relates either to | 7373 |
income included in federal taxable income for the taxable year or | 7374 |
to income of the S portion of an electing small business trust for | 7375 |
the taxable year; | 7376 |
(9)(a) Deduct any amount included in federal taxable income | 7392 |
solely because the amount represents a reimbursement or refund of | 7393 |
expenses that in a previous year the decedent had deducted as an | 7394 |
itemized deduction pursuant to section 63 of the Internal Revenue | 7395 |
Code and applicable treasury regulations. The deduction otherwise | 7396 |
allowed under division (S)(9)(a) of this section shall be reduced | 7397 |
to the extent the reimbursement is attributable to an amount the | 7398 |
taxpayer or decedent deducted under this section in any taxable | 7399 |
year. | 7400 |
(12) Deduct any amount, net of related expenses deducted in | 7429 |
computing federal taxable income, that a trust is required to | 7430 |
report as farm income on its federal income tax return, but only | 7431 |
if the assets of the trust include at least ten acres of land | 7432 |
satisfying the definition of "land devoted exclusively to | 7433 |
agricultural use" under section 5713.30 of the Revised Code, | 7434 |
regardless of whether the land is valued for tax purposes as such | 7435 |
land under sections 5713.30 to 5713.38 of the Revised Code. If the | 7436 |
trust is a pass-through entity investor, section 5747.231 of the | 7437 |
Revised Code applies in ascertaining if the trust is eligible to | 7438 |
claim the deduction provided by division (S)(12) of this section | 7439 |
in connection with the pass-through entity's farm income. | 7440 |
(15) Deduct, to the extent not otherwise deducted or excluded | 7457 |
in computing federal or Ohio taxable income for the taxable year, | 7458 |
income a qualifying landlord received from the lease or rental of | 7459 |
qualifying residential rental property during the first taxable | 7460 |
year in which the qualifying landlord received rental income from | 7461 |
the property and during the four succeeding years. As used in this | 7462 |
division, "qualifying landlord" and "qualifying residential rental | 7463 |
property" have the same meanings as in division (A)(32) of this | 7464 |
section. | 7465 |
(16) For a taxpayer that provides broadband service, deduct | 7466 |
the taxpayer's net profits from providing broadband service in | 7467 |
this state multiplied by a fraction, the numerator of which is the | 7468 |
original cost of tangible personal property necessary for the | 7469 |
provision of broadband service in rural areas of this state | 7470 |
installed on or after the effective date of this amendment, and | 7471 |
the denominator of which is the original cost of tangible personal | 7472 |
property necessary for the provision of broadband service in this | 7473 |
state and installed on or after that date. A taxpayer that is an | 7474 |
equity owner of a pass-through entity that provides broadband | 7475 |
service may deduct the taxpayer's distributive or proportionate | 7476 |
share of the entity's net profits from providing such service | 7477 |
multiplied by that fraction. A deduction is not allowed under this | 7478 |
division if the taxpayer claims the exclusion under division | 7479 |
(F)(2)(ll) of section 5751.01 of the Revised Code for any tax | 7480 |
period that is included partly or wholly in the taxable year. For | 7481 |
the purposes of this division, "broadband service" and "rural | 7482 |
area" have the same meanings as in 7 U.S.C. 950bb. | 7483 |
(AA)(1) "Eligible institution" means a state university or | 7503 |
state institution of higher education as defined in section | 7504 |
3345.011 of the Revised Code, or a private, nonprofit college, | 7505 |
university, or other post-secondary institution located in this | 7506 |
state that possesses a certificate of authorization issued by the | 7507 |
Ohio board of regents pursuant to Chapter 1713. of the Revised | 7508 |
Code or a certificate of registration issued by the state board of | 7509 |
career colleges and schools under Chapter 3332. of the Revised | 7510 |
Code. | 7511 |
(2) "Qualified tuition and fees" means tuition and fees | 7512 |
imposed by an eligible institution as a condition of enrollment or | 7513 |
attendance, not exceeding two thousand five hundred dollars in | 7514 |
each of the individual's first two years of post-secondary | 7515 |
education. If the individual is a part-time student, "qualified | 7516 |
tuition and fees" includes tuition and fees paid for the academic | 7517 |
equivalent of the first two years of post-secondary education | 7518 |
during a maximum of five taxable years, not exceeding a total of | 7519 |
five thousand dollars. "Qualified tuition and fees" does not | 7520 |
include: | 7521 |
(b) The qualifying trust amount multiplied by a fraction, the | 7568 |
numerator of which is the sum of the book value of the qualifying | 7569 |
investee's physical assets in this state on the last day of the | 7570 |
qualifying investee's fiscal or calendar year ending immediately | 7571 |
prior to the day on which the trust recognizes the qualifying | 7572 |
trust amount, and the denominator of which is the sum of the book | 7573 |
value of the qualifying investee's total physical assets | 7574 |
everywhere on the last day of the qualifying investee's fiscal or | 7575 |
calendar year ending immediately prior to the day on which the | 7576 |
trust recognizes the qualifying trust amount. If, for a taxable | 7577 |
year, the trust recognizes a qualifying trust amount with respect | 7578 |
to more than one qualifying investee, the amount described in | 7579 |
division (BB)(4)(b) of this section shall equal the sum of the | 7580 |
products so computed for each such qualifying investee. | 7581 |
(ii) With respect to a trust or portion of a trust that is | 7585 |
not a resident as ascertained in accordance with division | 7586 |
(I)(3)(d) of this section, the amount of its modified nonbusiness | 7587 |
income satisfying the descriptions in divisions (B)(2) to (5) of | 7588 |
section 5747.20 of the Revised Code, except as otherwise provided | 7589 |
in division (BB)(4)(c)(ii) of this section. With respect to a | 7590 |
trust or portion of a trust that is not a resident as ascertained | 7591 |
in accordance with division (I)(3)(d) of this section, the trust's | 7592 |
portion of modified nonbusiness income recognized from the sale, | 7593 |
exchange, or other disposition of a debt interest in or equity | 7594 |
interest in a section 5747.212 entity, as defined in section | 7595 |
5747.212 of the Revised Code, without regard to division (A) of | 7596 |
that section, shall not be allocated to this state in accordance | 7597 |
with section 5747.20 of the Revised Code but shall be apportioned | 7598 |
to this state in accordance with division (B) of section 5747.212 | 7599 |
of the Revised Code without regard to division (A) of that | 7600 |
section. | 7601 |
(5)(a) Except as set forth in division (BB)(5)(b) of this | 7608 |
section, "qualifying investee" means a person in which a trust has | 7609 |
an equity or ownership interest, or a person or unit of government | 7610 |
the debt obligations of either of which are owned by a trust. For | 7611 |
