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Sub. S. B. No. 160 As Passed by the SenateAs Passed by the Senate
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Senators Schuring, Spada, Sawyer, Miller, D., Mumper, Fedor, Schuler, Stivers, Wilson, Harris
A BILL
To amend sections 5739.033, 5739.035, 5739.123,
5741.03, and 5741.05 and to enact section 5740.10
of the Revised Code to authorize retail vendors
with annual delivery sales in Ohio of less than
$500,000 to continue to use origin-based situsing
rules for determining the appropriate sales tax
jurisdiction in which a sale is taxable, to
authorize all retail vendors currently using
origin-based situsing to continue to do so if the
Tax Commissioner determines that the Streamlined
Sales and Use Tax Agreement does not allow
origin-based situsing by vendors with delivery
sales of less than $500,000, to authorize
out-of-state sellers with annual delivery sales in
Ohio of less than $500,000 to collect Ohio use
taxes at a single uniform rate if the Commissioner
makes that determination, and to provide for the
distribution of use tax collected at a single
uniform rate to counties and transit authorities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5739.033, 5739.035, 5739.123,
5741.03, and 5741.05 be amended and section 5740.10 of the Revised
Code be enacted to read as follows:
Sec. 5739.033. (A) Except as provided in division (B) of
this section, divisions (C) to (I) of this section apply to sales
made on and after May 1, 2006. Sales made before May 1, 2006, are
subject to section 5739.035 of the Revised Code. On and after
January 1, 2005, any January 1, 2008. Any vendor may previously
required to comply with divsions (C) to (I) of this section and
any vendor that irrevocably
elect elects to comply with divisions
(C) to (I) of this section for all
of the vendor's sales and
places of business in this state shall continue to source its
sales under those divisions.
The amount of tax due pursuant to sections
5739.02, 5739.021,
5739.023, and 5739.026 of the Revised Code is
the sum of the taxes
imposed pursuant to those sections at the
sourcing location of the
sale as determined under this
section or, if
applicable, under
division (C) of section 5739.031 or section 5739.034 of the
Revised Code, or at the situs of the sale as determined under
section 5739.035 of the Revised
Code. This section applies only to
a vendor's or seller's obligation to collect and remit sales taxes
under section 5739.02, 5739.021, 5739.023, or 5739.026 of the
Revised Code or use taxes under section 5741.02, 5741.021,
5741.022, or 5741.023 of the Revised Code. Division (A) of this
section does not apply in determining the jurisdiction for which
sellers are required to collect the use tax under section 5741.05
of the Revised Code. This section does not affect the obligation
of a consumer to remit use taxes on the storage, use, or other
consumption of tangible personal property or on the benefit
realized of any service provided, to the jurisdiction of that
storage, use, or consumption, or benefit realized.
(B)(1) As used in this division:
(a) "Delivery sale" means the taxable sale of tangible
personal property or a service that is received by a consumer, or
a donee designated by the consumer, in a taxing jurisdiction that
is not the taxing jurisdiction in which the vendor has a fixed
place of business.
(b) "Agreement" has the same meaning as in section 5740.01 of
the Revised Code.
(c) "Governing board" has the same meaning as in section
5740.02 of the Revised Code.
(2)(a) A If the tax commissioner does not make the
certification under section 5740.10 of the Revised Code, a vendor
that is not required by division (A) of this section to situs
sales
under divisions (C) to (I) of this section on the date of
the
commissioner's certification may continue after that date to
situs
its sales under section 5739.035 of the Revised Code unless
it is
required, under division (B)(5) of this section, to situs
its
sales under divisions (C) to (I) of this section.
(3) Except as otherwise provided in divisions (B)(4) and (5)
of this section, a vendor with total delivery sales within this
state in prior calendar
year 2005 that are years, beginning with
calendar year 2007, of less
than thirty million five hundred
thousand dollars may continue to
situs its sales under section
5739.035 of the Revised Code from
May 1, 2006, through April 30,
2007, except that, if the tax
commissioner does not enter a
determination in the commissioner's
journal under division
(B)(2)(b) of this section, those dates
shall be May 1, 2006,
through December 31, 2007.
