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H. B. No. 508 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
To amend sections 131.02, 1701.86, 1702.47, 3769.28,
4301.42, 4303.33, 4928.23, 4928.2314, 5703.261,
5703.37, 5703.47, 5727.84, 5727.86, 5731.39,
5733.26, 5735.02, 5735.03, 5735.35, 5739.01,
5739.02, 5739.021, 5739.023, 5739.026, 5739.04,
5739.17, 5741.08, 5743.20, 5743.61, 5743.66,
5747.082, 5747.11, 5751.01, 5751.011, 5751.012,
5751.03, 5751.04, 5751.05, 5751.051, 5751.08,
5751.12, 5751.20, 5751.22, and 5753.03, to enact
section 5703.061, and to repeal section 5751.032
of the Revised Code to make changes to the laws
governing the assessment, levy, and collection of
taxes in the state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 131.02, 1701.86, 1702.47, 3769.28,
4301.42, 4303.33, 4928.23, 4928.2314, 5703.261, 5703.37, 5703.47,
5727.84, 5727.86, 5731.39, 5733.26, 5735.02, 5735.03, 5735.35,
5739.01, 5739.02, 5739.021, 5739.023, 5739.026, 5739.04, 5739.17,
5741.08, 5743.20, 5743.61, 5743.66, 5747.082, 5747.11, 5751.01,
5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051, 5751.08,
5751.12, 5751.20, 5751.22, and 5753.03 be amended and section
5703.061 of the Revised Code be enacted to read as follows:
Sec. 131.02. (A) Except as otherwise provided in section
4123.37, section 5703.061, and division (K) of section 4123.511 of
the Revised Code, whenever any amount is payable to the state, the
officer, employee, or agent responsible for administering the law
under which the amount is payable shall immediately proceed to
collect the amount or cause the amount to be collected and shall
pay the amount into the state treasury or into the appropriate
custodial fund in the manner set forth pursuant to section 113.08
of the Revised Code. Except as otherwise provided in this
division, if the amount is not paid within forty-five days after
payment is due, the officer, employee, or agent shall certify the
amount due to the attorney general, in the form and manner
prescribed by the attorney general, and notify the director of
budget and management thereof. In the case of an amount payable by
a student enrolled in a state institution of higher education, the
amount shall be certified within the later of forty-five days
after the amount is due or the tenth day after the beginning of
the next academic semester, quarter, or other session following
the session for which the payment is payable. The attorney general
may assess the collection cost to the amount certified in such
manner and amount as prescribed by the attorney general. If an
amount payable to a political subdivision is past due, the
political subdivision may, with the approval of the attorney
general, certify the amount to the attorney general pursuant to
this section.
For the purposes of this section, the attorney general and
the officer, employee, or agent responsible for administering the
law under which the amount is payable shall agree on the time a
payment is due, and that agreed upon time shall be one of the
following times:
(1) If a law, including an administrative rule, of this state
prescribes the time a payment is required to be made or reported,
when the payment is required by that law to be paid or reported.
(2) If the payment is for services rendered, when the
rendering of the services is completed.
(3) If the payment is reimbursement for a loss, when the loss
is incurred.
(4) In the case of a fine or penalty for which a law or
administrative rule does not prescribe a time for payment, when
the fine or penalty is first assessed.
(5) If the payment arises from a legal finding, judgment, or
adjudication order, when the finding, judgment, or order is
rendered or issued.
(6) If the payment arises from an overpayment of money by the
state to another person, when the overpayment is discovered.
(7) The date on which the amount for which an individual is
personally liable under section 5735.35, section 5739.33, or
division (G) of section 5747.07 of the Revised Code is determined.
(8) Upon proof of claim being filed in a bankruptcy case.
(9) Any other appropriate time determined by the attorney
general and the officer, employee, or agent responsible for
administering the law under which the amount is payable on the
basis of statutory requirements or ordinary business processes of
the state agency to which the payment is owed.
(B)(1) The attorney general shall give immediate notice by
mail or otherwise to the party indebted of the nature and amount
of the indebtedness.
(2) If the amount payable to this state arises from a tax
levied under Chapter 5733., 5739., 5741., 5747., or 5751. of the
Revised Code, the notice also shall specify all of the following:
(a) The assessment or case number;
(b) The tax pursuant to which the assessment is made;
(c) The reason for the liability, including, if applicable,
that a penalty or interest is due;
(d) An explanation of how and when interest will be added to
the amount assessed;
(e) That the attorney general and tax commissioner, acting
together, have the authority, but are not required, to compromise
the claim and accept payment over a reasonable time, if such
actions are in the best interest of the state.
(C) The attorney general shall collect the claim or secure a
judgment and issue an execution for its collection.
(D) Each claim shall bear interest, from the day on which the
claim became due, at the rate per annum required by section
5703.47 of the Revised Code.
(E) The attorney general and the chief officer of the agency
reporting a claim, acting together, may do any of the following if
such action is in the best interests of the state:
(1) Compromise the claim;
(2) Extend for a reasonable period the time for payment of
the claim by agreeing to accept monthly or other periodic
payments. The agreement may require security for payment of the
claim.
(3) Add fees to recover the cost of processing checks or
other draft instruments returned for insufficient funds and the
cost of providing electronic payment options.
(F)(1) Except as provided in division (F)(2) of this section,
if the attorney general finds, after investigation, that any claim
due and owing to the state is uncollectible, the attorney general,
with the consent of the chief officer of the agency reporting the
claim, may do the following:
(a) Sell, convey, or otherwise transfer the claim to one or
more private entities for collection;
(b) Cancel the claim or cause it to be canceled.
(2) The attorney general shall cancel or cause to be canceled
an unsatisfied claim on the date that is forty years after the
date the claim is certified.
(3) No initial action shall be commenced to collect any tax
payable to the state that is administered by the tax commissioner,
whether or not such tax is subject to division (B) of this
section, or any penalty, interest, or additional charge on such
tax, after the expiration of the period ending on the later of the
dates specified in divisions (F)(3)(a) and (b) of this section,
provided that such period shall be extended by the period of any
stay to such collection or by any other period to which the
parties mutually agree. If the initial action in aid of execution
is commenced before the later of the dates specified in divisions
(F)(3)(a) and (b) of this section, any and all subsequent actions
may be pursued in aid of execution of judgment for as long as the
debt exists.
(a) Seven years after the assessment of the tax, penalty,
interest, or additional charge is issued.
(b) Four years after the assessment of the tax, penalty,
interest, or additional charge becomes final. For the purposes of
division (F)(3)(b) of this section, the assessment becomes final
at the latest of the following: upon expiration of the period to
petition for reassessment, or if applicable, to appeal a final
determination of the commissioner or decision of the board of tax
appeals or a court, or, if applicable, upon decision of the United
States supreme court.
For the purposes of division (F)(3) of this section, an
initial action to collect a tax debt is commenced at the time when
any action, including any action in aid of execution on a
judgment, commences after a certified copy of the tax
commissioner's entry making an assessment final has been filed in
the office of the clerk of court of common pleas in the county in
which the taxpayer resides or has its principal place of business
in this state, or in the office of the clerk of court of common
pleas of Franklin county, as provided in section 5739.13, 5741.14,
5747.13, or 5751.09 of the Revised Code or in any other applicable
law requiring such a filing. If an assessment has not been issued
and there is no time limitation on the issuance of an assessment
under applicable law, an action to collect a tax debt commences
when the action is filed in the courts of this state to collect
the liability.
(4) If information contained in a claim that is sold,
conveyed, or transferred to a private entity pursuant to this
section is confidential pursuant to federal law or a section of
the Revised Code that implements a federal law governing
confidentiality, such information remains subject to that law
during and following the sale, conveyance, or transfer.
Sec. 1701.86. (A) A corporation may be dissolved voluntarily
in the manner provided in this section, provided the provisions of
Chapter 1704. of the Revised Code do not prevent the dissolution
from being effected.
(B) A resolution of dissolution for a corporation shall set
forth:
(1) That the corporation elects to be dissolved;
(2) Any additional provision considered necessary with
respect to the proposed dissolution and winding up.
(C) If an initial stated capital is not set forth in the
articles then before the corporation begins business, or if an
initial stated capital is set forth in the articles then before
subscriptions to shares shall have been received in the amount of
that initial stated capital, the incorporators or a majority of
them may adopt, by a writing signed by them, a resolution of
dissolution.
(D) The directors may adopt a resolution of dissolution in
the following cases:
(1) When the corporation has been adjudged bankrupt or has
made a general assignment for the benefit of creditors;
(2) By leave of the court, when a receiver has been appointed
in a general creditors' suit or in any suit in which the affairs
of the corporation are to be wound up;
(3) When substantially all of the assets have been sold at
judicial sale or otherwise;
(4) When the articles have been canceled for failure to file
annual franchise or excise tax returns or for failure to pay
franchise or excise taxes and the corporation has not been
reinstated or does not desire to be reinstated;
(5) When the period of existence of the corporation specified
in its articles has expired.
(E) The shareholders at a meeting held for such purpose may
adopt a resolution of dissolution by the affirmative vote of the
holders of shares entitling them to exercise two-thirds of the
voting power of the corporation on such proposal or, if the
articles provide or permit, by the affirmative vote of a greater
or lesser proportion, though less than a majority, of such voting
power, and by such affirmative vote of the holders of shares of
any particular class as is required by the articles. Notice of the
meeting of the shareholders shall be given to all the shareholders
whether or not entitled to vote at it.
(F) Upon the adoption of a resolution of dissolution, a
certificate shall be prepared, on a form prescribed by the
secretary of state, setting forth the following:
(1) The name of the corporation;
(2) A statement that a resolution of dissolution has been
adopted;
(3) A statement of the manner of adoption of such resolution,
and, in the case of its adoption by the incorporators or
directors, a statement of the basis for such adoption;
(4) The place in this state where its principal office is or
is to be located;
(5) The names and addresses of its directors and officers,
unless the resolution of dissolution is adopted by the
incorporators, in which event the names and addresses of the
incorporators shall be set forth in the certificate;
(6) The name and address of its statutory agent;
(7) The date of dissolution, if other than the filing date.
(G) Such certificate shall be signed as follows:
(1) When the resolution of dissolution is adopted by the
incorporators or a majority of them, the certificate shall be
signed by not less than a majority of them;
(2) When the resolution is adopted by the directors or by the
shareholders, the certificate shall be signed by any authorized
officer, unless the officer fails to execute and file such
certificate within thirty days after the adoption of the
resolution or upon any date specified in the resolution as the
date upon which such certificate is to be filed or upon the
expiration of any period specified in the resolution as the period
within which such certificate is to be filed, whichever is latest,
in which event the certificate of dissolution may be signed by any
three shareholders and shall set forth a statement that the
persons signing the certificate are shareholders and are filing
the certificate because of the failure of the officers to do so.
(H) A certificate of dissolution, filed with the secretary of
state, shall be accompanied by:
(1) An affidavit of one or more of the persons executing the
certificate of dissolution or of an officer of the corporation
containing a statement of the counties, if any, in this state in
which the corporation has personal property or a statement that
the corporation is of a type required to pay personal property
taxes to state authorities only;
(2) A receipt, certificate, or other evidence showing that
the
payment of all franchise, sales, use, and highway use taxes
accruing up to the date of such filing or, if applicable, to the
later date specified in the certificate of corporation has paid
all taxes imposed under the laws of this state that are or will be
due from the corporation on the date of the dissolution in
accordance with division (F) of this section, or that such payment
has been adequately guaranteed;
(3) A receipt, certificate, or other evidence showing the
payment of all personal property taxes accruing up to the date of
such filing or, if applicable, to the later date specified in the
certificate of dissolution in accordance with division (F) of this
section, or that such payment has been adequately guaranteed;
(4)(2) A receipt, certificate, or other evidence from the
director of job and family services showing that all contributions
due from the corporation as an employer have been paid, or that
such payment has been adequately guaranteed, or that the
corporation is not subject to such contributions;
(5)(3) A receipt, certificate, or other evidence from the
bureau of workers' compensation showing that all premiums due from
the corporation as an employer have been paid, or that such
payment has been adequately guaranteed, or that the corporation is
not subject to such premium payments;
(6)(4) In lieu of the receipt, certificate, or other evidence
described in division (H)(1), (2), or (3), (4), or (5) of this
section, an affidavit of one or more persons executing the
certificate of dissolution or of an officer of the corporation
containing a statement of the date upon which the particular
department, agency, or authority was advised in writing of the
scheduled effective date of the dissolution and was advised in
writing of the acknowledgment by the corporation of the
applicability of the provisions of section 1701.95 of the Revised
Code.
(I) Upon the filing of a certificate of dissolution and such
accompanying documents or on a later date specified in the
certificate that is not more than ninety days after the filing,
the corporation shall be dissolved.
Sec. 1702.47. (A) A corporation may be dissolved voluntarily
in the manner provided in this section.
(B) A resolution of dissolution for a corporation shall set
forth:
(1) That the corporation elects to be dissolved;
(2) Any additional provision deemed necessary with respect to
the proposed dissolution and winding up.
(C) The directors may adopt a resolution of dissolution in
the following cases:
(1) When the corporation has been adjudged bankrupt or has
made a general assignment for the benefit of creditors;
(2) By leave of the court, when a receiver has been appointed
in a general creditors' suit or in any suit in which the affairs
of the corporation are to be wound up;
(3) When substantially all of the assets have been sold at
judicial sale or otherwise;
(4) When the period of existence of the corporation specified
in its articles has expired.
(D)(1) The voting members at a meeting held for that purpose
may adopt a resolution of dissolution by the affirmative vote of a
majority of the voting members present in person or, if permitted,
by mail, by proxy, or by the use of authorized communications
equipment, if a quorum is present or, if the articles or the
regulations provide or permit, by the affirmative vote of a
greater or lesser proportion or number of the voting members, and
by the affirmative vote of the voting members or the affirmative
vote of the voting members of any particular class that is
required by the articles or the regulations. Notice of the meeting
of the members shall be sent to all the members who would be
entitled to vote at the meeting by mail, overnight delivery
service, or any authorized communications equipment.
(2) For purposes of division (D)(1) of this section,
participation by a voting member at a meeting through the use of
any of the means of communication described in that division
constitutes presence in person of that voting member at the
meeting for purposes of determining a quorum.
(E) Upon the adoption of a resolution of dissolution, a
certificate shall be prepared, on a form prescribed by the
secretary of state, setting forth the following:
(1) The name of the corporation;
(2) A statement that a resolution of dissolution has been
adopted;
(3) A statement of the manner of adoption of that resolution,
and, in the case of its adoption by the directors, a statement of
the basis for the adoption;
(4) The place in this state where its principal office is or
is to be located;
(5) The names and addresses of its directors and officers;
(6) The name and address of its statutory agent;
(7) The date of dissolution, if other than the filing date.
(F) The certificate described in division (E) of this section
shall be signed by any authorized officer, unless the officer
fails to execute and file the certificate within thirty days after
the adoption of the resolution, or upon any date specified in the
resolution as the date upon which the certificate is to be filed,
or upon the expiration of any period specified in the resolution
as the period within which the certificate is to be filed,
whichever is latest, in which event the certificate of dissolution
may be signed by any three voting members and shall set forth a
statement that the persons signing the certificate are voting
members and are filing the certificate because of the failure of
the officers to do so.
(G) A certificate of dissolution, filed with the secretary of
state, shall be accompanied by:
(1) An affidavit of one or more of the persons executing the
certificate of dissolution or of an officer of the corporation
containing a statement of the counties, if any, in this state in
which the corporation has personal property subject to personal
property taxes or a statement that the corporation is of a type
required to pay personal property taxes to state authorities only;
(2) A receipt, certificate, or other evidence showing the
payment of all personal property taxes accruing up to the date of
such filing or, if applicable, to the later date specified in the
certificate of dissolution in accordance with division (E) of this
section, unless the affidavit provided for in division (G)(1) of
this section states that the corporation has in this state no
personal property subject to personal property taxes;
(3) A receipt, certificate, or other evidence from the
director of job and family services showing that all contributions
due from the corporation as an employer have been paid, that such
payment has been adequately guaranteed, or that the corporation is
not subject to such contributions;
(4)(2) A receipt, certificate, or other evidence showing that
the
payment of all sales, use, and highway use taxes accruing up
to the date of such filing or, if applicable, to the later date
specified in the certificate of corporation has paid all taxes
imposed under the laws of this state that are or will be due from
the corporation on the date of the dissolution in accordance with
division (E) of this section, or that such payment has been
adequately guaranteed;
(5)(3) In lieu of the receipt, certificate, or other evidence
described in division (G)(1) or (2), (3), or (4) of this section,
an affidavit of one or more of the persons executing the
certificate of dissolution or of an officer of the corporation
containing a statement of the date upon which the particular
department, agency, or authority was advised in writing of the
scheduled effective date of the dissolution and was advised in
writing of the acknowledgement by the corporation of the
applicability of section 1702.55 of the Revised Code.
(H) Upon the filing of a certificate of dissolution and those
accompanying documents or on a later date specified in the
certificate that is not more than ninety days after the filing,
the corporation shall be dissolved.
Sec. 3769.28. The tax commissioner shall collect from each
permit holder who conducts a pari-mutuel system of wagering where
the wagering is less than five million dollars a sum of money
equal to one-tenth of one per cent of the total amount wagered and
where the wagering is five million dollars or more a sum of money
equal to fifteen hundredths of one per cent of the total amount
wagered during any horse-racing meeting for the purpose of
providing operating revenue for the political subdivisions wherein
such meetings are held. Such moneys shall be collected by the
commissioner within Within ten days after the close of such a
meeting and shall be sent back to, the permit holder who paid the
tax. Such permit holder shall prepare and transmit to the tax
commissioner a final report showing the total amount wagered
during the horse-racing meeting and any other information required
by the commissioner relative to the tax levied by this section.
The final report shall be signed by the permit holder or an
authorized agent of the permit holder. The commissioner shall
prescribe the form of the final report.
The commissioner shall collect the tax due under this section
on amounts wagered during a horse-racing meeting within ten days
after the close of the meeting. The commissioner shall then
immediately forward the
moneys amount collected to the chief
fiscal officers of the municipal corporations or townships in
which such horse-racing meeting took place and in which any such
facilities or accessory uses therefor were located. Such moneys
The amount collected shall be divided equally between the
municipal corporations or townships in which such horse-racing
meeting took place and in which any facilities or accessory uses
therefor were located. Such municipal corporations or townships
may distribute a portion of the moneys so received to any
adjoining political subdivision which incurs increased expenses
because of such horse-racing meeting.
This section shall not apply to any agricultural society
which holds a horse-racing permit.
The amount collected under this section from any one permit
holder shall not exceed fifteen thousand dollars from any one
horse-racing meeting in any calendar year.
Sec. 4301.42. For the purpose of providing revenue for the
support of the state, a tax is hereby levied on the sale of beer
in sealed bottles and cans having twelve ounces or less of liquid
content, at the rate of fourteen one-hundredths of one cent on
each ounce of liquid content or fractional part of each ounce of
liquid content, and on such containers in excess of twelve ounces,
at the rate of eighty-four one-hundredths of one cent on each six
ounces of liquid content or fractional part of each six ounces of
liquid content. Sections 4307.01 to 4307.12 of the Revised Code
apply in the administration of that tax. Manufacturers, bottlers,
and canners of and wholesale dealers in beer, wholesale dealers in
beer, and S permit holders have the duty to pay the tax imposed by
this section and are entitled to the privileges in the manner
provided in section 4303.33 of the Revised Code.
Sec. 4303.33. (A) Every A-1 permit holder in this state,
every bottler, importer, wholesale dealer, broker, producer, or
manufacturer of beer outside this state and within the United
States, and every B-1 permit holder and importer importing beer
from any manufacturer, bottler, person, or group of persons
however organized outside the United States for sale or
distribution for sale in this state, on or before the eighteenth
day of each month, shall make and file with the tax commissioner
upon a form prescribed by the tax commissioner an advance tax
payment in an amount estimated to equal the taxpayer's tax
liability for the month in which the advance tax payment is made.
If the advance tax payment credits claimed on the report are for
advance tax payments received by the tax commissioner on or before
the eighteenth day of the month covered by the report, the
taxpayer is entitled to an additional credit of three per cent of
the advance tax payment and a discount of three per cent shall be
allowed the taxpayer at the time of filing the report if filed as
provided in division (B) of this section on any amount by which
the tax liability reflected in the report exceeds the advance tax
payment estimate by not more than ten per cent. The additional
three per cent credit and three per cent discount shall be in
consideration for advancing the payment of the tax and other
services performed by the permit holder and other taxpayers in the
collection of the tax.
"Advance tax payment credit" means credit for payments made
by an A-1 or B-1 permit holder and any other persons during the
period covered by a report which was made in anticipation of the
tax liability required to be reported on that report.
"Tax liability" as used in division (A) of this section means
the total gross tax liability of an A-1 or B-1 permit holder and
any other persons for the period covered by a report before any
allowance for credits and discount.
(B) Every A-1 permit holder in this state, every bottler,
importer, wholesale dealer, broker, producer, or manufacturer of
beer outside this state and within the United States, and every
B-1 permit holder importing beer from any manufacturer, bottler,
person, or group of persons however organized outside the United
States, and every S permit holder, on or before the tenth day of
each month, shall make and file a report for the preceding month
upon a form prescribed by the tax commissioner which report shall
show the amount of beer produced, sold, and distributed for sale
in this state by the A-1 permit holder, sold and distributed for
sale in this state by each manufacturer, bottler, importer,
wholesale dealer, or broker outside this state and within the
United States, and the amount of beer imported into this state
from outside the United States and sold and distributed for sale
in this state by the B-1 permit holder or importer, and the amount
of beer sold in this state by the S permit holder.
The report shall be filed by mailing it to the tax
commissioner, together with payment of the tax levied by sections
4301.42 and 4305.01 of the Revised Code shown to be due on the
report after deduction of advance payment credits and any
additional credits or discounts provided for under this section.
(C)(1) Every A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S permit
holder in this state, on or before the eighteenth day of each
month, shall make and file a report with the tax commissioner upon
a form prescribed by the tax commissioner which report shall show,
on the report of each A-2, A-4, B-2a, and S permit holder the
amount of wine, cider, and mixed beverages produced and sold, or
sold in this state by each such A-2, A-4, B-2a, and S permit
holder for the next preceding calendar month and such other
information as the tax commissioner requires, and on the report of
each such B-2, B-3, B-4, and B-5 permit holder the amount of wine,
cider, and mixed beverages purchased from an importer, broker,
wholesale dealer, producer, or manufacturer located outside this
state and sold and distributed in this state by such B-2, B-3,
B-4, and B-5 permit holder, for the next preceding calendar month
and such other information as the tax commissioner requires.
(2) Every such A-2, A-4, B-2, B-2a, B-3, B-4, B-5, and S
permit holder in this state shall remit with the report the tax
levied by sections 4301.43 and, if applicable, 4301.432 of the
Revised Code less a discount thereon of three per cent of the
total tax so levied and paid, provided the return is filed
together with remittance of the amount of tax shown to be due
thereon, within the time prescribed. Any permit holder or other
persons who fail to file a report under this section, for each day
the person so fails, may be required to forfeit and pay into the
state treasury the sum of one dollar as revenue arising from the
tax imposed by sections 4301.42, 4301.43, 4301.432, and 4305.01 of
the Revised Code, and that sum may be collected by assessment in
the manner provided in section 4305.13 of the Revised Code.
(3) If the tax commissioner determines that the quantity
reported by a person does not warrant monthly reporting, the
commissioner may authorize the filing of returns and the payment
of the tax required by this section for periods longer than one
month.
(D) Every B-1 permit holder and importer in this state
importing beer from any manufacturer, bottler, person, or group of
persons however organized, outside the United States, if required
by the tax commissioner shall post a bond payable to the state in
such form and amount as the commissioner prescribes with surety to
the satisfaction of the tax commissioner, conditioned upon the
payment to the tax commissioner of taxes levied by sections
4301.42 and 4305.01 of the Revised Code.
(E) No such wine, beer, cider, or mixed beverages sold or
distributed in this state shall be taxed more than once under
sections 4301.42, 4301.43, and 4305.01 of the Revised Code.
(F) As used in this section:
(1) "Cider" has the same meaning as in section 4301.01 of the
Revised Code.
(2) "Wine" has the same meaning as in section 4301.01 of the
Revised Code, except that "wine" does not include cider.
(G) All money collected by the tax commissioner under this
section shall be paid to the treasurer of state as revenue arising
from the taxes levied by sections 4301.42, 4301.43, 4301.432, and
4305.01 of the Revised Code.
Sec. 4928.23. As used in sections 4928.23 to 4928.2318 of the
Revised Code:
(A) "Ancillary agreement" means any bond insurance policy,
letter of credit, reserve account, surety bond, swap arrangement,
hedging arrangement, liquidity or credit support arrangement, or
other similar agreement or arrangement entered into in connection
with the issuance of phase-in-recovery bonds that is designed to
promote the credit quality and marketability of the bonds or to
mitigate the risk of an increase in interest rates.
(B) "Assignee" means any person or entity to which an
interest in phase-in-recovery property is sold, assigned,
transferred, or conveyed, other than as security, and any
successor to or subsequent assignee of such a person or entity.
(C) "Bond" includes debentures, notes, certificates of
participation, certificates of beneficial interest, certificates
of ownership or other evidences of indebtedness or ownership that
are issued by an electric distribution utility or an assignee
under a final financing order, the proceeds of which are used
directly or indirectly to recover, finance, or refinance phase-in
costs and financing costs, and that are secured by or payable from
revenues from phase-in-recovery charges.
(D) "Bondholder" means any holder or owner of a
phase-in-recovery bond.
(E) "Financing costs" means any of the following:
(1) Principal, interest, and redemption premiums that are
payable on phase-in-recovery bonds;
(2) Any payment required under an ancillary agreement;
(3) Any amount required to fund or replenish a reserve
account or another account established under any indenture,
ancillary agreement, or other financing document relating to
phase-in-recovery bonds;
(4) Any costs of retiring or refunding any existing debt and
equity securities of an electric distribution utility in
connection with either the issuance of, or the use of proceeds
from, phase-in-recovery bonds;
(5) Any costs incurred by an electric distribution utility to
obtain modifications of or amendments to any indenture, financing
agreement, security agreement, or similar agreement or instrument
relating to any existing secured or unsecured obligation of the
electric distribution utility in connection with the issuance of
phase-in-recovery bonds;
(6) Any costs incurred by an electric distribution utility to
obtain any consent, release, waiver, or approval from any holder
of an obligation described in division (E)(5) of this section that
are necessary to be incurred for the electric distribution utility
to issue or cause the issuance of phase-in-recovery bonds;
(7) Any taxes, franchise fees, or license fees imposed on
phase-in-recovery revenues;
(8) Any costs related to issuing or servicing
phase-in-recovery bonds or related to obtaining a financing order,
including servicing fees and expenses, trustee fees and expenses,
legal, accounting, or other professional fees and expenses,
administrative fees, placement fees, underwriting fees,
capitalized interest and equity, and rating-agency fees;
(9) Any other similar costs that the public utilities
commission finds appropriate.
(F) "Financing order" means an order issued by the public
utilities commission under section 4928.232 of the Revised Code
that authorizes an electric distribution utility or an assignee to
issue phase-in-recovery bonds and recover phase-in-recovery
charges.
(G) "Final financing order" means a financing order that has
become final and has taken effect as provided in section 4928.233
of the Revised Code.
(H) "Financing party" means either of the following:
(1) Any trustee, collateral agent, or other person acting for
the benefit of any bondholder;
(2) Any party to an ancillary agreement, the rights and
obligations of which relate to or depend upon the existence of
phase-in-recovery property, the enforcement and priority of a
security interest in phase-in-recovery property, the timely
collection and payment of phase-in-recovery revenues, or a
combination of these factors.
(I) "Financing statement" has the same meaning as in section
1309.102 of the Revised Code.
(J) "Phase-in costs" means costs, inclusive of carrying
charges incurred before, on, or after the effective date of this
section March 22, 2012, authorized by the commission before, on,
or after the effective date of this section March 22, 2012, to be
securitized or deferred as regulatory assets in proceedings under
section 4909.18 of the Revised Code, sections 4928.141 to
4928.143, or 4928.144 of the Revised Code, or section 4928.14 of
the Revised Code as it existed prior to July 31, 2008, pursuant to
a final order for which appeals have been exhausted. "Phase-in
costs" excludes the following:
(1) With respect to any electric generating facility that, on
and after the effective date of this section March 22, 2012, is
owned, in whole or in part, by an electric distribution utility
applying for a financing order under section 4928.231 of the
Revised Code, costs that are authorized under division (B)(2)(b)
or (c) of section 4928.143 of the Revised Code;
(2) Costs incurred after the effective date of this section
March 22, 2012, related to the ongoing operation of an electric
generating facility, but not environmental clean-up or remediation
costs incurred by an electric distribution utility because of its
ownership or operation of an electric generating facility prior to
the effective date of this section March 22, 2012, which such
clean-up or remediation costs are imposed or incurred pursuant to
federal or state law, rules, or regulations and for which the
commission approves recovery in accordance with section 4909.18 of
the Revised Code, sections 4928.141 to 4928.143, or 4928.144 of
the Revised Code, or section 4928.14 of the Revised Code as it
existed prior to July 31, 2008.
(K) "Phase-in-recovery property" means the property, rights,
and interests of an electric distribution utility or an assignee
under a final financing order, including the right to impose,
charge, and collect the phase-in-recovery charges that shall be
used to pay and secure the payment of phase-in-recovery bonds and
financing costs, and including the right to obtain adjustments to
those charges, and any revenues, receipts, collections, rights to
payment, payments, moneys, claims, or other proceeds arising from
the rights and interests created under the final financing order.
"Phase-in-recovery property" does not include tangible personal
property constituting the generation, transmission, or
distribution property of an electric distribution utility or an
assignee thereof.
(L) "Phase-in-recovery revenues" means all revenues,
receipts, collections, payments, moneys, claims, or other proceeds
arising from phase-in-recovery property.
(M) "Successor" means, with respect to any entity, another
entity that succeeds by operation of law to the rights and
obligations of the first legal entity pursuant to any bankruptcy,
reorganization, restructuring, or other insolvency proceeding, any
merger, acquisition, or consolidation, or any sale or transfer of
assets, regardless of whether any of these occur as a result of a
restructuring of the electric power industry or otherwise.
Sec. 4928.2314. (A) The transfer and ownership of
phase-in-recovery property and the imposition, charging,
collection, and receipt of phase-in-recovery revenues under
sections 4928.231 to 4928.2317 of the Revised Code are exempt from
all taxes and similar charges imposed by the state or any county,
municipal corporation, school district, local authority, or other
subdivision.
(B) Phase-in-recovery bonds issued under a final financing
order shall not constitute a debt or a pledge of the faith and
credit or taxing power of this state or of any county, municipal
corporation, or any other political subdivision of this state.
Bondholders shall have no right to have taxes levied by this state
or the taxing authority of any county, municipal corporation, or
any other political subdivision of this state for the payment of
the principal of or interest on the bonds. The issuance of
phase-in-recovery bonds does not, directly, indirectly, or
contingently, obligate this state or any county, municipal
corporation, or political subdivision of this state to levy any
tax or make any appropriation for payment of the principal of or
interest on the bonds.
(C) Nothing in this section prohibits the levy of the tax
imposed under Chapter 5751. of the Revised Code.
Sec. 5703.061. The tax commissioner may cancel a debt owed to
the state arising from any tax administered by the commissioner if
the total amount of the debt does not exceed fifty dollars and if
the debt consists only of unpaid taxes due for a single reporting
period and of any penalty, interest, assessment, or other charge
arising from such unpaid taxes.
Sec. 5703.261. If (A) As used in this section:
(1) "Instrument" has the same meaning as in section 1303.03
of the Revised Code.
(2) "Financial transaction device" has the same meaning as in
section 113.40 of the Revised Code.
(B) If a taxpayer or employer required by any tax
administered by the department of taxation to pay taxes,
penalties, or interest makes payment of the taxes, penalties, or
interest with a nonnegotiable or dishonored instrument, an
instrument that is determined to be nonnegotiable, or with any
financial transaction device that is declined, returned, or
dishonored, a penalty of fifty dollars shall be added to the
amount due. The penalty imposed by this section shall be assessed
and collected in the same manner as the taxes, penalties, or
interest. All or part of any penalty imposed under this section
may be abated by the tax commissioner.
