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Sub. H. B. No. 293 As Reported by the Senate Ways and Means and Economic Development Committee
As Reported by the Senate Ways and Means and Economic Development Committee
126th General Assembly | Regular Session | 2005-2006 |
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Representatives Kilbane, Miller, Trakas, McGregor, J., Wolpert, Evans, C., Reidelbach, Gilb, Faber, Cassell, Kearns, Hartnett, Carano, Boccieri, Healy, Buehrer, Aslanides, Barrett, Beatty, Blessing, Book, Brinkman, Brown, Bubp, Calvert, Chandler, Coley, Collier, Combs, DeBose, DeGeeter, DeWine, Distel, Dolan, Domenick, Evans, D., Fessler, Garrison, Gibbs, Hagan, Harwood, Hughes, Key, Koziura, Latta, Law, Martin, Mason, Oelslager, Otterman, Patton, T., Perry, Peterson, Raussen, Reed, Sayre, Schaffer, Schlichter, Schneider, Seitz, Setzer, Skindell, Smith, S., Stewart, D., Stewart, J., Strahorn, Taylor, Ujvagi, Wagoner, Webster, Williams, Woodard, Yates, Yuko
Senator Schuler
A BILL
To amend sections 135.353 and 5739.01 and to enact sections 135.804, 135.805, 135.806, and 135.807 of the Revised Code to authorize boards of county commissioners to establish property tax payment linked deposit programs to assist senior citizens and permanently and totally disabled citizens in paying property taxes on their homesteads, and to change who pays sales or use taxes when employment service personnel are supplied by the purchaser to a third party as an employment service.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 135.353 and 5739.01 be amended and sections 135.804, 135.805, 135.806, and 135.807 of the Revised Code be enacted to read as follows:
Sec. 135.353. (A) In addition to the investments specified in section 135.35 of
the Revised Code, the investing authority of a county may do both all of the following: (A)(1) Invest inactive or
public moneys in linked deposits as authorized by resolution adopted pursuant
to section 135.80 or 135.801 of the Revised Code;
(B)(2) Invest inactive or public moneys in linked deposits as authorized by resolution adopted pursuant to section 135.805 of the Revised Code for a term considered appropriate by the investing authority, but not exceeding fifteen years, which investment may be renewed for up to two additional terms with each additional term not exceeding fifteen years.
(3) Invest inactive moneys in certificates of deposit in accordance with all of the following:
(1)(a) The inactive moneys initially are deposited with an eligible public depository described in section 135.32 of the Revised Code and selected by the investing authority.
(2)(b) For the investing authority depositing the inactive moneys pursuant to division (B)(1)(A)(3)(a) of this section, the eligible public depository selected pursuant to that division invests the inactive moneys in certificates of deposit of one or more federally insured banks or savings and loan associations, wherever located. The full amount of principal and any accrued interest of each certificate of deposit invested in pursuant to division (B)(2)(A)(3)(b) of this section shall be insured by federal deposit insurance. (3)(c) For the investing authority depositing the inactive moneys pursuant to division (B)(1)(A)(3)(a) of this section, the eligible public depository selected pursuant to that division acts as custodian of the certificates of deposit described in division (B)(2)(A)(3)(b) of this section.
(4)(d) At the same time that the eligible public depository selected in accordance with division (B)(1)(A)(3)(a) of this section invests the deposit received pursuant to that division in the certificates of deposit described in division (B)(2)(A)(3)(b) of this section, and the certificates of deposit are issued by the bank or savings and loan association, the eligible public depository receives an amount of deposits from customers of other federally insured financial institutions, wherever located, that are equal to or greater than the amount initially deposited by the investing authority pursuant to division (B)(1)(A)(3)(a) of this section.
(C)(B) Inactive moneys deposited or invested in accordance with division (B)(A)(3) of this section are not subject to any pledging requirements described in section 135.181 or 135.37 of the Revised Code.
Sec. 135.804. As used in sections 135.804 to 135.807 of the Revised Code:
(A) "Taxes" has the same meaning as in section 323.01 of the Revised Code.
(B) "Eligible borrower" means a person meeting all of the following:
(1) The person is the owner of a homestead that is not charged with more than two years' worth of certified delinquent taxes.
(2) The person had total income in the year prior to submitting an application for a reduced rate loan under a property tax payment linked deposit program of the lesser of fifty thousand dollars or the total income limit established pursuant to section 135.805 of the Revised Code by the board of county commissioners as an eligibility requirement for participation in a property tax payment linked deposit program.
(3) The person meets all other eligibility requirements established pursuant to section 135.805 of the Revised Code by the board of county commissioners for participation in a property tax payment linked deposit program.
(C) "Eligible lending institution" means a financial institution that meets all of the following:
(1) The financial institution is eligible to make loans to individuals that are secured by mortgages, including mortgages commonly known as reverse mortgages.
(2) The financial institution has an office located within the territorial limits of the county.
(3) The financial institution is an eligible public depository described in section 135.32 of the Revised Code into which the county's investing authority may deposit the public moneys of the county.
(4) The financial institution has entered into an agreement described in division (B)(4) of section 135.805 of the Revised Code with the investing authority of the county to participate in the property tax payment linked deposit program.
(D) "Homestead" means either of the following: (1) A dwelling, including a unit in
a multiple-unit dwelling
and a manufactured home or
mobile home taxed as real property
pursuant to division (B) of
section 4503.06 of the Revised Code,
owned and
occupied as a
home by an individual whose domicile is in
this state and who has
not acquired ownership from a person, other
than the
individual's spouse,
related by consanguinity or affinity
for the purpose of
qualifying for a property tax payment linked deposit program. (2) A unit in a housing cooperative that is occupied as a
home,
but not owned, by an individual whose domicile is in this
state. The homestead shall include
so much of the land surrounding
it, not exceeding one acre, as is
reasonably necessary for the use
of the dwelling or unit as a
home. An owner includes a holder of
one of the several
estates in fee, a vendee in possession under a
purchase
agreement or a land contract, a mortgagor, a life tenant,
one or more tenants
with a right of survivorship, tenants in
common, and a settlor of
a revocable inter vivos trust holding the
title to a homestead
occupied by the settlor as of right under the
trust.
(E) "Housing cooperative" means a housing complex of at
least two
hundred fifty units that is owned and operated by a
nonprofit
corporation that issues a share of the corporation's
stock to an
individual, entitling the individual to live in a unit
of the complex, and
collects a monthly maintenance fee from the
individual to
maintain, operate, and pay the taxes of the complex.
(F) "Investing authority" and "public moneys" have the same meanings as in section 135.31 of the Revised Code.
(G) "Lien certificate" means the certificate described in section 135.807 of the Revised Code.