(b) On or before February 1, 2007, the tax commissioner shall
determine whether certified service provider services are being
provided by the governing board of the streamlined sales and use
tax agreement for all delivery sales. If the commissioner
determines that such services are being so provided, the
commissioner shall enter the determination in the commissioner's
journal and shall provide notice of the determination on the
department of taxation's official internet web site. If the
commissioner makes such an entry in the journal, then a vendor
with total delivery sales in calendar year 2006 that are less than
five million dollars may continue to situs its sales under section
5739.035 of the Revised Code from May 1, 2007, through December
31, 2007.
(3) Beginning January 1, 2008, all vendors shall source their
sales under divisions (C) to (I) of this section.
(4) Once a vendor has total delivery sales that exceed the
dollar amount in division (B)(2)(a) or (b) of this section in this
state of five hundred thousand dollars or more for a prior
calendar
year, the vendor shall source its sales under divisions
(C) to (I)
of this section and shall continue to source its sales
under those
divisions, regardless of the amount of the vendor's
total delivery
sales in future years.
(5) A vendor permitted under division (B)(3) of this section
to situs its sales under section 5739.035 of the Revised Code that
fails to provide, absent a clerical error, the notices required
under division (I)(1) of
section 5739.035 of the Revised Code
shall situs all subsequent
sales as required under divisions (C)
to (I) of this section.
(C) Except
for sales, other than leases, of titled motor
vehicles, titled
watercraft, or titled outboard motors as provided
in section
5741.05 of the Revised Code, or as otherwise provided
in
this
section
and section
5739.034 of the
Revised Code,
all
sales
shall be sourced as follows:
(1) If the consumer or a
donee designated by the consumer
receives
tangible personal property
or a service at a vendor's
place of business, the sale
shall be sourced to that place of
business.
(2)
When the tangible personal property or
service is not
received at a vendor's place of business, the sale
shall be
sourced to
the location known to the vendor where
the consumer or
the donee designated by the consumer receives the
tangible
personal
property or service, including the location
indicated by
instructions for delivery to the consumer or the
consumer's donee.
(3) If divisions (C)(1) and (2) of this section do not
apply,
the sale shall be sourced to
the location indicated by an address
for the
consumer that is
available from the vendor's business
records
that are
maintained in the ordinary course of the
vendor's
business, when
use of that address does not constitute
bad faith.
(4) If divisions (C)(1), (2), and (3) of this section do
not
apply, the sale shall be sourced to
the location indicated by an
address for the
consumer obtained
during the consummation of the
sale, including
the address
associated with the consumer's payment
instrument, if
no other
address is available, when use of that
address does not
constitute
bad faith.
(5) If divisions (C)(1), (2), (3), and (4) of this section
do
not apply, including in the circumstance where the vendor is
without sufficient information to apply any of those divisions,
the sale shall be sourced to
the
address from which tangible
personal property was shipped,
or from
which the service was
provided, disregarding any
location
that
merely provided the
electronic transfer of the
property sold
or
service provided.
(6) As used in division (C) of this section, "receive"
means
taking possession of tangible personal property or making
first
use of a service. "Receive" does not include possession by
a
shipping company on behalf of a consumer.
(D)(1)(a) Notwithstanding divisions (C)(1) to (5) of this
section, a business consumer that is not a holder of
a direct
payment permit granted under section 5739.031 of the
Revised Code,
that purchases a digital good, computer software, except computer
software received in person by a business consumer at a vendor's
place of business, or a
service, and that knows at the time of
purchase that such digital good, software, or service will be
concurrently
available for use in more than one taxing
jurisdiction shall
deliver to the vendor in conjunction with its
purchase an exemption certificate claiming multiple
points of use,
or shall meet the requirements of division (D)(2) of this section.