the purposes of division (BB)(2)(a) of this section and for the | 7612 |
purpose of computing the fraction described in division (BB)(4)(b) | 7613 |
of this section, all of the following apply: | 7614 |
(ii) If the qualifying investee, or if the qualifying | 7621 |
investee and any members of the qualifying controlled group of | 7622 |
which the qualifying investee is a member on the last day of the | 7623 |
qualifying investee's fiscal or calendar year ending immediately | 7624 |
prior to the date on which the trust recognizes the gain or loss, | 7625 |
separately or cumulatively own, directly or indirectly, on the | 7626 |
last day of the qualifying investee's fiscal or calendar year | 7627 |
ending immediately prior to the date on which the trust recognizes | 7628 |
the qualifying trust amount, more than fifty per cent of the | 7629 |
equity of a pass-through entity, then the qualifying investee and | 7630 |
the other members are deemed to own the proportionate share of the | 7631 |
pass-through entity's physical assets which the pass-through | 7632 |
entity directly or indirectly owns on the last day of the | 7633 |
pass-through entity's calendar or fiscal year ending within or | 7634 |
with the last day of the qualifying investee's fiscal or calendar | 7635 |
year ending immediately prior to the date on which the trust | 7636 |
recognizes the qualifying trust amount. | 7637 |
An upper level pass-through entity, whether or not it is also | 7643 |
a qualifying investee, is deemed to own, on the last day of the | 7644 |
upper level pass-through entity's calendar or fiscal year, the | 7645 |
proportionate share of the lower level pass-through entity's | 7646 |
physical assets that the lower level pass-through entity directly | 7647 |
or indirectly owns on the last day of the lower level pass-through | 7648 |
entity's calendar or fiscal year ending within or with the last | 7649 |
day of the upper level pass-through entity's fiscal or calendar | 7650 |
year. If the upper level pass-through entity directly and | 7651 |
indirectly owns less than fifty per cent of the equity of the | 7652 |
lower level pass-through entity on each day of the upper level | 7653 |
pass-through entity's calendar or fiscal year in which or with | 7654 |
which ends the calendar or fiscal year of the lower level | 7655 |
pass-through entity and if, based upon clear and convincing | 7656 |
evidence, complete information about the location and cost of the | 7657 |
physical assets of the lower pass-through entity is not available | 7658 |
to the upper level pass-through entity, then solely for purposes | 7659 |
of ascertaining if a gain or loss constitutes a qualifying trust | 7660 |
amount, the upper level pass-through entity shall be deemed as | 7661 |
owning no equity of the lower level pass-through entity for each | 7662 |
day during the upper level pass-through entity's calendar or | 7663 |
fiscal year in which or with which ends the lower level | 7664 |
pass-through entity's calendar or fiscal year. Nothing in division | 7665 |
(BB)(5)(a)(iii) of this section shall be construed to provide for | 7666 |
any deduction or exclusion in computing any trust's Ohio taxable | 7667 |
income. | 7668 |
(3) A "qualifying pre-income tax trust election" is an | 7711 |
election by a pre-income tax trust to subject to the tax imposed | 7712 |
by section 5751.02 of the Revised Code the pre-income tax trust | 7713 |
and all pass-through entities of which the trust owns or controls, | 7714 |
directly, indirectly, or constructively through related interests, | 7715 |
five per cent or more of the ownership or equity interests. The | 7716 |
trustee shall notify the tax commissioner in writing of the | 7717 |
election on or before April 15, 2006. The election, if timely | 7718 |
made, shall be effective on and after January 1, 2006, and shall | 7719 |
apply for all tax periods and tax years until revoked by the | 7720 |
trustee of the trust. | 7721 |
(5) "Veteran" means an individual who was not serving | 7749 |
extended active duty in the armed forces of the United States at | 7750 |
any time during the sixty-day period ending on the day the | 7751 |
individual was hired and who either (a) served on active military | 7752 |
duty in the armed forces for more than one hundred eighty days and | 7753 |
has not received a discharge or separation under dishonorable | 7754 |
conditions, or (b) is a former member of the armed forces who has | 7755 |
been discharged or released from active duty in the armed forces | 7756 |
for a service-connected disability. | 7757 |
(c) The taxpayer employs the qualified unemployed individual, | 7787 |
qualified unemployed veteran, or qualified unemployed disabled | 7788 |
veteran for a minimum of thirty-five hours per week for six | 7789 |
consecutive months or, if the taxpayer terminates the qualified | 7790 |
unemployed individual, qualified unemployed veteran, or qualified | 7791 |
unemployed disabled veteran within the first six months of | 7792 |
employment, the termination is for good cause. | 7793 |
The credit shall be claimed for the taxable year that | 7801 |
includes the one hundred eightieth day after the qualified | 7802 |
unemployed individual, qualified unemployed veteran, or qualified | 7803 |
unemployed disabled veteran is hired or the date on which the | 7804 |
qualified unemployed individual, qualified unemployed veteran, or | 7805 |
qualified unemployed disabled veteran is terminated for good | 7806 |
cause, whichever is earlier. The credit shall be claimed in the | 7807 |
order required under section 5747.98 of the Revised Code. The | 7808 |
amount of credit claimed may not exceed the tax otherwise due | 7809 |
after allowing for all preceding credits in that order. | 7810 |
A credit may be claimed under this section or section 5751.55 | 7811 |
of the Revised Code only once with respect to any particular | 7812 |
qualified unemployed individual, qualified unemployed veteran, or | 7813 |
qualified unemployed disabled veteran. A person that claims the | 7814 |
credit under section 5751.55 of the Revised Code may not claim the | 7815 |
credit under this section for the same qualified unemployed | 7816 |
individual, qualified unemployed veteran, or qualified unemployed | 7817 |
disabled veteran. | 7818 |
(C) Not later than two years after the effective date of the | 7823 |
enactment of this section, the tax commissioner shall submit to | 7824 |
the president of the senate and the speaker of the house of | 7825 |
representatives a comprehensive report on the tax credits | 7826 |
authorized under this section and section 5751.55 of the Revised | 7827 |
Code. The report shall provide an overview of the effectiveness of | 7828 |
the tax credits, evaluate the costs and benefits of the tax credit | 7829 |
program, and include information on the number of tax credits | 7830 |
authorized, the number of employers claiming the tax credits, the | 7831 |
fiscal impact of the tax credit program on the state budget, and | 7832 |
any other information the commissioner considers relevant to the | 7833 |
topics addressed in the report. The commissioner may request that | 7834 |
any other appropriate state agency assist in the preparation of | 7835 |
the report.