(H) "Old age and survivors benefits received pursuant to
the
'Social Security Act'" or "tier I railroad retirement
benefits
received pursuant to the 'Railroad Retirement Act'"
means: (1) Old age
benefits
payable under the social security or railroad retirement
laws in
effect on the last day of the calendar year prior to the
year for
which a reduced rate loan under a property tax payment linked deposit program is applied for, or, if
no such
benefits are payable that year, old age benefits payable
the first
succeeding year in which old age benefits under the
social
security or railroad retirement laws are payable, except
in those
cases where a change in social security or railroad
retirement
benefits results in a reduction in income. (a) Survivors benefits payable under the social security
or
railroad retirement laws in effect on the last day of the
calendar
year prior to the year for which a reduced rate loan under a property tax payment linked deposit program is applied for, or, if no such benefits are payable that year,
survivors
benefits payable the first succeeding year in which
survivors
benefits are payable; or (b) Old age benefits of the deceased spouse, as determined
under division (H)(1) of this section, upon which the
surviving spouse's survivors benefits are based under the social
security or railroad retirement laws, except in those cases where
a change in benefits would cause a reduction in income. Survivors benefits are those described in division
(H)(2)(b)
of this section only if the deceased spouse received
old age
benefits in the year in which the deceased spouse died. If the
deceased spouse did not receive old age benefits in the year in
which the deceased spouse died, then survivors benefits are those
described in division (H)(2)(a) of this section. (I) "Permanently and totally disabled" means a person who, on the first day of January of the year that a reduced rate loan under a property tax payment linked deposit program is applied for, has some impairment in body or mind
that makes the person unable to work at any substantially
remunerative
employment that the person reasonably is able to
perform
and
that will,
with reasonable probability, continue for
an indefinite period of
at least twelve months without any present
indication of recovery
therefrom or has been certified as
permanently and totally
disabled by a state or federal agency
having the function of so
classifying persons.
(J) "Property tax payment linked deposit program" means a county-wide program authorized under section 135.805 of the Revised Code and established by the board of county commissioners of a county pursuant to that section.
(K) "Sixty-five years of age or older" means a person who
has attained age sixty-four prior to the first day of January of
the year of application for a reduced rate loan under a property tax payment linked deposit program.
(L) "Total income" means the adjusted gross income of the
owner and the owner's spouse for the year preceding the year
in
which
application for a reduced rate loan under a property tax payment linked deposit program is made, as determined
under
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26
U.S.C.A.
1, as amended, adjusted as follows: (1) Subtract the amount of disability benefits included in
adjusted gross income, but not to exceed fifty-two hundred
dollars; (2) Add old age and survivors benefits received pursuant
to
the "Social Security Act" that are not included in adjusted
gross
income; (3) Add retirement, pension, annuity, or other retirement
payments or benefits not included in adjusted gross income; (4) Add tier I and tier II railroad retirement benefits
received pursuant to the "Railroad Retirement Act," 50 Stat. 307,
45 U.S.C.A. 228; (5) Add interest on federal, state, and local government
obligations; (6) For a person who received a reduced rate loan under a property tax payment linked deposit program for a
prior year on
the basis of being permanently and totally disabled
and whose current
application for a reduced rate loan is made on the
basis of age, subtract the
following amount: (a) If the person received disability benefits that were not
included in adjusted gross income in the year preceding the first
year in
which the person applied for a reduced rate loan on the basis of
age, subtract an
amount equal to the disability benefits the
person received in that preceding
year, to the extent included in
total income in the current year and not
subtracted under division
(L)(1) of this section in the current year; (b) If the person received disability benefits that were
included
in adjusted gross income in the year preceding the first
year in which the
person applied for a reduced rate loan on the basis of
age, subtract an amount equal
to the amount of disability benefits
that were subtracted pursuant to division
(L)(1) of this section
in that preceding year, to the extent included
in total income in
the current year and not subtracted under division
(L)(1) of this
section in the current year. Disability benefits that are paid by the department of
veterans affairs or
a
branch of the armed forces of the United
States on account
of an injury or disability shall not be included
in total income.
Sec. 135.805. (A) The general assembly finds that many low to moderate income senior citizens and permanently and totally disabled citizens face financial hardship and find it difficult to timely pay property taxes on their homesteads, which can lead to delinquencies, penalties, declines in tax receipts, foreclosures, a loss of stable and affordable housing, a loss of neighborhoods and communities, and a decline in property values. Accordingly, it is declared to be the public policy of the state through property tax payment linked deposit programs established by counties to provide a source of low-cost funds for lending purposes to assist these citizens in timely paying property taxes on their homesteads.
(B) A board of county commissioners, by resolution, may establish for the benefit of persons sixty-five years of age or older, or persons who are permanently and totally disabled, or both groups of persons, a property tax payment linked deposit program. The program shall authorize the investing authority of the county, in accordance with division (A)(2) of section 135.353 of the Revised Code, to place certificates of deposit at up to three per cent below market rates with an eligible lending institution, provided that the eligible lending institution agrees to lend the value of such deposit to eligible borrowers at up to three per cent below the present borrowing rate applicable to each eligible borrower. The resolution shall include requirements, parameters, limitations, and other provisions that are consistent with sections 135.804 to 135.807 of the Revised Code and are necessary to establish and carry out the property tax payment linked deposit program, including, but not limited to, all of the following:
(1) Eligibility requirements for borrowers who may receive reduced rate loans under the property tax payment linked deposit program, including both of the following: (a) A total income limit for a borrower to be eligible for such a loan; (b) An indebtedness limit that a borrower may not exceed to be eligible for such a loan, under which the sum of all recorded liens on the homestead plus the amount of the reduced rate loan cannot exceed eighty per cent of the homestead's true value as most recently determined by the county auditor.
(2) Application procedures for eligible borrowers and eligible lending institutions wishing to participate in the property tax payment linked deposit program;
(3) Review procedures for applications and criteria for acceptance or rejection of applications for reduced rate loans under the property tax payment linked deposit program;
(4) Necessary agreements between the eligible lending institution and the investing authority of the county to carry out the purposes of the property tax payment linked deposit program, including procedures for the payment directly to the county treasurer by the eligible lending institution of the property taxes due on the homestead and delivery by the county treasurer to the eligible lending institution of the lien certificate as provided in section 135.807 of the Revised Code;
(5) Annual reports regarding the operation of the property tax payment linked deposit program to be made by the investing authority to the board of county commissioners.
(C) A board of county commissioners may appropriate funds from the general fund of the county or any other lawfully available funds of the county for the purpose of defraying some or all of the closing costs and expenses of reduced rate loans made by eligible lending institutions to eligible borrowers pursuant to the property tax payment linked deposit program.
(D) The county and its investing authority and the board of county commissioners are not liable to any eligible lending institution in any manner for the payment of the principal or interest on any reduced rate loan made under the property tax payment linked deposit program, and any delay in payment or default on the part of any borrower does not in any manner affect the deposit agreement between the eligible lending institution and the investing authority or board of county commissioners.