On receipt of the exemption certificate claiming multiple points
of use, the vendor is relieved of its obligation to
collect, pay,
or remit the tax due, and the business consumer must
pay the tax
directly to the state.
(b) A business consumer that delivers the exemption
certificate claiming multiple points of use to a vendor may use
any reasonable, consistent, and uniform method of apportioning the
tax due on the digital good, computer software, or service that is
supported by the consumer's business records as they existed at
the
time of the sale. The business consumer shall report and pay
the appropriate tax to each jurisdiction where concurrent use
occurs. The tax due shall be calculated as if the apportioned
amount of the digital good, computer software, or service had been
delivered to each jurisdiction to which the sale is apportioned
under this division.
(c) The exemption certificate claiming multiple points of use
shall remain
in effect for all future sales by the vendor to the
business consumer until
it is revoked in writing by the business
consumer, except as to the business
consumer's specific
apportionment of a subsequent sale under
division (D)(1)(b) of
this section and the facts existing at the time of
the sale.
(2) When the vendor knows that a digital good, computer
software, or service sold will be concurrently available for use
by the business consumer in more than one jurisdiction, but the
business consumer does not provide an exemption certificate
claiming multiple points of use as required by division (D)(1) of
this section, the vendor may work with the business consumer to
produce the correct apportionment. Governed by the principles of
division (D)(1)(b) of this section, the vendor and business
consumer may use any reasonable, but consistent and uniform,
method of apportionment that is supported by the vendor's and
business consumer's books and records as they exist at the time
the sale is reported for purposes of the taxes levied under this
chapter. If the business consumer certifies to the accuracy of the
apportionment and the vendor accepts the certification, the vendor
shall collect and remit the tax accordingly. In the absence of bad
faith, the vendor is relieved of any further obligation to collect
tax on any transaction where the vendor has collected tax pursuant
to the information certified by the business consumer.
(3) When the vendor knows that the digital good, computer
software, or service will be concurrently available for use in
more than one jurisdiction, and the business consumer does not
have a direct pay permit and does not provide to the vendor an
exemption certificate claiming multiple points of use as required
in division (D)(1) of this section, or certification pursuant to
division (D)(2) of this section, the vendor shall collect and
remit the tax based on division (C) of this section.
(4) Nothing in this section shall limit a person's obligation
for sales or use tax to any state in which a digital good,
computer software, or service is concurrently available for use,
nor limit a person's ability under local, state, or federal law,
to claim a credit for sales or use taxes legally due and paid to
other jurisdictions.
(E) A person who holds a direct payment permit issued under
section 5739.031 of the Revised Code is not required to deliver an
exemption certificate claiming
multiple points of use to a vendor.
But such
permit holder shall comply with division (D)(2) of this
section in
apportioning the tax due on a digital good, computer
software, or a
service for use in business that will be
concurrently available for use in more than
one taxing
jurisdiction.
(F)(1) Notwithstanding divisions (C)(1) to (5) of this
section, the consumer of direct mail that is not a holder of a
direct payment permit shall provide to the vendor in conjunction
with the sale either an exemption certificate claiming direct mail
prescribed by the tax commissioner, or information to show the
jurisdictions to which the direct mail is delivered to recipients.
(2) Upon receipt of such exemption certificate, the vendor is
relieved of all obligations to collect, pay, or remit the
applicable tax and the consumer is obligated to pay that tax on a
direct pay basis. An exemption certificate claiming direct mail
shall remain in effect for all future sales of direct mail by the
vendor to the consumer until it is revoked in writing.
(3) Upon receipt of information from the consumer showing the
jurisdictions to which the direct mail is delivered to recipients,
the vendor shall collect the tax according to the delivery
information provided by the consumer. In the absence of bad faith,
the vendor is relieved of any further obligation to collect tax on
any transaction where the vendor has collected tax pursuant to the
delivery information provided by the consumer.