Sec. 5703.37. (A)(1) Except as provided in division (B) of
this section, whenever service of a notice or order is required in
the manner provided in this section, a copy of the notice or order
shall be served upon the person affected thereby either by
personal service, by certified mail, or by a delivery service
authorized under section 5703.056 of the Revised Code that
notifies the tax commissioner of the date of delivery.
(2) With the permission of the person affected by the notice
or order, the commissioner may enter into a written agreement to
deliver a notice or order by In lieu of serving a copy of a notice
or order through one of the means provided in division (A)(1) of
this section, the commissioner may serve a notice or order upon
the person affected thereby through alternative means as provided
in this section, including, but not limited to, delivery by secure
electronic mail as provided in division (F) of this section.
Delivery by such means satisfies the requirements for delivery
under this section.
(B)(1)(a) If certified mail is returned because of an
undeliverable address, the commissioner shall first utilize
reasonable means to ascertain a new last known address, including
the use of a change of address service offered by the United
States postal service or an authorized delivery service under
section 5703.056 of the Revised Code. If, after using reasonable
means, the commissioner is unable to ascertain a new last known
address, the assessment is final for purposes of section 131.02 of
the Revised Code sixty days after the notice or order sent by
certified mail is first returned to the commissioner, and the
commissioner shall certify the notice or order, if applicable, to
the attorney general for collection under section 131.02 of the
Revised Code.
(b) Notwithstanding certification to the attorney general
under division (B)(1)(a) of this section, once the commissioner or
attorney general, or the designee of either, makes an initial
contact with the person to whom the notice or order is directed,
the person may protest an assessment by filing a petition for
reassessment within sixty days after the initial contact. The
certification of an assessment under division (B)(1)(a) of this
section is prima-facie evidence that delivery is complete and that
the notice or order is served.
(2) If mailing of a notice or order by certified mail is
returned for some cause other than an undeliverable address, the
tax commissioner shall resend the notice or order by ordinary
mail. The notice or order shall show the date the commissioner
sends the notice or order and include the following statement:
"This notice or order is deemed to be served on the addressee
under applicable law ten days from the date this notice or order
was mailed by the commissioner as shown on the notice or order,
and all periods within which an appeal may be filed apply from and
after that date."
Unless the mailing is returned because of an undeliverable
address, the mailing of that information is prima-facie evidence
that delivery of the notice or order was completed ten days after
the commissioner sent the notice or order by ordinary mail and
that the notice or order was served.
If the ordinary mail is subsequently returned because of an
undeliverable address, the commissioner shall proceed under
division (B)(1)(a) of this section. A person may challenge the
presumption of delivery and service under this division in
accordance with division (C) of this section.
(C)(1) A person disputing the presumption of delivery and
service under division (B) of this section bears the burden of
proving by a preponderance of the evidence that the address to
which the notice or order was sent was not an address with which
the person was associated at the time the commissioner originally
mailed the notice or order by certified mail. For the purposes of
this section, a person is associated with an address at the time
the commissioner originally mailed the notice or order if, at that
time, the person was residing, receiving legal documents, or
conducting business at the address; or if, before that time, the
person had conducted business at the address and, when the notice
or order was mailed, the person's agent or the person's affiliate
was conducting business at the address. For the purposes of this
section, a person's affiliate is any other person that, at the
time the notice or order was mailed, owned or controlled at least
twenty per cent, as determined by voting rights, of the
addressee's business.
(2) If the person elects to protest an assessment certified
to the attorney general for collection, the person must do so
within sixty days after the attorney general's initial contact
with the person. The attorney general may enter into a compromise
with the person under sections 131.02 and 5703.06 of the Revised
Code if the person does not file a petition for reassessment with
the tax commissioner.
(D) Nothing in this section prohibits the tax commissioner or
the commissioner's designee from delivering a notice or order by
personal service.
(E) Collection actions taken pursuant to section 131.02 of
the Revised Code upon any assessment being challenged under
division (B)(1)(b) of this section shall be stayed upon the
pendency of an appeal under this section. If a petition for
reassessment is filed pursuant to this section on a claim that has
been certified to the attorney general for collection, the claim
shall be uncertified.
(F) The commissioner may serve a notice or order upon the
person affected by the notice or order through secure electronic
means only with the person's consent. The commissioner must inform
the recipient, electronically or by mail, that a notice or order
is available for electronic review and provide instructions to
access and print the notice or order. The recipient's electronic
access of the notice or order satisfies the requirements for
delivery under this section. If the recipient fails to access the
notice or order electronically within ten business days, the
notice or order shall be served upon the person through one of the
means provided in division (A)(1) of this section.
(G) As used in this section:
(1) "Last known address" means the address the department has
at the time the document is originally sent by certified mail, or
any address the department can ascertain using reasonable means
such as the use of a change of address service offered by the
United States postal service or an authorized delivery service
under section 5703.056 of the Revised Code.
(2) "Undeliverable address" means an address to which the
United States postal service or an authorized delivery service
under section 5703.056 of the Revised Code is not able to deliver
a notice or order, except when the reason for nondelivery is
because the addressee fails to acknowledge or accept the notice or
order.
Sec. 5703.47. (A) As used in this section, "federal
short-term rate" means the rate of the average market yield on
outstanding marketable obligations of the United States with
remaining periods to maturity of three years or less, as
determined under section 1274 of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C.A. 1274, for July of the current
year.
(B) On the fifteenth day of October of each year, the tax
commissioner shall determine the federal short-term rate. For
purposes of any section of the Revised Code requiring interest to
be computed at the rate per annum required by this section, the
rate determined by the commissioner under this section, rounded to
the nearest whole number per cent, plus three one per cent, shall
be the interest rate per annum used in making the computation for
interest that accrues during the following calendar year. For the
purposes of sections 5719.041 and 5731.23 of the Revised Code,
references to the "federal short-term rate" are references to the
federal short-term rate as determined by the tax commissioner
under this section rounded to the nearest whole number per cent.
(C) Within ten days after the interest rate per annum is
determined under this section, the tax commissioner shall notify
the auditor of each county in writing of that rate of interest.
Sec. 5727.84. (A) As used in this section and sections
5727.85, 5727.86, and 5727.87 of the Revised Code:
(1) "School district" means a city, local, or exempted
village school district.
(2) "Joint vocational school district" means a joint
vocational school district created under section 3311.16 of the
Revised Code, and includes a cooperative education school district
created under section 3311.52 or 3311.521 of the Revised Code and
a county school financing district created under section 3311.50
of the Revised Code.
(3) "Local taxing unit" means a subdivision or taxing unit,
as defined in section 5705.01 of the Revised Code, a park district
created under Chapter 1545. of the Revised Code, or a township
park district established under section 511.23 of the Revised
Code, but excludes school districts and joint vocational school
districts.
(4) "State education aid," for a school district, means the
following:
(a) For fiscal years prior to fiscal year 2010, the sum of
state aid amounts computed for the district under the following
provisions, as they existed for the applicable fiscal year:
divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section
3317.022; divisions (B), (C), and (D) of section 3317.023;
divisions (G), (L), and (N) of section 3317.024; and sections
3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and
3317.053 of the Revised Code; and the adjustments required by:
division (C) of section 3310.08; division (C)(2) of section
3310.41; division (C) of section 3314.08; division (D)(2) of
section 3314.091; division (D) of section 3314.13; divisions (E),
(K), (L), (M), and (N) of section 3317.023; division (C) of
section 3317.20; and sections 3313.979 and 3313.981 of the Revised
Code. However, when calculating state education aid for a school
district for fiscal years 2008 and 2009, include the amount
computed for the district under Section 269.20.80 of H.B. 119 of
the 127th general assembly, as subsequently amended, instead of
division (D) of section 3317.022 of the Revised Code; and include
amounts calculated under Section 269.30.80 of H.B. 119 of the
127th general assembly, as subsequently amended.
(b) For fiscal years 2010 and 2011, the sum of the amounts
computed for the district under former sections 3306.052, 3306.12,
3306.13, 3306.19, 3306.191, and 3306.192 of the Revised Code and
the following provisions, as they existed for the applicable
fiscal year: division (G) of section 3317.024; sections 3317.05,
3317.052, and 3317.053 of the Revised Code; and the adjustments
required by division (C) of section 3310.08; division (C)(2) of
section 3310.41; division (C) of section 3314.08; division (D)(2)
of section 3314.091; division (D) of section 3314.13; divisions
(E), (K), (L), (M), and (N) of section 3317.023; division (C) of
section 3317.20; and sections 3313.979, 3313.981, and 3326.33 of
the Revised Code.
(c) For fiscal years 2012 and 2013, the amount paid in
accordance with the section of H.B. 153 of the 129th general
assembly entitled "FUNDING FOR CITY, EXEMPTED VILLAGE, AND LOCAL
SCHOOL DISTRICTS" and the adjustments required by division (C) of
section 3310.08; division (C)(2) of section 3310.41; section
3310.55; division (C) of section 3314.08; division (D)(2) of
section 3314.091; division (D) of section 3314.13; divisions (B),
(H), (I), (J), and (K) of section 3317.023; division (C) of
section 3317.20; and sections 3313.979 and 3313.981 of the Revised
Code.
(5) "State education aid," for a joint vocational school
district, means the following:
(a) For fiscal years prior to fiscal year 2010, the sum of
the state aid amounts computed for the district under division (N)
of section 3317.024 and section 3317.16 of the Revised Code.
However, when calculating state education aid for a joint
vocational school district for fiscal years 2008 and 2009, include
the amount computed for the district under Section 269.30.90 of
H.B. 119 of the 127th general assembly, as subsequently amended.
(b) For fiscal years 2010 and 2011, the amount computed for
the district in accordance with the section of H.B. 1 of the 128th
general assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL
DISTRICTS".
(c) For fiscal years 2012 and 2013, the amount paid in
accordance with the section of H.B. 153 of the 129th general
assembly entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL DISTRICTS."
(6) "State education aid offset" means the amount determined
for each school district or joint vocational school district under
division (A)(1) of section 5727.85 of the Revised Code.
(7) "Recognized valuation" has the same meaning as in section
3317.02 of the Revised Code.
(8) "Electric company tax value loss" means the amount
determined under division (D) of this section.
(9) "Natural gas company tax value loss" means the amount
determined under division (E) of this section.
(10) "Tax value loss" means the sum of the electric company
tax value loss and the natural gas company tax value loss.
(11) "Fixed-rate levy" means any tax levied on property other
than a fixed-sum levy.
(12) "Fixed-rate levy loss" means the amount determined under
division (G) of this section.
(13) "Fixed-sum levy" means a tax levied on property at
whatever rate is required to produce a specified amount of tax
money or levied in excess of the ten-mill limitation to pay debt
charges, and includes school district emergency levies imposed
charged and payable pursuant to section 5705.194 of the Revised
Code.
(14) "Fixed-sum levy loss" means the amount determined under
division (H) of this section.
(15) "Consumer price index" means the consumer price index
(all items, all urban consumers) prepared by the bureau of labor
statistics of the United States department of labor.
(16) "Total resources" has and "total library resources" have
the same meaning meanings as in section 5751.20 of the Revised
Code.
(17) "2011 current expense S.B. 3 allocation" means the sum
of payments received by a school district or joint vocational
school district in fiscal year 2011 for current expense levy
losses pursuant to division (C)(2) of section 5727.85 of the
Revised Code. If a fixed-rate levy eligible for reimbursement is
not imposed charged and payable in any year after tax year 2010,
"2011 current expense S.B. 3 allocation" used to compute payments
to be made under division (C)(3) of section 5727.85 of the Revised
Code in the tax years following the last year the levy is imposed
charged and payable shall be reduced by the amount of to the
extent that those payments are attributable to the fixed-rate levy
loss of that levy.
(18) "2010 current expense S.B. 3 allocation" means the sum
of payments received by a municipal corporation in calendar year
2010 for current expense levy losses pursuant to division (A)(1)
of section 5727.86 of the Revised Code, excluding any such
payments received for current expense levy losses attributable to
a tax levied under section 5705.23 of the Revised Code. If a
fixed-rate levy eligible for reimbursement is not imposed charged
and payable in any year after tax year 2010, "2010 current expense
S.B. 3 allocation" used to compute payments to be made under
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code
in the tax years following the last year the levy is imposed
charged and payable shall be reduced by the amount of to the
extent that those payments are attributable to the fixed-rate levy
loss of that levy.
(19) "2010 S.B. 3 allocation" means the sum of payments
received by a local taxing unit during calendar year 2010 pursuant
to division (A)(1) of section 5727.86 of the Revised Code,
excluding any such payments received for fixed-rate levy losses
attributable to a tax levied under section 5705.23 of the Revised
Code. If a fixed-rate levy eligible for reimbursement is not
imposed charged and payable in any year after tax year 2010, "2010
S.B. 3 allocation" used to compute payments to be made under
division (A)(1)(d) or (e) of section 5727.86 of the Revised Code
in the tax years following the last year the levy is imposed
charged and payable shall be reduced by the amount of to the
extent that those payments are attributable to the fixed-rate levy
loss of that levy.
(20) "Total S.B. 3 allocation" means, in the case of a school
district or joint vocational school district, the sum of the
amounts payments received in fiscal year 2011 pursuant to
divisions (C)(2) and (D) of section 5727.85 of the Revised Code.
In the case of a local taxing unit, "total S.B. 3 allocation"
means the sum of payments received by the unit in calendar year
2010 pursuant to divisions (A)(1) and (4) of section 5727.86 of
the Revised Code, excluding any such payments received for
fixed-rate levy losses attributable to a tax levied under section
5705.23 of the Revised Code. If a fixed-rate levy eligible for
reimbursement is not imposed charged and payable in any year after
tax year 2010, "total S.B. 3 allocation" used to compute payments
to be made under division (C)(3) of section 5727.85 or division
(A)(1)(d) or (e) of section 5727.86 of the Revised Code in the tax
years following the last year the levy is imposed charged and
payable shall be reduced by the amount of to the extent that those
payments are attributable to the fixed-rate levy loss of that levy
as would be computed under division (C)(2) of section 5727.85 or
division (A)(1)(b) of section 5727.86 of the Revised Code.
(21) "2011 non-current expense S.B. 3 allocation" means the
difference of a school district's or joint vocational school
district's total S.B. 3 allocation minus the sum of the school
district's 2011 current expense S.B. 3 allocation and the portion
of the school district's total S.B. 3 allocation constituting
reimbursement for debt levies pursuant to division (D) of section
5727.85 of the Revised Code.
(22) "2010 non-current expense S.B. 3 allocation" means the
difference of a municipal corporation's total S.B. 3 allocation
minus the sum of its 2010 current expense S.B. 3 allocation and
the portion of its total S.B. 3 allocation constituting
reimbursement for debt levies pursuant to division (A)(4) of
section 5727.86 of the Revised Code.
(23) "S.B. 3 allocation for library purposes" means, in the
case of a county, municipal corporation, school district, or
township public library that receives the proceeds of a tax levied
under section 5705.23 of the Revised Code, the sum of the payments
received by the public library in calendar year 2010 pursuant to
section 5727.86 of the Revised Code for fixed-rate levy losses
attributable to a tax levied under section 5705.23 of the Revised
Code. If a fixed-rate levy authorized under section 5705.23 of the
Revised Code that is eligible for reimbursement is not charged and
payable in any year after tax year 2010, "S.B. 3 allocation for
library purposes" used to compute payments to be made under
division (A)(1)(f) of section 5727.86 of the Revised Code in the
tax years following the last year the levy is charged and payable
shall be reduced to the extent that those payments are
attributable to the fixed-rate levy loss of that levy as would be
computed under division (A)(1)(b) of section 5727.86 of the
Revised Code.
(24) "Threshold per cent" means, in the case of a school
district or joint vocational school district, two per cent for
fiscal year 2012 and four per cent for fiscal years 2013 and
thereafter. In the case of a local taxing unit or public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, "threshold per cent" means two per cent for
calendar year 2011, four per cent for calendar year 2012, and six
per cent for calendar years 2013 and thereafter.
(B) The kilowatt-hour tax receipts fund is hereby created in
the state treasury and shall consist of money arising from the tax
imposed by section 5727.81 of the Revised Code. All money in the
kilowatt-hour tax receipts fund shall be credited as follows:
Fiscal Year |
General Revenue Fund |
School District Property Tax Replacement Fund |
Local Government Property Tax Replacement Fund |
|
|
2001-2011 |
63.0% |
25.4% |
11.6% |
|
|
2012 and thereafter |
88.0% |
9.0% |
3.0% |
|
|
(C) The natural gas tax receipts fund is hereby created in
the state treasury and shall consist of money arising from the tax
imposed by section 5727.811 of the Revised Code. All money in the
fund shall be credited as follows:
(1) For fiscal years before fiscal year 2012:
(a) Sixty-eight and seven-tenths per cent shall be credited
to the school district property tax replacement fund for the
purpose of making the payments described in section 5727.85 of the
Revised Code.
(b) Thirty-one and three-tenths per cent shall be credited to
the local government property tax replacement fund for the purpose
of making the payments described in section 5727.86 of the Revised
Code.
(2) For fiscal years 2012 and thereafter, one hundred per
cent to the general revenue fund.
(D) Not later than January 1, 2002, the tax commissioner
shall determine for each taxing district its electric company tax
value loss, which is the sum of the applicable amounts described
in divisions (D)(1) to (4) of this section:
(1) The difference obtained by subtracting the amount
described in division (D)(1)(b) from the amount described in
division (D)(1)(a) of this section.
(a) The value of electric company and rural electric company
tangible personal property as assessed by the tax commissioner for
tax year 1998 on a preliminary assessment, or an amended
preliminary assessment if issued prior to March 1, 1999, and as
apportioned to the taxing district for tax year 1998;
(b) The value of electric company and rural electric company
tangible personal property as assessed by the tax commissioner for
tax year 1998 had the property been apportioned to the taxing
district for tax year 2001, and assessed at the rates in effect
for tax year 2001.
(2) The difference obtained by subtracting the amount
described in division (D)(2)(b) from the amount described in
division (D)(2)(a) of this section.
(a) The three-year average for tax years 1996, 1997, and 1998
of the assessed value from nuclear fuel materials and assemblies
assessed against a person under Chapter 5711. of the Revised Code
from the leasing of them to an electric company for those
respective tax years, as reflected in the preliminary assessments;
(b) The three-year average assessed value from nuclear fuel
materials and assemblies assessed under division (D)(2)(a) of this
section for tax years 1996, 1997, and 1998, as reflected in the
preliminary assessments, using an assessment rate of twenty-five
per cent.
(3) In the case of a taxing district having a nuclear power
plant within its territory, any amount, resulting in an electric
company tax value loss, obtained by subtracting the amount
described in division (D)(1) of this section from the difference
obtained by subtracting the amount described in division (D)(3)(b)
of this section from the amount described in division (D)(3)(a) of
this section.
(a) The value of electric company tangible personal property
as assessed by the tax commissioner for tax year 2000 on a
preliminary assessment, or an amended preliminary assessment if
issued prior to March 1, 2001, and as apportioned to the taxing
district for tax year 2000;
(b) The value of electric company tangible personal property
as assessed by the tax commissioner for tax year 2001 on a
preliminary assessment, or an amended preliminary assessment if
issued prior to March 1, 2002, and as apportioned to the taxing
district for tax year 2001.
(4) In the case of a taxing district having a nuclear power
plant within its territory, the difference obtained by subtracting
the amount described in division (D)(4)(b) of this section from
the amount described in division (D)(4)(a) of this section,
provided that such difference is greater than ten per cent of the
amount described in division (D)(4)(a) of this section.
(a) The value of electric company tangible personal property
as assessed by the tax commissioner for tax year 2005 on a
preliminary assessment, or an amended preliminary assessment if
issued prior to March 1, 2006, and as apportioned to the taxing
district for tax year 2005;
(b) The value of electric company tangible personal property
as assessed by the tax commissioner for tax year 2006 on a
preliminary assessment, or an amended preliminary assessment if
issued prior to March 1, 2007, and as apportioned to the taxing
district for tax year 2006.
(E) Not later than January 1, 2002, the tax commissioner
shall determine for each taxing district its natural gas company
tax value loss, which is the sum of the amounts described in
divisions (E)(1) and (2) of this section:
(1) The difference obtained by subtracting the amount
described in division (E)(1)(b) from the amount described in
division (E)(1)(a) of this section.
(a) The value of all natural gas company tangible personal
property, other than property described in division (E)(2) of this
section, as assessed by the tax commissioner for tax year 1999 on
a preliminary assessment, or an amended preliminary assessment if
issued prior to March 1, 2000, and apportioned to the taxing
district for tax year 1999;
(b) The value of all natural gas company tangible personal
property, other than property described in division (E)(2) of this
section, as assessed by the tax commissioner for tax year 1999 had
the property been apportioned to the taxing district for tax year
2001, and assessed at the rates in effect for tax year 2001.
(2) The difference in the value of current gas obtained by
subtracting the amount described in division (E)(2)(b) from the
amount described in division (E)(2)(a) of this section.
(a) The three-year average assessed value of current gas as
assessed by the tax commissioner for tax years 1997, 1998, and
1999 on a preliminary assessment, or an amended preliminary
assessment if issued prior to March 1, 2001, and as apportioned in
the taxing district for those respective years;
(b) The three-year average assessed value from current gas
under division (E)(2)(a) of this section for tax years 1997, 1998,
and 1999, as reflected in the preliminary assessment, using an
assessment rate of twenty-five per cent.
(F) The tax commissioner may request that natural gas
companies, electric companies, and rural electric companies file a
report to help determine the tax value loss under divisions (D)
and (E) of this section. The report shall be filed within thirty
days of the commissioner's request. A company that fails to file
the report or does not timely file the report is subject to the
penalty in section 5727.60 of the Revised Code.
(G) Not later than January 1, 2002, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its fixed-rate levy loss, which is
the sum of its electric company tax value loss multiplied by the
tax rate in effect in tax year 1998 for fixed-rate levies and its
natural gas company tax value loss multiplied by the tax rate in
effect in tax year 1999 for fixed-rate levies.
(H) Not later than January 1, 2002, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its fixed-sum levy loss, which is
the amount obtained by subtracting the amount described in
division (H)(2) of this section from the amount described in
division (H)(1) of this section:
(1) The sum of the electric company tax value loss multiplied
by the tax rate in effect in tax year 1998, and the natural gas
company tax value loss multiplied by the tax rate in effect in tax
year 1999, for fixed-sum levies for all taxing districts within
each school district, joint vocational school district, and local
taxing unit. For the years 2002 through 2006, this computation
shall include school district emergency levies that existed in
1998 in the case of the electric company tax value loss, and 1999
in the case of the natural gas company tax value loss, and all
other fixed-sum levies that existed in 1998 in the case of the
electric company tax value loss and 1999 in the case of the
natural gas company tax value loss and continue to be charged in
the tax year preceding the distribution year. For the years 2007
through 2016 in the case of school district emergency levies, and
for all years after 2006 in the case of all other fixed-sum
levies, this computation shall exclude all fixed-sum levies that
existed in 1998 in the case of the electric company tax value loss
and 1999 in the case of the natural gas company tax value loss,
but are no longer in effect in the tax year preceding the
distribution year. For the purposes of this section, an emergency
levy that existed in 1998 in the case of the electric company tax
value loss, and 1999 in the case of the natural gas company tax
value loss, continues to exist in a year beginning on or after
January 1, 2007, but before January 1, 2017, if, in that year, the
board of education levies a school district emergency levy for an
annual sum at least equal to the annual sum levied by the board in
tax year 1998 or 1999, respectively, less the amount of the
payment certified under this division for 2002.
(2) The total taxable value in tax year 1999 less the tax
value loss in each school district, joint vocational school
district, and local taxing unit multiplied by one-fourth of one
mill.
If the amount computed under division (H) of this section for
any school district, joint vocational school district, or local
taxing unit is greater than zero, that amount shall equal the
fixed-sum levy loss reimbursed pursuant to division (F) of section
5727.85 of the Revised Code or division (A)(2) of section 5727.86
of the Revised Code, and the one-fourth of one mill that is
subtracted under division (H)(2) of this section shall be
apportioned among all contributing fixed-sum levies in the
proportion of each levy to the sum of all fixed-sum levies within
each school district, joint vocational school district, or local
taxing unit.
(I) Notwithstanding divisions (D), (E), (G), and (H) of this
section, in computing the tax value loss, fixed-rate levy loss,
and fixed-sum levy loss, the tax commissioner shall use the
greater of the 1998 tax rate or the 1999 tax rate in the case of
levy losses associated with the electric company tax value loss,
but the 1999 tax rate shall not include for this purpose any tax
levy approved by the voters after June 30, 1999, and the tax
commissioner shall use the greater of the 1999 or the 2000 tax
rate in the case of levy losses associated with the natural gas
company tax value loss.
(J) Not later than January 1, 2002, the tax commissioner
shall certify to the department of education the tax value loss
determined under divisions (D) and (E) of this section for each
taxing district, the fixed-rate levy loss calculated under
division (G) of this section, and the fixed-sum levy loss
calculated under division (H) of this section. The calculations
under divisions (G) and (H) of this section shall separately
display the levy loss for each levy eligible for reimbursement.
(K) Not later than September 1, 2001, the tax commissioner
shall certify the amount of the fixed-sum levy loss to the county
auditor of each county in which a school district with a fixed-sum
levy loss has territory.
Sec. 5727.86. (A) Not later than January 1, 2002, the The
tax commissioner shall compute the payments to be made to each
local taxing unit, and to each public library that receives the
proceeds of a tax levied under section 5705.23 of the Revised
Code, for each year according to divisions (A)(1), (2), (3), and
(4) and division (E) of this section, and shall distribute the
payments in the manner prescribed by division (C) of this section.
The calculation of the fixed-sum levy loss shall cover a time
period sufficient to include all fixed-sum levies for which the
tax commissioner determined, pursuant to division (H) of section
5727.84 of the Revised Code, that a fixed-sum levy loss is to be
reimbursed.
(1) Except as provided in divisions (A)(3) and (4) of this
section, the following amounts shall be paid on or before the
thirty-first day of August and the twenty-eighth day of February:
(a) For years 2002 through 2006, fifty per cent of the
fixed-rate levy loss computed under division (G) of section
5727.84 of the Revised Code;
(b) For years 2007 through 2010, forty per cent of the
fixed-rate levy loss computed under division (G) of section
5727.84 of the Revised Code;
(c) For the payment in 2011 to be made on or before the
twentieth day of February, the amount required to be paid in 2010
on or before the twentieth day of February;
(d) For the payment in 2011 to be made on or before the
thirty-first day of August and for all payments to be made in
years 2012 and thereafter, the sum of the amounts in divisions
(A)(1)(d)(i) or (ii) and (iii) of this section:
(i) If the ratio of fifty per cent of the taxing unit's 2010
S.B. 3 allocation to its total resources is equal to or less than
the threshold per cent, zero;
(ii) If the ratio of fifty per cent of the taxing unit's 2010
S.B. 3 allocation to its total resources is greater than the
threshold per cent, the difference of fifty per cent of the 2010
S.B. 3 allocation minus the product of total resources multiplied
by the threshold per cent;
(iii) In the case of a municipal corporation, fifty per cent
of the product of its 2010 non-current expense S.B. 3 allocation
multiplied by seventy-five per cent
for year 2011, fifty per cent
for year 2012, and twenty-five percent for years 2013 and
thereafter.
(e) For 2012 and each year thereafter, the sum of the amounts
in divisions (A)(1)(e)(i) or (ii) and (iii) of this section:
(i) If the ratio of the taxing unit's 2010 S.B. 3 allocation
to its total resources is equal to or less than the threshold per
cent, zero;
(ii) If the ratio of the taxing unit's 2010 S.B. 3 allocation
to its total resources is greater than the threshold per cent,
fifty per cent of the difference of the 2010 S.B. 3 allocation
minus the product of total resources multiplied by the threshold
per cent;
(iii) In the case of a municipal corporation, fifty per cent
of the product of its 2010 non-current expense S.B. 3 allocation
multiplied by fifty per cent for year 2012 and by twenty-five per
cent for years 2013 and thereafter.
(f) For the payment in 2012 to be made to a public library on
or before the thirty-first day of August and for all such payments
to be made in 2013 and thereafter, the amount in division
(A)(1)(f)(i) or (ii) of this section:
(i) If the ratio of S.B. 3 allocation for library purposes to
total library resources is equal to or less than the threshold per
cent, zero;
(ii) If the ratio of S.B. 3 allocation for library purposes
to total library resources is greater than the threshold per cent,
fifty per cent of the difference of the S.B. 3 allocation for
library purposes minus the product of total library resources
multiplied by the threshold per cent.
(2) For fixed-sum levy losses determined under division (H)
of section 5727.84 of the Revised Code, payments shall be made in
the amount of one hundred per cent of the fixed-sum levy loss for
payments required to be made in 2002 and thereafter.
(3) A local taxing unit in a county of less than two hundred
fifty square miles that receives eighty per cent or more of its
combined general fund and bond retirement fund revenues from
property taxes and rollbacks based on 1997 actual revenues as
presented in its 1999 tax budget, and in which electric companies
and rural electric companies comprise over twenty per cent of its
property valuation, shall receive one hundred per cent of its
fixed-rate levy losses from electric company tax value losses
certified under division (A) of this section in years 2002 to
2010. Beginning in 2011, payments for such local taxing units
shall be determined under division (A)(1) of this section.
(4) For taxes levied within the ten-mill limitation or
pursuant to a municipal charter for debt purposes in tax year 1998
in the case of electric company tax value losses, and in tax year
1999 in the case of natural gas company tax value losses, payments
shall be made equal to one hundred per cent of the loss computed
as if the tax were a fixed-rate levy, but those payments shall
extend from 2011 through 2016 if the levy was imposed charged and
payable for debt purposes in tax year 2010. If the levy is not
imposed charged and payable for debt purposes in tax year 2010 or
any following tax year before tax year 2016, payments for that
levy shall be made under division (A)(1) of this section beginning
with the first year after the year the levy is imposed charged and
payable for a purpose other than debt. For the purposes of this
division, taxes levied pursuant to a municipal charter refer to
taxes levied pursuant to a provision of a municipal charter that
permits the tax to be levied without prior voter approval.
(B) Beginning in 2003, by the thirty-first day of January of
each year, the tax commissioner shall review the calculation
originally made under division (A) of this section of the
fixed-sum levy loss determined under division (H) of section
5727.84 of the Revised Code. If the commissioner determines that a
fixed-sum levy that had been scheduled to be reimbursed in the
current year has expired, a revised calculation for that and all
subsequent years shall be made.
(C) Payments to local taxing units and public libraries
required to be made under divisions (A) and (E) of this section
shall be paid from the local government property tax replacement
fund to the county undivided income tax fund in the proper county
treasury. The county treasurer shall distribute amounts paid under
division (A) of this section to the proper local taxing unit or
public library as if they had been levied and collected as taxes,
and the local taxing unit or public library shall apportion the
amounts so received among its funds in the same proportions as if
those amounts had been levied and collected as taxes. Except in
the case of amounts distributed to the county as a local taxing
unit, amounts distributed under division (E)(2) of this section
shall be credited to the general fund of the local taxing unit
that receives them. Amounts distributed to each county as a local
taxing unit under division (E)(2) of this section shall be
credited in the proportion that the current taxes charged and
payable from each levy of or by the county bears to the total
current taxes charged and payable from all levies of or by the
county.
(D) By February 5, 2002, the tax commissioner shall estimate
the amount of money in the local government property tax
replacement fund in excess of the amount necessary to make
payments in that month under division (C) of this section.
Notwithstanding division (A) of this section, the tax commissioner
may pay any local taxing unit, from those excess funds, nine and
four-tenths times the amount computed for 2002 under division
(A)(1) of this section. A payment made under this division shall
be in lieu of the payment to be made in February 2002 under
division (A)(1) of this section. A local taxing unit receiving a
payment under this division will no longer be entitled to any
further payments under division (A)(1) of this section. A payment
made under this division shall be paid from the local government
property tax replacement fund to the county undivided income tax
fund in the proper county treasury. The county treasurer shall
distribute the payment to the proper local taxing unit as if it
had been levied and collected as taxes, and the local taxing unit
shall apportion the amounts so received among its funds in the
same proportions as if those amounts had been levied and collected
as taxes.
