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Sub. S. B. No. 47 As Passed by the HouseAs Passed by the House
125th General Assembly | Regular Session | 2003-2004 |
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Senators Stivers, Coughlin, Schuler, Mumper, Dann, Carey, Jacobson, Goodman, Carnes, Schuring, Jordan, Herington, Wachtmann, Fedor, Fingerhut, Harris, Nein, Armbruster, Amstutz, Spada, Miller, White, Randy Gardner, Austria, Robert Gardner
Representatives Kilbane, Blasdel, Carano, Collier, Core, Gilb, Hartnett, Jerse, Latta, McGregor, Niehaus, Raussen, Schaffer, Skindell, Sykes, Taylor, Ujvagi, Yates, Allen, Aslanides, Barrett, Beatty, Book, Brown, Buehrer, Callender, Calvert, Carmichael, Cates, Chandler, Cirelli, Clancy, Daniels, DeBose, DePiero, Distel, Domenick, Driehaus, C. Evans, D. Evans, Faber, Flowers, Gibbs, Hagan, Harwood, Hoops, Hughes, Husted, Jolivette, Kearns, Key, Koziura, Martin, Mason, Miller, Oelslager, Olman, Otterman, S. Patton, T. Patton, Perry, Peterson, Price, Redfern, Reidelbach, Schlichter, Schneider, Seaver, Seitz, Setzer, Sferra, G. Smith, S. Smith, D. Stewart, J. Stewart, Strahorn, Trakas, Wagner, Walcher, White, Widener, Widowfield, Willamowski, Williams, Wilson, Wolpert, Woodard
A BILL
To amend section 5741.02 and to enact sections 323.122 and 3319.284 of the Revised Code and to amend Sections 1.09 and 35.03 of H.B. 675 of the 124th General Assembly and to amend Section 3 of Am. Sub. S.B. 143 of the 124th General Assembly to extend the time within which members of the National Guard and reserve components of the Armed Forces of the United States who have been called to active duty must pay real property and manufactured home taxes, to provide for extension of educator licenses for active duty members, to delay the effective date of certain sales tax law changes, to exempt leased computer equipment and related software from use taxation if it is held temporarily in Ohio by a third party, to amend the version of section 5741.02 of the Revised Code that is scheduled to take effect July 1, 2003, to continue the amendment to that section by this act on and after that date, and to declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5741.02 be amended and sections 323.122 and 3319.284 of the Revised Code be enacted to read as follows:
Sec. 323.122. (A) As used in this section: (1) "Active duty" has the same meaning as in division (F) of section 5919.34 of the Revised Code. (2) "Dependent parent" means a parent who, at the time the member was activated, received from the member at least half of the dependent parent's support, including food, shelter, clothing, and medical and dental care. (B) This section applies to any real property or
manufactured or mobile home that is: (1) Owned by a member of the national guard or a member of a
reserve component of the armed forces of the United States who is
called to active duty; (2) Owned by the spouse of such a member; (3) Owned jointly by such a member and that member's spouse
or dependent parent; or (4) Owned by the dependent parent of such a member who dies
during such duty or as the result of wounds or illness
incurred
during such duty. (C) The member, the member's spouse, or the member's parent,
as applicable, may apply to the county treasurer for an extension
for the payment of taxes and assessments charged against the real
property or manufactured or mobile home and payable during the
period of the
member's duty service and the six months ensuing
termination
thereof. Additionally, application may be made on behalf of a member under a power of attorney granted by the member. Application shall be made not later than the
last day of
the sixth month after the month in which the member's
duty
terminates. The applicant shall provide evidence
satisfactory to
the county treasurer to demonstrate eligibility
for the extension
as described in division (B) of this section. If the county treasurer determines that the applicant
qualifies for an extension under this section, the county
treasurer shall enter into a contract with the applicant for
payment of the taxes and assessments in installments in the same
manner as, and subject to the same terms and conditions of,
contracts for the payment of delinquent taxes pursuant to section
323.31 of the Revised Code, except that the contract shall specify
that payments shall begin in the seventh month after the member's
duty terminates. Notwithstanding sections 319.49,
323.01,
323.121, 323.132, 4503.06, 5721.01, and 5721.011 of the
Revised
Code, taxes and assessments, payment of which has been
extended
under this section, do not constitute delinquent taxes
and shall
not be placed on the delinquent land list or delinquent
manufactured
home tax list unless the contract becomes void, and
a
new contract is not entered into, pursuant to section 323.31 of
the Revised Code.