(4) If the consumer of direct mail does not have a direct
payment permit and does not provide the vendor with either an
exemption certificate claiming direct mail or delivery information
as required by division (F)(1) of this section, the vendor shall
collect the tax according to division (C)(5) of this section.
Nothing in division (F)(4) of this section shall limit a
consumer's obligation to pay sales or use tax to any state to
which the direct mail is delivered.
(5) If a consumer of direct mail provides the vendor with
documentation of direct payment authority, the consumer shall not
be required to provide an exemption certificate claiming direct
mail or delivery information to the vendor.
(G) If the vendor provides lodging to transient guests as
specified in division (B)(2) of section 5739.01 of the Revised
Code, the sale shall be sourced to
the
location where the lodging
is
located.
(H)(1) As used in this division and division (I) of this
section, "transportation equipment" means any of the following:
(a) Locomotives and railcars that are utilized for the
carriage of persons or property in interstate commerce.
(b) Trucks and truck-tractors with a gross vehicle weight
rating of greater than ten thousand pounds, trailers,
semi-trailers, or passenger buses that are registered through the
international registration plan and are operated under authority
of a carrier authorized and certificated by the United States
department of transportation or another federal authority to
engage in the carriage of persons or property in interstate
commerce.
(c) Aircraft that are operated by air carriers authorized and
certificated by the United States department of transportation or
another federal authority to engage in the carriage of persons or
property in interstate or foreign commerce.
(d) Containers designed for use on and component parts
attached to or secured on the items set forth in division
(H)(1)(a), (b), or (c) of this section.
(2) A sale, lease, or rental of transportation equipment
shall be sourced pursuant to division (C) of this section.
(I)(1) A lease or rental of tangible personal property that
does not require recurring periodic payments shall be sourced
pursuant to division (C) of this section.
(2) A lease or rental of tangible personal property that
requires recurring periodic payments shall be sourced as follows:
(a) In the case of a motor vehicle, other than a motor
vehicle that is transportation equipment, or an aircraft, other
than an aircraft that is transportation equipment, such lease or
rental shall be sourced as follows:
(i) An accelerated tax payment on a lease or rental taxed
pursuant to division (A)(2) of section 5739.02 of the Revised Code
shall be sourced to the primary property location at the time the
lease or rental is consummated. Any subsequent taxable charges on
the lease or rental shall be sourced to the primary property
location for the period in which the charges are incurred.
(ii) For a lease or rental taxed pursuant to division (A)(3)
of section 5739.02 of the Revised Code, each lease or rental
installment shall be sourced to the primary property location for
the period covered by the installment.
(b) In the case of a lease or rental of all other tangible
personal property, other than transportation equipment, such lease
or rental shall be sourced as follows:
(i) An accelerated tax payment on a lease or rental that is
taxed pursuant to division (A)(2) of section 5739.02 of the
Revised Code shall be sourced pursuant to division (C) of this
section at the time the lease or rental is consummated. Any
subsequent taxable charges on the lease or rental shall be sourced
to the primary property location for the period in which the
charges are incurred.
(ii) For a lease or rental that is taxed pursuant to division
(A)(3) of section 5739.02 of the Revised Code, the initial lease
or rental installment shall be sourced pursuant to division (C) of
this section. Each subsequent installment shall be sourced to the
primary property location for the period covered by the
installment.
(3) As used in division (I) of this section, "primary
property location" means an address for tangible personal property
provided by the lessee or renter that is available to the lessor
or owner from its records maintained in the ordinary course of
business, when use of that address does not constitute bad faith.
Sec. 5739.035. This section only applies to sales that are
required to may be sitused under this section pursuant to division
(A) or (B) of section 5739.033 of the Revised Code.
(A) Except as otherwise provided in this section,
the situs
of
all sales
is the
vendor's
place of business.