(E)(1) On the thirty-first day of July of 2002, 2003, 2004,
2005, and 2006, and on the thirty-first day of January and July of
2007 through January 2011, if the amount credited to the local
government property tax replacement fund exceeds the amount needed
to be distributed from the fund under division (A) of this section
in the following month, the tax commissioner shall distribute the
excess to each county as follows:
(a) One-half shall be distributed to each county in
proportion to each county's population.
(b) One-half shall be distributed to each county in the
proportion that the amounts determined under divisions (G) and (H)
of section 5727.84 of the Revised Code for all local taxing units
in the county is of the total amounts so determined for all local
taxing units in the state.
(2) The amounts distributed to each county under division (E)
of this section shall be distributed by the county auditor to each
local taxing unit in the county in the proportion that the unit's
current taxes charged and payable are of the total current taxes
charged and payable of all the local taxing units in the county.
If the amount that the county auditor determines to be distributed
to a local taxing unit is less than five dollars, that amount
shall not be distributed, and the amount not distributed shall
remain credited to the county undivided income tax fund. At the
time of the next distribution under division (E)(2) of this
section, any amount that had not been distributed in the prior
distribution shall be added to the amount available for the next
distribution prior to calculation of the amount to be distributed.
As used in this division, "current taxes charged and payable"
means the taxes charged and payable as most recently determined
for local taxing units in the county.
After January 2011, any amount that exceeds the amount needed
to be distributed from the fund under division (A) of this section
in the following month shall be transferred to the general revenue
fund.
(F) If the total amount in the local government property tax
replacement fund is insufficient to make all payments under
division (C) of this section at the times the payments are to be
made, the director of budget and management shall transfer from
the general revenue fund to the local government property tax
replacement fund the difference between the total amount to be
paid and the amount in the local government property tax
replacement fund, except that no transfer shall be made by reason
of a deficiency to the extent that it results from the amendment
of section 5727.84 of the Revised Code by Amended Substitute House
Bill 95 of the 125th general assembly.
(G) If all or a part of the territories of two or more local
taxing units are merged, or unincorporated territory of a township
is annexed by a municipal corporation, the tax commissioner shall
adjust the payments made under this section to each of the local
taxing units in proportion to the square mileage apportioned to
the merged or annexed territory, or as otherwise provided by a
written agreement between the legislative authorities of the local
taxing units certified to the tax commissioner not later than the
first day of June of the calendar year in which the payment is to
be made.
Sec. 5731.39. (A) This section does not apply to, and the
written permission of the tax commissioner is not required for
asset transfers with respect to, decedents dying on or after
January 1, 2013.
(A) No corporation organized or existing under the laws of
this state shall transfer on its books or issue a new certificate
for any share of its capital stock registered in the name of a
decedent, or in trust for a decedent, or in the name of a decedent
and another person or persons, without the written consent of the
tax commissioner.
(B) No safe deposit company, trust company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code or other corporation or person, having in possession,
control, or custody a deposit standing in the name of a decedent,
or in trust for a decedent, or in the name of a decedent and
another person or persons, shall deliver or transfer an amount in
excess of three-fourths of the total value of such deposit,
including accrued interest and dividends, as of the date of
decedent's death, without the written consent of the tax
commissioner. The written consent of the tax commissioner need not
be obtained prior to the delivery or transfer of amounts having a
value of three-fourths or less of said total value.
(C) No life insurance company shall pay the proceeds of an
annuity or matured endowment contract, or of a life insurance
contract payable to the estate of a decedent, or of any other
insurance contract taxable under Chapter 5731. of the Revised
Code, without the written consent of the tax commissioner. Any
life insurance company may pay the proceeds of any insurance
contract not specified in this division (C) without the written
consent of the tax commissioner.
(D) No trust company or other corporation or person shall pay
the proceeds of any death benefit, retirement, pension or profit
sharing plan in excess of two thousand dollars, without the
written consent of the tax commissioner. Such trust company or
other corporation or person, however, may pay the proceeds of any
death benefit, retirement, pension, or profit-sharing plan which
consists of insurance on the life of the decedent payable to a
beneficiary other than the estate of the insured without the
written consent of the tax commissioner.
(E) No safe deposit company, trust company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation or person, having in
possession, control, or custody securities, assets, or other
property (including the shares of the capital stock of, or other
interest in, such safe deposit company, trust company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation), standing in the name of a
decedent, or in trust for a decedent, or in the name of a decedent
and another person or persons, and the transfer of which is
taxable under Chapter 5731. of the Revised Code, shall deliver or
transfer any such securities, assets, or other property which have
a value as of the date of decedent's death in excess of
three-fourths of the total value thereof, without the written
consent of the tax commissioner. The written consent of the tax
commissioner need not be obtained prior to the delivery or
transfer of any such securities, assets, or other property having
a value of three-fourths or less of said total value.
(F) No safe deposit company, financial institution as defined
in division (A) of section 5725.01 of the Revised Code, or other
corporation or person having possession or control of a safe
deposit box or similar receptacle standing in the name of a
decedent or in the name of the decedent and another person or
persons, or to which the decedent had a right of access, except
when such safe deposit box or other receptacle stands in the name
of a corporation or partnership, or in the name of the decedent as
guardian or executor, shall deliver any of the contents thereof
unless the safe deposit box or similar receptacle has been opened
and inventoried in the presence of the tax commissioner or the
commissioner's agent, and a written consent to transfer issued;
provided, however, that a safe deposit company, financial
institution, or other corporation or person having possession or
control of a safe deposit box may deliver wills, deeds to burial
lots, and insurance policies to a representative of the decedent,
but that a representative of the safe deposit company, financial
institution, or other corporation or person must supervise the
opening of the box and make a written record of the wills, deeds,
and policies removed. Such written record shall be included in the
tax commissioner's inventory records.
(G) Notwithstanding any provision of this section:
(1) The tax commissioner may authorize any delivery or
transfer or waive any of the foregoing requirements under such
terms and conditions as the commissioner may prescribe;
(2) An adult care facility, as defined in section 5119.70 of
the Revised Code, or a home, as defined in section 3721.10 of the
Revised Code, may transfer or use the money in a personal needs
allowance account in accordance with section 5111.113 of the
Revised Code without the written consent of the tax commissioner,
and without the account having been opened and inventoried in the
presence of the commissioner or the commissioner's agent.
Failure to comply with this section shall render such safe
deposit company, trust company, life insurance company, financial
institution as defined in division (A) of section 5725.01 of the
Revised Code, or other corporation or person liable for the amount
of the taxes and interest due under the provisions of Chapter
5731. of the Revised Code on the transfer of such stock, deposit,
proceeds of an annuity or matured endowment contract or of a life
insurance contract payable to the estate of a decedent, or other
insurance contract taxable under Chapter 5731. of the Revised
Code, proceeds of any death benefit, retirement, pension, or
profit sharing plan in excess of two thousand dollars, or
securities, assets, or other property of any resident decedent,
and in addition thereto, to a penalty of not less than five
hundred or more than five thousand dollars.
Sec. 5733.26. (A) Except as provided in section 5733.261 of
the Revised Code, if the tax imposed by sections 5733.06,
5733.065, and 5733.066 of the Revised Code for the tax year,
reduced by the credits listed in section 5733.98 of the Revised
Code, is not paid on or before the date prescribed for its
payment, interest shall be assessed, collected, and paid, in the
same manner as the tax, upon such unpaid amount at the rate per
annum prescribed by section 5703.47 of the Revised Code from the
date prescribed for its payment until it is paid or until the day
an assessment is issued under section 5733.11 of the Revised Code,
whichever occurs first. For estimated tax payments due under
division (B) of section 5733.021 of the Revised Code, the interest
due on the delinquent portion of the estimated tax required to be
paid under that section shall be based on the tax owed for the tax
year without regard to division (C) of section 5733.021 of the
Revised Code.
(B) Interest Except as provided in division (C) of this
section, interest shall be allowed and paid at the rate per annum
prescribed by section 5703.47 of the Revised Code upon amounts
refunded with respect to the tax imposed by sections 5733.06,
5733.065, and 5733.066 of the Revised Code. The interest shall run
from whichever of the following dates is the latest until the date
the refund is paid: the date of the illegal, erroneous, or
excessive payment; the ninetieth day after the final date the
annual report under section 5733.02 of the Revised Code was
required to be filed; or the ninetieth day after the date that
report was filed.
If the overpayment results from the carryback of a net
capital loss to a previous taxable year, the overpayment is deemed
not to have been made prior to the filing date, including any
extension thereof, for the taxable year in which the net capital
loss arises.
(C) If a taxpayer claims a refundable credit against the tax
imposed under section 5733.06 of the Revised Code, any payment
that is refunded to the taxpayer as a result of the allowance of
the credit shall not be considered an illegal, erroneous, or
excessive payment for purposes of division (B) of this section. No
interest shall be allowed on an amount refunded to a taxpayer to
the extent that the refund results from the allowance of a
refundable credit.
Sec. 5735.02. (A) A motor fuel dealer shall not receive, use,
sell, or distribute any motor fuel or engage in business within
this state unless the motor fuel dealer holds an unrevoked license
issued by the tax commissioner to engage in such business. To
(B) To procure such a motor fuel dealer's license, every
motor fuel dealer shall file with the commissioner an application
verified under oath by the applicant and in such form as the
commissioner prescribes, setting forth, in addition to such other
information required by the commissioner, the following:
(A)(1) The name under which the motor fuel dealer will
transact business within the state;
(B)(2) The location, including street number address, of its
principal office or place of business within this state;
(C)(3) The name and address of the owner, or the names and
addresses of the partners if such motor fuel dealer is a
partnership, or the names and addresses of the principal officers
if such motor fuel dealer is a corporation or an association;
(D)(4) If such motor fuel dealer is a corporation organized
under the laws of another state, territory, or country, a
certified copy of the certificate or license issued by the Ohio
secretary of state showing that such corporation is authorized to
transact business in this state;
(E)(5) An agreement that the motor fuel dealer will assume
the liability and will pay the tax on any shipment of motor fuel
made into the state from any other state or foreign country and
sold or caused to be sold by such motor fuel dealer for delivery
to a person in this state who is not the holder of an unrevoked
motor fuel dealer's license.
An (C)(1) Except as provided in division (C)(2) of this
section, an application for a license shall be accompanied by a
bond, of the character stipulated and in the amount provided for
in section 5735.03 of the Revised Code, which shall be filed with
the commissioner.
(2) The tax commissioner may exempt a motor fuel dealer from
the requirements set forth in division (C)(1) of this section and
section 5753.03 of the Revised Code if the motor fuel dealer
primarily sells or distributes motor fuel upon which the motor
fuel taxes imposed under this chapter have been paid or are not
required to be paid by the motor fuel dealer.
(D) If any application for a license to transact business as
a motor fuel dealer in the state is filed by any person who has
had any license previously canceled for cause by the tax
commissioner; if the commissioner believes that such application
is not filed in good faith or that such application is filed as a
subterfuge by some person for the real person in interest who has
previously had any license canceled for cause by the tax
commissioner; or if the person has violated any provision of this
chapter, then the tax commissioner, after a hearing, of which the
applicant shall be given five days' notice in writing and at which
said applicant shall have the right to appear in person or by
counsel and present testimony, may refuse to issue to such person
a license to transact business as a motor fuel dealer in the
state.
(E) When the application in proper form has been accepted for
filing, and the bond accepted and approved, the commissioner shall
issue to such motor fuel dealer a license to transact business as
a motor fuel dealer in the state, subject to cancellation of such
license as provided by law.
(F) No person shall make a false or fraudulent statement on
the application required by this section.
Sec. 5735.03. Every Except as provided in division (C)(2) of
section 5735.02 of the Revised Code, every motor fuel dealer shall
file with the tax commissioner a surety bond of not less than five
thousand dollars, but may be required by the tax commissioner to
submit a surety bond equal to three months' average tax liability,
on a form approved by and with a surety satisfactory to the
commissioner, upon which the motor fuel dealer shall be the
principal obligor and the state shall be the obligee, conditioned
upon the prompt filing of true reports and the payment by the
motor fuel dealer to the treasurer of state of all motor fuel
excise taxes levied by the state, provided that after notice is
received from the state by the surety of the delinquency of any
taxes, if the surety pays the taxes within thirty days after the
receipt of the notice no penalties or interest shall be charged
against the surety. If the surety does not pay the taxes within
thirty days, but does pay within ninety days from the date of the
receipt of notice from the state by the surety, no penalty shall
be assessed against the surety but the surety shall pay interest
at the rate of six per cent per annum on the unpaid taxes from the
date the taxes are due and payable. If the surety does not pay
within ninety days then the surety shall be liable for interest
and penalties, and the tax commissioner may cancel all bonds
issued by the surety.
The commissioner may increase or reduce the amount of the
bond required to be filed by any licensed motor fuel dealer. If
the commissioner finds that it is necessary to increase the bond
to assure payment of the tax, the bond may be increased to an
amount equal to three months/average liability or fifty thousand
dollars, whichever is greater.
If liability upon the bond thus filed by the motor fuel
dealer with the commissioner is discharged or reduced, whether by
judgment rendered, payment made, or otherwise, or if, in the
opinion of the commissioner any surety on the bond theretofore
given has become unsatisfactory or unacceptable, the commissioner
may require the motor fuel dealer to file a new bond with
satisfactory sureties in the same amount, and if a new bond is not
filed the commissioner shall forthwith cancel the license of the
motor fuel dealer. If a new bond is furnished by the motor fuel
dealer, the commissioner shall cancel and surrender the bond of
the motor fuel dealer for which the new bond is substituted.
A surety on a bond furnished by a motor fuel dealer shall be
released from all liability to the state accruing on the bond
after the expiration of sixty days from the date upon which the
surety lodges with the commissioner a written request to be
released. The request shall not operate to release the surety from
any liability already accrued, or which accrues before the
expiration of the sixty-day period. The commissioner shall
promptly on receipt of notice of the request notify the motor fuel
dealer who furnished the bond and, unless the motor fuel dealer on
or before the expiration of the sixty-day period files with the
commissioner a new bond with a surety satisfactory to the
commissioner in the amount and form provided in this section, the
commissioner shall forthwith cancel the license of the motor fuel
dealer. If the new bond is furnished by said motor fuel dealer,
the commissioner shall cancel and surrender the bond of the motor
fuel dealer for which the new bond is substituted.
The commissioner, in lieu of any surety bond required by this
section, may accept a deposit by a motor fuel dealer of cash. Any
cash thus accepted shall be deposited with the treasurer of state
to be held by the treasurer of state, in the same manner as other
cash required to be deposited with the treasurer of state under
the laws of the state, for the account of such motor fuel dealer
and subject to any lawful claim of the state for any excise tax
upon motor fuel, and penalties and interest thereon levied by the
laws of this state. The state shall have a lien upon cash thus
deposited for the amount of any motor fuel excise taxes and
penalty and interest due to the state from the motor fuel dealer
in whose behalf they were deposited. The amount of cash to be thus
accepted shall in all respects be determined in the same manner as
provided in this section for the amount of surety bonds. Any cash
deposited shall be subject to levy upon execution to satisfy any
judgment secured in any action by the state to recover any motor
fuel excise taxes, and penalties and interest found to be due to
the state from such motor fuel dealer. The cash shall be released
by the treasurer of state upon certificate of the commissioner
that the license of the motor fuel dealer in whose behalf they
have been deposited has been canceled or that other security has
been accepted in lieu thereof, and that the state asserts no claim
thereto.
Sec. 5735.35. (A)(1) If any corporation or business trust
person, regardless of organizational form, required to file
reports and to remit taxes imposed under this chapter fails for
any reason to file such reports or pay such taxes, any employees
of the
corporation or business trust person having control or
supervision of, or charged with the responsibility of, filing
reports and making payments, or any officers or trustees of the
corporation or business trust person responsible for the execution
of the
corporation's or business trust's person's fiscal
responsibilities, are personally liable for the unpaid liability
resulting from the failure to file such reports or pay such taxes.
(2) The dissolution, termination, or bankruptcy of a
corporation or business trust person shall not discharge a
responsible officer's, shareholder's, member's, manager's,
employee's, or trustee's liability for failure of the person to
file reports or remit taxes. The sum due for the liability may be
collected by assessment in the manner provided in sections 5735.12
and 5735.121 of the Revised Code.
(B) If more than one person individual is personally liable
under this section for the unpaid tax of a corporation or business
trust person, then the liability of all such individuals shall be
joint and several.
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.
(u) Electronic publishing service is or is to be provided to
a consumer for use in business, except that such transactions
occurring between members of an affiliated group, as defined in
division (B)(3)(e) of this section, are not sales.
(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 primarily 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;
(10) All transactions in which "guaranteed auto protection"
is provided whereby a person promises to pay to the consumer the
difference between the amount the consumer receives from motor
vehicle insurance and the amount the consumer owes to a person
holding title to or a lien on the consumer's motor vehicle in the
event the consumer's motor vehicle suffers a total loss under the
terms of the motor vehicle insurance policy or is stolen and not
recovered, if the protection and its price are included in the
purchase or lease agreement;
(11)(a) Except as provided in division (B)(11)(b) of this
section, on and after October 1, 2009, all transactions by which
health care services are paid for, reimbursed, provided,
delivered, arranged for, or otherwise made available by a medicaid
health insuring corporation pursuant to the corporation's contract
with the state.
(b) If the centers for medicare and medicaid services of the
United States department of health and human services determines
that the taxation of transactions described in division (B)(11)(a)
of this section constitutes an impermissible health care-related
tax under section 1903(w) of the "Social Security Act," 49 Stat.
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations
adopted thereunder, the director of job and family services shall
notify the tax commissioner of that determination. Beginning with
the first day of the month following that notification, the
transactions described in division (B)(11)(a) of this section are
not sales for the purposes of this chapter or Chapter 5741. of the
Revised Code. The tax commissioner shall order that the collection
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026,
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code
shall cease for transactions occurring on or after that date.
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.
(7) In the case of a transaction for health care services
under division (B)(11) of this section, a medicaid health insuring
corporation is the consumer of such services. The purchase of such
services by a medicaid health insuring corporation is not subject
to the exception for resale under division (E)(1) of this section
or to the exemptions provided under divisions (B)(12), (18), (19),
and (22) of section 5739.02 of the Revised Code.
(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),
(3), and (4) 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.
(v) The dollar value of a gift card that is not sold by a
vendor or purchased by a consumer and that is redeemed by the
consumer in purchasing tangible personal property or services if
the vendor is not reimbursed and does not receive compensation
from a third party to cover all or part of the gift card value.
For the purposes of this division, a gift card is not sold by a
vendor or purchased by a consumer if it is distributed pursuant to
an awards, loyalty, or promotional program. Past and present
purchases of tangible personal property or services by the
consumer shall not be treated as consideration exchanged for a
gift card.
(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.
(4) In the case of transactions for health care services
under division (B)(11) of this section, "price" means the amount
of managed care premiums received each month by a medicaid health
insuring corporation.
(I) "Receipts" means the total amount of the prices of the
sales of vendors, provided that the dollar value of gift cards
distributed pursuant to an awards, loyalty, or promotional
program, and 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, except as otherwise provided in
division (G) of section 5739.09 of the Revised Code.
(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. In
this definition, "public utility" includes a citizen of the United
States holding, and required to hold, a certificate of public
convenience and necessity issued under 49 U.S.C. 41102.
(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.
For transactions occurring on or after the effective date of
the amendment of this section by H.B. 157 of the 127th general
assembly, December 21, 2007, "electronic information services"
does not include electronic publishing as defined in division
(LLL) of this section.
(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,
food production, or other agricultural purposes, including, but
not limited to, cattle, sheep, goats, swine, poultry, and captive
deer. "Livestock" does not include invertebrates, amphibians,
reptiles, 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.
(LLL) "Electronic publishing" means providing access to one
or more of the following primarily for business customers,
including the federal government or a state government or a
political subdivision thereof, to conduct research: news;
business, financial, legal, consumer, or credit materials;
editorials, columns, reader commentary, or features; photos or
images; archival or research material; legal notices, identity
verification, or public records; scientific, educational,
instructional, technical, professional, trade, or other literary
materials; or other similar information which has been gathered
and made available by the provider to the consumer in an
electronic format. Providing electronic publishing includes the
functions necessary for the acquisition, formatting, editing,
storage, and dissemination of data or information that is the
subject of a sale.
(MMM) "Medicaid health insuring corporation" means a health
insuring corporation that holds a certificate of authority under
Chapter 1751. of the Revised Code and is under contract with the
department of job and family services pursuant to section 5111.17
of the Revised Code.
(NNN) "Managed care premium" means any premium, capitation,
or other payment a medicaid health insuring corporation receives
for providing or arranging for the provision of health care
services to its members or enrollees residing in this state.
(OOO) "Captive deer" means deer and other cervidae that have
been legally acquired, or their offspring, that are privately
owned for agricultural or farming purposes.
(PPP) "Gift card" means a document, card, certificate, or
other record, whether tangible or intangible, that may be redeemed
by a consumer for a dollar value when making a purchase of
tangible personal property or services.
Sec. 5739.02. For the purpose of providing revenue with
which to meet the needs of the state, for the use of the general
revenue fund of the state, for the purpose of securing a thorough
and efficient system of common schools throughout the state, for
the purpose of affording revenues, in addition to those from
general property taxes, permitted under constitutional
limitations, and from other sources, for the support of local
governmental functions, and for the purpose of reimbursing the
state for the expense of administering this chapter, an excise tax
is hereby levied on each retail sale made in this state.
(A)(1) The tax shall be collected as provided in section
5739.025 of the Revised Code. The rate of the tax shall be five
and one-half per cent. The tax applies and is collectible when the
sale is made, regardless of the time when the price is paid or
delivered.
(2) In the case of the lease or rental, with a fixed term of
more than thirty days or an indefinite term with a minimum period
of more than thirty days, of any motor vehicles designed by the
manufacturer to carry a load of not more than one ton, watercraft,
outboard motor, or aircraft, or of any tangible personal property,
other than motor vehicles designed by the manufacturer to carry a
load of more than one ton, to be used by the lessee or renter
primarily for business purposes, the tax shall be collected by the
vendor at the time the lease or rental is consummated and shall be
calculated by the vendor on the basis of the total amount to be
paid by the lessee or renter under the lease agreement. If the
total amount of the consideration for the lease or rental includes
amounts that are not calculated at the time the lease or rental is
executed, the tax shall be calculated and collected by the vendor
at the time such amounts are billed to the lessee or renter. In
the case of an open-end lease or rental, the tax shall be
calculated by the vendor on the basis of the total amount to be
paid during the initial fixed term of the lease or rental, and for
each subsequent renewal period as it comes due. As used in this
division, "motor vehicle" has the same meaning as in section
4501.01 of the Revised Code, and "watercraft" includes an outdrive
unit attached to the watercraft.
A lease with a renewal clause and a termination penalty or
similar provision that applies if the renewal clause is not
exercised is presumed to be a sham transaction. In such a case,
the tax shall be calculated and paid on the basis of the entire
length of the lease period, including any renewal periods, until
the termination penalty or similar provision no longer applies.
The taxpayer shall bear the burden, by a preponderance of the
evidence, that the transaction or series of transactions is not a
sham transaction.
(3) Except as provided in division (A)(2) of this section, in
the case of a sale, the price of which consists in whole or in
part of the lease or rental of tangible personal property, the tax
shall be measured by the installments of that lease or rental.
(4) In the case of a sale of a physical fitness facility
service or recreation and sports club service, the price of which
consists in whole or in part of a membership for the receipt of
the benefit of the service, the tax applicable to the sale shall
be measured by the installments thereof.
(B) The tax does not apply to the following:
(1) Sales to the state or any of its political subdivisions,
or to any other state or its political subdivisions if the laws of
that state exempt from taxation sales made to this state and its
political subdivisions;
(2) Sales of food for human consumption off the premises
where sold;
(3) Sales of food sold to students only in a cafeteria,
dormitory, fraternity, or sorority maintained in a private,
public, or parochial school, college, or university;
(4) Sales of newspapers and of magazine subscriptions and
sales or transfers of magazines distributed as controlled
circulation publications;
(5) The furnishing, preparing, or serving of meals without
charge by an employer to an employee provided the employer records
the meals as part compensation for services performed or work
done;
(6) Sales of motor fuel upon receipt, use, distribution, or
sale of which in this state a tax is imposed by the law of this
state, but this exemption shall not apply to the sale of motor
fuel on which a refund of the tax is allowable under division (A)
of section 5735.14 of the Revised Code; and the tax commissioner
may deduct the amount of tax levied by this section applicable to
the price of motor fuel when granting a refund of motor fuel tax
pursuant to division (A) of section 5735.14 of the Revised Code
and shall cause the amount deducted to be paid into the general
revenue fund of this state;
(7) Sales of natural gas by a natural gas company, of water
by a water-works company, or of steam by a heating company, if in
each case the thing sold is delivered to consumers through pipes
or conduits, and all sales of communications services by a
telegraph company, all terms as defined in section 5727.01 of the
Revised Code, and sales of electricity delivered through wires;
(8) Casual sales by a person, or auctioneer employed directly
by the person to conduct such sales, except as to such sales of
motor vehicles, watercraft or outboard motors required to be
titled under section 1548.06 of the Revised Code, watercraft
documented with the United States coast guard, snowmobiles, and
all-purpose vehicles as defined in section 4519.01 of the Revised
Code;
(9)(a) Sales of services or tangible personal property, other
than motor vehicles, mobile homes, and manufactured homes, by
churches, organizations exempt from taxation under section
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit
organizations operated exclusively for charitable purposes as
defined in division (B)(12) of this section, provided that the
number of days on which such tangible personal property or
services, other than items never subject to the tax, are sold does
not exceed six in any calendar year, except as otherwise provided
in division (B)(9)(b) of this section. If the number of days on
which such sales are made exceeds six in any calendar year, the
church or organization shall be considered to be engaged in
business and all subsequent sales by it shall be subject to the
tax. In counting the number of days, all sales by groups within a
church or within an organization shall be considered to be sales
of that church or organization.
(b) The limitation on the number of days on which tax-exempt
sales may be made by a church or organization under division
(B)(9)(a) of this section does not apply to sales made by student
clubs and other groups of students of a primary or secondary
school, or a parent-teacher association, booster group, or similar
organization that raises money to support or fund curricular or
extracurricular activities of a primary or secondary school.
(c) Divisions (B)(9)(a) and (b) of this section do not apply
to sales by a noncommercial educational radio or television
broadcasting station.
(10) Sales not within the taxing power of this state under
the Constitution of the United States;
(11) Except for transactions that are sales under division
(B)(3)(r) of section 5739.01 of the Revised Code, the
transportation of persons or property, unless the transportation
is by a private investigation and security service;
(12) Sales of tangible personal property or services to
churches, to organizations exempt from taxation under section
501(c)(3) of the Internal Revenue Code of 1986, and to any other
nonprofit organizations operated exclusively for charitable
purposes in this state, no part of the net income of which inures
to the benefit of any private shareholder or individual, and no
substantial part of the activities of which consists of carrying
on propaganda or otherwise attempting to influence legislation;
sales to offices administering one or more homes for the aged or
one or more hospital facilities exempt under section 140.08 of the
Revised Code; and sales to organizations described in division (D)
of section 5709.12 of the Revised Code.
"Charitable purposes" means the relief of poverty; the
improvement of health through the alleviation of illness, disease,
or injury; the operation of an organization exclusively for the
provision of professional, laundry, printing, and purchasing
services to hospitals or charitable institutions; the operation of
a home for the aged, as defined in section 5701.13 of the Revised
Code; the operation of a radio or television broadcasting station
that is licensed by the federal communications commission as a
noncommercial educational radio or television station; the
operation of a nonprofit animal adoption service or a county
humane society; the promotion of education by an institution of
learning that maintains a faculty of qualified instructors,
teaches regular continuous courses of study, and confers a
recognized diploma upon completion of a specific curriculum; the
operation of a parent-teacher association, booster group, or
similar organization primarily engaged in the promotion and
support of the curricular or extracurricular activities of a
primary or secondary school; the operation of a community or area
center in which presentations in music, dramatics, the arts, and
related fields are made in order to foster public interest and
education therein; the production of performances in music,
dramatics, and the arts; or the promotion of education by an
organization engaged in carrying on research in, or the
dissemination of, scientific and technological knowledge and
information primarily for the public.
Nothing in this division shall be deemed to exempt sales to
any organization for use in the operation or carrying on of a
trade or business, or sales to a home for the aged for use in the
operation of independent living facilities as defined in division
(A) of section 5709.12 of the Revised Code.
(13) Building and construction materials and services sold to
construction contractors for incorporation into a structure or
improvement to real property under a construction contract with
this state or a political subdivision of this state, or with the
United States government or any of its agencies; building and
construction materials and services sold to construction
contractors for incorporation into a structure or improvement to
real property that are accepted for ownership by this state or any
of its political subdivisions, or by the United States government
or any of its agencies at the time of completion of the structures
or improvements; building and construction materials sold to
construction contractors for incorporation into a horticulture
structure or livestock structure for a person engaged in the
business of horticulture or producing livestock; building
materials and services sold to a construction contractor for
incorporation into a house of public worship or religious
education, or a building used exclusively for charitable purposes
under a construction contract with an organization whose purpose
is as described in division (B)(12) of this section; building
materials and services sold to a construction contractor for
incorporation into a building under a construction contract with
an organization exempt from taxation under section 501(c)(3) of
the Internal Revenue Code of 1986 when the building is to be used
exclusively for the organization's exempt purposes; building and
construction materials sold for incorporation into the original
construction of a sports facility under section 307.696 of the
Revised Code; building and construction materials and services
sold to a construction contractor for incorporation into real
property outside this state if such materials and services, when
sold to a construction contractor in the state in which the real
property is located for incorporation into real property in that
state, would be exempt from a tax on sales levied by that state;
and, until one calendar year after the construction of a
convention center that qualifies for property tax exemption under
section 5709.084 of the Revised Code is completed, building and
construction materials and services sold to a construction
contractor for incorporation into the real property comprising
that convention center;
(14) Sales of ships or vessels or rail rolling stock used or
to be used principally in interstate or foreign commerce, and
repairs, alterations, fuel, and lubricants for such ships or
vessels or rail rolling stock;
(15) Sales to persons primarily engaged in any of the
activities mentioned in division (B)(42)(a), (g), or (h) of this
section, to persons engaged in making retail sales, or to persons
who purchase for sale from a manufacturer tangible personal
property that was produced by the manufacturer in accordance with
specific designs provided by the purchaser, of packages, including
material, labels, and parts for packages, and of machinery,
equipment, and material for use primarily in packaging tangible
personal property produced for sale, including any machinery,
equipment, and supplies used to make labels or packages, to
prepare packages or products for labeling, or to label packages or
products, by or on the order of the person doing the packaging, or
sold at retail. "Packages" includes bags, baskets, cartons,
crates, boxes, cans, bottles, bindings, wrappings, and other
similar devices and containers, but does not include motor
vehicles or bulk tanks, trailers, or similar devices attached to
motor vehicles. "Packaging" means placing in a package. Division
(B)(15) of this section does not apply to persons engaged in
highway transportation for hire.
(16) Sales of food to persons using supplemental nutrition
assistance program benefits to purchase the food. As used in this
division, "food" has the same meaning as in 7 U.S.C. 2012 and
federal regulations adopted pursuant to the Food and Nutrition Act
of 2008.