(D) If a member, a member's spouse, or a member's parent
qualifies for the extension provided in this section, and that
member, spouse, or parent has designated an agent for the payment
of taxes and assessments the payment of which is so extended, that
agent shall not require the member, spouse, or parent to pay to
the agent any such taxes and assessments for the period for which
payment is extended under division (C) of this section. If such
taxes or assessments are paid by the member, spouse, or parent to
an agent as part of a mortgage loan installment payment, the agent
shall deduct the portion of the payment that represents such taxes
and assessments from the amount of each such payment payable
during the period of extension prescribed by division (C) of this
section. (E) If the
member,
the member's spouse, or the member's
parent has
entered into a
contract pursuant to this section
before the first
day of the
seventh month after the month in which
the member's
duty
terminates, the county auditor and treasurer
shall remove from the tax list and duplicate, respectively, any
penalties and interest that were
charged
under section
323.121 or
4503.06 of the
Revised Code during the member's duty and before
the first day of the seventh month after the month in which the
member's duty terminates. (F) Notwithstanding section 323.131 of the Revised Code, a
county treasurer shall include a notice of, and information about,
the extension provided in this section on or with tax bills mailed
or delivered under section 323.13 or 4503.06 of the Revised Code or by providing such notice and information to a newspaper of general circulation in the county when tax bills are mailed or delivered under those sections.
Sec. 3319.284. A member of the national guard or a member of a reserve component of the armed forces of the United States who is called to active duty and who, at the time of deployment, holds a valid educator license under this chapter is entitled to have the license extended for a period of time commensurate with the length of active duty service, provided the educator is honorably released from such active duty service. No extension granted pursuant to this section in any year shall be deemed to have expired before the next following thirtieth day of June.
As used in this section, "active duty" has the same meaning as in section 5919.34 of the Revised Code.
Sec. 5741.02. (A) For the use of the general revenue fund
of the state, an excise tax is hereby levied on the storage, use,
or other consumption in this state of tangible personal property
or the benefit realized in this state of any service provided.
The
tax shall be collected pursuant to the schedules in section
5739.025 of the Revised Code. (B) Each consumer, storing, using, or otherwise consuming
in
this state tangible personal property or realizing in this
state
the benefit of any service provided, shall be liable for the
tax,
and such liability shall not be extinguished until the tax
has
been paid to this state; provided, that the consumer shall be
relieved from further liability for the tax if the tax has been
paid to a seller in accordance with section 5741.04 of the
Revised
Code or prepaid by the seller in accordance with section
5741.06
of the Revised Code. (C) The tax does not apply to the storage, use, or
consumption in this state of the following described tangible
personal property or services, nor to the storage, use, or
consumption or benefit in this state of tangible personal
property
or services purchased under the following described
circumstances: (1) When the sale of property or service in this state is
subject to the excise tax imposed by sections 5739.01 to 5739.31
of the Revised Code, provided said tax has been paid; (2) Except as provided in division (D) of this section,
tangible personal property or services, the acquisition of which,
if made in Ohio, would be a sale not subject to the tax imposed
by
sections 5739.01 to 5739.31 of the Revised Code; (3) Property or services, the storage, use, or other
consumption of or benefit from which this state is prohibited
from
taxing by the Constitution of the
United States, laws of the
United States, or the Constitution of this
state. This exemption
shall not exempt from the application of the tax imposed by this
section the storage, use, or consumption of tangible personal
property that was purchased in interstate commerce, but
that has
come to rest in this state, provided that fuel to
be used or
transported in carrying on interstate commerce that is
stopped
within this state pending transfer from one conveyance to another
is exempt from the excise tax imposed by this section and section
5739.02 of the Revised Code; (4) Transient use of tangible personal property in this
state by a nonresident tourist or vacationer, or a non-business
use within this state by a nonresident of this state, if the
property so used was purchased outside this state for use outside
this state and is not required to be registered or licensed under
the laws of this state; (5) Tangible personal property or services rendered upon
which taxes have been paid to another jurisdiction to the extent
of the amount of the tax paid to such other jurisdiction. Where