(1) If the consumer or the consumer's agent takes possession
of the
tangible personal property at a place of business of the
vendor
where the purchase contract or agreement was made,
the
situs of the sale
is
that place of business.
(2) If the consumer or the consumer's agent takes possession
of the
tangible personal property other than at a place of
business of
the vendor, or takes possession at a warehouse or
similar
facility of the vendor,
the situs of the sale is
the
vendor's
place of business where the purchase
contract or
agreement was
made or the purchase order was received.
(3) If the vendor provides a service specified in division
(B)(3)(a), (b), (c), (d), (n),
(o), (q), (r), or (s) of section
5739.01 or makes a sale specified in division (B)(8) of section
5739.01 of the
Revised
Code,
the situs of the sale is
the vendor's
place of
business
where the service is performed or the contract
or
agreement for
the service was made or the purchase order was
received.
(B) If the vendor is a transient vendor as specified in
division (B) of section 5739.17 of the Revised Code,
the situs of
the sale is
the
vendor's
temporary place of business or, if the
transient vendor
is the
lessor of titled motor vehicles, titled
watercraft, or
titled
outboard motors, at the location where the
lessee keeps the
leased
property.
(C) If the vendor makes sales of tangible personal
property
from a stock of goods carried in a motor vehicle, from
which the
purchaser makes selection and takes possession, or from
which the
vendor sells tangible personal property the quantity of
which has
not been determined prior to the time the purchaser
takes
possession,
the situs of the sale is
the location of the motor
vehicle when the sale is
made.
(D) If the vendor is a delivery vendor as specified in
division (D) of section 5739.17 of the Revised Code,
the situs of
the sale is
the place
where the
tangible personal property is
delivered, where the
leased
property
is used, or where the service
is performed or
received.
(E) If the vendor provides a service specified in division
(B)(3)(e), (g), (h), (j), (k), (l),
(m), (p), or (t) of section
5739.01 of
the Revised Code,
the situs of the sale is
the
location
of the
consumer where the
service is
performed or
received.
(F) If the vendor provides lodging to transient guests as
specified in division (B)(2) of section 5739.01 of the Revised
Code,
the situs of the sale is
the
location where the lodging is
located.
(G) If the vendor sells a warranty, maintenance or service
contract, or similar agreement as specified in division (B)(7) of
section 5739.01 of the Revised Code and the vendor is a delivery
vendor,
the situs of the sale is
the location of the consumer.
If
the vendor is not
a delivery
vendor,
the situs of the sale is
the
vendor's place of business
where the contract or agreement
was
made, unless the warranty or
contract is a component of the
sale
of a titled motor vehicle,
titled watercraft, or titled
outboard
motor, in which case
the
situs of the sale is
the county of
titling.
(H) Except as otherwise provided in this division, if the
vendor
sells a prepaid authorization number or a prepaid telephone
calling card,
the situs of the
sale is
the vendor's place of
business
and shall be
taxed
at the time of sale. If the vendor
sells
a prepaid
authorization
number or prepaid telephone calling
card
through a
telephone call,
electronic commerce, or any other
form
of remote
commerce,
the situs of the
sale is
the consumer's
shipping address, or, if there is no item
shipped, at the
consumer's billing address.
(I) Division (I) of this section applies only if the tax
commissioner makes the certification provided under section
5740.10 of the Revised Code.
(1) In each delivery sale by a vendor permitted to
situs its
sales under this section, the vendor shall clearly
indicate on
the invoice or other similar document provided to the
purchaser
at the time of the sale that the vendor is a vendor
permitted to
situs its sales under this section.
(2) A purchaser that receives tangible personal property or
services in a delivery sale from a vendor permitted to situs its
sales under this section may claim a refund of the tax the vendor
collected and remitted on the sale in an amount equal to the
excess of the tax collected and remitted over the tax that would
have been due if the sale had been sitused to the tax jurisdiction
in which the purchaser received the property or service.