| 7836 |
(B) For any credit, except the refundable credits enumerated | 7933 |
in this section and the credit granted under division (I) of | 7934 |
section 5747.08 of the Revised Code, the amount of the credit for | 7935 |
a taxable year shall not exceed the tax due after allowing for any | 7936 |
other credit that precedes it in the order required under this | 7937 |
section. Any excess amount of a particular credit may be carried | 7938 |
forward if authorized under the section creating that credit. | 7939 |
Nothing in this chapter shall be construed to allow a taxpayer to | 7940 |
claim, directly or indirectly, a credit more than once for a | 7941 |
taxable year. | 7942 |
(A) "Person" means, but is not limited to, individuals, | 7944 |
combinations of individuals of any form, receivers, assignees, | 7945 |
trustees in bankruptcy, firms, companies, joint-stock companies, | 7946 |
business trusts, estates, partnerships, limited liability | 7947 |
partnerships, limited liability companies, associations, joint | 7948 |
ventures, clubs, societies, for-profit corporations, S | 7949 |
corporations, qualified subchapter S subsidiaries, qualified | 7950 |
subchapter S trusts, trusts, entities that are disregarded for | 7951 |
federal income tax purposes, and any other entities. | 7952 |
(c) Except for any differences resulting from the use of an | 7983 |
accrual basis method of accounting for purposes of determining | 7984 |
gross receipts under this chapter and the use of the cash basis | 7985 |
method of accounting for purposes of determining gross receipts | 7986 |
under section 5727.24 of the Revised Code, the gross receipts | 7987 |
directly attributed to the activity of a natural gas company shall | 7988 |
be determined in a manner consistent with division (D) of section | 7989 |
5727.03 of the Revised Code. | 7990 |
(c) In the case of a partnership, trust, or other | 8014 |
unincorporated business organization other than a limited | 8015 |
liability company, one person owns the organization if, under the | 8016 |
articles of organization or other instrument governing the affairs | 8017 |
of the organization, that person has a beneficial interest in the | 8018 |
organization's profits, surpluses, losses, or distributions of | 8019 |
fifty per cent or more of the combined beneficial interests of all | 8020 |
persons having such an interest in the organization. | 8021 |
(5) A domestic insurance company or foreign insurance | 8022 |
company, as defined in section 5725.01 of the Revised Code, that | 8023 |
paid the insurance company premiums tax imposed by section 5725.18 | 8024 |
or Chapter 5729. of the Revised Code, or an unauthorized insurance | 8025 |
company whose gross premiums are subject to tax under section | 8026 |
3905.36 of the Revised Code based on one or more measurement | 8027 |
periods that include the entire tax period under this chapter; | 8028 |
(7) Except as otherwise provided in this division, a | 8036 |
pre-income tax trust as defined in division (FF)(4) of section | 8037 |
5747.01 of the Revised Code and any pass-through entity of which | 8038 |
such pre-income tax trust owns or controls, directly, indirectly, | 8039 |
or constructively through related interests, more than five per | 8040 |
cent of the ownership or equity interests. If the pre-income tax | 8041 |
trust has made a qualifying pre-income tax trust election under | 8042 |
division (FF)(3) of section 5747.01 of the Revised Code, then the | 8043 |
trust and the pass-through entities of which it owns or controls, | 8044 |
directly, indirectly, or constructively through related interests, | 8045 |
more than five per cent of the ownership or equity interests, | 8046 |
shall not be excluded persons for purposes of the tax imposed | 8047 |
under section 5751.02 of the Revised Code. | 8048 |
(F) Except as otherwise provided in divisions (F)(2), (3), | 8051 |
and (4) of this section, "gross receipts" means the total amount | 8052 |
realized by a person, without deduction for the cost of goods sold | 8053 |
or other expenses incurred, that contributes to the production of | 8054 |
gross income of the person, including the fair market value of any | 8055 |
property and any services received, and any debt transferred or | 8056 |
forgiven as consideration. | 8057 |
(c) Receipts from the sale, exchange, or other disposition of | 8072 |
an asset described in section 1221 or 1231 of the Internal Revenue | 8073 |
Code, without regard to the length of time the person held the | 8074 |
asset. Notwithstanding section 1221 of the Internal Revenue Code, | 8075 |
receipts from hedging transactions also are excluded to the extent | 8076 |
the transactions are entered into primarily to protect a financial | 8077 |
position, such as managing the risk of exposure to (i) foreign | 8078 |
currency fluctuations that affect assets, liabilities, profits, | 8079 |
losses, equity, or investments in foreign operations; (ii) | 8080 |
interest rate fluctuations; or (iii) commodity price fluctuations. | 8081 |
As used in division (F)(2)(c) of this section, "hedging | 8082 |
transaction" has the same meaning as used in section 1221 of the | 8083 |
Internal Revenue Code and also includes transactions accorded | 8084 |
hedge accounting treatment under statement of financial accounting | 8085 |
standards number 133 of the financial accounting standards board. | 8086 |
For the purposes of division (F)(2)(c) of this section, the actual | 8087 |
transfer of title of real or tangible personal property to another | 8088 |
entity is not a hedging transaction. | 8089 |
(g) Compensation, whether current or deferred, and whether in | 8100 |
cash or in kind, received or to be received by an employee, former | 8101 |
employee, or the employee's legal successor for services rendered | 8102 |
to or for an employer, including reimbursements received by or for | 8103 |
an individual for medical or education expenses, health insurance | 8104 |
premiums, or employee expenses, or on account of a dependent care | 8105 |
spending account, legal services plan, any cafeteria plan | 8106 |
described in section 125 of the Internal Revenue Code, or any | 8107 |
similar employee reimbursement; | 8108 |
(j) Gifts or charitable contributions received; membership | 8115 |
dues received by trade, professional, homeowners', or condominium | 8116 |
associations; and payments received for educational courses, | 8117 |
meetings, meals, or similar payments to a trade, professional, or | 8118 |
other similar association; and fundraising receipts received by | 8119 |
any person when any excess receipts are donated or used | 8120 |
exclusively for charitable purposes; | 8121 |
(m) Tax refunds, other tax benefit recoveries, and | 8128 |
reimbursements for the tax imposed under this chapter made by | 8129 |
entities that are part of the same combined taxpayer or | 8130 |
consolidated elected taxpayer group, and reimbursements made by | 8131 |
entities that are not members of a combined taxpayer or | 8132 |
consolidated elected taxpayer group that are required to be made | 8133 |
for economic parity among multiple owners of an entity whose tax | 8134 |
obligation under this chapter is required to be reported and paid | 8135 |
entirely by one owner, pursuant to the requirements of sections | 8136 |
5751.011 and 5751.012 of the Revised Code; | 8137 |
(q) In the case of receipts from the sale of cigarettes or | 8145 |
tobacco products by a wholesale dealer, retail dealer, | 8146 |
distributor, manufacturer, or seller, all as defined in section | 8147 |
5743.01 of the Revised Code, an amount equal to the federal and | 8148 |
state excise taxes paid by any person on or for such cigarettes or | 8149 |
tobacco products under subtitle E of the Internal Revenue Code or | 8150 |
Chapter 5743. of the Revised Code; | 8151 |
(s) In the case of receipts from the sale of beer or | 8158 |
intoxicating liquor, as defined in section 4301.01 of the Revised | 8159 |
Code, by a person holding a permit issued under Chapter 4301. or | 8160 |
4303. of the Revised Code, an amount equal to federal and state | 8161 |