(17) Sales to persons engaged in farming, agriculture,
horticulture, or floriculture, of tangible personal property for
use or consumption primarily in the production by farming,
agriculture, horticulture, or floriculture of other tangible
personal property for use or consumption primarily in the
production of tangible personal property for sale by farming,
agriculture, horticulture, or floriculture; or material and parts
for incorporation into any such tangible personal property for use
or consumption in production; and of tangible personal property
for such use or consumption in the conditioning or holding of
products produced by and for such use, consumption, or sale by
persons engaged in farming, agriculture, horticulture, or
floriculture, except where such property is incorporated into real
property;
(18) Sales of drugs for a human being that may be dispensed
only pursuant to a prescription; insulin as recognized in the
official United States pharmacopoeia; urine and blood testing
materials when used by diabetics or persons with hypoglycemia to
test for glucose or acetone; hypodermic syringes and needles when
used by diabetics for insulin injections; epoetin alfa when
purchased for use in the treatment of persons with medical
disease; hospital beds when purchased by hospitals, nursing homes,
or other medical facilities; and medical oxygen and medical
oxygen-dispensing equipment when purchased by hospitals, nursing
homes, or other medical facilities;
(19) Sales of prosthetic devices, durable medical equipment
for home use, or mobility enhancing equipment, when made pursuant
to a prescription and when such devices or equipment are for use
by a human being.
(20) Sales of emergency and fire protection vehicles and
equipment to nonprofit organizations for use solely in providing
fire protection and emergency services, including trauma care and
emergency medical services, for political subdivisions of the
state;
(21) Sales of tangible personal property manufactured in this
state, if sold by the manufacturer in this state to a retailer for
use in the retail business of the retailer outside of this state
and if possession is taken from the manufacturer by the purchaser
within this state for the sole purpose of immediately removing the
same from this state in a vehicle owned by the purchaser;
(22) Sales of services provided by the state or any of its
political subdivisions, agencies, instrumentalities, institutions,
or authorities, or by governmental entities of the state or any of
its political subdivisions, agencies, instrumentalities,
institutions, or authorities;
(23) Sales of motor vehicles to nonresidents of this state
under the circumstances described in division (B) of section
5739.029 of the Revised Code;
(24) Sales to persons engaged in the preparation of eggs for
sale of tangible personal property used or consumed directly in
such preparation, including such tangible personal property used
for cleaning, sanitizing, preserving, grading, sorting, and
classifying by size; packages, including material and parts for
packages, and machinery, equipment, and material for use in
packaging eggs for sale; and handling and transportation equipment
and parts therefor, except motor vehicles licensed to operate on
public highways, used in intraplant or interplant transfers or
shipment of eggs in the process of preparation for sale, when the
plant or plants within or between which such transfers or
shipments occur are operated by the same person. "Packages"
includes containers, cases, baskets, flats, fillers, filler flats,
cartons, closure materials, labels, and labeling materials, and
"packaging" means placing therein.
(25)(a) Sales of water to a consumer for residential use,
except the sale of bottled water, distilled water, mineral water,
carbonated water, or ice;
(b) Sales of water by a nonprofit corporation engaged
exclusively in the treatment, distribution, and sale of water to
consumers, if such water is delivered to consumers through pipes
or tubing.
(26) Fees charged for inspection or reinspection of motor
vehicles under section 3704.14 of the Revised Code;
(27) Sales to persons licensed to conduct a food service
operation pursuant to section 3717.43 of the Revised Code, of
tangible personal property primarily used directly for the
following:
(a) To prepare food for human consumption for sale;
(b) To preserve food that has been or will be prepared for
human consumption for sale by the food service operator, not
including tangible personal property used to display food for
selection by the consumer;
(c) To clean tangible personal property used to prepare or
serve food for human consumption for sale.
(28) Sales of animals by nonprofit animal adoption services
or county humane societies;
(29) Sales of services to a corporation described in division
(A) of section 5709.72 of the Revised Code, and sales of tangible
personal property that qualifies for exemption from taxation under
section 5709.72 of the Revised Code;
(30) Sales and installation of agricultural land tile, as
defined in division (B)(5)(a) of section 5739.01 of the Revised
Code;
(31) Sales and erection or installation of portable grain
bins, as defined in division (B)(5)(b) of section 5739.01 of the
Revised Code;
(32) The sale, lease, repair, and maintenance of, parts for,
or items attached to or incorporated in, motor vehicles that are
primarily used for transporting tangible personal property
belonging to others by a person engaged in highway transportation
for hire, except for packages and packaging used for the
transportation of tangible personal property;
(33) Sales to the state headquarters of any veterans'
organization in this state that is either incorporated and issued
a charter by the congress of the United States or is recognized by
the United States veterans administration, for use by the
headquarters;
(34) Sales to a telecommunications service vendor, mobile
telecommunications service vendor, or satellite broadcasting
service vendor of tangible personal property and services used
directly and primarily in transmitting, receiving, switching, or
recording any interactive, one- or two-way electromagnetic
communications, including voice, image, data, and information,
through the use of any medium, including, but not limited to,
poles, wires, cables, switching equipment, computers, and record
storage devices and media, and component parts for the tangible
personal property. The exemption provided in this division shall
be in lieu of all other exemptions under division (B)(42)(a) or
(n) of this section to which the vendor may otherwise be entitled,
based upon the use of the thing purchased in providing the
telecommunications, mobile telecommunications, or satellite
broadcasting service.
(35)(a) Sales where the purpose of the consumer is to use or
consume the things transferred in making retail sales and
consisting of newspaper inserts, catalogues, coupons, flyers, gift
certificates, or other advertising material that prices and
describes tangible personal property offered for retail sale.
(b) Sales to direct marketing vendors of preliminary
materials such as photographs, artwork, and typesetting that will
be used in printing advertising material; of printed matter that
offers free merchandise or chances to win sweepstake prizes and
that is mailed to potential customers with advertising material
described in division (B)(35)(a) of this section; and of equipment
such as telephones, computers, facsimile machines, and similar
tangible personal property primarily used to accept orders for
direct marketing retail sales.
(c) Sales of automatic food vending machines that preserve
food with a shelf life of forty-five days or less by refrigeration
and dispense it to the consumer.
For purposes of division (B)(35) of this section, "direct
marketing" means the method of selling where consumers order
tangible personal property by United States mail, delivery
service, or telecommunication and the vendor delivers or ships the
tangible personal property sold to the consumer from a warehouse,
catalogue distribution center, or similar fulfillment facility by
means of the United States mail, delivery service, or common
carrier.
(36) Sales to a person engaged in the business of
horticulture or producing livestock of materials to be
incorporated into a horticulture structure or livestock structure;
(37) Sales of personal computers, computer monitors, computer
keyboards, modems, and other peripheral computer equipment to an
individual who is licensed or certified to teach in an elementary
or a secondary school in this state for use by that individual in
preparation for teaching elementary or secondary school students;
(38) Sales to a professional racing team of any of the
following:
(a) Motor racing vehicles;
(b) Repair services for motor racing vehicles;
(c) Items of property that are attached to or incorporated in
motor racing vehicles, including engines, chassis, and all other
components of the vehicles, and all spare, replacement, and
rebuilt parts or components of the vehicles; except not including
tires, consumable fluids, paint, and accessories consisting of
instrumentation sensors and related items added to the vehicle to
collect and transmit data by means of telemetry and other forms of
communication.
(39) Sales of used manufactured homes and used mobile homes,
as defined in section 5739.0210 of the Revised Code, made on or
after January 1, 2000;
(40) Sales of tangible personal property and services to a
provider of electricity used or consumed directly and primarily in
generating, transmitting, or distributing electricity for use by
others, including property that is or is to be incorporated into
and will become a part of the consumer's production, transmission,
or distribution system and that retains its classification as
tangible personal property after incorporation; fuel or power used
in the production, transmission, or distribution of electricity;
energy conversion equipment as defined in section 5727.01 of the
Revised Code; and tangible personal property and services used in
the repair and maintenance of the production, transmission, or
distribution system, including only those motor vehicles as are
specially designed and equipped for such use. The exemption
provided in this division shall be in lieu of all other exemptions
in division (B)(42)(a) or (n) of this section to which a provider
of electricity may otherwise be entitled based on the use of the
tangible personal property or service purchased in generating,
transmitting, or distributing electricity.
(41) Sales to a person providing services under division
(B)(3)(r) of section 5739.01 of the Revised Code of tangible
personal property and services used directly and primarily in
providing taxable services under that section.
(42) Sales where the purpose of the purchaser is to do any of
the following:
(a) To incorporate the thing transferred as a material or a
part into tangible personal property to be produced for sale by
manufacturing, assembling, processing, or refining; or to use or
consume the thing transferred directly in producing tangible
personal property for sale by mining, including, without
limitation, the extraction from the earth of all substances that
are classed geologically as minerals, production of crude oil and
natural gas, or directly in the rendition of a public utility
service, except that the sales tax levied by this section shall be
collected upon all meals, drinks, and food for human consumption
sold when transporting persons. Persons engaged in rendering
services in the exploration for, and production of, crude oil and
natural gas for others are deemed engaged directly in the
exploration for, and production of, crude oil and natural gas.
This paragraph does not exempt from "retail sale" or "sales at
retail" the sale of tangible personal property that is to be
incorporated into a structure or improvement to real property.
(b) To hold the thing transferred as security for the
performance of an obligation of the vendor;
(c) To resell, hold, use, or consume the thing transferred as
evidence of a contract of insurance;
(d) To use or consume the thing directly in commercial
fishing;
(e) To incorporate the thing transferred as a material or a
part into, or to use or consume the thing transferred directly in
the production of, magazines distributed as controlled circulation
publications;
(f) To use or consume the thing transferred in the production
and preparation in suitable condition for market and sale of
printed, imprinted, overprinted, lithographic, multilithic,
blueprinted, photostatic, or other productions or reproductions of
written or graphic matter;
(g) To use the thing transferred, as described in section
5739.011 of the Revised Code, primarily in a manufacturing
operation to produce tangible personal property for sale;
(h) To use the benefit of a warranty, maintenance or service
contract, or similar agreement, as described in division (B)(7) of
section 5739.01 of the Revised Code, to repair or maintain
tangible personal property, if all of the property that is the
subject of the warranty, contract, or agreement would not be
subject to the tax imposed by this section;
(i) To use the thing transferred as qualified research and
development equipment;
(j) To use or consume the thing transferred primarily in
storing, transporting, mailing, or otherwise handling purchased
sales inventory in a warehouse, distribution center, or similar
facility when the inventory is primarily distributed outside this
state to retail stores of the person who owns or controls the
warehouse, distribution center, or similar facility, to retail
stores of an affiliated group of which that person is a member, or
by means of direct marketing. This division does not apply to
motor vehicles registered for operation on the public highways. As
used in this division, "affiliated group" has the same meaning as
in division (B)(3)(e) of section 5739.01 of the Revised Code and
"direct marketing" has the same meaning as in division (B)(35) of
this section.
(k) To use or consume the thing transferred to fulfill a
contractual obligation incurred by a warrantor pursuant to a
warranty provided as a part of the price of the tangible personal
property sold or by a vendor of a warranty, maintenance or service
contract, or similar agreement the provision of which is defined
as a sale under division (B)(7) of section 5739.01 of the Revised
Code;
(l) To use or consume the thing transferred in the production
of a newspaper for distribution to the public;
(m) To use tangible personal property to perform a service
listed in division (B)(3) of section 5739.01 of the Revised Code,
if the property is or is to be permanently transferred to the
consumer of the service as an integral part of the performance of
the service;
(n) To use or consume the thing transferred primarily in
producing tangible personal property for sale by farming,
agriculture, horticulture, or floriculture. Persons engaged in
rendering farming, agriculture, horticulture, or floriculture
services for others are deemed engaged primarily in farming,
agriculture, horticulture, or floriculture. This paragraph does
not exempt from "retail sale" or "sales at retail" the sale of
tangible personal property that is to be incorporated into a
structure or improvement to real property.
(o) To use or consume the thing transferred in acquiring,
formatting, editing, storing, and disseminating data or
information by electronic publishing.
As used in division (B)(42) of this section, "thing" includes
all transactions included in divisions (B)(3)(a), (b), and (e) of
section 5739.01 of the Revised Code.
(43) Sales conducted through a coin operated device that
activates vacuum equipment or equipment that dispenses water,
whether or not in combination with soap or other cleaning agents
or wax, to the consumer for the consumer's use on the premises in
washing, cleaning, or waxing a motor vehicle, provided no other
personal property or personal service is provided as part of the
transaction.
(44) Sales of replacement and modification parts for engines,
airframes, instruments, and interiors in, and paint for, aircraft
used primarily in a fractional aircraft ownership program, and
sales of services for the repair, modification, and maintenance of
such aircraft, and machinery, equipment, and supplies primarily
used to provide those services.
(45) Sales of telecommunications service that is used
directly and primarily to perform the functions of a call center.
As used in this division, "call center" means any physical
location where telephone calls are placed or received in high
volume for the purpose of making sales, marketing, customer
service, technical support, or other specialized business
activity, and that employs at least fifty individuals that engage
in call center activities on a full-time basis, or sufficient
individuals to fill fifty full-time equivalent positions.
(46) Sales by a telecommunications service vendor of 900
service to a subscriber. This division does not apply to
information services, as defined in division (FF) of section
5739.01 of the Revised Code.
(47) Sales of value-added non-voice data service. This
division does not apply to any similar service that is not
otherwise a telecommunications service.
(48)(a) Sales of machinery, equipment, and software to a
qualified direct selling entity for use in a warehouse or
distribution center primarily for storing, transporting, or
otherwise handling inventory that is held for sale to independent
salespersons who operate as direct sellers and that is held
primarily for distribution outside this state;
(b) As used in division (B)(48)(a) of this section:
(i) "Direct seller" means a person selling consumer products
to individuals for personal or household use and not from a fixed
retail location, including selling such product at in-home product
demonstrations, parties, and other one-on-one selling.
(ii) "Qualified direct selling entity" means an entity
selling to direct sellers at the time the entity enters into a tax
credit agreement with the tax credit authority pursuant to section
122.17 of the Revised Code, provided that the agreement was
entered into on or after January 1, 2007. Neither contingencies
relevant to the granting of, nor later developments with respect
to, the tax credit shall impair the status of the qualified direct
selling entity under division (B)(48) of this section after
execution of the tax credit agreement by the tax credit authority.
(c) Division (B)(48) of this section is limited to machinery,
equipment, and software first stored, used, or consumed in this
state within the period commencing June 24, 2008, and ending on
the date that is five years after that date.
(49) Sales of materials, parts, equipment, or engines used in
the repair or maintenance of aircraft or avionics systems of such
aircraft, and sales of repair, remodeling, replacement, or
maintenance services in this state performed on aircraft or on an
aircraft's avionics, engine, or component materials or parts. As
used in division (B)(49) of this section, "aircraft" means
aircraft of more than six thousand pounds maximum certified
takeoff weight or used exclusively in general aviation.
(50) Sales of full flight simulators that are used for pilot
or flight-crew training, sales of repair or replacement parts or
components, and sales of repair or maintenance services for such
full flight simulators. "Full flight simulator" means a replica of
a specific type, or make, model, and series of aircraft cockpit.
It includes the assemblage of equipment and computer programs
necessary to represent aircraft operations in ground and flight
conditions, a visual system providing an out-of-the-cockpit view,
and a system that provides cues at least equivalent to those of a
three-degree-of-freedom motion system, and has the full range of
capabilities of the systems installed in the device as described
in appendices A and B of part 60 of chapter 1 of title 14 of the
Code of Federal Regulations.
(51) Any transfer or lease of tangible personal property
between the state and a successful proposer in accordance with
sections 126.60 to 126.605 of the Revised Code, provided the
property is part of a project as defined in section 126.60 of the
Revised Code and the state retains ownership of the project or
part thereof that is being transferred or leased, between the
state and JobsOhio in accordance with section 4313.02 of the
Revised Code.
(C) For the purpose of the proper administration of this
chapter, and to prevent the evasion of the tax, it is presumed
that all sales made in this state are subject to the tax until the
contrary is established.
(D) The levy of this tax on retail sales of recreation and
sports club service shall not prevent a municipal corporation from
levying any tax on recreation and sports club dues or on any
income generated by recreation and sports club dues.
(E) The tax collected by the vendor from the consumer under
this chapter is not part of the price, but is a tax collection for
the benefit of the state, and of counties levying an additional
sales tax pursuant to section 5739.021 or 5739.026 of the Revised
Code and of transit authorities levying an additional sales tax
pursuant to section 5739.023 of the Revised Code. Except for the
discount authorized under section 5739.12 of the Revised Code and
the effects of any rounding pursuant to section 5703.055 of the
Revised Code, no person other than the state or such a county or
transit authority shall derive any benefit from the collection or
payment of the tax levied by this section or section 5739.021,
5739.023, or 5739.026 of the Revised Code.
Sec. 5739.021. (A) For the purpose of providing additional
general revenues for the county or supporting criminal and
administrative justice services in the county, or both, and to pay
the expenses of administering such levy, any county may levy a tax
at the rate of not more than one per cent at any multiple of
one-fourth of one per cent upon every retail sale made in the
county, except sales of watercraft and outboard motors required to
be titled pursuant to Chapter 1548. of the Revised Code and sales
of motor vehicles, and may increase the rate of an existing tax to
not more than one per cent at any multiple of one-fourth of one
per cent.
The tax shall be levied and the rate increased pursuant to a
resolution of the board of county commissioners. The resolution
shall state the purpose for which the tax is to be levied and the
number of years for which the tax is to be levied, or that it is
for a continuing period of time. If the tax is to be levied for
the purpose of providing additional general revenues and for the
purpose of supporting criminal and administrative justice
services, the resolution shall state the rate or amount of the tax
to be apportioned to each such purpose. The rate or amount may be
different for each year the tax is to be levied, but the rates or
amounts actually apportioned each year shall not be different from
that stated in the resolution for that year. If the resolution is
adopted as an emergency measure necessary for the immediate
preservation of the public peace, health, or safety, it must
receive an affirmative vote of all of the members of the board of
county commissioners and shall state the reasons for such
necessity. The board shall deliver a certified copy of the
resolution to the tax commissioner, not later than the sixty-fifth
day prior to the date on which the tax is to become effective,
which shall be the first day of the calendar quarter.
Prior to the adoption of any resolution under this section,
the board of county commissioners shall conduct two public
hearings on the resolution, the second hearing to be not less than
three nor more than ten days after the first. Notice of the date,
time, and place of the hearings shall be given by publication in a
newspaper of general circulation in the county, or as provided in
section 7.16 of the Revised Code, once a week on the same day of
the week for two consecutive weeks, the second publication being
not less than ten nor more than thirty days prior to the first
hearing.
Except as provided in division (B)(3) of this section, the
resolution shall be subject to a referendum as provided in
sections 305.31 to 305.41 of the Revised Code.
If a petition for a referendum is filed, the county auditor
with whom the petition was filed shall, within five days, notify
the board of county commissioners and the tax commissioner of the
filing of the petition by certified mail. If the board of
elections with which the petition was filed declares the petition
invalid, the board of elections, within five days, shall notify
the board of county commissioners and the tax commissioner of that
declaration by certified mail. If the petition is declared to be
invalid, the effective date of the tax or increased rate of tax
levied by this section shall be the first day of a calendar
quarter following the expiration of sixty-five days from the date
the commissioner receives notice from the board of elections that
the petition is invalid.
(B)(1) A resolution that is not adopted as an emergency
measure may direct the board of elections to submit the question
of levying the tax or increasing the rate of tax to the electors
of the county at a special election held on the date specified by
the board of county commissioners in the resolution, provided that
the election occurs not less than ninety days after a certified
copy of such resolution is transmitted to the board of elections
and the election is not held in February or August of any year.
Upon transmission of the resolution to the board of elections, the
board of county commissioners shall notify the tax commissioner in
writing of the levy question to be submitted to the electors. No
resolution adopted under this division shall go into effect unless
approved by a majority of those voting upon it, and, except as
provided in division (B)(3) of this section, shall become
effective on the first day of a calendar quarter following the
expiration of sixty-five days from the date the tax commissioner
receives notice from the board of elections of the affirmative
vote.
(2) A resolution that is adopted as an emergency measure
shall go into effect as provided in division (A) of this section,
but may direct the board of elections to submit the question of
repealing the tax or increase in the rate of the tax to the
electors of the county at the next general election in the county
occurring not less than ninety days after a certified copy of the
resolution is transmitted to the board of elections. Upon
transmission of the resolution to the board of elections, the
board of county commissioners shall notify the tax commissioner in
writing of the levy question to be submitted to the electors. The
ballot question shall be the same as that prescribed in section
5739.022 of the Revised Code. The board of elections shall notify
the board of county commissioners and the tax commissioner of the
result of the election immediately after the result has been
declared. If a majority of the qualified electors voting on the
question of repealing the tax or increase in the rate of the tax
vote for repeal of the tax or repeal of the increase, the board of
county commissioners, on the first day of a calendar quarter
following the expiration of sixty-five days after the date the
board and tax commissioner receive notice of the result of the
election, shall, in the case of a repeal of the tax, cease to levy
the tax, or, in the case of a repeal of an increase in the rate of
the tax, cease to levy the increased rate and levy the tax at the
rate at which it was imposed immediately prior to the increase in
rate.
(3) If a vendor that is registered with the central
electronic registration system provided for in section 5740.05 of
the Revised Code makes a sale in this state by printed catalog and
the consumer computed the tax on the sale based on local rates
published in the catalog, any tax levied or repealed or rate
changed under this section shall not apply to such a sale until
the first day of a calendar quarter following the expiration of
one hundred twenty days from the date of notice by the tax
commissioner pursuant to division (H) of this section.
(C) If a resolution is rejected at a referendum or if a
resolution adopted after January 1, 1982, as an emergency measure
is repealed by the electors pursuant to division (B)(2) of this
section or section 5739.022 of the Revised Code, then for one year
after the date of the election at which the resolution was
rejected or repealed the board of county commissioners may not
adopt any resolution authorized by this section as an emergency
measure.
(D) The board of county commissioners, at any time while a
tax levied under this section is in effect, may by resolution
reduce the rate at which the tax is levied to a lower rate
authorized by this section. Any reduction in the rate at which the
tax is levied shall be made effective on the first day of a
calendar quarter next following the sixty-fifth day after a
certified copy of the resolution is delivered to the tax
commissioner.
(E) The tax on every retail sale subject to a tax levied
pursuant to this section shall be in addition to the tax levied by
section 5739.02 of the Revised Code and any tax levied pursuant to
section 5739.023 or 5739.026 of the Revised Code.
A county that levies a tax pursuant to this section shall
levy a tax at the same rate pursuant to section 5741.021 of the
Revised Code.
The additional tax levied by the county shall be collected
pursuant to section 5739.025 of the Revised Code. If the
additional tax or some portion thereof is levied for the purpose
of criminal and administrative justice services, the revenue from
the tax, or the amount or rate apportioned to that purpose, shall
be credited to a special fund created in the county treasury for
receipt of that revenue.
Any tax levied pursuant to this section is subject to the
exemptions provided in section 5739.02 of the Revised Code and in
addition shall not be applicable to sales not within the taxing
power of a county under the Constitution of the United States or
the Ohio Constitution.
(F) For purposes of this section, a copy of a resolution is
"certified" when it contains a written statement attesting that
the copy is a true and exact reproduction of the original
resolution.
(G) If a board of commissioners intends to adopt a resolution
to levy a tax in whole or in part for the purpose of criminal and
administrative justice services, the board shall prepare and make
available at the first public hearing at which the resolution is
considered a statement containing the following information:
(1) For each of the two preceding fiscal years, the amount of
expenditures made by the county from the county general fund for
the purpose of criminal and administrative justice services;
(2) For the fiscal year in which the resolution is adopted,
the board's estimate of the amount of expenditures to be made by
the county from the county general fund for the purpose of
criminal and administrative justice services;
(3) For each of the two fiscal years after the fiscal year in
which the resolution is adopted, the board's preliminary plan for
expenditures to be made from the county general fund for the
purpose of criminal and administrative justice services, both
under the assumption that the tax will be imposed for that purpose
and under the assumption that the tax would not be imposed for
that purpose, and for expenditures to be made from the special
fund created under division (E) of this section under the
assumption that the tax will be imposed for that purpose.
The board shall prepare the statement and the preliminary
plan using the best information available to the board at the time
the statement is prepared. Neither the statement nor the
preliminary plan shall be used as a basis to challenge the
validity of the tax in any court of competent jurisdiction, nor
shall the statement or preliminary plan limit the authority of the
board to appropriate, pursuant to section 5705.38 of the Revised
Code, an amount different from that specified in the preliminary
plan.
(H) Upon receipt from a board of county commissioners of a
certified copy of a resolution required by division (A) or (D) of
this section, or from the board of elections of a notice of the
results of an election required by division (A) or (B)(1) or (2)
of this section, the tax commissioner shall provide notice of a
tax rate change in a manner that is reasonably accessible to all
affected vendors. The commissioner shall provide this notice at
least sixty days prior to the effective date of the rate change.
The commissioner, by rule, may establish the method by which
notice will be provided.
(I) As used in this section, "criminal and administrative
justice services" means the exercise by the county sheriff of all
powers and duties vested in that office by law; the exercise by
the county prosecuting attorney of all powers and duties vested in
that office by law; the exercise by any court in the county of all
powers and duties vested in that court; the exercise by the clerk
of the court of common pleas, any clerk of a municipal court
having jurisdiction throughout the county, or the clerk of any
county court of all powers and duties vested in the clerk by law
except, in the case of the clerk of the court of common pleas, the
titling of motor vehicles or watercraft pursuant to Chapter 1548.
or 4505. of the Revised Code; the exercise by the county coroner
of all powers and duties vested in that office by law; making
payments to any other public agency or a private, nonprofit
agency, the purposes of which in the county include the diversion,
adjudication, detention, or rehabilitation of criminals or
juvenile offenders; the operation and maintenance of any detention
facility, as defined in section 2921.01 of the Revised Code; and
the construction, acquisition, equipping, or repair of such a
detention facility, including the payment of any debt charges
incurred in the issuance of securities pursuant to Chapter 133. of
the Revised Code for the purpose of constructing, acquiring,
equipping, or repairing such a facility.
Sec. 5739.023. (A)(1) For the purpose of providing
additional general revenues for a transit authority and paying the
expenses of administering such levy, any transit authority as
defined in division (U) of section 5739.01 of the Revised Code may
levy a tax upon every retail sale made in the territory of the
transit authority, except sales of watercraft and outboard motors
required to be titled pursuant to Chapter 1548. of the Revised
Code and sales of motor vehicles, at a rate of not more than one
and one-half per cent at any multiple of one-fourth of one per
cent and may increase the existing rate of tax to not more than
one and one-half per cent at any multiple of one-fourth of one per
cent. The tax shall be levied and the rate increased pursuant to a
resolution of the legislative authority of the transit authority
and a certified copy of the resolution shall be delivered by the
fiscal officer to the board of elections as provided in section
3505.071 of the Revised Code and to the tax commissioner. The
resolution shall specify the number of years for which the tax is
to be in effect or that the tax is for a continuing period of
time, and the date of the election on the question of the tax
pursuant to section 306.70 of the Revised Code. The board of
elections shall certify the results of the election to the transit
authority and tax commissioner.
(2) Except as provided in division (C) of this section, the
tax levied by the resolution shall become effective on the first
day of a calendar quarter next following the sixty-fifth day
following the date the tax commissioner receives from the board of
elections the certification of the results of the election on the
question of the tax.
(B) The legislative authority may, at any time while the tax
is in effect, by resolution fix the rate of the tax at any rate
authorized by this section and not in excess of that approved by
the voters pursuant to section 306.70 of the Revised Code. Except
as provided in division (C) of this section, any change in the
rate of the tax shall be made effective on the first day of a
calendar quarter next following the sixty-fifth day following the
date the tax commissioner receives the certification of the
resolution; provided, that in any case where bonds, or notes in
anticipation of bonds, of a regional transit authority have been
issued under section 306.40 of the Revised Code without a vote of
the electors while the tax proposed to be reduced was in effect,
the board of trustees of the regional transit authority shall
continue to levy and collect under authority of the original
election authorizing the tax a rate of tax that the board of
trustees reasonably estimates will produce an amount in that year
equal to the amount of principal of and interest on those bonds as
is payable in that year.
(C) Upon receipt from the board of elections of the
certification of the results of the election required by division
(A) of this section, or from the legislative authority of the
certification of a resolution under division (B) of this section,
the tax commissioner shall provide notice of a tax rate change in
a manner that is reasonably accessible to all affected vendors.
The commissioner shall provide this notice at least sixty days
prior to the effective date of the rate change. The commissioner,
by rule, may establish the method by which notice will be
provided.
(D) If a vendor that is registered with the central
electronic registration system provided for in section 5740.05 of
the Revised Code makes a sale in this state by printed catalog and
the consumer computed the tax on the sale based on local rates
published in the catalog, any tax levied or rate changed under
this section shall not apply to such a sale until the first day of
a calendar quarter following the expiration of one hundred twenty
days from the date of notice by the tax commissioner pursuant to
division (C) of this section.
(E) The tax on every retail sale subject to a tax levied
pursuant to this section is in addition to the tax levied by
section 5739.02 of the Revised Code and any tax levied pursuant to
section 5739.021 or 5739.026 of the Revised Code.
(F) The additional tax levied by the transit authority shall
be collected pursuant to section 5739.025 of the Revised Code.
(G) Any tax levied pursuant to this section is subject to the
exemptions provided in section 5739.02 of the Revised Code and in
addition shall not be applicable to sales not within the taxing
power of a transit authority under the constitution of the United
States or the constitution of this state.
(H) The rate of a tax levied under this section is subject to
reduction under section 5739.028 of the Revised Code, if a ballot
question is approved by voters pursuant to that section.
Sec. 5739.026. (A) A board of county commissioners may levy
a tax of one-fourth or one-half of one per cent on every retail
sale in the county, except sales of watercraft and outboard motors
required to be titled pursuant to Chapter 1548. of the Revised
Code and sales of motor vehicles, and may increase an existing
rate of one-fourth of one per cent to one-half of one per cent, to
pay the expenses of administering the tax and, except as provided
in division (A)(6) of this section, for any one or more of the
following purposes provided that the aggregate levy for all such
purposes does not exceed one-half of one per cent:
(1) To provide additional revenues for the payment of bonds
or notes issued in anticipation of bonds issued by a convention
facilities authority established by the board of county
commissioners under Chapter 351. of the Revised Code and to
provide additional operating revenues for the convention
facilities authority;
(2) To provide additional revenues for a transit authority
operating in the county;
(3) To provide additional revenue for the county's general
fund;
(4) To provide additional revenue for permanent improvements
within the county to be distributed by the community improvements
board in accordance with section 307.283 and to pay principal,
interest, and premium on bonds issued under section 307.284 of the
Revised Code;
(5) To provide additional revenue for the acquisition,
construction, equipping, or repair of any specific permanent
improvement or any class or group of permanent improvements, which
improvement or class or group of improvements shall be enumerated
in the resolution required by division (D) of this section, and to
pay principal, interest, premium, and other costs associated with
the issuance of bonds or notes in anticipation of bonds issued
pursuant to Chapter 133. of the Revised Code for the acquisition,
construction, equipping, or repair of the specific permanent
improvement or class or group of permanent improvements;
(6) To provide revenue for the implementation and operation
of a 9-1-1 system in the county. If the tax is levied or the rate
increased exclusively for such purpose, the tax shall not be
levied or the rate increased for more than five years. At the end
of the last year the tax is levied or the rate increased, any
balance remaining in the special fund established for such purpose
shall remain in that fund and be used exclusively for such purpose
until the fund is completely expended, and, notwithstanding
section 5705.16 of the Revised Code, the board of county
commissioners shall not petition for the transfer of money from
such special fund, and the tax commissioner shall not approve such
a petition.
If the tax is levied or the rate increased for such purpose
for more than five years, the board of county commissioners also
shall levy the tax or increase the rate of the tax for one or more
of the purposes described in divisions (A)(1) to (5) of this
section and shall prescribe the method for allocating the revenues
from the tax each year in the manner required by division (C) of
this section.
(7) To provide additional revenue for the operation or
maintenance of a detention facility, as that term is defined under
division (F) of section 2921.01 of the Revised Code;
(8) To provide revenue to finance the construction or
renovation of a sports facility, but only if the tax is levied for
that purpose in the manner prescribed by section 5739.028 of the
Revised Code.
As used in division (A)(8) of this section:
(a) "Sports facility" means a facility intended to house
major league professional athletic teams.
(b) "Constructing" or "construction" includes providing
fixtures, furnishings, and equipment.