A refund is authorized under this division only if the
invoice or other similar document provided to the purchaser at the
time of the sale includes the notice required under division
(I)(1) of this section.
Refunds shall be filed directly with the tax commissioner and
claimed in the manner prescribed by section
5739.07 of the
Revised Code.
(3) A purchaser of tangible personal property from a vendor
permitted to situs its sales under this section that removes the
property from the tax jurisdiction in which the resident received
the property is liable for additional tax in an amount equal to
the excess of the tax that would have been due on the sale if the
sale had been sitused to the tax jurisdiction to which the
purchaser removed the property over the tax that the vendor
collected and remitted on the sale.
(4) Nothing in this section relieves a person claiming to be
authorized to situs sales under this section, but not so
authorized, from liability for tax, penalty, interest, or
additional charges imposed under this chapter for failure to
collect the amount of tax lawfully due applying the situsing
provisions of divisions (C) to (I) of section 5739.033 of the
Revised Code.
(5) For the purposes of division (I) of this section,
"delivery sale" has the same meaning as in section 5739.033 of the
Revised Code, and "tax jurisdiction" has the same meaning as in
section 5739.24 of the Revised Code.
Sec. 5739.123. (A) As used in this section,
"destination-based sourcing requirements" means the manner in
which sales are required to be sourced under divisions (C) to (I)
of section 5739.033 of the Revised Code.
(B) A vendor who holds a license issued prior to May 1, 2006,
under division (A) of section 5739.17 of the Revised Code may
apply for temporary compensation to assist the vendor in complying
with the destination-based sourcing requirements for the first six
months those sourcing requirements become applicable to the vendor
under section 5739.033 of the Revised Code. The vendor shall file
the application in accordance with division (C) of this section.
The compensation shall be the actual amount of tax collected per
county for each month of the six-month period, not to exceed
twenty-five dollars per county per month, for sales of tangible
personal property delivered to each county in which the vendor
does not have a fixed place of business and does not, or is not
required to, hold a license issued under division (A) of section
5739.17 of the Revised Code for that business. Only amounts paid
by the vendor for which the vendor is eligible for a discount
under division (B) of section 5739.12 of the Revised Code and that
are shown on returns filed during that six-month period shall be
considered in calculating the compensation. In no event shall a
vendor receive compensation that exceeds its total cost of
complying with the destination-based sourcing requirements. For
purposes of the six-month compensation period, a partial month
shall be considered a month.
(C) A vendor that applies for compensation under this section
shall file an application with the tax commissioner on a form
prescribed by the commissioner. The application shall be filed
within sixty days after the end of the reporting period that
includes the last day of the last month of the six-month period
for which the vendor is requesting compensation. The commissioner
shall determine the amount of compensation to which the vendor is
entitled, and if that amount is equal to or greater than the
amount claimed on the application, the commissioner shall certify
that amount to the director of budget and management and the
treasurer of state for payment from the general revenue fund. If
the commissioner determines that the amount of compensation to
which the vendor is entitled is less than the amount claimed on
the vendor's application, the commissioner shall proceed in
accordance with section 5703.70 of the Revised Code.
(D) The compensation provided under this section shall not
reduce the amount required to be returned to counties and transit
authorities under section 5739.21 of the Revised Code.
Sec. 5740.10. (A) As used in this section, "delivery sale"
has the same meaning as in section 5739.033 of the Revised Code.
(B) It is the intent of the General Assembly for this state
to become a full member in the streamlined sales and use tax
agreement to enhance collection of the taxes imposed under
Chapters 5739. and 5741. of the Revised Code by remote multi-state
sellers. This state's participation has been jeopardized, however,
because the agreement does not resolve issues relating to the
situsing of certain sales and because of the impact the agreement
has on businesses located within and outside this state that have
annual delivery sales in this state of less than five hundred
thousand dollars.