excise taxes paid by any person on or for such beer or | 8162 |
intoxicating liquor under subtitle E of the Internal Revenue Code | 8163 |
or Chapter 4301. or 4305. of the Revised Code; | 8164 |
(t) Receipts realized by a new motor vehicle dealer or used | 8165 |
motor vehicle dealer, as defined in section 4517.01 of the Revised | 8166 |
Code, from the sale or other transfer of a motor vehicle, as | 8167 |
defined in that section, to another motor vehicle dealer for the | 8168 |
purpose of resale by the transferee motor vehicle dealer, but only | 8169 |
if the sale or other transfer was based upon the transferee's need | 8170 |
to meet a specific customer's preference for a motor vehicle; | 8171 |
(u) Receipts from a financial institution described in | 8172 |
division (E)(3) of this section for services provided to the | 8173 |
financial institution in connection with the issuance, processing, | 8174 |
servicing, and management of loans or credit accounts, if such | 8175 |
financial institution and the recipient of such receipts have at | 8176 |
least fifty per cent of their ownership interests owned or | 8177 |
controlled, directly or constructively through related interests, | 8178 |
by common owners; | 8179 |
(w) Funds received or used by a mortgage broker that is not a | 8184 |
dealer in intangibles, other than fees or other consideration, | 8185 |
pursuant to a table-funding mortgage loan or warehouse-lending | 8186 |
mortgage loan. Terms used in division (F)(2)(w) of this section | 8187 |
have the same meanings as in section 1322.01 of the Revised Code, | 8188 |
except "mortgage broker" means a person assisting a buyer in | 8189 |
obtaining a mortgage loan for a fee or other consideration paid by | 8190 |
the buyer or a lender, or a person engaged in table-funding or | 8191 |
warehouse-lending mortgage loans that are first lien mortgage | 8192 |
loans. | 8193 |
(I) "Qualifying distribution center receipts" means receipts | 8206 |
of a supplier from qualified property that is delivered to a | 8207 |
qualified distribution center, multiplied by a quantity that | 8208 |
equals one minus the Ohio delivery percentage. If the qualified | 8209 |
distribution center is a refining facility, "supplier" includes | 8210 |
all dealers, brokers, processors, sellers, vendors, cosigners, and | 8211 |
distributors of qualified property. | 8212 |
(II) "Qualified property" means tangible personal property | 8213 |
delivered to a qualified distribution center that is shipped to | 8214 |
that qualified distribution center solely for further shipping by | 8215 |
the qualified distribution center to another location in this | 8216 |
state or elsewhere or, in the case of gold, silver, platinum, or | 8217 |
palladium delivered to a refining facility solely for refining to | 8218 |
a grade and fineness acceptable for delivery to a registered | 8219 |
commodities exchange. "Further shipping" includes storing and | 8220 |
repackaging property into smaller or larger bundles, so long as | 8221 |
the property is not subject to further manufacturing or | 8222 |
processing. "Refining" is limited to extracting impurities from | 8223 |
gold, silver, platinum, or palladium through smelting or some | 8224 |
other process at a refining facility. | 8225 |
(III) "Qualified distribution center" means a warehouse, a | 8226 |
facility similar to a warehouse, or a refining facility in this | 8227 |
state that, for the qualifying year, is operated by a person that | 8228 |
is not part of a combined taxpayer group and that has a qualifying | 8229 |
certificate. All warehouses or facilities similar to warehouses | 8230 |
that are operated by persons in the same taxpayer group and that | 8231 |
are located within one mile of each other shall be treated as one | 8232 |
qualified distribution center. All refining facilities that are | 8233 |
operated by persons in the same taxpayer group and that are | 8234 |
located in the same or adjacent counties may be treated as one | 8235 |
qualified distribution center. | 8236 |
The applicant must substantiate to the commissioner's | 8249 |
satisfaction that, for the qualifying period, all persons | 8250 |
operating the distribution center have more than fifty per cent of | 8251 |
the cost of the qualified property shipped to a location such that | 8252 |
it would be sitused outside this state under the provisions of | 8253 |
division (E) of section 5751.033 of the Revised Code. The | 8254 |
applicant must also substantiate that the distribution center | 8255 |
cumulatively had costs from its suppliers equal to or exceeding | 8256 |
five hundred million dollars during the qualifying period. (For | 8257 |
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier" | 8258 |
excludes any person that is part of the consolidated elected | 8259 |
taxpayer group, if applicable, of the operator of the qualified | 8260 |
distribution center.) The commissioner may require the applicant | 8261 |
to have an independent certified public accountant certify that | 8262 |
the calculation of the minimum thresholds required for a qualified | 8263 |
distribution center by the operator of a distribution center has | 8264 |
been made in accordance with generally accepted accounting | 8265 |
principles. The commissioner shall issue or deny the issuance of a | 8266 |
certificate within sixty days after the receipt of the | 8267 |
application. A denial is subject to appeal under section 5717.02 | 8268 |
of the Revised Code. If the operator files a timely appeal under | 8269 |
section 5717.02 of the Revised Code, the operator shall be granted | 8270 |
a qualifying certificate, provided that the operator is liable for | 8271 |
any tax, interest, or penalty upon amounts claimed as qualifying | 8272 |
distribution center receipts, other than those receipts exempt | 8273 |
under division (C)(1) of section 5751.011 of the Revised Code, | 8274 |
that would have otherwise not been owed by its suppliers if the | 8275 |
qualifying certificate was valid. | 8276 |
(ii) If the distribution center is new and was not open for | 8293 |
the entire qualifying period, the operator of the distribution | 8294 |
center may request that the commissioner grant a qualifying | 8295 |
certificate. If the certificate is granted and it is later | 8296 |
determined that more than fifty per cent of the qualified property | 8297 |
during that year was not shipped to a location such that it would | 8298 |
be sitused outside of this state under the provisions of division | 8299 |
(E) of section 5751.033 of the Revised Code or if it is later | 8300 |
determined that the person that operates the distribution center | 8301 |
had average monthly costs from its suppliers of less than forty | 8302 |
million dollars during that year, then the operator of the | 8303 |
distribution center shall be liable for any tax, interest, or | 8304 |
penalty upon amounts claimed as qualifying distribution center | 8305 |
receipts, other than those receipts exempt under division (C)(1) | 8306 |
of section 5751.011 of the Revised Code, that would have not | 8307 |
otherwise been owed by its suppliers during the qualifying year if | 8308 |
the qualifying certificate was valid. (For purposes of division | 8309 |
(F)(2)(z)(ii) of this section, "supplier" excludes any person that | 8310 |
is part of the consolidated elected taxpayer group, if applicable, | 8311 |
of the operator of the qualified distribution center.) | 8312 |
(iii) When filing an application for a qualifying certificate | 8313 |
under division (F)(2)(z)(i)(VI) of this section, the operator of a | 8314 |
qualified distribution center also shall provide documentation, as | 8315 |
the commissioner requires, for the commissioner to ascertain the | 8316 |
Ohio delivery percentage. The commissioner, upon issuing the | 8317 |
qualifying certificate, also shall certify the Ohio delivery | 8318 |
percentage. The operator of the qualified distribution center may | 8319 |
appeal the commissioner's certification of the Ohio delivery | 8320 |
percentage in the same manner as an appeal is taken from the | 8321 |