(9) To provide additional revenue for the acquisition of
agricultural easements, as defined in section 5301.67 of the
Revised Code; to pay principal, interest, and premium on bonds
issued under section 133.60 of the Revised Code; and for the
supervision and enforcement of agricultural easements held by the
county;
(10) To provide revenue for the provision of ambulance,
paramedic, or other emergency medical services.
Pursuant to section 755.171 of the Revised Code, a board of
county commissioners may pledge and contribute revenue from a tax
levied for the purpose of division (A)(5) of this section to the
payment of debt charges on bonds issued under section 755.17 of
the Revised Code.
The rate of tax shall be a multiple of one-fourth of one per
cent, unless a portion of the rate of an existing tax levied under
section 5739.023 of the Revised Code has been reduced, and the
rate of tax levied under this section has been increased, pursuant
to section 5739.028 of the Revised Code, in which case the
aggregate of the rates of tax levied under this section and
section 5739.023 of the Revised Code shall be a multiple of
one-fourth of one per cent. The tax shall be levied and the rate
increased pursuant to a resolution adopted by a majority of the
members of the board. The board shall deliver a certified copy of
the resolution to the tax commissioner, not later than the
sixty-fifth day prior to the date on which the tax is to become
effective, which shall be the first day of a calendar quarter.
Prior to the adoption of any resolution to levy the tax or to
increase the rate of tax exclusively for the purpose set forth in
division (A)(3) of this section, the board of county commissioners
shall conduct two public hearings on the resolution, the second
hearing to be no fewer than three nor more than ten days after the
first. Notice of the date, time, and place of the hearings shall
be given by publication in a newspaper of general circulation in
the county, or as provided in section 7.16 of the Revised Code,
once a week on the same day of the week for two consecutive weeks.
The second publication shall be no fewer than ten nor more than
thirty days prior to the first hearing. Except as provided in
division (E) of this section, the resolution shall be subject to a
referendum as provided in sections 305.31 to 305.41 of the Revised
Code. If the resolution is adopted as an emergency measure
necessary for the immediate preservation of the public peace,
health, or safety, it must receive an affirmative vote of all of
the members of the board of county commissioners and shall state
the reasons for the necessity.
If the tax is for more than one of the purposes set forth in
divisions (A)(1) to (7), (9), and (10) of this section, or is
exclusively for one of the purposes set forth in division (A)(1),
(2), (4), (5), (6), (7), (9), or (10) of this section, the
resolution shall not go into effect unless it is approved by a
majority of the electors voting on the question of the tax.
(B) The board of county commissioners shall adopt a
resolution under section 351.02 of the Revised Code creating the
convention facilities authority, or under section 307.283 of the
Revised Code creating the community improvements board, before
adopting a resolution levying a tax for the purpose of a
convention facilities authority under division (A)(1) of this
section or for the purpose of a community improvements board under
division (A)(4) of this section.
(C)(1) If the tax is to be used for more than one of the
purposes set forth in divisions (A)(1) to (7), (9), and (10) of
this section, the board of county commissioners shall establish
the method that will be used to determine the amount or proportion
of the tax revenue received by the county during each year that
will be distributed for each of those purposes, including, if
applicable, provisions governing the reallocation of a convention
facilities authority's allocation if the authority is dissolved
while the tax is in effect. The allocation method may provide that
different proportions or amounts of the tax shall be distributed
among the purposes in different years, but it shall clearly
describe the method that will be used for each year. Except as
otherwise provided in division (C)(2) of this section, the
allocation method established by the board is not subject to
amendment during the life of the tax.
(2) Subsequent to holding a public hearing on the proposed
amendment, the board of county commissioners may amend the
allocation method established under division (C)(1) of this
section for any year, if the amendment is approved by the
governing board of each entity whose allocation for the year would
be reduced by the proposed amendment. In the case of a tax that is
levied for a continuing period of time, the board may not so amend
the allocation method for any year before the sixth year that the
tax is in effect.
(a) If the additional revenues provided to the convention
facilities authority are pledged by the authority for the payment
of convention facilities authority revenue bonds for as long as
such bonds are outstanding, no reduction of the authority's
allocation of the tax shall be made for any year except to the
extent that the reduced authority allocation, when combined with
the authority's other revenues pledged for that purpose, is
sufficient to meet the debt service requirements for that year on
such bonds.
(b) If the additional revenues provided to the county are
pledged by the county for the payment of bonds or notes described
in division (A)(4) or (5) of this section, for as long as such
bonds or notes are outstanding, no reduction of the county's or
the community improvements board's allocation of the tax shall be
made for any year, except to the extent that the reduced county or
community improvements board allocation is sufficient to meet the
debt service requirements for that year on such bonds or notes.
(c) If the additional revenues provided to the transit
authority are pledged by the authority for the payment of revenue
bonds issued under section 306.37 of the Revised Code, for as long
as such bonds are outstanding, no reduction of the authority's
allocation of tax shall be made for any year, except to the extent
that the authority's reduced allocation, when combined with the
authority's other revenues pledged for that purpose, is sufficient
to meet the debt service requirements for that year on such bonds.
(d) If the additional revenues provided to the county are
pledged by the county for the payment of bonds or notes issued
under section 133.60 of the Revised Code, for so long as the bonds
or notes are outstanding, no reduction of the county's allocation
of the tax shall be made for any year, except to the extent that
the reduced county allocation is sufficient to meet the debt
service requirements for that year on the bonds or notes.
(D)(1) The resolution levying the tax or increasing the rate
of tax shall state the rate of the tax or the rate of the
increase; the purpose or purposes for which it is to be levied;
the number of years for which it is to be levied or that it is for
a continuing period of time; the allocation method required by
division (C) of this section; and if required to be submitted to
the electors of the county under division (A) of this section, the
date of the election at which the proposal shall be submitted to
the electors of the county, which shall be not less than ninety
days after the certification of a copy of the resolution to the
board of elections and, if the tax is to be levied exclusively for
the purpose set forth in division (A)(3) of this section, shall
not occur in February or August of any year. Upon certification of
the resolution to the board of elections, the board of county
commissioners shall notify the tax commissioner in writing of the
levy question to be submitted to the electors. If approved by a
majority of the electors, the tax shall become effective on the
first day of a calendar quarter next following the sixty-fifth day
following the date the board of county commissioners and tax
commissioner receive from the board of elections the certification
of the results of the election, except as provided in division (E)
of this section.
(2)(a) A resolution specifying that the tax is to be used
exclusively for the purpose set forth in division (A)(3) of this
section that is not adopted as an emergency measure may direct the
board of elections to submit the question of levying the tax or
increasing the rate of the tax to the electors of the county at a
special election held on the date specified by the board of county
commissioners in the resolution, provided that the election occurs
not less than ninety days after the resolution is certified to the
board of elections and the election is not held in February or
August of any year. Upon certification of the resolution to the
board of elections, the board of county commissioners shall notify
the tax commissioner in writing of the levy question to be
submitted to the electors. No resolution adopted under division
(D)(2)(a) of this section shall go into effect unless approved by
a majority of those voting upon it and, except as provided in
division (E) of this section, not until the first day of a
calendar quarter following the expiration of sixty-five days from
the date the tax commissioner receives notice from the board of
elections of the affirmative vote.
(b) A resolution specifying that the tax is to be used
exclusively for the purpose set forth in division (A)(3) of this
section that is adopted as an emergency measure shall become
effective as provided in division (A) of this section, but may
direct the board of elections to submit the question of repealing
the tax or increase in the rate of the tax to the electors of the
county at the next general election in the county occurring not
less than ninety days after the resolution is certified to the
board of elections. Upon certification of the resolution to the
board of elections, the board of county commissioners shall notify
the tax commissioner in writing of the levy question to be
submitted to the electors. The ballot question shall be the same
as that prescribed in section 5739.022 of the Revised Code. The
board of elections shall notify the board of county commissioners
and the tax commissioner of the result of the election immediately
after the result has been declared. If a majority of the qualified
electors voting on the question of repealing the tax or increase
in the rate of the tax vote for repeal of the tax or repeal of the
increase, the board of county commissioners, on the first day of a
calendar quarter following the expiration of sixty-five days after
the date the board and tax commissioner received notice of the
result of the election, shall, in the case of a repeal of the tax,
cease to levy the tax, or, in the case of a repeal of an increase
in the rate of the tax, cease to levy the increased rate and levy
the tax at the rate at which it was imposed immediately prior to
the increase in rate.
(c) A board of county commissioners, by resolution, may
reduce the rate of a tax levied exclusively for the purpose set
forth in division (A)(3) of this section to a lower rate
authorized by this section. Any such reduction shall be made
effective on the first day of the calendar quarter next following
the sixty-fifth day after the tax commissioner receives a
certified copy of the resolution from the board.
(E) If a vendor that is registered with the central
electronic registration system provided for in section 5740.05 of
the Revised Code makes a sale in this state by printed catalog and
the consumer computed the tax on the sale based on local rates
published in the catalog, any tax levied or repealed or rate
changed under this section shall not apply to such a sale until
the first day of a calendar quarter following the expiration of
one hundred twenty days from the date of notice by the tax
commissioner pursuant to division (G) of this section.
(F) The tax levied pursuant to this section shall be in
addition to the tax levied by section 5739.02 of the Revised Code
and any tax levied pursuant to section 5739.021 or 5739.023 of the
Revised Code.
A county that levies a tax pursuant to this section shall
levy a tax at the same rate pursuant to section 5741.023 of the
Revised Code.
The additional tax levied by the county shall be collected
pursuant to section 5739.025 of the Revised Code.
Any tax levied pursuant to this section is subject to the
exemptions provided in section 5739.02 of the Revised Code and in
addition shall not be applicable to sales not within the taxing
power of a county under the Constitution of the United States or
the Ohio Constitution.
(G) Upon receipt from a board of county commissioners of a
certified copy of a resolution required by division (A) of this
section, or from the board of elections a notice of the results of
an election required by division (D)(1), (2)(a), (b), or (c) of
this section, the tax commissioner shall provide notice of a tax
rate change in a manner that is reasonably accessible to all
affected vendors. The commissioner shall provide this notice at
least sixty days prior to the effective date of the rate change.
The commissioner, by rule, may establish the method by which
notice will be provided.
Sec. 5739.04. If modification of a county's jurisdictional
boundaries or a transit authority's territory results in a change
in the tax rate levied under section 5739.021, 5739.023, or
5739.026 of the Revised Code, the tax commissioner, within thirty
days of such change, shall notify any vendor that is registered
with the central electronic registration system provided for in
section 5740.05 of the Revised Code or the vendor's certified
service provider, if the vendor has selected one, of such change.
The rate change shall not apply to sales made by such vendor until
the first day of a calendar quarter following the expiration of
sixty days from the date of notice by the tax commissioner.
Sec. 5739.17. (A) No person shall engage in making retail
sales subject to a tax imposed by or pursuant to section 5739.02,
5739.021, 5739.023, or 5739.026 of the Revised Code as a business
without having a license therefor, except as otherwise provided in
divisions (A)(1), (2), and (3) of this section.
(1) In the dissolution of a partnership by death, the
surviving partner may operate under the license of the partnership
for a period of sixty days.
(2) The heirs or legal representatives of deceased persons,
and receivers and trustees in bankruptcy, appointed by any
competent authority, may operate under the license of the person
so succeeded in possession.
(3) Two or more persons who are not partners may operate a
single place of business under one license. In such case neither
the retirement of any such person from business at that place of
business, nor the entrance of any person, under an existing
arrangement, shall affect the license or require the issuance of a
new license, unless the person retiring from the business is the
individual named on the vendor's license.
Except as otherwise provided in this section, each applicant
for a license shall make out and deliver to the county auditor of
each county in which the applicant desires to engage in business,
upon a blank to be furnished by such auditor for that purpose, a
statement showing the name of the applicant, each place of
business in the county where the applicant will make retail sales,
the nature of the business, and any other information the tax
commissioner reasonably prescribes in the form of a statement
prescribed by the commissioner.
At the time of making the application, the applicant shall
pay into the county treasury a license fee in the sum of
twenty-five dollars for each fixed place of business in the county
that will be the situs of retail sales. Upon receipt of the
application and exhibition of the county treasurer's receipt,
showing the payment of the license fee, the county auditor shall
issue to the applicant a license for each fixed place of business
designated in the application, authorizing the applicant to engage
in business at that location. If
(B) If a vendor's identity changes, the vendor shall apply
for a new license. If a vendor wishes to move an existing fixed
place of business to a new location within the same county, the
vendor shall obtain a new vendor's license or submit a request to
the tax commissioner to transfer the existing vendor's license to
the new location. When the new location has been verified as being
within the same county, the commissioner shall authorize the
transfer and notify the county auditor of the change of location.
If a vendor wishes to move an existing fixed place of business to
another county, the vendor's license shall not transfer and the
vendor shall obtain a new vendor's license from the county in
which the business is to be located. The form of the license shall
be prescribed by the commissioner. The fees collected shall be
credited to the general fund of the county. If a vendor fails to
notify the commissioner of a change of location of its fixed place
of business or that its business has closed, the commissioner may
cancel the vendor's license if ordinary mail sent to the location
shown on the license is returned because of an undeliverable
address.
(C) The tax commissioner may establish or participate in a
registration system whereby any vendor may obtain a vendor's
license by submitting to the commissioner a vendor's license
application and a license fee of twenty-five dollars for each
fixed place of business at which the vendor intends to make retail
sales. Under this registration system, the commissioner shall
issue a vendor's license to the applicant on behalf of the county
auditor of the county in which the applicant desires to engage in
business, and shall forward a copy of the application and license
fee to that county. All such license fees received by the
commissioner for the issuance of vendor's licenses shall be
deposited into the vendor's license application fund, which is
hereby created in the state treasury. The commissioner shall
certify to the director of budget and management within ten
business days after the close of a month the license fees to be
transmitted to each county from the vendor's license application
fund for vendor's license applications received by the
commissioner during that month. License fees transmitted to a
county for which payment was not received by the commissioner may
be netted against a future distribution to that county, including
distributions made pursuant to section 5739.21 of the Revised
Code.
A vendor that makes retail sales subject to tax under Chapter
5739. of the Revised Code pursuant to a permit issued by the
division of liquor control shall obtain a vendor's license in the
identical name and for the identical address as shown on the
permit.
Except as otherwise provided in this section, if a vendor has
no fixed place of business and sells from a vehicle, each vehicle
intended to be used within a county constitutes a place of
business for the purpose of this section.
(B)(D) As used in this division section, "transient vendor"
means any person who makes sales of tangible personal property
from vending machines located on land owned by others, who leases
titled motor vehicles, titled watercraft, or titled outboard
motors, who effectuates leases that are taxed according to
division (A)(2) of section 5739.02 of the Revised Code, or who, in
the usual course of the person's business, transports inventory,
stock of goods, or similar tangible personal property to a
temporary place of business or temporary exhibition, show, fair,
flea market, or similar event in a county in which the person has
no fixed place of business, for the purpose of making retail sales
of such property. A "temporary place of business" means any public
or quasi-public place including, but not limited to, a hotel,
rooming house, storeroom, building, part of a building, tent,
vacant lot, railroad car, or motor vehicle that is temporarily
occupied for the purpose of making retail sales of goods to the
public. A place of business is not temporary if the same person
conducted business at the place continuously for more than six
months or occupied the premises as the person's permanent
residence for more than six months, or if the person intends it to
be a fixed place of business.
Any transient vendor, in lieu of obtaining a vendor's license
under division (A) of this section for counties in which the
transient vendor has no fixed place of business, may apply to the
tax commissioner, on a form prescribed by the commissioner, for a
transient vendor's license. The transient vendor's license
authorizes the transient vendor to make retail sales in any county
in which the transient vendor does not maintain a fixed place of
business. Any holder of a transient vendor's license shall not be
required to obtain a separate vendor's license from the county
auditor in that county. Upon the commissioner's determination that
an applicant is a transient vendor, the applicant shall pay a
license fee in the amount of twenty-five dollars, at which time
the tax commissioner shall issue the license. The tax commissioner
may require a vendor to be licensed as a transient vendor if, in
the opinion of the commissioner, such licensing is necessary for
the efficient administration of the tax.
Any holder of a valid transient vendor's license may make
retail sales at a temporary place of business or temporary
exhibition, show, fair, flea market, or similar event, held
anywhere in the state without complying with any provision of
section 311.37 of the Revised Code. Any holder of a valid vendor's
license may make retail sales as a transient vendor at a temporary
place of business or temporary exhibition, show, fair, flea
market, or similar event held in any county in which the vendor
maintains a fixed place of business for which the vendor holds a
vendor's license without obtaining a transient vendor's license.
(C) As used in this division, "service vendor" means any
person who, in the usual course of the person's business, sells
services described in division (B)(3)(e), (f), (g), (h), (i), (j),
(k), (l), (m), (p), or (t) of section 5739.01 of the Revised Code.
Every service vendor shall make application to the tax
commissioner for a service vendor's license. Each applicant shall
pay a license fee in the amount of twenty-five dollars. Upon the
commissioner's determination that an applicant is a service vendor
and payment of the fee, the commissioner shall issue the applicant
a service vendor's license.
Only sales described in division (B)(3)(e), (f), (g), (h),
(i), (j), (k), (l), (m), (p), or (t) of section 5739.01 of the
Revised Code may be made under authority of a service vendor's
license, and that license authorizes sales to be made at any place
in this state. Any service vendor who makes sales of other
services or tangible personal property subject to the sales tax
also shall be licensed under division (A), (B), or (D) of this
section.
(D) As used in this division, "delivery vendor" means any
vendor who engages in one or more of the activities described in
divisions (D)(1) to (4) of this section, and who maintains no
store, showroom, or similar fixed place of business or other
location where merchandise regularly is offered for sale or
displayed or shown in catalogs for selection or pick-up by
consumers, or where consumers bring goods for repair or other
service.
(1) The vendor makes retail sales of tangible personal
property;
(2) The vendor rents or leases, at retail, tangible personal
property, except titled motor vehicles, titled watercraft, or
titled outboard motors;
(3) The vendor provides a service, at retail, described in
division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the
Revised Code; or
(4) The vendor makes retail sales of warranty, maintenance or
service contracts, or similar agreements as described in division
(B)(7) of section 5739.01 of the Revised Code.
A transient vendor or a seller registered pursuant to section
5741.17 of the Revised Code is not a delivery vendor.
Delivery vendors shall apply to the tax commissioner, on a
form prescribed by the commissioner, for a delivery vendor's
license. Each applicant shall pay a license fee of twenty-five
dollars for each delivery vendor's license, to be credited to the
general revenue fund. Upon the commissioner's determination that
the applicant is a delivery vendor, the commissioner shall issue
the license. A delivery vendor's license authorizes retail sales
to be made throughout the state. All sales of the vendor must be
reported under the delivery license. The commissioner may require
a vendor to be licensed as a delivery vendor if, in the opinion of
the commissioner, such licensing is necessary for the efficient
administration of the tax. The commissioner shall not issue a
delivery vendor license to a vendor who holds a license issued
under division (A) of this section.
(E) Any transient vendor who is issued a license pursuant to
this section shall display the license or a copy of it
prominently, in plain view, at every place of business of the
transient vendor. Every
(F) No owner, organizer, or promoter who operates a fair,
flea market, show, exhibition, convention, or similar event at
which transient vendors are present shall fail to keep a
comprehensive record of all such vendors, listing the vendor's
name, permanent address, vendor's license number, and the type of
goods sold. Such records shall be kept for four years and shall be
open to inspection by the tax commissioner.
(G) The commissioner may issue additional types of licenses
if required to efficiently administer the tax imposed by this
chapter.
Sec. 5741.08. If modification of a county's jurisdictional
boundaries or a transit authority's territory results in a change
in the tax rate levied under section 5741.021, 5741.022, or
5741.023 of the Revised Code, the tax commissioner, within thirty
days of such change, shall notify any seller that is registered
with the central electronic registration system provided for in
section 5740.05 of the Revised Code or the seller's certified
service provider, if the seller has selected one, of such change.
The rate change shall not apply until the first day of a calendar
quarter following the expiration of sixty days from the date of
notice by the tax commissioner.
Sec. 5743.20. No person shall sell any cigarettes both as a
retail dealer and as a wholesale dealer at the same place of
business. No person other than a licensed wholesale dealer shall
sell cigarettes to a licensed retail dealer. No retail dealer
shall purchase cigarettes from any person other than a licensed
wholesale dealer.
Subject to section 5743.031 of the Revised Code, a licensed
wholesale dealer may not sell cigarettes to any person in this
state other than a licensed retail dealer, except a licensed
wholesale dealer may sell cigarettes to another licensed wholesale
dealer if the tax commissioner has authorized the sale of the
cigarettes between those wholesale dealers and the wholesale
dealer that sells the cigarettes received them directly from a
licensed manufacturer or licensed importer.
The tax commissioner shall adopt rules governing sales of
cigarettes between licensed wholesale dealers, including rules
establishing criteria for authorizing such sales.
No manufacturer or importer shall sell cigarettes to any
person in this state other than to a licensed wholesale dealer or
licensed importer. No importer shall purchase cigarettes from any
person other than a licensed manufacturer or licensed importer.
A retail dealer may purchase other tobacco products only from
a licensed distributor. A licensed distributor may sell tobacco
products only to a retail dealer, except a licensed distributor
may sell tobacco products to another licensed distributor if the
tax commissioner has authorized the sale of the tobacco products
between those distributors and the distributor that sells the
tobacco products received them directly from a manufacturer or
importer of tobacco products.
The tax commissioner may adopt rules governing sales of
tobacco products between licensed distributors, including rules
establishing criteria for authorizing such sales.
The identities of cigarette manufacturers and importers,
licensed cigarette wholesalers, licensed distributors of other
tobacco products, and registered manufacturers, and importers, and
brokers of other tobacco products are subject to public
disclosure. The tax commissioner shall maintain an alphabetical
list of all such manufacturers, importers, wholesalers, and
distributors, and brokers, shall post the list on a web site
accessible to the public through the internet, and shall
periodically update the web site posting.
As used in this section, "licensed" means the manufacturer,
importer, wholesale dealer, or distributor holds a current and
valid license issued under section 5743.15 or 5743.61 of the
Revised Code, and "registered" means registered with the
tax
commissioner under section 5743.66 of the Revised Code.
Sec. 5743.61. (A) Except as otherwise provided in this
division, no distributor shall engage in the business of
distributing tobacco products within this state without having a
license issued by the department of taxation to engage in that
business. On the dissolution of a partnership by death, the
surviving partner may operate under the license of the partnership
until the expiration of the license, and the heirs or legal
representatives of deceased persons, and receivers and trustees in
bankruptcy appointed by any competent authority, may operate under
the license of the person succeeded in possession by the heir,
representative, receiver, or trustee in bankruptcy if the partner
or successor notifies the department of taxation of the
dissolution or succession within thirty days after the dissolution
or succession.
(B)(1) Each applicant for a license to engage in the business
of distributing tobacco products, annually, on or before the first
day of February, shall make and deliver to the tax commissioner,
upon a form furnished by the commissioner for that purpose, a
statement showing the name of the applicant, each physical place
from which the applicant distributes to distributors, retail
dealers, or wholesale dealers, and any other information the
commissioner considers necessary for the administration of
sections 5743.51 to 5743.66 of the Revised Code.
(2) At the time of making the license application, the
applicant shall pay an application fee of one thousand dollars for
each place listed on the application where the applicant proposes
to carry on that business. The fee charged for the application
shall accompany the application and shall be made payable to the
treasurer of state for deposit into the cigarette tax enforcement
fund.
(3) Upon receipt of the application and payment of any
licensing fee required by this section, the commissioner shall
issue to the applicant a license for each place of distribution
designated in the application authorizing the applicant to engage
in business at that location for one year commencing on the first
day of February. For licenses issued after the first day of
February, the license application fee shall be reduced
proportionately by the remainder of the twelve-month period for
which the license is issued, except that the application fee
required to be paid under this section shall be not less than two
hundred dollars. If the original license is lost, destroyed, or
defaced, a duplicate license may be obtained from the commissioner
upon payment of a license replacement fee of twenty-five dollars.
(C) The holder of a tobacco products license may transfer the
license to a place of business on condition that the licensee's
ownership and business structure remains unchanged and the
licensee applies to the commissioner for the transfer on a form
issued by the commissioner, and pays a transfer fee of twenty-five
dollars.
(D) If a distributor fails to file forms as required under
Chapter 1346. or section 5743.52 of the Revised Code or pay the
tax due for two consecutive periods or three periods during any
twelve-month period, the commissioner may suspend the license
issued to the distributor under this section. The suspension is
effective ten days after the commissioner notifies the distributor
of the suspension in writing personally or by certified mail. The
commissioner shall lift the suspension when the distributor files
the delinquent forms and pays the tax due, including any
penalties, interest, and additional charges. The commissioner may
refuse to issue the annual renewal of the license required by this
section and may refuse to issue a new license for the same
location until all delinquent forms are filed and outstanding
taxes are paid. This division does not apply to any unpaid or
underpaid tax liability that is the subject of a petition or
appeal filed pursuant to section 5743.56, 5717.02, or 5717.04 of
the Revised Code.
(E)(1) The tax commissioner may impose a penalty of up to one
thousand dollars on any person found to be engaging in the
business of distributing tobacco products without a license as
required by this section.
(2) Any person engaging in the business of distributing
tobacco products without a license as required by this section
shall comply with divisions (B)(1) and (2) of this section within
ten days after being notified of the requirement to do so. Failure
to comply with division (E)(2) of this section subjects a person
to penalties imposed under section 5743.99 of the Revised Code.
Sec. 5743.66. (A) Each manufacturer, or importer, or broker
of tobacco products shall register with the tax commissioner
before it sells or distributes tobacco products to distributors in
this state, and, upon the request of the tax commissioner, shall
provide complete information on sales made to distributors in this
state and a current list of prices charged for tobacco products
sold to distributors in this state.
(B) On or before the last day of each month, every
manufacturer, or importer, or broker of tobacco products shall
file a report with the commissioner listing all sales of tobacco
products to distributors located in this state during the
preceding month and any other information the commissioner finds
necessary for the proper administration of sections 5743.51 to
5743.66 of the Revised Code.
Sec. 5747.082. (A) As used in this section:
(1) "Electronic technology" means electronic technology
acceptable to the tax commissioner under division (B) of this
section.
(2) "Original tax return" means any report, return, or other
tax document required to be filed under this chapter for the
purpose of reporting the taxes due under, and withholdings
required by, this chapter. "Original tax return" does not include
an amended return or any declaration or form required by or filed
in connection with section 5747.09 of the Revised Code.
(3) "Related member" has the same meaning as in section
5733.042 of the Revised Code.
(4) "Tax return preparer" means any person that operates a
business that prepares, or directly or indirectly employs another
person to prepare, for a taxpayer an original tax return in
exchange for compensation or remuneration from the taxpayer or the
taxpayer's related member. With respect to the preparation of a
return or application for refund under this chapter, "tax return
preparer" does not include an individual who performs only one or
more of the following activities:
(a) Furnishes typing, reproducing, or other mechanical
assistance;
(b) Prepares an application for refund or a return on behalf
of an employer by whom the individual is regularly and
continuously employed, or on behalf of an officer or employee of
that employer;
(c) Prepares as a fiduciary an application for refund or a
return;
(d) Prepares an application for refund or a return for a
taxpayer in response to a notice of deficiency issued to the
taxpayer or the taxpayer's related member, or in response to a
waiver of restriction after the commencement of an audit of the
taxpayer or the taxpayer's related member.
(B) Divisions (C) and (D) of this section apply to the filing
of original tax returns that are due in a calendar year only if
the tax commissioner, by the last day of the calendar year
immediately preceding the calendar year in which such returns are
due, has published on the department of taxation's official
internet web site at least one method of electronic technology
acceptable to the commissioner for filing such returns.
(C) A tax return preparer that prepares more than
seventy-five original tax returns during any calendar year that
begins on or after January 1, 2008 ends before January 1, 2013, or
that prepares more than eleven original tax returns during any
calendar year that begins on or after January 1, 2013, shall,
beginning January 1, 2010, use electronic technology to file with
the tax commissioner all original tax returns prepared by the tax
return preparer. This division does not apply to a tax return
preparer for a in any calendar year that ends before January 1,
2013, if, during the previous calendar year, the tax return
preparer prepared no more than twenty-five original tax returns.
This division does not apply to a tax return preparer in any
calendar year that begins on or after January 1, 2013, if, during
the previous calendar year, the tax return preparer prepared not
more than ten original tax returns.
(D) If a tax return preparer required by this section to
submit original tax returns by electronic technology files an
original tax return by some means other than by electronic
technology, the tax commissioner shall impose a penalty of fifty
dollars for each return, in excess of seventy-five in a calendar
year 2010, 2011, or 2012, or in excess of eleven in any calendar
year thereafter, that is not filed by electronic technology. Upon
good cause shown by the tax return preparer, the tax commissioner
may waive all or any portion of the penalty or may refund all or
any portion of the penalty the tax return preparer has paid.
Sec. 5747.11. (A) The tax commissioner shall refund to
employers, qualifying entities, or taxpayers, with respect to any
tax imposed under section 5733.41, 5747.02, or 5747.41, or Chapter
5748. of the Revised Code:
(1) Overpayments of more than one dollar;
(2) Amounts in excess of one dollar paid illegally or
erroneously;
(3) Amounts in excess of one dollar paid on an illegal,
erroneous, or excessive assessment.
(B) Except as otherwise provided under divisions (D)(E) and
(E)(F) of this section, applications for refund shall be filed
with the tax commissioner, on the form prescribed by the
commissioner, within four years from the date of the illegal,
erroneous, or excessive payment of the tax, or within any
additional period allowed by division (B)(3)(b) of section
5747.05, division (B) of section 5747.10, division (A) of section
5747.13, or division (C) of section 5747.45 of the Revised Code.
On filing of the refund application, the commissioner shall
determine the amount of refund due and certify such amount to the
director of budget and management and treasurer of state for
payment from the tax refund fund created by section 5703.052 of
the Revised Code. Payment shall be made as provided in division
(C) of section 126.35 of the Revised Code.
(C) If a taxpayer claims a refundable credit against the tax
imposed under section 5747.02 of the Revised Code, any payment
that is refunded to the taxpayer as a result of the allowance of
the credit shall not be considered an illegal, erroneous, or
excessive payment for purposes of division (B) of this section. No
interest shall be allowed on an amount refunded to a taxpayer to
the extent that the refund results from the allowance of a
refundable credit.
(D)(1) Interest shall be allowed and paid upon any illegal or
erroneous assessment in excess of one dollar in respect of the tax
imposed under section 5747.02 or Chapter 5748. of the Revised Code
at the rate per annum prescribed by section 5703.47 of the Revised
Code from the date of the payment of the illegal or erroneous
assessment until the date the refund of such amount is paid. If
such refund results from the filing of a return or report, or the
payment accompanying such return or report, by an employer or
taxpayer, rather than from an assessment by the commissioner, such
interest shall run from a period ninety days after the final
filing date of the annual return until the date the refund is
paid.
(2) Interest shall be allowed and paid at the rate per annum
prescribed by section 5703.47 of the Revised Code upon any
overpayment in excess of one dollar in respect of the tax imposed
under section 5747.02 or Chapter 5748. of the Revised Code from
the date of the overpayment until the date of the refund of the
overpayment, except that if any overpayment is refunded within
ninety days after the final filing date of the annual return or
ninety days after the return is filed, whichever is later, no
interest shall be allowed on such overpayment. If the overpayment
results from the carryback of a net operating loss or net capital
loss to a previous taxable year, the overpayment is deemed not to
have been made prior to the filing date, including any extension
thereof, for the taxable year in which the net operating loss or
net capital loss arises. For purposes of the payment of interest
on overpayments, no amount of tax, for any taxable year, shall be
treated as having been paid before the date on which the tax
return for that year was due without regard to any extension of
time for filing such return.
(3) Interest shall be allowed at the rate per annum
prescribed by section 5703.47 of the Revised Code on amounts
refunded with respect to the taxes imposed under sections 5733.41
and 5747.41 of the Revised Code. The interest shall run from
whichever of the following days is the latest until the day the
refund is paid: the day the illegal, erroneous, or excessive
payment was made; the ninetieth day after the final day the annual
report was required to be filed under section 5747.42 of the
Revised Code; or the ninetieth day after the day that report was
filed.