If the tax commissioner determines, on or before October 20,
2007, that the agreement has been amended or interpreted by the
streamlined sales tax governing board to allow, beginning January
1, 2008, a vendor with total
annual delivery sales within this
state of less than five hundred thousand dollars in a prior
calendar year, beginning with calendar year 2007,
to situs its
sales under section 5739.035 of the Revised Code, the
commissioner shall certify that determination by journal entry on
or before that date, shall provide notice of the determination on
the department of taxation's web site, and shall notify vendors
and sellers the commissioner reasonably believes to be affected by
the certification.
Sec. 5741.03. (A) Four and two-tenths One hundred per cent
of all
money deposited into the state treasury under sections
5741.01 to
5741.22 of the Revised Code that is not required to be
distributed as provided in division (B) or (C) of this section
shall be
credited to the local government fund for distribution in
accordance with section 5747.50 of the Revised Code, six-tenths of
one per
cent shall be credited to the local
government revenue
assistance fund for distribution in accordance with section
5747.61 of the Revised Code, and ninety-five and two-tenths per
cent shall be
credited to the general revenue fund.
(B) In any case where any county or transit authority has
levied a tax or taxes pursuant to section 5741.021, 5741.022, or
5741.023 of the Revised Code, the tax commissioner shall, within
forty-five days after the end of each month, determine and certify
to the director of budget and management the amount of the
proceeds of such tax or taxes
from billings and assessments
received during that month, or shown on tax returns or reports
filed during that month, to be returned to the county or transit
authority levying the tax or taxes, which amounts shall be
determined in the manner provided in section 5739.21 of the
Revised Code. The director of budget and management shall
transfer, from the same funds and in the same proportions
specified in division (A) of this section general revenue fund, to
the permissive tax
distribution fund created by division (B)(1) of
section 4301.423
of the Revised Code and to the local sales tax
administrative
fund created by division (B)(C) of section 5739.21
of the Revised
Code, the amounts certified by the tax
commissioner. The tax
commissioner shall then, on or before the
twentieth day of the
month in which such certification is made,
provide for payment of
such respective amounts to the county
treasurer or to the fiscal
officer of the transit authority
levying the tax or taxes. The
amount transferred to the local
sales tax administrative fund is
for use by the tax commissioner
in defraying costs the
commissioner incurs in administering such
taxes levied by a county or
transit authority.
(C) Of the revenue deposited into the state treasury from
taxes paid under division (B) of section 5741.05 of the Revised
Code, a percentage shall be distributed each fiscal year to all
counties and transit authorities that levy a tax under section
5739.021, 5739.023, or 5739.026 of the Revised Code. The
percentage to be distributed each fiscal year shall be computed by
dividing the amount described in division (C)(1) by the amount
described in division (C)(2) of this section:
(1) The total sales and use tax revenue distributed to
counties and transit authorities in the calendar year that ended
in the preceding fiscal year;
(2) The sum of the total sales and use tax revenue
distributed to such counties and transit authorities in that
calendar year plus the total revenue collected in that calendar
year from the taxes levied under sections 5739.02 and 5741.02 of
the Revised Code.
(D) Each county and transit authority shall receive a
quarterly
distribution each fiscal year from the revenue to be
distributed
as provided in division (C) of this section. The
amount of the
distribution for each such county and transit
authority shall
equal one-fourth of a percentage of the revenue
to be distributed in the fiscal
year under that division. The
percentage shall be computed by
dividing the amount described in
division (D)(1) by the amount
described in division (D)(2) of
this section:
(1) The total sales and use tax revenue distributed to the
county or transit authority under division (B) of section 5739.21
of the Revised Code in the calendar year that ended in the
preceding fiscal year;
(2) The total sales and use tax revenue distributed to all
counties and transit authorities under division (B) of section
5739.21 of the Revised Code in that calendar year.