denial of a qualifying certificate under division (F)(2)(z)(i)(VI) | 8322 |
of this section. | 8323 |
Within thirty days after all appeals have been exhausted, the | 8324 |
operator of the qualified distribution center shall notify the | 8325 |
affected suppliers of qualified property that such suppliers are | 8326 |
required to file, within sixty days after receiving notice from | 8327 |
the operator of the qualified distribution center, amended reports | 8328 |
for the impacted calendar quarter or quarters or calendar year, | 8329 |
whichever the case may be. Any additional tax liability or tax | 8330 |
overpayment shall be subject to interest but shall not be subject | 8331 |
to the imposition of any penalty so long as the amended returns | 8332 |
are timely filed. The supplier of tangible personal property | 8333 |
delivered to the qualified distribution center shall include in | 8334 |
its report of taxable gross receipts the receipts from the total | 8335 |
sales of property delivered to the qualified distribution center | 8336 |
for the calendar quarter or calendar year, whichever the case may | 8337 |
be, multiplied by the Ohio delivery percentage for the qualifying | 8338 |
year. Nothing in division (F)(2)(z)(iii) of this section shall be | 8339 |
construed as imposing liability on the operator of a qualified | 8340 |
distribution center for the tax imposed by this chapter arising | 8341 |
from any change to the Ohio delivery percentage. | 8342 |
(iv) In the case where the distribution center is new and not | 8343 |
open for the entire qualifying period, the operator shall make a | 8344 |
good faith estimate of an Ohio delivery percentage for use by | 8345 |
suppliers in their reports of taxable gross receipts for the | 8346 |
remainder of the qualifying period. The operator of the facility | 8347 |
shall disclose to the suppliers that such Ohio delivery percentage | 8348 |
is an estimate and is subject to recalculation. By the due date of | 8349 |
the next application for a qualifying certificate, the operator | 8350 |
shall determine the actual Ohio delivery percentage for the | 8351 |
estimated qualifying period and proceed as provided in division | 8352 |
(F)(2)(z)(iii) of this section with respect to the calculation and | 8353 |
recalculation of the Ohio delivery percentage. The supplier is | 8354 |
required to file, within sixty days after receiving notice from | 8355 |
the operator of the qualified distribution center, amended reports | 8356 |
for the impacted calendar quarter or quarters or calendar year, | 8357 |
whichever the case may be. Any additional tax liability or tax | 8358 |
overpayment shall be subject to interest but shall not be subject | 8359 |
to the imposition of any penalty so long as the amended returns | 8360 |
are timely filed. | 8361 |
(v) Qualifying certificates and Ohio delivery percentages | 8362 |
issued by the commissioner shall be open to public inspection and | 8363 |
shall be timely published by the commissioner. A supplier relying | 8364 |
in good faith on a certificate issued under this division shall | 8365 |
not be subject to tax on the qualifying distribution center | 8366 |
receipts under division (F)(2)(z) of this section. A person | 8367 |
receiving a qualifying certificate is responsible for paying the | 8368 |
tax, interest, and penalty upon amounts claimed as qualifying | 8369 |
distribution center receipts that would not otherwise have been | 8370 |
owed by the supplier if the qualifying certificate were available | 8371 |
when it is later determined that the qualifying certificate should | 8372 |
not have been issued because the statutory requirements were in | 8373 |
fact not met. | 8374 |
(vi) The annual fee for a qualifying certificate shall be one | 8375 |
hundred thousand dollars for each qualified distribution center. | 8376 |
If a qualifying certificate is not issued, the annual fee is | 8377 |
subject to refund after the exhaustion of all appeals provided for | 8378 |
in division (F)(2)(z)(i)(VI) of this section. The fee imposed | 8379 |
under this division may be assessed in the same manner as the tax | 8380 |
imposed under this chapter. The first one hundred thousand dollars | 8381 |
of the annual application fees collected each calendar year shall | 8382 |
be credited to the revenue enhancement fund. The remainder of the | 8383 |
annual application fees collected shall be distributed in the same | 8384 |
manner required under section 5751.20 of the Revised Code. | 8385 |
(dd) Bad debts from receipts on the basis of which the tax | 8397 |
imposed by this chapter was paid in a prior quarterly tax payment | 8398 |
period. For the purpose of this division, "bad debts" means any | 8399 |
debts that have become worthless or uncollectible between the | 8400 |
preceding and current quarterly tax payment periods, have been | 8401 |
uncollected for at least six months, and that may be claimed as a | 8402 |
deduction under section 166 of the Internal Revenue Code and the | 8403 |
regulations adopted under that section, or that could be claimed | 8404 |
as such if the taxpayer kept its accounts on the accrual basis. | 8405 |
"Bad debts" does not include repossessed property, uncollectible | 8406 |
amounts on property that remains in the possession of the taxpayer | 8407 |
until the full purchase price is paid, or expenses in attempting | 8408 |
to collect any account receivable or for any portion of the debt | 8409 |
recovered; | 8410 |
(I) "Qualified uranium receipts" means receipts from the | 8421 |
sale, exchange, lease, loan, production, processing, or other | 8422 |
disposition of uranium within a uranium enrichment zone certified | 8423 |
by the tax commissioner under division (F)(2)(gg)(ii) of this | 8424 |
section. "Qualified uranium receipts" does not include any | 8425 |
receipts with a situs in this state outside a uranium enrichment | 8426 |
zone certified by the tax commissioner under division | 8427 |
(F)(2)(gg)(ii) of this section. | 8428 |
(ii) Any person that owns, leases, or operates real or | 8434 |
tangible personal property constituting or located within a | 8435 |
uranium enrichment zone may apply to the tax commissioner to have | 8436 |
the uranium enrichment zone certified for the purpose of excluding | 8437 |
qualified uranium receipts under division (F)(2)(gg) of this | 8438 |
section. The application shall include such information that the | 8439 |
tax commissioner prescribes. Within sixty days after receiving the | 8440 |
application, the tax commissioner shall certify the zone for that | 8441 |
purpose if the commissioner determines that the property qualifies | 8442 |
as a uranium enrichment zone as defined in division (F)(2)(gg) of | 8443 |
this section, or, if the tax commissioner determines that the | 8444 |
property does not qualify, the commissioner shall deny the | 8445 |
application or request additional information from the applicant. | 8446 |
If the tax commissioner denies an application, the commissioner | 8447 |
shall state the reasons for the denial. The applicant may appeal | 8448 |
the denial of an application to the board of tax appeals pursuant | 8449 |
to section 5717.02 of the Revised Code. If the applicant files a | 8450 |
timely appeal, the tax commissioner shall conditionally certify | 8451 |
the applicant's property. The conditional certification shall | 8452 |
expire when all of the applicant's appeals are exhausted. Until | 8453 |
final resolution of the appeal, the applicant shall retain the | 8454 |
applicant's records in accordance with section 5751.12 of the | 8455 |
Revised Code, notwithstanding any time limit on the preservation | 8456 |
of records under that section. | 8457 |
(hh) Amounts realized by licensed motor fuel dealers or | 8458 |
licensed permissive motor fuel dealers from the exchange of | 8459 |
petroleum products, including motor fuel, between such dealers, | 8460 |
provided that delivery of the petroleum products occurs at a | 8461 |
refinery, terminal, pipeline, or marine vessel and that the | 8462 |
exchanging dealers agree neither dealer shall require monetary | 8463 |