the amount of the tax imposed by this section and imposed
pursuant
to section 5741.021, 5741.022, or 5741.023 of the
Revised Code
exceeds the amount paid to another jurisdiction, the
difference
shall be allocated between the tax imposed by this
section and any
tax imposed by a county or a transit authority
pursuant to section
5741.021, 5741.022, or 5741.023 of the
Revised Code, in proportion
to the respective rates of such
taxes. As used in this subdivision,
"taxes paid to another
jurisdiction" means the total amount of retail sales or use tax
or
similar tax based upon the sale, purchase, or use of tangible
personal property or services rendered legally, levied by and paid
to another state or political subdivision thereof, or to the
District of Columbia, where the payment of such tax does not
entitle the taxpayer to any refund or credit for such payment. (6) The transfer of a used manufactured home or used mobile
home,
as defined by section 5739.0210 of the Revised Code,
made on
or after January 1, 2000; (7) Drugs that are or are intended to be distributed free of
charge to a
practitioner licensed to prescribe, dispense, and
administer drugs to a human
being in the course of a professional
practice and that by law may be
dispensed only by or upon the
order of such a practitioner;
(8) Computer equipment and related software leased from a lessor located outside this state and initially received in this state on behalf of the consumer by a third party that will retain possession of such property for not more than ninety days and that will, within that ninety-day period, deliver such property to the consumer at a location outside this state. Division (C)(8) of this section does not provide exemption from taxation for any otherwise taxable charges associated with such property while it is in this state or for any subsequent storage, use, or consumption of such property in this state by or on behalf of the consumer. (D) The tax applies to the storage, use, or other
consumption in this state of tangible personal property or
services, the acquisition of which at the time of sale was
excepted under division (E)(1) of section 5739.01 of the Revised
Code from the tax imposed by section 5739.02 of the Revised Code,
but which has subsequently been temporarily or permanently
stored,
used, or otherwise consumed in a taxable manner. (E) If any transaction is claimed to be exempt under
division (E)
of
section 5739.01 of the Revised Code or under
section 5739.02
of the Revised Code, with the exception of
divisions (B)(1) to (11)
or (28) of section 5739.02 of the Revised
Code, the consumer shall
furnish to the seller, and the seller
shall obtain from the consumer, a
certificate specifying the
reason that the transaction is
not subject to the tax. If the
transaction is claimed to be exempt under
division (B)(13) of
section 5739.02 of the Revised Code,
the exemption certificate
shall be signed by both the contractor and
contractee, and the
contractee shall be deemed to be the consumer of all items
purchased
under the claim of exemption if it is subsequently
determined that
the exemption is not properly claimed. The
certificate shall be
in such form as the tax commissioner by rule
prescribes. If no
certificate is furnished or obtained within the
period for filing
the return for the period in which the
transaction is consummated,
it shall be presumed that the tax
applies. The failure to have so
furnished or obtained a
certificate shall not preclude a seller or
consumer from
establishing, within one hundred twenty days of the
giving of
notice by the commissioner of intention to levy an
assessment,
that the transaction is not subject to the tax. (F) A seller who files a petition for reassessment
contesting the
assessment of tax on transactions for which the
seller obtained no valid
exemption certificates and for which the
seller failed
to establish that the transactions were not subject
to the tax
during the one-hundred-twenty-day period allowed under
division
(E) of this section may present to the tax commissioner
additional
evidence to prove that the transactions were exempt.
The seller
shall file such evidence within ninety days of the
receipt by the
seller of the notice of assessment, except that,
upon application
and for reasonable cause, the tax commissioner
may extend the
period for submitting such evidence thirty days. (G) For the purpose of the proper administration of
sections
5741.01 to 5741.22 of the Revised Code, and to prevent
the evasion
of the tax hereby levied, it shall be presumed that
any use,
storage, or other consumption of tangible personal
property in
this state is subject to the tax until the contrary
is
established.
Section 2. That existing section 5741.02 of the Revised Code is hereby repealed.
Section 3. That the version of section 5741.02 of the Revised Code that is scheduled to take effect July 1, 2003, be amended to read as follows:
Sec. 5741.02. (A) For the use of the general revenue fund
of the state, an excise tax is hereby levied on the storage, use,
or other consumption in this state of tangible personal property
or the benefit realized in this state of any service provided.