Sec. 135.806. Upon placement of a certificate of deposit with an eligible lending institution pursuant to an agreement described in section 135.805 of the Revised Code, the eligible lending institution shall do both of the following:
(A) Lend funds pursuant to the agreement to an eligible borrower;
(B) Comply fully with the requirements of sections 135.804 to 135.807 of the Revised Code.
Sec. 135.807. (A) A property tax payment linked deposit program shall provide for the delivery of a lien certificate to an eligible lending institution making payment to the county treasurer, pursuant to a loan agreement between the eligible lending institution and eligible borrower, of some or all of the taxes then due on the homestead of that eligible borrower.
(B)(1) To ensure uniformity among all counties, the tax commissioner shall prescribe the form for a lien certificate delivered pursuant to division (A) of this section, which form shall include the identity of the homestead, the eligible borrower, the eligible lending institution, the amount of taxes paid by that eligible lending institution, and the tax year for which the taxes were paid. The tax commissioner shall distribute the forms to the county treasurers of all counties in which a property tax payment linked deposit program is established.
(2) A county treasurer shall use the lien certificate form prescribed by the tax commissioner, except that, prior to the time that a lien certificate form is prescribed and the forms are distributed by the tax commissioner, the form shall be prepared by the county treasurer of the county, contain the information required by division (B)(1) of this section, and include the following sentence: "This lien certificate is delivered pursuant to section 135.807 of the Revised Code and vests in the eligible lending institution the first lien held previously by the state and its taxing districts for the amount of taxes paid by the eligible lending institution, together with any and all unpaid interest thereon."
(C)(1) The delivery of the lien certificate pursuant to division (A) of this section vests in the eligible lending institution the first lien held previously by the state and its taxing districts for the amount of the taxes paid by the eligible lending institution, together with any unpaid interest thereon from the date of delivery at the interest rate specified in the loan agreement between the eligible lending institution and the eligible borrower. The lien is superior to any subsequent tax liens.
(2) Subject to division (C)(3) of this section, the lien certificate delivered pursuant to division (A) of this section is superior to all other liens and encumbrances upon the homestead described in that lien certificate, and the lien continues in full force and effect until the amount of all taxes paid by the eligible lending institution, together with any unpaid interest thereon, has been repaid to the eligible lending institution.
(3) With respect to the priority as among first liens of the state and its taxing districts, the priority is determined by the date that the first liens of the state and its taxing districts attached pursuant to section 323.11 of the Revised Code, with first priority to the earliest attached lien and each immediately subsequent priority based upon the next earliest attached lien.
(D) The eligible lending institution may record the lien certificate or memorandum thereof as a mortgage on the land in the office of the county recorder of the county in which the homestead is situated. The county recorder shall record the certificate in the record of mortgages provided in division (B) of section 317.08 of the Revised Code and shall index the certificate in the indexes provided for under section 317.18 of the Revised Code. If the lien subsequently is canceled, the cancellation also shall be recorded by the county recorder. When a loan is repaid in full, the eligible financial institution shall promptly record the full payment and cancel or otherwise release the lien. On repayment of the loan in full, the lien certificate shall be null and void.
Sec. 5739.01. As used in this chapter: (A) "Person" includes individuals, receivers, assignees,
trustees in bankruptcy, estates, firms, partnerships,
associations, joint-stock companies, joint ventures, clubs,
societies, corporations, the state and its political
subdivisions,
and combinations of individuals of any form. (B) "Sale" and "selling" include all of the following
transactions for a consideration in any manner, whether
absolutely
or conditionally, whether for a price or rental, in
money or by
exchange, and by any means whatsoever: (1) All transactions by which title or possession, or
both,
of tangible personal property, is or is to be transferred,
or a
license to use or consume tangible personal property is or
is to
be granted; (2) All transactions by which lodging by a hotel is or is
to
be furnished to transient guests; (3) All transactions by which: (a) An item of tangible personal property is or is to be
repaired, except property, the purchase of which would not be
subject to the tax imposed by section 5739.02 of the Revised Code; (b) An item of tangible personal property is or is to be
installed, except property, the purchase of which would not be
subject to the tax imposed by section 5739.02 of the Revised Code
or
property that is or is to be incorporated into and will become
a
part of a production, transmission, transportation, or
distribution system for the delivery of a public utility service; (c) The service of washing, cleaning, waxing, polishing,
or
painting a motor vehicle is or is to be furnished; (d) Until August 1, 2003, industrial laundry cleaning services are or are to be
provided and, on and after August 1, 2003, laundry and dry cleaning services are or are to be provided; (e) Automatic data processing, computer services, or
electronic information services are or are to be provided for use
in business when the true object of the transaction is the
receipt
by the consumer of automatic data processing, computer
services,
or electronic information services rather than the
receipt of
personal or professional services to which automatic
data
processing, computer services, or electronic information
services
are incidental or supplemental. Notwithstanding any
other
provision of this chapter, such transactions that occur
between
members of an affiliated group are not sales. An
affiliated group
means two or more persons related in such a way
that one person
owns or controls the business operation of
another member of the
group. In the case of corporations with
stock, one corporation
owns or controls another if it owns more
than fifty per cent of
the other corporation's common stock with
voting rights. (f) Telecommunications service, including prepaid calling service, prepaid wireless calling service, or ancillary service, is or is to be
provided, but not including
coin-operated
telephone service; (g) Landscaping and lawn care service is or is to be
provided; (h) Private investigation and security service is or is to
be provided; (i) Information services or tangible personal property is
provided or ordered by means of a nine hundred telephone call; (j) Building maintenance and janitorial service is or is
to
be provided; (k) Employment service is or is to be provided; (l) Employment placement service is or is to be provided; (m) Exterminating service is or is to be provided; (n) Physical fitness facility service is or is to be
provided; (o) Recreation and sports club service is or is to be
provided.
(p) On and after August 1, 2003, satellite broadcasting service is or is to be provided;
(q) On and after August 1, 2003, personal care service is or is to be provided to an individual. As used in this division, "personal care service" includes skin care, the application of cosmetics, manicuring, pedicuring, hair removal, tattooing, body piercing, tanning, massage, and other similar services. "Personal care service" does not include a service provided by or on the order of a licensed physician or licensed chiropractor, or the cutting, coloring, or styling of an individual's hair.
(r) On and after August 1, 2003, the transportation of persons by motor vehicle or aircraft is or is to be provided, when the transportation is entirely within this state, except for transportation provided by an ambulance service, by a transit bus, as defined in section 5735.01 of the Revised Code, and transportation provided by a citizen of the United States holding a certificate of public convenience and necessity issued under 49 U.S.C. 41102;
(s) On and after August 1, 2003, motor vehicle towing service is or is to be provided. As used in this division, "motor vehicle towing service" means the towing or conveyance of a wrecked, disabled, or illegally parked motor vehicle.