compensation from the other for the value of the exchanged | 8464 |
petroleum products other than such compensation for differences in | 8465 |
product location or grade. Division (F)(2)(hh) of this section | 8466 |
does not apply to amounts realized as a result of differences in | 8467 |
location or grade of exchanged petroleum products or from | 8468 |
handling, lubricity, dye, or other additive injections fees, | 8469 |
pipeline security fees, or similar fees. As used in this division, | 8470 |
"motor fuel," "licensed motor fuel dealer," "licensed permissive | 8471 |
motor fuel dealer," and "terminal" have the same meanings as in | 8472 |
section 5735.01 of the Revised Code. | 8473 |
(jj) Receipts realized by a qualifying landlord from the | 8480 |
lease or rental of qualifying residential rental property during | 8481 |
the first tax period in which the qualifying landlord received | 8482 |
rental income from the property and, if the qualifying landlord is | 8483 |
a calendar quarter taxpayer, during the nineteen succeeding tax | 8484 |
periods or, if the qualifying landlord is a calendar year | 8485 |
taxpayer, during the four succeeding tax periods. As used in this | 8486 |
division, "qualifying landlord" and "qualifying residential rental | 8487 |
property" have the same meanings as in division (A)(32) of section | 8488 |
5747.01 of the Revised Code. | 8489 |
(kk) Receipts realized from providing broadband service | 8490 |
multiplied by a fraction, the numerator of which is the original | 8491 |
cost of tangible personal property necessary for the provision of | 8492 |
broadband service in rural areas of this state installed on or | 8493 |
after the effective date of this amendment, and the denominator of | 8494 |
which is the original cost of tangible personal property necessary | 8495 |
for the provision of broadband service in this state on or after | 8496 |
that date. An exclusion is not allowed under this division if the | 8497 |
taxpayer claims a deduction under division (A)(10) or (S)(16) of | 8498 |
section 5747.01 of the Revised Code for a taxable year that | 8499 |
includes all or any part of the tax period. For the purposes of | 8500 |
this division, "broadband service" and "rural area" have the same | 8501 |
meanings as in 7 U.S.C. 950bb. | 8502 |
(3) In the case of a taxpayer when acting as a real estate | 8506 |
broker, "gross receipts" includes only the portion of any fee for | 8507 |
the service of a real estate broker, or service of a real estate | 8508 |
salesperson associated with that broker, that is retained by the | 8509 |
broker and not paid to an associated real estate salesperson or | 8510 |
another real estate broker. For the purposes of this division, | 8511 |
"real estate broker" and "real estate salesperson" have the same | 8512 |
meanings as in section 4735.01 of the Revised Code. | 8513 |
(K) "Internal Revenue Code" means the Internal Revenue Code | 8559 |
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in | 8560 |
this chapter that is not otherwise defined has the same meaning as | 8561 |
when used in a comparable context in the laws of the United States | 8562 |
relating to federal income taxes unless a different meaning is | 8563 |
clearly required. Any reference in this chapter to the Internal | 8564 |
Revenue Code includes other laws of the United States relating to | 8565 |
federal income taxes. | 8566 |
(c) The taxpayer employs the qualified unemployed individual, | 8614 |
qualified unemployed veteran, or qualified unemployed disabled | 8615 |
veteran for a minimum of thirty-five hours per week for six | 8616 |
consecutive months or, if the taxpayer terminates the qualified | 8617 |
unemployed individual, qualified unemployed veteran, or qualified | 8618 |
unemployed disabled veteran within the first six months of | 8619 |
employment, the termination is for good cause. | 8620 |
The credit shall be claimed with the annual return required | 8628 |
under section 5751.051 of the Revised Code for the calendar year | 8629 |
that includes the one hundred eightieth day after the qualified | 8630 |
unemployed individual, qualified unemployed veteran, or qualified | 8631 |
unemployed disabled veteran is hired or the date on which the | 8632 |
qualified unemployed individual, qualified unemployed veteran, or | 8633 |
qualified unemployed disabled veteran is terminated for good | 8634 |
cause, whichever is earlier. The credit shall be claimed in the | 8635 |
order required under section 5751.98 of the Revised Code. The | 8636 |
amount of credit claimed may not exceed the tax otherwise due | 8637 |
after allowing for all preceding credits in that order. | 8638 |
A credit may be claimed under this section or section 5747.61 | 8639 |
of the Revised Code only once with respect to any particular | 8640 |
qualified unemployed individual, qualified unemployed veteran, or | 8641 |
qualified unemployed disabled veteran. A person that claims the | 8642 |
credit under section 5747.61 of the Revised Code may not claim the | 8643 |
credit under this section for the same qualified unemployed | 8644 |
individual, qualified unemployed veteran, or qualified unemployed | 8645 |
disabled veteran. | 8646 |
(1) The chief elected official from the municipal corporation | 8702 |
with the largest population in the local area, except that if the | 8703 |
municipal corporation is a local area as defined in division | 8704 |
(A)(1) of section 6301.01 of the Revised Code, the chief elected | 8705 |
official of that municipal corporation may determine whether to be | 8706 |
a member of the board. Notwithstanding division (B) of section | 8707 |
6301.01 of the Revised Code, as used in division (A)(1) of this | 8708 |
section, "municipal corporation" means any municipal corporation. | 8709 |
(a) At least five members of the board shall be | 8713 |
representatives of private sector businesses in the general labor | 8714 |
market area that includes that local area, and shall be appointed | 8715 |
from among individuals nominated by local business organizations | 8716 |
and business trade associations. Among these members, at least one | 8717 |
shall represent small businesses, at least one shall represent | 8718 |
medium-sized businesses, and at least one shall represent large | 8719 |
businesses. When determining what constitutes small, medium-sized, | 8720 |
and large businesses for purposes of this division, the chief | 8721 |
elected officials of the local area shall define those sizes as | 8722 |
those sizes are generally understood within the labor market area | 8723 |
that includes that local area. A majority of the members of the | 8724 |
board shall be representatives of private sector businesses. | 8725 |
(C) The chief elected officials of a local area other than a | 8757 |
local area as defined in division (A)(1) of section 6301.01 of the | 8758 |
Revised Code, shall coordinate the workforce development | 8759 |
activities of the county family services planning committees and | 8760 |
the workforce policy boards in the local area in any manner that | 8761 |
is efficient and effective to meet the needs of the local area. | 8762 |
The chief elected officials of the local area may, but are not | 8763 |
required to, consolidate all boards and committees as they | 8764 |
determine appropriate into a single board for purposes of | 8765 |
workforce development activities. A majority of the members of | 8766 |
that consolidated board shall represent private sector businesses. | 8767 |
The membership of that consolidated board shall include a | 8768 |
representative from each group granted representation as described | 8769 |
in division (A) of this section and also a member who represents | 8770 |
consumers of family services and a member who represents the | 8771 |
county department of job and family services. The membership of | 8772 |
that consolidated board may include a representative of one or | 8773 |
more groups and entities that may be represented on a county | 8774 |
family services planning committee, as specified in section 329.06 | 8775 |
of the Revised Code. | 8776 |