The
tax shall be collected pursuant to the schedules in section
5739.025 of the Revised Code. (B) Each consumer, storing, using, or otherwise consuming
in
this state tangible personal property or realizing in this
state
the benefit of any service provided, shall be liable for the
tax,
and such liability shall not be extinguished until the tax
has
been paid to this state; provided, that the consumer shall be
relieved from further liability for the tax if the tax has been
paid to a seller in accordance with section 5741.04 of the
Revised
Code or prepaid by the seller in accordance with section
5741.06
of the Revised Code. (C) The tax does not apply to the storage, use, or
consumption in this state of the following described tangible
personal property or services, nor to the storage, use, or
consumption or benefit in this state of tangible personal
property
or services purchased under the following described
circumstances: (1) When the sale of property or service in this state is
subject to the excise tax imposed by sections 5739.01 to 5739.31
of the Revised Code, provided said tax has been paid; (2) Except as provided in division (D) of this section,
tangible personal property or services, the acquisition of which,
if made in Ohio, would be a sale not subject to the tax imposed
by
sections 5739.01 to 5739.31 of the Revised Code; (3) Property or services, the storage, use, or other
consumption of or benefit from which this state is prohibited
from
taxing by the Constitution of the
United States, laws of the
United States, or the Constitution of this
state. This exemption
shall not exempt from the application of the tax imposed by this
section the storage, use, or consumption of tangible personal
property that was purchased in interstate commerce, but
that has
come to rest in this state, provided that fuel to
be used or
transported in carrying on interstate commerce that is
stopped
within this state pending transfer from one conveyance to another
is exempt from the excise tax imposed by this section and section
5739.02 of the Revised Code; (4) Transient use of tangible personal property in this
state by a nonresident tourist or vacationer, or a non-business
use within this state by a nonresident of this state, if the
property so used was purchased outside this state for use outside
this state and is not required to be registered or licensed under
the laws of this state; (5) Tangible personal property or services rendered, upon
which taxes have been paid to another jurisdiction to the extent
of the amount of the tax paid to such other jurisdiction. Where
the amount of the tax imposed by this section and imposed
pursuant
to section 5741.021, 5741.022, or 5741.023 of the
Revised Code
exceeds the amount paid to another jurisdiction, the
difference
shall be allocated between the tax imposed by this
section and any
tax imposed by a county or a transit authority
pursuant to section
5741.021, 5741.022, or 5741.023 of the
Revised Code, in proportion
to the respective rates of such
taxes. As used in this subdivision, "taxes paid to another
jurisdiction" means the total amount of retail sales or use tax
or
similar tax based upon the sale, purchase, or use of tangible
personal property or services rendered legally, levied by and paid
to another state or political subdivision thereof, or to the
District of Columbia, where the payment of such tax does not
entitle the taxpayer to any refund or credit for such payment. (6) The transfer of a used manufactured home or used mobile
home,
as defined by section 5739.0210 of the Revised Code,
made on
or after January 1, 2000; (7) Drugs that are or are intended to be distributed free of
charge to a
practitioner licensed to prescribe, dispense, and
administer drugs to a human
being in the course of a professional
practice and that by law may be
dispensed only by or upon the
order of such a practitioner;
(8) Computer equipment and related software leased from a lessor located outside this state and initially received in this state on behalf of the consumer by a third party that will retain possession of such property for not more than ninety days and that will, within that ninety-day period, deliver such property to the consumer at a location outside this state. Division (C)(8) of this section does not provide exemption from taxation for any otherwise taxable charges associated with such property while it is in this state or for any subsequent storage, use, or consumption of such property in this state by or on behalf of the consumer. (D) The tax applies to the storage, use, or other
consumption in this state of tangible personal property or
services, the acquisition of which at the time of sale was
excepted under division (E)(1) of section 5739.01 of the Revised
Code from the tax imposed by section 5739.02 of the Revised Code,
but which has subsequently been temporarily or permanently
stored,
used, or otherwise consumed in a taxable manner. (E)(1) If any transaction is claimed to be exempt under
division (E)
of
section 5739.01 of the Revised Code or under
section 5739.02
of the Revised Code, with the exception of
divisions (B)(1) to (11)
or (28) of section 5739.02 of the Revised
Code, the consumer shall
provide to the seller, and the
seller
shall obtain from the consumer,
a
certificate specifying
the
reason that the
transaction is
not subject to the tax.