(t) On and after August 1, 2003, snow removal service is or is to be provided. As used in this division, "snow removal service" means the removal of snow by any mechanized means, but does not include the providing of such service by a person that has less than five thousand dollars in sales of such service during the calendar year. (4) All transactions by which printed, imprinted,
overprinted, lithographic, multilithic, blueprinted, photostatic,
or other productions or reproductions of written or graphic
matter
are or are to be furnished or transferred; (5) The production or fabrication of tangible personal
property for a consideration for consumers who furnish either
directly or indirectly the materials used in the production of
fabrication work; and include the furnishing, preparing, or
serving for a consideration of any tangible personal property
consumed on the premises of the person furnishing, preparing, or
serving such tangible personal property. Except as provided in
section 5739.03 of the Revised Code, a construction contract
pursuant to which tangible personal property is or is to be
incorporated into a structure or improvement on and becoming a
part of real property is not a sale of such tangible personal
property. The construction contractor is the consumer of such
tangible personal property, provided that the sale and
installation of carpeting, the sale and installation of
agricultural land tile, the sale and erection or installation of
portable grain bins, or the provision of landscaping and lawn
care
service and the transfer of property as part of such service
is
never a construction contract. As used in division (B)(5) of this section: (a) "Agricultural land tile" means fired clay or concrete
tile, or flexible or rigid perforated plastic pipe or tubing,
incorporated or to be incorporated into a subsurface drainage
system appurtenant to land used or to be used directly in
production by farming, agriculture, horticulture, or
floriculture.
The term does not include such materials when they
are or are to
be incorporated into a drainage system appurtenant
to a building
or structure even if the building or structure is
used or to be
used in such production. (b) "Portable grain bin" means a structure that is used or
to be used by a person engaged in farming or agriculture to
shelter the person's grain and that is designed to be
disassembled
without significant damage to its component parts. (6) All transactions in which all of the shares of stock
of
a closely held corporation are transferred, if the corporation
is
not engaging in business and its entire assets consist of
boats,
planes, motor vehicles, or other tangible personal
property
operated primarily for the use and enjoyment of the
shareholders; (7) All transactions in which a warranty, maintenance or
service contract, or similar agreement by which the vendor of the
warranty, contract, or agreement agrees to repair or maintain the
tangible personal property of the consumer is or is to be
provided; (8) The transfer of copyrighted motion picture films used solely for advertising purposes, except that the transfer of such films for exhibition purposes is not a sale. (9) On and after August 1, 2003, all transactions by which tangible personal property is or is to be stored, except such property that the consumer of the storage holds for sale in the regular course of business.
Except as provided in this section, "sale" and "selling" do not include transfers of interest in leased property where the original lessee and the terms of the original lease agreement remain unchanged, or professional, insurance, or personal service transactions that involve the transfer of tangible personal property as an inconsequential element, for which no separate charges are made. (C) "Vendor" means the person providing the service or by
whom the transfer effected or license given by a sale is or is to
be made or given and, for sales described in division (B)(3)(i)
of
this section, the telecommunications service vendor that
provides
the nine hundred telephone service; if two or more
persons are
engaged in business at the same place of business
under a single
trade name in which all collections on account of
sales by each
are made, such persons shall constitute a single
vendor. Physicians, dentists, hospitals, and veterinarians who are
engaged in selling tangible personal property as received from
others, such as eyeglasses, mouthwashes, dentifrices, or similar
articles, are vendors. Veterinarians who are engaged in
transferring to others for a consideration drugs, the dispensing
of which does not require an order of a licensed veterinarian or
physician under federal law, are vendors. (D)(1) "Consumer" means the person for whom the service is
provided, to whom the transfer effected or license given by a
sale
is or is to be made or given, to whom the service described
in
division (B)(3)(f) or (i) of this section is charged, or to
whom
the admission is granted. (2) Physicians, dentists, hospitals, and blood banks
operated by nonprofit institutions and persons licensed to
practice veterinary medicine, surgery, and dentistry are
consumers
of all tangible personal property and services
purchased by them
in connection with the practice of medicine,
dentistry, the
rendition of hospital or blood bank service, or
the practice of
veterinary medicine, surgery, and dentistry. In
addition to being
consumers of drugs administered by them or by
their assistants
according to their direction, veterinarians also
are consumers of
drugs that under federal law may be dispensed
only by or upon the
order of a licensed veterinarian or
physician, when transferred by
them to others for a consideration
to provide treatment to animals
as directed by the veterinarian. (3) A person who performs a facility management, or
similar
service contract for a contractee is a consumer of all
tangible
personal property and services purchased for use in
connection
with the performance of such contract, regardless of
whether title
to any such property vests in the contractee. The
purchase of
such property and services is not subject to the
exception for
resale under division (E)(1) of this section. (4)(a) In the case of a person who purchases printed
matter
for the purpose of distributing it or having it distributed to the
public or to a designated segment of the public, free of charge,
that person
is the consumer of that printed matter, and the
purchase of that printed
matter for that purpose is a sale. (b) In the case of a person who produces, rather than
purchases, printed matter for the purpose of distributing it or
having it
distributed to the public or to a designated segment of
the public, free of
charge, that person is the consumer of all
tangible personal property and
services purchased for use or
consumption in the production of that printed
matter. That person
is not entitled to claim exemption under division
(B)(42)(f) of
section 5739.02 of the Revised Code for any material incorporated into the printed
matter or
any equipment, supplies, or services primarily used to produce the
printed matter. (c) The distribution of
printed matter to the public or to a
designated segment of the public, free of
charge, is not a sale to
the members of the public to whom the printed matter
is
distributed or to any persons who purchase space in the printed
matter for
advertising or other purposes. (5) A person who makes sales of any of the services listed
in
division (B)(3) of this section is the consumer of any tangible
personal property used in performing the service. The purchase of
that
property is not subject to the resale exception under
division (E)(1)
of this section. (6) A person who engages in highway transportation for hire is the consumer of all packaging materials purchased by that person and used in performing the service, except for packaging materials sold by such person in a transaction separate from the service. (E) "Retail sale" and "sales at retail" include all sales,
except those in which the purpose of the consumer is to resell the thing transferred or benefit of the
service provided, by a person engaging in business, in the form
in
which the same is, or is to be, received by the person. (F) "Business" includes any activity engaged in by any
person with the object of gain, benefit, or advantage, either
direct or indirect. "Business" does not include the activity of
a
person in managing and investing the person's own funds. (G) "Engaging in business" means commencing, conducting,
or
continuing in business, and liquidating a business when the
liquidator thereof holds
itself out to the public as
conducting
such business. Making a casual sale is not engaging in
business. (H)(1)(a) "Price," except as provided in divisions (H)(2) and
(3) of this section, means the total amount of consideration, including cash, credit, property, and services, for which tangible personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for any of the following:
(i) The vendor's cost of the property sold; (ii) The cost of materials used, labor or service costs, interest, losses, all costs of transportation to the vendor, all taxes imposed on the vendor, including the tax imposed under Chapter 5751. of the Revised Code, and any other expense of the vendor; (iii) Charges by the vendor for any services necessary to complete the sale; (iv) On and after August 1, 2003, delivery charges. As used in this division, "delivery charges" means charges by the vendor for preparation and delivery to a location designated by the consumer of tangible personal property or a service, including transportation, shipping, postage, handling, crating, and packing. (v) Installation charges; (vi) Credit for any trade-in. (b) "Price" includes consideration received by the vendor from a third party, if the vendor actually receives the consideration from a party other than the consumer, and the consideration is directly related to a price reduction or discount on the sale; the vendor has an obligation to pass the price reduction or discount through to the consumer; the amount of the consideration attributable to the sale is fixed and determinable by the vendor at the time of the sale of the item to the consumer; and one of the following criteria is met:
(i) The consumer presents a coupon, certificate, or other document to the vendor to claim a price reduction or discount where the coupon, certificate, or document is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any vendor to whom the coupon, certificate, or document is presented;
(ii) The consumer identifies the consumer's self to the seller as a member of a group or organization entitled to a price reduction or discount. A preferred customer card that is available to any patron does not constitute membership in such a group or organization.