(D)(4) If an amount refunded with respect to any tax imposed
under section 5733.41, 5747.02, or 5747.41 or Chapter 5748. of the
Revised Code results from the filing of an amended return or
report, or the payment accompanying an amended return or report,
by an employer or taxpayer, interest on the amount refunded shall
run from the date the amended return or report was filed, as
determined under division (H) of section 5747.08 of the Revised
Code, until the date the refund is paid.
(E) "Ninety days" shall be substituted for "four years" in
division (B) of this section if the taxpayer satisfies both of the
following conditions:
(1) The taxpayer has applied for a refund based in whole or
in part upon section 5747.059 of the Revised Code;
(2) The taxpayer asserts that either the imposition or
collection of the tax imposed or charged by this chapter or any
portion of such tax violates the Constitution of the United States
or the Constitution of Ohio.
(E)(F)(1) Division (E)(F)(2) of this section applies only if
all of the following conditions are satisfied:
(a) A qualifying entity pays an amount of the tax imposed by
section 5733.41 or 5747.41 of the Revised Code;
(b) The taxpayer is a qualifying investor as to that
qualifying entity;
(c) The taxpayer did not claim the credit provided for in
section 5747.059 of the Revised Code as to the tax described in
division (E)(F)(1)(a) of this section;
(d) The four-year period described in division (B) of this
section has ended as to the taxable year for which the taxpayer
otherwise would have claimed that credit.
(2) A taxpayer shall file an application for refund pursuant
to division (E)(F) of this section within one year after the date
the payment described in division (E)(F)(1)(a) of this section is
made. An application filed under division (E)(F)(2) of this
section shall claim refund only of overpayments resulting from the
taxpayer's failure to claim the credit described in division
(E)(F)(1)(c) of this section. Nothing in division (E)(F) of this
section shall be construed to relieve a taxpayer from complying
with division (A)(16) of section 5747.01 of the Revised Code.
Sec. 5751.01. As used in this chapter:
(A) "Person" means, but is not limited to, individuals,
combinations of individuals of any form, receivers, assignees,
trustees in bankruptcy, firms, companies, joint-stock companies,
business trusts, estates, partnerships, limited liability
partnerships, limited liability companies, associations, joint
ventures, clubs, societies, for-profit corporations, S
corporations, qualified subchapter S subsidiaries, qualified
subchapter S trusts, trusts, entities that are disregarded for
federal income tax purposes, and any other entities.
(B) "Consolidated elected taxpayer" means a group of two or
more persons treated as a single taxpayer for purposes of this
chapter as the result of an election made under section 5751.011
of the Revised Code.
(C) "Combined taxpayer" means a group of two or more persons
treated as a single taxpayer for purposes of this chapter under
section 5751.012 of the Revised Code.
(D) "Taxpayer" means any person, or any group of persons in
the case of a consolidated elected taxpayer or combined taxpayer
treated as one taxpayer, required to register or pay tax under
this chapter. "Taxpayer" does not include excluded persons.
(E) "Excluded person" means any of the following:
(1) Any person with not more than one hundred fifty thousand
dollars of taxable gross receipts during the calendar year.
Division (E)(1) of this section does not apply to a person that is
a member of a consolidated elected taxpayer;
(2) A public utility that paid the excise tax imposed by
section 5727.24 or 5727.30 of the Revised Code based on one or
more measurement periods that include the entire tax period under
this chapter, except that a public utility that is a combined
company is a taxpayer with regard to the following gross receipts:
(a) Taxable gross receipts directly attributed to a public
utility activity, but not directly attributed to an activity that
is subject to the excise tax imposed by section 5727.24 or 5727.30
of the Revised Code;
(b) Taxable gross receipts that cannot be directly attributed
to any activity, multiplied by a fraction whose numerator is the
taxable gross receipts described in division (E)(2)(a) of this
section and whose denominator is the total taxable gross receipts
that can be directly attributed to any activity;
(c) Except for any differences resulting from the use of an
accrual basis method of accounting for purposes of determining
gross receipts under this chapter and the use of the cash basis
method of accounting for purposes of determining gross receipts
under section 5727.24 of the Revised Code, the gross receipts
directly attributed to the activity of a natural gas company shall
be determined in a manner consistent with division (D) of section
5727.03 of the Revised Code.
As used in division (E)(2) of this section, "combined
company" and "public utility" have the same meanings as in section
5727.01 of the Revised Code.
(3) A financial institution, as defined in section 5725.01 of
the Revised Code, that paid the corporation franchise tax charged
by division (D) of section 5733.06 of the Revised Code based on
one or more taxable years that include the entire tax period under
this chapter;
(4) A dealer in intangibles, as defined in section 5725.01 of
the Revised Code, that paid the dealer in intangibles tax levied
by division (D) of section 5707.03 of the Revised Code based on
one or more measurement periods that include the entire tax period
under this chapter;
(5) A financial holding company as defined in the "Bank
Holding Company Act," 12 U.S.C. 1841(p);
(6) A bank holding company as defined in the "Bank Holding
Company Act," 12 U.S.C. 1841(a);
(7) A savings and loan holding company as defined in the
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging
only in activities or investments permissible for a financial
holding company under 12 U.S.C. 1843(k);
(8) A person directly or indirectly owned by one or more
financial institutions, financial holding companies, bank holding
companies, or savings and loan holding companies described in
division (E)(3), (5), (6), or (7) of this section that is engaged
in activities permissible for a financial holding company under 12
U.S.C. 1843(k), except that any such person held pursuant to
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person
directly or indirectly owned by one or more insurance companies
described in division (E)(9) of this section that is authorized to
do the business of insurance in this state.
For the purposes of division (E)(8) of this section, a person
owns another person under the following circumstances:
(a) In the case of corporations issuing capital stock, one
corporation owns another corporation if it owns fifty per cent or
more of the other corporation's capital stock with current voting
rights;
(b) In the case of a limited liability company, one person
owns the company if that person's membership interest, as defined
in section 1705.01 of the Revised Code, is fifty per cent or more
of the combined membership interests of all persons owning such
interests in the company;
(c) In the case of a partnership, trust, or other
unincorporated business organization other than a limited
liability company, one person owns the organization if, under the
articles of organization or other instrument governing the affairs
of the organization, that person has a beneficial interest in the
organization's profits, surpluses, losses, or distributions of
fifty per cent or more of the combined beneficial interests of all
persons having such an interest in the organization;
(d) In the case of multiple ownership, the ownership
interests of more than one person may be aggregated to meet the
fifty per cent ownership tests in this division only when each
such owner is described in division (E)(3), (5), (6), or (7) of
this section and is engaged in activities permissible for a
financial holding company under 12 U.S.C. 1843(k) or is a person
directly or indirectly owned by one or more insurance companies
described in division (E)(9) of this section that is authorized to
do the business of insurance in this state.
(9) A domestic insurance company or foreign insurance
company, as defined in section 5725.01 of the Revised Code, that
paid the insurance company premiums tax imposed by section 5725.18
or Chapter 5729. of the Revised Code based on one or more
measurement periods that include the entire tax period under this
chapter;
(10) A person that solely facilitates or services one or more
securitizations or similar transactions for any person described
in division (E)(3), (5), (6), (7), (8), or (9) of this section.
For purposes of this division, "securitization" means transferring
one or more assets to one or more persons and then issuing
securities backed by the right to receive payment from the asset
or assets so transferred.
(11) Except as otherwise provided in this division, a
pre-income tax trust as defined in division (FF)(4) of section
5747.01 of the Revised Code and any pass-through entity of which
such pre-income tax trust owns or controls, directly, indirectly,
or constructively through related interests, more than five per
cent of the ownership or equity interests. If the pre-income tax
trust has made a qualifying pre-income tax trust election under
division (FF)(3) of section 5747.01 of the Revised Code, then the
trust and the pass-through entities of which it owns or controls,
directly, indirectly, or constructively through related interests,
more than five per cent of the ownership or equity interests,
shall not be excluded persons for purposes of the tax imposed
under section 5751.02 of the Revised Code.
(12) Nonprofit organizations or the state and its agencies,
instrumentalities, or political subdivisions.
(F) Except as otherwise provided in divisions (F)(2), (3),
and (4) of this section, "gross receipts" means the total amount
realized by a person, without deduction for the cost of goods sold
or other expenses incurred, that contributes to the production of
gross income of the person, including the fair market value of any
property and any services received, and any debt transferred or
forgiven as consideration.
(1) The following are examples of gross receipts:
(a) Amounts realized from the sale, exchange, or other
disposition of the taxpayer's property to or with another;
(b) Amounts realized from the taxpayer's performance of
services for another;
(c) Amounts realized from another's use or possession of the
taxpayer's property or capital;
(d) Any combination of the foregoing amounts.
(2) "Gross receipts" excludes the following amounts:
(a) Interest income except interest on credit sales;
(b) Dividends and distributions from corporations, and
distributive or proportionate shares of receipts and income from a
pass-through entity as defined under section 5733.04 of the
Revised Code;
(c) Receipts from the sale, exchange, or other disposition of
an asset described in section 1221 or 1231 of the Internal Revenue
Code, without regard to the length of time the person held the
asset. Notwithstanding section 1221 of the Internal Revenue Code,
receipts from hedging transactions also are excluded to the extent
the transactions are entered into primarily to protect a financial
position, such as managing the risk of exposure to (i) foreign
currency fluctuations that affect assets, liabilities, profits,
losses, equity, or investments in foreign operations; (ii)
interest rate fluctuations; or (iii) commodity price fluctuations.
As used in division (F)(2)(c) of this section, "hedging
transaction" has the same meaning as used in section 1221 of the
Internal Revenue Code and also includes transactions accorded
hedge accounting treatment under statement of financial accounting
standards number 133 of the financial accounting standards board.
For the purposes of division (F)(2)(c) of this section, the actual
transfer of title of real or tangible personal property to another
entity is not a hedging transaction.
(d) Proceeds received attributable to the repayment,
maturity, or redemption of the principal of a loan, bond, mutual
fund, certificate of deposit, or marketable instrument;
(e) The principal amount received under a repurchase
agreement or on account of any transaction properly characterized
as a loan to the person;
(f) Contributions received by a trust, plan, or other
arrangement, any of which is described in section 501(a) of the
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter
1, Subchapter (D) of the Internal Revenue Code applies;
(g) Compensation, whether current or deferred, and whether in
cash or in kind, received or to be received by an employee, former
employee, or the employee's legal successor for services rendered
to or for an employer, including reimbursements received by or for
an individual for medical or education expenses, health insurance
premiums, or employee expenses, or on account of a dependent care
spending account, legal services plan, any cafeteria plan
described in section 125 of the Internal Revenue Code, or any
similar employee reimbursement;
(h) Proceeds received from the issuance of the taxpayer's own
stock, options, warrants, puts, or calls, or from the sale of the
taxpayer's treasury stock;
(i) Proceeds received on the account of payments from
insurance policies, except those proceeds received for the loss of
business revenue;
(j) Gifts or charitable contributions received; membership
dues received by trade, professional, homeowners', or condominium
associations; and payments received for educational courses,
meetings, meals, or similar payments to a trade, professional, or
other similar association; and fundraising receipts received by
any person when any excess receipts are donated or used
exclusively for charitable purposes;
(k) Damages received as the result of litigation in excess of
amounts that, if received without litigation, would be gross
receipts;
(l) Property, money, and other amounts received or acquired
by an agent on behalf of another in excess of the agent's
commission, fee, or other remuneration;
(m) Tax refunds, other tax benefit recoveries, and
reimbursements for the tax imposed under this chapter made by
entities that are part of the same combined taxpayer or
consolidated elected taxpayer group, and reimbursements made by
entities that are not members of a combined taxpayer or
consolidated elected taxpayer group that are required to be made
for economic parity among multiple owners of an entity whose tax
obligation under this chapter is required to be reported and paid
entirely by one owner, pursuant to the requirements of sections
5751.011 and 5751.012 of the Revised Code;
(o) Contributions to capital;
(p) Sales or use taxes collected as a vendor or an
out-of-state seller on behalf of the taxing jurisdiction from a
consumer or other taxes the taxpayer is required by law to collect
directly from a purchaser and remit to a local, state, or federal
tax authority;
(q) In the case of receipts from the sale of cigarettes or
tobacco products by a wholesale dealer, retail dealer,
distributor, manufacturer, or seller, all as defined in section
5743.01 of the Revised Code, an amount equal to the federal and
state excise taxes paid by any person on or for such cigarettes or
tobacco products under subtitle E of the Internal Revenue Code or
Chapter 5743. of the Revised Code;
(r) In the case of receipts from the sale of motor fuel by a
licensed motor fuel dealer, licensed retail dealer, or licensed
permissive motor fuel dealer, all as defined in section 5735.01 of
the Revised Code, an amount equal to federal and state excise
taxes paid by any person on such motor fuel under section 4081 of
the Internal Revenue Code or Chapter 5735. of the Revised Code;
(s) In the case of receipts from the sale of beer or
intoxicating liquor, as defined in section 4301.01 of the Revised
Code, by a person holding a permit issued under Chapter 4301. or
4303. of the Revised Code, an amount equal to federal and state
excise taxes paid by any person on or for such beer or
intoxicating liquor under subtitle E of the Internal Revenue Code
or Chapter 4301. or 4305. of the Revised Code;
(t) Receipts realized by a new motor vehicle dealer or used
motor vehicle dealer, as defined in section 4517.01 of the Revised
Code, from the sale or other transfer of a motor vehicle, as
defined in that section, to another motor vehicle dealer for the
purpose of resale by the transferee motor vehicle dealer, but only
if the sale or other transfer was based upon the transferee's need
to meet a specific customer's preference for a motor vehicle;
(u) Receipts from a financial institution described in
division (E)(3) of this section for services provided to the
financial institution in connection with the issuance, processing,
servicing, and management of loans or credit accounts, if such
financial institution and the recipient of such receipts have at
least fifty per cent of their ownership interests owned or
controlled, directly or constructively through related interests,
by common owners;
(v) Receipts realized from administering anti-neoplastic
drugs and other cancer chemotherapy, biologicals, therapeutic
agents, and supportive drugs in a physician's office to patients
with cancer;
(w) Funds received or used by a mortgage broker that is not a
dealer in intangibles, other than fees or other consideration,
pursuant to a table-funding mortgage loan or warehouse-lending
mortgage loan. Terms used in division (F)(2)(w) of this section
have the same meanings as in section 1322.01 of the Revised Code,
except "mortgage broker" means a person assisting a buyer in
obtaining a mortgage loan for a fee or other consideration paid by
the buyer or a lender, or a person engaged in table-funding or
warehouse-lending mortgage loans that are first lien mortgage
loans.
(x) Property, money, and other amounts received by a
professional employer organization, as defined in section 4125.01
of the Revised Code, from a client employer, as defined in that
section, in excess of the administrative fee charged by the
professional employer organization to the client employer;
(y) In the case of amounts retained as commissions by a
permit holder under Chapter 3769. of the Revised Code, an amount
equal to the amounts specified under that chapter that must be
paid to or collected by the tax commissioner as a tax and the
amounts specified under that chapter to be used as purse money;
(z) Qualifying distribution center receipts.
(i) For purposes of division (F)(2)(z) of this section:
(I) "Qualifying distribution center receipts" means receipts
of a supplier from qualified property that is delivered to a
qualified distribution center, multiplied by a quantity that
equals one minus the Ohio delivery percentage.
(II) "Qualified property" means tangible personal property
delivered to a qualified distribution center that is shipped to
that qualified distribution center solely for further shipping by
the qualified distribution center to another location in this
state or elsewhere. "Further shipping" includes storing and
repackaging such property into smaller or larger bundles, so long
as such property is not subject to further manufacturing or
processing.
(III) "Qualified distribution center" means a warehouse or
other similar facility in this state that, for the qualifying
year, is operated by a person that is not part of a combined
taxpayer group and that has a qualifying certificate. However, all
warehouses or other similar facilities that are operated by
persons in the same taxpayer group and that are located within one
mile of each other shall be treated as one qualified distribution
center.
(IV) "Qualifying year" means the calendar year to which the
qualifying certificate applies.
(V) "Qualifying period" means the period of the first day of
July of the second year preceding the qualifying year through the
thirtieth day of June of the year preceding the qualifying year.
(VI) "Qualifying certificate" means the certificate issued by
the tax commissioner after the operator of a distribution center
files an annual application with the commissioner. The application
and annual fee shall be filed and paid for each qualified
distribution center on or before the first day of September before
the qualifying year or within forty-five days after the
distribution center opens, whichever is later.
The applicant must substantiate to the commissioner's
satisfaction that, for the qualifying period, all persons
operating the distribution center have more than fifty per cent of
the cost of the qualified property shipped to a location such that
it would be sitused outside this state under the provisions of
division (E) of section 5751.033 of the Revised Code. The
applicant must also substantiate that the distribution center
cumulatively had costs from its suppliers equal to or exceeding
five hundred million dollars during the qualifying period. (For
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"
excludes any person that is part of the consolidated elected
taxpayer group, if applicable, of the operator of the qualified
distribution center.) The commissioner may require the applicant
to have an independent certified public accountant certify that
the calculation of the minimum thresholds required for a qualified
distribution center by the operator of a distribution center has
been made in accordance with generally accepted accounting
principles. The commissioner shall issue or deny the issuance of a
certificate within sixty days after the receipt of the
application. A denial is subject to appeal under section 5717.02
of the Revised Code. If the operator files a timely appeal under
section 5717.02 of the Revised Code, the operator shall be granted
a qualifying certificate, provided that the operator is liable for
any tax, interest, or penalty upon amounts claimed as qualifying
distribution center receipts, other than those receipts exempt
under division (C)(1) of section 5751.011 of the Revised Code,
that would have otherwise not been owed by its suppliers if the
qualifying certificate was valid.
(VII) "Ohio delivery percentage" means the proportion of the
total property delivered to a destination inside Ohio from the
qualified distribution center during the qualifying period
compared with total deliveries from such distribution center
everywhere during the qualifying period.
(ii) If the distribution center is new and was not open for
the entire qualifying period, the operator of the distribution
center may request that the commissioner grant a qualifying
certificate. If the certificate is granted and it is later
determined that more than fifty per cent of the qualified property
during that year was not shipped to a location such that it would
be sitused outside of this state under the provisions of division
(E) of section 5751.033 of the Revised Code or if it is later
determined that the person that operates the distribution center
had average monthly costs from its suppliers of less than forty
million dollars during that year, then the operator of the
distribution center shall be liable for any tax, interest, or
penalty upon amounts claimed as qualifying distribution center
receipts, other than those receipts exempt under division (C)(1)
of section 5751.011 of the Revised Code, that would have not
otherwise been owed by its suppliers during the qualifying year if
the qualifying certificate was valid. (For purposes of division
(F)(2)(z)(ii) of this section, "supplier" excludes any person that
is part of the consolidated elected taxpayer group, if applicable,
of the operator of the qualified distribution center.)
(iii) When filing an application for a qualifying certificate
under division (F)(2)(z)(i)(VI) of this section, the operator of a
qualified distribution center also shall provide documentation, as
the commissioner requires, for the commissioner to ascertain the
Ohio delivery percentage. The commissioner, upon issuing the
qualifying certificate, also shall certify the Ohio delivery
percentage. The operator of the qualified distribution center may
appeal the commissioner's certification of the Ohio delivery
percentage in the same manner as an appeal is taken from the
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)
of this section.
Within thirty days after all appeals have been exhausted, the
operator of the qualified distribution center shall notify the
affected suppliers of qualified property that such suppliers are
required to file, within sixty days after receiving notice from
the operator of the qualified distribution center, amended reports
for the impacted calendar quarter or quarters or calendar year,
whichever the case may be. Any additional tax liability or tax
overpayment shall be subject to interest but shall not be subject
to the imposition of any penalty so long as the amended returns
are timely filed. The supplier of tangible personal property
delivered to the qualified distribution center shall include in
its report of taxable gross receipts the receipts from the total
sales of property delivered to the qualified distribution center
for the calendar quarter or calendar year, whichever the case may
be, multiplied by the Ohio delivery percentage for the qualifying
year. Nothing in division (F)(2)(z)(iii) of this section shall be
construed as imposing liability on the operator of a qualified
distribution center for the tax imposed by this chapter arising
from any change to the Ohio delivery percentage.
(iv) In the case where the distribution center is new and not
open for the entire qualifying period, the operator shall make a
good faith estimate of an Ohio delivery percentage for use by
suppliers in their reports of taxable gross receipts for the
remainder of the qualifying period. The operator of the facility
shall disclose to the suppliers that such Ohio delivery percentage
is an estimate and is subject to recalculation. By the due date of
the next application for a qualifying certificate, the operator
shall determine the actual Ohio delivery percentage for the
estimated qualifying period and proceed as provided in division
(F)(2)(z)(iii) of this section with respect to the calculation and
recalculation of the Ohio delivery percentage. The supplier is
required to file, within sixty days after receiving notice from
the operator of the qualified distribution center, amended reports
for the impacted calendar quarter or quarters or calendar year,
whichever the case may be. Any additional tax liability or tax
overpayment shall be subject to interest but shall not be subject
to the imposition of any penalty so long as the amended returns
are timely filed.
(v) Qualifying certificates and Ohio delivery percentages
issued by the commissioner shall be open to public inspection and
shall be timely published by the commissioner. A supplier relying
in good faith on a certificate issued under this division shall
not be subject to tax on the qualifying distribution center
receipts under division (F)(2)(z) of this section. A person
receiving a qualifying certificate is responsible for paying the
tax, interest, and penalty upon amounts claimed as qualifying
distribution center receipts that would not otherwise have been
owed by the supplier if the qualifying certificate were available
when it is later determined that the qualifying certificate should
not have been issued because the statutory requirements were in
fact not met.
(vi) The annual fee for a qualifying certificate shall be one
hundred thousand dollars for each qualified distribution center.
If a qualifying certificate is not issued, the annual fee is
subject to refund after the exhaustion of all appeals provided for
in division (F)(2)(z)(i)(VI) of this section. The fee imposed
under this division may be assessed in the same manner as the tax
imposed under this chapter. The first one hundred thousand dollars
of the annual application fees collected each calendar year shall
be credited to the commercial activity tax administrative revenue
enhancement fund. The remainder of the annual application fees
collected shall be distributed in the same manner required under
section 5751.20 of the Revised Code.
(vii) The tax commissioner may require that adequate security
be posted by the operator of the distribution center on appeal
when the commissioner disagrees that the applicant has met the
minimum thresholds for a qualified distribution center as set
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this
section.
(aa) Receipts of an employer from payroll deductions relating
to the reimbursement of the employer for advancing moneys to an
unrelated third party on an employee's behalf;
(bb) Cash discounts allowed and taken;
(cc) Returns and allowances;
(dd) Bad debts from receipts on the basis of which the tax
imposed by this chapter was paid in a prior quarterly tax payment
period. For the purpose of this division, "bad debts" means any
debts that have become worthless or uncollectible between the
preceding and current quarterly tax payment periods, have been
uncollected for at least six months, and that may be claimed as a
deduction under section 166 of the Internal Revenue Code and the
regulations adopted under that section, or that could be claimed
as such if the taxpayer kept its accounts on the accrual basis.
"Bad debts" does not include repossessed property, uncollectible
amounts on property that remains in the possession of the taxpayer
until the full purchase price is paid, or expenses in attempting
to collect any account receivable or for any portion of the debt
recovered;
(ee) Any amount realized from the sale of an account
receivable to the extent the receipts from the underlying
transaction giving rise to the account receivable were included in
the gross receipts of the taxpayer;
(ff) Any receipts directly attributed to providing public
services pursuant to sections 126.60 to 126.605 of the Revised
Code, or any receipts directly attributed to a transfer agreement
or to the enterprise transferred under that agreement under
section 4313.02 of the Revised Code.
(gg) Any receipts for which the tax imposed by this chapter
is prohibited by the Constitution or laws of the United States or
the Constitution of Ohio.
(hh)(i) As used in this division:
(I) "Qualified uranium receipts" means receipts from the
sale, exchange, lease, loan, production, processing, or other
disposition of uranium within a uranium enrichment zone certified
by the tax commissioner under division (F)(2)(hh)(ii)
(F)(2)(gg)(ii) of this section. "Qualified uranium receipts" does
not include any receipts with a situs in this state outside a
uranium enrichment zone certified by the tax commissioner under
division
(F)(2)(hh)(ii) (F)(2)(gg)(ii) of this section.
(II) "Uranium enrichment zone" means all real property that
is part of a uranium enrichment facility licensed by the United
States nuclear regulatory commission and that was or is owned or
controlled by the United States department of energy or its
successor.
(ii) Any person that owns, leases, or operates real or
tangible personal property constituting or located within a
uranium enrichment zone may apply to the tax commissioner to have
the uranium enrichment zone certified for the purpose of excluding
qualified uranium receipts under division (F)(2)(hh) (F)(2)(gg) of
this section. The application shall include such information that
the tax commissioner prescribes. Within sixty days after receiving
the application, the tax commissioner shall certify the zone for
that purpose if the commissioner determines that the property
qualifies as a uranium enrichment zone as defined in division
(F)(2)(hh) (F)(2)(gg) of this section, or, if the tax commissioner
determines that the property does not qualify, the commissioner
shall deny the application or request additional information from
the applicant. If the tax commissioner denies an application, the
commissioner shall state the reasons for the denial. The applicant
may appeal the denial of an application to the board of tax
appeals pursuant to section 5717.02 of the Revised Code. If the
applicant files a timely appeal, the tax commissioner shall
conditionally certify the applicant's property. The conditional
certification shall expire when all of the applicant's appeals are
exhausted. Until final resolution of the appeal, the applicant
shall retain the applicant's records in accordance with section
5751.12 of the Revised Code, notwithstanding any time limit on the
preservation of records under that section.
(ii)(hh) Amounts realized by licensed motor fuel dealers or
licensed permissive motor fuel dealers from the exchange of
petroleum products, including motor fuel, between such dealers,
provided that delivery of the petroleum products occurs at a
refinery, terminal, pipeline, or marine vessel and that the
exchanging dealers agree neither dealer shall require monetary
compensation from the other for the value of the exchanged
petroleum products other than such compensation for differences in
product location or grade. Division (F)(2)(ii) (F)(2)(hh) of this
section does not apply to amounts realized as a result of
differences in location or grade of exchanged petroleum products
or from handling, lubricity, dye, or other additive injections
fees, pipeline security fees, or similar fees. As used in this
division, "motor fuel," "licensed motor fuel dealer," "licensed
permissive motor fuel dealer," and "terminal" have the same
meanings as in section 5735.01 of the Revised Code.
(hh)(ii) In the case of amounts collected by a licensed
casino operator from casino gaming, amounts in excess of the
casino operator's gross casino revenue. In this division, "casino
operator" and "casino gaming" have the meanings defined in section
3772.01 of the Revised Code, and "gross casino revenue" has the
meaning defined in section 5753.01 of the Revised Code.
(jj) Any receipts for which the tax imposed by this chapter
is prohibited by the constitution or laws of the United States or
the constitution of this state.
(3) In the case of a taxpayer when acting as a real estate
broker, "gross receipts" includes only the portion of any fee for
the service of a real estate broker, or service of a real estate
salesperson associated with that broker, that is retained by the
broker and not paid to an associated real estate salesperson or
another real estate broker. For the purposes of this division,
"real estate broker" and "real estate salesperson" have the same
meanings as in section 4735.01 of the Revised Code.
(4) A taxpayer's method of accounting for gross receipts for
a tax period shall be the same as the taxpayer's method of
accounting for federal income tax purposes for the taxpayer's
federal taxable year that includes the tax period. If a taxpayer's
method of accounting for federal income tax purposes changes, its
method of accounting for gross receipts under this chapter shall
be changed accordingly.
(G) "Taxable gross receipts" means gross receipts sitused to
this state under section 5751.033 of the Revised Code.
(H) A person has "substantial nexus with this state" if any
of the following applies. The person:
(1) Owns or uses a part or all of its capital in this state;
(2) Holds a certificate of compliance with the laws of this
state authorizing the person to do business in this state;
(3) Has bright-line presence in this state;
(4) Otherwise has nexus with this state to an extent that the
person can be required to remit the tax imposed under this chapter
under the Constitution of the United States.
(I) A person has "bright-line presence" in this state for a
reporting period and for the remaining portion of the calendar
year if any of the following applies. The person:
(1) Has at any time during the calendar year property in this
state with an aggregate value of at least fifty thousand dollars.
For the purpose of division (I)(1) of this section, owned property
is valued at original cost and rented property is valued at eight
times the net annual rental charge.
(2) Has during the calendar year payroll in this state of at
least fifty thousand dollars. Payroll in this state includes all
of the following:
(a) Any amount subject to withholding by the person under
section 5747.06 of the Revised Code;
(b) Any other amount the person pays as compensation to an
individual under the supervision or control of the person for work
done in this state; and
(c) Any amount the person pays for services performed in this
state on its behalf by another.
(3) Has during the calendar year taxable gross receipts of at
least five hundred thousand dollars.
(4) Has at any time during the calendar year within this
state at least twenty-five per cent of the person's total
property, total payroll, or total gross receipts.
(5) Is domiciled in this state as an individual or for
corporate, commercial, or other business purposes.
(J) "Tangible personal property" has the same meaning as in
section 5739.01 of the Revised Code.
(K) "Internal Revenue Code" means the Internal Revenue Code
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in
this chapter that is not otherwise defined has the same meaning as
when used in a comparable context in the laws of the United States
relating to federal income taxes unless a different meaning is
clearly required. Any reference in this chapter to the Internal
Revenue Code includes other laws of the United States relating to
federal income taxes.
(L) "Calendar quarter" means a three-month period ending on
the thirty-first day of March, the thirtieth day of June, the
thirtieth day of September, or the thirty-first day of December.
(M) "Tax period" means the calendar quarter or calendar year
on the basis of which a taxpayer is required to pay the tax
imposed under this chapter.
(N) "Calendar year taxpayer" means a taxpayer for which the
tax period is a calendar year.
(O) "Calendar quarter taxpayer" means a taxpayer for which
the tax period is a calendar quarter.
(P) "Agent" means a person authorized by another person to
act on its behalf to undertake a transaction for the other,
including any of the following:
(1) A person receiving a fee to sell financial instruments;
(2) A person retaining only a commission from a transaction
with the other proceeds from the transaction being remitted to
another person;
(3) A person issuing licenses and permits under section
1533.13 of the Revised Code;
(4) A lottery sales agent holding a valid license issued
under section 3770.05 of the Revised Code;
(5) A person acting as an agent of the division of liquor
control under section 4301.17 of the Revised Code.
(Q) "Received" includes amounts accrued under the accrual
method of accounting.
(R) "Reporting person" means a person in a consolidated
elected taxpayer or combined taxpayer group that is designated by
that group to legally bind the group for all filings and tax
liabilities and to receive all legal notices with respect to
matters under this chapter, or, for the purposes of section
5751.04 of the Revised Code, a separate taxpayer that is not a
member of such a group.
Sec. 5751.011. (A) A group of two or more persons may elect
to be a consolidated elected taxpayer for the purposes of this
chapter if the group satisfies all of the following requirements:
(1) The group elects to include all persons, including
persons enumerated in divisions (E)(2) to (10) of section 5751.01
of the Revised Code, having at least eighty per cent, or having at
least fifty per cent, of the value of their ownership interests
owned or controlled, directly or constructively through related
interests, by common owners during all or any portion of the tax
period, together with the common owners.
A group making its initial election on the basis of the
eighty per cent ownership test may change its election so that its
consolidated elected taxpayer group is formed on the basis of the
fifty per cent ownership test if all of the following are
satisfied:
(a) When the initial election was made, the group did not
have any persons satisfying the fifty per cent ownership test;
(b) One or more of the persons in the initial group
subsequently acquires ownership interests in a person such that
the fifty per cent ownership test is satisfied, the eighty per
cent ownership test is not satisfied, and the acquired person
would be required to be included in a combined taxpayer group
under section 5751.012 of the Revised Code;
(c) The group requests the change in a written request
writing to the
tax commissioner on or before the due date for
filing the first return due under section 5751.051 of the Revised
Code after the date of the acquisition as required by division (D)
of this section;
(d) The group has not previously changed its election.