(2) Educational services, including skill assessment, reading | 8858 |
and math remediation, educational enrichment, services involving | 8859 |
preparation for and opportunities for attainment of the recognized | 8860 |
equivalent of a high school diploma, services that connect to | 8861 |
career pathways such as opportunities for attainment of | 8862 |
industry-recognized certificates or credentials or for preparation | 8863 |
for entry into an institution of higher education without the need | 8864 |
for further remediation, and postsecondary education; | 8865 |
Section 2. That existing sections 122.075, 122.71, 122.72, | 8886 |
122.74, 122.75, 122.87, 122.88, 122.89, 122.90, 125.831, 169.05, | 8887 |
4141.01, 4141.09, 4141.241, 4141.29, 4141.291, 4141.293, 4301.20, | 8888 |
5733.01, 5733.98, 5739.01, 5739.02, 5739.025, 5747.01, 5747.98, | 8889 |
5751.01, 5751.98, and 6301.06 and sections
901.13, 5733.46, | 8890 |
5733.48,
5747.28, 5747.29, 5747.70,
5747.75,
5747.77, and | 8891 |
5751.53 of the Revised Code are hereby repealed. | 8892 |
Section 3. Except as otherwise provided by this act, all | 8893 |
appropriation items in this act are hereby appropriated as | 8894 |
designated out of any moneys in the state treasury to the credit | 8895 |
of the General Revenue Fund and the State Special Revenue Fund | 8896 |
Group. For all appropriations made in this act, those in the first | 8897 |
column are for fiscal year 2014 and those in the second column are | 8898 |
for fiscal year 2015. The appropriations made in Sections 4 to 12 | 8899 |
of this act are in addition to any other appropriations made for | 8900 |
the FY 2014-FY 2015 biennium. | 8901 |
On the effective date of this section, or as soon as possible | 8926 |
thereafter, the Director of Budget and Management shall transfer | 8927 |
$40,000,000 cash from the General Revenue Fund to the Microloan | 8928 |
Revolving Fund (Fund 5KS0). The foregoing appropriation item | 8929 |
195666, Small Business Revolving Microloans, shall be used for the | 8930 |
purposes of section 122.084 of the Revised Code. | 8931 |
Section 5. Notwithstanding section 122.658 of the Revised | 8932 |
Code, on the effective date of this section, or as soon as | 8933 |
possible thereafter, the Director of Budget and Management shall | 8934 |
transfer $30,000,000 cash from the General Revenue Fund to the | 8935 |
Clean Ohio Revitalization Fund (Fund 7003). The amount transferred | 8936 |
is hereby appropriated for fiscal year 2014 in appropriation item | 8937 |
C19500, Clean Ohio Revitalization, for the purposes of the Clean | 8938 |
Ohio Revitalization Program. | 8939 |
On the effective date of this section, or as soon as possible | 8946 |
thereafter, the Director of Budget and Management shall transfer | 8947 |
$40,000,000 cash from the General Revenue Fund to the | 8948 |
Infrastructure Development Loan Fund (Fund 5KV0), which is hereby | 8949 |
created in the state treasury. The foregoing appropriation item | 8950 |
150601, Infrastructure Development Loans, shall be used in | 8951 |
accordance with the remainder of this section. | 8952 |
Money to the credit of the Infrastructure Development Loan | 8957 |
Fund (Fund 5KV0) shall be provided as loans or grants to local | 8958 |
subdivisions solely for the costs of capital improvement projects | 8959 |
undertaken within the territory of the subdivision. Loans or | 8960 |
grants shall be made by the Public Works Commission on a | 8961 |
competitive basis and upon application by local subdivisions in a | 8962 |
manner to be prescribed by the Commission. A local subdivision | 8963 |
receiving a loan or grant under this section may use the proceeds | 8964 |
of its loan or grant to satisfy any requirement to provide a | 8965 |
matching contribution to draw federal funds either directly or | 8966 |
through the state. Loans shall be made according to terms | 8967 |
established by the Commission. All loan repayments, including | 8968 |
principal and interest, shall be credited to the Infrastructure | 8969 |
Development Loan Fund (Fund 5KV0) and made available for further | 8970 |
lending under this section. Any county, township, or municipal | 8971 |
corporation receiving a loan under this division shall agree, as a | 8972 |
condition for receiving a loan, to adopt one or more resolutions | 8973 |
or ordinances under section 5709.40, 5709.73, or 5709.78 of the | 8974 |
Revised Code declaring improvements that benefit from the projects | 8975 |
financed by the loan to be exempted from taxation under that | 8976 |
section, and requiring the owners of such improvements to make | 8977 |
payments in lieu of taxes as provided in section 5709.42, 5709.74, | 8978 |
or 5709.79 of the Revised Code. The payments in lieu of taxes | 8979 |
shall be used to repay the loan to the extent of the loan amount, | 8980 |
notwithstanding those sections. | 8981 |
The foregoing appropriation item 200545, Career-Technical | 8989 |
Education Enhancements, shall be used to support the High School | 8990 |
Job Training Grants Program. The High School Job Training Grants | 8991 |
Program shall provide grants to school districts and community | 8992 |
colleges partnering with sponsoring local employers to create or | 8993 |
strengthen 11th and 12th grade career-technical job training | 8994 |
programs. Sponsoring employers shall be involved in the design of | 8995 |
the career-technical job training curricula and classroom | 8996 |
education. Sponsoring employers and school district administrators | 8997 |
shall ensure that the career-technical job training curricula | 8998 |
includes the development of skills that are transferable to the | 8999 |
workplace and on the job experience with the sponsoring employer. | 9000 |
The Superintendent of Public Instruction shall administer the High | 9001 |
School Job Training Grants Program and shall establish a method of | 9002 |
awarding grants to school districts and community colleges. | 9003 |
Sponsoring employers must match at least 25 per cent of awarded | 9004 |
grant amounts. | 9005 |
Of the foregoing appropriation item 600536, Youth Employment | 9012 |
Programs, $12,000,000 in fiscal year 2014 shall be used to provide | 9013 |
services to urban youth in accordance with section 6303.01 of the | 9014 |
Revised Code and $5,000,000 in fiscal year 2014 shall be used to | 9015 |
provide summer employment opportunities for youth in accordance | 9016 |
with section 6303.02 of the Revised Code. | 9017 |
The foregoing appropriation item, 235551, Workforce | 9025 |
Realignment Program, shall be used to support the Workforce | 9026 |
Realignment Program in fiscal year 2014. The Workforce Realignment | 9027 |
Program shall provide scholarships and grants that assist | 9028 |
unemployed individuals in obtaining the necessary | 9029 |
industry-recognized credentials to find employment in high-growth | 9030 |
fields. The Chancellor of the Board of Regents shall administer | 9031 |
the Workforce Realignment Program and shall establish a method of | 9032 |
awarding scholarships to individuals who have remained unemployed | 9033 |
for six consecutive months or longer. The Chancellor's method of | 9034 |
awarding scholarships shall target community colleges, | 9035 |
career-technical schools, and other institutions that offer | 9036 |
degrees or certificates in two years or fewer. | 9037 |
The foregoing appropriation item, 235598, Ohio Skills Bank | 9039 |
Grant, shall be used to support the activities of the Ohio Skills | 9040 |
Bank Grant Program in fiscal year 2014. The Ohio Skills Bank Grant | 9041 |
Program shall provide competitive grants to partnerships and | 9042 |
coalitions between institutions of higher education and industry | 9043 |
actors. The Chancellor of the Board of Regents shall establish a | 9044 |
method of awarding grants to partnerships and coalitions that | 9045 |
identify and mitigate critical skill shortages within targeted | 9046 |
industries and facilitate worker training opportunities. Recipient | 9047 |
partnerships and coalitions shall obtain matching private sector | 9048 |
funding equal to 25% of grant amounts.