(iii) The price reduction or discount is identified as a third party price reduction or discount on the invoice received by the consumer, or on a coupon, certificate, or other document presented by the consumer.
(c) "Price" does not include any of the following: (i) Discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a vendor and taken by a consumer on a sale; (ii) Interest, financing, and carrying charges from credit extended on the sale of tangible personal property or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser; (iii) Any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale, or similar document given to the consumer. For the purpose of this division, the tax imposed under Chapter 5751. of the Revised Code is not a tax directly on the consumer, even if the tax or a portion thereof is separately stated. (iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this section, any discount allowed by an automobile manufacturer to its employee, or to the employee of a supplier, on the purchase of a new motor vehicle from a new motor vehicle dealer in this state. (2) In the case of a sale of any new motor vehicle by a
new
motor vehicle dealer, as defined in section 4517.01 of the
Revised
Code, in which another motor vehicle is accepted by the
dealer as
part of the consideration received, "price" has the
same meaning
as in division (H)(1) of this section, reduced by
the credit
afforded the consumer by the dealer for the motor
vehicle received
in trade. (3) In the case of a sale of any watercraft or outboard
motor by a watercraft dealer licensed in accordance with section
1547.543 of the Revised Code, in which another watercraft,
watercraft and trailer, or outboard motor is accepted by the
dealer as part of the consideration received, "price" has the
same
meaning as in division (H)(1) of this section, reduced by
the
credit afforded the consumer by the dealer for the
watercraft,
watercraft and trailer, or outboard motor received in
trade. As used in this division, "watercraft" includes an outdrive unit attached to the watercraft. (I) "Receipts" means the total amount of the prices of the
sales of vendors, provided that cash discounts allowed and taken
on sales at the time they are consummated are not included, minus
any amount deducted as a bad debt pursuant to section 5739.121 of
the Revised Code. "Receipts" does not include the sale price of
property returned or services rejected by consumers when the full
sale price and tax are refunded either in cash or by credit. (J) "Place of business" means any location at which a
person
engages in business. (K) "Premises" includes any real property or portion
thereof
upon which any person engages in selling tangible
personal
property at retail or making retail sales and also
includes any
real property or portion thereof designated for, or
devoted to,
use in conjunction with the business engaged in by
such person. (L) "Casual sale" means a sale of an item of tangible
personal property
that was obtained by the person making the
sale, through purchase or otherwise, for the person's own use and
was previously subject to any state's taxing
jurisdiction on its
sale or use, and includes such items acquired
for the seller's use
that are sold by an auctioneer employed
directly by the person for
such purpose, provided the location of
such sales is not the
auctioneer's permanent place of business.
As
used in this
division, "permanent place of business" includes
any
location
where such auctioneer has conducted more than two
auctions during
the year. (M) "Hotel" means every establishment kept, used,
maintained, advertised, or held out to the public to be a place
where sleeping accommodations are offered to guests, in which
five
or more rooms are
used for the accommodation of such guests,
whether
the rooms
are in one or several structures. (N) "Transient guests" means persons occupying a room or
rooms for sleeping accommodations for less than thirty
consecutive
days. (O) "Making retail sales" means the effecting of
transactions wherein one party is obligated to pay the price and
the other party is obligated to provide a service or to transfer
title to or possession of the item sold. "Making retail sales"
does not include the preliminary acts of promoting or soliciting
the retail sales, other than the distribution of printed matter
which displays or describes and prices the item offered for sale,
nor does it include delivery of a predetermined quantity of
tangible personal property or transportation of property or
personnel to or from a place where a service is performed,
regardless of whether the vendor is a delivery vendor. (P) "Used directly in the rendition of a public utility
service" means that property that is to be incorporated into and
will become a part of the consumer's production, transmission,
transportation, or distribution system and
that retains its
classification as tangible personal property after such
incorporation; fuel or power used in the production,
transmission,
transportation, or distribution system; and
tangible personal
property used in the repair and maintenance of
the production,
transmission, transportation, or distribution
system, including
only such motor vehicles as are specially
designed and equipped
for such use. Tangible personal property
and services used
primarily in providing highway transportation
for hire are not
used directly in the rendition of a public utility service. (Q) "Refining" means removing or separating a desirable
product from raw or contaminated materials by distillation or
physical, mechanical, or chemical processes. (R) "Assembly" and "assembling" mean attaching or fitting
together parts to form a product, but do not include packaging a
product. (S) "Manufacturing operation" means a process in which
materials are changed, converted, or transformed into a different
state or form from which they previously existed and includes
refining materials, assembling parts, and preparing raw materials
and parts by mixing, measuring, blending, or otherwise committing
such materials or parts to the manufacturing process.
"Manufacturing operation" does not include packaging. (T) "Fiscal officer" means, with respect to a regional
transit authority, the secretary-treasurer thereof, and with
respect to a county
that is a transit authority, the fiscal
officer of the county transit board if one is appointed pursuant
to
section 306.03 of the Revised Code or the county auditor if the
board of
county commissioners operates the county transit system. (U) "Transit authority" means a regional transit authority
created pursuant to section 306.31 of the Revised Code or a
county
in which a county transit system is created pursuant to
section
306.01 of the Revised Code. For the purposes of this
chapter, a
transit authority must extend to at least the entire
area of a
single county. A transit authority
that includes
territory
in
more than one county must include all the area of
the most
populous county
that is a part of such transit
authority.