Sec. 5741.05. (A) Beginning January 1, 2005 Except as
provided in division (B) of this section, a seller that collects
the tax levied by
sections 5741.02, 5741.021, 5741.022, or
5741.023 of the Revised
Code on transactions, other than sales of
titled motor vehicles,
titled watercraft, or titled outboard
motors, shall determine
under
section 5739.033 or 5739.034 of the
Revised Code
the
jurisdiction for which to
collect the tax. A
vendor or seller of
motor vehicles, watercraft, or
outboard motors
required to be
titled in this state shall collect the tax levied
by section
5739.02 or
5741.02 of the Revised Code and the
additional taxes
levied by
division (A)(1) of section 5741.021,
division (A)(1) of
section
5741.022, and division (A)(1) of
section 5741.023 of the
Revised
Code for the consumer's county of
residence as provided in
section 1548.06 and division (B) of
section 4505.06 of the Revised
Code.
(B)(1) Divisions (B) and (C) of this section apply only if
the tax commissioner makes the certification under section 5740.10
of the Revised Code.
(2) For the purposes of this division and division (C) of
this section, "delivery sale" has the same meaning as in section
5739.033 of the Revised Code, and "tax jurisdiction" has the same
meaning as in section 5739.24 of the Revised Code.
(3) Except as otherwise provided in division (B)(4) of this
section, and notwithstanding sections 5741.02, 5741.021, 5741.022,
and 5741.023 of the Revised Code, beginning January 1, 2008, a
seller with total delivery
sales in this state in calendar year
2007 and each calendar year
thereafter of less than five hundred
thousand dollars may elect to
collect the tax due under this
chapter at a rate equal to the sum
of the tax levied under
section 5741.02 of the Revised Code and
the lowest combined rate
of tax levied in any tax jurisdiction in
this state under
sections 5741.021, 5741.022, and 5741.023 of the
Revised Code.
(4) Once a seller has total delivery sales in this state of
five hundred thousand dollars or more for a prior calendar year,
the
seller shall source its sales pursuant to division (A) of
this
section regardless of the amount of the seller's total
delivery
sales in future years.
(C)(1) In each sale by a seller permitted to collect use tax
under division (B) of this section, the seller shall clearly
indicate on each invoice or other similar document provided to the
purchaser at the time of the sale that the seller is authorized to
collect use tax at the rate prescribed in division (B)(3) of this
section.
(2) If a purchaser purchases tangible personal property from
a seller permitted to collect use tax pursuant to division (B) of
this section and pays the tax due under that division to the
seller, no assessment may be made against the purchaser for
additional tax due under section 5741.021, 5741.022, or 5741.023
of the Revised Code unless the purchaser subsequently removes the
property from the tax jurisdiction in which the resident received
the property to another tax jurisdiction with a higher tax rate.
(3) Nothing in this section relieves a person that claims to
be authorized to collect the tax as provided in division (B) of
this section, but that is not so authorized, from liability for
tax, penalties, interest, or additional charges imposed under this
chapter for failure to collect the amount of tax lawfully due
applying the situsing provisions of division (A) of this section.
(D) A vendor or seller
is not responsible for collecting or
remitting additional tax if a
consumer subsequently stores, uses,
or consumes the tangible
personal property or service in another
jurisdiction with a rate
of tax imposed by sections 5741.02,
5741.021, 5741.022, or
5741.023 of the Revised Code that is higher
than the amount
collected by the vendor or seller pursuant to
Chapter 5739. or
5741. of the Revised Code.
Section 2. That existing sections 5739.033, 5739.035,
5739.123, 5741.03, and 5741.05 of the Revised Code are hereby
repealed.
Section 3. Section 5739.035 of the Revised Code is presented
in
this act as a composite of the section as amended by both Am.
Sub. H.B. 66 and Am. Sub. S.B. 26 of
the 126th General Assembly.
The General Assembly, applying the
principle stated in division
(B) of section 1.52 of the Revised
Code that amendments are to be
harmonized if reasonably capable of
simultaneous operation, finds
that the composite is the resulting
version of the section in
effect prior to the effective date of
the section as presented in
this act.
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