| 9049 |
Section 13. Sections 3 to 12 of this act, and the items of | 9077 |
law of which they are composed, are not subject to the referendum | 9078 |
because they are or relate to an appropriation for current | 9079 |
expenses within the meaning of Ohio Constitution, Article II, | 9080 |
Section 1d and section 1.471 of the Revised Code and, therefore, | 9081 |
go into immediate effect when this act becomes law. | 9082 |
Notwithstanding division (A) of section 169.05 of the Revised | 9099 |
Code, prior to June 30, 2014, and upon the request of the Director | 9100 |
of Budget and Management, the Director of Commerce shall transfer | 9101 |
to the General Revenue Fund $27,250,000 of unclaimed funds that | 9102 |
have been reported by holders of unclaimed funds under section | 9103 |
169.05 of the Revised Code, irrespective of the allocation of the | 9104 |
unclaimed funds under that section. | 9105 |
Notwithstanding division (A) of section 169.05 of the Revised | 9106 |
Code, prior to June 30, 2015, and upon the request of the Director | 9107 |
of Budget and Management, the Director of Commerce shall transfer | 9108 |
to the General Revenue Fund $27,250,000 of unclaimed funds that | 9109 |
have been reported by holders of unclaimed funds under section | 9110 |
169.05 of the Revised Code, irrespective of the allocation of the | 9111 |
unclaimed funds under that section. | 9112 |
(D) "Low-income youth" means an individual who is aged | 9130 |
sixteen through twenty-four, is in one or more of the categories | 9131 |
specified in section 101(13)(C) of the "Workforce Investment Act | 9132 |
of 1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, and meets the | 9133 |
definition of a low-income individual provided in section 101(25) | 9134 |
of the "Workforce Investment Act of 1998," 112 Stat. 936, 29 | 9135 |
U.S.C. 2801, as amended, except that local workforce investment | 9136 |
areas and eligible entities subject to approval in the applicable | 9137 |
local plans and applications for funds may increase the income | 9138 |
level specified in subparagraph (B)(i) of that section to an | 9139 |
amount not in excess of two hundred per cent of the poverty line | 9140 |
for purposes of determining eligibility for participation in | 9141 |
activities under Sections 15.05 and 15.06 of this act. | 9142 |
(3) Meets the definition of a "low-income individual" under | 9148 |
section 101(25) of the "Workforce Investment Act of 1998," 112 | 9149 |
Stat. 936, 29 U.S.C. 2801, as amended, except that for local | 9150 |
entities and eligible entities, subject to approval in the | 9151 |
applicable local plans and applications for funds, may increase | 9152 |
the income level specified in subparagraph (B)(i) of that section | 9153 |
to an amount not in excess of two hundred per cent of the poverty | 9154 |
line for purposes of determining eligibility for participation in | 9155 |
activities under Sections 15.04 and 15.06 of this act. | 9156 |
Section 15.02. There is hereby created in the state treasury | 9157 |
the Pathways Back to Work Fund. All moneys that are deposited or | 9158 |
paid into this fund are available to the Director of Job and | 9159 |
Family Services only for the administration of Sections 15.01 to | 9160 |
15.07 of this act. All moneys in this fund that are received from | 9161 |
the United States or any agency thereof or that are appropriated | 9162 |
by this state shall be expended solely for the purposes of the | 9163 |
proper and efficient administration of those sections. The fund | 9164 |
shall consist of all moneys appropriated by this state, and all | 9165 |
moneys received from the United States or any agency thereof for | 9166 |
such purpose. All moneys in this fund shall be deposited, | 9167 |
administered, and disbursed in the same manner and under the same | 9168 |
conditions and requirements as are other special funds in the | 9169 |
state treasury. The Treasurer of State is liable on the Treasurer | 9170 |
of State's official bond for the faithful performance of the | 9171 |
Treasurer of State's duties in connection with this fund. Any | 9172 |
balances in this fund shall not lapse at any time, but shall be | 9173 |
continuously available to the Director for expenditure. | 9174 |
(5) A description of the coordination of activities to be | 9225 |
carried out with the grant provided under this section with | 9226 |
activities under Title I of the "Workforce Investment Act of | 9227 |
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, the temporary | 9228 |
assistance for needy families program under Part A of Title IV of | 9229 |
the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C. 601, | 9230 |
as amended, and other appropriate federal and state programs that | 9231 |
may assist unemployed, low-income adults in obtaining and | 9232 |
retaining employment; | 9233 |
(G) The funds granted under this section shall be used to | 9258 |
provide subsidized employment for unemployed, low-income adults. | 9259 |
The board may use a variety of strategies in recruiting employers | 9260 |
and identifying appropriate employment opportunities, with a | 9261 |
priority to be provided to employment opportunities likely to lead | 9262 |
to unsubsidized employment in emerging or in-demand occupations in | 9263 |
the local area. Funds under this section may be used to provide | 9264 |
support services, such as transportation and child care, that are | 9265 |
necessary to enable the participation of individuals in subsidized | 9266 |
employment opportunities. | 9267 |
(E) The Director shall approve the plan submitted under | 9325 |
division (D) of this section within thirty days after submission, | 9326 |
unless the Director determines that the plan is inconsistent with | 9327 |
the requirements of this section. If the Director has not made a | 9328 |
determination within thirty days, the plan shall be considered | 9329 |
approved. If the plan is disapproved, the Director may provide a | 9330 |
reasonable period of time in which a disapproved plan may be | 9331 |
amended and resubmitted for approval. If the plan is approved, the | 9332 |
Director shall grant funds to the board within thirty days after | 9333 |
such approval. | 9334 |
(2) To provide year-round employment opportunities, which may | 9342 |
be combined with other activities authorized under section 129 of | 9343 |
the "Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C. | 9344 |
2801, as amended, to low-income youth, ages sixteen through | 9345 |
twenty-four, with a priority to out-of-school youth who are high | 9346 |
school dropouts or recipients of a high school diploma or | 9347 |
certificate of high school equivalence but who are basic skills | 9348 |
deficient and unemployed or underemployed. | 9349 |
(C) An eligible entity shall include a local chief elected | 9397 |
official, in collaboration with the local workforce investment | 9398 |
board for the local workforce investment area involved, which may | 9399 |
include a partnership with such officials and boards in the region | 9400 |
and in the state, or an entity eligible to apply for an Indian and | 9401 |
Native American grant under section 166 of the "Workforce | 9402 |
Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801, as | 9403 |
amended, and may include, in partnership with such officials, | 9404 |
boards, and entities, any of the following: | 9405 |
Section 15.07. (A) Activities provided with funds under | 9460 |
Sections 15.01 to 15.07 of this act shall be subject to the | 9461 |
requirements and restrictions, including the labor standards, | 9462 |
described in section 181 of the "Workforce Investment Act of | 9463 |
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, and the | 9464 |
nondiscrimination provisions of section 188 of that Act, in | 9465 |
addition to other applicable laws. | 9466 |
Section 16. The amendment or repeal by this act of sections | 9514 |
122.075, 125.831, 4301.20, 5733.01, 5733.46, 5733.48, 5733.98, | 9515 |
5739.01, 5739.02, 5739.025, 5747.28, 5747.29, 5747.70, 5747.75, | 9516 |
5747.77, and 5751.53 and the language stricken in division (A)(10) | 9517 |
of section 5747.01, divisions (A)(10), (20), (26), and (27) of | 9518 |
section 5747.98, and division (A)(4) of section 5751.98 of the | 9519 |
Revised Code defines a tax levy within the meaning of Ohio | 9520 |
Constitution, Article II, Section 1d, and therefore takes effect | 9521 |
immediately when this act becomes law. | 9522 |
Section 18. The amendment or repeal by this act of sections | 9526 |
122.075, 125.831, 4301.20, 5733.01, 5733.46, 5733.48, 5747.01, | 9527 |
5747.28, 5747.29, 5747.70, 5747.75, 5747.77, 5747.98, 5751.01, | 9528 |
5751.53, and 5751.98 of the Revised Code applies to taxable years | 9529 |
or tax periods beginning on or after the effective date of this | 9530 |
act. | 9531 |
Section 20. The General Assembly, applying the principle | 9536 |
stated in division (B) of section 1.52 of the Revised Code that | 9537 |
amendments are to be harmonized if reasonably capable of | 9538 |
simultaneous operation, finds that the following sections, | 9539 |
presented in this act as composites of the sections as amended by | 9540 |
the acts indicated, are the resulting versions of the sections in | 9541 |
effect prior to the effective date of the sections as presented in | 9542 |
this act: | 9543 |