County
population shall be measured by the most
recent census
taken by
the United States census bureau. (V) "Legislative authority" means, with respect to a
regional transit authority, the board of trustees thereof, and
with respect to a county
that is a transit authority, the
board
of county commissioners. (W) "Territory of the transit authority" means all of the
area included within the territorial boundaries of a transit
authority as they from time to time exist. Such territorial
boundaries must at all times include all the area of a single
county or all the area of the most populous county
that is a
part
of such transit authority. County population shall be
measured by
the most recent census taken by the United States
census bureau. (X) "Providing a service" means providing or furnishing
anything described in division (B)(3) of this section for
consideration. (Y)(1)(a) "Automatic data processing" means processing of
others' data, including keypunching or similar data entry
services
together with verification thereof, or providing access
to
computer equipment for the purpose of processing data. (b) "Computer services" means providing services
consisting
of specifying computer hardware configurations and
evaluating
technical processing characteristics, computer
programming, and
training of computer programmers and operators,
provided in
conjunction with and to support the sale, lease, or
operation of
taxable computer equipment or systems. (c) "Electronic information services" means providing
access
to computer equipment by means of telecommunications
equipment for
the purpose of either of the following: (i) Examining or acquiring data stored in or accessible to
the computer equipment; (ii) Placing data into the computer equipment to be
retrieved by designated recipients with access to the computer
equipment. (d) "Automatic data processing, computer services, or
electronic information services" shall not include personal or
professional services. (2) As used in divisions (B)(3)(e) and (Y)(1) of this
section, "personal and professional services" means all services
other than automatic data processing, computer services, or
electronic information services, including but not limited to: (a) Accounting and legal services such as advice on tax
matters, asset management, budgetary matters, quality control,
information security, and auditing and any other situation where
the service provider receives data or information and studies,
alters, analyzes, interprets, or adjusts such material; (b) Analyzing business policies and procedures; (c) Identifying management information needs; (d) Feasibility studies, including economic and technical
analysis of existing or potential computer hardware or software
needs and alternatives; (e) Designing policies, procedures, and custom software
for
collecting business information, and determining how data
should
be summarized, sequenced, formatted, processed, controlled,
and
reported so that it will be meaningful to management; (f) Developing policies and procedures that document how
business events and transactions are to be authorized, executed,
and controlled; (g) Testing of business procedures; (h) Training personnel in business procedure applications; (i) Providing credit information to users of such
information by a consumer reporting agency, as defined in the
"Fair Credit Reporting Act," 84 Stat. 1114, 1129 (1970), 15
U.S.C.
1681a(f), or as hereafter amended, including but not
limited to
gathering, organizing, analyzing, recording, and
furnishing such
information by any oral, written, graphic, or
electronic medium; (j) Providing debt collection services by any oral,
written,
graphic, or electronic means. The services listed in divisions (Y)(2)(a) to (j) of this
section are not automatic data processing or computer services. (Z) "Highway transportation for hire" means the
transportation of personal property belonging to others for
consideration by any of the following: (1) The holder of a permit or certificate issued by this
state or the United States authorizing the holder to engage in
transportation of personal property belonging to others for
consideration over or on highways, roadways, streets, or any
similar public thoroughfare; (2) A person who engages in the transportation of personal
property belonging to others for consideration over or on
highways, roadways, streets, or any similar public thoroughfare
but who could not have engaged in such transportation on December
11, 1985, unless the person was the holder of a permit or
certificate of the types described in division (Z)(1) of this
section; (3) A person who leases a motor vehicle to and operates it
for a person described by division (Z)(1) or (2) of this section. (AA)(1) "Telecommunications service" means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. "Telecommunications service" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether the service is referred to as voice-over internet protocol service or is classified by the federal communications commission as enhanced or value-added. "Telecommunications service" does not include any of the following: (a) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a consumer where the consumer's primary purpose for the underlying transaction is the processed data or information;
(b) Installation or maintenance of wiring or equipment on a customer's premises;
(c) Tangible personal property; (d) Advertising, including directory advertising;
(e) Billing and collection services provided to third parties;
(f) Internet access service;
(g) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Radio and television audio and video programming services include, but are not limited to, cable service, as defined in 47 U.S.C. 522(6), and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 C.F.R. 20.3;
(i) Digital products delivered electronically, including software, music, video, reading materials, or ring tones.
(2) "Ancillary service" means a service that is associated with or incidental to the provision of telecommunications service, including conference bridging service, detailed telecommunications billing service, directory assistance, vertical service, and voice mail service. As used in this division:
(a) "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call, including providing a telephone number. "Conference bridging service" does not include telecommunications services used to reach the conference bridge.
(b) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.
(c) "Directory assistance" means an ancillary service of providing telephone number or address information.
(d) "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and manage multiple calls and call connections, including conference bridging service.
(e) "Voice mail service" means an ancillary service that enables the customer to store, send, or receive recorded messages. "Voice mail service" does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.
(3) "900 service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service, and which is typically marketed under the name "900" service and any subsequent numbers designated by the federal communications commission. "900 service" does not include the charge for collection services provided by the seller of the telecommunications service to the subscriber, or services or products sold by the subscriber to the subscriber's customer.
(4) "Prepaid calling service" means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units of dollars of which the number declines with use in a known amount.
(5) "Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile telecommunications service as well as other non-telecommunications services, including the download of digital products delivered electronically, and content and ancillary services, that must be paid for in advance and that is sold in predetermined units of dollars of which the number declines with use in a known amount.
(6) "Value-added non-voice data service" means a telecommunications service in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for a purpose other than transmission, conveyance, or routing.
(7) "Coin-operated telephone service" means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate.