The
certificate shall be provided either in a hard copy form or
electronic form, as prescribed by the tax commissioner. If the
transaction is
claimed to be exempt under
division (B)(13) of
section 5739.02 of
the Revised Code,
the exemption certificate
shall be
provided by
both the contractor and
contractee. Such
contractee shall be
deemed to be the consumer of all
items
purchased
under the claim
of exemption if it is subsequently
determined that
the exemption
is not properly claimed. The
certificate shall be
in such form as the tax commissioner by rule
prescribes.
The seller shall maintain records, including
exemption certificates, of all sales on which a consumer has
claimed an exemption, and provide them to the tax commissioner on
request. (2) If no
certificate is
provided or obtained
within the
period for filing
the return for
the period in which
the
transaction is consummated,
it shall be
presumed that the tax
applies. The failure to have so
provided
or obtained a
certificate shall not preclude a seller or
consumer from
establishing, within one hundred twenty days of the
giving of
notice by the commissioner of intention to levy an
assessment,
that the transaction is not subject to the tax. (F) A seller who files a petition for reassessment
contesting the
assessment of tax on transactions for which the
seller obtained no valid
exemption certificates, and for which the
seller failed
to establish that
the transactions were not subject
to the tax
during the
one-hundred-twenty-day period allowed under
division
(E) of this
section, may present to the tax commissioner
additional
evidence
to prove that the transactions were exempt.
The seller
shall file
such evidence within ninety days of the
receipt by the
seller of
the notice of assessment, except that,
upon application
and for
reasonable cause, the tax commissioner
may extend the
period for
submitting such evidence thirty days. (G) For the purpose of the proper administration of
sections
5741.01 to 5741.22 of the Revised Code, and to prevent
the evasion
of the tax hereby levied, it shall be presumed that
any use,
storage, or other consumption of tangible personal
property in
this state is subject to the tax until the contrary
is
established.
Section 4. That the existing version of section 5741.02 of the Revised Code that is scheduled to take effect July 1, 2003, is hereby repealed.
Section 5. That Sections 3 and 4 of this act take effect July 1, 2003.
Section 6. That Sections 1.09 and 35.03 of H.B. 675 of the 124th General Assembly be amended to read as follows:
Sec. 1.09. Sections 1.07 and 1.08 of this act H.B. 675 of the 124th General Assembly take effect
July
1, 2003 January 1, 2004.
Sec. 35.03. Section 5739.031 of the Revised Code takes effect July 1, 2003 January 1, 2004.
Section 7. That existing Sections 1.09 and 35.03 of H.B. 675 of the 124th General Assembly are hereby repealed.
Section 8. That Section 3 of Am. Sub. S.B. 143 of the 124th General Assembly be amended to read as follows:
Sec. 3. (A) Sections
5739.021, 5739.023, 5739.026, 5739.03,
5739.031,
5739.033, 5739.12, 5741.02, and 5741.12, and
division
(I)(7) of section 5741.01 of the Revised Code, as
amended
by this
act Am. Sub. S.B. 143 of the 124th General Assembly, and sections 306.73, 5703.65, 5739.04, 5739.06,
5741.05, and
5741.08 of the Revised Code, as enacted by this act Am. Sub. S.B. 143 of the 124th General Assembly,
shall take
effect July 1, 2003. (B) Sections 5739.021, 5739.023, 5739.026, 5739.031, and 5739.033 of the Revised Code, as amended by Am. Sub. S.B. 143 of the 124th General Assembly, shall take effect January 1, 2004.
Section 9. That existing Section 3 of Am. Sub. S.B. 143 of the 124th General Assembly is hereby repealed.
Section 10. The amendments to sections 5739.021, 5739.023, and 5739.026 of the Revised Code by Am. Sub. S.B. 143 of the 124th General Assembly apply to levies proposed by a resolution adopted on or after January 1, 2004, and do not apply to levies proposed by a resolution adopted before that date.
Section 11. Sections 6, 7, 8, and 9 of this act intend to delay the scheduled July 1, 2003, effective date of sections 5739.021, 5739.023, 5739.026, 5739.031, and 5739.033 of the Revised Code until January 1, 2004.
Section 12. This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety. The reasons for such necessity are that active duty military personnel may face real economic hardships while serving their country and urgently need the financial relief provided by the real property and manufactured home tax extensions authorized by this act. Therefore, this act shall go into immediate effect.
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