At the election of the group, all entities that are not
incorporated or formed under the laws of a state or of the United
States and that meet the consolidated elected ownership test shall
either be included in the group or all shall be excluded from the
group. If, at the time of registration, the group does not include
any such entities that meet the consolidated elected ownership
test, the group shall elect to either include or exclude the newly
acquired entities before the due date of the first return due
after the date of the acquisition.
Each group shall notify the tax commissioner of the foregoing
elections before the due date of the return for the period in
which the election becomes binding. If fifty per cent of the value
of a person's ownership interests is owned or controlled by each
of two consolidated elected taxpayer groups formed under the fifty
per cent ownership or control test, that person is a member of
each group for the purposes of this section, and each group shall
include in the group's taxable gross receipts fifty per cent of
that person's taxable gross receipts. Otherwise, all of that
person's taxable gross receipts shall be included in the taxable
gross receipts of the consolidated elected taxpayer group of which
the person is a member. In no event shall the ownership or control
of fifty per cent of the value of a person's ownership interests
by two otherwise unrelated groups form the basis for consolidating
the groups into a single consolidated elected taxpayer group or
permit any exclusion under division (C) of this section of taxable
gross receipts between members of the two groups. Division (A)(3)
of this section applies with respect to the elections described in
this division.
(2) The group makes the election to be treated as a
consolidated elected taxpayer in the manner prescribed under
division (D) of this section.
(3) Subject to review and audit by the tax commissioner, the
group agrees that all of the following apply:
(a) The group shall file reports as a single taxpayer for at
least the next eight calendar quarters following the election so
long as at least two or more of the members of the group meet the
requirements of division (A)(1) of this section.
(b) Before the expiration of the eighth such calendar
quarter, the group shall notify the commissioner if it elects to
cancel its designation as a consolidated elected taxpayer. If the
group does not so notify the tax commissioner, the election
remains in effect for another eight calendar quarters.
(c) If, at any time during any of those eight calendar
quarters following the election, a former member of the group no
longer meets the requirements under division (A)(1) of this
section, that member shall report and pay the tax imposed under
this chapter separately, as a member of a combined taxpayer, or,
if the former member satisfies such requirements with respect to
another consolidated elected group, as a member of that
consolidated elected group.
(d) The group agrees to the application of division (B) of
this section.
(B) A group of persons making the election under this section
shall report and pay tax on all of the group's taxable gross
receipts even if substantial nexus with this state does not exist
for one or more persons in the group.
(C)(1)(a) Members of a consolidated elected taxpayer group
shall exclude gross receipts among persons included in the
consolidated elected taxpayer group.
(b) Subject to divisions (C)(1)(c) and (C)(2) of this
section, nothing in this section shall have the effect of
requiring a consolidated elected taxpayer group to include gross
receipts received by a person enumerated in divisions (E)(2) to
(10) of section 5751.01 of the Revised Code if that person is a
member of the group pursuant to the elections made by the group
under division (A)(1) of this section.
(c)(i) As used in division (C)(1)(c) of this section, "dealer
transfer" means a transfer of property that satisfies both of the
following: (I) the property is directly transferred by any means
from one member of the group to another member of the group that
is a dealer in intangibles but is not a qualifying dealer as
defined in section 5707.031 of the Revised Code; and (II) the
property is subsequently delivered by the dealer in intangibles to
a person that is not a member of the group.
(ii) In the event of a dealer transfer, a consolidated
elected taxpayer group shall not exclude, under division (C) of
this section, gross receipts from the transfer described in
division (C)(1)(c)(i)(I) of this section.
(2) Gross receipts related to the sale or transmission of
electricity through the use of an intermediary regional
transmission organization approved by the federal energy
regulatory commission shall be excluded from taxable gross
receipts under division (C)(1) of this section if all other
requirements of that division are met, even if the receipts are
from and to the same member of the group.
(D) To make the election to be a consolidated elected
taxpayer, a group of persons shall notify the tax commissioner of
the election in the manner prescribed by the commissioner and pay
the commissioner a registration fee equal to the lesser of two
hundred dollars or twenty dollars for each person in the group. No
additional fee shall be imposed for the addition of new members to
the group once the group has remitted a fee in the amount of two
hundred dollars. The election on a form prescribed by the
commissioner for that purpose, which shall be signed by one or
more individuals with authority, separately or together, to make a
binding election on behalf of all persons in the group. Elections
under division (A) of this section shall be made and the fee paid
on or before the beginning of due date for filing the first
calendar quarter to which return due after the election applies.
The fee shall be collected and used in the same manner as provided
in section 5751.04 of the Revised Code.
The election shall be made on a form prescribed by the tax
commissioner for that purpose and shall be signed by one or more
individuals with authority, separately or together, to make a
binding election on behalf of all persons in the group.
Any person acquired or formed after the filing of the
registration shall be included in the group if the person meets
the requirements of division (A)(1) of this section, and the group
shall notify the tax commissioner of any additions to the group
with the next tax return it files with on a form prescribed by the
commissioner for such purpose.
Sec. 5751.012. (A) All persons, other than persons
enumerated in divisions (E)(2) to (10) of section 5751.01 of the
Revised Code, having more than fifty per cent of the value of
their ownership interest owned or controlled, directly or
constructively through related interests, by common owners during
all or any portion of the tax period, together with the common
owners, shall be members of a combined taxpayer group if those
persons are not members of a consolidated elected taxpayer group
pursuant to an election under section 5751.011 of the Revised
Code.
(B) A combined taxpayer group shall register, file returns,
and pay taxes under this chapter as a single taxpayer.
(C) A combined taxpayer and shall neither exclude taxable
gross receipts between its members nor from others that are not
members.
(D) A combined taxpayer shall pay to the tax commissioner a
registration fee equal to the lesser of two hundred dollars or
twenty dollars for each person in the group. No additional fee
shall be imposed for the addition of new members to the group once
the group has remitted a fee in the amount of two hundred dollars.
The fee shall be timely paid before the later of the beginning of
the first calendar quarter or November 15, 2005. The fee shall be
collected and used in the same manner as provided in section
5751.04 of the Revised Code.
(C) Any person acquired or formed after the filing of the
registration shall be included in the group if the person meets
the requirements of division (A) of this section, and the group
must notify the tax commissioner of any additions with the next
quarterly tax return it files with to the group on a form
prescribed by the commissioner for such purpose.
Sec. 5751.03. (A) Except as provided in divisions division
(B) and (D) of this section and in sections section 5751.031 and
5751.032 of the Revised Code, the tax levied under this section
for each tax period shall be the product of two and six-tenths
mills per dollar times the remainder of the taxpayer's taxable
gross receipts for the tax period after subtracting the exclusion
amount provided for in division (C) of this section.
(B) Notwithstanding division (C) of this section, the tax on
the first one million dollars in taxable gross receipts each
calendar year shall be one hundred fifty dollars. For calendar
year 2006, the tax imposed under this division shall be paid not
later than May 10, 2006, by both calendar year taxpayers and
calendar quarter taxpayers. For calendar years 2007, 2008, and
2009, the tax imposed under this division shall be paid with the
fourth-quarter tax return or annual tax return for the prior
calendar year by both calendar year taxpayers and calendar quarter
taxpayers. For calendar years 2010 and thereafter, the The tax
imposed under this division shall be paid not later than the tenth
day of May of each year along with the first quarter or annual tax
return, as applicable.
(C)(1) Each calendar quarter taxpayer may exclude the first
two hundred fifty thousand one million dollars of taxable gross
receipts for a calendar quarter year. Calendar quarter taxpayers
may apply the full exclusion amount to the first calendar quarter
return the taxpayer files that calendar year and may carry forward
and apply any unused exclusion amount to the three subsequent
calendar quarters within that same calendar year. Each calendar
year taxpayer may exclude the first one million dollars of taxable
gross receipts for a calendar year.
(2) A taxpayer switching from a calendar year tax period to a
calendar quarter tax period may, for the first quarter of the
change, apply the prior calendar quarter full one-million-dollar
exclusion amounts amount to the first calendar quarter return the
taxpayer files that calendar year. Such taxpayers may carry
forward and apply any unused exclusion amount to subsequent
calendar quarters within that same calendar year. The tax rate
shall be based on the rate imposed that calendar quarter when the
taxpayer switches from a calendar year to a calendar quarter tax
period.
(D) There is hereby allowed a credit against the tax imposed
under this chapter for each of the following calendar years if a
transfer was made in the preceding calendar year from the general
revenue fund to the commercial activity tax refund fund under
division (D) of section 5751.032 of the Revised Code: calendar
years 2008, 2010, and 2012. The credit is allowed for taxpayers
that paid in full the tax imposed under this chapter for the
calendar year in which the transfer was made. The amount of a
taxpayer's credit equals the amount computed under division (D) of
section 5751.032 of the Revised Code (3) A taxpayer shall not
exclude more than one million dollars pursuant to division (C) of
this section in a calendar year.
Sec. 5751.04. (A) As used in this section, "person" includes
a reporting person.
(B) Not later than thirty days after a person first has more
than one hundred fifty thousand dollars in taxable gross receipts
in a calendar year, each person subject to this chapter shall
register with the tax commissioner on the form prescribed by the
commissioner. The form shall include the following:
(2) If applicable, the name of the state or country under the
laws of which the person is incorporated;
(3) If applicable, the location of a person's principal
office and the name and address of the officer or agent of the
corporation in charge of the business;
(4) If applicable, the names of the person's president,
secretary, treasurer, and statutory agent designated pursuant to
section 1703.041 of the Revised Code, with the post office address
of each;
(5) The person's primary address;
(3) The kind of business in which the person is engaged,
including applicable business or industry codes for the person;
(6) If required by the tax commissioner, the date of the
beginning of the person's annual accounting period that includes
the first day of January of the taxable calendar year;
(7) If the person is not a corporation or a sole proprietor,
the names of the person's owners and officers, if required by the
tax commissioner;
(8)(4) The person's federal employer identification number or
numbers or, if those are not applicable, the person's social
security number or equivalent, as applicable;
(9)(5) The person's organizational type;
(6) The date the person is first subject to the tax imposed
by this chapter;
(7) The names, addresses, federal identification numbers or
social security numbers or equivalents, and organization types of
each member that is commonly owned in a consolidated elected
taxpayer or combined taxpayer group;
(8) All other information that the commissioner requires to
administer and enforce this chapter.
(C) Except as otherwise provided in this division, each
person registering with the tax commissioner as required by
division (B) of this section shall pay a registration fee. The fee
shall be in the amount of fifteen dollars if a person registers
electronically and twenty dollars if a person does not register
electronically. The registration fee shall be paid in the manner
prescribed by the tax commissioner at the same time the
registration is due if a person is subject to the tax imposed
under this chapter before January 1, 2006. If a person first
becomes subject to the tax after that date, the registration fee
is payable with the first tax period return the person is required
to file as prescribed by section 5751.051 of the Revised Code. If
(1) To help defray the costs of administering the tax imposed by
this chapter, the commissioner shall collect a registration fee in
the amount of twenty dollars per person up to a maximum of two
hundred dollars per consolidated elected taxpayer or combined
taxpayer group. The commissioner shall systematically deduct and
collect the fee from the first tax payment each taxpayer makes
after registering or adding members, as applicable. No separate
registration fee may be collected in addition to the tax imposed
by this chapter.
(2) If a person does not register within the time prescribed
by this section, an additional fee is imposed in the amount of one
hundred dollars per month or part thereof that the fee is
outstanding, not to exceed one thousand dollars. The tax
commissioner may abate the additional fee. The fee imposed under
this division may be assessed in the same manner as the tax
imposed under this chapter. Proceeds
(D) Proceeds from the fee imposed under division (C) of this
section shall be credited to the commercial activity tax
administrative revenue enhancement fund, which is hereby created
in the state treasury for the commissioner to use in implementing
and administering the tax imposed under this chapter.
Registration fees paid under this section, excluding any
additional fee imposed for a person's failure to timely register,
shall be credited against the first payment of tax payable under
section 5751.03 of the Revised Code.
(D)(E) If a person that has registered under this section is
no longer a taxpayer subject to this chapter, including no longer
being a taxpayer because of the application of division (E)(1) of
section 5751.01 of the Revised Code, the person shall notify the
commissioner that the person's registration should be cancelled.
(E)(F) With respect to registrations received by the
commissioner before the effective date of the amendment of this
section by the main operating appropriations act of the 128th
general assembly October 16, 2009, the taxpayer listed as the
primary taxpayer on the registration shall be the reporting person
until the taxpayer notifies the commissioner otherwise.
Sec. 5751.05. (A) If a person subject to this chapter
anticipates that the person's taxable gross receipts will be more
than one million dollars in a calendar year, the person shall
notify the tax commissioner on the person's initial registration
form and file on a quarterly basis as a calendar quarter taxpayer.
Any taxpayer with taxable gross receipts of one million dollars or
less shall register as a calendar year taxpayer and shall file
annually.
(B) Any person that is a calendar year taxpayer under
division (A) of this section shall become a calendar quarter
taxpayer in the subsequent calendar year if the person's taxable
gross receipts for the prior calendar year are more than one
million dollars, and shall remain a calendar quarter taxpayer
until the person notifies the tax commissioner, and receives
approval in writing from the tax commissioner, to switch back to
being a calendar year taxpayer. Nothing in this division prohibits
a person that has elected to be a calendar year taxpayer from
notifying the tax commissioner, using the procedures prescribed by
the commissioner, that it is switching back to being a calendar
quarter taxpayer.
(C) Any taxpayer that is not a calendar quarter taxpayer
pursuant to this section is a calendar year taxpayer. The
commissioner may grant written approval for a calendar quarter
taxpayer to use an alternative reporting schedule or estimate the
amount of tax due for a calendar quarter if the taxpayer
demonstrates to the commissioner the need for such a deviation.
The commissioner may adopt a rule to apply division (C) of this
section to a group of taxpayers without the taxpayers having to
receive written approval from the commissioner.
Sec. 5751.051. (A)(1) Not later than the tenth day of the
second month after the end of each calendar quarter, every
taxpayer other than a calendar year taxpayer shall file with the
tax commissioner a tax return in such form as the commissioner
prescribes. The return shall include, but is not limited to, the
amount of the taxpayer's taxable gross receipts for the calendar
quarter and shall indicate the amount of tax due under section
5751.03 of the Revised Code for the calendar quarter.
(2)(a) Subject to division (C) of section 5751.05 of the
Revised Code, a calendar quarter taxpayer shall report the taxable
gross receipts for that calendar quarter.
(b) With respect to taxable gross receipts incorrectly
reported in a calendar quarter that has a lower tax rate, the tax
shall be computed at the tax rate in effect for the quarterly
return in which such receipts should have been reported. Nothing
in division (A)(2)(b) of this section prohibits a taxpayer from
filing an application for refund under section 5751.08 of the
Revised Code with regard to the incorrect reporting of taxable
gross receipts discovered after filing the annual return described
in division (A)(3) of this section.
A tax return shall not be deemed to be an incorrect reporting
of taxable gross receipts for the purposes of division (A)(2)(b)
of this section if the return reflects between ninety-five and one
hundred five per cent of the actual taxable gross receipts for the
calendar quarter.
(3) For the purposes of division (A)(2)(b) of this section,
the tax return filed for the fourth calendar quarter of a calendar
year is the annual return for the privilege tax imposed by this
chapter. Such return shall report any additional taxable gross
receipts not previously reported in the calendar year and shall
adjust for any over-reported taxable gross receipts in the
calendar year. If the taxpayer ceases to be a taxpayer before the
end of the calendar year, the last return the taxpayer is required
to file shall be the annual return for the taxpayer and the
taxpayer shall report any additional taxable gross receipts not
previously reported in the calendar year and shall adjust for any
over-reported taxable gross receipts in the calendar year.
(4) Because the tax imposed by this chapter is a privilege
tax, the tax rate with respect to taxable gross receipts for a
calendar quarter is not fixed until the end of the measurement
period for each calendar quarter. Subject to division (A)(2)(b) of
this section, the total amount of taxable gross receipts reported
for a given calendar quarter shall be subject to the tax rate in
effect in that quarter.
(5) Not later than the tenth day of May following the end of
each calendar year, every calendar year taxpayer shall file with
the tax commissioner a tax return in such form as the commissioner
prescribes. The return shall include, but is not limited to, the
amount of the taxpayer's taxable gross receipts for the calendar
year and shall indicate the amount of tax due under section
5751.03 of the Revised Code for the calendar year.
(B)(1) A person that first becomes subject to the tax imposed
under this chapter shall pay the minimum tax imposed under
division (B) of section 5751.03 of the Revised Code along with the
registration fee imposed under this section, if applicable, on or
before the day the return is required to be filed for that quarter
under division (A)(1) of this section, regardless of whether the
person elects to be registers as a calendar year taxpayer under
section 5751.05 of the Revised Code.
(2) The amount of the minimum tax for a person subject to
division (B)(1) of this section shall be reduced to seventy-five
dollars if the registration is timely filed after the first day of
May and before the first day of January of the following calendar
year.
Sec. 5751.08. (A) An application for refund to the taxpayer
of the amount of taxes imposed under this chapter that are
overpaid, paid illegally or erroneously, or paid on any illegal or
erroneous assessment shall be filed by the reporting person with
the tax commissioner, on the form prescribed by the commissioner,
within four years after the date of the illegal or erroneous
payment of the tax, or within any additional period allowed under
division (F) of section 5751.09 of the Revised Code. The applicant
shall provide the amount of the requested refund along with the
claimed reasons for, and documentation to support, the issuance of
a refund.
(B) On the filing of the refund application, the tax
commissioner shall determine the amount of refund to which the
applicant is entitled. If the amount is not less than that
claimed, the commissioner shall certify the amount to the director
of budget and management and treasurer of state for payment from
the tax refund fund created under section 5703.052 of the Revised
Code. If the amount is less than that claimed, the commissioner
shall proceed in accordance with section 5703.70 of the Revised
Code.
(C) Interest Except as provided in division (F) of this
section, interest on a refund applied for under this section,
computed at the rate provided for in section 5703.47 of the
Revised Code, shall be allowed from the later of the date the tax
was paid or when the tax payment was due.
(D) A calendar quarter taxpayer with more than one million
dollars in taxable gross receipts in a calendar year other than
calendar year 2005 and that is not able to exclude one million
dollars in taxable gross receipts because of the operation of the
taxpayer's business in that calendar year may file for a refund
under this section to obtain the full exclusion of one million
dollars in taxable gross receipts for that calendar year.
(E) Except as provided in section 5751.081 of the Revised
Code, the tax commissioner may, with the consent of the taxpayer,
provide for the crediting against tax due for a tax year the
amount of any refund due the taxpayer under this chapter for a
preceding tax year.
(F) If a taxpayer claims a refundable credit against the tax
imposed under section 5751.02 of the Revised Code, any payment
that is refunded to the taxpayer as a result of the allowance of
the credit shall not be considered an illegal, erroneous, or
excessive payment for purposes of division (A) of this section. No
interest shall be allowed on an amount refunded to a taxpayer to
the extent that the refund results from the allowance of a
refundable credit.
Sec. 5751.12. The tax commissioner may prescribe
requirements for the keeping of records and other pertinent
documents, the filing of copies of federal income tax returns and
determinations, and computations reconciling federal income tax
returns with the returns and reports required by section 5751.05
5751.051 of the Revised Code. The commissioner may require any
person, by rule or notice served on that person, to keep those
records that the commissioner considers necessary to show whether,
and the extent to which, a person is subject to this chapter.
Those records and other documents shall be open during business
hours to the inspection of the commissioner, and shall be
preserved for a period of four years unless the commissioner, in
writing, consents to their destruction within that period, or by
order requires that they be kept longer. If such records are
normally kept by the person electronically, the person shall
provide such records to the commissioner electronically at the
commissioner's request.
Any information required by the tax commissioner under this
chapter is confidential as provided for in section 5703.21 of the
Revised Code. However, the commissioner shall make public an
electronic list of all actively registered persons required to
remit the tax under this chapter, including legal names, trade
names, addresses, and account numbers. In addition, such list
shall include all persons that cancelled their registration at any
time during the preceding four calendar years, including the
effective date of the registration was cancelled cancellation.
Sec. 5751.20. (A) As used in sections 5751.20 to 5751.22 of
the Revised Code:
(1) "School district," "joint vocational school district,"
"local taxing unit," "recognized valuation," "fixed-rate levy,"
and "fixed-sum levy" have the same meanings as used in section
5727.84 of the Revised Code.
(2) "State education aid" for a school district means the
following:
(a) For fiscal years prior to fiscal year 2010, the sum of
state aid amounts computed for the district under the following
provisions, as they existed for the applicable fiscal year:
division (A) of section 3317.022 of the Revised Code, including
the amounts calculated under sections 3317.029 and 3317.0217 of
the Revised Code; divisions (C)(1), (C)(4), (D), (E), and (F) of
section 3317.022; divisions (B), (C), and (D) of section 3317.023;
divisions (L) and (N) of section 3317.024; section 3317.0216; and
any unit payments for gifted student services paid under sections
3317.05, 3317.052, and 3317.053 of the Revised Code; except that,
for fiscal years 2008 and 2009, the amount computed for the
district under Section 269.20.80 of H.B. 119 of the 127th general
assembly and as that section subsequently may be amended shall be
substituted for the amount computed under division (D) of section
3317.022 of the Revised Code, and the amount computed under
Section 269.30.80 of H.B. 119 of the 127th general assembly and as
that section subsequently may be amended shall be included.
(b) For fiscal years 2010 and 2011, the sum of the amounts
computed under former sections 3306.052, 3306.12, 3306.13,
3306.19, 3306.191, and 3306.192 of the Revised Code;
(c) For fiscal years 2012 and 2013, the amount paid in
accordance with the section Section 267.30.50 of H.B. 153 of the
129th general assembly entitled "FUNDING FOR CITY, EXEMPTED
VILLAGE, AND LOCAL SCHOOL DISTRICTS."
(3) "State education aid" for a joint vocational school
district means the following:
(a) For fiscal years prior to fiscal year 2010, the sum of
the state aid computed for the district under division (N) of
section 3317.024 and section 3317.16 of the Revised Code, except
that, for fiscal years 2008 and 2009, the amount computed under
Section 269.30.80 of H.B. 119 of the 127th general assembly and as
that section subsequently may be amended shall be included.
(b) For fiscal years 2010 and 2011, the amount paid in
accordance with the section Section 265.30.50 of H.B. 1 of the
128th general assembly entitled "FUNDING FOR JOINT VOCATIONAL
SCHOOL DISTRICTS."
(c) For fiscal years 2012 and 2013, the amount paid in
accordance with the section Section 267.30.60 of H.B. 153 of the
129th general assembly entitled "FUNDING FOR JOINT VOCATIONAL
SCHOOL DISTRICTS."
(4) "State education aid offset" means the amount determined
for each school district or joint vocational school district under
division (A)(1) of section 5751.21 of the Revised Code.
(5) "Machinery and equipment property tax value loss" means
the amount determined under division (C)(1) of this section.
(6) "Inventory property tax value loss" means the amount
determined under division (C)(2) of this section.
(7) "Furniture and fixtures property tax value loss" means
the amount determined under division (C)(3) of this section.
(8) "Machinery and equipment fixed-rate levy loss" means the
amount determined under division (D)(1) of this section.
(9) "Inventory fixed-rate levy loss" means the amount
determined under division (D)(2) of this section.
(10) "Furniture and fixtures fixed-rate levy loss" means the
amount determined under division (D)(3) of this section.
(11) "Total fixed-rate levy loss" means the sum of the
machinery and equipment fixed-rate levy loss, the inventory
fixed-rate levy loss, the furniture and fixtures fixed-rate levy
loss, and the telephone company fixed-rate levy loss.
(12) "Fixed-sum levy loss" means the amount determined under
division (E) of this section.
(13) "Machinery and equipment" means personal property
subject to the assessment rate specified in division (F) of
section 5711.22 of the Revised Code.
(14) "Inventory" means personal property subject to the
assessment rate specified in division (E) of section 5711.22 of
the Revised Code.
(15) "Furniture and fixtures" means personal property subject
to the assessment rate specified in division (G) of section
5711.22 of the Revised Code.
(16) "Qualifying levies" are levies in effect for tax year
2004 or applicable to tax year 2005 or approved at an election
conducted before September 1, 2005. For the purpose of determining
the rate of a qualifying levy authorized by section 5705.212 or
5705.213 of the Revised Code, the rate shall be the rate that
would be in effect for tax year 2010.
(17) "Telephone property" means tangible personal property of
a telephone, telegraph, or interexchange telecommunications
company subject to an assessment rate specified in section
5727.111 of the Revised Code in tax year 2004.
(18) "Telephone property tax value loss" means the amount
determined under division (C)(4) of this section.
(19) "Telephone property fixed-rate levy loss" means the
amount determined under division (D)(4) of this section.
(20) "Taxes charged and payable" means taxes charged and
payable after the reduction required by section 319.301 of the
Revised Code but before the reductions required by sections
319.302 and 323.152 of the Revised Code.
(21) "Median estate tax collections" means, in the case of a
municipal corporation to which revenue from the taxes levied in
Chapter 5731. of the Revised Code was distributed in each of
calendar years 2006, 2007, 2008, and 2009, the median of those
distributions. In the case of a municipal corporation to which no
distributions were made in one or more of those years, "median
estate tax collections" means zero.
(22) "Total resources," in the case of a school district,
means the sum of the amounts in divisions (A)(22)(a) to (h) of
this section less any reduction required under division (A)(32) or
(33) of this section.
(a) The state education aid for fiscal year 2010;
(b) The sum of the payments received by the school district
in fiscal year 2010 for current expense levy losses pursuant to
division (C)(2) of section 5727.85 and divisions (C)(8) and (9) of
section 5751.21 of the Revised Code, excluding the portion of such
payments attributable to levies for joint vocational school
district purposes;
(c) The sum of fixed-sum levy loss payments received by the
school district in fiscal year 2010 pursuant to division (E)(1) of
section 5727.85 and division (E)(1) of section 5751.21 of the
Revised Code for fixed-sum levies imposed charged and payable for
a purpose other than paying debt charges;
(d) Fifty per cent of the school district's taxes charged and
payable against all property on the tax list of real and public
utility property for current expense purposes for tax year 2008,
including taxes charged and payable from emergency levies imposed
charged and payable under section 5709.194 of the Revised Code and
excluding taxes levied for joint vocational school district
purposes;
(e) Fifty per cent of the school district's taxes charged and
payable against all property on the tax list of real and public
utility property for current expenses for tax year 2009, including
taxes charged and payable from emergency levies and excluding
taxes levied for joint vocational school district purposes;
(f) The school district's taxes charged and payable against
all property on the general tax list of personal property for
current expenses for tax year 2009, including taxes charged and
payable from emergency levies;
(g) The amount certified for fiscal year 2010 under division
(A)(2) of section 3317.08 of the Revised Code;
(h) Distributions received during calendar year 2009 from
taxes levied under section 718.09 of the Revised Code.
(23) "Total resources," in the case of a joint vocational
school district, means the sum of amounts in divisions (A)(23)(a)
to (g) of this section less any reduction required under division
(A)(32) of this section.
(a) The state education aid for fiscal year 2010;
(b) The sum of the payments received by the joint vocational
school district in fiscal year 2010 for current expense levy
losses pursuant to division (C)(2) of section 5727.85 and
divisions (C)(8) and (9) of section 5751.21 of the Revised Code;
(c) Fifty per cent of the joint vocational school district's
taxes charged and payable against all property on the tax list of
real and public utility property for current expense purposes for
tax year 2008;
(d) Fifty per cent of the joint vocational school district's
taxes charged and payable against all property on the tax list of
real and public utility property for current expenses for tax year
2009;
(e) Fifty per cent of a city, local, or exempted village
school district's taxes charged and payable against all property
on the tax list of real and public utility property for current
expenses of the joint vocational school district for tax year
2008;
(f) Fifty per cent of a city, local, or exempted village
school district's taxes charged and payable against all property
on the tax list of real and public utility property for current
expenses of the joint vocational school district for tax year
2009;
(g) The joint vocational school district's taxes charged and
payable against all property on the general tax list of personal
property for current expenses for tax year 2009.
(24) "Total resources," in the case of county mental health
and disability related functions, means the sum of the amounts in
divisions (A)(24)(a) and (b) of this section less any reduction
required under division (A)(32) of this section.
(a) The sum of the payments received by the county for mental
health and developmental disability related functions in calendar
year 2010 under division (A)(1) of section 5727.86 and division
divisions (A)(1) and (2) of section 5751.22 of the Revised Code as
they existed at that time;
(b) With respect to taxes levied by the county for mental
health and developmental disability related purposes, the taxes
charged and payable for such purposes against all property on the
tax list of real and public utility property for tax year 2009.
(25) "Total resources," in the case of county senior services
related functions, means the sum of the amounts in divisions
(A)(25)(a) and (b) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county for senior
services related functions in calendar year 2010 under division
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for senior
services related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(26) "Total resources," in the case of county children's
services related functions, means the sum of the amounts in
divisions (A)(26)(a) and (b) of this section less any reduction
required under division (A)(32) of this section.
(a) The sum of the payments received by the county for
children's services related functions in calendar year 2010 under
division (A)(1) of section 5727.86 and divisions (A)(1) and (2) of
section 5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for children's
services related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(27) "Total resources," in the case of county public health
related functions, means the sum of the amounts in divisions
(A)(27)(a) and (b) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county for public
health related functions in calendar year 2010 under division
(A)(1) of section 5727.86 and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time;
(b) With respect to taxes levied by the county for public
health related purposes, the taxes charged and payable for such
purposes against all property on the tax list of real and public
utility property for tax year 2009.
(28) "Total resources," in the case of all county functions
not included in divisions (A)(24) to (27) of this section, means
the sum of the amounts in divisions (A)(28)(a) to (d) of this
section less any reduction required under division (A)(32) or (33)
of this section.
(a) The sum of the payments received by the county for all
other purposes in calendar year 2010 under division (A)(1) of
section 5727.86 and divisions (A)(1) and (2) of section 5751.22 of
the Revised Code as they existed at that time;
(b) The county's percentage share of county undivided local
government fund allocations as certified to the tax commissioner
for calendar year 2010 by the county auditor under division (J) of
section 5747.51 of the Revised Code or division (F) of section
5747.53 of the Revised Code multiplied by the total amount
actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to taxes levied by the county for all other
purposes, the taxes charged and payable for such purposes against
all property on the tax list of real and public utility property
for tax year 2009, excluding taxes charged and payable for the
purpose of paying debt charges;
(d) The sum of the amounts distributed to the county in
calendar year 2010 for the taxes levied pursuant to sections
5739.021 and 5741.021 of the Revised Code.
(29) "Total resources," in the case of a municipal
corporation, means the sum of the amounts in divisions (A)(29)(a)
to (g) of this section less any reduction required under division
(A)(32) or (33) of this section.
(a) The sum of the payments received by the municipal
corporation in calendar year 2010 for current expense levy losses
under division (A)(1) of section 5727.86 and divisions (A)(1) and
(2) of section 5751.22 of the Revised Code as they existed at that
time;
(b) The municipal corporation's percentage share of county
undivided local government fund allocations as certified to the
tax commissioner for calendar year 2010 by the county auditor
under division (J) of section 5747.51 of the Revised Code or
division (F) of section 5747.53 of the Revised Code multiplied by
the total amount actually distributed in calendar year 2010 from
the county undivided local government fund;
(c) The sum of the amounts distributed to the municipal
corporation in calendar year 2010 pursuant to section 5747.50 of
the Revised Code;
(d) With respect to taxes levied by the municipal
corporation, the taxes charged and payable against all property on
the tax list of real and public utility property for current
expenses, defined in division (A)(33)(35) of this section, for tax
year 2009;
(e) The amount of admissions tax collected by the municipal
corporation in calendar year 2008, or if such information has not
yet been reported to the tax commissioner, in the most recent year
before 2008 for which the municipal corporation has reported data
to the commissioner;
(f) The amount of income taxes collected by the municipal
corporation in calendar year 2008, or if such information has not
yet been reported to the tax commissioner, in the most recent year
before 2008 for which the municipal corporation has reported data
to the commissioner;
(g) The municipal corporation's median estate tax
collections.
(30) "Total resources," in the case of a township, means the
sum of the amounts in divisions (A)(30)(a) to (c) of this section
less any reduction required under division (A)(32) or (33) of this
section.