(8) "Customer" has the same meaning as in section 5739.034 of the Revised Code. (BB) "Laundry and dry cleaning services" means removing
soil or dirt from towels, linens, articles of
clothing, or other fabric items that belong to others and supplying towels, linens, articles of clothing, or other fabric items. "Laundry and dry cleaning services" does not include the provision of self-service facilities for use by consumers to remove soil or dirt from towels, linens, articles of clothing, or other fabric items. (CC) "Magazines distributed as controlled circulation
publications" means magazines containing at least twenty-four
pages, at least twenty-five per cent editorial content, issued at
regular intervals four or more times a year, and circulated
without charge to the recipient, provided that such magazines are
not owned or controlled by individuals or business concerns which
conduct such publications as an auxiliary to, and essentially for
the advancement of the main business or calling of, those who own
or control them. (DD) "Landscaping and lawn care service" means the
services
of planting, seeding, sodding, removing, cutting,
trimming,
pruning, mulching, aerating, applying chemicals,
watering,
fertilizing, and providing similar services to
establish, promote,
or control the growth of trees, shrubs,
flowers, grass, ground
cover, and other flora, or otherwise
maintaining a lawn or
landscape grown or maintained by the owner
for ornamentation or
other nonagricultural purpose. However,
"landscaping and lawn
care service" does not include the
providing of such services by a
person who has less than five
thousand dollars in sales of such
services during the calendar
year. (EE) "Private investigation and security service" means
the
performance of any activity for which the provider of such
service
is required to be licensed pursuant to Chapter 4749. of
the
Revised Code, or would be required to be so licensed in
performing
such services in this state, and also includes the
services of
conducting polygraph examinations and of monitoring
or overseeing
the activities on or in, or the condition of, the
consumer's home,
business, or other facility by means of
electronic or similar
monitoring devices. "Private investigation
and security service"
does not include special duty services
provided by off-duty police
officers, deputy sheriffs, and other
peace officers regularly
employed by the state or a political
subdivision. (FF) "Information services" means providing conversation,
giving consultation or advice, playing or making a voice or other
recording, making or keeping a record of the number of callers,
and any other service provided to a consumer by means of a nine
hundred telephone call, except when the nine hundred telephone
call is the means by which the consumer makes a contribution to a
recognized charity. (GG) "Research and development" means designing, creating,
or formulating new or enhanced products, equipment, or
manufacturing processes, and also means conducting scientific or
technological inquiry and experimentation in the physical
sciences
with the goal of increasing scientific knowledge which
may reveal
the bases for new or enhanced products, equipment, or
manufacturing processes. (HH) "Qualified research and development equipment" means
capitalized tangible personal property, and leased personal
property that would be capitalized if purchased, used by a person
primarily to perform research and development. Tangible personal
property primarily used in testing, as defined in division (A)(4)
of section 5739.011 of the Revised Code, or used for recording or
storing test results, is not qualified research and development
equipment unless such property is primarily used by the consumer
in testing the product, equipment, or manufacturing process being
created, designed, or formulated by the consumer in the research
and development activity or in recording or storing such test
results. (II) "Building maintenance and janitorial service" means
cleaning the interior or exterior of a building and any tangible
personal property located therein or thereon, including any
services incidental to such cleaning for which no separate charge
is made. However, "building maintenance and janitorial service"
does not include the providing of such service by a person who
has
less than five thousand dollars in sales of such service
during
the calendar year. (JJ) "Employment service" means providing or supplying
personnel, on a temporary or long-term basis, to perform work or
labor under the supervision or control of another, when the
personnel so provided or supplied receive their wages, salary, or other
compensation from the provider or supplier of the employment service or from a third party that provided or supplied the personnel to the provider or supplier. "Employment
service" does not include: (1) Acting as a contractor or subcontractor, where the
personnel performing the work are not under the direct control of
the purchaser. (2) Medical and health care services. (3) Supplying personnel to a purchaser pursuant to a
contract of at least one year between the service provider and
the
purchaser that specifies that each employee covered under the
contract is assigned to the purchaser on a permanent basis. (4) Transactions between members of an affiliated group,
as
defined in division (B)(3)(e) of this section. (5) Transactions where the personnel so provided or supplied by a provider or supplier to a purchaser of an employment service are then provided or supplied by that purchaser to a third party as an employment service, except "employment service" does include the transaction between that purchaser and the third party. (KK) "Employment placement service" means locating or
finding employment for a person or finding or locating an
employee
to fill an available position. (LL) "Exterminating service" means eradicating or
attempting
to eradicate vermin infestations from a building or
structure, or
the area surrounding a building or structure, and
includes
activities to inspect, detect, or prevent vermin
infestation of a
building or structure. (MM) "Physical fitness facility service" means all
transactions by which a membership is granted, maintained, or
renewed, including initiation fees, membership dues, renewal
fees,
monthly minimum fees, and other similar fees and dues, by a
physical fitness facility such as an athletic club, health spa,
or
gymnasium, which entitles the member to use the facility for
physical exercise. (NN) "Recreation and sports club service" means all
transactions by which a membership is granted, maintained, or
renewed, including initiation fees, membership dues, renewal
fees,
monthly minimum fees, and other similar fees and dues, by a
recreation and sports club, which entitles the member to use the
facilities of the organization. "Recreation and sports club"
means an organization that has ownership of, or controls or
leases
on a continuing, long-term basis, the facilities used by
its
members and includes an aviation club, gun or shooting club,
yacht
club, card club, swimming club, tennis club, golf club,
country
club, riding club, amateur sports club, or similar
organization. (OO) "Livestock" means farm animals commonly raised for
food
or food production, and includes but is not limited to
cattle,
sheep, goats, swine, and poultry. "Livestock" does not
include
invertebrates, fish, amphibians, reptiles, horses,
domestic pets,
animals for use in laboratories or for exhibition,
or other
animals not commonly raised for food or food production. (PP) "Livestock structure" means a building or structure
used exclusively for the housing, raising, feeding, or sheltering
of livestock, and includes feed storage or handling structures
and
structures for livestock waste handling. (QQ) "Horticulture" means the growing, cultivation, and
production of flowers, fruits, herbs, vegetables, sod, mushrooms,
and nursery stock. As used in this division, "nursery stock" has
the same meaning as in section 927.51 of the Revised Code. (RR) "Horticulture structure" means a building or
structure
used exclusively for the commercial growing, raising,
or
overwintering of horticultural products, and includes the area
used for stocking, storing, and packing horticultural products
when done in conjunction with the production of those products. (SS) "Newspaper" means an unbound publication bearing a
title or
name that is regularly published, at least as frequently
as biweekly, and
distributed from a fixed place of business to the
public in a specific
geographic area, and that contains a
substantial amount of news matter of
international, national, or
local events of interest to the general public. (TT) "Professional
racing team" means a person that employs
at least twenty
full-time employees for the purpose of conducting
a motor
vehicle racing business for profit. The person must
conduct the
business with the purpose of racing one or more motor
racing
vehicles in at least ten competitive professional racing
events
each year that comprise all or part of a motor racing
series
sanctioned by one or more motor racing sanctioning
organizations. A "motor racing vehicle" means a vehicle for
which
the chassis, engine, and parts are designed
exclusively for motor
racing, and does not include a stock
or production model vehicle
that may be modified for use in
racing. For the purposes of this
division: (1) A "competitive professional racing event" is a motor
vehicle racing event sanctioned by one or more motor racing
sanctioning organizations, at which aggregate cash prizes in
excess of eight hundred thousand dollars are awarded to
the
competitors. (2) "Full-time employee" means an individual who is
employed
for consideration for thirty-five or more hours a week,
or who
renders any other standard of service generally accepted
by custom
or specified by contract as full-time
employment. (UU)(1) "Lease" or "rental" means any transfer of the
possession or control of tangible
personal property for a fixed or indefinite term, for consideration. "Lease" or "rental" includes future options to purchase or extend, and agreements described in 26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon the sale or disposition of the property. "Lease" or "rental" does not include: (a) A transfer of possession or control of tangible personal property under a security agreement or a deferred payment plan that requires the transfer of title upon completion of the required payments; (b) A transfer of possession or control of tangible personal property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price that does not exceed the greater of one hundred dollars or one per cent of the total required payments; (c) Providing tangible personal property along with an operator for a fixed or indefinite period of time, if the operator is necessary for the property to perform as designed. For purposes of this division, the operator must do more than maintain, inspect, or set-up the tangible personal property. (2) "Lease" and "rental," as defined in division (UU) of this section, shall not apply to leases or rentals that exist before June 26, 2003. (3) "Lease" and "rental" have the same meaning as in division (UU)(1) of this section regardless of whether a transaction is characterized as a lease or rental under generally accepted accounting principles, the Internal Revenue Code, Title XIII of the Revised Code, or other federal, state, or local laws. (VV) "Mobile telecommunications service" has the same
meaning as in the "Mobile Telecommunications Sourcing Act," Pub.
L.
No. 106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as
amended, and, on and after August 1, 2003, includes related fees and ancillary services, including universal service fees, detailed billing service, directory assistance, service initiation, voice mail service, and vertical services, such as caller ID and three-way calling. (WW) "Certified service provider" has the same meaning as in
section 5740.01 of the Revised Code. (XX) "Satellite broadcasting service" means the distribution or broadcasting of programming or services by satellite directly to the subscriber's receiving equipment without the use of ground receiving or distribution equipment, except the subscriber's receiving equipment or equipment used in the uplink process to the satellite, and includes all service and rental charges, premium channels or other special services, installation and repair service charges, and any other charges having any connection with the provision of the satellite broadcasting service. (YY) "Tangible personal property" means personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. For purposes of this chapter and Chapter 5741. of the Revised Code, "tangible personal property" includes motor vehicles, electricity, water, gas, steam, and prewritten computer software. (ZZ) "Direct mail" means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the consumer or at the direction of the consumer when the cost of the items are not billed directly to the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by the consumer to the direct mail vendor for inclusion in the package containing the printed material. "Direct mail" does not include multiple items of printed material delivered to a single address. (AAA) "Computer" means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions. (BBB) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. (CCC) "Delivered electronically" means delivery of computer software from the seller to the purchaser by means other than tangible storage media. (DDD) "Prewritten computer software" means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. "Prewritten computer software" includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the purchaser. If a person modifies or enhances computer software of which the person is not the author or creator, the person shall be deemed to be the author or creator only of such person's modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; provided, however, that where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for the modification or enhancement, the modification or enhancement shall not constitute prewritten computer software. (EEE)(1)
"Food"
means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Food" does not include alcoholic beverages, dietary supplements, soft drinks, or tobacco. (2) As used in division (EEE)(1) of this section: (a) "Alcoholic beverages" means beverages that are suitable for human consumption and contain one-half of one per cent or more of alcohol by volume. (b) "Dietary supplements" means any product, other than tobacco, that is intended to supplement the diet and that is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or, if not intended for ingestion in such a form, is not represented as conventional food for use as a sole item of a meal or of the diet; that is required to be labeled as a dietary supplement, identifiable by the "supplement facts" box found on the label, as required by 21 C.F.R. 101.36; and that contains one or more of the following dietary ingredients: (iii) An herb or other botanical; (v) A dietary substance for use by humans to supplement the diet by increasing the total dietary intake; (vi) A concentrate, metabolite, constituent, extract, or combination of any ingredient described in divisions (EEE)(2)(b)(i) to (v) of this section. (c) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or that contains greater than fifty per cent vegetable or fruit juice by volume. (d) "Tobacco" means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco. (FFF) "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food, dietary supplements, or alcoholic beverages that is recognized in the official United States pharmacopoeia, official homeopathic pharmacopoeia of the United States, or official national formulary, and supplements to them; is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or is intended to affect the structure or any function of the body. (GGG) "Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this state to issue a prescription. (HHH) "Durable medical equipment" means equipment, including repair and replacement parts for such equipment, that can withstand repeated use, is primarily and customarily used to serve a medical purpose, generally is not useful to a person in the absence of illness or injury, and is not worn in or on the body. "Durable medical equipment" does not include mobility enhancing equipment. (III) "Mobility enhancing equipment" means equipment, including repair and replacement parts for such equipment, that is primarily and customarily used to provide or increase the ability to move from one place to another and is appropriate for use either in a home or a motor vehicle, that is not generally used by persons with normal mobility, and that does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer. "Mobility enhancing equipment" does not include durable medical equipment. (JJJ) "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts for the device, worn on or in the human body to artificially
replace a missing portion of the body, prevent or correct physical deformity or malfunction, or support a weak or deformed portion of the body. As used in this division, "prosthetic device" does not include corrective eyeglasses, contact lenses, or dental prosthesis. (KKK)(1) "Fractional aircraft ownership program" means a program in which persons within an affiliated group sell and manage fractional ownership program aircraft, provided that at least one hundred airworthy aircraft are operated in the program and the program meets all of the following criteria: (a) Management services are provided by at least one program manager within an affiliated group on behalf of the fractional owners. (b) Each program aircraft is owned or possessed by at least one fractional owner. (c) Each fractional owner owns or possesses at least a one-sixteenth interest in at least one fixed-wing program aircraft. (d) A dry-lease aircraft interchange arrangement is in effect among all of the fractional owners. (e) Multi-year program agreements are in effect regarding the fractional ownership, management services, and dry-lease aircraft interchange arrangement aspects of the program. (2) As used in division (KKK)(1) of this section: (a) "Affiliated group" has the same meaning as in division (B)(3)(e) of this section.
(b) "Fractional owner" means a person that owns or possesses at least a one-sixteenth interest in a program aircraft and has entered into the agreements described in division (KKK)(1)(e) of this section. (c) "Fractional ownership program aircraft" or "program aircraft" means a turbojet aircraft that is owned or possessed by a fractional owner and that has been included in a dry-lease aircraft interchange arrangement and agreement under divisions (KKK)(1)(d) and (e) of this section, or an aircraft a program manager owns or possesses primarily for use in a fractional aircraft ownership program. (d) "Management services" means administrative and aviation support services furnished under a fractional aircraft ownership program in accordance with a management services agreement under division (KKK)(1)(e) of this section, and offered by the program manager to the fractional owners, including, at a minimum, the establishment and implementation of safety guidelines; the coordination of the scheduling of the program aircraft and crews; program aircraft maintenance; program aircraft insurance; crew training for crews employed, furnished, or contracted by the program manager or the fractional owner; the satisfaction of record-keeping requirements; and the development and use of an operations manual and a maintenance manual for the fractional aircraft ownership program. (e) "Program manager" means the person that offers management services to fractional owners pursuant to a management services agreement under division (KKK)(1)(e) of this section.
Section 2. That existing sections 135.353 and 5739.01 of the Revised Code are hereby repealed.
Section 3. The amendment by this act to division (JJ) of section 5739.01 of the Revised Code is essential to the implementation of a tax levy. Therefore, under Ohio Constitution, Article II, Section 1d, the amendment goes into effect January 1, 2007.
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