(a) The sum of the payments received by the township in
calendar year 2010 pursuant to division (A)(1) of section 5727.86
of the Revised Code and divisions (A)(1) and (2) of section
5751.22 of the Revised Code as they existed at that time,
excluding payments received for debt purposes;
(b) The township's percentage share of county undivided local
government fund allocations as certified to the tax commissioner
for calendar year 2010 by the county auditor under division (J) of
section 5747.51 of the Revised Code or division (F) of section
5747.53 of the Revised Code multiplied by the total amount
actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to taxes levied by the township, the taxes
charged and payable against all property on the tax list of real
and public utility property for tax year 2009 excluding taxes
charged and payable for the purpose of paying debt charges.
(31) "Total resources," in the case of a local taxing unit
that is not a county, municipal corporation, or township, means
the sum of the amounts in divisions (A)(31)(a) to (e) of this
section less any reduction required under division (A)(32) of this
section.
(a) The sum of the payments received by the local taxing unit
in calendar year 2010 pursuant to division (A)(1) of section
5727.86 of the Revised Code and divisions (A)(1) and (2) of
section 5751.22 of the Revised Code as they existed at that time;
(b) The local taxing unit's percentage share of county
undivided local government fund allocations as certified to the
tax commissioner for calendar year 2010 by the county auditor
under division (J) of section 5747.51 of the Revised Code or
division (F) of section 5747.53 of the Revised Code multiplied by
the total amount actually distributed in calendar year 2010 from
the county undivided local government fund;
(c) With respect to taxes levied by the local taxing unit,
the taxes charged and payable against all property on the tax list
of real and public utility property for tax year 2009 excluding
taxes charged and payable for the purpose of paying debt charges;
(d) The amount received from the tax commissioner during
calendar year 2010 for sales or use taxes authorized under
sections 5739.023 and 5741.022 of the Revised Code;
(e) For institutions of higher education receiving tax
revenue from a local levy, as identified in section 3358.02 of the
Revised Code, the final state share of instruction allocation for
fiscal year 2010 as calculated by the board of regents and
reported to the state controlling board.
(32) If a fixed-rate levy that is a qualifying levy is not
imposed charged and payable in any year after tax year 2010,
"total resources" used to compute payments to be made under
division (C)(12) of section 5751.21 or division (A)(1)(b) or (c)
of section 5751.22 of the Revised Code in the tax years following
the last year the levy is
imposed charged and payable shall be
reduced by the amount of to the extent that the payments are
attributable to the fixed-rate levy loss of that levy as would be
computed under division (C)(2) of section 5727.85, division (A)(1)
of section 5727.85, divisions (C)(8) and (9) of section 5751.21,
or division (A)(1) of section 5751.22 of the Revised Code.
(33) In the case of a county, municipal corporation, school
district, or township with fixed-rate levy losses attributable to
a tax levied under section 5705.23 of the Revised Code, "total
resources" used to compute payments to be made under division
(C)(3) of section 5727.85, division (A)(1)(d) of section 5727.86,
division (C)(12) of section 5751.21, or division (A)(1)(c) of
section 5751.22 of the Revised Code shall be reduced by the
amounts described in divisions (A)(34)(a) to (c) of this section
to the extent that those amounts were included in calculating the
"total resources" of the school district or local taxing unit
under division (A)(22), (28), (29), or (30) of this section.
(34) "Total library resources," in the case of a county,
municipal corporation, school district, or township public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, means the sum of the amounts in divisions
(A)(34)(a) to (c) of this section less any reduction required
under division (A)(32) of this section.
(a) The sum of the payments received by the county, municipal
corporation, school district, or township public library in
calendar year 2010 pursuant to sections 5727.86 and 5751.22 of the
Revised Code, as they existed at that time, for fixed-rate levy
losses attributable to a tax levied under section 5705.23 of the
Revised Code for the benefit of the public library;
(b) The public library's percentage share of county undivided
local government fund allocations as certified to the tax
commissioner for calendar year 2010 by the county auditor under
division (J) of section 5747.51 of the Revised Code or division
(F) of section 5747.53 of the Revised Code multiplied by the total
amount actually distributed in calendar year 2010 from the county
undivided local government fund;
(c) With respect to a tax levied pursuant to section 5705.23
of the Revised Code for the benefit of the public library, the
amount of such tax that is charged and payable against all
property on the tax list of real and public utility property for
tax year 2009 excluding any tax that is charged and payable for
the purpose of paying debt charges.
(35) "Municipal current expense property tax levies" means
all property tax levies of a municipality, except those with the
following levy names: airport resurfacing; bond or any levy name
including the word "bond"; capital improvement or any levy name
including the word "capital"; debt or any levy name including the
word "debt"; equipment or any levy name including the word
"equipment," unless the levy is for combined operating and
equipment; employee termination fund; fire pension or any levy
containing the word "pension," including police pensions;
fireman's fund or any practically similar name; sinking fund; road
improvements or any levy containing the word "road"; fire truck or
apparatus; flood or any levy containing the word "flood";
conservancy district; county health; note retirement; sewage, or
any levy containing the words "sewage" or "sewer"; park
improvement; parkland acquisition; storm drain; street or any levy
name containing the word "street"; lighting, or any levy name
containing the word "lighting"; and water.
(34)(36) "Current expense TPP allocation" means, in the case
of a school district or joint vocational school district, the sum
of the payments received by the school district in fiscal year
2011 pursuant to divisions (C)(10) and (11) of section 5751.21 of
the Revised Code to the extent paid for current expense levies. In
the case of a municipal corporation, "current expense TPP
allocation" means the sum of the payments received by the
municipal corporation in calendar year 2010 pursuant to divisions
(A)(1) and (2) of section 5751.22 of the Revised Code to the
extent paid for municipal current expense property tax levies as
defined in division (A)(33)(35) of this section, excluding any
such payments received for current expense levy losses
attributable to a tax levied under section 5705.23 of the Revised
Code. If a fixed-rate levy that is a qualifying levy is not
imposed charged and payable in any year after tax year 2010,
"current expense TPP allocation" used to compute payments to be
made under division (C)(12) of section 5751.21 or division
(A)(1)(b) or (c) of section 5751.22 of the Revised Code in the tax
years following the last year the levy is imposed charged and
payable shall be reduced
by the amount of to the extent that the
payments are attributable to the fixed-rate levy loss of that levy
as would be computed under divisions (C)(10) and (11) of section
5751.21 or division (A)(1) of section 5751.22 of the Revised Code.
(35)(37) "TPP allocation" means the sum of payments received
by a local taxing unit in calendar year 2010 pursuant to divisions
(A)(1) and (2) of section 5751.22 of the Revised Code, excluding
any such payments received for fixed-rate levy losses attributable
to a tax levied under section 5705.23 of the Revised Code. If a
fixed-rate levy that is a qualifying levy is not imposed charged
and payable in any year after tax year 2010, "TPP allocation" used
to compute payments to be made under division (A)(1)(b) or (c) of
section 5751.22 of the Revised Code in the tax years following the
last year the levy is imposed charged and payable shall be reduced
by the amount of payment to the extent that the payments are
attributable to the fixed-rate levy loss of that levy as would be
computed under division (A)(1) of that section.
(36)(38) "Total TPP allocation" means, in the case of a
school district or joint vocational school district, the sum of
the amounts received in fiscal year 2011 pursuant to divisions
(C)(10) and (11) and (D) of section 5751.21 of the Revised Code.
In the case of a local taxing unit, "total TPP allocation" means
the sum of payments received by the unit in calendar year 2010
pursuant to divisions (A)(1), (2), and (3) of section 5751.22 of
the Revised Code. If a fixed-rate levy that is a qualifying levy
is not
imposed charged and payable in any year after tax year
2010, "total TPP allocation" used to compute payments to be made
under division (C)(12) of section 5751.21 or division (A)(1)(b) or
(c) of section 5751.22 of the Revised Code in the tax years
following the last year the levy is imposed
charged and payable
shall be reduced by the amount of to the extent that the payments
are attributable to the fixed-rate levy loss of that levy as would
be computed under divisions (C)(10) and (11) of section 5751.21 or
division (A)(1) of section 5751.22 of the Revised Code.
(37)(39) "Non-current expense TPP allocation" means the
difference of total TPP allocation minus the sum of current
expense TPP allocation and the portion of total TPP allocation
constituting reimbursement for debt levies, pursuant to division
(D) of section 5751.21 of the Revised Code in the case of a school
district or joint vocational school district and pursuant to
division (A)(3) of section 5751.22 of the Revised Code in the case
of a municipal corporation.
(38)(40) "TPP allocation for library purposes" means the sum
of payments received by a county, municipal corporation, school
district, or township public library in calendar year 2010
pursuant to section 5751.22 of the Revised Code for fixed-rate
levy losses attributable to a tax levied under section 5705.23 of
the Revised Code. If a fixed-rate levy authorized under section
5705.23 of the Revised Code that is a qualifying levy is not
charged and payable in any year after tax year 2010, "TPP
allocation for library purposes" used to compute payments to be
made under division (A)(1)(d) of section 5751.22 of the Revised
Code in the tax years following the last year the levy is charged
and payable shall be reduced to the extent that the payments are
attributable to the fixed-rate levy loss of that levy as would be
computed under division (A)(1) of section 5751.22 of the Revised
Code.
(41) "Threshold per cent" means, in the case of a school
district or joint vocational school district, two per cent for
fiscal year 2012 and four per cent for fiscal years 2013 and
thereafter. In the case of a local taxing unit or public library
that receives the proceeds of a tax levied under section 5705.23
of the Revised Code, "threshold per cent" means two per cent for
tax year 2011, four per cent for tax year 2012, and six per cent
for tax years 2013 and thereafter.
(B) The commercial activities tax receipts fund is hereby
created in the state treasury and shall consist of money arising
from the tax imposed under this chapter. Eighty-five
one-hundredths of one per cent of the money credited to that fund
shall be credited to the tax reform system implementation revenue
enhancement fund, which is hereby created in the state treasury,
and shall be used to defray the costs incurred by the department
of taxation in administering the tax imposed by this chapter and
in implementing tax reform measures. The remainder in the
commercial activities tax receipts fund shall be credited for each
fiscal year in the following percentages to the general revenue
fund, to the school district tangible property tax replacement
fund, which is hereby created in the state treasury for the
purpose of making the payments described in section 5751.21 of the
Revised Code, and to the local government tangible property tax
replacement fund, which is hereby created in the state treasury
for the purpose of making the payments described in section
5751.22 of the Revised Code, in the following percentages:
Fiscal year |
General Revenue Fund |
School District Tangible Property Tax Replacement Fund |
Local Government Tangible Property Tax Replacement Fund |
|
|
2006 |
67.7% |
22.6% |
9.7% |
|
|
2007 |
0% |
70.0% |
30.0% |
|
|
2008 |
0% |
70.0% |
30.0% |
|
|
2009 |
0% |
70.0% |
30.0% |
|
|
2010 |
0% |
70.0% |
30.0% |
|
|
2011 |
0% |
70.0% |
30.0% |
|
|
2012 |
25.0% |
52.5% |
22.5% |
|
|
2013 and thereafter |
50.0% |
35.0% |
15.0% |
|
|
(C) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its machinery and equipment,
inventory property, furniture and fixtures property, and telephone
property tax value losses, which are the applicable amounts
described in divisions (C)(1), (2), (3), and (4) of this section,
except as provided in division (C)(5) of this section:
(1) Machinery and equipment property tax value loss is the
taxable value of machinery and equipment property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, thirty-three and eight-tenths per
cent;
(b) For tax year 2007, sixty-one and three-tenths per cent;
(c) For tax year 2008, eighty-three per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
(2) Inventory property tax value loss is the taxable value of
inventory property as reported by taxpayers for tax year 2004
multiplied by:
(a) For tax year 2006, a fraction, the numerator of which is
five and three-fourths and the denominator of which is
twenty-three;
(b) For tax year 2007, a fraction, the numerator of which is
nine and one-half and the denominator of which is twenty-three;
(c) For tax year 2008, a fraction, the numerator of which is
thirteen and one-fourth and the denominator of which is
twenty-three;
(d) For tax year 2009 and thereafter a fraction, the
numerator of which is seventeen and the denominator of which is
twenty-three.
(3) Furniture and fixtures property tax value loss is the
taxable value of furniture and fixture property as reported by
taxpayers for tax year 2004 multiplied by:
(a) For tax year 2006, twenty-five per cent;
(b) For tax year 2007, fifty per cent;
(c) For tax year 2008, seventy-five per cent;
(d) For tax year 2009 and thereafter, one hundred per cent.
The taxable value of property reported by taxpayers used in
divisions (C)(1), (2), and (3) of this section shall be such
values as determined to be final by the tax commissioner as of
August 31, 2005. Such determinations shall be final except for any
correction of a clerical error that was made prior to August 31,
2005, by the tax commissioner.
(4) Telephone property tax value loss is the taxable value of
telephone property as taxpayers would have reported that property
for tax year 2004 if the assessment rate for all telephone
property for that year were twenty-five per cent, multiplied by:
(a) For tax year 2006, zero per cent;
(b) For tax year 2007, zero per cent;
(c) For tax year 2008, zero per cent;
(d) For tax year 2009, sixty per cent;
(e) For tax year 2010, eighty per cent;
(f) For tax year 2011 and thereafter, one hundred per cent.
(5) Division (C)(5) of this section applies to any school
district, joint vocational school district, or local taxing unit
in a county in which is located a facility currently or formerly
devoted to the enrichment or commercialization of uranium or
uranium products, and for which the total taxable value of
property listed on the general tax list of personal property for
any tax year from tax year 2001 to tax year 2004 was fifty per
cent or less of the taxable value of such property listed on the
general tax list of personal property for the next preceding tax
year.
In computing the fixed-rate levy losses under divisions
(D)(1), (2), and (3) of this section for any school district,
joint vocational school district, or local taxing unit to which
division (C)(5) of this section applies, the taxable value of such
property as listed on the general tax list of personal property
for tax year 2000 shall be substituted for the taxable value of
such property as reported by taxpayers for tax year 2004, in the
taxing district containing the uranium facility, if the taxable
value listed for tax year 2000 is greater than the taxable value
reported by taxpayers for tax year 2004. For the purpose of making
the computations under divisions (D)(1), (2), and (3) of this
section, the tax year 2000 valuation is to be allocated to
machinery and equipment, inventory, and furniture and fixtures
property in the same proportions as the tax year 2004 values. For
the purpose of the calculations in division (A) of section 5751.21
of the Revised Code, the tax year 2004 taxable values shall be
used.
To facilitate the calculations required under division (C) of
this section, the county auditor, upon request from the tax
commissioner, shall provide by August 1, 2005, the values of
machinery and equipment, inventory, and furniture and fixtures for
all single-county personal property taxpayers for tax year 2004.
(D) Not later than September 15, 2005, the tax commissioner
shall determine for each tax year from 2006 through 2009 for each
school district, joint vocational school district, and local
taxing unit its machinery and equipment, inventory, and furniture
and fixtures fixed-rate levy losses, and for each tax year from
2006 through 2011 its telephone property fixed-rate levy loss.
Except as provided in division (F) of this section, such losses
are the applicable amounts described in divisions (D)(1), (2),
(3), and (4) of this section:
(1) The machinery and equipment fixed-rate levy loss is the
machinery and equipment property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(2) The inventory fixed-rate loss is the inventory property
tax value loss multiplied by the sum of the tax rates of
fixed-rate qualifying levies.
(3) The furniture and fixtures fixed-rate levy loss is the
furniture and fixture property tax value loss multiplied by the
sum of the tax rates of fixed-rate qualifying levies.
(4) The telephone property fixed-rate levy loss is the
telephone property tax value loss multiplied by the sum of the tax
rates of fixed-rate qualifying levies.
(E) Not later than September 15, 2005, the tax commissioner
shall determine for each school district, joint vocational school
district, and local taxing unit its fixed-sum levy loss. The
fixed-sum levy loss is the amount obtained by subtracting the
amount described in division (E)(2) of this section from the
amount described in division (E)(1) of this section:
(1) The sum of the machinery and equipment property tax value
loss, the inventory property tax value loss, and the furniture and
fixtures property tax value loss, and, for 2008 through 2010, the
telephone property tax value loss of the district or unit
multiplied by the sum of the fixed-sum tax rates of qualifying
levies. For 2006 through 2010, this computation shall include all
qualifying levies remaining in effect for the current tax year and
any school district levies imposed charged and payable under
section 5705.194 or 5705.213 of the Revised Code that are
qualifying levies not remaining in effect for the current year.
For 2011 through 2017 in the case of school district levies
imposed charged and payable under section 5705.194 or 5705.213 of
the Revised Code and for all years after 2010 in the case of other
fixed-sum levies, this computation shall include only qualifying
levies remaining in effect for the current year. For purposes of
this computation, a qualifying school district levy imposed
charged and payable under section 5705.194 or 5705.213 of the
Revised Code remains in effect in a year after 2010 only if, for
that year, the board of education levies a school district levy
imposed charged and payable under section 5705.194, 5705.199,
5705.213, or 5705.219 of the Revised Code for an annual sum at
least equal to the annual sum levied by the board in tax year 2004
less the amount of the payment certified under this division for
2006.
(2) The total taxable value in tax year 2004 less the sum of
the machinery and equipment, inventory, furniture and fixtures,
and telephone property tax value losses in each school district,
joint vocational school district, and local taxing unit multiplied
by one-half of one mill per dollar.
(3) For the calculations in divisions (E)(1) and (2) of this
section, the tax value losses are those that would be calculated
for tax year 2009 under divisions (C)(1), (2), and (3) of this
section and for tax year 2011 under division (C)(4) of this
section.
(4) To facilitate the calculation under divisions (D) and (E)
of this section, not later than September 1, 2005, any school
district, joint vocational school district, or local taxing unit
that has a qualifying levy that was approved at an election
conducted during 2005 before September 1, 2005, shall certify to
the tax commissioner a copy of the county auditor's certificate of
estimated property tax millage for such levy as required under
division (B) of section 5705.03 of the Revised Code, which is the
rate that shall be used in the calculations under such divisions.
If the amount determined under division (E) of this section
for any school district, joint vocational school district, or
local taxing unit is greater than zero, that amount shall equal
the reimbursement to be paid pursuant to division (E) of section
5751.21 or division (A)(3) of section 5751.22 of the Revised Code,
and the one-half of one mill that is subtracted under division
(E)(2) of this section shall be apportioned among all contributing
fixed-sum levies in the proportion that each levy bears to the sum
of all fixed-sum levies within each school district, joint
vocational school district, or local taxing unit.
(F) If a school district levies a tax under section 5705.219
of the Revised Code, the fixed-rate levy loss for qualifying
levies, to the extent repealed under that section, shall equal the
sum of the following amounts in lieu of the amounts computed for
such levies under division (D) of this section:
(1) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the sum of the machinery and equipment,
inventory, and furniture and fixtures tax value losses for 2009 as
determined under that division;
(2) The sum of the rates of qualifying levies to the extent
so repealed multiplied by the telephone property tax value loss
for 2011 as determined under that division.
The fixed-rate levy losses for qualifying levies to the
extent not repealed under section 5705.219 of the Revised Code
shall be as determined under division (D) of this section. The
revised fixed-rate levy losses determined under this division and
division (D) of this section first apply in the year following the
first year the district levies the tax under section 5705.219 of
the Revised Code.
(G) Not later than October 1, 2005, the tax commissioner
shall certify to the department of education for every school
district and joint vocational school district the machinery and
equipment, inventory, furniture and fixtures, and telephone
property tax value losses determined under division (C) of this
section, the machinery and equipment, inventory, furniture and
fixtures, and telephone fixed-rate levy losses determined under
division (D) of this section, and the fixed-sum levy losses
calculated under division (E) of this section. The calculations
under divisions (D) and (E) of this section shall separately
display the levy loss for each levy eligible for reimbursement.
(H) Not later than October 1, 2005, the tax commissioner
shall certify the amount of the fixed-sum levy losses to the
county auditor of each county in which a school district, joint
vocational school district, or local taxing unit with a fixed-sum
levy loss reimbursement has territory.
(I) Not later than the twenty-eighth day of February each
year beginning in 2011 and ending in 2014, the tax commissioner
shall certify to the department of education for each school
district first levying a tax under section 5705.219 of the Revised
Code in the preceding year the revised fixed-rate levy losses
determined under divisions (D) and (F) of this section.
Sec. 5751.22. (A) Not later than January 1, 2006, the tax
commissioner shall compute the payments to be made to each local
taxing unit, and to each public library that receives the proceeds
of a tax levied under section 5705.23 of the Revised Code, for
each year according to divisions (A)(1), (2), (3), and (4) of this
section as this section existed on that date, and shall distribute
the payments in the manner prescribed by division (C) of this
section. The calculation of the fixed-sum levy loss shall cover a
time period sufficient to include all fixed-sum levies for which
the commissioner determined, pursuant to division (E) of section
5751.20 of the Revised Code, that a fixed-sum levy loss is to be
reimbursed.
(1) Except as provided in division (A)(3) of this section,
for fixed-rate levy losses determined under division (D) of
section 5751.20 of the Revised Code, payments shall be made in an
amount equal to the following:
(a) For tax years 2006 through 2010, one hundred per cent of
such losses;
(b) For the payment in tax year 2011 to be made on or before
the twentieth day of November, the sum of the amount in division
(A)(1)(b)(i) or (ii) and division (A)(1)(b)(iii) of this section:
(i) If the ratio of six-sevenths of the TPP allocation to
total resources is equal to or less than the threshold per cent,
zero;
(ii) If the ratio of six-sevenths of the TPP allocation to
total resources is greater than the threshold per cent, the
difference of six-sevenths of the TPP allocation minus the product
of total resources multiplied by the threshold per cent;
(iii) In the case of a municipal corporation, six-sevenths of
the product of the non-current expense TPP allocation multiplied
by seventy-five per cent.
(c) For tax years 2012 and thereafter, the sum of the amount
in division (A)(1)(c)(i) or (ii) and division (A)(1)(c)(iii) of
this section:
(i) If the ratio of TPP allocation to total resources is
equal to or less than the threshold per cent, zero;
(ii) If the ratio of TPP allocation to total resources is
greater than the threshold per cent, the TPP allocation minus the
product of total resources multiplied by the threshold per cent;
(iii) In the case of a municipal corporation, non-current
expense TPP allocation multiplied by fifty per cent for tax year
2012 and twenty-five per cent for tax years 2013 and thereafter;
(d) For tax years 2012 and thereafter, in the case of a
county, school district, municipal corporation, or township public
library, the amount in division (A)(1)(d)(i) or (ii) of this
section:
(i) If the ratio of TPP allocation for library purposes to
total library resources is equal to or less than the threshold per
cent, zero;
(ii) If the ratio of TPP allocation for library purposes to
total library resources is greater than the threshold per cent,
the TPP allocation for library purposes minus the product of total
library resources multiplied by the threshold per cent.
(2) For fixed-sum levy losses determined under division (E)
of section 5751.20 of the Revised Code, payments shall be made in
the amount of one hundred per cent of the fixed-sum levy loss for
payments required to be made in 2006 and thereafter through 2011,
except that no payments shall be made for qualifying levies that
have expired. For payments required to be made in 2012 and
thereafter, payments shall be made in the amount of fifty per cent
of the fixed-sum levy loss until the qualifying levy has expired.
(3) For taxes levied within the ten-mill limitation or
pursuant to a municipal charter for debt purposes in tax year
2005, payments shall be made based on the schedule in division
(A)(1) of this section for each of the calendar years 2006 through
2010. For each of the calendar years 2011 through 2017, the
percentages for calendar year 2010 shall be used for taxes levied
within the ten-mill limitation or pursuant to a municipal charter
for debt purposes in tax year 2010, as long as such levies
continue to be used for debt purposes. If the purpose of such a
qualifying levy is changed, that levy becomes subject to the
payment schedules in divisions (A)(1)(a) to (h) of this section.
No payments shall be made for such levies after calendar year
2017. For the purposes of this division, taxes levied pursuant to
a municipal charter refer to taxes levied pursuant to a provision
of a municipal charter that permits the tax to be levied without
prior voter approval.
(B) Beginning in 2007, by the thirty-first day of January of
each year, the tax commissioner shall review the calculation
originally made under division (A) of this section of the
fixed-sum levy losses determined under division (E) of section
5751.20 of the Revised Code. If the commissioner determines that a
fixed-sum levy that had been scheduled to be reimbursed in the
current year has expired, a revised calculation for that and all
subsequent years shall be made.
(C) Payments to local taxing units and public libraries
required to be made under division (A) of this section shall be
paid from the local government tangible property tax replacement
fund to the county undivided income tax fund in the proper county
treasury. From May 2006 through November 2010, one-seventh of the
amount determined under that division shall be paid by the last
day of May each year, and three-sevenths shall be paid by the last
day of August and October each year. From May 2011 through
November 2013, one-seventh of the amount determined under that
division shall be paid on or before the last day of May each year,
and six-sevenths shall be paid on or before the twentieth
thirtieth day of November each year, except that in November 2011,
the payment shall equal one hundred per cent of the amount
calculated for that payment. Beginning in May 2014, one-half of
the amount determined under that division shall be paid on or
before the last day of May each year, and one-half shall be paid
on or before the twentieth thirtieth day of November each year.
Within forty thirty days after receipt of such payments, the
county treasurer shall distribute amounts determined under
division (A) of this section to the proper local taxing unit
or
public library as if they had been levied and collected as taxes,
and the local taxing unit or public library shall apportion the
amounts so received among its funds in the same proportions as if
those amounts had been levied and collected as taxes.
(D) For each of the fiscal years 2006 through 2018, if the
total amount in the local government tangible property tax
replacement fund is insufficient to make all payments under
division (C) of this section at the times the payments are to be
made, the director of budget and management shall transfer from
the general revenue fund to the local government tangible property
tax replacement fund the difference between the total amount to be
paid and the amount in the local government tangible property tax
replacement fund. For each fiscal year after 2018, at the time
payments under division (A)(2) of this section are to be made, the
director of budget and management shall transfer from the general
revenue fund to the local government property tax replacement fund
the amount necessary to make such payments.
(E) On the fifteenth day of June of each year from 2006
through 2018, the director of budget and management may transfer
any balance in the local government tangible property tax
replacement fund to the general revenue fund.
(F) If all or a part of the territories of two or more local
taxing units are merged, or unincorporated territory of a township
is annexed by a municipal corporation, the tax commissioner shall
adjust the payments made under this section to each of the local
taxing units in proportion to the square mileage of the merged or
annexed territory as a percentage of the total square mileage of
the jurisdiction from which the territory originated, or as
otherwise provided by a written agreement between the legislative
authorities of the local taxing units certified to the
commissioner not later than the first day of June of the calendar
year in which the payment is to be made.
Sec. 5753.03. (A) For the purpose of receiving and
distributing, and accounting for, revenue received from the tax
levied by section 5753.02 of the Revised Code, the following funds
are created in the state treasury:
(1) The casino tax revenue fund;
(2) The gross casino revenue county fund;
(3) The gross casino revenue county student fund;
(4) The gross casino revenue host city fund;
(5) The Ohio state racing commission fund;
(6) The Ohio law enforcement training fund;
(7) The problem casino gambling and addictions fund;
(8) The casino control commission fund;
(9) The casino tax administration fund;
(10) The peace officer training academy fund;
(11) The criminal justice services casino tax revenue fund.
(B) All moneys collected from the tax levied under this
chapter shall be deposited into the casino tax revenue fund.
(C) From the casino tax revenue fund the director of budget
and management shall transfer as needed to the tax refund fund
amounts equal to the refunds certified by the tax commissioner
under section 5753.06 of the Revised Code.
(D) After making any transfers required by division (C) of
this section, but not later than the fifteenth day of the month
following the end of each calendar quarter, the director of budget
and management shall transfer amounts to each fund as follows:
(1) Fifty-one per cent to the gross casino revenue county
fund to make payments as required by Section 6(C)(3)(a) of Article
XV, Ohio Constitution;
(2) Thirty-four per cent to the gross casino revenue county
student fund to make payments as required by Section 6(C)(3)(b) of
Article XV, Ohio Constitution;
(3) Five per cent to the gross casino revenue host city fund
for the benefit of the cities in which casino facilities are
located;
(4) Three per cent to the Ohio state racing commission fund
to support the efforts and activities of the Ohio state racing
commission to promote horse racing in this state at which the
pari-mutuel system of wagering is conducted;
(5) Two per cent to the Ohio law enforcement training fund to
support law enforcement functions in the state;
(6) Two per cent to the problem casino gambling and
addictions fund to support efforts of the department of alcohol
and drug addiction services to alleviate problem gambling and
substance abuse and related research in the state under section
3793.032 of the Revised Code;
(7) Three per cent to the casino control commission fund to
support the operations of the Ohio casino control commission and
to defray the cost of administering the tax levied under section
5753.02 of the Revised Code.
Payments under divisions (D)(1), (2), and (3) of this section
shall be made by the end of the month following the end of the
quarterly period. The tax commissioner shall make the data
available to the director of budget and management for this
purpose.
Of the money credited to the Ohio law enforcement training
fund, the director of budget and management shall distribute
eighty-five per cent of the money to the police officer training
academy fund for the purpose of supporting the law enforcement
training efforts of the Ohio peace officer training academy and
fifteen per cent of the money to the criminal justice services
casino tax revenue fund for the purpose of supporting the law
enforcement training efforts of the division of criminal justice
services.
(E) The director of budget and management shall transfer one
per cent of the money credited to the casino control commission
fund to the casino tax administration fund. The tax commissioner
shall use the casino tax administration fund to defray the costs
incurred in administering the tax levied by this chapter.
Section 2. That existing sections 131.02, 1701.86, 1702.47,
3769.28, 4301.42, 4303.33, 4928.23, 4928.2314, 5703.261, 5703.37,
5703.47, 5727.84, 5727.86, 5731.39, 5733.26, 5735.02, 5735.03,
5735.35, 5739.01, 5739.02, 5739.021, 5739.023, 5739.026, 5739.04,
5739.17, 5741.08, 5743.20, 5743.61, 5743.66, 5747.082, 5747.11,
5751.01, 5751.011, 5751.012, 5751.03, 5751.04, 5751.05, 5751.051,
5751.08, 5751.12, 5751.20, 5751.22, and 5753.03 and section
5751.032 of the Revised Code are hereby repealed.
Section 757.10. Notwithstanding sections 5713.01 and 5715.24
of the Revised Code, for the purpose of equalizing and
regionalizing real property assessment cycles, beginning in tax
year 2014 and continuing for not more than five years, the Tax
Commissioner may extend the revaluation of real property required
in any county by not more than one year.
Section 757.20. The Tax Commissioner is not required to issue
the certifications that are or were otherwise required to be made
on or before May 15, 2012, or June 1, 2012, under sections
3317.026, 3317.027, 3317.028, and divisions (A)(4), (6), and (7)
of section 3317.021 of the Revised Code. This section is intended
to be remedial in nature and to be construed liberally to
accomplish the purpose of avoiding unnecessary certifications.
Section 757.30. Section 5751.01 of the Revised Code is
presented in this act as a composite of the section as amended by
both Am. Sub. H.B. 153 and Sub. H.B. 277 of the 129th 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.
Section 806.10. The items of law contained in this act, and
their applications, are severable. If any item of law contained in
this act, or if any application of any item of law contained in
this act, is held invalid, the invalidity does not affect other
items of law contained in this act and their applications that can
be given effect without the invalid item of law or application.
Section 812.10. Sections subject to referendum: general
effective date. Except as otherwise provided in this act, the
amendment, enactment, or repeal by this act of a section is
subject to the referendum under Ohio Constitution, Article II,
Section 1c and therefore takes effect on the ninety-first day
after this act is filed with the Secretary of State.
Section 812.20. Sections exempt from referendum: general
effective date. The amendment, enactment, or repeal by this act of
the following sections is exempt from the referendum under Ohio
Constitution, Article II, Section 1d and section 1.471 of the
Revised Code and therefore takes effect immediately when this act
becomes law:
Sections 4928.23, 4928.2314, 5727.84, 5727.86, 5751.20,
5751.22, and 5753.03 of the Revised Code.
Section 757.20 of this act.
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